Registry No. 324-1-02 

NATIONAL RECOVERY ADMINISTRATION 

PROPOSED CODE OF FAIR COMPETITION 

FOR THE 

FRUIT AND VEGETABLE PACKAGE 

MANUFACTURING INDUSTRY 

AS SUBMITTED ON AUGUST 31, 1933 

WE DO OUR PART 

IAl 0---: ----

U.I. DEPOfflTORY •·-

The Code for the Fruit and Vegetable Package Manufacturing Industry 

in its present form merely reflects the proposal of the above-mentioned 

industry, and none of the provisions contained .therein are 

to be regarded as having received the approval of 

the National Recovery Administration 

as applying to this industry 

UNITED STATES I ( f 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the Superintendent of Documents, Washin2ton, D.C. rice 5 cents 

v 
S1.'BMITTED BY 

FRUIT AND VEGETABLE PACKAGE ASSOCIATION 

(II) 
RESOLVED that the suggested Code of Fair Competition for the 

Fruit and Vegetable Package Association as drafted by the manufacturers signatory to this resolution, a copy o:f which is attached 

hereto, be presented to the Emergency National Committee of the 

American Veneer Package Association at their meeting in Washington, D.C., July 24, 1933, for approval and adoption; and it is 

further 

RESOLVED that G. E. Sturtevant, ---, and --- are authorjzed and instructed to make such presentation at Washington, and 

that their decisions as to amendments, changes, and approval of a 

code for the industry as a whole shall be conclusive on the manufacturers signatory hereto; and it is further 

RESOLVED that Mr. J. F. Proctor, author of the suggested code, 

accompany the Committee as a counselor and in an advisory capacity, 

and that he may act as spokesman for the Committee and the manufacturers signatory hereto, but shall not have a vote. 

Wm. E. Asplin; The Ottawa Basket Co. (0. H. Paline); 

Growers Basket Co. (Geo. W. Cunningham); F. W. 

Harrison & Son (by F. M. H.); The Creston Basket 

& Veneer Co. (H. G. Knepp) ; The Berlin Fruit Box 

Co. (L. Wm. Bensohoten) ; The Rocky River Basket 

Co. (D. W. Wurbau) ; The Henry Prasse Co. (W. F. 

Eckert) ; H. C. Lo bis; Andover Basket Co. (A. L. 

Crum) ; Carl L . Wright (Saybrock, Ohio) ; The Jefferson Wood (No Co.); D. Marnhoret Basket Co. 

( A. Gordan) . 

(ill) 

PROPOSED CODE OF FAIR COMPETITION FOR THE FRUIT 

AND VEGETABLE PACKAGE INDUSTRY 

SUGGESTED TO THE INDUSTRY BY A GROUP OF FRUIT AND VEGETABLE PACKAGE MANUFACTURERS REPRESENTATIVE OF THE 

PRODUCTION OF FRUIT AND VEGETABLE PACKAGES IN THE 

STATE OF OHIO 

PRE.AMBLE 

The function of this industry is to produce the containers required 

to market crops of fresh and perishable fruits and vegetables in the 

several sections of the United States. 

Its operation are so entirely dependent upon weather conditions 

and frost, drought, blight, and other uncontrollable -factors affecting 

the maturing and success or failure of the various crops, which determines the quantity of production and hours o-f labor, that fixing of 

either uniform hours of labor, rates of compensation, and production 

is difficult. This code, however, is the earnest effort of the industry 

to cooperate with the President in effectuating the declared purposes 

of the National Recovery Act. 

ARTICLE I-PURPOSE 

This code is adopted for the purpose of reducing and relieving 

unemployment, to improve standards of living, and to increase the 

purchasing power o-f labor, to remove obstructions to the free flow of 

interstate commerce; to promote the organization of industry -for the 

purpose of cooperative action among trade groups as well as labor 

and management under adequate governmental sanction, to eliminate 

unfair competitive practices, and otherwise rehabilitate industry. 

This code is not designed to, nor shall it be: operated so as to promote 

monopoly, or to eliminate, suppress, or discriminate against small 

enterprises. 

ARTICLE II-DEFINITIONS 

(A) " Fruit and Vegetable Package Industry " as used herein is 

defined to include the manufacture and/or assembly of (1) Berry 

Boxes, (2) Tills, (3) Hampers, (4) Round Stave: Baskets (bushel 

baskets), (5) Climax Baskets, (6) Splint Baskets (market baskets 

a.nd/or Diamond Weave and/or Square Braid and/ or Slat Baskets), 

(7) Citrus Boxes, (8) Crates (fruit or vegetable), (9) Fruit Boxes, 

(10) Basket and Crate Material, (11) Straight-Sided Baskets, with 

wood or pa per as the base material. 

(B) "Divisions" as used herein refers to the several parts of the 

fruit and vegetable package industry, which are ( or may be) established ·and are ( or may be) defined in the " division supplemental 

codes " as provided in Article VII hereo-f. 

9446-33 (1) 
2 

(C) "Members and/or members of the industry" as used herein is 

defined to mean (1) member of the Fruit and Vegetable Package 

Association. (2) Members of the industry not members of the Association who contribute to the support of the formulation and administration of this code. 

(D) "Employer" as used herein is defined to mean every person 

promoting, or actively engaged in the manufacture and/ or assembly 

of the products of the fruit and vegetable package industry as herein 

defined. 

ARTIOLE III-FINANCIAL SUPPORT 

The memoors of the Association shall give their financial support 

by the payment of dues. Those who are members of the industry 

but not of the Association shall, for the services rendered to them 

in accordance with this code, pay such service charges as may be 

determined by the Emergency National Committee, which shall oo 

equitable and reasonable, including only -charges based upon the 

formulation and administration of this code. 

ARTICLE IV-PARTICIPATION 

Participation in this code, and any subsequent revision of or additions to the code, through membership in the Association or any of 

its affiliated subdivisions or any affiliated subdivision which subsequently may be formed, shall be open to any person, partnership, or 

corporation in the fruit and vegetable package industry who accepts 

his or its share of the cost and responsibility, as well as the benefit, 

of such participation. · 

ARTICLE V-DivrsroNs OF INDUSTRY 

(A) For the ,purpose of the administration of this code, the fruit 

and vegetable package industry shall be divided into divisions by 

type of product as set forth below. Each division shall designate or 

establish its own administrative agency or agencies. 

(B) Each division shall be independent and self-governing in 

respect to all conditions and problems relating exclusi vel;y to said 

division. 

( C) Proposals in respect to matters affecting more than one division may be initiated by any division, and shall be submitted for 

consideration to the Emergency National Committee of the Fruit 

and Vegetable Package Industry, hereinafter described, and its 

determination shall be binding upon said division and all other 

divisions affected thereby. 

(D) Divisions: 

1. Manufacturers of Berry Boxes and Tills. 

2. " "Hampers and Bushel Baskets. 

3. " "Climax Baskets. 

4. " "Diamond Weave and/or Square Braid, 

Slab and Straight Sided Baskets. 

5. :Manufacturers of Citrus Boxes, Crates, and Fruit Boxes. 

(E) Disagreements arising between members of the same or different subdivisions shall be settled by arbitration. 
3 

(F) Each of the above divisions, and any others which may sub-

. sequently be formed within the fruit and vegetable package industry, shall set up an Executive Committee for the purpose of 

administering the provisions, to consider proposals for amendments 

thereof and exceptions thereto, and otherwise to carry out within 

the division the purposes of the National Industrial Recovery Act. 

ARTICLE VI-RULES AND REGULATIONS 

(A) To effectuate the general purpose of this code, the Emergency 

National Committee is hereby authorized and directed to make such 

additional rules and regulations as may be necessary, and are empowered to enforce the provisions of this code and any amendments 

thereto which are prescribed by the National Industrial Recovery 

Act. 

(B) If a subdivision does not concur in this code or fails to perform its obligations hereunder, the Emergency National Committee, 

in conjunction with the Coordinator of the fruit and vegetable package industry, hereinafter described, is hereby empowered to adopt 

a code for the division and may provide for the administration of 

that code. 

ARTICLE VII-DIVISION REGULATIONS 

Each of the divisions and others which may subsequently be 

formed shall promptly undertake the formulation of a code of fair 

competition providing regulations and trade practice rules covering 

conditions peculiar to its division. Such codes shall conform to thi8 

code of the industry, and shall be subject to the approval of the 

Emergency National Committee. 

ARTICLE VIII-EMERGENCY NATIONAL COMMITTEE 

(A) There shall be an Emergency National Committee of the fruit 

and vegetable package industry to consist of a representative or representatives of each division, an equal number to be selected by 

each of said di visions. 

(B) The Emergency National Committee shall be the general 

planning and coordinating agency for the industry. Its members 

selected by established divisions shall be empowered by said divisions 

to act for them conclusively in respect to all matters before the committee. An agendum of all matters to be settled at any meeting of 

the Emergency National Committee shall be mailed to each member 

of said committee thirty (30) days prior to any meeting of the 

Emergency National Committee. 

(C) The Emergency National Committee may require from time 

to time, and shall be furnished, such reports as in its judgment may 

be necessary to adequately advise it of the administration and enforcement of this code, and upon complaint of interested parties, 

or upon its own initiative, shall make or cause to be made by the 

Coordinator such inquiry and investigation into the operation of 

the code as may be necessary and may designate such agents as it 

shall determine. 

(D) In the interests of expeditious administration and enforcement of this code, the Emergency National Committee shall set up 
4 

an Executive Committee composed of five members of said Emergency National Committee. The Executive Committee shall act 

for the industry in conferring with the President or his agents on 

all matters pertaining to the code and in otherwise administering its 

provisions, including cooperating with similar committees of other 

industries to the end of offering a balanced national economy. 

ARTICLE IX-CooRDIN ATOR 

There shall be a Coordinator of the Fruit and Vegetable Package 

Association elected by a majority vote of the members present at any 

regular or special meeting. The Association shall at the time of 

such election enter into a contract with such Coordinator for a period 

of two years, which contract shall provide for the compensation to 

be paid to the Coordinator and shall provide for the duties to be 

performed by, and the powers of the Coordinator. 

The Coordinator shall be the chief administrative officer of the 

Association and it shall be his general duty to promote cooperation 

among the members and to promote the activities of the Association 

to the end that the public interest, the interest of labor, and the interest of the fruit and vegetable package industry be served to the greatest possible extent. 

The Coordinator shall perform the clerical duties of the Association; shall obtain and disseminate all data and statistics provided for 

herein, and may make recommendations relative thereto; shall receive complaints against any members of the fruit and vegetable 

package industry and obtain and receive evidence relative t_o such 

complaints and shall treat such complaints as provided for herein 

a.nd shall advise the members on the proper procedure to be followed 

as outlined by the regulations, trade practice rules, and the Federal 

laws and regulations relating to the industry. 

The Coordinator shall in all of his actions be entirely impartial 

to the members and shall so conduct the administrative work so that 

the best interests of the industry be served as a whole. 

The Coordinator shall encourage new memberships in the Association and shall use his influence in obtaining, so far as is possible, 

membership in the Association of all fruit and vegetable ·package 

manufacturers. 

ARTICLE X-INDUSTRY REGULATIONS 

(Applying to all divisions as distinct from Division Regulations 

which may differ from Division to Division.) 

SECTION 1. Labor Provisions.-(A) Each employer acknowledges 

the right of employees to organize and bargain collectively through 

representatives of their own choosing and agrees that employees shall 

be free from the interferences, restraint, or coercion· of employers of 

labor, or their agents, in 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) Each employer agrees that no employee or no one seeking 

employment shall be required as a condition of employment, to join 

a.ny union or refrain from joining, organizing, or assisting a labor 

organization of his own choosing. 
5 

(C) Each employer agrees to comply with the maximum hours of 

labor, minimum rates of pay, and other conditions of employment, 

approved or prescribed by the President pursuant to the provisions 

of the National Recovery Act. 

(D) On and after the effective date of this code the minimum 

wage _that shall be paid by any employer to any of its employees 

and/ or labor, except learners, during a thirty (30) day apprenticeship, and outside employees shall be as shown in schedule A attached 

hereto and made specifically a part hereof. 

(E) On and after the effective date of this code no employer shall 

operate on a schedule of hours of labor for their employees-except 

repair-shop crews, engineers, firemen, office, supervisory staff, shipping, watching, and outside crews in excess of the maximum hours 

as shown on schedule B attached hereto and specifically a part 

hereof. 

(F) On and after the effective date of this code no employer shall 

pay any employee a lesser wage than that established in schedule A 

of this article regardless of whether the employee's compensation is 

otherwis~ based on a time rate or upon a piecework performance. 

9446---33-2 
SCHEDULE A 

MINIMUM WAGES OF LABOR UNDER ARTICLE X, COD'E OF FAIR 

COMPETITION FOR THE FRUIT AND VEGETABLE PACKAGE 

INDUSTRY 

Persons under sixteen ( 16) years of age shall not be employed in any factory 

or assembly plant. 

Minimum rates of pay for workers on piecework or on contract basis shall be 

equal in fact to the minimum hourly and weekly rates of this schedule. 

Unskilled Labor-Southern Sections.-Thirty cents ($.30) per hour, or twelve 

dollars ( $12,.00) per week for a forty ( 40) hour week or fourteen dollars and 

forty cents ($14.40) for a forty-eight (48) hour week. 

Unskilled Labor-Northern Sections.-32:.5 cents per hour, or thirteen dollars 

( $13.00) per week for a forty ( 40) hour week or fifteen dollars and sixty cents 

( $15.60) for a forty-eight ( 48) hour week. 

Engineers-Mechanics, Lathe Operators, and Supervis'ory Staff-Southern 

Sections.-37.5 cents pe1· hour, or :fifteen dollars ($15.00) per week for a forty 

(40) hour week or eighteen dollars ($18.00) per week for a forty-eight (48) 

hour week. 

Engi,neers-Mechanics, Lathe Operators, and Supervisory Staff-Northern 

Sections.--40 cents per hour, or sixteen dollars ($16.00) per week for a forty 

( 40) hour week or nineteen dollars and twenty cents ( $19.20) for a forty-eight 

( 48) hour week. 

Firemen---Bouthern Sections.-32.5 cents per hour, or thirteen dollars ($13.00) 

per week for a forty ( 40) hour week or :fifteen dollars and sixty cents ( $15.60) 

for a forty-eight ( 48) hour week. 

Fireme11r-Northern Sections.-34.5 cents per hour, or thirteen dollars and 

eighty cents ( $13.80) per week for a forty ( 40) hour week or sixteen dollars 

and :fifty-six cents ( $16.56) for a forty-eight ( 48) hour week. 

Oleri-;al or Office Workers~South.ern Sectionsi.-Fourteen dollars ($14.00) per 

week for a forty-eight ( 48) hour week. 

Clerical or Office Workers-Northern Sections.-Fifteen dollars ($15.00) per 

week for a forty-eight ( 48) hour week. 

(6) 
SCHEDULE B 

MAXIMUM HOURS OF EMPLOYMENT OF LABOR, UNDER ARTICLE X, 

CODE OF FAIR COMPETITION FOR THE FRUIT AND VEGETABLE 

PACKAGE INDUSTRY, SUBJECT TO THE FOLLOWING EXCEPTIONS 

1. Execu,, tives, ffapervisory Stotts, Shipping Crews, Office Worker's, Engfoieers, 

Firemen, and R epair Crews.-(A) In ofar a i prn<:tical, the maximum hours 

of labor per person shall be forty ( 40) hours per week. H oweYer, if in or der 

to provide for the pres ing requirements 0£ the fruit, vegetable, or other agricultural or perishable fools or industrial needs of basket and crate u ers, additional hours of labor are necessary, then the number of hours may be increased 

during the period of the emergenc. , provided that in no event shall the total 

hours of labor in any fifty-two (52) weeks' per-od exceed an average of fortyfour ( 44) hours weekly. 

SEc. 2. Cost Prov-isions.-(A) E,, ch member of the industry agrees to u e in 

his business a uniform cost-finding method. This method shall be the method 

as adopted by the Emergency National Committee after being approved by a 

committee of members of the aforesaid committee nppointed for the purpose 

of conferring with certified public accountants, who shall be employed directly by the Association. (B) Each member of the industry hall put into use in his business the 

uniform cost-finding method as adopted within ninety (90) days after the 

approval of the code by the Government. 

( C) Each member of the industry shall maintain in practice the aforesaid 

uniform cost-finding method for a period o.f t,Yo years after the date of its 

establishment, and thereafter, unless at the end of the two years the method is 

changed by a majority vote of the members of the Association. 

( D) A fair average cost, to be determined in accordance with Section 3 

of the industry regulations for the members of the industry, shall be set up 

in accordance with the aforesaid uniform cost-finding method by the certified 

public accountants establishing the aforesaid cost-finding method; and after 

its approval by the Emergency National Committee, said fair average cost, and 

no other, shall be used by each member in arriving at his selling pric:e. 

SEO. 3. Agreement Not to Sell Beiow Cost, and Definition of Oost.-(A) No 

member of the industry shall ell any of bis manufactured products and/or any 

accessory and/or part applied thereto at a price below co t as cletermined by 

the adopted uniform cost-finding metbod. Nor shall any member di:spose of 

gratis to any clistribu ti,e ag ncy, part , or accessori s used in the con t111ction of. any of his products. ·(B) The elements entering into cost shall include material, labor, factory 

overhead, interest on plant investment, selling, and administrative expenses. 

(C) The determination of a fair average cost for each product manufactured 

shall be made in accordance with paragraph D of this Section. 

(D) Each member of the industry shall submit to the accountants appointed 

a Ii t of hi products, bowing opposite each item th reon a figure representing co t of material, labor, and factory overhead accumulated through the 

medium of hi own cost method. That figure shall include intere t on plant 

investment applied on the same ba is as factory overhead; from this information average costs for each item of product of similar kinds and izes made by 

the various member will be established. 

(E) To the average co t so established a percentaO'e shall be adcled, providing for selling and administrative expenses, which shall not include trade 

di counts. This percentage shall be determined by the Emergency National 

Committee in conjunction with the appointed accountants and shall be based 

on a fair co t to the indu try of administrative and selling expense. . The 

(7) 
8 

fina l cost of ea ·h item of product thus established .'hall be the minimum price 

for which this i tern shall be sold. 

(F) The final costs of each item of product to be used as the minimum sales 

price shall be adjusted monthly until stabilization of items of cost occur ... ( G) Any member of the industry that is not equipped with an acceptable 

method fo r determining cost, or is in the process of installing such a method, 

shall be governed by the average cost in the balance of the industry until such 

tirne as his cost method is acceptable fo r the determination of such aYerage. · SEC. 4. Method of Prioing, Discounts, a11d Term .-Attached hereto, made a 

part hereof, and marked " schedule C " is the prescribed f rm and method of 

arriving at the ultimate price t o the consumer of all the products together 

with a scale of discounts and terms. Each member of the industry agrees to 

use the said form and method, scale of discounts and t erms and no other, in 

arriving at bis list prices, discounts, and terms. 

SEc. 5. Olassifi,cation of D is tributive Agenoies.-(A) Attached hereto, made 

a part hereof, and marked "schedule D ", is a set of definitions providing fo r 

the classification of the various type of distributive agencies through which 

the industry markets its products. Each member of the industry agrees to use 

the said definitions and no others in the determination of the discounts and 

terms that any distributive agency shall be granted , ·aid discounts and terms 

to be in accordance with the scale of uniform discounts and terms as provided 

in Section 4 hereof. 

(B) In the event that a question arises regarding the qualification of a 

distributive agent for any classification, each member of the industry agrees 

to be governed by the decision of the Emergency National Committee and in 

accordance with the rules and regulations governing the arbitration of trade 

uifferences. ( C) Each member of the inclustrJ before negotiating for the busines of any 

distributive agency not classified shall request a classification from the 

Association, which classification shall be in accord with the definitions as 

her tofore outlined. 

(D) Upon application to the Association for classification of a distributive 

agency the applicant shall furnish such data as is prescribed by the Coordinator with the concurrence of the Emergency National Committee. .The Coordina tor upon receipt of an application for classification or reclas ification 

1,f a distributive agency shall make such investigations as are necessary and 

with the accumulated data place the application before the Emergency National Committee for decision. The Coordinator of the Association shall immediately notify the members of the classification or reclassification of 

distributive agencies. 

(E) No member other than the applying member or members shall sell, 

contract with, or negotiate with a prospective agency until thirty (30) days 

aftel' notification of the said agency classification by the Association. 
SCHEDULE C 

UNDER SECTION 4, ARTICLE X, CODE OF FAIR COMPETITION FOR 

THE FRUIT AND VEGETABLE PACKAGE INDUSTRY 

{A) To determine his ultimate price to the consumer ( the definition of consumer applying as herein provided), each member of the industry shall add to 

co t, as developed by the cost-finding method mentioned in Section 3, Article X 

herein, a sufficient amount which when the greatest trade discount (as shown 

in the uniform scale of discounts herein set forth) is applied against the resulting total the net selling price shall not be less than the minimum sales price 

developed by the aforesaid cost-finding method. 

( B) The list price as established in paragraph A of this exhibit shall be the 

price that shall be quoted to the consumer. Quotations to consumers and any 

other of the various classifications of trade shall be based on the list price and 

shall be in accord with the scale of discounts and terms as herein provided and 

no other. 

{C) Discounts: Consumer ________________________________________ Net List. 

Jobber------------------------------------------ List Less 15%. 

Dealer ------------------------------------------ List Less 10%. 

Farmers Cooperative Assn. or Farm Bureau _______ List Less 5%. 

(D) Delivery terms: 

On minimum carload or over the freight may be absorbed by the 

seller. 

On minimum truckload (the minimum shall be one hundred (100) 

dozen) the freight may be absorbed by the seller. 

Less than minimum carload or truckload shall be sold F.O.B. the 

seller's plant. 

{E) The termtS of sale by all members of the industry shall allow not more 

than two percent (2%) discount for cash within ten days, and payment for 

invoices not paid within ten days shall be net. 

(F) The price list of each member of the industry shall provide that splint 

baskets shall be quoted by the dozen, till and berry baskets by the thousand 

(1,000), crates by the hundred (100) , solid cover~ by the hundred (100), 

slatted covers by the dozen, crate dividers by the piece or hundred (100), 

hamper,s by the --- Climax baskets by the ---

(9) 
SCHEDULED 

UNDER SECTION 5, ARTICLE X, CODE OF FAIR COMPETITION FOR 

THE FRUIT AND VEGETABLE PACKAGE INDUSTRY, CLASSIFICATION OF DISTRIBUTIVE AGENCIES 

(A) .A consumer of fruit and vegetable packages or such other products sold 

by the fruit and vegetable package industry, is any individual, firm, or corporation that buys for his or its own use, as a receptacle for bis own grown or 

purchased produce. 

(B) A dealer in fruit and vegetable packages or such other products sold 

by the fruit and vegetable package industry is any individual, firm, or corporation that buys to sell and whose business is designed solely for the selling of 

goods to consumers and for no other use. The definition of consumer is under- stood to be as given herein. 

( C) A jobber of fruit and vegetable packages or such other products sold 

by the fruit and vegetable package industry is any individual, firm, or corporation that buys to sell and whose business is designed solely for the selling of 

goods to dealers and for no other use. The definition of dealer is understood 

to be as given herein. 

(D) An organized farm cooperative association or a farm bureau is defined 

as a group of consumers brought together for the purpose of collective buying. 

The definition of consumer is understood to be as previously outlined. 

(10) 
SCHEDULE E 

UNDER ARTICLE X, DIVISION REGULATIONS, SECTION 6, STATISTICS 

(A) Each member of the industry shall mail daily to the private agency 

selected a report of' all orders booked the previous day for future delivery, 

showing full identification of the product, quantity, and price; also complete 

details of every sale made as evidenced by a copy of the invoice; also a copy 

of all credit memos and complete information regarding all pending or subsequent rebates or adjustments in p1ice. The aforesaid agency shall check these 

records against the list prices as published by the members and the uniform 

scale of discounts and terms as approved by the Association and in accordance 

with the various classifications of distributive agencies as approved by the 

Association. 

( B) Each member of the industry shall mail the aforesaid agency, within 

ten (10) days after the first of each month, a report of the previous month's 

total sales of each product sold, the total amount of all invoices for each product, the total production of each product, and inventory of the finished stock 

of each product on hand, and unfilled orders on hand ; all in accordance with 

the various classifications of products as approved by the Association and on 

standard forms as are furnished. 

(C) Each member shall mail the aforesaid agency within ten (10) days 

after the first of each month a report of the previous month's ratio of production to production capacity and a report showing costs of production (including hours of labor, number of employees, rates of pay) in detail on standard 

forms furnished for the purpose in accordance with the uniform methods as 

approved by the Association. 

(D) Each member of the industry shall furnish the aforesaid agency and 

the Coordinator of the Association, within ten (10) days after Governmental 

approval of the code, a copy of his current price list and catalog showing a 

complete description and price of every product manufactured for sale and the 

date of their effectiveness. No member of the industry shall publish and/or 

distribute to the trade any price li t other than of the type and method of pricing than is approved by the Association, and until after seven (7) day notice, 

accompanied by exhibits, to the Coordinator and the aforesaid agency. 

( E) The aforesaid agency shall check the daily reports of sales of each 

member against his published list price as furnished the aforesaid agency and 

the Coordinator and against the classifications of distributive agencies, scale of 

discounts, and terms as approved by the Association. 

( F) . The aforesaid agency shall chart and tabulate the monthly records of 

production, ratio of production to production capacity, costs, and records as 

covered in paragraph B and/or C of this schedule and such other statistic as 

may be advantageou ly used in the elimination of waste in production and 

distribution, and mail monthly to the administrative officer' of the A sociation 

a compilation of such figure , omitting in every instance the identity of the 

various members contributing the data. 

( G) The identity of the contributor of any and all data as represented 

by copies of invoices, credit memoranda, or any other figure re1 ortecl as provided in paragraphs A, B, and C of this schedule shall be held by the aforesaid agency as confidential and shall not be revealed to any other member 

or used by the aforesaid agency for any other purpose than that outlined in 

paragraphs E and/or F of this Article, except in such individual instances as 

the reports give eYiclence of violation of the regulations and/or trade practices, and then only if it be nece ~ary to the enforcement of the adherence to 

the regulations, ethics, and/or codes, or the treatment of violations, except 

that this data shall be available to the President or his agent to effectuate 

the purposes of the National Industrial Recovery Act. 

( 11) 
12 

SEC. 6. Statistios.-(A) To proYide the knowledge necessary for the intelligent, economical, and profitable operation of business, an accurate basis for 

control of production, the data necessary for the administering and enforcement of tne provisions of this code and the data necessary to adequately advise 

the PresTdent of 'the extent of observance of the provisions of this code and 

of the extent to which the declared policy of t11e National Industrial Recovery 

Act as stated herein is being effectuated, each member of the industry shall 

make such reports as shown in Schedule E attached hereto and specifically 

made a part hereof. 

(B) Except as otherwise provided in the National Industrial Recovery Act, 

all statistical data filed in accordance with Schedule E shall be confidential 

and the data of one employer shall not be revealed to any other employer 

except for the purpo ·e of enforcing the provisions of this code. 

( 0) To provide that the confidential data of one employer shall not be 

reYealed to any other employer, all reports and statistics shall be collected, 

compiled, and disseminated by a disinterested priYate agency separate from 

the Association or its offices, such as a firm of certified public accountants 

whose ethics regarding the re,ealing of confidential information are the 

strictest and are backed by precedence. 

SEc. 7. Enforcement and Treatniernt of Oode.-(A) This code, on its effective 

date shall constitute the standards by which each member of the industry hall 

conduct his business. 

(B) In the vent of violation of any regulation or trade prnctice rule or any 

part of the code, a r eport shall be sent to the Coordinator by any interested 

party. The Coordinator shall immediately advi. e the Admini.·trative Officer of 

the division in which the violation occurred: who shall immediately institute an 

investigation and r eport his findings to the Executive Committee of his division. · ( O) In the event the original complaint or any other violation be substantiated, the Division Executive Committee, if it be a divisional matter, or the 

Executive Committee of the Emergency National Committee if it be a matter 

between Divisions, shall proceed in accordance with the provisions set forth in 

paragraph G of this Section 7. 

(D) In the event that any of the daily or monthly reports, as provided in 

Schedule E, of any employer of the industry indicate to the agency (provided 

for in Section 6) violations of this code, the aforesaid agency shall request a 

certification of that report. The employer shall r espond to said r equest within 

three ( 3) days after r eceipt of such request. Should the certified r eport substantiate a violation, the aforesaid agency shall immediately notify the Coordinator who will proceed in accordance with parao-raph B of this Section. 

(E) The information required to be furnished the A.·sociation through the 

aforesaid agency in the form of daily reports and monthly reports for checking 

compilation and distribution by the Association mu t be authentic and accepted 

as such by the members of the industry. To attain the highe t degr e of 

accuracy the Association may assume that the member or members who are the 

original source of information has furnished a true, full, and accurate di clo nre 

of every fact essential to a complete understanding of the matter which the 

information purports to have covered. Owing to the relations of mutual onfidence and trust involved herein, the peculiar circumstances connected with tl1e 

subject matter her eof and the importance to all persons connected herewith 

that information be correct each member agree that in the event any part of 

the information which the member hall hereafter tran mit to the Association 

for checking purposes and for distribution as herein outlined hall be erroneou , the member shall pay to its Division a sum of not less than fifty dollars ( $50.00) 

and not greater than five hundred dollars ($500.00) in each in tance. Thi~ provision shall likewise apply to every intentional omi sion by the memb r to 

furnish the required information in Schedule E. Such sum as shall be paid is 

hereby agreed to equal the damao-es actually caused by uch erroneous information or the withholding of information and such damages are now liquidated at 

that amount and shall in no sense be deemed a penalty. 

(F) Any violation of any part of the code and/or trade practice rule shall 

be deemed to have endano-ered the economic stability of the industry, its employees and all persons connected with it, damaged the Association nnd its 

members and to be against the public intere t. Owing to the relations of 

mutual confidence and trust herein, the peculiar circum tances connected with 

the industry that the code and/or trade practice rule be adhered to, each 

member agrees that in the event it violates the said code and/or trade practice rul , , he shall pay to its Divi ion, exc pt in ca~ of a Yiolation r forrecl to 

in paragraph E of this Section, a sum of not le than five hundred dollars 
13 

($500.00) and not greater than five thousand dollars ($5,000.00) in each 

instance. Such sum as shall be paid is hereby agreed to equal the damages 

actually caused by such violation and such damages as are assessed under paragraph G hereof, are now liquidated at that amount and shall, in no sense, be 

deemed a penalty. 

( G) The sum necessary to liquidate damages mentioned in paragraph E 

and/or F of this Section and the method and terms of payment thereof shall 

be fixed by the Division Executive Committee in accordance with paragraph E 

and/or F of this Section. Upon its decision the Division Executive Committee 

shall render such decision, in writing, to the Division Administrative Officer 

who shall, officially and in writing, notify the offending member and call for 

payment in accordance with the said decision. 

(H) Each member of the industry or Division shall be afforded a fair and 

impartial opportunity to be heard and to produce evidence in its behalf before 

the Executive Committee or its agent or repre entative or the Arbitration 

Board. 

(I) No member of the industry shall be deprived of the privilege of appealing the question of any violation or the damage assessed therefor, through the 

Division Administrative Officer or the Coordinator of the Association, to a 

board of arbitration, which each member agrees to be bound by and whose decision shall be conclusive on the member. Said board of arbitration shall be 

made up of one (1) member of the Division or Association to be chosen by 

the appealing member, one (1) member of the Division or Association to be 

chosen by the Executive Committee (which member shall not be a member of 

the Executive Committee or Emergency National Committee) and the Division 

Administrative Officer if it be a Division matter or the Coordinator of the 

Association if it be a matter between Divisions. The deci ion of the board of 

arbitration shall be rendered in w1iting to the Division Administrative Officer 

or Coordinator and he shall immediately forward a written copy of the decision 

to the appealing member. 

(J) The provisions for arbitration set forth in paragraph I herein shall be 

exclusive and shall bar any proceeding at law or in equity in any court of 

any jurisdiction by any member of the industry and by the Association or any 

Division thereof, except that the Association or any Divi~ion thereof shall not 

be barred thereby from proceeding in equity or in any court of competent jurisdiction to compel complianc ,Yith code and/ or trade practice rule , nor shall 

any member or the A sociation or Divi ion thereof be barred from any proceeding at law or equity to compel arbitration hereunder. 

(K) The Association or any Division thereof may by it agent , employees, 

and accountants have access to and may examine from time to time the books, 

r ecords, papers, and files of each member in ord r to certify, compare, and 

procure the information required to be given and the facts required to be 

divulged by each member of the industry. The A ociation or any Division 

thereof may, under such regulations as its Coordinator shall prescribe, subject 

to the approval of the Association Executive Committee, which each member 

of the industry agrees to be bound by, cause its agents, employees, and experts 

from time to time to examine the products, shipments, factories, and warehouses of each member of the industry and its books, records, and papers to 

ascertain that each member is complying "·ith thi agreement. Each member 

of the industry hereby grants to the Association or any Division thereof such 

further visitorial powers as shall be reasonable and neces ary for the _purposes 

of this code. All reports hereunder shall be confidential and made only to the 

Coordinator of the Association or agency as provided in Section 7 herein. 

ART. XL Production.-Weather conditions, frost, drought, blight, and the 

degree of success of crops of perishable fruits and veo-etables and other uncontrollable factors enter so largely into the determination of the number of packages required as to negative rigid rules for the quantities to be produced. However, as far as is practical the operating time of the labor in any employer's 

factory or assembly plant shall not exceed two (2) shifts of forty ( 40) hours 

a week. However, if in order to provide for the emergency needs of the 

perishable food growers, additional operating time is necessary, then the number of hours may be increased during the emergency to two (2) shifts of fortyeight ( 48) hours per week. 

ART. XII. Trade Practice Ruleis.--Rule 1: The making or circulating in any 

manner of false or deceptive statements concerning the financial standing, 

business methods, policies, or products of a competitor is an unfair method of 

competition. 
14 

Rule 2: Obtaining information from a competitor in relation to his business . ' product, or relations with the trade by any impersonation or by any false or 

misleading statement, or misrepresentation, or by any form of espionage, is an 

unfair method of competition. 

Rule 3: The selling of goods below cost with the intent or with the effect of 

injuring a competitor, and where the effect may tend to create a monopoly or 

to unreasonably restrain trade, is an unfair method of competition. Cost is 

defined as including all cost to the time of the delivery to the buyer, and includes material, labor, and overhead, as well as all charges, such as interest, 

alesmen's commission, depreciation, depletion, and all reserves which may 

lawfully be set up on the books of the company. 

Rule 4: The secret giving or offering to give, directly or indirectly, without 

other consideration therefor, money or anything of value to agents, employees 

or representatives of customers or prospective customers, without the knowledge or consent of their employers, as an inducement to cause their employers 

to purchase or to contract for the purchase of fruit and Yegetable package 

products from the maker of such gift or offer, or his agents, or to influence 

such employers to refrain from dealing or contracting to deal with competitors 

is an unfair method of competition. 

Rule 5: It is an unfair method of competition for any person engaged in the 

fruit and vegetable package industry to either directly or indirectly discriminate in price between different purchasers of fruit and vegetable package 

products where the purpose or effect of such discrimination may tend to create 

a monopoly or to permit unfair methods of competition, provided that nothing 

herein contained shall prevent disc1imination in price between purchasers of 

the same classes on account of the differences in the grade, quantity, or quality 

of fruit and vegetable package products sold, or that makes only due allowance 

for difference in the co t of selling or different commodities, made in good 

faith to meet competition, and provided further that nothing herein contained 

shall prevent persons engaged in the fruit and Yegetable package industry from 

selecting their own customers in bona fide transactions and not in restraint of 

trade. 

Rule 6: Any willful attempt to induce a breach of any existing bona fide 

contract or any wilful attempt to prevent the performance of any contractural 

duty under any bona fide contract for the sale or purchase of fruit and vegetable packages or an allied product is an unfair method of competition. 

Rule 7 : The making or branding of fruit and vegetable packages or any 

allied product or any misrepresentation in connection with the sale of such 

materials for the purpose or with the effect of misleading or deceiving purchasers with respect to the quantity, quality, grade, substance, origin, is an 

unfair method of competition. 

Rule 8: The payment or allowance of secret rebates, refunds, credits, unearned discounts, whether in the form of money, or gifts or otherwise, the 

acceptance of securities at more than true market value or otherwise, as a 

means of effecting or concealing price discrimination, or extending to certain 

purchasers special services or privileges, including discriminatory allowance 

for goods of the purchaser or for services, not extended to all purchasers under 

like terms and conditions, with the intent or with the effect of injuring a 

competitor, or where the effect may be to substantially lessen competition or 

tend to create a monopoly or to unreasonably restrain trade, is an unfair 

method of competition. 

Rule 9: Any statement, written or oral, or any act constituting a false disparagement of the measure, substance, strength, and grade or quality of a 

competitor's goods or deceptive tests or any statement, written or oral, or any 

act constituting a false statement as to the price a competitor is quoting is an 

unfair method of competition. 

Rule 10: Where a member of the industry has a contract with a customer 

for a certain period of time and because of rumors or statements the member 

feels that he might lose his position of favor with bi customer and that he 

might not be able to do business with the customer after the contract expires, 

he shall not change the terms of the contract to prejudice himself or the other 

members of the industry until such time as be has given the other members 

of the industry an opportunity to advise him as to• the true state of affairs, in order that no buyer shall play one member of the industry against the other 

and thu promote unfair methods of competition. 

Rule 11: The making of false reports of capacity, production, ales orders, 

or shipments is an unfair method of competition. 
15 

Rule 12: Interference with a competitor by enticing employees from his 

employment is an unfair method of competition. Rule 13: The shipment or delivery of fruit and vegetable package ~roducts 

which does not reasonably conform to the standard of sampl~s submitted or 

representations made prior to securing of the order, ~nless with_ the consent 

of the purchaser to a substitution prior to shipment, is an unfair method of 

competition. Rule 14: The entering into contracts for fruit and vegetable packages or 

allied products with purchasers without actual obligations on the part of the 

purchaser for a specified quantity or quality and/or merely for the purpose 

of securing to the buyer a special price which in effect discriminates between 

purchasers, and tends to unreasonably restrain trade, and injure competitors 

is condemned as an unfair method of competition. 

Rule 15: Contracts of sale which permit the buyer to cancel or provide for 

a reduced price in the event of a market decline and which do not permit the 

seller to cancel or provide for an enhanced price in the event of a market 

rise, are lacking in mutuality and are against the public interest, and the use 

of such contracts is condemned as an unfair method of competition. 

Rule 16: The making of allowances for trucking or hauling to any purchaser 

or to any carrier owned or controlled by a purchaser is an unfair method of 

competition. 

Rule 17: The selling or offering for sale fruit and vegetable package products 

to jobbers or other distributive agencies who resell or offer for resale fruit 

and vegetable package products at less than the minimum prices as determined 

by the Association is an unfair method of competition. 

Rule 18: The granting of trade discounts to brokers or other commission 

salesmen or agents not properly classified as distributive agencies is an unfair 

method of competition. 

Rule 19: The consignment of fruit and vegetnble package products or the 

renting of space in a distributor's warehouse is an unfair method of competition. 

Rule 20: The violation of any of the provisions of this code by any employer 

or of any approved rule issued thereunder is an unfair method of competition. 

ART. XIII. General.-1. This code or any of its provisions may be canceled 

or modified and [lny approYed rule issued thereunder shall be declared ineffective by a majority vote taken at a meeting of a majority in person or by 

vroxy of the subscribers hereto called and convened after ten days' notice of 

the time, place, and purpose thereof mailed to each subscriber l1ereto by the 

~ecretary of the American Veneer Package Association to the extent necessary 

to conform to any action by the President under section 9 (b) of the National 

Industrial Recovery Act. 

2. The Emergency National Committee of the Veneer Fruit and Vegetable 

Package Industry and the Coordinator shall from time to time make to each 

Division est.a blished or to be established under the provisions of this code. such 

recommendations, including amendments of the code, as in their judgment will 

aid the effective administration of the code, or may be necessary to effectuate 

within the Veneer Fruit and Vegetable Package Industry or within any 

Division thereof the purpose of the National Industrial Recovery Act as 

administered. 

3. Amendment to this code may be proposed by any established Division to 

the Emergency National Committee or may be initiated by it or the Coordinator, 

and when approved by the President shall be effective. 

4. Violation by any producer of the Veneer Fruit and Vegetable Package 

Industry products of any provisions of this code or of any approved rule 

issued thereunder, is an unfair method of competition. 

5. In order to avoid undue delay in making effective throughout the Veneer 

Fruit and Vegetable Package Industry this code of fair competition, the 

following provision is adopted and other provisions of the code in conflict 

therewith are suspended until such time as the Emergency National Committee 

shall determine that the purposes of the Article have been accomplished: 

a. Each established Division shall submit as promptly as possible to the 

Emergency National Committee, a complete code in conformity with the general provisions of this code. Such code, if found substantially to promote the 

purposes of the national code, shall be accepted provisionally by the Emergency National Committee. The Emergency National Committee and the Coordinator shall thereupon proceed as rapidly as practicable to make such 

adjustments of and coordination between the provisions in respect of hours, 
16 1111111111m~1i1~1i1'1ill11m1ij~ ~1il '1llm111 111111 

3 1262 08585 2829 

wages, and production of several divisional codes as may be necessary to bring 

them into conformity with the provisions of the national code by1. Consultation and negotiation between the Divisions affected. 

2. Their own findings after full consideration of all factors involved. 

If any provision of this code is declared invalid or unenforceable, the remaining provisions shall, nevertheless, continue in full force and effect the 

same as if they had been separately presented for approval and approved by 

the President. 

ART. XIV. Ef{ectvve Date.-This code and amendments thereto shall be in 

effect beginning ten days after its approval by the President. 

0