Approved Code No. 369 Registry No. 409-0~ 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR CO·MPETITION 

FOR THE 

EXP ANDING AND SPECIALTY 

PAPER PRODUCTS INDUSTRY 

AS APPROVED ON MARCH 26, 1934 

WE DO OUR PART 

U.~. DE 

UNITED ST ATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: l!l::4 

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For sale by the Su~e;intendeut of Dccurr..ents, 'Washington, D.C. - - - - - - - - Price 5 cents 

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

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Approved Code No. 369 

CODE OF FAIR COMPETITION 

FOR THE • 

EXPANDING AND SPECIALTY PAPER PRODUCTS 

INDUSTRY 

As Approved on March 26, 1934 

ORDER 

APPROVING CoDE OF F AIR COMPETITION FOR THE ExPANDING AND 

SPECIALTY p APER PRODUCTS I NDUSTRY 

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 ExJ?anding and Specialty Paper Products 

Industry, and hearings havmg been duly held thereon and the 

annexed report on said Code, containing findings with respect 

thereto, ha vino- been made and directed to the President: 

NOW, THEREFORE, on behalf of the Pre ident of the United 

States, I , Hugh S. Johnson, Administrator for Indu trial 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 

pre cribe 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 list. or revised terms and conditions of sale be and they 

are hereby tayed 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 this Code. 

Approval recommended: 

GEO. L. BERRY, 

HUGH S. JOHNSON, 

Administrator for Industrial, Recovery. 

Di1i·ision Adminisfrator. 

~TA HIXGTON D.C .. March f6, '1934, 

49060°-425-153-34 (553) 
REPORT TO THE PRESIDENT 

The PRESIDENT, • The White House. 

Sm: This is a report of the hearing on the Code of Fair Compe- tition for the Expanding and Specialty Paper Products Industry, 

conducted in Washington on January 26, 1934, in accordance with 

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

HOURS AND WAGES 

Thi Code provides a 40 hour week for factory workers with a 

weekly tolerance of eight hours to be paid for as overtime, and limited to 12 weeks per year. The usual exceptions are made in regard 

to nonproductive employees. Office employees are limited to an 

average of 40 hours per week over an eight week period. 

The minimum wage rate for hourly paid employees is 35¢ per hour 

for all employees engaged in hand folding, gumming and assembling 

operations and the inspection connected with such operations and 40¢ 

per hour for all other hourly paid employees. Office employees will 

receive a minimum wage of $15.00 per week. 

OPEN PRICE PL.AN 

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 Administrator with such 

statistical data as he may require. 

ECONOMIC EFFECT OF THE CODE 

The Industry employed in 1929 about 1,000 persons and in the first 

quarter of 1933 about 550 persons. Reports submitted by 13 representative firms in the Industry show an increase in employment 

between May and October 1933 of about 10%, indicating that there 

were in the latter month about 600 persons employed in the Industry. The total value of products of the Industry decreased from 1929 to 

1933 by about 30o/t:. To decrease the schedule of working hours sufficiently to attain the 1929 total of employees would increase the cost 

of production to such an extent as to endanger the Industry. 

FINDINGS 

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

having f·ound as herein set forth, and on the basis of all the pro- ceedings in this matter 

(554) 
555 

I find that: 

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

removal of obstructions to the free flow of interstate and foreign 

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

industry for the purpose of cooperative action amon~ the trade 

groups, by inducing and maintaining united action or labor and 

management under adequate governmental sanction and supervision, 

by eliminating unfair competitive practices, by promoting the fullest 

possible utilization of the present productive capacity of industries, 

by avoiding undue restriction of production ( except a may be 

temporarily required), by increasing the consumption of industrial 

and agricultural products through increasing purcha ing power, by 

reducing and relieving unemployment, by improving standards of 

labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 employees and is not classified by me as a major industry. 

(c) The Code as approved complies in all respect 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 afore aid 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. 

(£) 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 thi Code has been approved. 

Respectful! y, 

~fARCH 26, 1934. 

HUGH s. JOHNSON, 

Adrnli1isfrato,r. 
CODE OF FAIR COMPETITION FOR THE EXP ANDING 

AND SPECIALTY PAPER PRODUCTS INDUSTRY 

To effectuate the policies o:f Title I o:f the National Industrial 

Recovery Act the :following is hereby establi hed as a Code o:f Fair 

Competition lor the above named Industry and shall be binding on 

every member thereof. 

ARTICLE I-DEFINITIO s 

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

"Industry": The manufacture of hand-fold bellows expanding 

wallets, hand-fold file :folders and pocket , hand-fold expanding file , 

hand-fold expanding mailing wallets and other hand-fold expanding 

designs, principally from wood pulp, jute and hemp rope fibre papers, 

(mostly of the familiar reddish-brown color), cloth and canvas covered papers, imitation leather, etc. 

"l1ember '' : A natural person, partnership, corporation, as ociation, trust, trustee, trustee in bankruptcy, receiver, or other :form of 

enterprise, engaged in such Indu try. 

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

"Admini trator ": The Admini trator for Industrial Recovery 

under Title I in the Act. 

ARTICLE II-ORGANIZATION AND Anl\n ~r.:TRATION 

SECTION 1. There shall forthwith be constituted a Code Authority 

consi ting o:f five (5) per ons to be elected at an Indu try meeting 

called for uch purpose within thirty (30) day after the appro al 

of this Code. 

SECTION 2. Immediately upon approval of thi Code the Chairman of the Code Committee hall notify all known m mber of the 

In lustry of uch meeting at least ten (10 ) days prior ther to. 

SECTION 3. In addition to the rn.ember hip a provided in ection 1 

of this Article the Admini trator may de ignate one or more per on 

to serve on the Code Authority for such terms a he may fix. The 

per on or per on so de iQ'Ilated shall haYe no vote and hall .rve 

without corn.pen ation from the Indu try. 

SECTION 4. Each trade a ociation directly or indirectly participating in the election or activitie of the Code Authority hall (1) 

impose no inequitable restrictions on membership and (2) submit 

to the Adn1ini trator true copies of its article of a ociation, by-law , 

regulations and any amendment when made thereto together with 

uch other infonnation as to member hip, organization and a tivities 

as the Administrator may dee111 nece ry to eff ctua t the purpo es 

of the Act. 

(556) 
557 

SE TION 5. In order that the Code Authority shall at all times be 

truly representative of the Industry and in other re pects comply 

with the provisions of the Act, the Administrator may prescribe 

such hearings as he may deem proper and thereafter, if he shall find 

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

other respects comply with the provisions of the Act, may require an 

appropriate modification in the method of selection of the Code 

Authority. 

SECTION 6. The Code Authority is charged generally with the duty 

of administering this Code. If the Administrator shall determine 

that any action of the Code Authority, or any agency thereof, may be 

unfair or unjust or contr.ary to the public interest, the Admini trator 

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 the Administrator approves or unles he 

shall f.ail to disapprove after thirty (30) days' notice to him of intention to proceed with such action in its original or modified form. 

SECTION 7. The expenses 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 8. The Code Authority shall have power to investigate 

alleged violation of this Code and acts or courses of conduct by 

any m·ember which are or appear to be contrary to the policy of th() 

Act or which tend or may tend to render ineffective this Code and 

to report the same with recommendations to the Administrator. 

SECTION 9. The Code Authority shall use such trade a sociations 

and other agencies as it deems proper for the carrying out of any 

of its activities provided for herein, provided that nothing herein 

shall relieve the Code Authority of its duties or responsibilities 

under this Code and that such trade associations or agencies shall 

at all times be subject to and comply with the provisions hereof. 

SECTION 10. The Code Authority may appoint a Trade Practice 

Committee which shall meet with the Trade Practice Committees 

under such other Codes as may be related to this Industry for the 

purpose of formulating Fair Trade Practices to govern the relationships betwe0 n production and distribution employers under this 

Code and under such others to the end that such Fair Trade Practices may be proposed to the Administrator as amendments to this 

Code and such other Codes. 

SECTION 11. Nothing contained in this Code shall constitute the 

members of the Code Authority partners for any purpose; nor shall 

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

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

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

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

this Code, except for his own wilful misfeasance or non-feasance. 
558 

ARTICLE III-HOURS OF LABOR 

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

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

following schedule : 

SCHEDULE OF WORKING HOURS 

(a) Watchmen: Fifty- ix (56) hours in any one week but not 

more than six ( 6) days in any seven (7) day period; or fifty-six ( 56) 

hours in any one week, but not more than eight ( 8) hours in any 

one day. 

(b) Chauffeurs, truckdrivers and their helpers: One hundred 

eighty (180) hours in any period of four (4) consecutive weeks, 

provided., however, that time worked in excess of nine ( 9) hours in 

any one day or forty-five ( 45 hours in any one week shall be paid 

for a not le s than time and one-half. 

( c) Engineers, firemen, electricians, filter plant employees, electric and hydroelectric operators : One hundred sixty-•eight (168) 

hour in any period of four ( 4) consecutive weeks, provided, however, that time worked in excess of nine (9) hours in any one day 

or forty-five ( 45) hours in any one week shall be paid for as not 

les than time and one-half. 

( d) All other la.borers, 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) hour in any one 

day and forty ( 40) hours in any one week, proYided, however, that 

these maximum limits may be exceeded in any twelve (12) weeks 

of each calendar year, provided that all time worked in exce s of 

eight ( 8) hours in any one day or forty ( 40) hour in any one week 

shall be paid for as not less than time and one-half, and provided, 

further, that no employee shall be required or permitted to work in 

exce of ten (10) hours in any one day or forty -eight (48) hours 

in any one week. 

( e) Employees regularly engaged in a managerial, executive or 

supervisory capacity and their per onal ecretarie receiving thirtyfive ($35.00) dollar or more per ,,eek, and ou ide ale men: No 

limitation. 

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

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

of eioht (8) consecutive weeks. 

SECTION 2. No limitation contained in said schedule shall apply 

to employee of any cla when engaged in mergency repair or 

emergency maintenance work occa ioned by breakdowns or involving 

protection of life or property, provided, however, that all time 

worked in excess of the limitations pre cribed in aid schedule h all 

be paid for as not le s than time and one-half. SE TION 3. No employer hall permit any employee to work for 

any time which, when totaled with that already performed with another employer or mployers in this Indu try exceed the maximum 

p rmitte l herein. 

SECTIO 4. No female employee hall be required or permitted to 

work between th hour of 10: 00 P. I\1. and 6: 00 A. M. 
559 

SECTION 5. No employee of the classes incJnded under Section 1 

(b), (c) (d) and (£) of this Article shall be .-equired or permitted 

to work more than six (6) days in any even (7) con ecutive days. 

ARTICLE IV-WAGES 

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

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

or on work connected with the operation of any such plant, mill or 

factory, shall be as follows: 35¢ per hour for all employee engaged 

in hand-£oldino-, gumming and assembling operations and the inspection connected with such operations; 40¢ per hour for all other such 

employees. 

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

employee hall be $15.00 per week. 

SECTION 3. This rticle establishes a minimum rate of pay which 

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

SECTION 4. The wage rates of all employee receivino- more than 

the minimum rates herein prescribed which have not been adjusted 

since June 15, 1933, shall be reviewed and such adju -tments made 

therein as are equitable in the light of all the circum -tances, but in 

no ca e shall they be decreased. Within sixty (60) days after the 

effective date hereof the Code Authority shall report to the Administrator the action taken by all members under this Section. 

SECTION 5. Office boys and girls under eighte 0 n (18) year of age, 

to the extent of no more than 5% of the total number of employees 

described in Section 2 hereof, may be employed at a wao·e of not less 

than 80% of the minimum prescribed by said Section, provided that 

at least one such office boy or girl may be employed by each member. 

SECTIO 6. Female employees performing sub tantjally the ·ame 

work a male employee. shall receive the same rate of pay as male 

employees. 

SECTIO 7. A person whose earning capacity i limited because of 

age physical or mental handicap, or other infirmity, may be em- ployed on light work at a wage below the minimum e tabli hed by 

this Code if the employer obtains from the . tate authority, designated by the United States Department of Labor, a certificate authorizing such perso_n's employment at urh wage and for such 

hour a hall be -tated in the certificate. Such authorjty shall be 

guided by the instructions of the United State Department of Labor 

in issuing certjficates to such persons. Each employer shall file 

monthly with the Code Authority a list of all ·uch persons employed 

by him howina the wages paid to, and the maximum hours oi 

work for such employee. 

ARTICLE V-GENERAL LABOR PROV! IONS 

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

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

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

submit to the Administrator within sixty (60) days after the e:ffec-
560 

tive date of this Code a list of uch operations or occupations. In 

any State an employer shall be deemed to have com:?lied with this 

provision ~s to age if he shall have on file a certificate or permit duly 

signed by the authority in such State empowered to issue employn1ent 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 interfer nee, restraint, or coercion of employers of 

labor, or their agents, in the de ignation of such representatives or 

in self-organization or in other concerted activities for the purpose 

of collective bargainin~ or other mutual aid or protection. No employee and no one seeJring 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 hall comply with the maximum hours of 

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

a pp roved 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 or 

occupations performed or engage in any other subterfuge for the 

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

Code. 

SECTION 5. All employers shall po t 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 afety and health of his employees at the place and during the 

hours of their employment. Standards for safety and health shall 

be submitted by the Code Authority to the Administrator within ix 

( 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 thi Code, 

a plan for the stabilization and regularization of employment. 

SECTION 8. The manufacture or partial manufacture of any product of the Industry in homes shall be prohibited. 

ARTICLE VI 1-A COUNTING-SELLING 

SECTION 1. The Code Authority shall cau e to be formulated an 

accounting system and methods of cost finding and/ or estimating 

capable of use by all members of the Industr . After such sy tern 

and methods have been formulated and approved by the Administrator, full details concerning them shall be made available to all 

1 See paragraph 2 of order approving this Code. 
561 

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 (10) days prior to such date, every such 

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

term 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 price and the most favorable terms. 

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

Authority shall 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 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 ( 5) days after the date of filing, 

provided however, that an increased price may become effective at 

such ear lier 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 withdrawal, 

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 any time, shall be such as to permit the sale 

of any product at le s than the cost thereof to uch member determined in the manner provided in Section 11 hereof, provided, however, that any member may by notice to the Code Authority, adopt 
562 

as his own a lower pric 0 filed by anoth2.r designated member. Such 

adoption shall beccme 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 interested person or persons requesting them, copies of any price schedules 

which have been filed with it. Such price schedules shall be made 

available to such person or persons at the same time they are sent to 

members. 

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

which no opr.n 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 uch 

Section. 

SECTION 11. Cost, for the purposes of this Article, shall be determined pursuant to the method of accounting and costing 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 

shall from time to time prescribe with the approval of the 

Administrator. 

SECTION 12. Every member shall upon the request of the Code 

Authority furnish a designawd 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, pr-ice, 

conditions of storage, transportation or delivery, terms of billing, 

cash or trade discounts allowed, and other pertinent facts relating to 

such quotation, order, contract or sale. 

SECTION 13. Nothing herein contained shall be construed to pre-

,ent 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 member shall publish with the 

Code Authority prior to the sale thereof. 

ARTICLE VII-RErORTS AND STATISTICS 

SECTION 1. Each member shall prepare and file with an impartial 

agent, designated by the Code Authority, at such time and in such 

manner as it may prescribe, any such statistics, data and information 

relating to plant capacity, volume of production, volume of sales in 

units and dollars, orders received, unfilled orders, stocks on hand, 

inventory both raw and finished, number of employees, wage rates, 

employee earnings, hour of work, and other matters, as the Code 
563 

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 member shall not be revealed 

to another member. No such data or information shall be publi hed 

except in combination with other similar data and in such a manner 

as to a void 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. 

SECTION 4. In order to assist in making e:ff ecti ve the reports from 

the Industry and in eliminating unfair competition, the Code Authority shall make studies with a view to the establishment of classifications, dimensional standards, quality specifications and informative labelings for products of the Industry. 

SECTION 5. In addition to information required to oo submitted 

to the Code Authority there shall be :furnished to Government Agencies such statistical information as the Admini trator 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 VIII-MONOPOLIES 

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

permit monopolies or monopolistic practices, or to eliminate, oppress, 

or discriminate against small enterprises. 

ARTICLE IX-RECOMMENDATIONS 

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 practice 

for the Industry and for the codification 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 members of the Code Authority and/or for a change in the method of 

choosing such members. 
564 

SECTION 2. For the purpose of assisting the Code Authorities 0£ 

the Paper Manufacturing and/ or Converting Industries in the adjustment of all labor di putes 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. 

SE TIO);I 3. Recommendations made pursuant to Sections 1 and 2 

hereof when approved by the Administrator, after such notice and 

hearing as he shall prescribe, shall have the same force and effect as 

other provisions of this Code. 

ARTICLE X-TRADE PRACTICES 

SECTION 1. The following are hereby con tituted 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, ex, 

ten. ion of stated credit, and secret rebates. 

( c) Th1embers shall not wilfully injure by falsely defaming a competitor's goods, credit, or ability to perform his contracts. 

( d) Memb2rs shall not wilfully induce or attempt to induce the 

breach of a competitor's contract. 

( e) No member shall give, permit to be given, or directly offer to 

give, anything of value for the purpose of influencing or rewarding 

the action of any employee, agent, or representative of another in 

relation to the bu iness of the employer of such employee, the principal of such ag,ent or the represented party, without the knowledge 

of such employer, principal, or party. The foregoing provision shall 

not be con trued to prohibit free and general distribution of articles 

commonly used for advertising except so far as such articles are 

actually used for commercial bribery as herein defined. 

(f) No member of the Industry shall hip goods on consignment 

except under circumstances to be defined by the Code Authority 

where peculiar circumstances of the Industry require the practice. 

(g) In furtherance of fair competition and to prevent discrimination in price , manufacturers agree that in sales either to di tributors 

or con nmers no cash discount shall be given in ex ess of two 

percent (2 % ). Such cash discount will be strictly limited to payment not to exceed fifteenth of month following date of shipment. 

ARTICLE XI-GENERAL PROVISION~ 

SE TION 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 hi bu ine which is included in this Indu try. 

SECTION 2. \.ny work or proces incidental to and carried on by a 

member at his plant, as a part of the manufacture of any produ t 

of the Industry, shall be rega.rded as a part of this Indu try. . SECTION 3. u"h of the provisions of this Code as are not required 

to be included therein by the Act, may, with the approval of the 
565 

Administrator, be modified and eliminated as changes in circumstance 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 Pre::iident 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. 3-69. 

Registry No. 409-08. 

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UNIVERSITY OF FLOR IDA 

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