Approved Code No. 371 Registry No. 1608-02B 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

SANITARY MILK BOTTLE 

CLOSURE INDUSTRY 

AS APPROVED ON 

I ' 

WE -DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

( 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents 
This publication is for sale by the Superintendent of Documents, Government 

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

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

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St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif.: 310 Customhouse. 

Seattle, vVash.: 809 Federal Office Building. 
Approved Code No. 371 

CODE OF FAIR COMPETITION 

FOR THE 

SANITARY MILK BOTTLE CLOSURE INDUSTRY 

As Approved on March 26, 1934 

ORDER 

APPROVING ConE OF FAIR CoMPETITION FOR THE SANITARY MILK 

BoTTLE CLosURE INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

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

Fair Competition for the Sanitary Milk Bottle Closure Industry, 

and hearings having been duly held thereon and the annexed report 

on said Code, containing findings with respect ther·eto, having been 

made and directed to the President, 

NOW, THEREFORE, on behalf of the President of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the 

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

30, 1933, and otherwise; do her·eby incorporate by reference said 

annexed report and do find that said Code complies in all respects 

with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Code 

of Fair Competition be and it is hereby approved; provided, however, that the provisions of Article VI, Sections 2 to 9 inclusive, 

insofar as they prescribe a waiting period betwe·en the filing with 

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

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

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

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

as I may designate, and that any order which I may make after 

such hearing shall have the effect of a condition on the approval 

of this Code. 

HuGH S. JoHNSON, 

Administrator for Industrial R ecovery. 

Approval recommended: 

GEo. L . . BERRY, 

Division A d1ninistrator. 

'VASIIINGTON, D.C., 

11! arch 26, 1934. 

49138°-42!'5-163-34 (581) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The W kite House. 

Sm: This is a report of the hearing on the Code of Fair Competition for the Sanitary :Milk Bottle Closure Industry, conducted 

Ill vVashington on November 29, 1933, in accordance with the provisions of Title I of the National Industrial Recovery Act. 

HOURS .AND W .AGES 

This 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 n1ade in regard 

to non-productive 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 40¢ per hour 

for males and 35¢ per hour for fen1ales. Office employees will 

rec('ive a minimum wage of $16.00 per week. 

OPEN PRICE PLAN 

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

except to meet competition, is prohibited. 

OTHER PROVISIONS 

Provi ion is made for furnishing the Administrator with such 

statistical data as he may require. 

ECONOMIC EFFECT OF THE CODE 

The Industry employed in 1929 approximately 3'00 persons and 

about the same number in 1933 with an increase of two plants between 

the latter year and 1930. To maintain the level of production of 

the week of March 18, 1933 when over 35% of the factory employees 

worked an average of 45 hours or more the effect of the Code will 

be to require 10% more employees. 

FINDINGS 

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

having found as herein set forth, and on the basis of all the proceedings in this matter 

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 

(582) 
583 

c.ommerce 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 actwn among the trade 

groups, by inducing and maintaining united action of 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 as may be 

temporarily required),- by increasing the consumption of industrial 

and agricultural products through increasing purchasing power, 

by reducing and relieving unemployment, by improving standards 

of labor, and by otherwise rehabilitating industry. 

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

(c) The Code as approved complies in all respects with the 

pertinent provisions of said Title of said Act, including without 

limitation Subsection (a) of Section 3, Subsection (a) of Section 7, 

and Subsection (b) of Section 10 thereof; and that the applicant 

Association is an industrial Association truly representative of the 

aforesaid Industry; and that said Association imposes no inequitable 

restrictions on admission to men1bershi p therein. 

(d) The Code is not designed to and will not permit monopolies 

or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 

small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 

not been deprived of the right to be heard prior to approval of 

said Code. 

For these reasons this Code has been approved. 

Respectfully, 

MARCH 26, 1934. 

HuGHS. JoHNsoN, 

Adrninistrator. 
CODE OF FAIR COMPETITION FOR THE SANITARY 

MILK BOTTLE CLOSURE INDUSTRY 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following is he1~eby established as a Code of Fair 

Competition for the above named Industry and shall be binding on 

every member thereof. 

ARTICLE I-DEFINITIONS 

The following words are used in this Code with the meaning 

herein set forth : 

"Industry " : The manufacture of sanitary milk bottle closures, 

and including the manufacture, sale or lease, by the manufacturer of 

such clo ures, of machinery for applying same. 

"Member": A natural person, partnership, corporation, association, trust, trustee, trustee in bankruptcy, r~ceiver, or other form 

of enterprise, engaged in such Industry. 

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

"Administrator": The Administrator for Industrial Recovery 

under Title I in the Act. 

ARTICLE II-ORGANIZATION AND Am.\nNISTRATION 

SEcTION 1. There shall forthwith be constituted a Code Authority 

of the Sanitary l\1ilk Bottle Closure Industry which shall consist of 

three (3) per ons elected at an Industry meeting called for such purpose within fifteen (15) days after the approval of this Code. 

SEcTION 2. The Chairman of the Code Committee shall notify all 

known members of the Industry of such meeting at least ten (10) 

day. prior thereto. 

SECTION 3. In addition to the membership as provided in Section 1 

of this Article, the Administrator may designate one or more persons 

to serve on the Code Authority for such term as he may fix. The 

person or persons so designated shall have no vote and shall serve 

without compensation from the Industry. 

SECTION 4. Each trade association directly or indirectly participating in the selection or activities of the Code Authority shall (1) 

impo c no inequitable restrictions on membership and (2) submit 

to the Administrator true copies of its articles of association, by-laws, 

regulation and any amendments when made thereto, together with 

such other information as to membership, organization and activities 

as the Admini trator may deem necessary to effectuate the purposes 

of the Act. 

SECTION 5. In order that the Code Authority shall at all 6mes be 

truly representative of the Industry and in other respects comply 

with the provi ions of the Act, the Admini tr·ator may prescribe such 

(584) 
585 

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 contra.ry to the public interest, the Administrator 

may require that such action be suspended to afford an opportunity 

for investigation of the merits of such action and further consideration by the Code Authority or agency pending final action which 

shall not be effective unless the Administrator 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 7. The Code Authority shall use such trade associations 

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 8. 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 a sent to this Code. 

SECTIO~ 9. The Code Authority may appoint a Trade Practice 

Corrnnittee to 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 

between 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 10. 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 rea sonable 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 willful misfeasance or non-feasance. 

ARTICLE III-HoURs OF LABOR 

SE~TION 1. Employees in the Industry shall not be required or 

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

following schedule: 

SCHEDULE OF WORKING HOURS 

(a) \Vatchmen: Fifty-six (56) hours in any one week but· not 

more t~an six (6) days in any seven (7) day P.eriod; or fifty-six (56) 

hours 1n any one week, but not more than e1ght ( 8) hours in any 

one day. 
586 

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

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

not to exceed fifty-four (54) hours in any one week, 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 less 

than time and one-third. 

(c) Engineers, firemen and electricians: One hundred sixty-eight 

(168) hours in any period of four (4) consecutive weeks, but not to 

exceed fifty-four (54) hours in any one week, 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 less 

than time and one-third. 

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

in any plant, mill or factory, or on work connected with the operation 

of such plant, mill or factory: Eight (8) hours in any one day and 

forty ( 40) hours in any one week, provided, however, that these 

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

calendar year, provided, that all time worked in excess of eight (8) 

hours in any one day or forty ( 40) hours in any one week shall be 

paid for as not less than time and one-third, and provided, further, 

that no employee shall be required or permitted to work in excess of 

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

week. 

(e) Executives and oth~r employees regularly engaged in a supervi. ory capacity and receiving thirty-five ($35.00) dollars or more 

per week, outside salesmen and outside servicemen : No limitation. 

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

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

of eight (8) consecutive weeks. 

SECTION 2. No limitation contained in said schedule shall apply to 

mployees of any class when engaged in emergency repairs or emergency maintenance work occasioned by breakdowns or involving 

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

worked in excess of the limitations prescribed in said schedule shall 

be paid for at not less than time and one-third. 

SECTION 3. No employer shall permit any employee to work for 

any time which, when totaled with that already performed with another employer or employers in this Industry, exceeds the 1naximum 

permitted herein. 

SECTION 4. No female employee shall be required or permitted to 

work between the hours of 10: 00 P.M. and 6: 00 A.M. 

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

(b), (c), (d) and (f) of this Article shall be required or permitted 

to work more than six (6) days in any seven (7) consecutive days. 

ARTicLE rv-vv AGEs 

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 follow : Male labor, 40 cents per hour; 

Female labor, 35 cents per hour. 
587 

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

employee shall be sixteen ($16.00) dollars per week. Part-time employees covered by the provisions of this Section shall be paid at 

the rate of not less than forty ( 40¢) cents per hour. 

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

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

SECTION 4. Female employees performing substantially the same 

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

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

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

are employed. 

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

minimum rates herein prescribed shall be reviewed and equitably 

adjusted, provided that such adjustments have not already been made 

in anticipation of the approval of this Code, and provided, further, 

that in no case shall such adju tments decrea e the wage rates paid 

such employees. VVithin sixty (60) days after the effective date 

hereof, the Code Authority shall report to the Administrator the 

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

SECTION 6. Office boys and girls under eighteen (18) years 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 wage 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. 

SECTION 7. A person who e earning capacity is limited because of 

age, physical or mental handicap or other infirmity, may be employed on light work at a wage below the minimum establi ·heel by 

this Code if the employer obtains from the State authority, designated by the United States Department of Labor, a certificate authorizing such person's employment at such wage and for such hours as 

shall be stated in the certificate. Such authority shall be guided by 

the instructions of the United States Department of Labor in issuing 

certificates to such persons. Each employer shall file monthly with 

the Code Authority a list of all such persons employed by him, showing the wages paid to and the maximum hours of work for such 

employees. 

ARTICLE V-GENERAL LABOR PROVI IONS 

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

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

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

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

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

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

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

the required age. 

SECTION 2. Employees shall have the right to organize and bargain 

collectively through representatives of their own choosing and shall 
588 

be free from the interference, restraint or coercion o£ employers of 

labor, or their agents, in the designation of such representati Yes or 

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

of collective bargaining or other mutual aid or protection. 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. Employers shall comply with the maximum hours of 

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

approved or prescribed by the President. 

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

or Federal law which imposes on employers more stringent requirements as to age of employees, wages, hours of work, or as to safety, 

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

protection, than are Imposed by this Code. 

SECTION 4. No employer shall reclassify employees or duties of 

occupations performed or engage in any other subterfuge for the 

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

Code. 

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

V of this Code in conspicuous places accessible to employees. 

SECTION 6. Every employer shall make reasonable provisions for 

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

hours of their employment. Standards for safety and health shall 

be submitted by the Code Authority to the Administrator within 

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

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

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

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

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

plan for the stabilization and regularization of employment. 

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

ARTICLE VI 1-AccouNTING--SELLING 

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

accounting system and methods of cost finding and/or estimated capable of use by all members of the Industry. After such system and 

methods have been formulated and approved by the Administrator, 

full details concerning them shall be made available to all members. 

Thereafter all members shall determine and/or estimate costs in 

accordance with the principles of such methods. 

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

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

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

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

known members of the Industry who manufacture such products not 

less than thirty (30) days prior to the date so fixed. 

1 See paragraph 2 of order approving tbis Code. 
589 

SECTION 3. At least ten (10) days prior to such date, every uUCh 

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

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

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

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

lowest 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 deliver, 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 state the lmvest price 

and the mo t 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 earlier date as the member filing the same shall fix. 

SECTION 6. The Code Authority shall promptly supply all members 

of the Industry who manufacture any particular product with copies 

of all schedules, revised schedules, and notices of withdrawal, "·hich 

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 .... che lule 

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

any member may file a revi eel schedule conforming as to price and 

terms to the schedule of such other member and effective on th e same 

date, or he may notify the Code Authority that he adopts as hi own 

the schedule of uch 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 price. and terms of sale filed bv 

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

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

determined in the manner provided in Section 11 hereof, provided, 

however, that any member may by notice to the Code Authority, 

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

Such adoption shall bec01ne automatically void upon the withdra,1al 

or revision upward of the price adopted. 

SEcTION 8. No Inember, 'vho 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 
590 

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 m.adb 

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

members. 

SECTION 10. No member shall sell any product of the Industry f01 

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

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

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

Section. 

SECTION 11. Cost, for the purposes of this Article, shall be determined pursuant to the method of 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 mmnber shall upon the request of the Code 

Authority furnish a designated agency of the Code Authority, ih 

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, 

price, 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 prevent 

the disposition of distress merchandise required to be sold to liqJJ.idate 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 a member shall publish with the Code Authority, 

prior to the sale thereof. . SECTION 14. Nothing herein contained shall be construed to prevent 

the fulfillment of a bona fide contract existing on the effective date 

of this Code. 

ARTICLE VII-REPORTS AND STATISTICS 

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

agent designated by the Code Authority at such times and in such 

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

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

units and dollars, orders received, unfilled orders, stocks on hand, inventory both raw and finished, number of employees, wage rates, 

employee earnings, hours of work, and other matters, as the Cod2 

Authority or the Administrator may from time to time require. 

SECTION 2. Except as otherwise proYided 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 mem.ber shall not be revealed 

to another member. No such data or information shall be published 
591 

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

as to avoid the disclo ure 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 addition to information required to be submitted to 

the Code Authority there shall be furnished to Government Agencies 

such statistical information as the Administrator may deem necessary 

for the purposes recited in Section 3 (a) of the Act. Nothing contained in this CoJe shall relieve any member of any exi ting obligations to furnish reports to any Government Agency. 

ARTICLE VIII-MoNOPOLIES 

SEc'.riON 1. No provision of this Code shall be so applied as to 

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

or discriminate against small enterprises. 

ARTICLE IX-RECOl\fMENDATIONS 

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 line : 

(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 an increase or decrease in the number of Industry members of the Code Authority andjor for a change in the method of 

choosing such members. 

SECTION 2. For the purpose of assisting the Code Authorit} of 

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

such Industries, the Code Authority shall consider the advisability of 

erecting a Joint Industrial Relations Board for such Industries and 

shall report its recommendations to the Administrator. 

SECTION 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 constituted 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 jn regard to that which is sold or its selling price by false or misleading 

description, statement, record, or undisclosed consideration. 

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

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

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

breach of a competitor's contract. 
592 

(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 business of the employer of such employee, the 

principal of such agent or the represented party, without the knowledge of such employer, principal or party. The foregoing provision 

shall not be construed 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 ship goods on consignment, 

except under circumstances to be defined by the Code Authority 

where peculiar circumstances of the Industry require the practice. 

SEcTioN 2. The following practices are hereby prohibited: 

(a) Contracts lacking mutuality-quantity or blanket contracts 

that are not limited to time or quantity. The making of quantity 

contracts with the buyer without obligation on the part of the buyer 

to take delivery of the q_uantity produced and used for the purpose of 

securing or giving special price. · 

(b) False billing-the practice of invoicing a less quantity than 

the actual amount shipped. Withholding from the invoice facts 

which make the invoice a false record. Allowing unearned discounts; allowing secret rebates and settlements. 

(c) Misrepresentation-making of false reports or incorrect reports regarding a competitor's products, financial or personal standing, including without limitation, reports to Governmental or Health 

authorities concerning the product of a competitor. 

ARTICLE XI-GENERAL PROVISIONS 

SECTION 1. If any member is also a member of another industry, 

the provisions of this Code shall apply to and affect only that part 

of his business which is included in this Industry. 

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

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

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

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

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

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

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

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

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

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

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

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

of this Code or any conditions imposed by him upon his approval 

thereof. 

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

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

the United States. 

Approved Code No. 371. 

Registry No. 1608-02B. 

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UNIVERSITY OF FLORIDA 

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