Approved Code No. 305 Registry No. 311-03

NATIONAL RECOVERY ADMINISTRATION

CODE OF FAIR COMPETITION

FOR THE

FIBRE CAN AND TUBE

INDUSTRY

AS APPROVED ON FEBRUARY 24, 1934

MEMBER

WE DO OUR PART

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

Foreign and Domestic Commerce.

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Seattle, Wash.: 809 Federal Office Building.
Approved Code No. 305

CODE OF FAIR COMPETITION

FOR THE

FIBRE CAN AND TUBE INDUSTRY

As Approved on February 24, 1934

ORDER

APPROvING CODE OF FAIR COMPETITION FOR THE FIBRE CAN AND

TUBE 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 a Code of

Fair Competition for the Fibre Can and Tube Industry, and hearings 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 behalf 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 purposes 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 the provisions of Article VI, Sections 2 to 9 inclusive,

insofar as they prescribe a waiting period between the filing with

the Code Authority (i.e. actual receipt by the Code Authority) and

the effective date of revised price lists or revised terms and conditions of sale be and they are hereby stayed pending my further

order; provided further, that within ninety days I may direct that

there be a further hearing on such of the provisions of said 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.

HUGH S. JOHNSON,

Administrator for Industrial Recovery.

Approval recommended:

GEO. L. BERRY,

Division Administrator.

WASHINGTON, D.C., Febmrary 24, 1934.

42207*-376-129-34 (285)
REPORT TO THE PRESIDENT

The PRESIDENT,

Tie White IHouse.

SiR: This is a report of the hearing on the Code of Fair Competitioni for the Fibre Can and Tube Industry, conducted in Washington

on December 2. 1933, in accordance with the provisions of Title I

of the National Induistial Recovery Act.

HOURS AND WAGES

The Code provides a standard 40 hour week for factory workers.

Members of the Industry may adopt a standard work day for factory

emnploy ees of either eight or ten hours; overtime to be paid for all

hours worked in excess of forty hours per week. The usual exceptionis are made in regard to nhon-productive employees. Office employees are limited to an average of 40 hours per week over an eight Week period.

The minin un. wvage rate in the North for hourly paid employees

is 321%# per hour. In the South the minimum wage rate for hourly

paid employees is 30v per hour. Office employees will receive a

minimum wage of $15.00 per week in the North and $14.00 per week

in the South.

OPEN PRICE PLAN

An open price plan of selling is provided and selling below cost,

except to meet competition, is prohibited.

OTHER PROVISIONS

Provision is made for furnishing the Adininistrator with such

statistical data as lie may require.

ECONOMIC EFFECT OF THE CODE

The Industry employed in 1929 approximately 3,200 persons and

2.900 persons in 1933. The effect of the Code will be to employ between 550 and 600 additional workers.

The increase in the total payrolls of the Industry as a result of

the Code will be about 157c.

FINDINGS

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

having found as ihereiii set forth. and oti the basis of all the proceedinigs in this nmatt r

I find that:

(a) Said Code I., well de--ignid to promote the policies and purposes of Title I of d)e National I dustrial Recovery Act. including
2s7

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 inidustry for the purpose of cooperative action among the trade groups, by

inducing aidmaiutaining united action of labor and management

under adequate governmental sanction and supervision, by eliminating unfair competitive practices, by proniot ing the fullest possible

utilization of the present productive capacity of industries, by a voiding undue restrictions of production (except as may be temporarily

required), by increasing the consumption of industrial amli agricultural products through increasing purchasing power, by redliucinr

and relieving unemployment, by improving standards of labor, an

by otherwise rehabilitating industry.

(b) Said Industry normally employs not more than 5,Q0i employees and is not classified by me as a major industry. (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 (b) of Section 10 thereof; and that the applicant Association

is an industrial Association truly representative of the aforesaid Industry; 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,

HUGH S. JOHNSON,

Administrator.

FEBRUARY 24, 1934.
CODE OF FAIR COMPETITION FOR THE FIBRE CAN

AND TUBE INDUSTRY

To effectuate the policies of Title I of the National Industrial

Recovery Act, the following is hereby established as a Code of Fair

Coinmpetition for the above named Industry and shall be binding on

every member thereof.

ARTICLE I-DEFINITIONS

The following words are used in this Code with the meaning herein set forth:

Industry "-The business of manufacturing cans of various

shapes from paper, fibre and/or similar materials; cans consisting of

a combination of metal, fibre, paper and/or similar materials and

tubes, cores, spools and reels for a multiplicity of purposes made of

these same materials, whether such cans, tubes, cores, spools and reels

are for use and consumption by maker, or are for sale, or are used in

connection with and incidental to the major and prime business of

maker.

" Member "-A natural person partnership, corporation, association, trust., trustee, trustee in bankruptcy, receiver, or other form of

enterprise, engaged in such Industry.

" Act "-Title I of the National Industrial Recovery Act.

"Administrator"'-The Administrator for Industrial Recovery

under Title I in the Act.

ARTICLE II-ORGANIZATION ANT) ADMINISTRATION

SECTION 1. There shall forthwith be constituted a Code Authority

of the Fibre Can and Tube Industry which shall comprise six (6)

members of the Industry. Five (5) of such members shall be elected

by the Board of Directors of the National Fibre Can and Tube Association. The five (5) members so elected shall elect a sixth memher from among the members of the Industry. At least two of the

Six members so elected to the Code Authority shall be engaged in

the manufacture of tubes and cones for winding textile yarns. In

addition to the six (6) members so elected the Administrator may

designate from one to three persons to serve on the Code Authority

without vote and without compensation from the Industry.

SEC'i'moN 2. The Association shall impose no inequitable restrictions on membership and shall file with the Administrator certified

copies of alny amendmen it s By-Laws relating to eligibility or

admission to nenbership in the Association. or relating to the

method of selection of the numbers of the Board of Directors which

the Association niay hereafter adopt.

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

be truly representative of the Industry, the Admiiiinistrator may

(288)
289

prescribe such hearings as he may deeim proper, and thereafter if

he shall find the Code Authority is not truly representative of the

Industry, he may require ain appropriate modification of the method

of selection of the Code Authority.

SECTION 4. The Code Authority is charged generally with the duty

of administering this Code. It shall have power to investigate

alleged violations of this Code and acts or courses of conduct by any

member which are or appear to be contrary to the policy of the i Act,

or which tend or may tend to render ineffective this Code. 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 the Code Authority or

agency pending final action which shall not be effective unless th

Administrator approves or unless lie shall fail to disapprove after

thirty (30) days notice to him of intention to proceed with such

actioii in its original or modified form.

SECTION 5. The expense of administering this Code shall be borne

pro rata, in accordance with a formula to be adopted by the Code

Authority, by all members of the Industry who accept the benefit of

the services of the Code Authority or otherwise assent to this Code.

SECTION 6. The Code Authority is hereby constituted the agency

to endeavor to effect, by arbitral proceedings or otherwise, adjustmnents of contracts entered into by members of the Industry, where

the costs of executing such contracts are increased through the application of the provisions of the Act or of this Code.

SECTION 7. 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 way to any one

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

Code Authority; nor shall any member of the Code Authority be

liable to anyone for any action or omission to act under the Code,

except for his own wilful misfeasance or non-feasance.

ARTICLE III-HOURS OF LABOR

SEcrIoN 1. Employees in the Industry shall not be required or

permitted to work hours in excess of the limits prescribed in the

following schedule except as hereinafter provided:

SCHEDULE OF WORKING HOURS

(a) Watchmen: Fifty-six (56) hours in any one week.

(b) Chauffeurs, truckdrivers and their helpers: Nine (9) hours

in any one day, or forty-five (45) hours in any one week.

(c) Engineers, firemen, electricians, filter plant employees, electric

and hydro-electric operators: Nine (9) hours in any one day, or

forty-two (42) hours in any one week.

(d) All other laborers, mechanical workers or artisans employed

in any plant, mill or factory or on work connected with the operation of such plant, mill or factory: Eight (8) hours in any one day

and forty (40) hours in any one week. Any member may elect to

adopt a standard work of ten (10) hours by filing notice of such
290

election with the Code Authority on or before thirty (30) days after

the effective (late of this Code, and may not thereafter revert to a

standard eight (8) hour day for a period of at least one year from

such date. When any member has elected to adopt the ten (10)

hour day, all time worked by such of his employees, as are included

within the meaning of this paragraph. in excess of forty (40) hours

in any oic week, or on the fifth or following day in any calendar

week shall be paid for as overtime in accordance with the provisions

of Section 2 of this Article.

(e) Employees engaged in a managerial or executive capacity, foremen and supervisors, receiving $35.00 or more per week, their

personal secretaries, and outside salesmen: No limitation.

(f) All other employees: Forty-eight (48) hours in any one week

but not to exceed three hundred twenty (320) hours in any period of

eight (8) consecutive weeks.

SETIoN 2. The limitations provided in the above schedule may be

exceeded for any reason at any time provided that all time worked

in excess of the maximums shall be paid for at the rate of time and

one-third for all hours above the maximuims up to and including

forty-eight (48) hours per week, and at the rate of time and one-half

for all hours above forty-eight (48) hours per week.

SEcTION 3. No employer shall knowingly permit any employee to

work for any time, which, when totalled with that already performed with another employer or employers in this Industry, exceeds

the mnaxiniun number of hours permitted in the schedule set forth in

this Article.

ARTICLE IV-WAGES

SECTION 1. The minimum rate of wage of any employee, other than

office or clerical employees, employed in any plant, mill or factory,

or on work connected with or incidental to the operation of such

plant. miill or factory shall be as follows:

(a) In the Northern zone, which shall consist of all of the territory

of the United States except the States named in subdivision (b)

hereof : 321 per hour.

(b) In the Southern zone, which shall consist of the States of

Virginia, Tennessee, North Carolina, South Carolina, G'eorgia,

Florida, Alabana, Mississippi, Louisiana, Arkansas and Texas: 300

per hour.

SECTION 2. The minimum rate of wage of any office or clerical

emnployee shall be as follows:

(a) In the Northern zone, as defined in Section 1 hereof, $15.00

per week.

(b) In the Southern zone, as defined in the said Section, $14.00

per week.

(c) Part-fime employees covered by the provisions of this Section

shall be paid at the rate of not less than 371%.' per hour in the

Northern zone, and 3.5 per hour in the Southern zone.

SECTION 3. This Article establishes a 116iu1m rate of pay which

shall apply irrespective of whether an employee is actually compensated on time-rate, piece-work or other basis.

SECTION 4. Female employees. performing substantially the same

work as male employees, shall receive the same rate of pay as male
291

employees. The Code Authority shall within ninety (90) days after

the effective date of this Code file with the Administrator a desCri ption of all occupations in the Industry in which both men and

women are employed.

SECTION 5. The wage rates of all employees receiving more than

the minimum rates herein pre-cribed shall be reviewed and such

adjustments, if any. made therein as are equitable in the light of all

the circumstances, and within sixty (60) days after the effective

date hereof, the Code Authority shall report to the Administrator

the action taken by all members of the Industry under this Section.

SECTION 6. A person whose earning capacity is limited because. of

age or physical or mental handicap may be employed on light work

at a wage of not less than 80% of the minimum prescribed by this

Code, provided the State Authority or other agency designated by

the United States Department of Labor shall have issued a certificate authorizing his employment on such basis. Each member shall

file with the Code Authority a list of all such persons employed by

him. The provision of this Section requiring a certificate of authority shall not become effective until sixty (lays after the effective (late

of this Code.

ARTICLE V-GENERAL LABOR PROVISIONS

SECTION 1. No person under sixteen (16) years of age shall be

employed in the Industry. No person under eighteen (18) years of

age shall be employed at operations or occupations which are hazardous in nature or dangerous to health. The Code Authority shall

submit to the Administrator within sixty (60) days after the effective

date of this Code a list of such operations or occupations. In any

State an employer shall be deemed to have complied with this provision as to age if he shall have on file a certificate or permit duly

signed by the authority in such State empowered to issue employment or age certificates or permits, showing that the employee is of

the required age.

SECTION 2. 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 employers of labor, or their agents, in the designation of such representatives or in self-organization or in other concerted activities for the

pIurpose of collective bargaining or other mutual aid or protection.

o employee and no one seeking employment shall be required as a

condition of employment to join any company union or to refrain

from joining, organizing, or assisting a labor organization of his own

choosing. Employers shall comply with the maximum hours of labor. minimum rates of pay anl other conditions of employment, approved or prescribed by the President.

SECTION 3. No provision in this Code shall supersede any State or

Federal law which imposes on employers more stringent requirements as to age of employees, wages, hours of work, or as to safety, health, sanitary or general working conditions or insurance or fire

protection than are imposed by this Code.

SECTION 4. No employer shall reclassify employees or duties of

occupations performed or engage in any other subterfuge for the
292

purpose of defeating the purposes or provisions of the Act or of this

Code.

SECTIoN 5. All employers ,shall post copies of Articles III, IV and

V of this Code in conspicuous places accessible to employees.

SECTION 6. Every employer shall make reasonable provisions for

the safety and health of his employees at the place and during the

hours of their employment. Standards for safety and health shall

be stubmitted by the Code Authority to the Administrator within six

(6) months after the effective date of this Code.

SECTION 7. The Code Authority shall make a study of conditions

in the Industry to determine the feasibility of the adoption of a

shorter working week and shall, within three (3) months after

the effective date of this Code, make a report of its findings to the

Administrator. The Code Authority shall also submit to the Administrator, within six (6) months after the effective date, of this

Code, a plan for the stabilization and regularization of emploviient.

SECTrIoN 8. The manufacture or partial manufacture of any produK

of the Industry in homes shall be prohibited.

ARTICLE U-ACCOUNTING-SELLING

SECTION 1. The Code Authority shall cause to be formulated an

accounting system and methods of cost finding and/or estimating

capable of use by all members of the Industry. After such system

and methods have been formulated, full details concerning them

shall be made available to all members. Thereafter all members

shall determine and/or estimate costs in accordance with the principles of such methods.

SECTION 2. The Code Authority may from time to time determine

that an open price plan of selling such product or products of the

Industry as it shall specify shall be put into effect on such date as it

shall fix. Notice of such determination shall be announced to all

known members of the Industry who manufacture such products

not less than thirty (30) days prior to the date so fixed.

SECTION 3. At least ten days prior to such date, every such

member shall file with the Code Authority a schedule of prices and

terms of sale for all such products or, in the alternative, shall be

deemed to have filed a schedule conforming in respect to price and

terms of sale with the schedule at any time on file which states the

lowest prices and the most favorable terms.

SECTION 4. All such schedules shall be in such form as the Code

Authority siall prescribe and shall contain all information necessary to permit any interested person to determine the exact net

price per unit after all discounts or other deductions have been

made, whether pertaining to a single order, a commitment for

future delivery, or a contract. All such original schedules shall

become effective on the date fixed by the Code Authority as provided

in Section 2 hereof.

SECTION 5. A revised schedule or schedules, or a new schedule or

schedules or a notice of withdrawal of a schedule previously filed,

may be filed by a member with the Code Authority at any time,

provided, however, that any member who withdraws a schedule without substituting a new schedule therefor shall be deemed to have
293

filed a schedule conforming in respect to price and terms of sale

with the schedule at any time thereafter on file which states the

lowest price and the most favorable terms. Any schedule or notice

filed hereunder shall become effective five days after the date of

filing provided, however, that an increased price may become

effective at such earlier date as the member filing the same shall fix.

SECTION 6. The Code Authority shall promptly supply all members of the Industry who manufacture any particular product with

copies of all schedules, revised schedules, and notices of withdrawals,

which pertain to such product. Immediately upon receipt of information relative to the withdrawal of a price for any product, any

member may file notice of withdrawal of his own price for the same

product effective as of the same date as the notice of withdrawal

of such other member. Immediately on receipt of information that a

schedule then on file has been revised, or that a new schedule has

been filed, any member may file a revised schedule conforming as

to price and terms to the schedule of such other member, and

effective on the same date, or he may notify the Code Authority that

he adopts as his own the schedule of such other member. In the

latter event, he shall be deemed to have filed a revised schedule conforming to the revised schedule of such other member.

SECTION 7. No such schedule of prices and terms of sale filed by

any member, or in effect at any time, shall be such as to permit the

sale of any product at less than the cost thereof to such member

determined in the manner provided in Section 11 hereof, provided, however, that any member may by notice to the Code Authority

adopt as his own a lower price filed by another designated member.

Such adoption shall become automatically void upon the withdrawal

or revision upward of the price adopted.

SECTION 8. No member who shall have filed a price, or adopted as

his own a price filed by another member for any product of the

Industry shall sell such product for less than such price or upon

terms or conditions more favorable than stated in such price schedule. No member, who shall have failed to file a price for any product for which the open price plan is in effect, shall sell such product

at a lower price or on terms more favorable than the lowest price

and most favorable terms stated in any price schedule for such

product then on file.

SECTION 9. The Code Authority shall furnish at cost to any nonmember requesting them, copies of any price schedules which have

been filed with it. Such price schedules shall be made available

to non-members at the same time that they are sent to members.1

SECTIoN 10. No member shall sell any product of the Industry for

which no open price plan is in effect at less than the cost thereof to

such member, determined as provided in Section 11 hereof, except

to meet the price of a competitor whose price does not violate such

Section.

SECTION 11. Cost, for the purposes of this Article, shall be determined pursuant to the method of cost determination prescribed, as

provided in Section 1 hereof, as soon as such method is adopted and

approved, and theretofore pursuant to the method employed by

such member subject to such preliminary rules as the Code Authority

I Se, paragraph 2 of order approving this Code.
294

shall from time to time prescribe with the approval of the Administrator. In comiputing cost either by the prescribed method herein

provided for, or prior to the tiie when such method is put into

operation, every member shall use the market price of prime materials as furnished by the leading mills making these materials. If a

member man1ifactures any of the raw or semi-fitlished materials used

in making the products of this Itidlistry, lie shall use tie market

price as described in this Section in conp)iting the cost of materials

and not his manufacturing cost.

SECTION 12. For the purpose of determining whether Sections 7

and 10 hereof have been com1nplied with, every member shall upon

the request of the Code Authority furnish a 'designated agency of

the Code Authority in respect to closed transactions only, with

complete information in regard to any quotation, order, contract,

or sale of any product of the Industry, including information as to

specifications, quantities, prices, conditions of storage, transportation

or delivery, terms of billing, cash or trade discounts allowed and

other pertinent facts relating to such quotation, contract or sale.

SECTION 13. Nothing herein contained shall be construed to prevent the disposition of distress merchandise required to be sold to

liquidate a defunct or insolvent business or of discontinued lines,

damaged goods or seconds, in such manner, at such price and on

such terms and conditions as the Code Authority may approve.

SECTION 14. Except in fulfillment of bona fide contracts existing

on the effective date of this Code, no member shall sell or offer for

sale any product of the Industry at a price less than a price arrived

at in accordance with the provisions set forth in this Article.

ARTICLE VII-REPORTS AND STATISTICS

SECTION 1. Each member shall prepare and file with an impartial agent or agents, designated by the Code Authority at ,such times

and in such manner as it may prescribe, such statistics, data and

information relating to plant capacity, volume of production, volume of sales in units and dollars, orders received, unfilled orders, stock on hand, inventory both raw and finished, number of employecs, wage rates, employee earnings, hours of work and other matters,

as the Code Authority or the Administrator may from time to time

require. Any or all information so furnished by any member shall

be subject to checking for the purpose of verification by an examination of the books, accounts and records of such member by any

disinterested accountant or accountants or other qualified person or

persons designated by the Code Authority.

SECTION 2. Except as otherwise provided in the Act, or in this

Code, all statistics, data and information filed or required in accordance with the provisions of this Code shall be confidential and

the statistics, data and information of one meniber shall not be revealed to another meuiber. No such data or information shall be

published except in com-bination with other similar data and in

such manner as to avoid the disclosure of confidential information.

The Code Authority shall arrange in such manner as it may determine for the current publication of industry statistics to members.

SECTIoN 3. The Code Authority shall make such reports to the

Administrator as he may from time to time require.
295

SECTION 4. In addition to information required to be subinitte4 to

the Code Authority there shall be furnished to Government Agencies

such statistical information as the Administrator may deem necessary for the purposes recited in Section 3 (a) of the Act. Nothing

contained in this Code shall relieve any member of any existing

obligations to furnish reports to any Government Agency.

ARTICLE III-MONOPOLIES

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

monopolies or monopolistic practices. or to eliminate, oppress or

discriminate against small enterprises.

ARTICLE IX-REco MIENDATIONS

SECTION 1. The Code Authority may, from time to time, present to

the Administrator recommendations based on conditions in the Industry which will tend to effectuate the operation of this Code and

the policy of the Act, and in particular along the following lines:

(a) For the establishment of additional rules of Fair Trade Practices for the Industry and for the modification of its Trade Customs,

and the enforcement thereof.

(b) For the establishment of plans to equalize production with

demand, so that the interests of the Industry and the public may be

properly served.

(c) For dealing with any other inequality that may arise to endanger the stability of the Industry and of production and

employment.

(d) For an increase or decrease in the number of Industry memibers of the Code Authority and/or for a change in the method of

choosing such members.

SECTION 2. For the purpose of assisting the Code Authorities of

the Paper Manufacturing and/or Converting Industries in the adjustment of all labor disputes and labor complaints arising within

such Industries, the Code Authority shall consider the advisability

of creating a Joint Industrial Relations Board for such Industries

and shall report its recommendations to the Administrator.

SECTION 3. Recommen nations made pursuant to Sections 1 and

2 hereof, when approved by the Administrator. shall hav- the same

force and effect as other provisions of this Code.

ARTICLE X--GENERAL TRADL PRACTICES

SECTION 1. The following are hereby eostituted Trade Practices

for the Industry and failure to comply with the provisions thereof

shall be a violation of this Code:

(a) Members of the Industry shall not practice deception in regard to that which is sold or its selling price by false or misleading

description, statement, record or undisclosed consideration.

(b) Members shall refrain from dumping. deferred delivery, extension of stated credit and secret rebates.

(c) Members shall not. wilfully injure by falsely defaming a competitor's goods. credit or ability to perform h in contract.
296

(d) meimberI shall not wilfidly indiCe or attempt to induce the

breach of a compete itor's contract.

No 1mIemilber siall give, permit to be given. or directly oier to

give. anything of value for tie purpose of influencing or rewarding

the actioni of any 'N, p Wloyee. agent or representative of another in relation to the business of the employer Of such emI1ployee, the principal

of such auent or the represented partv, without the knowledge of such

employee , principal or party. The foregoing provisions shall not be

construed to prohibit free and general district ion of articles coinmonly used for advertising except so far as such articles are actually

used for connercial bribery as herein defined.

(f) No ner:iber of the Industry shall ship goods on consignment,

except under circumstances to be defined by the Code Authority

where peculiar circumstances of the Industry require the practice.

(g) To make payment or refunds at any time, directly or indirectly, or to allow privileges not extended to all purchasers under like

terms and conditions excepting, however, such differentials or differences between purchasers as are permitted by the terms of Section 2

of the Clayton Act, shall be considered Unfair Trade Practices.

(I) No member of the Industry shall withhold from or insert in

his billing, statements resulting in the invoice being a false record, wholly or in part of the transaction represented on the face thereof.

ARTICLE X--GENERAL PROvISIONs

SECTION 1. If any member is also a member of another industry, the provisions of this Code shall apply to and affect only that part

of his business which is included in this Industry.

SECTION 2. Any work or process incidental to and carried on by

a member at his plant as a part of the manufacture of any product

of the Industry, shall be regarded as a part of this Industry.

SECTION 3. Such of the provisions of this Code as are not required

to be included therein by the Act, may, with the approval of the

Administrator, be modified and eliminated as changes in circuinstances or experience may indicate.

SECTION 4. This Code and all the provisions thereof are expressly

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

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

or modify any order, approval, license, rule or regulation issued

under Title I of said Act, and specifically, but without limitation, to

the right of the President to cancel or modify his approval of this

Code or any conditions imposed by him upon his approval thereof.

SECTION 5. This Code shall become effective on the second Monday

after the date upon which it shall be approved by the President of

the United States.

Approved Code No. 305.

Registry No. 311 03.

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