Approved Code No. 514 Registry No. 1602-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

• 

ARTIFICIAL LIMB f ( 

MANUFACTURING INDUSTRY 

AS APPROVED ON AUGUST 28, 1934 

UN IV. Of· Fl Ul. 

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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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Approved Code No. 514 

CODE OF FAIR COMPETITION 

FOR THE 

ARTIFICIAL LIMB MANUFACTURING INDUSTRY 

As Approved on August 28, 1934 

ORDER 

APPROVING CoDE oF FAIR CoMPETITION FOR THE ARTIFICIAL LIMB 

MANUFACTURING INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I or the National Industrial 

Recovery Act, approved June 16, 1933, for approval of a Code of 

Fair Competition for the Artificial Limb Manufacturing Industry, 

and hearing 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 E xecutive Orders of the 

President, including Executive Order No. 6543-A, dated December 

30, 1933, and otherwise; do hereby incor porate 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 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 ; provided, 

further, that the following changes be, and the same hereby are, 

made : 

( 1) That Section 1 of Article III be, and the same hereby is 

amended t o read as follows : 

" No employee shall be permitted t o work in excess of f orty ( 40) 

hours in any one week, or six (6) days in any seYen day period, or 

eight (8) hours in any one day." 

(2) T hat Section 2 of Article III be, and the same hereby is 

umendecl to read as follows: 

"The provi. ions of thi Article shall not apply to-

( a) Employees engaged in emergency work involving break clown~ 

or the protection of life or property, pro·\"icled that such employees 

8~037° ----1 ±-125---- 4 (83 ) 
86 

-hall b 1 aitl tim and n -hal£ th normal rat f pay f r all hours 

work 'd in .· ~· f f rty ( 40) hour p r w k an l 1ght ( ) h ur 

1 r lay. 

b) Ex cutiYe ( -) llar · r m r per 

w ' k, and ut id 

(3) That ec i n f \.rti 1 IV b , and th . ame hereby i 

, m nded t read a follow : 

'Apprenti e n1ay be mrloyed at a waO'e not 1 than io-hty ( 0) 

p r c n of th minimum h r in t f rth pro id d h WeYer that 

the nun1ber f handi apped apprentic hall n t at an r time ex d 

fift en (1 ) per cent of the total numb r of employ e in ache tablishment and the number of non-handicapped apprentices hall not 

at any time xceed fiv ( 5) per cent of the to al number of mployee in each tablishment. In ca es where twenty (20) p r cent 

i le than one, ach member of the Industry hall be allowed one 

apprentice." 

(4) That Section 2 of Article VIII be, and the arne hereby is 

amended to rea l as follows : 

"When any member of the Industry has filed any revisions, such 

member hall not file a higher price within forty-eight ( 48) hours." 

Approval recommended: 

GEo. L. BERRY, 

HuGHS. JoHN ON 

Ad1ninist1·ator for Industrial Recove1'1.J. 

Division Administrator. 

WASHINGTON, D.C., 

August ~8, 193./r. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

SrR: This is a report on the Code of Fair Competition for the 

Artificial Limb Manufacturing Industry, the hearing having been 

conducted in 'V ashington on the 27th day of March, 1933, in accordance with the provisions of Title I of the National Industrial 

Recovery Act. · 

GENERAL STATEMENT 

The Artificial Limb Manufacturing Industry 1n 1933, embraced 

approximately 252 establishments engaged in the manufacturing, 

sale and servicing of artificial limbs and limb supplies, with an 

aggregate invested capital of approximately three and one-half million dollars. The aggrega~e annual sales have declined from approximately $3,50o,poo.oo in 1929 to $2,750,000.00 in 1933. The 

Industry's output tell from 88% in 1929 of its possible maximum 

production to 68% in 1933. 

HOURS AND WAGES 

The Code provides a standard work week of forty-five ( 45) hours 

and a standard work day of nine (9) hours. Exception is made for 

employees engaged in emergency work involving breakdowns or the 

protection of life and property, provided they are paid time and 

one-half for all overtime in excess of the standard work day and 

standard work week. Executives who receive thirty-five ($35.00) 

or more per week and outside salesmen are also exempted. 

The Code provides for a standard wage. of 40¢ per hour with 

exceptions for accountants, clerical and office employees who are 

to be paid not less than $15.00 per week. Exception to the standard 

wage provision is also made for the apprentices who may be employed for a period not to exceed six (6) months at eighty (80) 

percent o£ the minimum wage as est ablished by the Code. It is 

also provided that female employees performing substantially the 

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

male employees. 

ECONOMIC EFFECT OF Tl-IE CODE 

There will probably be very little increase in employment in this 

industry, as a result of the Code, because the number of skilled 

mployees has remained almost con tant over a period of years. The 

only variation in total number of employees haS' been that for the 

unskilled workers. A reduction of hours has caused a transfer of _ Eome of the less skilled work, formerly performed by the skilled 

wo1·kers, to the unskilled workers thus producing a slight increa c 

(87) 
88 

in nnm r of thi · ·In , f mpl) r • This in 1nstry has alway 

th ir mpl '' a hicrh ::tv •rucr wag '"ith th minimum ' ncr 

ing 1 aid t ab ut tw nt ·-flv ( :- ) 1 ·rc 'nt f th mplo r • 1n 

th industry. 

Th Deputy A ]mini trat r in hi final report m n said o e 

havino- f und a h r in et f rth and n the ba is f all the pr - ceeding in thi matter; 

I find that: 

(a) Said ode i well d igned to promote the polici and purpo e of Title I of the National Indu trial Recovery A t, including 

rem val of ob tructions to the fre flow of inter tat and for io-n 

conunerc which t nd to climini h the amount thereof and will provid for the o- n ral welfare by promoting the organizati n of indu - try for the purpo e of ooperative action among the trad o-r up y 

inducing and maintaining united action of labor an management 

under adequate governmental sanctions and supervision, by eliminating unfair competitive practices, by promoting the fullest possible ultilization of the present productive capacity of indu trie , by 

avoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of indu trial and 

agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of 

labor, and by oth rwise rehabilitating industry. 

(b) Said Indu try normally employs not more than 50,000 employee · and is not classified by me as a major indu try. 

(c) Th Code as approved complies in all r spect with the pertinent provisions of said Title of aid Act, including without limitation Sub ection (a) of Section 3, Subsection (a) of ction 7, and 

Subsection (c) of Section 10 thereof; and that the applicant a sociation i an indu trial a so iation truly repre entative of the aforesaid Industry ; and that said a ociation imposes no inequitable 

restrictions on admission to member hip therein. 

(d) The Cod i not de igned to and will not permit monopolies 

or monopolistic practices. 

(e) The o e i not d si ned to and will not eliminate or oppr s 

mall cnterpris and ' ill not rate to di criminate ao-ain t th m. 

(f) Tho e ncrao- d in other t p of the economic pr hav 

no been depri ed of the right to be heard prior to approval of aid 

od. 

l\I mber of this Indu try ha e co-operated in a m t ati factory 

ma11ner with th Admini.trator in th pr parati n f this ode. 

From vi l n e ad lu d durino- this h aring an l fr m r mm ncla ions and report· of the vari us d isory Boarcl. it i b li ve 

that thi cle a. no' prop . d an r vi d r pr nt., an ff ti , practi al uitubl olnti n for this Indu try an for th e r a ons 

thi od ha b n approv 

R p ctfully, 

A G T 2 '1034. 

H OII . ,J liN N, 

Administrator. 
CODE OF FAIR COMPETITION FOR THE ARTIFICIAL 

LIMB MANUFACTURING INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, this Code is established as a Code of Fair Competition for the Artificial Limb :Manufacturing Industry, and its provisions shall be the standards of fair competition for such industry 

and shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term "The Artificial Limb Manufacturing Industry " as used herein means and includes the business of pr6d'ucing 

andj or selling by the manufacturer of artificial limbs and/or limb 

supplies. 

SECTION 2. The term "member of the Industry" includes any 

individual, except those charitable institutions who have pledged 

themselves to the Sheltered \Vorkshop Agreement, partnership, association, corporation or other form of enterprise engaged in the 

industry, either as an employer or on his or its own behalf. 

SECTION 3. The terms "President", "Act" and "Administrator" 

as used herein shall mean respectively the President of the United 

States, Title I of the National Industrial Recovery Act, and the Administrator for Industrial RecoverY. 

SECTION 4. The term "employee'' as used herein includes any and 

all persons engaged in the industry, however compensated, except a 

member of the Industry. 

SECTION 5. The term "employer" as used herein includes anyone 

by whom any such employee is compensated or employed. 

SECTION 6. Population for the purpose of this Code shall be determined by reference to the latest Federal Census. 

ARTICLE III-Hcuns 

SECTION 1. No employee shall be permitted to work in excess of 

forty-five (45) hours in any one week nor more than nine (9) hours 

in any twenty-four (24) hour period beginning at midnight; provided that the forty-five ( 45) hours shall begin ~Ionday morning 

and terminate not later than one o'clock Saturday afternoon.1 

SECTION 2. The provisions of this Article shall not apply to: 

(a) Employees engaged in emergency work involving breakdowns or the protection of life or property, provided that such employe€s shall be paid one and one-half times the normal rate of pay 

for all hours worked in excess of forty-five ( 45) hours per week and 

nine ( 9) hours per day. 

1 Amended-See paragraph 2 (1) of order approving this Code. 

(89) 
90 

(b) Exc utiYc. who receiv thirt -five ($35. 0) dollars or more 

per ' k, and ut i 1 ale m n. 2 

E "IT N 3. N m1l ' r hall permit any empl y e t work a t tal 

nmnu r of hour whi h wh n ompli d. with that alr ady ork d for 

anoth r emplo · r or employ r ex e the maxjmum p rmitted 

h r in. 

AnTI LE IV-\v AcE 

8-sc TIO:N 1. No mployee hall be paid in any pay perio l ss 

than at the rate of forty ( 40¢) c nts per hour, excer t as hereinafter 

pro 'I ided. 

SE TION 2. No employer shall pay any accounting, lerical office 

ern ployee (except outside salesmen) less than at the rate of fifteen 

($15.00) dollars per week. 

E TION 3. Apprentices may be employed at a wa<Ye not l than 

eighty ( 0%) per cent of the minin1un1 h rein set forth, for a period 

not to exceed six (6) months, provided, however, that the number 

of uch apprentices shall not at any time exceed twenty (20%) per 

cent of the total number of employees in each establishment. In 

case where twenty (20%) per cent is less than one, each member 

of the industry shall be allowed one apprentice. s 

SECTION 4. This article establishes a minimum rate of pay which 

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

SEcTION 5. No employee, except an employee engaged in a supervisory, managerial, executive or selling capacity who is pail fifty 

($50.00) dollars per week or more, shall be paid a wage rate, whether 

a time rate or piece rate or whether paid on a bonus, commi ion or 

other ba i which will yield a less wage for the shorter full time week 

herein e tabli hed than he could have earned for th same class of 

work for the longer full time week as of June 16, 1933. V\ age increa es e tabli hed under the President's reemployment agreement 

hall at least be maintained. All employers who have not already 

made an equitable adjustment of wage , hall within thirt (30) 

days after the effective date of this Code, make such equitable adj u tments. Every mployer shall, within ixty (GO) da after the 

effective date of this Code, report to the ode \uthori y for transmi ion to the Admini trator, the action whi h h ha tak n in 

accor ance with this S ction. In no ase shall rates of pay be 

reduc d. 

SE TI N 6. Female mployees performing ub tantially the ame - work a male employee hall receive the am rate of pay us male 

employ es, and wh n th y are engaged to r pla e mal mJlO) e , 

they hull r e i ve at lea t the same rate of wag s as the mal s hom 

th li plac . E 'TI .. 7. All mploycrs shall 1nake pa. rn nt of all wag ne 

jn lawful culT ncy r by n ~otiable check therefor payabl on 

lemc n 1. \Y ug s shall be paiCI. at the nd of ach w ekly p riod. 

The. e wage. ·hall be e~-e mpt from any paym nt of p n ion in. urance or sick benefit oth r than tho e voluntarily paid by mploy e 

or p re. ribc 1 b. law. E mploy rs or th ir ao·ents hall not ace 1 t 

2 .Amend d- .'ee paragraph 2 <2) of or<J er approving this Code. 1 Ameuded-See paragraph 2 (3) of order approving this Code. 
91 

directly or indirectly rebates on such wages or give anything of 

value or extend any favors to any person :for the purpose o:f influencing rates of wages or working conditions of their employees. 

SEcTION 8. The provisions o:f the Article regarding payment o:f 

wages at the end o:f each weekly period shall not apply to persons 

employed in a managerial or executive capacity who earn not less 

than thirty-five ($35.00) dollars per week, nor to persons e~1ploye.d 

in clerical or office work. The wages :for persons employed 1n clencal or office work shall be paid at the end o:f pay periods not to exceed 

semi-monthly periods. 

ARTICLE V-GENERAL LABOR PROVISIONS 

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

employed in the industry, 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 

for approval a list of occupations or operations deemed hazardous 

in nature or detrimental to health within three ( 3) months :from 

the effective date of this Code. In any State, an em.ployer shall be 

deemed to have complied with this provision as to age, if he shall 

have on file a valid 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. It is hereby provided that: 

(a) Employees shall have the right to organize and bargain collectively through r epresentatives o:f their own choosing, and 

shall be free from the inter:ference, restraint, or coercion of employers of labor, or their agents, in the designation of such representatives or in self-organiz-ation or in other concerted activities for 

the purpose o:f collective bargaining or other mutual ·aid or protection. 

(b) No employee and no one seeking employment shall be required 

as a condition o:f employment to join any company union or to refrain :from joining, organizjng, or assisting a labor organization o:f 

his own choosing, and 

(c) Employers shall comply with the maximum hours o:f labor, 

minimum rates o:f pay, and other conditions o:f employment approved or prescribed by the President. 

SECTION 3. No employer shall reclassi:fy employees or duties of 

occupations per:formed or engage in any other subter:fuge so n,s to 

de:feat the purposes or provisions o:f the Act or o:f this Code. 

SECTION 4. Every employer shall provide :for the sa:fety and health 

o:f employees during the hours and at the places o:f their employment. 

Standards :for sa:fety and health shall be submitted by the Code Authority to the Administrator :for approval within six (6) months 

a:fter the effective date o:f the Code. 

SECTION 5. No provision in this Code shall supersede any State 

or Federal law which imposes on employers more stringent requirements as to age o:f employees, wages, hours o:f work, or as to sa:fety, 

health, sanitary or general working conditions, or insurance, or fire 

protection, than are imposed by this Code. 

SECTION 6. All employers shall post and keep posted copies o:f this 

Code in conspicuous places accessible to all employees. Every mem .. J 
92 

bcr of th Industry shall comply with all rules and regulations 

r l< ti Y to the po bng of pro i ions of Code of Fair Comp tition 

'vhich ma fr m time to time be prescribed by the 'A mini tt·ator. 

E TIO.~." 'l. Forth purpo ·e of this Cod physician , ur~eon and 

1ther 1 r on att ndino· tr ating or caring for the ick 1nj ur d or 

l f rm 1 a th ir pati nts or clients in r ommen in or ord ring 

th purcha e by their client· of artificial limb and/ or upplies mplo -ed in the treatment of deformities, hall not be considered b na 

fide employees. SE TIOX . No employee now eno-aged at a ratB above the minimum 

hall be di charg d and r eemplo ed or replaced by another at a 

lower rate for the purpo e of evading the provi ion of thi Code 

or the purpose of the Act. 

SEcTION 9. No employee shall be di charged, demoted or otherwise 

discriminated against by rea on of making a complaint or giving 

evidence with respect to an alleged violation of this Code. 

ARTICLE VI-ADMI:Z...."TSTRA TION 

SECTION 1. There shall forthwith be e tablished a Code Authority 

consi ting of five ( 5) persons to be selected by a fair method of 

selection approved by the Administrator from the Artificial Limb 

1\1anufacturino- Industry. SECTION 2. In addition to membership as above proYided there 

ma be three (3) members without vote and without compen ation 

from the industry to be appointed by the Administrator to serve 

for such times as he may specify. 

t)ECTION 3. The Artificial Limb :Manufacturing Indu try Code 

Authority may incorporate under the laws of any State of the 

United States or of the District o·f Columbia, or may as ume or 

adopt such existing corporate form under any of such laws as it 

may deem appropnate for the proper performance, as and from the 

effective date, of its activities, powers and duties hereunder such 

corporation or corporate form to be not for profit and to be known 

as Artificial Limb Manufacturing Industry Code Authority Incorporated · provided that the powers, dutie , objects and purposes 

of the aid corporation shall, to the atisfaction of the Admini trator, be limited to the power , duties obj ects and purpo e of 

the Artificial Limb Manufacturing Industry Code Authority a proYided in this Cod · pro ided further, that the exi t nee of the aid 

corporation shall be during the term of the ode · and provid , further, that the ode Authority hall ubmit to th Administrator, 

f r hi approval, its propose 1 ·erti.fica f Incorp ration ant1 propo. c1 by-law and no amendment of either hall be made without 

the llkc prior appr val of the Admini trator · and pro-.;-ic1 d f Jrther that the Co I Authorit r shall ubmit ith its propo. e 1 er- tificate f Incorporation an 1 By-Laws, th written opinion of n.n 

attorn y-at-law qualifie l in antl conYer ant with the law of the 

juri t1iction in which the od Authority e ks to be in rporat 1 

a to the nature and stent of the juri d1ction pow r. and authoritie cxllr i. able by the Stat in que tion and its a o·cncie ov r the 

actiYiti . f th d uth rity as a rporation supporting uch 

opinion by citation of relevant authorities, ancl supplementing the 
93 

same with a table, certified to be complete, of all laws, statutes and 

other regulatory provisions governing corporations created pursuant to the laws under which the Code Authority seeks to be incorporated. If at any time, the Administrator shall determine that 

the corporate status assumed by the Code Authority is interf ering 

with the proper exercise of its powers and duties under this Code, 

or with the effectuation of the policies or purposes of the Act, he 

may, after such iwtice and hearing as he may deem necessary, require an appropriate modification of the structure of the Corporation (if consistent with the law of the State of Incorporation), the 

substitution of a corporation created under the laws of another 

State in the sam.e manner as the existing Code Authority, the substitution of a non-corporate Code Authority truly representativ~ 

of the industry or such other actions as he may deem expedient. 

SECTION 4. Each trade or industrial association direct~y or indirectly particii?ating in the selection or activities of the Code Authority shall (1) impose no inequitable restrictions on membership, 

and (2) submit to the Administrator for his approval true copies 

of its articles of association, by-laws, regulations, and any amendments when made 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. 

SECTION 5. 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 prescribe 

such hearmgs 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 of the Code Authority. 

SECTION 6. 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 

anyone fo: 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 anyone for any action or omission to act under 

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

SECTION 7. If the Administrator shall at any time determine that 

any action of a Code Authority or any agency thereof may be unfair 

or unjust or contrary to the public interest, the Administrator may 

require that such ac.tion be suspended to afford an opportunity for 

inve tigation of the merits of such action and further consideration 

by such Code Authority or agency pending final action which shall 

not be effective unless the Admini trator approves or unless he shall 

fail to disapprove after thirty (30) days' notice to him of intention 

to proceed with such action in its original or modified form. 

SECTION 8. Subject to such rules and regulations as may be issued 

by the Administrator, the Code Authority shall have the f ollowing 

powers and duties, in addition to tho e authorized by other provi- sions f this Code. 

(a) To insure the execution of the provisions of this Code and 

to .provide for the compliance of the industry with the provisions of 

the Act. 
94 

(b) To a opt by-law and rules and regulation f r its pro ure. 

(c) 1 obtain fr m m mber f the Indu try such information 

an l r 1 rt a ar r quir d i r th achnini tration of the ue. In 

a ldition to inf rma i n r quir d to b submit d to the Code 

Authority, members of the In lu try ubje t t thi · od. hall fur- ni~h u h tati ti al in£ rmation a the A lmini tr:..tor may deem 

n '"r · f r the purpo es r it€d in S ction 3 (a) of th Act to 

u h F ederal and St, t ag nci ,., as he may desi<r.1ate · 1 r Yide that 

nothino· in this Code shall r li Ye any memb r of the Indu tr r of 

an r xi ·ting obligation to furni h reports to any Government 

acr ncy. r o indiYidual report shall be disclosed to any other member 

of the Inclu try or any other party exc pt to uch other Go ernmental agencie as may be directed by the Admini trator. 

(d) To u._.e such trade a sociations and other ag ncies as it d ems 

proper for the carryino- out of any of its activities provided for 

herein proYided that nothing herein shall relieve the Code Authority of it duties or resr onsibilities under this Code and that such 

trade a sociati ns and agencies shall at all times be subject to and 

comply with the provisions hereof. 

(e) To make recommendations to the Administrator for the coordinat:on of the administration of this Code and such other codes, 

i:£ any, a may be related to or affect members of the Indu try. 

(f) 1. It being found necessary in order to support the admini tration of this Code and to maintain the standards of fair competition established hereunder and to effectuate the policy of the 

Act, the Code Authority is authorized: 

(a) To incur such reasonable obligations as are nece sary and 

proper for the foregoing purposes, and to me t such obligations 

out of funds which may be rai'"'ed a hereinafter provided and 

which hall be held in trust for thB purpo e of the Code; 

(b) To submit to the Admini trator for his a.pproval, subject to 

such notice and opportunity to be heard as he may deem neces ary 

(1) an itmeized budget of its e timated expen es for the foregoing purpo es, and (2) an equitable ba is upon which the funds 

nece ary to support such budg t shall be contribute by members 

of the Indu try; 

(c) After uch budget and basis of contribution have been appro ed by the Admini tr·ator, to determine and obtain equitable 

contribution as aboYe et forth b all members of th Indu trv. and 

to that nd if nee ary, to in titute leo·al pro eding~ th r for in 

it O\ n name. 

2. ~a l;t member of the Industr hall pay hi or i quitable 

contrrbub n to the :xpen of the n1aintenanc f the ode uthority, lctermined as her inabove provi l cl, ancl ubj t to rule an l 

rerrulation pertaining thereto i su d by th Aclmini trator. nly 

memb 1 of th Industry complyinO' with the o 1 and ontrib- uting to the .~pen e. · of it a huini.tration ns her inabon~ provi led 

shall b ntitlcd to participate in th s l ction f member f the 

ode \..uthority or to rec ive the hen ·fits f any· of its Yolnntary 

a ·ti,itie or to make us of any emblem or in: icrnia f th :ra tional 

Recov rv Aclministra ion. 3. Th. O(l 1 uthority hall n ither in ur nor 1 av any o licrati n 

in excess of the amount thereof as estimated in its approved b~clget, 
95 

except upon approval of the Administrator; and no subsequent 

budget shall contain any deficiency item for expenditures in ·excess 

.of prior budget estimates except those which the Administrator 

shall have so approved. 

(g) To recommend to the Administrator any action or measures 

deemed advisable, including further fair trade practice provisions 

to govern members of the Industry in their relations with each 

other or with other industries; measures for industrial planning, 

and stabilization of employment; and including modifications of 

this Code which shall become effective as part hereof upon approval 

by the Administrator after such notice and hearing as he may 

specify. 

(h) To appoint. a Trade Practice Committee which shall meet 

with the Trade Practice Committees appointed under such other 

codes as may be related to the industry for the purpose of formulating fair trade practices to govern the relationships between employers under this Code and under such other codes to the end that 

such fair trade practices may be proposed to the Administrator 

as amendments to this Code and such other codes. 

(i) To provide appropriate facilities for arbitration, and subject 

to the approval of the Administrator, to prescribe rules or 1?rocedure and rules to effect compliance with awards and determinations. 

ARTic LE VII-CosT AND PRICE CuTTING 

SECTION 1. The standards of fair competition for the industry 

with reference to pricing practices are declared to be as follows: 

(a) Wilfully destructive price cutting is an unfair method of 

competition and is forbidden. Any member of the Industry or of 

any other industry or the customers of either may at any time complain to the Code Authority that any filed price constitutes unfair 

competition as destructive price cutting, imperiling small enterprises or tending toward monopoly or the impairment of code wages 

and working conditions. The Code Authority shall within five ( 5) 

days afford an opportunity to the member filing the price to answer 

such complaint and shall within fourteen (14) days make a ruling 

or adjustment thereon. If such ruling is not concurred in by either 

party to the complaint, all papers shall be referred to the Research 

and Planning Division of N .R.A. which shall render a report and 

recommendation thereon to the Administrator. 

(b) When no declared emergency exists as to any given product, 

there is to be no fixed minimum basis :for prices. It is intended that 

sound cost estimating methods should be used and that consideration should be given to costs in the determination of pricing policies. 

(c) When an emergency exists as to any given product, sale below the stated minimum price of such product, in violation of 

Section 2 hereof, is forbidden. 

SECTION 2. Emergency Provjsions: 

(a) If the Administrator, after investigation shall at any time 

find both (1) that an emergency has arisen within the industry adversely affecting small enterprises or wages or labor conditions, or 

tending toward monopoly or other acute conditions which tend to 

defeat the purposes of the Act; and (2) that the determination of 
96 

th stat d minimum price for a sp ifi d l?roduct within the indu try 

for a· limited perio l is nece ary to m1tirrat the c n i ion ontitutin<Y uch mero-ency and to effectuat the purpo of the Act, 

th o uthority may au e an impartial a n y to inve tio·at 

co t an l to r ommen to th Administrator a d termination f 

he stated minimum price of the produ t air ted by the mer()' n y 

an l thereup n the Adn1ini trator may I roc J to determine such 

tate l minimum price. 

(b) ""11 n the administrator shall have determin uch stated 

minimum price for a specified product for a tat d p rio which 

price hall be reasonably calculated to mitigate the condition of 

uch emero-ency and to effectuate the purpo es of the ational Inclu trial Recovery Act, he shall publish such pric . Th reaft r .. during uch stated period, no member of the Indu try hall sell uch 

specified products at a net realized price below said tated minimum 

I rice and any such sale shall be deemed de tructive price cutting. 

From time to time, the Code Authority may recommend review or 

reconsi leration or the Administrator may cause any determinations 

hereunder to be reviewed or reconsidered and appropriate action 

taken. 

ARTICLE VIII- OPEN PRICE 

SECTION 1. Each member of the Industry shall file with a confidential and disinterested agent of the Code Authority, or if none, 

then with such an agent designated by the Administrator, identified 

lists of all of his prices, discounts, rebates, allowances and all other 

terms or conditions of sale, hereinafter in this Article referred to 

as "price terms", which lists shall completely and accurately conform to and represent the individual pricing practices of said member. Such lists shall contain the price term for all such standard 

products of the industry as are sold or offered for ale by aid 

member and for such non-standard product of said member as 

hall be designated by the Code Authority. aid price term shall 

in the fir t in tance be filed within thirt (30) day after the date 

of approval of thi£ provision. Price term and revised price terms 

hall become effecti\e in1mediately upon r c ipt ther of by said 

ao- nt. Immediately upon receipt thereof, aiel ag nt hall by telegraph or other equally prompt mean notif aid memb r of the 

time of uch re eipt. Such li ts and revi i llS tog th r with the 

ff tive time thereof ·hall upon l mand imme 1at lv be made 

available to any member of +he In iu tr r an t all of th ir u - tomer. who have applied ther for an l huYe off red to d fray the 

o.t a tnally incurr 1 by the ode Authority in th prer aration 

and di tribution th reof an l b available for in p ti n y an~ of 

th ir u tomers at the office of such a nt. Th od \..uthority 

c::hall n aintain a perman nt fil e of all pri t rm fil ll a her in 

prO\'iclecl, and shall not d strov any part of u h r ·orcl . cept 

upon writt n onsent of the A lmini trator. pon r que. t the C c1 

Authority shall furnish to th Aclmini tr tor or any dnly le ignatea arrent of the Aclmini. trn.tor copi . of any uch list· or 

revision of price term . 
97 

SEcTION 2. When any member of the Industry has filed any 

revisions, such member shall not file a higher price within sixty 

{60) days. 4 

SECTION 3. No member of the Industry shall sell or offer to sell 

any products of the industry, for which price terms have been filed 

pursuant to the provisions of this Article, except in accordance 

with such price terms. 

SECTION 4. No member of the Industry shall enter into any agreement, understanding, combination or conspiracy to fix or maintain 

price terms, nor cause or attempt to cause any membBr of the 

Industry to change his price terms by thB use of intimidation, 

coercion, or any other influence inconsistent with the maintenance 

of the free and open market which it is the purpose of this Article 

to create. 

ARTICLE IX-TRADE PRACTICES 

The following practices constitute unfair methods of competition 

and are prohibited : 

SEcTION 1. No member of the Industry shall offer or make any 

payment or allowance of a rebate, refund, commission, credit, unearned discount or excess allowance other than of a legitimate nature 

us given in published price lists and/or discount sheets, whether in 

the form of money or otherwise nor shall a member of the Industry 

secretly offer or extend to any customer any special service or privilege not extended to all customers of the same class, for the purpose 

of influencing a sale. 

SECTION 2. To accept an order for an artificial limb by agreeing 

to credit the payment of a deposit already made to another manufacturer; or to deduct the amount of the deposit paid to another 

manufacturer from the price of a limb, or to cause a person who 

has already placed a bona fide order for an artificial limb with another manufacturer to cancel such order, is prohibited. 

SEcTION 3. No member of the Industry or his agent shall publjsh 

any advertising or utter any statement which refers inaccurately 

in any material particular to his products or to any competitors or 

their goods, prices, values, credits, terms, policies or services. Nor 

shall any member of the Industry exhibit or cause to be exhibited 

samples or alleged samples of a competitor's products. 

SECTION 4. The Code Authority shall within thirty (30) days 

after the effective date of this Code e tablish an order form and 

warranty which shall be capable of uniform application through- out the Industry which shall be submitte<1 to the Administrator and 

upon his approval thereof shall be used by every member of the 

Industry. 

ARTICLE X-Th1oDIFICATION 

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

made subj ect to the right of the Pre ident, in accordance with the 

provisions of Subsection (b) of Section 10 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. 

4 Amended-See paragraph 2 ( 4) of order approying this Code. 
UNIVERSITY OF FLORIDA 

lll ll llllllllllllllllllllll llllllllll llllllllllllll llllllll llll l 

98 3 1262 08585 307 4 

E TI N 2. ThL ode e.· to pro i i n requir d by the 

mod if1 'd on th ba. i f . ·r eri n e r hanges in cirumstan , . uch mmlifi ·ntion t bn. tl ur on appli ati n to the 

Admini trat r an(l .u·h notic an 1 h aring a h hall pecify, 

and t ff ctiY on appr Yal f the Pr ·idcnt . 

.. \.nn 'LE ... ~I-}fo. "OPOLIE 

pr Yi ~ion of thi · o 1 . sh. ll be o applied as top rmit mon pr mmu 1 oli:tic pra ti e or to liminate, oppre ::,, or eli crimagnin. t ..:mall enterpri e . 

\. HTI LE .... .,..II-Pnr E !NCRE ~SES 

""1u'r 'a the policy of the A t to incrc e r al purcha ing power 

\\ill b mad more difficult of con ummation if prices of goods 

and lTic incrca e a rapidly a wage , it is recognized that price 

incr a e xcept u h n n1ay be required to meet individual co t 

should be ela cd but when made such increa e should so far as 

p ibl , be limited to actual additional increases in the ellers' 

c t. 

ARTICLE XIII-EFFECTIVE DATE 

Thi Code will become effective on the third ~1onday after its 

approval by the President. 

Appro\ ed Code No. 514. 

Registry No. 1602--02. 

0