Approved Code No. 175 Registry No. 1215-1-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

MEDIUM AND LOW PRICED JEWELRY 

MANUFACTURING INDUSTRY 

AS APPROVED ON DECEMBER 23, 1933 

BY 

PRESIDENT ROOSEVELT 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON i 1933 

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

This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., and by district offices of the Bureau ot 

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCB 

Atlanta, Ga.: 504 Po,;t 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. 

Cle\·eland, Ohio: Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, Mich.: 2213 Ii'irst National Bank Building. 

Houston, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Ja cksouville, Fla.: Chamber of Commerce Building. 

Kansas City, l\Io.: 1028 Baltimore Avenue. 

Lo Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

1\1pmphis, Tenn. : 229 Federal Building. 

l\linneapolis, l\Iinn. : 213 Federal Building. 

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

New York, N.Y.: 734 Customhouse. 

Norfolk. Va.: 40G East Plume Street. 

Philadelphia, Pa.: 933 Commercial Trust Building. 

Pittsburgh, Pa. : Chamber of Commerce Building. 

Portland, Oreg. : 215 New Post Office Building, 

St. Louis, l\10.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Building. 
Approved Code No. 175 

CODE OF FAIR COMPETITION 

FOR THE 

MEDIUM AND LOW PRICED JEWELRY 

MANUFACTURING INDUSTRY 

As Approved on December 23, 1933 

BY 

PRESIDENT ROOSEVELT 

Executive Order 

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 my approval of a Code of 

Fair Competition for the Medium and Low Priced Jewelry Manufacturing 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. 

NG\V, 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 is hereby approved, subject to the following 

condition: 

28293°-296-41-33 (355) 
356 

That the application of the provision of sub-section (b), Section 1, 

Article III, which provides for the payment of time and one third 

for all hours worked by any employee in excess of forty (40) per 

week, shall be stayed until March 1, 1934, at which time such provision shall become effective and have the same force and effect as any 

other provision of the Code. 

Approval recommended: 

HUGH S. JOHNSON, 

Adminutrator. 

THE WHITE HousE, 

Decernber 23, 1933. 

FRANKLIN D. ROOSEVELT. 
DECEMBER 13, 1933. 

The PRESIDENT, 

The White House. 

Srn: A Public Hearing on the Code of Fair Competition for the 

Medium and Low Priced Jewelry Manufacturing Industry, submitted by the Council of Jewelry and Allied Industries, was conducted in Washington on the 10th and 11th of October 1933, in 

accordance with the provisions of the National Industrial Recovery 

Act. This Association claims to represent sixty percent ( 60% ) of 

the Industry. 

Upon petition of the Industry, and advice of the Labor Advisory 

Board, a provision has been included in the Executive Order staying the application of subsection (b) of Section 1 of Article III, 

which provides for the payment of time and one third for all hours 

worked by any employee in excess of 40 hours per week, for the 

period between the effective date of this Code and March 1, 1934, in 

order. to allow them to take care of goods contracted for for this 

season. 

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

per week for factory, mechanical workers, or artisans, with a twenty 

percent (20%) tolerance in seasonal periods. Toolmakers, hub and 

die cutters may be employed a maximum of forty-eight (48) hours 

per week, but this type of employee shall not exceed five percent 

( 5%) of the total number of employees. Provision for the payment of overtime is made. All other employees, exclusive of shipping and packing crews, shall not be employed for more than forty 

(40) hours per week. Shipping and packing crews may be worked 

:forty-four (44) hours per week, but must be paid time and one third 

for all hours in excess of forty ( 40) per week. 

The minimum wage is thirty-two and a half cents (321⁄2¢) per 

hour. Provision is made for learners being paid eighty percent 

( 80%) of the minimum wage, but this class shall not exceed ten 

percent (10%) of the total number of regular employees. Aged 

employees to the extent of two percent (2 % ) may be employed and 

shall be paid ten dollars ($10.00) per week. 

The Medium and Low Priced Jewelry group includes the manufac~urers o~ jewelry_ of ~ess than ten l(arat ( ~O Kt.) fineness and a 

variety of 1nexpens1ve Jewelry and other 3:.rticles, such as cigarette 

cases, vanity cases, bags, and novelties made of base metals. The 

principal outlets for the products of this Industry are the 5-and-10-

cent stores, variety stores and department stores. 

The number of concerns engaged in this Industry declined :from 

1,100 in 1929 to 650 for 1933 or about 41 % . Of the 650 concerns, 

80% are located in Massachusetts and Rhode Island. 

Employment in 1932 was approximately 60% of the 1929 level 

Data for September 1933 indicates more persons employed than 

the average for any year since 1929. This increase is due both to 

(357) 
358 

the recovery program and to the stimulation of the seasonal peak 

period. Reports from 62 representative firms indicate a 36.8 percent 

increase in employment over early 1933 levels. . 

In contrast to the rate of decline in employment, the rate of decline in pay rolls was greater from 1930 to 1931 than from 1929 

to 1930. This comparison indicates that from 1929 through 1931 

wages were being reduced more rapidly than employment. From 

1931 to 1932 the wage reduction approximated the decline in employment. The 62 representative firms, which reported the 36.8 percent increase in employment, estimate a twenty-five percent (25%) 

increase in pay rolls for the same periodJ that is in the latter part 

of 1933 over the early part. It is evident trom figures submitted that 

an increasing share of the value of product was allotted to labor 

during the years of depressed business, so that reduction in wage 

rates were necessary. 

FINDINGS 

The Administrator finds that: 

(a) The Code, as recommended, complies in all respects 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 Council of Jewelry and Allied Industries, the applicant 

group herein, imposes no inequitable restrictions on admission to 

membership and is truly representative of the Medium and Low 

Priced Jewelry :Manufacturing Industry. 

( c) The Code as recommended is not designed to promote monopolies or to eliminate or oppress small enterprises and will not 

operate to discriminate against them, and will tend to effectuate the 

policy of Title I of the National Industrial Recovery Act. 

This Industry has cooperated in a most satisfactory manner with 

the Administration in the preparation of this Code. From 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 its approval as herewith submitted is 

recommended. 

Respectfully, 

HUGH s. JOHNSON' 

Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

MEDIUM AND LOW PRICED JEWELRY MANUFACTURING 

INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are submitted as a Code or 

Fair Competition for the Medium and Low Priced Jewelry Manufacturing Industry, and upon approval by the President shall be the 

standard of fair competition for such industry and shall be binding 

upon every member thereof. 

ARTICLE II-DEFINITIONS 

1. The term "Jewelry" as used herein, means jewelry commonly 

or commercially so known and articles of adornment, designed to 

be worn on apparel or carried or worn on or about the person. 

2. The term " Medium and Low Priced Jewelry Manufacturing 

Industry", as used herein, means the manufacture and sale or distribution by the manufacturer of jewelry made from base meals, 

rolled plated precious metals, solid silver, plastic, and casein materials, and of gold of a fineness less than ten karat ( 10 Kt.), and 

subject to such limitation and description includes-

( a) The manufacture of the :following products : 

(1) Insignia jewelry and medals for schools, colleges, fraternities, and other educational institutions or divisions thereof. 

(2 Fraternal and emblematic jewelry. 

(3 Buckles and ornaments :for millinery, dresses, bags, and shoes. 

4 Watch bracelets and attachments. 

5 Religious articles of a jewelry nature. 

6 Collar buttons. 

7) Men's jewelry. 

8) Mesh bags and mesh products. 

(9) Cigarette cases, vanity cases, and compacts (except those for 

nationally advertised cosmetic brands). 

(10) Medium and low-priced jewelry of all types not specifically 

mentioned in the :foregoing. 

(b) Manufacturers, wholesale dealers, and/or assemblers of: 

(1) Chatons, marcasites, imitation pearls, imitation pearl beads, 

imitation precious and semiprecious stones. 

(2) Jewelry, beads, bead necklaces, and bead jewelry. 

( c) Processors ( commonly known as job shops) serving the manufacturers of Medium and Low-Priced Jewelry, .including bobbers, 

buffers, polishers, platers, engine turners, engravers, stonesetters, tool-

(359) 
360 

makers, hub and die cutters, lacquerers, enamelers, refiners of scrap, 

and all other employers, the major part of whose work is for this 

Industry. . 3. The ~1edium and Low Priced Jewelry Manufacturing Industry 

includes the following subdivisions: (a) Flat stock, sheet, wire, and 

tubing; (b) Raw chain; and ( c) Metal findings. 

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

in the industry in any capacity receiving compensation for his services, irrespective of the nature or method of payment of such compensation. 

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

any such employee is compensated or employed. 

6. The term "factory or mechanical worker or artisan" as used 

herein includes all workers and assemblers engaged in the process of 

manufacture. 

7. The term 'shipping and packing crew" as used herein includes 

those employees who perform no productive or mechanical operations 

of any kind; who wrap, package, card, or box the products of this 

industry and apply the same to customers' orders and ship the same. 

8. The term ' wholesale dealer " as used herein means any person 

who manufactures and sells, imports, assembles, or contracts for the 

manufacture of medium and low priced costume jewelry, and such 

other products of this industry as come within the definition of this 

Code, and sells uch products to the wholesale and/or retail dealer. 

AilTICLE III-HOURS 

1. No employer shall employ any factory or mechanical worker 

or artisan in excess of forty ( 40) hours in any one week, except in 

seasonal periods, a twenty percent (20%) tolerance shall be allowed 

on the basic working schedule. 

(a) Toolmakers, hub and die cutters may be employed a maximum 

of forty-eight ( ±S) hours per week, but they shall not exceed five 

percent (5 % ) of the total number of employees employed in any one 

calendar month; and provided, that any employer may employ at 

least one toolmaker or hub and die cutter on th.is basis. In the event 

that the factory of any per on is operated in more than one shift, no 

employee of this classification shall work more than forty ( 40) hours 

in any one week. 

(b) Time and one third shall be paid for all hours worked by any 

employee in excess of forty ( 40) hours per week. 

2. Employees ( other than factory, mechanical workers, or artisans) may not be employed in any manner for more than forty (40) 

hours in any one week; provided, however, that in the case of shipping and packing crews, a tolerance of ten percent ( 10%) is permitted; provided further, that such shipping and packing crews 

shall be paid time and one third for all hours worked in excess of 

forty ( 40) in any one week. 

3. In the event of unusual emergencies requiring an extension of 

hours, members of the indu try through the Code Authority may 

request permission from the Administrator for an extension of hours 

beyond those provided for in Sections 1 and 2 of this Article, with 

such provisions for overtime as the Administrator may" prescribe. 
361 

4. Employers, including individuals, partners, officers, or stockholders of corporations, or individual manufacturers, whenever 

engaged in productive work, shall conform to the working hours 

above prescribed. 

5. The above provisions for maximum hours do not apply to employees engaged in a managerial, executive, or supervisory capacity 

who receive thirty-five dollars ($35.00) per week or more, nor to 

outside salesmen, when not engaged in productive labor. 

6. The maximum hours fixed in Section 1 shall not apply to any 

employee on emergency repair work involving break-downs or protection of life or property, but in any such special case at least one 

and one third times the normal rate of pay shall be paid for all hours 

worked in excess of the maximum of forty ( 40) hours herein 

provided. 

7. Watchmen may be employed in pairs and shall work thirty-six 

(36) and forty-eight (48) hours on alternate weeks, or not more 

than forty-two (42) hours per week averaged over any period of two 

weeks. 

8. No employee shall be permitted to work, for a total numb0.r of 

hours in excess of the number of hours herein prescribed, whether he 

be employed by one or more employers. 

ARTICLE IV-WAGES 

1. No employee shall be paid at less than the rate of thirty-two 

and one half cents (321⁄2¢) per hour. 

2. Learners, who are persons having had no previous experience or 

employment in this industry, shall be paid not less than eighty percent (80%) of the minimum hourly rate of thirty-two and one half 

cents (321⁄2¢) per hour; such period of learning not to exceed six (6) 

weeks; and the number of learners employed by any one employer in 

any one month shall not exceed ten percent (10%) of the total Eumber of employees of such employer; provided that every employer 

shall be entitled to employ at least one learner. 

(b) Where, because of infirmities due to age or other causes, it 

is not possible for an employee working on a piecework basis to 

earn the hourly rates herein provided, the Code Authority may, 

upon petition of an employer, and with the approval of the Administrator, permit such employee to continue in employment, provided, 

that the wages paid to such employee shall be not less than ten 

dollars ($10.00) per week; and provided further, that they shall be 

paid at the same rate per piece as other workers; such employees 

shall not in any case exceed two percent (2%) of the total number 

of employees regularly employed. This provision shall apply only 

to those in the employ of the member of the industry, so desiring 

their retention, who were so employed prior to the passage of the 

National Industrial Recovery Act. 

2. This Article establishes a minimum rate of pay, regardless of 

whether an employee is compensated on a time-rate, piecework, or 

other basis. 

3. It is the policy of the members of this industry to refrain from 

reducing the compensation for employment which compensation was 

28293°-296--41-33-2 
362 

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 increa e the pay of all employees in excess of the minimum wage, 

as herein set forth, by an equitable adjustment of all pay schedul ':-;. 

4. Female employees performing substantially the same work as 

male employees shall receive the .same rates of pay. 

ARTICLE V-GENER.AL LABOR PROVISIONS 

1. No person under sixteen (16) years of age shall 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 a list of such 

occupations. In any State an employer shall be deemed to have 

complied with this provi,sion 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. 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 o.f employers of 

labor or their agents, in the de,signation of such representatives or 

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

of collective bargaining or other mutual aid or protection. 

3. 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 

4. Employers shall comply with the maximum hours of labor, 

minimum rates of pay, and .other conditions of employment, approved 

or prescribed by the President. 

5. ,vithin each State this Code shall not supersede any laws of 

such State imposing more stringent requirements on employers 

regulating the age of employees, wages, hours of work, or general 

working conditions than under this Code . . 6. Employers shall not reclassify employees or duties of occupat10ns performed by employees so as to defeat the purposes of the Act. 

7. Each employer shall post and keep posted in conspicuous places 

copies of the wage and hour provisions of the Code. 

ARTICLE VI-HOME w ORK 

1. Employers in this industry shall not directly or indirectly permit work of any kind to be done in the home or homes. 

ARTICLE VII-ADMINISTRATION 

To further effectuate the policies 0£ the Act, a Code Authority is 

hereby established to cooperate with the Administrator in the 

administration of this Code. 

1. Organization and constitution of Code Authority. 

(a) The Code Authority shall consist of the Council of Jewelry 

and Allied Industries and one member of the Precious Jewelry 

Producing Industry. 
363 

(b) In addition to membership as above provided there may be 

not more than three (3) members, without vote and without compensation from the Industry, to be appointed by the Administrator, to 

serve for such time as he may designate. 

( c) Each trade or industrial association directly or indirectly 

participating in the selection or activities of the Code Authority 

shall submit to the Administrator true copies of its articles of association, bylaws, regulations, and any amendments when made thereto, 

together with such other information as to membership, organization, 

and activities, as the Administrator may deem necessary to effectuate 

the purposes of the Act. 

( d) 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, 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 take such action as 

may be necessary under the circumstances. 

2. The Code Authority shall have the following duties and powers 

to the extent permitted by the Act, subject to the right of the Administrator on review to disapprove any action taken by the Code 

Authority. 

(a) Such agency may from time to time present to the Administrator for his approval recommendations, based on conditions in the 

industry as they may develop, which tend to effectuate the policy of 

the National Industrial Recovery Act, and it shall be the duty of the 

Code Authority, when experience under the code may require, to 

make such specific recommendations with reference to statistical 

reports; keeping of uniform accounts; as to methods and conditions 

of trading ; regulations for disposal of distress merchandise; and 

such further recommendations for dealing with any other inequalities that may arise to endanger the stability of the industry and/ or 

production or employment, and as may appear necessary or expedient to effectuate the purposes of Title I of the National Industrial 

Recovery Act. 

3. The Code Authority shall cooperate with the Administrator in 

making investigations as to the functioning and observance or nonobservance of any of the provisions of this code, at its own instance 

or on complaint by any person affected, and to report the same to 

the Administrator. 

4. To obtain from. members of the industry such information and 

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

provide for submission by members of such information and reports 

as the Administrator may deem necessary for the purposes recited in 

Section 3 (a) of the Act, which information and reports shall be 

submitted by members to such administrative and/or government 

agencies as the Administrator may designate; provided that nothing 

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

obligations to furnish reports to any government agency. No individual reports shall be disclosed to any other member of the industry or any other party except to such governmental agencies as 

may be directed by the Administrator. 

5. No inequitable restrictions on admission to membership in the 

Council of Jewelry and Allied Industries, or any other trade asso-
864 

ciation or organized group, participating in the activitie ot the 

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

shall be eligible for membership in any such tracl association ?r 

organized group upon compliance with the provisions of the Lylaw8 

relating to membership, provided that any per on applying for such 

membership shall, in addition to the payment of such dues as are 

imposed and paid by all other members, accept a rea ~onable and 

equitable share of the cost of code development and administration. 

Such members of the industry who do not choose to become members of any trade association or organized group may participate 

in the activities of the Code Authority a. herein provided by paying to the Code Authority such proportionate part of the cost of 

code development and administration as the Code Authority, subject 

to the Administrator's approval, shall prescribe as fair and equitable. 

ARTICLE VIII-TRADE PRACTICES 

The following practices constitute unfair methods of competition 

for members of the industry and are prohibited: 

(a) To give, permit to be given, or directly offer to giYe, anything 

of value for the purpose of influencing or rewarding the action of any 

employee, agent, or representative of another in relation to the bu iness 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 such articles are actually used 

for commercial bribery as hereinbefore defined. 

(b) &curing confidential information, other than information 

pertaining to a violation of any provision of this Code, concerning 

the business of a competitor by a false or misleading statement or 

representation, by a false impersonation of one in authority, by 

bribery, or by any other unfair method. 

( c) To use or to substitute any material differing in quality, design, weight, or construction from that specified by the purchaser 

or representations made by the manufacturer prior tq securing the 

order without the consent of the purchaser to such substitutions. 

( d) The defamation of competitors by falsely imputing to them 

dishonorable conduct, inability to perform contracts, questionable 

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

disparagement of the grade or quality of their goods. 

( e) Maliciously inducing or attemptihg 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. 

(f) To aid or abet any person, firm1 association, or corporation 

in any unfair practice established in th1s Code. 

(g) The secret payment or allowance of rebates, refunds, commissions, credits, or unearned discounts, whether in the form of money 

or otherwise; or the extension7 secret or otherwise, to certain purchasers of special services or privileges not extended to all purchasers 

of the same class on like terms and conditions. 
365 

' 

1. For an employer to contribute all or part of the cost of 

customers' advertising, unless the employer's name, trade name or · trademark, clearly and distinctly appears in such advertising at 

some conspicuous place. 

(h) To grant quantity price's or quantity discounts for orders 

less in quantity than those for which the said prices or discounts are 

specified. 

1. To delay shipments of orders for which quantity prices or 

quantity discounts are granted beyond the time necessary to make 

delivery except in cases where a single future shipment of an entire 

order is agreed upon. 

(i) To withhold from or to insert in any invoice, statements which 

make the invoice a false record, wholly or in part, of the transaction 

reported on the face thereof. 

(j) To make repairs or to refinish any products of the industry 

without a fair charge therefor, unless defective in material or manufacture. 

(k) To stamp, brand, mark, or invoice with any word, symbol, 

mark, or quality mark any article of merchandise in violation of 

Federal or State Stamping laws ( or any commercial standards covering such articles issued by the United Stutes Department of Co1nmerce) governing the stamping and marking of gold, gold filled, 

rolled gold plate, gold plate, gold electro-plate, and other goldcovered articles, or articles of other precious metals. 

(1) To grant trade discounts in any form except as provided in 

this Code. 

( m) To deliver ( except to buyers and district offices of chain 

stores with a retail selling limit of $1.00 or less and except ·samples 

of findings for catalogue use, which shall remain the property of the 

producer, and except fraternal emblem pins and buttons) sample 

lines of complete or partially complete articles to distributors, unless 

charged for at the regular prices and on regular terms of sale and 

discount. 

(n) To imitate or simulate the mark or brand of a member of the 

industry, without permission of the owner. ( o) To imitate or simulate any original design without the per-- -

mission of the originator. " Design " is defined as follows: 

A design is a pattern applied to, or a shape or form of a manu--

factured product which is not of itself a work of art, and shall in--

elude dies, molds, or devices by which such a pattern, shape, ori 

form may be produced, original in its applicat10n to or embodi-. 

ment in such manufactured product by reason of an artistic or · 

intellectual effort, and which produces an artistic or ornamental 1 

effect or decoration, but shall not include patterns or shapes or 

forms which have merely a functional or mechanical purpose. Regulations for the administration of the above provisions shall be set 

up in accordance with Article VII of this Code." 

(p) No persons governed by this Code shall either directly or 

indirectly loan, consign, place on memo, or otherwise deliver any 

merchandise into the control or custody of any person for the pur--

pose of placing same in any distributor's stock without transferring 

title to the same. 
366 

(q) Bills shall not be dated more than five (5) days after actual 

shipment of merchandise. 

( r) A note settlement or trade acceptance even if effected on 

or prior to the discount date shall not be considered as a cash 

payment. 

( s) No merchandise, except samples of findings, shall be delivered as samples, except upon condition that same shall be returned or charg~d within fifteen (15) days following receipt. This 

provision shall not apply to merchandise delivered to catalogue 

houses or to buyers and district offices of chain stores having a 

retail selling limit of $1.00 or less; provided, however, that all such 

merchandise shall be returned or charged within sixty ( 60) days 

following delivery. 

( t) No article of jewelry or findings, finished or unfinished, when 

filled in accordance with customers' orders and sold by any person 

shall be accepted for credit, exchanged, or in any other way returned 

by a purchaser unless such article is defective in material or manufacture, and then within five ( 5) days of receipt of goods, provided 

this shall not apply to settlements made with any insolvent or 

embarrassed debtor. 

( u) Synthetic, reconstructed, doublet, or imitation stones, cultured 

and imitation pearls, sold either loose or mounted, shall be designated 

as such on invoices, tags, or other descriptive medium. 

(v) Nothing in this Code shall limit the effect of any adjudication 

by the Courts or holding by the Federal Trade Commission on complaint, finding, and order} that any practice or method is unfair, 

providing that such adjudication or holding is not inconsistent with 

any provision of the Act or this Code. 

ARTICLE IX-SALES PROVISIONS 

1. No member of the Industry shall sell, exchange, or off er for 

sale any product of this Industry at a price below his own individual 

cost as determined by an adequate cost-finding system, capable of 

uniform application to the Industry and approved by the Administrator, provided, however, that any member of the Industry may 

meet competition in any specific instance by selling his product at 

a price not less than the lowest price o:f a comparable article on file 

with the Code Authority and provided further that: 

(a) "Discontinued" merchandise, which is not deliberately manufactured or acquired in such a manner as to frustrate the spirit and 

intent of this section, may be sold at less than cost i provided, that all 

such sales shall be reported to the Code Authority not later than 

thirty (30) days thereafter. 

ARTICLE X-DISCOUNTS 

1. Effective as of J anuar:y 1, 1934, the maximum cash discount 

shall be three percent (3%) for payment on or before the tenth 

(10th) day of the month following the date of invoice. 

2. The maximum credit period shall not exceed ninety (90) days. 

3. A tolerance of thirty (30) days rp.ay be allowed to wholesalers. 
367 

ARTICLE XI-PRICE LISTS 

1. Each member of the industry shall, on request of the Code Authority, ten days prior to the effective date of his price list, file his net 

current price lists and/ or price lists with discount sheets, as the case 

may be, with the Code Authority. 

2. Revised price lists, except in case of increases of each and 

every item, with discounts thereon, shall be filed witb .-,he Code Authority ten (10) days prior to the effective date. 

ARTICLE XII-CHANGES AND ADDITIONS 

1. In order to enable the industry to conduct its operations subject 

to the provisions of this Code, to establish their trade within the 

industry and with those dealing with the industry, and otherwise to 

effectuate the purposes of Title I of the National Industrial Recovery 

Act, supplementary provisions or amendments of the Code, or additional Codes, may be submitted from time to time for the ·approval 

of the President by the Code Authority, or by any of the divisional 

groups, through the Code Authority. Such supplementary provisions or amendments, when approved, shall have the same force and 

effect as the major code upon the group or groups from which they 

originate. 

ARTICLE XIII-MooIFIC.ATION 

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 Title I of the National 

Industrial Recovery Act, from time to time to cancel or modify any 

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

said Act and specifically, but without limitation, 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. 

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

modified or amended on the basis of experience or changes in circumstances, such modifications or amendments to be based upon application to the Administrator and such notice and hearing as he 

shall specify, and to become effective upon approval of the President, 

unless otherwise. provided. · 

ARTICLE XIV-MONOPOLIES, ETC. 

1. No provision of this Code shall be so applied as to permit 

monopolies or monopolistic practices, or to eliminate, oppress, or 

discriminate ~gainst small enterprises. 

ARTICLE XV-PRICE INCREASES 

1. "\Vhereas the policy of the Act to increase real purchasing 

power will be made impossible of consummation if prices of goods 

and services increase as rapidly as wages, it is recognized that 

price increases should be delayed and that, when made, the same 

should, so far as reasonably possible, be limited to actual increases 

in the seller's costs. 
368 

ARTICLE XVI- EFFECTIVE DATE 

1. This Code, together with the schedules attached hereto and made 

a part hereof, shall become effective on the day following the date 

of its approval by the President. 

ARTICLE XVII-SuPPLEl\IENTARY PRonsroNs 

1. The following divisions (A, B, C, D, E, F, G, H, and I, inclusive) are supplementary to, and constitute part of, the Code of Fair 

Competition for the l\ledium and Low Priced Jewelry :Manufacturing 

Industry. Such schedules apply only in those particular divisions 

of the Jewelry Industry indicated by the specific headings, and 

where such provisions conflict with the provisions of the basic code 

the provisions of the schedule, as to the particular division covered 

thereby, shall control. 

Approved Code No. 175. 

Registry No. 1215-1-01. 
SCHEDULE A 

DIVISION FOR THE MANUFACTURERS AND DISTRIBl1JTORS OF JEWELRY FOR SCHOOLS, 

COLLEGES, FRATERNITIES, AND OTHER EDUCATIONAL INSTITUTIONS 

1. CONTRACTS 

(a) In order to meet the increased cost of gold following the Executive 

Order of the President of August 28, 1S33, it is recognized that prices in contracts for purchase of gold products, which were made prior to said Executive 

Order and are in full force and effect between members of this Division and 

their customers, should be increased to such an extent as is necessary to allow 

for the actual increased cost of gold in such products. 

(b) No member of this Division shall induce or attempt to induce the breach 

of a bona fide existing contract between a competitor and the customer of such 

competitor during the term covered by such contract, or interfere with or 

obstruct the performance of any duty or service provided by the terms thereof. 

(c) Where a fraternity controls the manufacture and distribution of its 

insignia under contract, it is an unfair trade practice for unautl).orized persons 

to manufacture, solicit, or accept orders for such insignia. 

2. DISCOUNTS 

(a) Discounts on all orders sold direct from any manufacturer of this Division to retail stores, where no salesman works on such order, shall be uniform 

as to purchasers of the same class, grade, quality, and/or quantity and at such 

amount off of the list price filed with the Code Authority, a s may, with the 

approval of the Administrator, be determined by such Code Authority. 

(b) Discounts on all orders placed through local dealers by salesmen shall 

be uniform as to purchasers of the same class, grade, quality, and/or quantity 

and at such amount off of the lis.t price filed with the Code Authority, as may, 

with the approval of the Administrator, be determined by such Code Authority. 

(c) Cash and trade discounts, other than provided for in sections (a) and 

(b) of this Article, are hereby prohibited. 

3. DEPOSITS 

(a) Deposits on the purchase price of class emblems and fraternity jewelry 

shall be required with the order, as follows: 

(1) On each class emblem order, not less than one dollar ($1.00) deposit 

where the retail selling price exceeds three dollars ($3.00) but is less than ten 

dollars ( $10.00). 

(2) On each class emblem order, not less than three dollars ($3.00) deposit 

where the retail selling price exceeds ten dollars ( $10.00). 

Provided, however, that no deposit shall be forfeited except for arbitrary 

cancellatiou or rejection of the order, or any part thereof. 

( 3) Not le ·s than ten percent ( 10%), and in no case less than one dollar 

( $1.00) deposit on all regular orders for fraternity jewelry at least fifty percent 

( 50%) of the purchase price thereof. 

4. SPECIAL CHARGES A D COMMISSIONS 

(a) On all orders for high-school rings and pins the actual cost of the necessary <lies hall be cha rged in accordance with a schedule submitted by the Code 

Authority and approYed by the Administrator. 

( b) ornmi iou in any form allowed or paid to any salesman representing 

a member of this DiYi ion hall be fil eLl with the Code Authority in the same 

manner as proYiued for the tiling of net curr ent price lists and discount sheets, 

and no sale. ·man shall giYe to a purcl1a:er any deduction from his commission 

as shown by the che<lule thereof filed with the Cocl-e Authority. 

(369) 
370 

IS. SALES PROVISIONS 

(a ) No member of this Division shall sell, exchange, or offer for sale, any 

product of this Division at a price below his own individual cost, as determined 

by an adequate cost-finding system, capable of uniform application to the industry, to be developed and set up by the Code Authority, subsequent to the 

effective date of this Code, and when approved by the Administrator, shall be 

used by all members of this Division as the basis for determining their 

individual cost. 

0. PRICE LISTS 

(a) Each member of this Division shall, within five (5) days after the effecti Ye date of this Code, file with the Code Autholity a schedule of his net 

current price lists and discount sheets on forms prescribed by the Code Authority and approved by the Administrator. 

(b ) Revised schedules of price lists and discount sheets may be filed from 

time to time thereafter with the Code Authority by any member of this Division, to become effective upon the date specified by such member, which 

date shall be not less than ten (10) days after the filing of such revised 

schedules with the Code Authority. 

( c) No member of this Division shall sell, exchange, or offer for sale any 

product of this Division at a price less than set forth in the schedule of such 

member on file with the Code Authority. 

( d) Members of this Division shall keep accurate records of their individual costs, which records sμall upon request, with the approval of the Administrator, be available to the Code Authority. 

(e) No member of this Division shall submit a price list in which the price 

of any particular article is less than the individual cost of such member, as 

determined by the uniform cost accounting system provided for in Section 5 

(a) of this schedule, and such submitted price list representing the price of 

any particular article below the individual cost of the member submitting the 

same, as shown by his certified cost sheets, shall be held in abeyance by the 

Code Authority pending submission of a revised price list based on the individual cost of each article to such member. 

7. TRADE PRACTICES 

In addition to the Trade Practices set forth in the Basic Code, the following 

constitute unfair methods of competition for members of this Division and are 

pro hi bi ted : 

(a) The giving of gratuities of every description, such as keys, placques, 

cups, and any article of merchandise or anything of value, as well as all gratis 

rings or pins, bribes, special discounts, or rebates. - (b) To guarantee a cash payment or installment payments as an inducement 

to secure a contract. 

( c) Advertising allowances, which have the effect of a concession in price, 

provided that this provision shall not be so interpreted as to prohibit legitimate 

advertising, or the purchase of a reasonable space in a school or college publication, based on approximately three percent (8%) of the business secured by 

the member of the Division, as advertising, from such school or college. 

( d ) Where no standard or special design has been adopted by any school or 

institution, and suggested designs are requested by such school or institution, 

that wll r equire a special shank die, no member of this Division shall submit a 

special sample of the design without first receiving a bona fide and definite 

signed order. I 

(e) Making repairs or refinishing any proμucts of the Industry without a 

fair charge unless defective in material or manufacture. 

8. CONSIGNMENT 

(a) Nothing contained 1.n the basic Code relative to the prohibition of delivery of goods on consignment or memorandum shall apply to members of this 

Division. 
371 

SCHEDULE B 

DIVISION FOB MANUFACTURERS OF FRATERNAL AND EMBLEM.ATIO JEWm:LBY 

TRADE PRACTICES 

In addition to the Trade Practices set forth in the basic Oode, the following 

constitute unfair methods of competition for the members of this Division 

and are prohibited : 

(a) To prepay any shipping charges on merchandise. 

(b) To accept a note or notes in payment which do not bear interest at the 

prevailing contract rate as provided by the law of the State in which said note 

may be executed. 

SCHEDULE 0 

DIVISION FOR IMPORTERS AND DIDALE!RS OF CHATONS, 1\1:ARC'ASITES, AND IMITATION 

PRECIOUS AND SEMIPRECIOUS STOXES 

1. No marcasites, chatons, or imitation precious or semiprecious stones of 

any kind or description, suitable for the manufacture of jewelry or ornamentation of other material of any kind shall be sold on any terms more advantageous than the following : 

( A) DISCOUNTS 

(1) A discount not exceeding three percent (3%) shall be allowed for payment within fifteen (15) days from the end of the month in which the merchandise is delivered, with a tolerance of ten (10) days, and no discount of any 

amount shall be allowed after the expiration of the discount period. 

(2) No discount or rebate or any other direct or indirect consideration or 

gratuity of any sort shall be allowed other than the discount stated in subsection (1) of this article. 

(B) DATINOS 

(1) No datings shall be allowed, except that merchandise sold after the 

25th of any month may be dated as of the first of the month immediately 

following. 

(C) MEMORANDUM MERCHANDISE 

(1) Merchandise on memorandum shall be submitted for a period no longer 

than five (5) days from the day of deli,·ery of such merchandise. Upon the 

expiration of five (5) days, such merchandise shall be returned or invoiced. 

(D) PAYMENT OF ACCOUNTS 

(1) Interest at the rate of six percent (6%) per annum,. unless otherwise 

provided by state law, shall be charged on all accounts not paid for within 

sixty (60) days from the end of the month in which delivery of merchandise 

was made. 

(2) A note settlement, even if effected on or prior to the discount date, 

shall not be considered as payment within the meaning of this subdivision, 

and no account shall be considered paid until the proceeds of any note given 

1n settlement shall have actually been collected. 

SCHEDULED 

DIVISION FOR THEl MANUFACTURERS OF AMEIRIOAN-MADE IMITATION PEAB:LS AND 

IMITATIONS OF PREGIOUS AND SEMI-PRIDCIOUS STONES AND BEADS, ASSEJMRLED 

INTO NECKLACES, CLASPS, BRACELEil'S, EARRINGS, CLIPS, RINGS, BROOOH PINS, 

HAIRPINS AND HAT PINS 

1. LABElL9 

(a) All jewelry of this class, manufactured in the United States under the 

provisions of this Code shall be entitled to bear an NRA label, which shall be 
372 

attached to such jewelry by the manufacturer, upon application approved by the 

Administrator, to he accompanied by a statement of compliance with the provisions of this Code; provided that the privilege of using such labels may be 

suspended by the Administrator in respect to any such manufacturer whose 

operations shall be found to be in violation of this Code. The Imitation Pearl 

and Imitation Stone diYision may establish appropriate plans for the issuance 

of such labels in accordance with the foregoing provisions. 

SCHEDULE E 

DIVISION FOR THEJ MANUFACTURERS OF BUCKLES AND 0RNAMEJNTS FOR l\IILLI ERY, 

DRESS·, BAGS, A.ND SHOES 

1. All shipments made by any member of this Division shall be f.o.b. point of 

shipment oxcepting to the five (5) boroughs of Manhattan. 

SCHEDULE F 

DIVISION FOR MANUFACTUREiRS SELLING TO CHAIN STORES WITH A RETAIL 

SEJLLING LIMIT OF ONE DOLLAR ( $1.00) OR LESS 

1. TERMS 

(a) No product of this Division shall be sold on terms more favorable than 

net ten (10) days delivered. 

SCHEDULE G 

DIVISION FOB MANUFACTURERS OF MACHINE CHAIN 

1. DEFINITIONS 

(a) .An "Unfinished Chain Manufacturer" is a person, firm, or corporation 

producing soldered and unsoldered chain by the use of machines, or automatic 

tools, operated by skilled mechanics. 

( b) The term " soldered chain " means chain made of any metal, precious or 

nonprecious, in any form, shape, or design, each link formed or linked by 

machine or automatic tools and soldered or welded. 

( c) The term " unsoldered chain " means chain made of any metal, precious 

or nonprecious, in any form, shape, or design, formed, shaped, or linked or 

booked by machine or automatic tools. 

2. MAOHINE HOURS 

(a) Chain machinery, including automatic tools to produce chain, shall not 

be operated more than forty ( 40) hours in any one week; provided, however, 

that upon application to the Code Authority the period of time during which 

chain machinery may be operated, for good cause shown, may be extended for 

such period as the Code Authority, subject to the approval and final decision 

of the Administrator, may deem necessary. 

8. TERMS 

(a) All unfinished chain shall be sold net thirty (80) days, f.o.b. factory. 

(b) No discounts of any kind shall be allowed. 

(c) No express or parcel post or insurance charges shall be allowed or 

deducted from invoices. 

( d) No cash allowances shall be made. 

(e) No rebates shall be allowed or gratuities given. 
373 

4. SALES PROVISIONS 

(a) No distress, so-called job lot unfinished chain shall be sold at less than 

cost, except upon application to the Code Authority and its approval of such 

sale. 

(b) No more unfinished chain, whether partially manufactured or not, shall 

be given than is charged on invoice. 

(c) No unfinished chain, soldered, welded, or unsoldered, shall be sold below 

actual cost of production. 

SCHEDULE H 

DIVISION FOR MANUFACTURERS OF FINDINGS 

1. DISCOUNTS 

(a) No discount shall be allowed for cash in excess of two percent (2%) 

and for a period of payment not later than the fifteenth (15th) of the month 

following date of invoice, or with not due terms for a period beyond the end 

of the month following elate of invoice. 

TRADE PRAO'I'ICEB 

(a) No member of this Division shall make free delivery of merchandise 

except within the city where the producing manufacturer is located, or from 

any branch shipping point of said manufacturer. 

(b) No member of this Division shall date any bills in advance. 

( c) No member of this Division shall allow anticipation. 

( d) No member of this Division shall furnish, without charge, findings samples in excess of twenty-five cents (25¢) in value in :rny one shipment; provided, 

however, that the provisions of this section shall not apply to samples in catalogue form or for catalogue use. 

SCHEDULE l 

DIVISION FOR THE l\IANUFaCTUREl~S OF COLLAR BUTTONS 

1. This division shall include those manufacturers of collar buttons whose 

products are made of gold of a grade less than ten karat ( 10 Kt.) fineness and 

shall not include manufacturers of solid 11earl buttons, but shall include only 

manufacturers who sell to the jobbing trade. 

2. In addition to the unfair trade practices of the basic Code, the following 

practices shall constitute unfair competition for the members of this Division 

and are prohibited : 

(a) To manufacture or sell a metal collar button without tJae manufacturers' 

trademark plainly stamped thereon. 

(b) To stamp metal collar buttons with other than the trademark of the 

manufacturer producing the same. 

( c) To furnish, without extra charge, any packaging or display material 

other than regular cards. 

( d) To make price allowance for collar buttons sold and shipped ln bulk. 

(e) To manufacture or sell any Inlaid Pearl Collar Buttons other than 

22/back, or other than White Pearl Domed. 

(f) To manufacture or sell any Swaged Pearl Collar buttons other than 

22/back or other than all white quality. 

0 


UNIVERSITY OF FLORIDA 

II I II IIIIII Ill Ill lllll lllll II IIIIII II IIIII Ill 1111111111111111111 

3 1262 08582 8456