Approved Code No. 507 Registry No. 1628--61 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

SURGICA~ DISTRIBUTORS' 

TRADE 

AS APPROVED ON AUGUST 24, 1934 

'WE DO OUR PAd 

a '' ill. --- ... 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent of Documents. Washington. D.C. - - - - - - - - Price 5 cents 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, \Vashington, D.C., and by district offices of the Bureau of Foreign 

and Domestic Comwerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, 1\Iass. : 1801 Customhouse. 

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

Charleston, S.C. : Chamber of Commerce Building. 

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Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

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New York. N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

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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 Office Building. 
Approved· Code No. 507 

CODE OF FAIR COMPETITION 

FOR THE 

SURGICAL DISTRIBUTORS TRADE 

As Approved on August 24, 1934 

ORDER 

APPROVING ConE OF FAIR CoMPETITION FOR THE SURGICAL DrsTRinUTORs TRADE 

An application having been duly made pursuant to and in :full 

compliance with the provisions o:£ Tile I o:£ the National Industrial 

Recovery Act, approved June 16, 1933, :for approval o:£ a Code of 

Fair Competition :for the Surgical Distributors Trade, and hearing 

having been duly held thereon and the annexed report on said code, 

containing findings with respect thereto, having been made and 

directed to the President: 

NOW, THEREFORE, on bebal:£ of the President of the United 

States, I, Hugh S. Johnson, Administrator :for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the President, including Executive Order No. 6543-A, dated December 30, 

1933, and otherwise; do hereby incorporate by reference said annexed 

report and do find that said Code complies in all respects with the 

pertinent provisions and will promote the policy and purpo es of 

said Title of said Act; and do hereby order that said Code of Fair 

Competition be and it is hereby approved; provided, however, that 

at such time as I may direct there shall be a :further hearing on such 

of the provisions o:£ aiel Code as I may designate, and that any order 

which I may make after such hearing shall have the effect of a condition on the approval of said Code; provided, further that the 

following changes be, and the same hereby are, made: 

(1) That Section 9 of Article II be, and the same hereby is 

amended to read as follows : 

"Outside Salesmen.-The term' outside sales1nen' as used herein 

shall mean a salesman who is engaged less than sixteen (16) hours · per week inside the establishment, or any branch thereof, by which 

he is employed." 

(2) That Section 10 of Article II b, and the same hereby is 

amended to read as follows : 

" Outside Oollectors.-The term 'outside collectors' as used herein 

shall mean a collector of accounts who is engaged less than sixteen 

82308"----1~44-109----34 (147) 
148 

(16) hours per week inside the establishment, or any branch thereof, 

by which he is employed." 

(3) That the last two paragraphs of Section 1 of Article III be, 

and the same hereby are amended, to read as follows : 

" No employee shall be permitted to work for two or more establishments a greater number of hours, in the aggregate, than he would 

be permitted to work for that one of such establishments which 

operates upon the lowest schedule of working hours." 

"No employee not included in the foreg01ng paragraphs, and not 

specifically excepted hereinafter, shall be permitted to work more 

than forty ( 40) hours in any one week, nor more than eight ( 8 ~ 

hours in any one day, nor more than six (6) days in any one week.' 

( 4) That Section 4 (a) of Article III be, and the same hereby is 

amended, to read as follows : 

"The maximum periods of labor prescribed in Section 1 of this 

Article shall not apply to professional persons receiving more than 

$35.00 per week, who are employed and working at their profession, 

or to outside salesmen and outside collectors and watchmen. Watchmen may be permitted to work a maximum of fifty-six (56) hours 

per week but no watchmen shall be employed for more than six ( 6) 

days in any seven (7) day period." 

( 5) That Section 4 (b) of Article III be, and the same hereby is 

amended, to read as follows : 

":Maintenance and outside service employees may be permitted to 

work a tolerance of ten (10%) percent in excess of the maximum 

hours hereinabove set forth, provided they are paid one and one-half 

times their normal rate of pay for all hours worked in excess of the 

maximum hereinabove set forth." 

( 6) That Section 6 of Article IV be, and the same hereby is 

amended, to read as follows : 

"H andicappecl persons.-A person whose earning capacity is 

limited because of age or physical or mental handicap or other infirmities may be employed on light work at a wa~·e below the minimum established by this Code if the employer obtains from the States 

authority designated 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. Each employer shall file 

monthly with the Code Authority a list of all such persons employed 

by him, showing the wages paid to, and the actual hours of work for 

such employee." 

(7) That Section 10 of Article IV be, and the same hereby is 

inserted: '~ l.V eekl/y wages above minimwn~ not to be reduced.-The weekly 

wages of all classes of employees receiving more than the minimum 

wages prescribed in this Article shall not be reduced from the rates · existing upon July 15, 1933, notwithstanding any reduction in the 

number of working hours of such employee." 

(8) That Section 4 of Article V be, and the same hereby is 

amended, to read as follows : 

"Every employer shall provide for the safetl and health of employees during the hours and at the places o their employment. 

Standards for safety and health shall be submitted by the Code 
149 

Authority to the Administrator within three (3) months after the 

effective date of the Code." 

( 9) That Section 6 (c) of Article VI be, and the same hereby is 

amended, to read as follows : 

"To obtain from members of the trade such information and 

reports as are required for the administration of the Code. In 

addition to infonnation required to be submitted to the Code Authority, members of the trade subject to this Code shall furnish such 

statistical information as the Administrator may deem necessRry for 

the purposes recited in Section 3 (a) of the Act to such F ederal and 

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

Code shall relieve any member of the trade of any existing obligations to furnish reports to any Government agency. No individual 

report shall be disclosed to any other member of the trade or any 

other party except to such other governmental agencies as may be 

directed by the Administrator." 

{10) That Section 6 of Article VIII be, and the same hereby is 

amended, to read as follows : 

"No member of the trade shall imitate or simulate any design, 

style, brand, trade-mark, slogan, or other means of identification 

owned by any other member of the trade in such a manner as has 

the tendency or capacity to mislead or deceive purchasers. In order 

to make this provision effective, the Association may provide for the 

establishment of an Agency for the registration of surgical instruments of original and useful design. The provision of this Section 

shall not supersede any State or Federal Laws, but shall be supplementary thereto." 

(11) That Section 7 of Article VIII be, and the same hereby is 

deleted. 

HUGH S. JOHNSON' 

Administrator for Industrial Recovery. 

Approval recommended: 

GEo. L. BERRY, 

Division Administrator. 

WASHINGTON, D.C. 

August 934, 1934. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: This is a report on the Code of Fair Competition for the Surgical Distributors Trade, the hearing having been conducted in 

Wa,shington on the 27th day of November, 1933, in accordance with 

the provisions of Title I of the National Industrial Recovery Act. 

GENERAL STATEMENT 

The Surgical Distributing Trade is a widespread Trade with 

retail establishments or agencies in most of even the relatively small 

cities. In 1929, there were five hundred and seventy-four (574) 

retail establishments which had net sales of over thirty-one million 

($31,000,000.00) dollars. The number of distribution wage earners 

was the same in the first half of 1932 as in 1929, which was approximately three thousand. Since June, 1932, reduction in net sales have 

been accompanied by reduction in distribution employment so that 

in the first half of 1933 net sales per distribution wage earner was 

about forty per cent below those of 1929. 

HOURS AND WAGES 

The Wage Hour provisions of this Code are the same elective provisions regarding wages, work hours and store hours, that are included in the Approved Code for the General Retail Trade. 

ECONOMIC EFFECT OF THE CODE 

There will probably be very little increase in employment in this 

trade as a result of the Code because the majority of the establishments now covered by this Code were operating under the General 

Retail Trade Code. 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 

having found as herein set forth and on the basis of all the proceedings in this matter; 

I find that: 

(a) Said Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act~ including 

removal of obstructions to the free flow of interstate and foreign 

commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organization of 

Trades fQr the purpose of cooperative action among trade groups, 

by inducing and maintaining united action of labor and manage-

(150) 
151 

ment under adequate governmental sanctions and supervision, by 

eliminating unfair competitive practices, by promoting the fullest 

possible utilization of the present. productive capacity of industries, 

by avoiding undue restrictions of production (except as may be temporarily required), by increasing the consumption of industrial and 

agricultural products thr:ough increasing purchasing power, by reducing and relieving unemployment, by improving standards of 

labor, and by otherwise rehabilitating industry. 

(b) Said Trade normally employs not more than fifty thousand 

employees ; and is not classified by me as a major Trade. 

(c) The Code as approved complies in all respects with the 

pertinent provisions of said Title of said Act, including without 

limitation Subsection (a) of Section 3, Subsection (a) of Section 

7, and Subsection (c) of Section 10 thereof; and that the applicant 

association is a trade association truly representative of the aforesaid Trade; and that said association imposes no inequitable restrictions on admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 

or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 

small enterprises and will not operate to discriminate against them. 

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

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

Code. 

For these reasons this Code has been approved. 

Respectfully, 

AuGUST 24, 1934. 

HUGH s. JOHNSON' 

Administrator. 
CODE OF FAIR COMPETITION FOR SURGICAL 

DISTRIBUTORS TRADE 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Code of 

Fair Competition for the Surgical Distributors Trade, and its provisions shall be the standards of fair competition for such trade, and 

shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

Wherever used in this code or in any schedule or amendment 

hereto, the terms hereinafter defined in this Article, shall, unless the 

context shall otherwise clearly indicate, have the respective meanings 

in this Article set forth. 

SEcTION 1. Surgical Distribwtors Trade.-The term " Surgical Distributors Trade", as used herein shall mean the distribution except 

wholesale distribution of instruments, appliances, apparatus, and 

articles used or prescribed by physicians, surgeons, hospitals and 

nurses, in the diagnosis of disease and the care, treatment and relief 

of the sick, lame, ruptured and injured, except such articles the 

distribution of which are governed by another approved code or 

codes. 

SECTION 2. M embe1· of the Trade.-The term "member of the 

trade" or "member", as used herein, shall mean any individual, 

partnership, association, corporation or other form of enterprise 

engaged in the surgical trade as defined above, either as an employer 

or on his or its own behalf. 

SECTION 3. President, Act and Administrator.-The terms " President", "Act", and "Administrator" as used herein mean, respectively, the President of the United States, Title I of the National 

Industrial ·Recovery Act, and the Administrator for Industrial 

Recovery. 

SECTION 4. Establishment.-The term "establishment", as used 

herein, shall mean any store or department of a store, shop, stand or 

other plac.e of business where such trade, as defined in Section 1 of 

this Article, is carried on. 

SECTION 5. E1nployee.-The term "employee", as used herein, includes any and all persons engaged in the trade, however compensated, except a member of the trade. 

SECTION G. Employer.-The term "employer", as used herein, includes anyone by whom any such employee is compensated or 

employed. 

SEOr!ON 7. South.-The term "South" as used herein shall mean 

Virginia, VVest Virginia, Maryland, North Carolina,- South Carolina, 

Georgia, Florida, Kentucky, Tennessee, Alabama, Mississippi, Ar-

(152) 
153 

kansas, Louisiana, Oklahoma, New Mexico, T exas, and the District 

of Columbia. 

SECTION 8. Popruiation .-The term "popu]ation ", a u ed herein, 

shall be determined by reference to the late t Federal Cen u . 

SECTION 9. Out icle salesn~ n .-The term out ide sale men " as 

used her in. hall mean a alesman 'vho is engag lnot le s than ixty 

( 60) percent of hi working hour. out ide the e. tabli hment, or any 

branch thereof, by whi,..h he i emplo ecl. 1 

ECTION 10. O~d ·ide collector.-The term " outside collector" as 

used herein ·hall mean a collector of accounts who i engaged not 

le s than sixty ( 60) percent of hi ~Tor king hours outside the establi hment, or any branch ther of by which he i · employed.

2 

ARTICLE III-Ho u 

SECTION 1. Basic sto-re and W'<H'king hours.-On and after the 

effective date of this Code establishment in the Surgical Di tributing Trade hall elect to operate upon one of the following schedules 

of hours of busines ::mel hours of labor. 

Group A . Any tabli hment may elect to r emain open for business 

less than fifty-six (56) hours but not le than fift T-two (52) hours 

per \\eek, unle it hours of bu.~ iness "·ere le ·s than fifty-two (52) 

hour prior to J nne 1 t 1933, in which <.:a e such establishment hall 

not reduce it hours of business; no employee of the. e establishments 

shall work more than forty ( 40) hours per ''"eek nor more than eight 

(8) hour · per day, nor more than ix (6) days per week. 

Group B . Any e tablishment may elect to remain open for business 

fiftv- ix (56) hours or more per ''eek but less than sixty-three ( 63) 

hOllrs per woek; no employee of ~· ch e -tabli hment shall work more 

than forty-four ( 44) hours p er w ek, nor more than nine ( 9) hours 

per day, nor more than six (6) lays per week. 

Group C. Any e, tablishment may elect to rem.ain open for business 

sixty-three ( 63) h urs or more per week; no employee of such e tablishment hall \\Ork more than forty-ei.ght ( 48) hours per week, nor 

more than ten (10) hours per day, nm· more than six (6) days per 

week. 

No employee hall work for two or more establishments a greater 

number of hours, in the aggregate, than he would be permitted to 

work for that one of uch e tablishments which operates upon the 

lowest schedule of working hours. 

3 

No employee not included in the foregoing paragraphs, and not 

specifically excepted hereinafter, shall work more than forty ( 40) 

hours in any one week nor more than eight (8) hours in any one 

day nor more than six (6) clays in any one week. 3 

SECTION 2. Schedule of hmtrrs to be posted.-On or within one 

week after the effectiYe date of thi Code every member of this Trade 

shall designate under which of the Groups set forth in the preceding 

Section it elects to operate and shall post and maintain in a conspicuou place in the e tabli hment a copy of such election showing 

its hours of busine s and employee working hours. 

1 .Amended-See paragraph 2 (1) of order approving this Code. 2 .Amended-Sec paragraph 2 (2) of order approving this Code. 

! .Amended-See Paragrap h 2 (3) of order approving this Code. 

82308 °--1044-109-34-2 
154 

SECTION 3. Olzanges in sto,·e lzow·s and e1nployee 1..oo1'l~ing hourrs.-

( a) No establishment may change from the Group in which it has 

elected to operate except upon December 31 of every year. 

(b) Any establishment, ho\\eYer, may at any tim·e increase its 

Lours of business. provided it maintains the basic employee woTk 

week of the Group in \\hich it originally elected to operate. 

(c) ..c~\.. ny establishment may, for a period not to exceed three (3 ) 

months during the Summer, temporarily reduce its hours of business, bnt the weekly wages of its employees shall not on that account 

be reducell . SEC"TIDX -±. E.1·rcptio,, t o nw.r:immn jJCJ'iods of Znbo1·.- ( n) P-rofes- sional z)eJ•smts, outsid(' sa!esmcn, out~ide collectors, and tvatcl'tm.en. 

The maximum perioL1s of labor prescribed in Section 1 of this Article shall not apply to professional persons employed and \rorking 

at their profession, or to outsid-e salesmen, outside collectors and 

wrrtchmen. \Yatchmen mrry be p ermitted to \\ork rr maximum of 

fifty-six ( 5G ) hours per \Yeek but no watchnum shall be emploved 

for m0re than six (G) clays in any seYen (7) clay perioc1.

4 

(b) l\Iaint2nance and outside service employees may be permitted 

to work in excess of the ma:s:imm11 hours hereinaboye set forth, proYidecl they arc paid one lmcl one-half times their normal r ate of pay 

for all hours wm·keLl in excess of the maximum hereinabove set forth. 5 

(c) The proYisions of this Article shall not apply to persons engaged in a manngerial, executiYe, or superYisory capacity, or surgica 1 appliance fitters, provided all snch persons herein enum-e rated 

are paid at least $35.00 per \i·eek. 

(d) Any employee may be \IOl"ked in excess of the maximum daily 

rrnd \ll:'eldy honrs specified in this Article and applicable to him, proYicled that one and one-half tinu's his normal hourly rrrte shall be 

paid f0r all time worked in 0xcess of the maximum daily and weekly 

h our;-; a:s hereinaboYe set forth . In no case, howenT~ shall any enlployee be permitted to Yi'Ol'k more than eight (8) hours in any one 

W€E'k jn excPss of the n1aximum weekly hours sp-ecified in this Article 

and applicable to him. 

SECTION 5. Ii ou, s of work to be consecutive.-The hours \Yorked by 

anJ employee during €ach day shall be consecutiYe, proYided that. an 

interYal not Jonger than one hour may be allowed :for each regular 

meal period, and such interYnl not counted as part of the employee's 

11orking time. Any rest period \Yl1ich may be ftiYen employees shall 

not be deducted from such employee's working time. 

SECTTON G. ~.:tra 1c01'king hour on one day a u'eek.-On one day 

each week employees may \Yorh: one extra hour, but such hour is to 

be included within thB maximum hours permitted ench \Yeek 

SECTIOX 7. Emergencies and epidem.ics.-In the eYent of emergencies due to epidemics or catastrophes 'ivhei'ein the public health i. 

threatened, the stipulations regarding maximum hours of employment shall be temporarily suspended during such emergency as to 

those employees whose work is affected thereby, but on condition that 

no employee shall be permitted to \York more than 20% in excess 

of the maximum hours pl'oviclecl for the Group in which such employee is re~ularly classified in any one week during uch emergency 

4 Amcnclcd- Sre paragraph 2 (4) of ol"der approving this Code. 11 Amend ed-Sec varngraph 2 (5) of order approving this Code. 
155 

peri-od. PaJlnent for all such work by an en1ploye in exce s o:f the 

hour per week pr<Jvided in Section 1 a bo1e, hall be at the raJe of 

time and one-half his normo.l rate of pay. I~ all 1ch cases the n1e!TIG 

ber of the trade affected thereby hall notify he Code ~nthonty 

of the rea on for the existen e of t h emerg ncy. The n1cmber 111ay 

operate under this Section uron hi · own determination of the exi t-·~ 

tence of an emergency unless and until th Code \_uthority c1onie8 

the existence of u h emero·en y. Th determinr..tion by the Cocle 

Authority is ·ubj ect to re\ie11, approval and eli approval of the Admini trator in each ca -e . During the e::s:i. ten e of uch emerge11cy the 

member or member · of the Trade a:ffe ted thereby shall notify the 

Code Au hority of the hour worked hy employee5 during the period 

of such em r o·en cy, .and the termination thereof. 

SEcTrox 1. Basie ch d'tdes of wag s.-On and after th.£\ eff 

elate of thi Code, tho minimum V"Y eekly rate. of wao·e · which 

be paid for a w-ork week a · pecifiecl in Articl-e III..- wheth r uch 

wages are calculatac1 upon an hourly. weekl} , monthly. commi ion 

or any other ba i hall , except a · her inafter provided, be as 

follow : 

(a) \Yithin citie of over 500,0 0 l)Opulation, no emplo ee hall 

be paid es~ than at the rate of $14.00 per week for a forty (40) -

h our work week, or l es than at the rate of , 1±.50 per week for a 

forty-four (44) hour work week, or le ~ than at the r ate of '15.00 

per -week for a forty-eight ( 48) houT -wm_·k ~eek. 

{b) \Yithin citie of from 100 000 to 500.000 population, no employee hall be paid less than at the rate of, 13.00 per week :fo'r a forty 

(10) hour work we€k or les than a+ the rate of . 13.50 per 1-veek for 

a forty-four (44) hour work 1\eek, or less than at the rate of ct> 14.00 

per week for a faTty-eight (48) h ouT work week. 

(c) Within cities of less tbilll 100.000 popcuation no employee 

hall b v paid less than rrt the rate of $12.00 per week for a forty 

( 40) hour wm·k week, or less than at the ntte of $12.50 per week 

for a fortv-four (44) hour work week. or le: · than at the rate of '13.00 pel' 1•ePk for a forty-eight ( 48) hour work week. 

SECTION 2. Th minimum wage paid to outside , n1esrnen and antside collectors, ex ept tho e employed <;:olely on a co:nu11i ion basis, 

shall bo not le.~s th_?.n .15.00 per VI ek, plus traYeling expenses. 

S""'CTIOX 3. · mdfl.ern ·2ca.gc dif!erCJJ{cd.-In the South, v.ithin cities 

of oye_;_' 2.~ ,000 population, the n1ininnuu wages 1Jre cribocl in the 

foTegoing ...,ection lll!lY be at the rate of $1.00 e~ , 1~r week. 

S.ECTIO::'if 4. :ro office boy, or me senger, shall b e paid le · than 80 

per cent o£ the minimm1l wage herein uet for~·h for the m~::-imnm 

~eekly hours pecifi-ecl in Article III. and apJ9licable t o hn11, pronclecl, hmve\er, that where more than on12 1nployee i"' lassi:fied and 

compensaLd a · an office boy or n1e e.nger, not more than fiv-e per 

ce1~t (5 Cfc ) of tho total number of office e.111plo,ree hall b so cia ifi ecl and compensated in each establishment. 

SECTION 5. Pa1·t-time employees.-Part-time employee . hall E~ 

p::ti?- not leu t hen at the nourly r te propoTtionate t o the ra _es l)I'e- scnbed in the :foregoing sections of thi. Ar icl . 
156 

SEcTION 6. Il andicapped pm·sons.-A person whose earning capacity is limited be ause of age or phy ·i ·al or mental handicap may be 

employed on ljght work at a wage below the minimum established 

by this Code if the employer obtains from the States authoritv desig- nated by the United States Department of Labor a certificate vauthorizing his employment at snch wages and for such hours a · shall be 

stated in the certificate. Each employer shall fil e monthly ,vith the 

Code Authority a li t of all such persons employed by him, showjng 

the wages paid to, and the actual hours of work for such employee. 6 

SECTION 7. An employer shall make payment of all wages rlue 

at least every two weeks and salaries at lea t monthly in lawful curency or by negotiable demand check . These wages and salaries 

shall be exempt from any charges, fines or deductions, or payments 

for pensions, insurance or sick benefits other than those voluntarily 

paid by the wage earners or required by State law. No employer 

shall withhold wages. The employer or hi. agents shall accept no 

rebate directly or indirectly on such wages or salaries. 

SECTION 8. Female employees doing substantially the same work 

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

employees. 

SECTION 9. This Article establishes a minimum compensation 

which shall apply, irrespective of whether an employee is actually 

compensated on a time rate, piece-work, or other basis. 7 

ARTICLE V-GENERAL LABOR AND OTHER PROVISIONS 

SECTION 1. Child Labor.-No person under eighteen (18) years 

of age shall be employed in the Trade except in clerical, office, sales, 

or service departments, and no person under sixteen ( 16) years of 

age shall be employed in any capacity. In any State an employer 

shall be deemed to have complied with this provi ·ion as to aae 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. (a) Employees shall have the right to organize and 

bargain collectively through representatives of their own choosing, 

and shall be free from the interference, restraint, or coercion of employer 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 eeking employment shall be required 

as a condition of employment to join any company union or to refrain from joining, organizing, or assi ting a labor organization of 

his own choosing, and 

(c) Employers shall comply :with the n1aximum hours of labor, 

minimum rates of pay, and other conditions of employment approved 

or prescribed by the President. ' 

SECTION 3. No employer shall reclassify employees or duties of 

occupations performed or engage in any other subterfuge so as to 

defeat the purposes of provisions of the Act or of this Code. 

6 Amended-:§.ee paragraph 2 (6) 

'Section 10 added to Article IV-See paragraph 2 (7) of order approving this Code. 
157 

SECTION 4. Every employer shall provide :for the safety and health 

of employees during the hours and at the places of their employment. 

Standards :for safety and health shall be submitted by the Code 

Authority to the Administrator within six months after the effective 

date of the Code. 8 

SECTION 5. No provision in this Code shall supersede any State 

or Federal law which imposes on employers more stringent requirements as to age o:f employees, wages, hours of work, or as to safety, 

health, sanitary or general working conditions, or in urance, or fire 

protection, than are imposed by this Code. 

SECTION 6. All employers shall post and keep po ted full copies 

of this Code in conspicuous places readily accessible to all employees. 

Every member of the trade shall comply with all rules and regulations relative to the posting of provisions of Codes of Fair Competition which may from time to time be prescribed by the 

Administrator. 

ARTICLE VI-ADMINISTRATION, ORGANIZATION AND CoNSTITUTION 

SECTION 1. A Code Authority is hereby established for the Surgical Distributing Trade to cooperate with the Administrator in 

the administration of this Code, and shall consist of nine (9) persons, seven (7) of whom shall be selected by the America.n Surgical 

Trade Association and two (2) by non-members of the Association. 

Members of the Association and non-members elected to the Code · 

Authority shall be elected thereto, either prior to and in contemplation of the approval of this Code, or subsequent to its approval, by 

a method of selection approved or prescribed by the Administrator. 

The Administrator may appoint not more than three (3) additional members, without vote and without expense to the trade, to 

serve for such period of time, and to represent the Administrator or 

such group or groups, as he may designate. 

SECTION 2. Each trade or industrial association directly or indirectly participating in the selection or activities of the Code Authority shall (1) impose no inequitable restrictions on membership, 

and (2) submit to the Administrator true copies of its articles of 

association, by-laws, 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. 

SECTION 3. In order that the Code Authority shall at all times be 

truly representative of the trade, 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 find that 

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

respects comply with the provisions of the Act, may require appropriate modification of the Code Authority. 

SECTION 4. Nothing contained in this Code shall constitute the 

members of the Code Authority partners for any purpose. Nor shall 

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

one for any act of any other member, officer, agent or employee of 

8Amended-See paragraph 2 (8) of order approving this Code. 
158 

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

exercising reasonable diligence in the conduct of his duties hereunder, be liable to any one for any action or omission to act under 

this Code, except for his own wilful malfeasance or non-feasance. 

SECTIO 5. If the Administrator shall determine that any action 

of the Code Authority or any agency thereof may be unfair or unjust 

or contrary 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 which shall not be effective 

unless the Adlninistrator approves or unless he shall f ail to disapprove after thirty (30) days' notice to him of intention to proceed 

with such action in its original or modified form. 

POWERS AND DUTIES 

SECTION 6. Subject to such rules and regulations as may be issued 

by the Administrator, the Code Authority 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, provide for the compliance of the trade with the provisions of the Act, 

and to propose and submit to the Administrator modifications and/ or 

amendments to this Code which shall become a part hereof upon 

· approval by the Administrator after such notice and hearing as he 

shall specify. 

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

and administration of the Code. 

(c) Throu~h the Secretary of the Code Authority to obtain from 

members of the trade such information and reports as are required 

for the administration of the Code, and to provide for subnnssion 

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 trade of any existing obligations to furnish 

reports to any government agency. All such data shall be compiled 

by the Secretary in a form which will not reveal the data of an 

individual member of the trade, and in this form may be made 

available to the members of the trade as directed by the Code Authority unless otherwise directed by the Administrator. 9 

(d) To use the American Surgical Trade Association and other 

agencies as it deems proper for the carrying out of any of its activities provided for herein, provided that nothing herein shall relieve 

the Code Authority of its duties or responsibilities under this Code 

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

subject to and comply with the provisions ·hereof. 

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

with the trade practice committees appointed under such other codes 

as may be related to the trade and industry for the purpose of formulating fair trade practices to govern the relationships between pro9 Amended- See paragraph 2 (9) of order appDoving this Code. 
159 

duction and distribution employers under this Code and under such 

others, to the end that such fair trade practices may be propo ed to 

the Administrator as amendments to this Code and such other codes. 

(£) To establish an Industrial Relations Committee for the trade 

which shall consist of an equal number of representatives of em- ployers and employees and an impartial chairman. The Administrator shall appoint such impartial chairman upon the failure of the 

committee to select one by agreement. I£ no truly representative 

labor organization exists, the employee members of such board may 

be nominated by the Labor Advisory Board of the N. R. A. and 

appointed by the Administrator. The employer representatives 

shall be chosen by the Code Authority. Such committee shall deal 

with complaints and disputes relating to labor, in accordance with 

rules and regulations issued by the Administrator. The Industrial 

Relations Committee may establish such divisional, regional, and 

local industrial adjustment a&encies as it may deem desirable, each 

of which shall be constituted 1n like manner as the Industrial Relations Committee. 

(g) To recommend to the Administrator further fair trade practice provisions to govern members of the trade in their relations with 

each other, or with other trades, and to recommend to the Administrator measures for industrial planning, including stabilization of 

employment. 

(h) To consider all charges of any breaches of the Code andjor 

any schedules or amendments thereto. 

SECTION 7. It beina found necessary, in order to support the administration of this C'ode and to maintain the standards of fair competition established by this Code and to effectuate the policies of the 

Act, the Code Authority is authorized, subject to the approval of 

the Administrator: 

(a) To incur such reasonable obligations as are necessary and 

proper for the foregoing purposes and to meet such obligations out 

of funds which may be raised as hereinafter provided and which 

shall be held in trust for the purposes of the Code; 

(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 

purposes, and (2) an equitable basis upon which the funds necessary 

to support such budget shall be contributed by members of the 

industry; 

(c) After such budget and basis of contribution have been approved by the Administrator, to determine and secure equitable contribution as above set forth by all members of the industry, and to 

that end, if necessary, to institute legal proceedings therefore in its 

own name. 

SECTION 8. Each member of the trade shall pay his or its equitable 

contribution to the expenses of the maintenance of the Code Authority, determined as hereinabove provided, and subject to rules 

and regulations pertaining thereto issued by the Administrator. 

Only members of the trade complying with the Code and contributing 

to the expenses of its administration as hereinabove provided, shall 

be entitled to participate in the selection of members of the Code 

Authority or to receive the benefits o£ any of its voluntary activities 
160 

or to make use of any emblem or insignia of the National Recovery 

Administration. 

SEcTioN 9. The Code Authority shall neither incur nor pay any 

obligation in excess of the amount thereof as estimated in its approved budget, except upon approval of the Administrator; and no 

subsequent budget shall contain any deficiency item for expenditures 

in excess of prior budget estimates except those which the Administrator shall have so approved. 

SEC'I'ION 10. The Surgical Distributors Trade Code Authority may 

incorporate under the laws of any State of the United States or of 

the District of Columbia, or may assume or adopt such existing 

corporate form under any of such laws as it may deem appropriate 

for the proper performance, as and from the effective date, of its 

activities, powers and duties hereunder, such corporation or corporate 

form to be not for profit and to be known as the Surgical Distributors 

Trade Code Authority, Incorporated; provided that the powers, 

duties, objects and purposes of the said corporation shall, to the 

satisfaction of the Administrator, be limited to the powers, duties, 

objects and purposes of the Surgical Distributors Trade Code Authority as provided in this Code; provided, further, that the existence 

of the said corporation shall be during the term of the Code; and 

provided, further, that the certificate of incorporation and by-laws 

shall be subject to the disapproval of the Administrator. 

ARTICLE VII-PRicEs, TERMs, SALEs, ETc. 

SECTION 1. All installment sales shall be covered by a written 

agreement retaining title or a lien until full payment is made, and 

shipment of goods shall not be made until agreement and notes for 

unpaid part of purchase price are signed and delivered and initial 

payment made. A first or down payment of not less than twenty 

( 20) per cent of the total amount of the sale shall be required on 

installment sales. This provision is understood to prevent the shipping of merchandise on approval for a period in excess of ten (10) 

days. Immediately upon al?proval the initial payment shall be made. 

Deferred installments of Installment sales shall not be more in 

number than as follows: 

Sales up to $300, not more than 10 monthly installments. 

Sales $300 to $500, not more than 12 monthly installments. 

Sales $500 to $1000, not more than 18 monthly installments. 

Sales over $1,000, not more than 24 monthly installments. 

SECTION 2. A cash discount not exceeding five ( 5) per cent may be 

allowed for cash payment of purchase price of goods with order. A 

cash discount, not exceeding two (2) per cent, may be allowed for 

payment of an account by the lO~h of the month following the date 

of purchase. Accounts shall be due and payable at the end of the 

month following the month in which the purchase is made. 

ARTICLE VIII-TRADE PRACTICES 

SECTION 1.. No member of the trade 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 
161 

another in relation to the business of the employer of such employee, 

the principal of such agent, or the represented party, without the 

knowledge of such employer, principal or party. Commercial 

bribery provisions shall not be construed to prohibit free and general 

distribution of articles commonly used for advertising except so far 

as such articles are actually used for commercial bribery as hereinabove defined. 

(a) For the purposes of this Section, physicians, surgeons, and 

other professional men and women shall be considered agents or 

representatives of their patients and/or clients when they offer or 

recommend the purchase of products of this trade. 

SECTION 2. No member of the trade shall allow secret rebates, refunds, commissions, credits, or unearned discounts, whether in the 

form of money or otherwise, or extend to certain purchasers special 

services or prices, nor shall a member extend special privileges not 

extended to nll purchasers of the same class, on like terms and conditions, nor withhold from, or insert in an invoice or contract any 

statements which make the invoice or contract a false record, wholly 

or in part, of the transaction covered thereby. 

SECTION 3. No member of the trade shall use advertising which is 

inaccurate in any material particular, nor shall a member directly, 

by ambiguity or by inference misrepresent merchandise or any substance used in connection therewith (including, but not limited to 

its use, trade-mark, grade, quality, quantity, size, origin, material content, preparation or curative or therapeutic effect) or credit terms, 

values, :policies, or services; and no member of the trade shall use 

advertising and/ or selling methods which tend to deceive or mislead 

the customer. Advertising includes all representations of fact or 

opinion disseminated in any manner or by any means, including the 

labeling of products. 

SECTION 4. No member of the trade shall disseminate, publish, circulate or cause to be disseminated, published or circulated any false 

or misleading statement relative to the following: 

(a) Any product or price thereof of any member of the trade; 

(b) The credit standing or ability of any member of the trade 

to perform any work or manufacture, or to produce any products . 

. SECTION 5. No member of the trade shall secure or use or cause 

to be secured any information concerning the business of any other 

member of the trade which is properly regarded by him as a trade 

secret or as confidential within his organization, without first obtaining such member's consent. Nothing in this Section shall be construed to include information relating to a violation of any provision 

of this Code. 

SECTION 6. No member of the trade shall imitate or simulate any 

design, style, brand, trade-mark, slogan, or other means of identification owned by any other member of the trade in such a manner as 

has the tendency or capacity to mislead or deceive purchasers. In 

order to make this provision effecti-ve, the Association may provide 

for the establishment of an Agency for the registration of surgical 

instruments of original and useful design. 1 0 

SECTION 7. No member of the trade shall sell the merchandise of a 

manufacturer or wholesaler to another distributor or other purchaser 

10 Amended-See paragraph 2 (10) of order approving this Code. 
162 

for resale in a manner to interfere with the regular channels of distribution, or with approved trad-e practices of any code governing the 

manufacturer or wholesaler thereof, except with the knowledge and 

consent of such manufacturer or wholesaler.11 

SECTION 8. No member of the trade shall induce or attempt to 

induce by any means, the breach of an existing contract between a 

competitor and his customer or source of supply; nor shall any such 

member interfere wjth or obstruct the performance of such contractual du6 es or services. 

SEcTION 9. No member of the trade shall refuse to sell any of the 

products of this trude t o another member of the trade or any other 

purchaser on the ground, or for the reason that said member of the 

trade or such other customer, is not a member of any trade association. 

ARTICLE IX-MODIFICATION 

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

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

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

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

SEmoN 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 on approval of the Administrator unless otherwise provided and so long as such approval may 

be by law required. 

ARTICLE X-MONOPOLIES 

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

against small enterprises. 

ARTICLE XI-PRICE INCREASES 

Whereas the policy of the Act to increase real ~urchasing power 

will be made more difficult of consummation if pnces of goods and 

services increase as rapidly as wages1 it is recognized that price 

increases, except such as may be reqmred to meet individual cost, 

should be delayed, but when made such increases should, so far as 

possible, be limited to actual additional increases in the seller's cost. 

ARTICLE XII-EFFECTIVE DATE 

This Code shall become effective _on the second Monday after its 

approval by the President. 

Approved Code No. 507. 

Registry No. 1628-01. 

11 Deleted-See paragraph 2 (11) of order approving this Code. 

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