Approved Code No. 71-Amendment No.1 Registry No. 619-1-03 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETIT,ON 

FOR THE 

PAINT, VARNISH and LACQUER 

MANUFACTURING!·' 

INDUSTRY 

AS APPROVED ON MARCH 2, 1934 

WE DO OUR PART 

U.!. DEPO~;TO~Y 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

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Approved Code No. 71-Arnendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

PAINT, VARNISH AND LACQUER MANUFACTURING INDUSTRY 

As Approved on March 2, 1934 

ORDER 

APPROVING AMENDME~Ts OF CoDE OF FAIR C o MPETITION FOR THE 

PAINT, VARNISH AND LACQUER ~1ANUFA TURING INDUSTRY 

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 approval of amendments 

to a Code of Fair Competition for the Paint, Varnish and Lacquer 

Manufacturing Industry, and hearings having been duly held thereon 

and the annexed report on aiel amendments, containing findings 

with respect thereto, having made and directed to the President: 

NOW, THEREFORE on behalf of the President of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Reco\ery, 

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

1933, and otherwise; do hereby incorporate, by reference, said annexed report and do find that said amendments and the Code as constituted after being amended comply in all respects with the pertinent provisions and will promote the policy and purposes of said 

Title of said Act, and do hereby order that said amendments be and 

they are hereby approved, and that the previous approval of said 

Code is hereby modified to include an approval of said Code in its 

entirety as amended. 

HuGH S. JoHNSON, 

Administ1·ator for Industrial R ecovery. 

Approval recommended : 

GEo. L. BERRY, 

Division Adrrdnistrator. 

wASHINGTON' D.C., 

M arcl-1- 92, 1934. 

43710°----425-15----34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: An application has been duly made pursuant to and in full 

compliance with the provisions of the National Industrial Recovery 

Act, for Amendments to the Code of Fair Competition for the Paint, 

Varnish, and Lacquer Manufacturing Industry, submitted by the 

Paint Industry Recovery Board. 

The hearing was conducted in Washington, D.C., on the 13th of 

February, 1934, at the Willard Hotel. 

The first Amendment is an addition to Article II-" Definitions " 

and defines "Artists' Colors." 

The labor provisions have been amended by limiting watchmen, 

janitors, and other caretakers to maximum hours of 48 in any one 

week and 84 in any 2-week period, work in excess of the maximums 

to be paid for at the rate of time and one-third. . Article XIV. "Manufacturing Restrictions" is amended to except 

"Artists' Colors." 

Article XVI. " Standard Terms of Cash Discount " is amended to 

cover "Artists' Colors" setting discounts of 2% for cash in 10 daysnet 30 days. 

Article XVIII. "Datings ", Section (a) "Spring Stock Orders" 

is amended to exclude "Artists' Colors." Section (b) "New Accounts" is amended to cover dating on new accounts for "Artists' 

Colors." Section (e) "Artists' Colors ": " Fall Stock Orders " is an 

addition to Article XVIII. 

Article XXII. "Selling Below Cost", Section (4) is amended to 

give the Paint Industry Recovery Board, the duty of classifying and 

furnishing to all manufacturers figures representing cost processing 

in the industry. These figures shall be the lowest reasonable cost of 

all manufacturers, subject to the approval of the Administrator. 

Schedule A, Section 16 is amended to include 25 pound containers. 

Article XXV. "Putty Division" is added. This Article defines 

the "Putty Division", makes provision for the establishment of a 

Putty Advisory Committee of five members to act in an adYisory 

capacity to the Paint Industry Recovery Board, and sets up a schedule of Fair Trade Practices for the Putty Division. 

FINDINGS 

The Deputy Administrator in his final report to me on said amendments to said Code having found as herein set forth and on the 

basis of all the proceedings in this matter: 

I find that: 

(a) The amendments to said Code and the Code as amended are 

well designed to promote the policies and purposes of Title I of the 

National Industrial Recovery Act including the removal of obstruc-

(2) 
3 

tions to the free flow of inter tate and :foreign commerce which tend 

to diminish the amount thereof, and will provide for the general 

welfare by promoting the organization of industry for the purpose 

of cooperative action among trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanctions and supervision, by eliminating unfair competitive practices, by promoting the fullest possible utilization of the 

present procluctiYe capacity of indu trie , by aYoiding undue restriction of production (except as may be temporarily required), by increa ing the consumption of industrial and agricultural products 

through increasing purchasing po"Wer, by reducing and relieving 

unemployment, by improving standard of labor, and by other"Wise 

rehabilitating industry. 

(b) The Code as amended complie in all r€ ·pects with the pertinent provi ions of said Title of said Act, including without limitation Subsection (a) of Section 3, Sub ·ection (a) of Section 7 and 

Subsection (b) of Section 10 thereof. 

(c) The National Paint, Oil, and ' arni h As ociation, Incorporated, was and is an industrial association truly representative o:f 

the aforesaid Industry and that aid association imposed and imposes no inequitable re trictions on admission to membership therein 

and has applied for or consents to these amendJ.nent ·. 

(d) The amendments and the Code as amended are not designed 

to and will not permit monopolies or monopolistic practices. 

(e) The amendments and the Code as amended are not designed 

to and will not eliminate or oppress small enterprises and will not 

operate to discriminate against them. 

(f) Tho e engaged in other steps of the economic proce s have not 

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

amendments. 

For these reasons, these amendments haYe been approved. 

Respectfully, 

HUGH S. JOHNSON' 

A cl?ninistrator. 

MARCH 2, 1934. 
AMENDMENT TO CODE OF FAIR COMP ETITION FOR 

THE PAINT, VARNISH AND LACQUER MANUFACTURING INDUSTRY 

AMENDMENT 1. Article II is amended by the addition of the fol- lowing between the first and second paragraphs : 

"The term 'Artists' Colors' means artists' oil colors, or artists' 

paints, water colors including poster and showcard colors, tempera 

colors, and artists' pastels, prepared canvases and panels, artists' 

mediums and varnishes, artists' drawing and lettering inks, artists' 

block printing inks of oil or water base, charcoal, modelling tools and 

all types of artists' woodenware, such as easels, palettes, color boxes, 

and such kindred materials and articles ordinarily used in schools 

and by art students, artists, commercial artists, etchers, modellers, 

sculptors and craftsmen." 

AMENDMENT 2. Article V, Section (c) is amended to read as 

follows: 

"The maximtun hours fixed in the foregoing Paragraphs (a) and 

(b) shall not apply to watchmen, janitors, or other caretakers; provided that such employees shall not work more than 48 hours in 

any one week, nor more than 84 hours in any 2-week period, except 

by payment of one and one-third rate for overtime; nor to employees 

in a managerial, executive, or other capacity who receive $35.00 

per week or more; provided that with respect to the exceptions in 

this Paragraph and in Paragraphs (a) and (b) of this .Article there 

shall be no evasion of this Code by reclassification of the function 

of workers. A worker shall not be included in any one of the above 

exceptions unless the identical functions which he performs were 

identically classified on June 16, 1933." 

AMENDl\fENT 3. Article XIV is amended to read as follows: 

" With the exception of Artists' Colors, as defined in Article II 

it shall be a violation of this Code for any manufacturer to fail 

to abide by the manufacturing restrictions as set out in Schedule 

A which is attached hereto and made a part of this Code, provided 

that this Article shall not apply to export trade and provided further 

that Paragraphs 2, 4, 5 and 6 of Schedule A shall not apply to 

products commonly known as 5, 10, and 25-cent merchandise which 

is sold at retail to the consumer at not n1ore than 25 cents per 

package." 

AMENDMENT 4. Article XVI is amended to r ead as follows: 

"On and after the effective date the terms granted by manufacturers, excluding export trade, shall not exceed : Trade sales accounts, 2% for cash in 10 days, net 60 days ; excepting Artists' 

Colors, on which the terms shall be-2% for cash in 10 day -net 

30 days; industrial sales accounts, 1% for cash in 10 days, net 30 

(4) 
5 

days; except that the discount to trade sales accounts may be extended to the lOth day of the month following purchase and the 

discount to industrial sales accounts may be extended to the 20th 

day of the month following purchase to customers who regularly 

discount in the month following purchase, and provided that no 

discount shall be allowed after the discount date." 

Al\'IENDMENT 5. Article XVII, Section (a) is amended to read 

as follows: 

" (a) Spring Stock Orders-Datings on orders to established 

dealer and/ or jobber accounts, excluding export trade, and Artists' 

Colors, shall be limited to datings on Spring Stock Orders shipped 

at the manufacturer's convenience after October 15, with an April 1 

dating and regular terms; one order to a.n account. 

AMENDMENT 6. Article XVII, Section (b) is amended to read 

as follows: 

"(b) New Accounts-The maximum dating on trade sales stock 

orders (initial stock order only) to new dealer and/ or jobber accounts, excluding export trade, and Artists' Colors, shall be limited 

to four months from the date of shipment and with standard terms, 

provided that orders shipped between October 15 and December 1 

in any year may be with an April 1 dating and with regular terms. 

Datings on initial trade sales stock orders qf artists' colors from 

new dealer andj or jobber accounts shall be limited to two months 

from the date of shipment and with standard terms." 

AMENDMENT 7.-The following Section (e) is added to Article 

XVII: 

" (e) Artists' Oolm·s: Fall Stock Orders: Datings on orders to 

established dealer and/or jobber accounts shall be limited to datings 

on fall stock orders and shipped at the manufacturer's convenience 

after April 1, with a September 1 dating and regular terms and one 

order to an account. In the case of show-card colors and inks, 

which are subject to freezing, dating shall be lin1ited on spring 

stock orders shipped at the manufacturer's convenience after N ovember 1st (or, in the event shipment is made by a water route, which is 

affected by the closing of navigation, this date may be advanced 

not to exceed ten days prior to the official closing of navigation over 

such route), with an April 1st dating und regular terms and one 

order to an account." 

AMENDMENT 8. Section ( 4) of Article XXII is amended to reau 

as follows: 

"The Paint Industry Rec·overy Board shall classify the products 

of the Industry and establish and furnish to all manufacturers figures representing all direct factory costs (such as power and labor) 

depreciation determined in accordance with the provisions of the 

Federal Income Tax Laws, plus a proper proportion of all indirect 

factory expenses (excepting interest on investment) in accordance 

with the share each class of products should bear. Such figures 

shall be the lowest reasonable cost of manufacturers, large and small, 

throughout the Industry and (subject to change by the Board) shall 

be used as the minimum processing cost by all members of the 

Industry, subject to the approval of the Administrator." 
6 

AMENDMENT 9. Section 16 of Schedule A is amended to read as 

follows: 

"Cement and/or Lime Bound Water Mixed Paints in the following sizes only: 5 and 10 lb. containers, 25, 50 and 100 lb. containers, 

barrels of 300 lbs. net, or more." 

AMENDMENT 10. Article XXV is added, which reads as follows: 

"ARTICLE XXV-PUTTY DIVISION 

"All provisions of this Code not in conflict with the provisions 

of Schedule B attached hereto and made a part hereof shall apply 

to the Putty Division as defined herein. 

" SECTION 1. Definitions: The term 'Putty Division ' of the Paint, 

Varnish and Lacquer Manufacturing Industry as used herein shall 

be construed to include all manufacturers of putty and/or plastic 

substitutes therefor used for the purpose of glazing and for such 

other purposes where putty is ordinarily used. 

SECTION 2. Putty Advisory Committee: There shall be a committee 

of five members from the Putty Division of the Association: 2 from 

the Eastern states; 1 from the states in or west of the Rocky Mountains; and 2 from the remaining states; who shall be nominated and 

elected by the members at large of the Putty Division and submitted 

to the Paint Industry Recovery Board for approval. 

"It shall be the duty of this committee to advise with the Paint 

Industry Recovery Board, as may be necessary from time to time, 

provided that the functions of this committee shall be entirely of an 

advisory nature and not binding upon the Paint Industry Recovery 

Board or its representatives. 

" SECTION 3. Fair Trade Practices: It shall be a violation of this 

Code for any member of the Putty Division to fail to abide by the 

Fair Trade Practices set forth in Schedule B attached hereto." 

Al\fENDMENT 11. Schedule B, Fair Trade Practices, is added, which 

reads as follows : 

" ScHEDULE B-F AIR TRADE PRACTICES 

"1. Manufacturing Restrictions: Putty, except for export trade, 

shall not be manufactured for the purpose of marketing as Trade 

Sales goods in packages other than the following: 1 lb. cans-5 lb. 

cans-12¥2 lb. pails-16 lb. pails-25 lb. pails; provided that nothing 

in this Code shall prevent the sale of these products in packages 

weighing more than 25 lb. net. 

'' 2. Allowances : (a) No allowances shall be made :for the return 

of any empty package, which empty package weighs less than 60 

lb. net. 

(b) No allowance shall be made for cartag.e. 

" 3 Free Goods and Premiums : In addition to the provisions of 

Article XX, Putty Iillives shall not be given free of charge in connection with the marketing of putty. 

" 4. Standardization o:f Grades: With the exception of products 

made to order or on specifications, putty shall not be manufactured 

in a greater number of grades than herein permitted. 

" (a) W oodsash Putty may be manu:factured not to exceed: 

"(1) 5 grades composed o:f calcium carbonate; 
7 

(2) 5 grades composed of calcium carbonate and not less 

than 5% white lead. 

"(b) Factory type metal sash putty shall be manufactured in not 

more than 3 different grades. 

" (c) Casement metal sash putty shall be manufactured in not 

more than 2 grades. 

" (d) Primeless putty shall not be manufactured in more than 2 

grades. 

" 5. Conunercial grade of Putty, regardless of brand name, hall 

be the lowest quality Putty offered. 

"6. Mislabelling, Misbranding and False Advertising: In addition to the provisions of Article XII, the following are hereby 

prohibited: 

(a) Except as a part of a complete formula label the term 

" Linseed Oil " or the term " linseed " shall not be used in connection 

with the description of any putty, the vehicle portion of which is 

less than 100 percent pure Linseed Oil. 

(b) The term " Chalk ", " Chalk Whiting " or " True Chalk Whiting" shall not be used in connection with the description of any 

putty, unless the pigment portion thereof is 100 percent true Chalk 

Whiting. (But nothina in this clause is to restrict the use of the 

single word "Whiting?, so long as the material used is Calcium 

Carbonate). 

(c) The term " Pure ", singly, or with any other word or words, 

or any derivative thereof, shall not be used in connection with the 

description of Putty unless the liquid portion thereof is 100 percent 

pure Linseed Oil. 

Approved Code No. 71. Amendment No. 1. 

Registry No. 619-1-03. 

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