Approved Code No. 407 Registry No. 607-1-01 

NATIONAL RECOVERY ADMINISTRATION 

COD·E OF FAIR COMPETITION 

FOR THE 

DRY COLOR INDUSTRY 

AS APPROVED ON APRIL 25, 1934 

WE ·oo OUR PARl 

" - ,, •• \.l . ,.~-,,. 

U.5. DEP~TO_P.Y ___ 1----

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

W ASHINGTO • : 1934 

I 

I ' 

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

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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 

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Approved Code No. 407 

CODE OF FAIR COMPETITION 

FOR THE 

DRY COLOR INDUSTRY 

As Approved on April 25, 1934 

ORDER 

- APPROYIXG CooE OF FAIR COMPETITION FOR THE DnY COLOR INDUSTRY 

An application having been duly made fursuant to and in full 

compliance with the provisions of Title I o the National Industrial 

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

Fair Competition for the Dry Color Industry, and hearings 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 Executive Orders of the 

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

30, 1933, and otherwise; do hereby incorporate by reference said 

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

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

of Fair Competition be and it is hereby approved; provided, however, that Article VII, Section 3, and Article VIII be deleted from 

the Code. 

HUGH s. JOHNSON, 

A.dministr-at01~ for Industrial R ecovery. 

Approval recommended: 

GEO. L. BERRY 

Division A.d1nirdstrator. 

,v .ASHINGTON, D.C., 

April f5, 1934. 

54931 °-482-156-34 ( 481) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The lVhite House. 

Srn: This is a report of the hearing on the Code of Fair Competition for the Dry Color Industry, conducted in Washington on 

November 28, 1933, in accordance with the provisions of Title I of 

the National Industrial Recovery Act. 

LABOR PRO, ISIONS 

The Code provides that no employee shall be permitted to work 

for an average of more than forty hours per week in any two months' 

period, such periods commencing on January 1 of each year, nor 

more than forty-eight hours in any one week, but not so as to exceed 

an average of forty hours per week during such two months' period 

and that any employee compensated on an hourly basis shall be paid 

time and one-third for time in excess of ten hours in any twentyfour hour period or forty hours in any one week, except as follows: 

:Maintenance and repair crews, etc., are allowed a tolerance of ten 

per cent and time and one-third is to be paid for time in excess of 

eleven hours in any twenty-four hour period or forty-four hours in 

any one week. In cases of emergency effecting life or property, 

repair crews and electricians and their respective assistants may be 

Employed for whatever number of hours per week are necessary, provided that time and one-third shall be paid for time in excess of 

-forty-eight hours in any one week . . Executive, administrative, 

supervisory staffs and color chemists who earn $35 per week or more 

and who also enjoy vacation periods, sick leave and other benefits 

granted to salaried workers, are excepted. For a period of nine 

months after the effective date of the Code, color matchers may be 

employed not in excess of forty-eight hours per week, after which 

period they shall be subject to the general hours provisions. During 

periods of season or peak demands in a department, not to exceed 

six weeks in any six months' period, employees may be permitted to 

work for an average of forty-four hours per week but not in excess 

of forty-eight hours per week and time and one-third overtime is to 

be paid for hours in excess of eleven hours in each twenty-four hour 

period of f orty-four hours in any one week. There is an exception 

9lso applying to the manufacturers of earth colors which requires 

open-air clay and shale digging operations to be carried on when 

the weather i favorable. These employees may not work in excess 

of forty-eight hours per week during any six months' period from 

May 1 to October 31, inclusive, in each calendar year but the average 

weekly hour of work of such employees shall not exceed forty per 

week for the full calendar year. 

The Code provide minimum ·wages of forty cents per hour in 

plants located in cities haYing a popuhition of 350,000 or over or in 

(482) 
483 

the immediate trade area of such city and in all other plants a 

rate of 36 cents per hour except as follows : Employees of the manufacturers of earth colors, operating in towns, villages or communities 

of not more than 6,000 population in the states of Tennessee, Ala- bama, Georgia, and Virginia shall receive a minimum hourly wage 

of 30 cents. The minimum wages for laboratory apprentices for 

a period of six months from the date of employment, and office boys 

and affine girls shall not be less than 80% of the minimum wages 

abov~e specified, provided that the total number of such employees 

shall not exceed 5% of the total number of employees of any employer subject to the Code. Applying to wages above the minimum, the Code provides that, 

based upon changes in minimum pay necessitated by the foregoing 

paragraphs of this Article, each employer shall make fair and 

equitable readjustment of all pay schedules unless such readju tment 

has already been made subsequent to June 16, 1933. 

The Code includes provisions covering minimum age of employees, on reclassification of employees, the application of State laws arid 

for posting all current copies of the Code in places accessible to 

employees. 

OTHER PROVI SIONS 

Other provisions include a very limited number of trade practice 

provisions, most of which are of the standard recognized type of 

fair trade practice provisions. There is no open price a · ociation 

provided for or any provision prohibiting sales below co t. 

ECONOMIC EFFECT OF THE CODE 

This Industry produces color pigments by various processes which 

are e sentially batch operations that vary greatly in time required 

for completion. Out of seventy-six known companies which did a 

total estimated business in 1929 of $16,000,000 and in 1932, of $12,- 500,000, thirty-seven of these, from whom questionnaire returns were 

received, accounted for $14,378,000 in 192.9 and $10,452,000 in 193~. 

Under normal conditions most plants in the Industry have in 

the past operated on a basis of fifty hours a week. The Industry 

did not release its employees noticeably after 1929. The above 

thirty-seven companies, according to the compilation made by the 

Division of Economic Planning and Research, had 1,130 employees 

in 1929 and an average of 1,129 in 1932 and somewhat less in the 

first half of 1933. 

Under the President's Reemployment Agreement which required 

an average of forty hours per week 1,458 employees were on the 

payrolls of these thirty-seven companies in the last week of October, 

1933, an increase of 34%. Practically no decrease of employment 

is shown in 1932 in spite of a 22% decrease in dollar value of the 

business. The dollar value of the business in the Fall of 1933 was 

at a rate which about equalled the averaO'e for 1929. 

On account of the specialized natu~e of the business and the 

"style" factor involved, it is not practical to make up much inventory stock in advance. In view also of the fact that practically 

all of the manufacturing operations of the Industry are batch opera-
484 

tions, a certain :flexibility in the hours prov1s10ns of the Code is 

essential and has been provided for. 

Referring to the effect of the minimum wages specified in the 

Code, the report of the Division of Economic Research and Planning state as follows: 

"The. estimated increase of payroll due to the operation of the 

Code (as revised for public hearing on November 28) would be 

about 6% above present levels. However, since payrolls are already at about the 1929 levels ( due to the operation of the President' Reemployment Agreement) this additional increase in payrolls will bring them to about 5% above the 1929 level." 

The addition of provisions for overtime in the Code as submitted 

for approval as compared with the Code as filed for public hearing 

will have some light effect in increasing the payrolls. 

FINDINGS 

I find that: 

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

removal of obstructions to the free :flow of interstate and foreign 

commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the trade groups, 

by inducing and maintaining united action of labor and management under adequate governmental sanctions 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 

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

labor, and by otherwise rehabilitating industry. 

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

( c) The code as approved complies in all respects with the pertinent provisions of said Title I 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 membership therein. 

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

or monopolistic practices. 

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

small enterprises and will not operate to discriminate against them. 

(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, 

APRIL 25 ~ 1934. 

HUGH S. JOHNSON, 

.Admvnistrator. 
CODE OF FAIR COlVIPETITION FOR THE DRY COLOR 

INDUSTRY 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Code 

of Fair Competition for the Dry Color Industry, and upon approval 

by the President shall be the standard of fair competition for such 

Dry Color Indu try and hall be binding upon every member 

thereof. 

ARTICLE I-DEFINITIONS 

(a) The term "Dry Color Industry" as used in this Code shall 

include the manufacture for sale as a raw material, to manufacturers 

of other product , Pigment Colors ( except \Vhite, Bone Black and 

Organic Black Pigments) of organic or inorganic origin as a completed product, either in dry form or dispersed, ground or suspended 

in water, oil, varnish, or any other vehicle. 

(b) The term" member of the Industry" includes, without limitation, any individual, partnership, association, corporation or other 

form of enterp,ise engaged in the Industry, either as an employer 

or on his or its own behalf. 

( c) The term "employee" as used herein, includes any and all 

persons engaged in the Industry, however compensated. 

( d) The term " President", "Act", and "Administrator" as used 

herein shall mean respectively, the President of the United States, 

the National Indn trial Recovery Act, and the Administrator for 

Industrial Recovery. 

( e) Population for the purposes of this Code shall be determined 

by reference to the 1930 Federal Census. 

(f) The term "effective date" as used in this Code is defined to 

be the tenth day after the approYal of this Code by the Pre. ident of 

the United States. 

ARTICLE II-STATUTORY PROYISIONS RELATING TO EMPLOYEES 

As require<l by Section 7 (a) of Title I of the National Industrial 

Recovery Act, the following provisions are conditions of this Code: 

'(1) That employees shall have the right to organize and bargain 

collectively through representatives of their own choosing, and shall 

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

~abor, or their agents, in the designation of such representatives or 

1n self-organization or in other concerted activities for the purpose 

of collective bargaining or other mutual aid or protection; 

"(~) That no employee and no one seeking employment shall ba 

requ1red_ as a condition of employment to join any company union or 

t? refra11:1 from joini~g, organizing, or assisting a labor organizat10n of his own choosing; and 

(485) 
486 

"(3) That employers shall comply with the maximum hours of 

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

approYecl or prescribed by the President." 

ARTICLE III-MAXIMUM HOURS OF LABOR 

SECTION 1. No employee shall be employed at an average of more 

than 40 hours per week in any two months' period, such periods commencing on January 1 of each year, nor more than 48 hours in any 

one week, but not so as to exceed the average of 40 hours per week 

during such two months' period; and any such employee compensated on an hourly basis shall be paid time and one-third for time in 

excess of 10 hours in any 24 hour period or forty hours in any one 

week; the foregoing provision shall apply in all cases except: 

(a) Maintenance and repair crews, shipping crews, engineers, fire1nen and electricians shall be allowed a tolerance of 10% and time and 

one-third shall be paid for time in excess of 11 hours in any 24 hour 

period or 44 hours in any one week. 

(b) In cases of emergency affecting life or property, repair crews 

and electricians and their respective assistants may be employed for 

whatever number of hours per week are necessary by reason of such 

emergencies, provided, however, that time and one-third shall be paid 

for time in excess of 48 hours in any one week and provided further 

that an_y tim.e involved in such emergencies shall not be computed in 

determining the average hours per week. 

( c) Traveling salesmen and watchmen; employees engaged in 

executive, administrative or supervisory capacity and color chemists, 

earning $35.00 per week or more, who enjoy vacation-periods, sick 

leave and other benefits granted to salaried workers. 

(d) For a period of nine months after the effective date of this 

Cude, color matchers may be employed not in excess of 48 hours per 

week after which period they shall be subject to the provisions of 

Section 1, hereof. 

( e) During periods of season or peak demands in any department 

or division of the Industry which place an unusual and temporary 

requirement for production upon such department or division, 1t shall 

be permissible to work employees in such departments or divisions 

for 44 hours per week averaged over any six weeks' period, but not 

more than 48 hours in any one week. Such periods of season or peak 

demands shall be limited to not more than 6 weeks in each half of 

each calendar year and time and one-third shall be paid for time 

worked in excess of 11 hours in each 24 hour period or 44 hours in 

any one week. 

(f) With respect to manufacturers of Earth Colors, all employees 

engaged in open-air clay and shale digging operations, or engaged in 

operations in isolated communities where qualified labor is not and 

cannot be made available, may work not in excess of 48 hours per 

week during the six months' period from May 1 to October 31, inclusive, in each calendar year; but the average weekly hours of work of 

such employees shall not exceed 40 hours per week for the full 

calendar year. 
487 

ARTICLE IV-NfINIMUM w AGES OF EMPLOYEES 

SECTION 1. (a) The minimum wages of employees in the Dry Color 

Industry, except laboratory apprentices and office boys and office girls, 

shall be at the rate of 40 cents per hour in plants located in any city 

of 350,000 population or over, or in the immediate trade area of such 

city; and in all other plants, at the rate of 36 cents per hour, except 

as her~inafter provided: 

(b) With respect to manufacturers of Earth Colors operating in 

towns, villages, or communities of not more than 6,000 population 

in the States of Tennessee, Alabama, Georgia, and Virginia, the 

minimum hourly rate shall be 30 cents. 

( c) The minimum wages for laboratory apprentices ( for a period 

of six months from date of eniployment) and office boys and girls, 

shall be not less than 80% of the minimum wage hereinabove provided; and the total number of laboratory apprentices and office 

boys and girls employed at this rate shall not exceed 5% of the total 

employees of any employer subject to this Code; but each employer 

may have at least one such office boy or girl and one such laboratory 

apprentice. 

( d) It is agreed that this Article establishes a guaranteetl minimum rate of pay regardless of whether the employee is compensated on the basis of a time rate or on a piecework performance. 

(e) Based upon changes in minimum pay necessitated by the 

foregoing paragraphs of this Article, each employer shall make fair 

and equitable readjustments of all pay schedules, unless such readjustment has already been made subsequent to Jnne 16, 1933. 

ARTICLE V-GENERAL LABOR PROVISIONS 

(a) No person shall be employed in the Dry Color Industry who 

is under the age of sixteen years ; nor under the age of eighteen years 

at operations or occupations which are hazardous in nature or dangerous to health, provided, however, that where a State law provides 

a. higher minimum age, no person below the age specified by such 

State law shall be employed within that State. 

(b) Employers shall not reclassify employ-ees or duties of occupations performed by employees so as to defeat the purposes of the 

Act, or tfie provisions of this Code. 

( c) Within each State members of the Industry shall comply 

with any laws of such State imposing more stringent requirements 

regulating the age of employees, wages and hours of work than those 

specified under this Code. 

( d) Each employer shall post in conspicuous places accessible to 

employees, full current copies of this Code. 

ARTICLE VI-Am,HNISTRA TION 

SECTION 1. To further effectuate the policies of the Act, a Code 

Authority is hereby constituted to cooperate with the Administrator 

in the administration of this Code. The Code Authority shall consist of seven individuals, or such other number as may be approved 

from time to time by the Administrator, to be selected as hereinafter set forth. The Administrator, in his discretion, may appoint 

not more than three additional members without vote to represent 
488 

the Administrator or such groups or interests as may be agreed upon 

without expense to the Industry. 

SECTION 2. vVithin ten days after the effective date of this Code, 

on fi\e days' prior notice to all members of the Industry, a Code 

Authority shall be elected at a meeting of the Dry Color Industry by 

a fair method of election subject to the approval of the Administrator to serve for a period of one year and until their successors are 

elected and qualify. A vote of not less than 663⁄4 % of the members 

of the Industry, present in person or by proxy, who have assented 

to the Code, said percentage furthermore to comprise not less than 

663⁄4 % of the total volume of sales in dollars of the preceding calendar year of Inorganic Colors, Organic Colors and Mineral Colors 

of members present in person or by proxy, shall be necessary for the 

election of any individual. Such voting power to be determined by 

certified reports submitted by members of the Industry, at the request of the Code Authority, of their sales in dollars for the previous 

calendar year of the products defined in Article I of this Code. 

The Code Authority shall consist of at least one individual representing each of the following groups, respectively, Inorganic Colors, 

Organic Colors, and ]\fineral Colors. 

SECTION 3. In order that the Code Authority shall at all times 

be truly representative of the Industry and in other respects comply 

with the provisions of the Act, the Administrator may provide such 

hearings as he may deem proper; and thereafter if he shall find 

that the Code Authority is not truly representative or does not 

in other respects comply with the provisions of the Act, may require an appropriate modification in the method of selection of the 

Code Authority. 

SECTION 4. If the Administrator shall determine that any action 

of the Code Authority or any agency thereof may be unfair or 

unjust or contrary to the public interest, the Administrator ma.y require that such action be suspended to afford an opportunity for 

investigation 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 Administrator approves or unless he shall 

fail to disapprove after thirty days' notice to him of intention to 

proceed with such action in its original or modified form. 

The Code Authority shall ha.ve the following duties and powers 

to the extent permitted by the Code : 

(a) To collect from the members of the Industry all data and 

statistics which may be necessary for the proper administration of 

this Code. Any data and/ or statistics of a confidential nature shall 

be collected and compiled by a firm of certified accountants or other 

suitable agents selected by the Code Authority, and not a member . or connected with a member of the Dry Color Industry. The data. 

and/ or statistics o collected by such agents shall be disseminated 

only in combination with other information of the same type and 

in such form.s as will not disclose the individual data or statistics 

furnished by any member. No member ?f the Code Authority, no 

member of the Industry, and no officer, director, employee, or agent 

of any member of the Dry Color Industry, or any other person shall 

at any time have access to or be furnished in any manner with any 

information by said agents which would disclose the individual data 

or statistics furnished by any member. 
489 

(b) To represent the Dry Color Industry in conferring with the 

Administrator with respect to the application of this Code and of 

said Act and any regulations issued thereunder, and receive complaints and if possible adjust the same, and to receive any proposals 

:for supplementary provisions or amendments of this Code and 

transmit the same to the Administrator. 

( c) All such other powers and duties as shall be necessary or 

proper to enable it fully to administer the Code and to effectuate its 

purpose and the purpose of the Act. 

( d) The Code Authority shall carefully investigate all complaints 

it may receive of any violation of the provisions of this Code. If a 

complaint is sustained, the cost of the investigation thereof shall be 

borne by the member of the Industry against whom such complaint 

is sustained, such cost to be determined by the Code Authority and 

to be paid to it. 

( e) Each memoor of the Industry accepting the benefits of the 

activities of the Code Authority shall pay to the Code Authority 

his proportionate share of the amounts necessary to pay the cost of 

assembling, analyzing, and publication of such reports and data, 

and of the maintenance of the Code Authority, in connection with 

its activities relative to the preparation and administration of this 

Code, such proportionate share to be based on the volume of business 

and such other factors as the Code Authority may prescribe subject 

to review by the Administrator. 

(f) 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 

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

Code Authority, exercising reasonable diligence in the conduct of 

his duties hereunder, nor be liable to anyone for any action or 

omission to act under the Code, except for his own willful misfeasance or nonfeasance. 

ARTICLE VII-ADDITIO:N'AL STATUTORY PROHSIONS 

SECTION 1. Neither this Code, nor any provisions contained therein, 

is designed to promote monopolies, or monopolistic practices, or to 

eliminate or oppress smaH enterprises, and shall not be interpreted 

or applied in such manner as to discriminate against small enterprises. The said Code shall be interpreted and applied in such a 

manner as to effectuate the policy of Title I of the National Industrial Recovery Act. 

SECTION 2. The President of the United States may from time 

to time cancel or modify any order, approval, license, rule, or regulation issued under Title I of the National Industrial Recovery Act. 

SECTION 3. By presenting this Code, those assenting hereto do 

not thereby consent to any modification thereof and do reserve the 

right to object individually or jointly to any such modification.1 

ARTICLE VIII-CoNSTITUTION AL RIGHTS 

Assent to this Code shall not be deemed a waiver of any constitutional rights. 1 

1 Deleted-see paragraph 2 of order approving this Code. 
490 

AnTICLE IX-TRADE PR.....\.CTICES 

The following trade practices are hereby declared to constitute 

unfair methods of competition. The use of any of them by any 

member of the Dry Color Industry shall constitute a violation of 

this Code, and is hereby prohibited: 

(a) No member of the Industry shall give, permit to be giYen, 

or directly offer to give any bribe, gratuity, gift, other payment or 

remuneration, or 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. This pro,ision shall not be construed to prohibit free and general distribution 

of articles commonly used for advertising, except insofar as such 

articles are actually used for commercial bribery as hereinabo,e 

defined. 

(b) Procuring by surreptitious methods any information concerning the business of any member of the Industry which is properly 

regarded by such Jnember as a trade secret or confidential within 

its organization, excepting therefrom information relating to a 

violation of any provision of this Code. 

( c) Imitating or simulating any design, style, mark or brand used 

by any other member of the Industry. 

( d) False or misleading advertising. 

(e) Disseminating, publishing, or circulating any false or mi -

leading information relative to any product or price for any product 

of any member of the Dry Color Industry, or the credit standing, 

or ability of any member thereof to perform any work or manufacture or produce any product, or to the conditions of employment 

among the employees of any other member thereof. 

(f) Inducing or attempting to induce by any means any party to 

a contract with a member of the Dry Color Industry to violate such 

contract. 

(g) ~!embers of the Industry shall recognize the right of employees to use all honorable and reasonable efforts to better their 

conditions, but shall refrain from directly or indirectly soliciting or 

bidding for the services of the employee of another member. Only 

when such an employee takes the initiative, shall a member of the 

Industry have the right to negotiate with him about prospective 

employment. 

(h) The £al e marking or branding of any product of the Industry, 

whether as to the grade, quality, quantity, substance, character, 

nature, origin, size, finish, or preparation or otherwise. 

( i) Paying or allowing to any purchaser in connection with the 

sale of any product any rebate, commission, credit, discount or concession other than is specified in the contract of sale. The maximum 

rate of cash discount shall in no case exceed 1 %. 

(j) The provisions of Article IX shall not apply to sales for 

('Xport to foreign countries. 

ApproYed Code No. 407. 

Registry No. 607- 1- 01. 

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