Approved Code No. 142 Registry No. 1631-11 

• 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

RETAIL JEWELRY TRADE 

I A I. t 

AS APPROVED ON NOVEMBER 27, 1933 

BY 

PRESIDENT ROOSEVELT 

WE DO OUR PART 

0 -:- =:.:. .. ~ 1. Exe utive Order 1, - ---

U.S. DEP08tT 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1933 

For sale by the Superintendent of Documents, Washington, D.C. - - - - • - - - Price 5 cents 
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Seattle, Wash.: 809 Federal Building. 

• 
Approved Code No. 142 

CODE OF FAIR COMPETITION 

FOR THE 

RETAIL JEWELRY TRADE 

As Approved on November 27, 1933 

BY 

PRESIDENT ROOSEVELT 

Executive Order 

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

compliance with the provisions of title I of the National Industrial 

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

of Fair Competition for the Retail Jewelry Trade, and hearings 

having been held thereon and the Administrator having rendered 

his report containing an analysis of the said code of fair competition 

together with his recommendations and findings with respect thereto, 

and the Administrator having found that the said code of fair competition complies in all respects with the pertinent provisions of title 

I of said act and that the requirements of clauses (1) and (2) of subsection (a) of section 3 of the said Act have been met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 

United States, pursuant to the authority vested in me by title I o:f 

the National Industrial Recovery Act, approved June 16th, 1933, 

and otherwise, do adopt and approve the report, recommendations 

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

of fair competition be and it is hereby approved. 

Approval recommended: 

HUGHS. JOHNSON, 

Administrator. 

THE vV HITE HousE, Novernb e1· 27, 1933. 

FRANKLIN D. ROOSEVELT. 

(517) 

23791°-244-110-33 
NOVEMBER 17, 1933. 

The PRESIDENT, 

The ll hite House. 

Srn: This is a report of the Hearing on the Code of Fair Competition for the Retail J ewelry Trade conducted at the United States 

Chamber of Comn1erce, on November 10 1933, in accordance with the 

provisions of the National Industrial Recovery Act. The Code which 

is attached was presented by duly authorized and qualified representatiYes of the Trade, complying with the statutory requirements, 

said to repre ent approximately 3,500 retail jewelers or 80% in number and 95% in Yolume of sales of the Trade. 

THE TRADE 

Complete stati tics on the Retail Jewelry Trade are contained in 

the Census of Retail Distribution, 1930, conducted by the United 

States Department of Commerce, Bureau of the Census. 

According to this source there were in 1929, 19,998 retail jewelry 

establishments, which figure includes a large number of single 

proprietorships, service and repair establishments. The Jewelers' 

Board of Trade New York, New York, states that it has credit 

ratings for only 12,000 jewelers in the United States, with a merchan<lise inventory of $1,000 or more, which would indicate that 

approximately 40% of those classified as retail jewelers carry inventory of less than $1,000. 

According to the Census figures the total net sales of retail jewelry 

establishments were $536,280,697 in 1929. Sales in 1932 are estimated to have been annroximately 70% less than in 1929. 

The number of employees in the retail jewelry establishn1ents 

included in the Census are given as follows: 

Nu,mber of Employees, 1929 

Full time _______________________________________________ 38, 273 

Part time____________________________________________ 7, 321 

Total _____________________________________________ 45,594 

Proprietors and firm members not on pay rolL _________ 19, 982 

It is estimated that the number of employes in 1932 was approximately 25% less than the number in 1929. 

PROVISIONS OF THE CODE 

Labol' Provision .-The hour and wage provisions of the Code are 

sub tantially the same as those adopte l and a pprovecl in the Code of 

Fair Competition for the Retail Trade. The only departures from 

the Retail Code are as follows: 

( 518 ) 
519 

(1) A more elastic provision for the reduction of store hours for 

the summer months to conform with the practices in the Trade. 

(2) A slightly more elastic provision for peak periods to allow 

for peculiar requirements of the jewelry trade. 

(3) A provision for suspension of maximum store hours in cases 

of emergency or to allow the completion of a transaction with a 

specific customer. 

( 4) A departure from the provisions of the Retail Code regarding 

the limitations upon number of persons working unrestricted hours 

to allow for one additional worker employed in a managerial capacity 

to qualify under this section. 

It is expected that improvement in employment conditions similar 

to that resulting from the Retail Code will obtain under this Code. 

Administration.-Administration of the Code is to be accomplished 

by a National Code Autho,rity and local committees which shall 

cooperate with the Code Authority administering the Retail Code. 

Provision is made for reports to the Administrator and investigations by the Code Authority of trade problems which may arise. 

Trade Practices.-Trade Practice provisions of the Code are unusually excellent and eminently fair. The provisions are designed to 

establish a common terminology and a definite set of standards or 

measures for the Retail Jewelry Trade, and to prohibit a number of 

parasitic and deceptive practices in the trade. The clauses supply a 

much needed and heretofore lacking common standard o:f quality and 

terminology to be used in the trade and giving a uniform measuring 

rod for the testing of retail jewelers' wares and practices. 

The enforcement of the trade practice provisions should result in 

extra high standards of competition in this Trade with the consequent protection of the interests of the consuming public. 

FINDINGS 

I find that-

(a) This Code complies in all respects with the pertinent provisions of Title I of the Act, including without limitation subsection 

(a) of Section 7 and subsection ( b) of Section 10 thereof. 

(b) The American National Retail Jewelers Association to be 

truly representative of the Retail Jewelry Trade. The By-laws of 

this Association :provide no inequitable restrictions to membership. 

( c) The Code 1s not designed to promote monopolies or to eliminate or oppress small enterprises and will not operate to discriminate 

against them and will tend to effectuate the policy of Title I of the 

National Industrial Recovery Act. 

I recommend that the Code be approved. 

Respectfully, 

HUGH s. JOHNSON' 

Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

RETAIL JEWELRY TRADE 

To effectuate the policies of Title I of the National Industrial 

RecoYery Act the following provisions are established as a Code of 

Fair Competition for the Retail Jewelry Trade. 

ARTICLE I-DEFINITIONS 

1. Retail J ewelry Trade.-The term "retail jewelry trade" as 

used herein shall mean all selling to the consumer, and not for the 

purpose of resale in any form, of jewelry as defined herein or services 

or repairs to jewelry, in the continental United States, excluding the 

Panama Canal Zone. 

2. R etail J eweler.-The term "retail jeweler" as used herein shall 

mean any individual or organization engaged wholly or partially in 

the retail jewelry trade. 

3. Retail Jewelry Establishment.-The term "retail jewelry establishment" as used herein shall mean any store or department of 

a store engaged in the retail jewelry trade, but shall not include 

stores or departments in which the principal business is the selling 

at retail of products other than jewelry, or services or repairs to 

jewelry. 

4. J ewelry.-The term "jewelry" as used herein shall mean diamonds and other precious and semiprecious stones, pearls, cultured 

pearls, synthetic stones, and any imitations of any of these articles, 

articles for personal wear and adornment of any character whatsoever commonly and commercially known as "jewelry", watches~ 

clocks, silverware, goldware, and precious metal ware of the platinum group, and wares plated with any of the precious metals. 

5. Employee.-The term "employee" as used herein shall mean 

any person employed by any retail jeweler but shall not include 

persons employed principally in the selling at retail of products not 

included within the definition of retail jewelry trade. 

6. Definitions of Personnel.-(a) Executive: The term "executive" as used herein shall mean an employee responsible for the 

management of a business or a recognized subdivision thereof. 

(b) Professional Person.-The term "professional person" as 

used herein shall mean lawyers, doctors, nurses, research technicians, 

advertising specialists and other persons engaged in occupations 

requiring a special discipline and special attainments. 

(c) Outside Sales1nen.-The term ' out ide salesmen" as used 

herein shall mean a salesman who is engaged not less than sixty (60) 

percent of his working hours outside the establishment, or any 

branch thereof, by which he is employed. 

(520) 
521 

( d) Outside Oollector.-The term "outside collector" as used 

herein shall mean a collector of accounts who is engaged not less 

than sixty ( 60) percent of his working hours outside the establishment, or any branch thereof, by which he is employed. 

( e) W atch11ien and Guards.-The terms " watchmen " and 

"guards" as used herein shall mean employees engaged primarily in 

watohing and safeguarding the premises and property of a retail 

establishment. 

(f) Store Detective.-The term "store detective" as used herein 

shall mean an employee engaged exclusively in detective work. 

(g) Maintenance E1nployee.-The term "maintenance employee" 

a,s used herein shall mean an employee essential to the upkeep and/or 

preservation of the premises and property of a retail establishment. 

(h) Outside Service Employee.-The term "outside service employee" as used herein shall mean an employee engaged primarily 

in delivering, installing, or servicing merchandise outside the establishment, and shall include stable and garage employees. 

(i) Junior Employee.-The term "junior employee" as used 

herein shall mean an employee under eighteen (18) years of age. 

(j) Apprentice Employee.-The term "apprentice employee" as 

used herein shall mean an employee with less than six (6) months 

experience in the retail Jewelry trade. 

(k) Part-time Employee.-The term "part-time employee" as 

used herein shall mean an employee who works for less than the 

maximum work week. 

7. South.-The term" South" as used herein shall mean Virginia, 

West Virginia, Maryland, North Carolina, South Carolina, Georgia, 

Florida, Kentucky, Tennessee, Alabama, Mississippi, Arkansas, 

Louisiana, Oklahoma, New Mexico, Texas, and the District of 

Columbia. 

8. Population.-Population shall be determined by reference to 

the Fifteenth Census of the United States (U.S. Departnient of 

Commerce, Bureau of Census, 1930). 

ARTICLE II-EFFECTIVE DA TE 

The effective date of this Code shall be the second Monday after 

its approval by the President of the United States. 

ARTICLE III-GENERAL LABOR PROVISIONS 

1. Collective Bargaiining.-(a) Employees shall have the right to 

organize and bargain collectively through representatives of their 

own choosing, and shall be free from the interference4 restraint, or 

coercion of employers of labor, or their agents, in the designation of 

such representatives or in self-organization or in other concerted 

activities for the purpose of collective bargaining or other mutual 

aid or protection. 

(b) No ern.ployee 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. 
522 

(c) Employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions of employment, approved or prescribed by the President. 

2. Child Labor.-On and after the effective date of this Code no 

person under the age of sixteen (16) years shall be employed except 

that per ons fourteen (14) and fifteen (15) years of age may be 

employed either-

(a) For a period not to exceed three (3) hours per day on six (6) 

daJs per week, or 

(b) For one day per week, such day not to exceed eight (8) hours. 

In either case all such hours of work shall be between 7 a.m. and 

7 p.m. and shall not conflict with the employee's hours of day school. 

It is provided however that no person under the age of sixteen (16) 

years shall be employed in delivering merchandise from motor 

vehicles. 

It is further provided that where a State Law prescribes a higher 

minimum age no per on below the age specified by such State Law 

shall be employed within such State. 

ARTICLE IV-STORE HOURS AND HOURS OF LABOR 

1. Basic Sto1·e and lVorking H ours.-On and after the effective 

date of this Code establishments in the retail jewelry trade shall elect 

to operate upon one of the following schedules of store hours and 

hours of labor : 

Gro11Yp A.-Any establishment may elect to remain open for business less than fifty-six (56) hours but not less than fifty-two (52) 

hours per week, unless its store hours were less than fifty-two (52) 

hours prior to June 1, 1933, in which case .such establislunent shall 

not reduce its store hours; no employee of these establishments shall 

work more than forty (40) hours per week, nor more than eight (8) 

hours per day, nor more· than six (6) days per week. 

Groi1,p B.-Any e tablishment may elect to remain open for business fifty-six (56) hours or more per week but less than sixty-three 

( 63) hours per week; no employee of such establishment shall work 

more than forty-four ( 44) hours per week, nor more than nine ( 9) 

hours per day, nor more than six (6) days per week. 

Growp 0.-Any e tablislunent may elect to remain open for business sixty-three ( 63) hours or more per week; no employee of such 

establi hment shall work more than forty-eight ( 48) hours per week, 

nor more than ten (10) hours per day, nor more than six (6) days 

per week. 

No employee shall work for two or more establishments a greater 

number of hours, in the aggregate, than he would be permitted to 

work for that one of such establishments which operates upon the 

lowest schedule of working hours. 

No employee not included in the foregoing paragraphs, and not 

specifically excepted hereinafter, shall work more than forty ( 40) 

hours per week, nor more than eight (8) hour per day, nor more 

than six ( 6) days per week. 

2. Schedule of Hours to be Posted.-On or within one week after 

the effective date of thi Code every retail e tablishment shall de ignate under which of the Groups set forth in the preceding Section 

it elects to operate and hall post and maintain in a con picuous place 
523 

in the establishment a copy of such election showing its store hours 

and employee working hours. 

3. Changes in Store [lours ancl Employ e lVorlcing Hours.-(a) 

No establishment may change from the Group in which -it has elected 

to operate except upon December 31 of every year. 

(b) Any establishment, however, may at any time increase its store 

hours, provided it maintains the basic employee work week of the 

Group in which it originally elected to operate. 

( c) Any retail jewelry establishment may, during the months of 

May to September, inclusive, temporarily reduce its store hours, but 

the weekly wages of its employees shall not on that account be 

reduced. 4. Exceptions to 1na,.xini'um periods of labor.-(a) Professjonal 

persons, outside salesmen, outside collectors, watchmen, guards, and 

store detectives. The maximun1 periods of labor prescribed in Section 1 of this Article shall not apply to professional persons employed and working at their profession, or to outside salesmen, outside collectors, watchmen, guards, and store detect~ ves. 

(b) Maintenance and outside se1'1.,ioe employees.-The maximum 

periods of labor prescribe l in Section 1 of this Article shall not 

apply to maintenance and outside ervice employees; but such employees shall not work more than six (6) hours per week above 

the maximum hours per week otherwise· prescribed by Section 1 

unless they are paid at the rate of time and one third for all hours 

over such additional ix ( 6) hours per week. 

( c) Exec:utives.-Subject to the conditions set forth in Section 5 

o:f this Article, executives receiving $35.00 or more per week in cities 

of over 500,000 population, or receiving $30.00 or more per week in 

cities of 100,000 to 500,000 population, or receiving $27.50 or more 

per week in cities of 25,000 to 100,000 population, or receiving $25.00 

or more per week in cities, towns, villages, and other places under 

25,000 population, may work in excess of the maximum periods of 

labor prescribed in Section 1 of this Article. In the South executives 

paid not less than ten (10) percent below the wages just specified 

may work in excess of such maximum periods. 

(d) Peak periods.-At Christmas, inventory, and other peak times, 

for a period not to exceed five (5) weeks in the calendar year, an 

employee who e basic work week is forty (40) hours may work not 

more than forty-eight (48) hours per week and nine (9) hours per 

day; an employee whose basic work week is forty-four (44) hours 

may work not more than fifty-two ( 52) hours per week and nine and 

one half (91⁄2) hours per day; an employee whose basic work week is 

forty-eight (48) hours may work not more than fifty-six (56) hours 

per week and ten (10) hours per day. All such work may be without 

the payment of overtime. 

( e) The maximum hours prescribed in this Article shall not apply 

in cases of very special emergency where the limitation, if imposed) 

would preclude the satisfactory completion of a transaction with a 

specific customer, or the satisfaction of requirements as to reports 

to any F ederal, State, or Trade Agency, or in emergencies threatening damage or destruction to the plant or assets of retail jewelry 

establishments. 

23791°-244-110-33--2 
524 

5. Limitation upon n1umbe 1r of persons wo-rking unrestricted 

hours.-N otwith tanding the provisions of the foregoing sections of 

this Article, and regarclles of the number of persons otherwise permitted to work unre tricted hours, the total number of workers in 

any establishment (whether such workers are executives, proprietors, 

partners, perso1 snot receiving monetary ,,ages, or others') who shall 

be permitted to "·ork unrestricted hours shall not exceed the following 

ra.tio: In e ·tabli hments com.pri eel of twenty (20) workers or less 

the total number of workers who 1nay work unrestricted hours (not 

incluclincr those ,Yorker specified in Se tion 4 (a) of this Article) 

shall not exceecl one worker for every five ( 5) workers or fraction 

thereof; provid d that jn retail jewelry establishments with five or 

le ·s workers, two "TT'orkers qualifying under this section may, but only 

in a managerial capacity, work unrestricted hours; in e tablishments 

comprise 1 of more than twenty (20) workers the total number of 

workers "TT'ho may work unrestricted hours (not including those 

workers pecifie l in Section 4 (a) of this rticle) shall not exceed 

one worker for every five (5) workers for the first twenty (20) 

'i\Ork rs, and shall not exceed one worker for every eight ( 8) workers 

aboYe twenty (20). 

6. Hours of 1.vorlc to be consecuti-ve.-The hours worked by any 

emplo:, 0 e durincr each lay shall be consecutiYe, provided that an 

jnterYal not longei' than one hour may be allowed for each regular 

m al period, and such interval not counted as part of the employee's 

working time. Any re t period which may be given employees shall 

not be deducted from uch employee's working time. 

7. Extra working hour on one clav a week.-On one day each week 

employees may 'i\Ork one extra hour, but such hour is to be included 

within the maximmn hours permitted each week. 

8. Conflict with tate laws.-"'\Vhen any State law prescribes for 

any cla of employee shorter hours of labor than those prescribed 

in this Article, no employee include l within such class shall be employed within such State for a greater number of hours than such 

State allows. 

AnTICLE V-WAGES 

1. Basis schedule of ioages.- On and after the effective date of 

this Code, the minimum weekly rates of wage which shall be paid 

for a work "-eek as specified in Article IV-whether such wages are 

calculated upon an hourly, weekly, monthly, commission, or any 

other basis-shall, except as hereinafter provided, be as follows: 

(a) "'\Vi thin cities of over 500,000 population, no employee shall 

be paid le s than at the rate of $14.00 per week for a forty (40) 

hour work week, or le s than at the rate of $14.50 per week for a 

forty-:fonr ( 44) hour work "eek, or le than at the rate of $15.00 

per "eek for a forty-eight ( 48) hour work week. 

(b) "'\Vithin cities of from 100,000 to 500 000 population, no employee hall be paid le. s than at the rate of 13.00 per weel for a 

forty ( 40) hour work week, or le s than at the rate of 13.50 per 

week for a forty-four ( 44) hour work week, or less than at the rate 

of $14.00 per ,yeek for a forty-eicrht (4 ) hour w-ork week. 

( c) "'\Yithin cities of from 25,000 to 100,000 poi ulation, no employee shall be paid less than at the rate of 12.00 per week for a 
525 

:forty ( 40) hour work week, or less than at the rate of $12·.50 per 

week for a forty-four ( 44) hour work week, or le. s than at the rate 

of $13.00 per week for a forty-eight ( 48) hour work week. 

(cl) ,iVithin cities, towns, ,illage · of from 2,500 to 25,000 population, the wages of all clas es of employees shall be increased from the 

rates existing on June 1, 1933, by not less than t"enty (20) percent, 

provided that this hall net require an increase in wages to more than 

the rate of $11.00 per week and pro,ided further that no employee 

shall be paid le s than at the rate of $10.00 per week. · ( e) vVithin towns, villages, and other place ,vith less than 2,500 

population, the wages of all classes of employee shall be increa ed 

from the rates exiting on Jtu1e 1, 1933, by not less than twenty (20) 

percent, provide 1 that this ·hall not require an increase in wages to 

more than the rate of $10.00 per week. 

The minimum "ages paid to profe · ·ional per ·on·, outside . alcsmen, outside collectors, watchmen, guards, store letf'ctive , and 

maintenance and utside ervice employees shall be upon the ba is 

of the basic employee work week upon which the e tablishment by 

which they are employed ha elected to operate. 

The minimum wages of any employee not included in the foregoing paragraphs and not pecifically excepted hereinafter shall be 

upon the basis of a forty ( 40) hour work week. 

2. Jimiors ancl apprentices.-Junior and apprentice employees may 

Le paid at the rate of $1.00 le s per week than the minimum wage 

otherwi e applicable; it is provided, however, that no employee hall 

be classified both as a junior and as an apprentice employee and it is 

further provi led that the number of employees classified a junior 

and as apprentice employees, combined, shall not exceed a ratio of 

one such employee to every five employees or fraction thereof up to 

twenty (20), and one such employee to eYery ten (10) employees 

above twenty (20). 

3. Southern ioage cliff e1·ential.-In the South, within cities of over 

25,.000 population, the minimum ,Yages pre cribed in the foregoing 

sections may be at the rate of $1.00 less per we k; within cities, 

towns, and villages of from 2,500 to 25,000 population the wages of all 

classes of employees shall be increased from the rates existing on 

June 1, 1933, by not less than twenty (20) percent, provided that 

this shall not require an increase in wao·e. to more than the rate of 

$10.00 per week, and provided :further that no employee hall be paid 

less than at the rate of $9.00 p 0 r ·week except as provided in Section 

2 of this Article; within cities, town 3 , , illages, and other places un ler 

2.500 population the wages of all classes of employee shall be increased from the rates existing on June 1, 1933, by not less than 

twenty (20) percent., provided that this shall not require an increase 

in wages to more than the rate of $9.00 per week. 

4. Pa1°t-tim,e em,vloyees.-Part-time employees shall be paid not 

less than at an hourly rate proportionate to the rates prescribed _in 

the foregoing sections of this Article. 5. Weekly wages above rninim/11,1n not to be 1·editcecl.-The weekly 

wa.ges of .all clas e of employees receiving more than the minimum 

wages prescribed in this Article shall not be reduced from the rates 

existing upon July 15, 1933, notwithstanding any reduction in the 

number of working hours of such employees. 
526 

6. Oonfiict with State 7aws.--lVhen any State law prescribes for 

any class of employees of either sex a higher minimum wage ~han 

that pre cribed in this Article, no employee of such class of either 

sex employed within that State shall be paid less than such State 

law requires. 

ARTICLE VI-Lil\HTATIONS UPON PRICE INCREASES; PRICR CONTRACTS 

1. Lim,itations upon price increases.-No retail jeweler shall increase the price of any merchandise , old after the effective date df 

this Code over the price existing June 1, 1933~ by more than is made 

necessary by the amonnt of increases in production, operating, replacement, and/or inYoice costs of merchandise; and/or by taxes; 

and/or by other costs resulting from action taken pursuant to the 

National Industrial Recovery Act and/ or the Agricultural Adjustment Act since June 1, 1933, and in setting such price increases retail 

jewelers shall give full weight to probable increases in sales volume. 

It is provided, however, that if any price on June 1, 1933, was a distress price, an equitable adju tment may be made. 

2. Adjustm,ent of p1·ior confracts.-\Vhere costs of executing contracts entered into before June 1G, 1933, by any retail jeweler for the 

purchase of good at fixed prices for deliYery during the duration 

of this Code are increased by the application of the provisions of 

the National Indu trial Recovery Act and/ or the Agricultural Adjustment Act, it is deemed equitable and promotive of the purposes 

of the Act that appropriate adjustment of uch contracts to reflect 

such increased co. ts actually incurred be arrived at by mutual agreement or arbitral proceedings or otherwise, and the National Retail 

Jewelry Trade Council provided for in Article IX hereinafter is 

constituted an agency to a sist in effecting such adjustments. 

ARTICLE VII-Loss LIMITATION PROVISION 

1. Loss Li1nitation Provision.-In order to prevent unfair c~mpetition against local merchants, the use of the so-called " loss leader " 

is hereby declared to be an unfair trade practice. These "loss leaders., are articles often sold below cost to the merchant, which means 

the actual net deli,Terecl cost or current replacement cost whichever 

is lower, for the purpose of attracting trade. This practice results, 

of course, either in efforts by the merchant to make up the loss by 

charging more than reasonable profit for other articles, or else in 

driving the small merchant with little capital out of legitimate business. It works back against the producer of raw materials on farms 

and in Industry and against the labor so employed. 

This declaration against the use of " loss leaders ' by the storekeeper does not prohibit him from selling an article without any 

profit to himself. But the selling price of articles to the con. mner 

should include an allowance for actual wages 0£ store labor to be 

fixed and published from time to time by the Trade Authority 

hereinafter established. 

Such an allowance for labor need not be applied ·by retail 

jewelers doing bu iness only in communities of less than 2,500 population ( according to the 1930 Census) which are not part of a larger 

trade area. 
527 

Provided, however, That any retail jeweler may sell any article of 

merchandise at a price as low as the price set by any competitor in his 

trade area on merchandise which is identical or essentially the same, 

if such competitor's price is set in conformity with the foregoing 

provisions. A retail jeweler who thus reduces a price to meet a 

competitor's price as above defined shall not be deemed to have violated the provisions of this Section if such retail jeweler immediately 

notifies the nearest local retail jewelry trade committee as hereinafter 

provided in Article IX, Section 2 ( e) of such action and all facts 

pertinent thereto. 

2. Ewceptions.-(a) Notwithstanding the provisions of the preceding Section, any retail jeweler may sell at less than the prices specified above, merchandise sold as a bona fide clearance, if advertised, 

marked, and sold as such; imperfect or actually damaged merchandise, or bona fide discontinued lines of merchandise, if advertised, 

marked, and sold as such; merchandise sold upon the complete final 

liquidation of any business; merchandise sold in quantity on contract 

to public carriers, departments of government, hospitals, schools and 

colleges, clubs, hotels, and other institutions for their own specific 

use and not for resale and not for redistribution to individuals; 

merchandise sold or donated for charitable purposes or to unemployment relief agencies. 

(b) Where a bona fide premium or certificate representing a share 

in a premium is given away with any article the base upon which the 

minimum price of the article is calculated shall include the cost of the 

premium or share thereof. 

ARTICLE VIII-TRADE PRACTICES 

All retail jewelers shall comply with the following trade practices: 

l. Advertising and S elling Methods.~(a) No retail jeweler shall 

use advertising, whether printed, radio, or display or of any other 

nature, which is inaccurate in any material particular or misrepresents merchandise (including its use, trade mark, grade, quality, 

quantity, size, origin, material, content, or preparation) or credit 

terms, values, policies, or services; and no retailer shall use advertising and/ or selling methods which tend to deceive or mislead the 

customer. 

(b) No retail jeweler shall use advertising which refers inaccurately in any material particular to any competitor or his merchandise, prices, values, credit terms, policies, or services. 

( c) No retail jeweler shall use advertising which inaccurately lays 

claim to a policy or continuing practice of generally underselling 

competitors. 

( d) No retail jeweler shall secretly give anything of value to the 

employee or agent of a customer for the purpose of influencing a 

sale, or in furtherance of a sale render a bill or statement of account 

to the employee, agent, or customer which is inaccurate in any 

material particular. 

( e) No retail jeweler shall place obstacles in the way of the purchase of a product which a consumer orders by brand name by 

urging upon the consumer a substitute product in a manner which 

disparages the product ordered. 
528 

(f) Violation by a retail jeweler of the applicable state stamping 

laws relating to articles made wholly or in part of gold, silver, metals 

of the platinum group, or alloys thereof; or, where there are no applicable state laws relating to said articles, violation by a retail 

jeweler of the National stamping laws or of the standards of quality 

approved by the United States Bureau of Standards, shall be a 

violation of this code. 

(g) No retail jeweler shall use the word "perfect" or any other 

word or expression of similar meaning, in any way, in connection 

with, or as descriptive of, any diamond, ruby, sapphire, or emerald 

which discloses flaws, cracks, carbon, spots, clouds, cloudy texture, or 

blemishes of any sort when examined by a trained eye under a 

diamond loupe of not less than 7 power. 

(h) No retail jeweler shall use the word " diamond " " emerald ", 

"ruby" , "sapphire" ) or "pearl" in sellino-b) offerina b for sale , or advertising for sale any article or articles that are manufactured, produced or artificially cultured or cultivated as an imitation of, or 

substitute for, any real or natural diamond, emerald, ruby, sapphire, 

or pearl as defined hereafter, without using a word or words conspicuously and clearly portraying that the article is manufactured, 

produced, or artificially cultured or cultivated, as the case may be. 

DEFINITIONS 

Diamond..-A mineral consisting essentially of pure carbon 

crystallized in the isometric system, generally in octahedron form, 

either colorless or variously tinted. Its hardness is 10 and its specific 

gravity about 3.525. 

Emerald.-A bright-green variety of bery 1 which crystallized in 

the rhombohedral system, almost always in six-sided prisms. Its 

color is due to the presence of chromium. Its hardness is about 7.8 

and its specific gravity very nearly 2.7. 

Ruby.-The name" ruby" is given to the transparent red variety 

of the mineral corundum, which is nearly pure alumina (Al20 3 ). 

The color is due to the addition of minute quantities of metallic 

oxides to the alumina. Its hardness is about 8.8 and its specific 

gravity varies from 3.97 to 4.05. 

Sapphire.-The name" sapphire" is given to the transparent blue 

variety of the mineral corundum, which is nearly pure alumina 

(Al 2 0 3 ). The color is due to the addition of minute quantities of 

metallic oxides to the alumina. Its hardness is about 8.8 and its 

specific gravity varies from 3.97 to 4.05. Sapphires may be of other 

colors than blue, but in that case are corrunercially classed as semiprecious stones. 

Pearl.-Pearls are lustrous concretions, consisting essentially of 

concentric layers of carbonate of lime interstratified with animal 

membrane, found in the shells of certain mollusks, the result of an 

abnormal secretory process caused by an irritation of the mantle of 

the mollusk consequent on the natural intrusion into the shell of some 

foreign body, as a grain of sand, an egg of the mollusk itself, or 

perhaps some cercarian parasite, or an excess of carbonate of lime 

in the water. 

(i) No retail jeweler shall use the words" real"," genuine"," natural", or any other words of similar meaning, in any way in con-
529 

nection with, or as descriptive of1 any article or articles that are 

manufactured, produced, o,r artificially cultured or cultivated, as an 

imitation of, or substitute for, any precious or semiprecious stones 

or pearls. 

(j) No retail jeweler selling jewelry to the ultimate consumer shall 

refer his customers to the establishment of another retailer with the 

suggestion that the customer make a selection but no purchase, thus 

parasitically using the facilities of the latter retailer, such as stock 

and salesmen's time, to create sales for himself by offering and delivering the identical goods to his custom.ers at greater profit to himself, because others bear a substantial part of the cost of his effecting 

such sale. 

( k) No retail jeweler shall, in the retail jewelry trade, represent 

himself as other than a retailer. 

( 1) No retail jeweler shall issue price lists and/ or catalogues the 

tendency of which, in connection with the o,ffering of discounts, js 

to give to the consumer the impression that the prices are bargain 

prices, when such in fact is not the case. (m) No retail jeweler shall grant discounts, rebates, refunds, commissions, or credits, whether in the form of money or otherwise, and 

shall not extend to certain purchasers special services or privileges 

not extended to all purchasers (individuals directly connected with 

his establishment excepted, and then only when merchandise is for 

their personal use and not for resale) on like terms and conditions. 

Nothing in this section shall be construed to prevent price differential's from being allowed on the basis of a sale in quantity, or such 

other factors as the Administrator shall deem proper, provided such 

differentials do not exceed the savings actually enjoyed by the seller 

by reason of selling and handling the larger quantities. 

( n) No retail jeweler shall sell or off er for sal1

e directly or through 

an agent, at auction, in the retail jewelry trade, any jewelry except 

for the purpose of legitimate liquidation, or in case of dire need, in 

either of which cases an application must be made to and approved 

by the local Retail J ewelry Trade Committee. In such instances, no 

special purchases of jewelry shall be made for the purpose of this 

auction and all jewelry offered at auction must be stock legitimately 

owned in the natural course of the conduct of said Retail Jewelry 

Business. It shall be further required that an accnrate inventory of 

jewelry to be auctioned be filed with the local retail jewelry trade 

committee at l

1

east fifteen days before the auction, or as otherwise 

provided by the local or state laws. ( o) No retail jeweler shall advertise or offer to repair watches or 

clocks at a uniform price irrespective of the cost of such repairs. 

(p) No retail jeweler shall sell, offer for sale, or advertise for sale, 

rebuilt watches unl1ess such articles are clearly designated as such. 

( q) No retail jeweler shall appraise any article of jewelry unless 

such appraisal is in writing over his signature. 

2. N.R.A.. Label.-N o retail jeweler shall purchase, sell, or exchange any merchandise manufactured under a Code of Fair Competition which requires such merchandise to bear an N.R.A. label, 

unless said merchandise bears such label. Any retail jeweler rightfully possessing the insignia of the N.R.A. who has in stock or purchases similar merchandise which has been manufa<;?,tured before the 
530 

effective date of the Code of Fair Competition requiring such mer-

?h3:nd~se to bear an N.R.A. label may attach thereto the N.R.A. 

1ns1gn1a. 

3. Prison-made Goods.-Pending the formulation of a compact or 

code between the several States of the United States to insure the 

manufacture and sale of prison-made goods on a fair competitive 

basis with goods not so produced, the following provisions of this 

Section will be stayed for ninety (90) days, or further at the discretion of the Administrator. 

(a) Where any penal, reformatory, or correctional institution, 

either by subscribing to the code or compact hereinbefore referred to, 

or by a binding agreement o:f any other nature, satisfies the Administrator that merchandise produced in such institution or by the 

inmates thereof will not be sold except upon a :fair competitive basis 

with similar merchandise not so produced, the provisions of paragraph (b) hereof shall not apply to any merchandise produced in 

such manner in the institutions covered by such agreement. 

(b) Except as provided in the foregoing paragraph, no retail 

jeweler shall knowingly buy or contract to buy any merchandise 

produced in whole or in part in a penal, reformatory, or correctional institution. After May 31, 1934, no retailer shall knowingly 

sell or offer for sale such merchandise. Nothing in this Section, however, shall affect contracts, which the retailer does not have the option 

io cancel, ma.de with respect to such merchandise before the approval 

of this Code by the President of the United States. 

( c) Nothing in this Section shall be construed to supersede or 

interfere with the operation of the Act of Congress approved J anuary 19, 1929, being Public No. 669 of the 70th Congress and entitled 

"An Act to Divest Goods Wares, and Merchandise Manufactured, 

Produced, or Mined by Convicts or Prisoners of their Interstate 

Character in Certain Cases ", which Act is known as the HawesCooper Act, or the provisions of any State Legislation enacted under, 

or effective upon, the effective date of the said Hawes-Cooper Act, 

the said effective date being January 19, 1934. 

4. 0 ompany scrip.-The following provisions of this Section shall 

not become effective until March 1, 1934. Pending such effective 

date the Administrator shall appoint a Committee of not more than 

three persons to investigate the economic and social implications 

of these provisions. Said Committee may make recommendations 

based upon its investigations, and such recommendations shall, upon 

approval by the President of the United States, become effective in 

the place of these provisions : 

(a) No retail jeweler shall accept as payment for merchandise 

any nonnegotiable scrip, company checks, or other evidence of wage 

payment issued by any individual or private profit organization in 

payment of wages or as an advance upon unearned wages. A 

negotiable instrument issued by any individual or private profit organization in payment of wages shall be accepted only if it is payable in cash within one month of the date of issue. This paragraph 

shall not apply in cases where the cash funds of any individual or 

organization are rendered temporarily unavailable due to the closing 

by state or federal order of the bank in which such funds are 

deposited. 
531 

(b) No retail jeweler shall extend credit in the form of goods, 

money, or services to any person other than its own employees engaged exclusively in the retail trade, upon any employer's gr;.arantee 

of part or all of said person's future wages, or pursuant to a wagededuction arrangement entered into wit said employer, unless an 

identical guarantee or wage-deduction arrangement is available to 

all retailers. 

ARTICLE IX-ADMINISTRATION 

1. Retail J ewelry Trade A uthority.-The Retail Jewelry Trade 

Authority shall consist of the Administrator or his Deputy, or not 

more than three members appointed by the Ad1ninistrator, who shall 

advise and assist the Ad.Ininistrator or his Deputy. ~{embers of the 

Retail Jewelry Trade Authority shall be members, without vote, of 

the National Retail Jewelry Trade Council, provided :for hereinafter, 

and without expense to said Council. 

2. National Retail Jewelry Tr-ade O ownoil.-

( a) 001nposition.-To effectuate further the policies of the Act, a 

National Retail Jewelry Trade Council hereinafter referred to as 

the Code Authority is hereby designated to cooperate with the Administrator as a planning and fair-practice agency for the retail 

jewelry trade. This Code Authority shall consist of 5 representatives of the retail Jewelry trade, designated by a fair method to be 

approved by the Administrator. Where more than one national 

trade association each represents a portion of a single division of the 

retail jewelry trade, the Administrator shall, for the purpo e of 

establishing the membership of the National Retail Jewelry Trade 

Council in the first instance, determine whether such association are 

truly representative and what shall be the number and proportionate 

vote of such associations upon the Council; after the initial e tablishment of the Council such decisions shall be made by the Council 

subject to an appeal to the Administrator. The National Retail 

Jewelry Trade Council may issue r egulations providing for the local 

administration of this Code through cooperation with the local 

Retail Trade Councils set up under the supervision of the National 

Retail Trade Council, such regulations to be subject to the approval 

of the Administrator. 

(b) Recomniendations.-The National Retail Jewelry Trade Council may from time to time present to the Administrator recommenda- tions (including interpretations), based on conditions in the retail 

jewelry trade, which will tend to effectuate the operation of the provisions of this Code, and the policy of the National Industrial Recovery Act. Such recommendations shall, upon approval by the Administrator, become operative as part of this Code. 

( c) Investigations.-The Code Authority is empowered and set 

up to cooperate with the Administrator to make investigations as 

to the functioning and observance of any provision of this Code, 

at its own instance, on request of the Administrator, or on complaint 

by any persons affected, and to report the same to the Administrator. 

( d) R eports.-The Code Authority may require such reports as 

may be necessary to administer this Code, in such form as may be 

approved by the Administrator. Any reports required by the Code 

Authority shall be submitted to an impartial agency designated by 
532 

the Administrator, and not a member of the industry, and shall not 

be revealed to any member of the industry, except in summary; provided, however, that such information shall be available to the 

Administrator upon request; and provided further, that such information may be divulged if necessary to facilitate the administration 

of this Code. In addition to information to be submitted to the Code 

Authority, there shall be furnished to the Administrator such statistical information as the Administrator may deem necessary for the 

administration of this Code. 

(e) Local Oommittees.-The National Retail Jewelry Trade Council shall, subject to the approval of the Administrator, supervise the 

setting up within local trading areas of local committees for the 

purpose of assisting in the administration and enforcement of this 

Code within such local areas insofar as it relates to the retail jewlery 

trade. 

( f) The expenses of the National Retail Jewelry Trade Council 

and its local committees shall be equitably assessed and collected from 

retail jewelers, subject to the approval of the Administrator. This 

assessment shall not exceed the sum of three dollars per annum per 

employee. For this purpose the number of employees of any retail 

jewelry establishment shall be the average annual number of persons engaged in the retail jewelry trade in its establishment in any 

capacity, receiving compensation for his services, irrespective of 

the nature or method of payment of such compensation. 

3. I nterpretations.-The Administrator may from time to time, 

after consultation with the National Retail Jewelry Trade Council, 

issue such administrative interpretations of the various provisions of 

this Code relating to the retail jewelry trade as are necessary to 

effectuate its purposes, and such interpretations shall become operative as part of this Code, unless the Administrator shall btherwise 

specify. 

4. E xceptions in cases of wnusual or undue hardship.-Where the 

operation of the provisions of this Code imposes an unusual or undue 

hardship upon any retail jeweler or group of retail jewelers, such 

retail jewelers or group of retail jewelers may make application for 

relief to the Administrator or to his duly authorized agent, and the 

Administrator or his agent may, after such public notice and hearings as he may deem necessary, grant such exception to or modifica~ 

tion of the provisions of this Code as may be required to effectuate 

the purposes of the National Industrial Recovery Act. 

ARTICLE X-GENERAL 

1. Members hip in assoeiations.-Membership in the national retail 

associations represented upon the National Retail Jewelry Trade 

Council, or in any affiliated association, shall be open to all retail 

jewelers of that portion of the retail jewelry trade which said associations respectively represent, and said associations shall impose no 

inequitable restrictions upon admission to membership therein. 

2. Prohibition ag·ainst monopolies.-The provisions of this Code 

shall not be interpreted or applied to promote monopolies or monopolistic practices or to eliminate or oppress small enterprises or to 

discriminate against them. 
533 

3. Prohibition against use of S'u,bterfuge.-No retail jeweler shall 

use any subterfuge to frustrate the spirit and intent of this Code, 

which is, among other things, to increase employment by universal 

covenant, to remove obstructions to commerce, to shorten hours of 

work, and to raise wages to a Ii ving basis. 

4. Right of President to carnoel or 1nodify.-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 

Title I of the National Industrial Recovery Act, from time to time to 

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

issued under Title I of said Act. 

5. Modifications and supple1nentary provisions.-Such of the provisions of this Code as are not required to be included herein by the 

National Industrial Recovery Act, may, with the approval of the 

President, be modified or eliminated as changes in conditions or 

experience may indicate. It is contemplated that from time to time 

supplementary provisions to this Code or additional Codes will be 

submitted for the approval of the P resident to prevent unfair competitive practices and to effectuate the other purposes and policies of 

Title I of the National Industrial Recovery Act. 

6. Ewpiration.-This Code shall continue in effect until June 16, 

1935, or the earliest date prior thereto on which the President shall, 

by proclamation, or the Congress shall, by joint resolution, declare 

that the emergency recognized by Section 1 of the National Indus~ 

trial Recovery Act has ended. 

7. Information to be furnished government agencies.-In addition to _information reqmred to be submitted to the National Retail 

Jewelry Trade Council, 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 National 

Industrial Recovery Act. 

Approved Code No. 142 

Registry No. 1631-11 

0 
UNIVERSITY OF FLORIDA 

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