Approved Code No. 130 Registry No. 1215-0tl 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR, ~O1'f PETITION 

FOR THE 

PRECIOUS JEWELRY 

PRODUCING INDUSTRY 

AS APPROVED ON NOVEMBER 27, 1933 

BY 

PRESIDENT ROOSEVEL'( 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHING TON : 1933 

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

V 
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. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga. : 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

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

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

Chicago, Ill.: Suite 1706, 201 North Wells Street. 

Cleveland, Ohio : Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, Mich.: 2213 First National Bank Building. 

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Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

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Louisville, Ky.: 408 Federal Building. 

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Minneapolis, Minn. : 213 Federal Building. 

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

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa. : 933 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Building. 
Approved Code No. 130 

CODE OF FAIR COMPETITION 

FOR THE 

PRECIOUS JEWELRY PRODUCING INDUSTRY 

As Approved on N ove1nber 27, 1933 

BY 

PRESIDENT ROOSEVELT 

Exec u tive Order 

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

compliance with the provisions of title I of the National Industrial 

Recovery Act, approved June 16, 1933, for my approval of a Cocle 

of Fair Competition for the Precious Jewelry Producing Industry, 

and hearings having been held thereon and the Administrator having rendered his report containing an analysis of the said code of 

fair competition together with his recommendations and findings 

Y,ith respect thereto, and the Admini trator having found that the 

said code of fair competition complies in all respects with the pertinent provisions of title I of said act and that the requirements of 

clauses (1) and (2) of sub ection (a) of section 3 of the said act 

have been met: 

No,v, THEREFORE, I, Franklin D. Roosevelt, President of the 

United States, pursuant to the authority vested in me by title I of 

the .National Industrial Recovery Act, approved June 16, 1933, and 

otherwise, do adopt and approve the report, recommendations, and 

findings of the Administrator and do order that the said code of 

fair competition be and is hereby approved, subject to the following 

condition : 

That the application of the provision of section 1, article III to 

the manufacturers and distributors of jewelry for schools, colleges, 

fraternities, and other educational institutions, insofar as such section JffO,vides for the payment of time and one third for all hours 

over 40 per week worked by employees to whom such provision applies shall be stayed until ninety days after the effective date of 

this code, at which time such provision shall become effective and 

have the same force and effect as any other provision of the code. 

FRA ICLIN D. ROOSEVELT. Approval recommended: 

HUGH s. JOHN ON, 

Adniinistrator. 

THE ,vHITE HousE, 

Novembe1· 1£7, 1933. 

23779°-24-!-98-33 

(365) 
NOVEMBER 21, 1933. 

The PRESIDENT, 

The White Howse. 

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

Precious Jewelry Producing Industry, submitted by the Congress of 

Precious Jewelry Producers, Inc., 608 Fifth Avenue, New York City, 

was conducted in Washington on the 25th of September, 1933, in 

accordance with the provisions of the National Industrial Recovery 

Act. This association claims to represent eighty-five percent (85%) 

of the Industry. . The maximum hours fixed under this Code are forty ( 40) with 

special provisions for seasonal demands of one hundred f orty-fou-r 

(144) hours extra spread over one year, however, no more than 

forty-eight ( 48) hours are to be worked by any employee in any one 

week. 

The minimum wage is forty cents ( 40¢) per hour. Provision is 

made for learners to be paid eighty percent (80%) of. the minimum 

wage for a six weeks' learning period, after which they are to be 

raised to the minimum wage rate. Such learners shall at no time 

exceed five percent ( 5 % ) of the total number of employees employed 

by any one employer, except that every employer of less than twenty 

people shall be entitled to one learner. 

In 1929 there were 2,630 firms engaged in the manufacture of 

Precious Jewelry. In 1933 this number had been reduced to 1,840. 

This mortality of concerns will give a partial indication of the extent 

to which this Industry has been affected by the economic depression. 

Sales in this Industry in 1932, were only seventeen percent (17%) 

of the 1929 level. The production of previous jewelry requires a 

large amount of invested capital. The character of work performed 

in this Industry requires considerable skill and workmanship, resulting in high wage scales. This is purely a luxury industry and thus 

has suffered considerably from the depression. The Jewelry Industry is also very seasonal, as the products are largely gift merchandise. The uncertainty of the market makes it extremely difficult in dull times to anticipate future needs for the purpose of 

building up a standing stock. 

The forty (40) hour maximum will act to absorb only a small 

part of the unemployed workers. A further shortening of hours, 

with· the inevitable increased labor costs, is not recommended, however. An additional burden on the financial structure of the industry 

would doubtless increase the large number of bankrupt concerns. 

Lack of demand prevents the passing of any part of the cost on to 

the consumer. The inclusion of importers, which are merchandising 

establishments, within the jurisdiction of this Code renders a shorter 

work week impractical. 

The minimum wage rate will apply to only a small portion of the 

workers as the requirements are for workers of a high degree of skill. 

(366) 
367 

FINDINGS 

The Administrator finds that: 

(a) The Code, as recommended, complies in all respects with the 

pertinent provisions o:f Title I o:f the Act, including, without limitation, subsection (a) o:f Section 7, and subsection (b) of Section 10 

thereo:f ; and that 

(b) The Congress o:f Precious Jewelry Producers, Inc., the applicant group herein, imposes no inequitable restrictions on admission 

to membership and is truly representative of the Precious Jewelry 

Producing Industry; and that 

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

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

o:f Title I o:f the National Industrial Recovery Act. 

This Industry has cooperated in a most satis:factory manner with 

the Administration in the preparation o:f this Code. From evidence 

adduced during this hearing and :from recommendations and reports 

o:f the various Advisory Boards it is believed that this Code, as now 

proposed and revised, represents an effective, practical, equitable 

solution :for this Industry and its approval as herewith submitted is 

recommended. 

Respect:fully, 

HUGH s. JOHNSON, 

Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

PRECIOUS JEWELRY PRODUCING INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

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

Fair Competition for the Precious Jewelry Producing Industry, and 

upon approval by the President shall be the standard of fair competition for such industry and shall be binding upon every member 

thereof. 

ARTICLE II-DEFINITIONS 

1. The term "Precious Jewelry Producing Industry" as used 

herein is defined to mean any manufacturer of platinum jewelry, 

gold jewelry, and any importer, wholesaler or cutter of diamonds, 

pearls and other precious or semiprecious stones or imitations 

thereof, and such branches or subdivisions as may from time to 

time be included under the provisions of this Code. 

2. The term "gold jewelry" as used herein shall mean jewelry 

of the fineness of ten karat (10 kt) or better. 

3. The term "employee" as used herein includes anyone engaged 

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

4. The term "employer" as used herein includes any person or 

persons by whom any such employee is compensated or employed. 

5. The term "Manufacturer" shall mean any pers_on who, within 

or without his premises, engages in the manufacture, production, assembly or in the setting and /or finishing of jewelry; and/or in the 

cutting or polishing of stones. 

6. The terms "Act" and "Administrator" as used herein shall mean 

respectively the National Industrial Recovery Act and the Administrator of said Act. 

ARTICLE III-HOURS 

1. No employee shall be permitted to work in excess of forty ( 40) 

hours in any one week, except that during seasonal or peak demands, employees, other than office and clerical employees, may work 

not to exceed one hundred and forty-four (144) hours per year in 

excess of the maximum herein established, or forty-eight ( 48) hours 

in any one week, or more than eight ( 8) hours in any one day; provided, however, that the maximum hours worked shall not exceed 

forty (40) in any one week when averaged over a period of any three 

consecutive calendar months~ and provided further that time and 

one third shall be paid for all hours in excess of forty ( 40) in any 

one week. 

(368) 
369 

(a) The maximum hours fixed in the foregoing section shall not 

apply to any employee on emergency maintenance or emergency 

repair work involving breakdowns or protection of life or property, 

but in any such special case at least one and one third times the 

normal rate shall be paid for all hours worked in excess of the 

maximum herein established. 

(b) The provisions for maximum hours herein established shall 

not apply to employees engaged in a managerial or executive capacity 

who now receive over thirty-five dollars ($35.00) per week, or to 

outside salesmen. 

2. Employers (including individuals, partners, and officers or stockholders of corporations) or individual manufacturers while working 

as producers shall adhere to the working hours above prescribed. 

ARTICLFi IV-Vv AaEs 

1. The minimum wage that shall be paid by any employer to any 

employee shall be not less than forty ( 40) cents per hour, except 

learners, who shall have had no previous experience or employment 

in this industry, shall be paid not less than eighty percent (80%) 

of the minimum hourly rate, provided, however, that such learners 

shall be limited to a six (6) weeks' learning period, after which learning period they shall receive at least the minimum wage, and provided further, that the number of learners employed by any one 

employer in any one month shall not exceed five percent (5% ) of the 

total number of employees of such employer, except that an employer 

of less than twenty (20) employees shall be entitled to employ one . 

learner. 

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

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

or other basis. 

3. Female employees performing substantially the same work as 

male employees shall receive the same rates of pay as male employees. 

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

reducing the compensation for employment ·which compensation 

was prior to June 16, 1933, in excess of the minimum wage herein 

set forth, notwithstanding that the hours of work in such employment may be reduced; and, unless since such date such adjustments 

have been made, all tnembers of this industry shall endeavor to 

increase the pay of all employees in excess of the n1inimum wage, 

as herein set forth, by an equitable adjustment of all pay schedules. 

GE~ERAL LABOR PROVISIONS 

1. Employers shall not employ or have in their employ any person 

under the age of sixteen (16) years; nor anyone under eighteen (18) 

years of age at operations or occupations hazardous in nature or 

detrimental to health. The Code Authority shall submit to the 

Administrator a list of such occupations. In any state an employer 

shall be deemed to have complied with this provision if he shall have 

on file a certificate or permit duly issued by the authority in such 

state empowered to issue employment or age certificates or permits, 

showing that the employee is of the required age. 
370 

2. Employees shall haYe 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 purpose 

of collective bargaining or other mutual aid or protection. 

3. No employee and no one seeking employment shall be required 

as a condition of employment to join any company union or to 

refrain from joining, organizing, or assisting a labor organization of 

his own choosing; and 

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

minimum rates of pay, and other conditions of employment 

approved or prescribed by the President. 

5. No employee shall work, or be permitted to work, for a total 

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

whether he be employed by one or more employers. 

6. Within each State this Code shall not supersede any laws of 

such State imposing more stringent requirements on employers regulating the age of employees, wages, hours of work or health, fire, or 

general working conditions than under this Code. 

7. Employers shall not reclassify employees or duties of occupations performed by employees so as to defeat the purposes of the Act. 

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

full copies of the hour and wage provisions of this Code. 

9. If any employer jn the Precious Jewelry Producing Industry 

is also an employer of labor in any other industry the provisions of 

this Code shall apJ?lY to and affect only that part of the business 

which is included 1n the Precious Jewelry Producing Industry. 

ARTICLE V-HOME w ORK 

On and after the effective date of this Code home work in this 

industry shall be prohibited. 

ARTICLE VI-Amu:rNISTRATION 

To further effectuate the policies of the Act, a Code Authority is 

hereby constituted to cooperate with the Administrator in the 

administration of this Code. 

1. Organization and constitution of Code Authority. 

(a) The Code Authority shall consist of six ( 6) members of the 

Precious Jewelry Producing Industry and one ( 1) member of the 

Medium and Low Priced Jewelry Producing Industry. The Administrator, in his discretion, may appoint, to represent the Administration, not more than three (3) additional members, without vote, 

to servP. for such period of tin1e as he may designate. 

(b) Each trade or industrial association directly or indirectly 

participating in the selection of activities of the Code Authority 

shall submit to the Administrator true copies of its articles of association, by-laws, regulations, and any amendments thereto, together 

with such other information as to membership, organization, and 

activities as the Administrator may deem necessary to effectuate the 

purposes of the Act. 
371 

( c) In order that the Code Authority shall at all times be truly 

representative of the industry, and in other respects comply with the 

provisions of the Act, the Administrator may provide such hearings 

as he may deem proper; and thereafter if he shall find that the Code 

Authority is not truly representative, or does not in other respects 

comply with the provisions of the Act, may require an appropriate 

modification in the method of selection of the Code Authority. 

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

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

the Code Authority. . 

(a) There shall be filed with the Code Authority, at such times 

and 1n such m.anner as may be prescribed, with the approval of the 

Administrator, records showing in detail the number of employees, 

wage rates, employee earnings, hours of work, and such other data 

or information as the Code Authority ma.y from time to time require. 

(b) Except as otherwise provided in the National Industrial 

Recovery Act, all statistics, data, and information filed in accordance with the provisions of subparagraphs (a) and (b) of this 

Article shall be confidential, and the statistics, data, and information 

of one employer shall not be revealed to any other employer except 

that for the purpose of administering or enforcing the provisions of 

this Code, the Code Authority by their duly authorized representatives ( who shall not be in the employ of any employer affected by 

this Code) with the approval of the Administrator, shall have access 

to any and all such statistics. 

( c) When complaint in writing is made to the Code Authority 

that any of the provisions of this Code have been violated by any 

employer, the Code Authority shall promptly investigate the facts 

and n1ay cause such investigation to be made as may be deemed 

necessary to determine the facts set forth therein, and if said complaint is verified by such investigation, the Code Authority shall 

issue an order to cease and desist from such violation, provided, that 

upon the refusal of any member of this industry to comply with such 

order of the Code Authority, the Code Authority shall call the same 

to the attention of the Administrator and make such recommendations with reference thereto, as it may deem necessary to effectuate 

the purposes of the Act. 

(d) No inequitable restrictions on admission to membership in 

the Congress of Precious Jewelry Producers, Inc., or any other 

trade association or organized group, participating in the activities 

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

industry shall be eligible for membership in any such trade association or organized group upon compliance with the provisions of the 

bylaws relating to membership, provided that a;ny person applying 

for such membership shall, in addition to the payment of such dues 

as are imposed and paid by all other members, accept a reasonable 

and equitable share of the cost of code development and administration. Such members of the industry who do not choose to become 

members of any trade association or organized group may participate in the activities of the Code Authority as herein provided,. by 

paying to the Code Authority such proportionate part of the cost of 

code development and administration as the Code Authority, sub-
372 

j ect to the Administrator's approval, shall prescribe as :fair and 

equitable. 

3. Each member o:f the industry shall keep detailed records o:f all 

purchases, imports, and sales made by him, either as principal or 

agent, the date thereof, and the names and addresses o:f the parties 

:from whom acquired or to whom sold and shall submit such records, 

including consular invoices covering imports, to the Administrator 

upon request. · 4. In addition to the information required to be submitted to the 

Code Authority, there shall be furnished to the Administrator such 

statistical information as he may deem necessary for the purposes 

recited in Section 3 (a) o:f the Act. 

ARTICLE VII-STANDARDS 

1. No article o:f merchandise shall be stamped, branded, marked, 

or invoiced with any word, symbol, mark, or quality mark in violation of Federal or State stamping laws governing the stamping 

and marking of articles made of platinum, gold, and other precious 

metals, or in violation of any Commerical Standard issued by the 

United States Department of Commerce, nor shall any merchandise 

be advertised in a manner which will violate State advertising laws 

or of the rulings of the Federal Trade Commission. 

2. No article of merchandise shall be marked or stamped with a 

quality mark indicating gold or the fineness of gold unless the gold 

content shall be ten karat ( 10 Kt.) fine or over. 

3. The term" Solid Gold" shall be applied only to gold o:f twenty-

£ our karat ( 24 Kt.) fineness. 

4. No article, including raw material and finished or unfinished 

merchandise, purporting to be, or to be made of platinum, in whole 

or in part, shall be bought or sold unless the transaction be covered 

by an invoice accurately stating the quality o:f the metal. 

5. When any quality mark, descriptive of the quality, purity, 

fineness, quantity, weight, and/ or percentage of the platinum, gold, 

or other precious metal of which an article is made, is stamped or 

branded on said article itself, there must also be stamped or branded 

on said article: (1) the trade mark duly applied for or registered 

under the laws of the United States of the manufacturer of such 

article or (2) i:f the manufacturer has sold or contracted to sell such 

article to a jobber, wholesaler, or retail dealer regularly engaged in 

business, the trade mark duly registered or applied for under the 

laws of the United States o:f such purchaser. 

6. All pearls, precious and semi-precious stones ( diamonds not included), either sold loose or mounted, shall be designated on invoices 

by the proper descriptive trade terms, such as "Australian Sapphire" " Siam Ruby" "Natural Pearl" "Cultured Pearl" etc ' ' ' ' . 7. Synthetic, reconstructed, doublet, or imitation stones, cultured 

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

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

ARTICLE VIII-TRADE PRACTICES 

The following practices constitute unfair methods of competition 

for members of the industry and are prohibited. 
373 

1. The false marking or branding of any product of the industry 

which has the tendency to mislead or deceive customers or prospective customers, whether as to the grade, quality, quantity, substance, 

character, nature, origin, size, finish, or preparation of any product 

of the industry, or otherwise. 

2. The making or causing or knowingly permitting to be made or 

published any false, materially inaccurate, or deceptive statement by 

way of advertisement or otherwise, whether concerning the grade, 

quality, quantity, substance, character, nature, origin, size, finish, 

or preparation of any product of the industry, or the credit terms, 

values, policies, or services of any member of the industry, or otherwise, having the tendency or capacity to mislead or deceive customers 

or prospective customers. 

3. The giving, delivering, loaning, consigning, or otherwise placing of any merchandise in the control or custody of any person, 

either directly or indirectly, for the purpose of conducting a sale 

( whether or not advertised) or for the purpose of placing the same 

in any retailer's stock. 

(a) The foregoing paragraph shall not prohibit: (1) the consignment of any single item, exceeding in value two thousand dollars 

($2,000) to any retailer not conducting a price reduction sale; or 

(2) the delivery, upon memorandum, of merchandise for purpose of 

selection for a period not exceeding fifteen ( 15) days from date of 

the receipt of the merchandise, or upon specific call. 

4. The sending or delivering of merchandise as samples, except 

upon the condition that same shall be returned within fifteen ( 15) 

days following receipt, except when a selection is sent for the purpose of preparing a catalogue. 

5. Accepting for credit, exchange, or for any other reason, articles 

of jewelry, finished or unfinished, returned by a purchaser, unless 

such article is defective, or is not in accordance with specifications or 

approved sample; this provision shall not apply to settlements made 

with any insolvent or embarrassed debtor. 

6. The copying of any original design produced by another manufacturer, or estimating upon or making up an article in imitation of 

another's design, without the permission or consent of the owner of 

such design. 

(a) The memorandum on which such merchandise is delivered 

shall bear the following : " The above itemized articles forwarded 

herewith shall not be copied or duplicated, or altered or caused to be 

copied, duplicated, or altered by anyone except the owner of, said 

merchandise." 

7. Directly or indirectly to give or permit to be given, or offer to 

give, money, lavish entertainment, or anything of value to agents, 

employees, or representatives of customers or prospective customers, 

or to agents, employees, or representatives of competitors' customers 

or prospective custo~ers, without ~he knowledge of their employ~rs 

or principals, as an inducement to mfluence their employers or principals to purchase or contract to purchase from t!1e !Ilakers of su~h 

gift or offer, or to influe;11-ce such emrloyers or I?rincipals to refram 

from dealing or contracting to d~al with competit?rs. . 8. The defamation of competitors by falsely imputmg t? them 

dishonorable conduct, inability to perform contracts, quest10nable 
374 

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

disparagement of the grade or quality of their goods. 

9. The selling by any manufacturer of findings to jobbers or others, 

who do not maintain facilities for assembling these findings, or who 

do not send such findings to assemblers who come within the provisions of this Code, so far as wages and hours are concerned. 

10. The renting or loaning of bench space by any manufacturer_ 

and/ or other manufacturing facilities for the purpose of manufacturing jewelry, thus enabling the user to compete unfairly with manufacturers who are obliged to maintain such facilities. 

ARTICLE IX-TERMS 

1. No merchandise shall be sold on terms longer than six ( 6) 

months net average. 

(a) Mountings and articles of jewelry which do not contain diamonds, precious stones, or pearls, shall not be sold on terms longer 

than four ( 4) months net or season settlement January 1st or July 1st 

net. 

(b) Loose stones of a price of $3.00 per karat or less, or the equivalent thereof, shall not be sold on terms more favorable than three 

percent ( 3 % ) cash discount on or before the 15th of the following 

month-four months net. 

2. No datings shall be allowed, except that a fifteen (15) day tolerance is permitted £or adjustment of payment to customary monthly 

or seasonal disbursement dates. 

3. Interest at the rate of six percent ( 6%) per annum shall 

be charged from due date, unless otherwise provided by State laws. 

4. No marcasites, cha tons, or imitations of precious or semiprecious stones of any kind or description, suitable for the manufacture of jewelry or ornamentation of other material of any kind, shall 

be sold on any terms more favorable to the purchaser than the 

following: 

(a) Three percent (3% ) discount £or payment within fifteen (15) 

days from the end of the month in which merchandise is delivered, 

subject to a tolerance of ten (10) days. 

(b) No datings shall be allowed, except that merchandise sold 

after the 25th of the month may be dated as of the first of the month 

immediately following. 

( c) Interest at the rate of six percent ( 6% ) per annum, unless 

otherwise provided by State laws, shall be charged on all accounts 

unpaid within sixty ( 60) days from the end of the month in which 

deli very of merchandise was made. 

ARTICLE X-MODIFICATION 

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

subject to the right of the President, in accordance with the provisions of subsect10n (b) of Section 10 of Title I of the National 

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

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

said Act, and specifically, but without limitation, to the right of 

the President to cancel or modify his approval of this Code or any 

conditions imposed by him upon his approval thereof. 
375 

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

modified or amended on the basis of experience or changes in circumstances, such modifications or amendments to be based upon 

application to the Administrator ancl such notice and hearing as he 

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

unless otherwise provided. 

ARTICLE XI-MONOPOLIES, ETC. 

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

against small enterprises. 

ARTICLE XII-PRICE INCREASES 

Whereas the policy of the Act to increase real purchasing power 

will be made impossible of consummation if prices of goods and 

services increase as rapidly as wages, it is recognized that price increases should be delayed and that, when made, the same should, so 

far as reasonably possible, be limited to actual increases in the seller's 

costs. 

ARTICLE XIII-EFFECTIVE D.ATE 

This Code shall become effective on the 3rd day after its approval 

by the President. 

ARTICLE XIV-SUPPLEMENT.ARY PROVISIONS 

The following Divisions (Schedules A and B) are supplementary 

to, and constitute part of, the Code of Fair Competition for the 

Precious Jewelry Producing Industry. Such schedules apply to only 

those particular Divisions as are indicated by the specific headings. 

Any provision of the supplementary Codes that may be inconsistent 

with the provisions of the Basic Code shall prevail. 

Approved Code No. 130. 

Registry No. 1215--06. 
SCHEDULE A 

DIVISIO:"T FOR THFJ MANUFACTURERS AND DISTRIBUTORS OF JEWELRY FOR SCHOOLS, 

COLLEGES, FRATERNITIES, AXD OTHER EDUOATION.A.L INSTITUTIONS 

1. Contracts.-(a) In order to meet the increased cost of gold, following the 

Executive Order of the President of August 28, 1933, it is recognized that prices 

in contracts for purchase of gold products which were made prior to said 

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

Division and their customers, should be increased to such an extent as is 

llecessary to allow for the actual increased cost of gold in such products. 

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

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

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

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

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

insignia under contract, it is an unfair trade practice for unauthorized persons 

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

2. Discoimts.-(a) Discounts on all orders sold direct from any manufacturer 

of this Division to retail stores, where no salesman works on such order, shall 

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

and at such amount off of the list price filed with the Code Authority as may, 

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

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

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

and at such amount off of the list price filed with the ode Authority, as may, 

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

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

( b) of this Article, are hereby prohibited. 

3. D eposits.-(a) Deposits on the purchase price of class emblems and fraternity jewelry shall be required with the order, as follows: 

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

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

ten dollars ($10.00). 

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

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

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

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

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

($1.00) deposit on all regular orders for fraternity jewelry, and on special 

orders for fraternity jewelry at least fifty percent ( 50%) of the purchase 

price thereof. 

4. Special charges and commissions.-(a) On all orders for high-school rings 

and pins the actual cost of the necessary dies shall be charged in accordance 

with a schedule submitted by the Code Authority and approved by the Administrator. 

(b) Commissions in any form allowed or paid to any salesman, representing 

a member of this Division, shall be filed with the Code Authority in the same 

manner as provided for the filing of net current price lists and discount sheets, 

and no salesman shall give to a purchaser any deduction from his commission as shown by the schedule thereof filed with the Code Authority. 

5. Sales provisions.-(a) No member of this DiYision shall sell, exchange, or 

offer for sale, any product of this Division at a price below his own individual 

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

application to the Industry, to be deYeloped and set up by the Code Authority, 

subsequent to the effective date of this Code, and when approYed by the 

Administrator, shall be used by all members of this Division as the basis for 

determining their individual cost. 

6. Price lists.-(a) Each member of this Division shall, within five (5) days 

after the effective date of this Code, file ,-vith the Code Authority, a schedule 

(376) 
377 

of his net current price lists and discount sheets, on forms prescribed by the 

Code Authority, and approved by the Administrator. 

(b) Revised schedules of p1ice lists and discount sheets may be filed from 

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

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

with the Code Authority. 

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

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

member on file with the Code Authority. 

(d) Members of this Division shall keep accurate records of their indiYidual 

costs, which records shall, upon request, with the approYal of the Administrator, 

be available to the Code Authority. 

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

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

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

of this schedule, and such submitted price list, representing the price of any 

particular article below the individual cost of the member submitting the same, 

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

Authority, pending submission of a revised price list based on the individual 

cost of each article to such member. 

7. Trade Practices.-In addition to the Trade Practices set forth in the Basic 

Code, the following constitute unfair methods of competition for members of 

this Division and are prohibited: 

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

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

rings or pins, bribes, special discounts, or rebates. 

(b) To guarantee a cash payment or installment payments a an inducement 

to secure a contract. 

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

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

advertising, or the purchase of a reasonable space in a school or college publication, based on approximately three per~ent (3%) of the business secured 

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

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

or institution, and suggested designs are requested by such school or institution, that will require a special shank die, no member of this Division shall 

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

definite signed order. 

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

fair charge unless defective in material or manufacture. 

8. Con.signment.-(a) Nothing contained in the basic Code relative to the 

prohibition of delivery of goods on consignment or memorandum shall apply to 

members of this Division. 
UNIVERSITY OF FLORIDA 

II I II IIIIII Ill Ill lllll lllll II IIIIII II IIIII Ill llllll Ill Ill lllll I I 

3 1262 08582 8423 

SCHEDULE B 

DrnSION FOR MANUFACTURERS OF FRATERNAL AND EMBLEMATIC JEWELRY 

Trade Praatices.-In addition to the Trade Practices set forth in this Code, 

the following constitute unfair methods of competition for the members of this 

Division and are prohibited: 

(a) To prepay any shipping charges on merchandise. 

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

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

may be executed. 

(378) 

0