Approved Code No. 269 Registry No. 709-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

CARBON BLACK 

MANUFACTURING INDUSTRY 

AS APPROVED ON FEBRUARY 8, 1934 

WE DO OUR PART 

UNIV. OF· FL LIi. 

N- pt 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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Approved Code No. 269 

CODE OF FAIR COMPETITION 

FOR THE 

CARBON BLACK MANUFACTURING INDUSTRY 

As Approved on February 8, 1934 

ORDER 

APPROVING ConE OF FAIR COMPETITION FOR THE CARBON ELA K 

MANUF ACTURI:N G 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 Carbon Black :Manufacturing 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 ExecutiYe Orders of the 

President, including Executive Order No. 6543- , 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 aid 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 V, Sections 1 and 2, insofar as they 

prescribe a waiting period between the filing with the Code Authority 

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

of revised price lists or revised terms and conditions of sale be and 

they are hereby stayed pending my further order. 

HUGH s. JOHNSON' 

Administrator for InilliwJtrial Recovery. 

Approval recommended: 

K. M. SIMPSON, 

Division Administrator. 

w ASHINGTON, D.C., 

Febr·uary 8, 1.934. 

39069°-376-35-34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. Sm: The proposed Code of Fair Competition for the Carbon Black 

Industry was subn1itted to the Administrator on August 23, 1933, by 

the Natural Gas Products Association, representing approximately 

93 % of the Industry. A hearing -was conducted in Washington on 

Thursday, November 16, 1933, and the Code was revised after the 

hearing an l is submitted in it · present form for approval. All persons who requested appearances were properly heard in accordance 

with statutory and regulatory requirements. 

LABOR PROVISIONS 

Hours of work are limited to 40 hours per week in any six-week 

period, 48 hour in any one week, and 8 hours in any one day with 

the following exceptions: executive, 1nanagerial, and supervisory employees, travelling salesmen, watchmen at idle plants and employees 

receiving over $3.3.00 per week. Emergency maintenance and repair 

employee · are al o excepted in cases in which life or property is endangered or in ca e of mechanical breakdowns. 

Minimum ,Yage for con1mon labor are as follows: 40 cent · per hour 

in Louisiana, 50 cents per hour in Oklahoma and Stephens County, 

Texas, and 5 ~ cents per hour elsewhere. Over 75% of the worker 

are in the 55 cents n1inimum area. The differentials between rates 

for skilled work and common labor minimums are to be equitably adjusted. Office workers are to receive, not less than 40 cents per hour. 

The usual clauses for the protection and safety of employees and employers are included. 

These provisions should bring about a decided improvement in 

labor conditions in the indu try inasn1uch as a 65-hour week and a 

35 cent per hour wage were not uncommon in the early months of 

this year. 

EXOESS OAP AOITY 

A demoralized price structure has existed in the Industry for the 

last three year . According to reports of the Bureau of Mines carbon black has ·old below the cost of production throughout this 

period. Stocks on hand at the end of 1932 amounted to 91 % of sales 

in 1929 and existing plant capacity will permit the annual production 

of 175% of total 1929 sales. Of 71 plants now in existence only 50 

were in operation at the end of 1932. This condition is due in large 

part to the fact that this natural resources industry is clo ely related to the production of natural gasoline. In the intere ts of 

economical use of natural gas and the orderly development of the 

carbon black industry the Code Authority is given power, subject 

to the approval of the Administrator, to pas upon the advisability 

of increasing plant capacity at any particular time in any particular 

locality. 

(2) 
3 

ECONOMIC EFFECT OF THE CODE 

The Industry is comprised of about 24 concerns, having an investment in 1933 of approximately $40,000,000. The rubber industry is 

the largest consumer of carbon black, and quantity consumption has 

held up well during the depression, but as a result of the price 

structure annual sales have fallen from about $25,000,000 in 1929 

to less than $7,000,000 in 1932. Volume has picked up in 1933, but 

pre ent contracts and extraordinarily heavy stocks have held prices 

down. Approximately 1,300 men are now employed in the industry. The hours provided for in the Code have resulted in a reduction of 

average hours worked from 65 in 1929 to le s than 41 at the present 

time. This has resulted in a 25 % increase in employment, and the 

present hourly rates are substantially above tho e paid in 1929. The Assistant 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 

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 indu trial 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 employs not more than 50,000 em- ployees; 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, includin§a without limitation 

Subsection (a) of Section 3, Subsection (a) of ection 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. 

I have, therefore, approYed this Code. 

Respectfully, 

FEBRUARY 8, 1934. 

HUGH s. JOHNSON, 

.Administrator. 
CODE OF FAIR COMPETITION FOR THE CARBON BLACK 

MANUFACTURING INDUSTRY 

ARTICLE I-PURPOSE 

To effectuate the policies of Title I of the National Industrial Recovery Act, the following provisions are submitted as a Code of Fair 

Competition for the Carbon Black Manufacturing Industry, and 

upon approval by the President, shall be the standards of fair competition for this industry, and shall be binding upon every member 

thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term " cOJJ·bon blmclc " includes any black pigments 

produced in whole or in part from natural gas, casing-head gas, or 

residue gas by the impinging of a flame upon a channel, disk, or 

plate. 

SEc. 2. The term" m.ember of the indu,stry" as used herein includes 

all those engaged in the manufacture of carbon black, either as employers or on their own behalf. 

SEc. 3. The term "industry" as used herein includes the manufacture and original sale of carbon black. 

SEC. 4. The term " e1nployee " as used herein includes all those engaged in the industry however compensated, except a member of the 

industry. 

SEc. 5. The term " employer " as used herein includes any member 

of the industry by whom any such em_ployee is compensated or 

employed. 

SEc. 6. The terms "Presuient ", "Act", and "Adtrnvnist1·ator ", as 

used herein mean the President of the United States, Title I of the 

National Industrial Recovery Act, and the Administrator for Industrial Recovery, respectively. 

ARTICLE III-LABOR 

SECTION 1. From and after the effective date no employee ( except 

executive, managerial, and supervisory employees, traveling salesmen, watchmen at idle plants and employees receiving over $35.00 

per week) shall be employed for more than an average of 40 hours per 

week in any six-week period. No employee shall be employed for 

more than 48 hours in any one week, nor more than 8 hours in any 

one day, except above mentioned classes and except maintenance and 

repair employees in case of emergencies when life or property is 

endangered, or in case of mechanical breakdowns. 

SEc. 2. The following minimum wages are hereby established from 

and after the effective date: The minimum wage for comn1on labor 

shall be forty cents per hour in Louisiana, fifty cents per hour in 

(4) 
5 

Oklahoma and Stephens County, Texas, and fifty-five cents per hour 

in all other portions of the United State . For clerical, laboratory, 

and office employees not less than forty cents per hour. The differentials between the rate for killed jobs and theminimum e tablished 

in this Code for common labor shall be equitably adjusted. Overtime 

work of maintenance and repair employees shall be compensated at 

the rate of tinie and one half. It is agreed that this paragraph establishes a guaranteed minimum rate of pay regarclle s of whether 

the employee i compen ated on the basis of a time rate or on a piecework basis. 

EC. 3. No person under sixteen (16) years of age shall be employed in the Industry. o per on 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 before :March 31, 1934, a list of 

such operations or occupation . In any tate 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 is ue employment or age ·ertificates or permits showing that the employee is of the required age. 

SEc. 4. No employer, for the purpose of defeating the purposes 

or provisions of the Act or of thi Code, shall reclassify employees 

or duties of occupations performed or engage in any other subterfuge. 

SEc. 5. Every employer shall make reasonable provision for the 

safety and health of his emplo ees at the place and during the hours 

of their employment. 

SEo. 6. No provision in this Code shall supersede any State or 

Federal law which impose 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. 

SEc. 7. All employers shall post complete copies of the labor provisions of this Code in conspicuous places accessible to employees. 

SEc. 8. From and after said effective date, no ~!ember of the Industry shall charge a rental of more than twelve dollars per month in 

Louisiana or sixteen dollars per month in any other part of the 

United States to any employee for any one family house, including 

water, gas, and such other services as are custo1narily furnished by 

the ~!ember of the Industry without extra charge in connection 

therewith, nor engage in any subterfuge for the purpose of defeating 

the intent of this provision. No employee shall be required to lease 

or occupy a house owned or controlled by any Member of the 

Industry. 

SEC. 9. (a) Employees in the Industry shall ha,e the right to 

organize and bargain collectively through representatives of their 

own choosing, and shall be free from interference, 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 employee i~ the Industry_ ~nd no one seeking employment 

therein shall be required as a cond1t10n of employment to join any 
6 

company union or to refrain from joining, organizing, or assisting 

a labor organization of his own choosing. 

( c) Employers of labor in the Industry shall comply with the 

maximum hours of labor, minimum rates of pay, and other conditions 

of employment approved or prescribed by the President. 

ARTICLE IV-PRODUCTION 

SECTION 1. Each Member of the Industry shall, insofar as is 

possible without infringing obligations existing on November 28th, 

1933, for the purchase of gas, so regulate its current production of 

all ordinary grades of carbon black as to prevent the same from 

exceeding its current deliveries. In case at the end of any period 

of six calendar months the quantity of such black held in storage 

by any Member of the Industry shall have increased ( except through 

purchase of black or unavoidable purchase of gas) such member 

shall reduce its storage by the same amount during the next six calendar months, and failure so to do shall be deemed an unfair method 

of competition within the meaning of the Act. Provided, however, 

that in case any Member of the Industry is prevented from regulating its production to the full extent herein required by reason of 

such existing obligations for the purchase of gas, and this results 

in an unavoidable increase in his inventory, the other members shall 

not be compelled to restrict their inventories below a percentage of 

increase equal to that of such member. 

SEc. 2. The present capacity of carbon black factories of the 

United States, as a whole, is in excess of present or any prospective 

needs. Therefore, any material increase in the plant capacity of the 

Industry shall be made only after approval of such increase by the 

Code Authority, whose decision shall be subject to the approval of 

the Administrator; provided, however, that such approval shall not 

be construed to supersede or modify in any way State statutes or 

regulations. The production of carbon black by any authorized new 

factory capacity for the first six months that it shall be in operation 

shall not be subject to the provisions of the first Section of this 

Article. 

ARTICLE V-PRICES 

SECTION 1. Each Member of the Industry shall, on such date as the 

Code Authority shall designate, publish and file with the Secretary 

of said Code Authority a statement of the minimum price to customers thereafter to be quoted by it .for the standard grades of carbon 

black sold by it. No Member of the Industry shall' make or quote 

any price lower than that filed until five days after filing with the 

Secretary of the Code Authority a new minimun1 price; nor shall any 

Member of the Industry or its agent offer or grant any terms, inducements, rebates, or conditions having the effect of reducing the 

cost to the customer below its minimum price at the time in effect 

hereunder; nor shall any Member of the Industry or its agent until 

such five days shall have elapsed suggest, intimate, or promise to a 

customer at any time a future price below such minimum price. The 

Secretary shall immediately notify each Member of the Industry by 
7 

telegraph and by letter of all initial minimum price filed and of all 

price changes thereafter made by any such Member.1 

SEc. 2. If the initial minimum price filed by any Member of the 

Industry be lower than that filed by another Member, such other 

:Member shall have the right to reduce its price to the lower rate by 

notification to the Secretary of the Code Authority effective immediately. And upon any existing price being reduced by any Member 

of the Industry, upon five days' notice as hereinbefore provided, any 

other Member shall' be at liberty to adopt said new minimum price 

a it own as soon as the same shall become effective, and such Mem4 

her shall give the Secretary written notice of its adoption of said new 

minimum price at or before the time such action is taken. The foregoing provisions of this Article are subject to the following 

excel?tions : 

(a) In making sales of carbon black to another concern which is 

bound by the provi ions of this Code a Member of the Industry may 

allow any discount it may see fit. 

(b) No 1fember of the Industry shall sell any carbon black as 

substandard without first giving the Code Authority at least five 

days' notice thereof, and giving the Code Authority an opportunity 

to investigate the true grade o:f the carbon black so to be sold. No 

carbon black found by the Code Authority not to be substandard 

shall be sold by a :Member of the Industry at a price less than the 

price of said Member on file for standard carbon black.2 

SEc. 3. Any violation of this Article shall be deemed an unfair 

competitive practice. 

SEc. 4. The provisions of this Article shall not apply to contracts 

made prior to the approval of this Code. True copies thereof shall 

be filed with the Code Authority within ten days after the effective 

date of the Code. 

ARTICLE VI-ORGANIZATION, POWERS, AND DUTIES OF THE CODE 

AUTHORITY 

SECTION 1. A Code Authority for the administration of this Code 

is hereby constituted consisting of one member to be appointed by 

each member of the Industry who is or shall become a member of the 

National Gas Products Association, and in addition thereto there 

may be one or more members, without vote, and without expense to 

the Industry, to be appointed by the Administrator. The first and 

succeeding terms of office of any member appointed by the Administrator shall be for a term of six months from the date of appointment. 

SEo. 2. The National Gas Products Association or any other association directly or indirectly participating in the selection or activities of the Code Authority shall, (1), impose no inequitable 

restrictions on membership, and, (2), submit to the Administrator 

true copies of its Articles of Association, bylaws, regulations, and 

any amendments when made thereto, together with such other information as to membership, organization, and activities as the Administrator may deem necessary to effectuate the purposes of theAct. 

1 See paragraph 2 of Order approving this Code. 2 See paragraph 2 of Order approving this Code. 
8 

SEC. 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 prescribe 

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

find that the Code Authority is not truly representative or does 

not in other respects comply with the provisions of the Act, may 

require an appropriate modification in the method of selection or 

constitution of the Code Authority. 

SEC. 4. The expenses of administration of the Code shall be determined and assessed against all members of the Association by the 

Code Authority in an equitable manner, subject to review and modification by the Administrator. 

SEc. 5. The Code Authority shall have the following powers and 

duties, the exercise of which shall be reported to the Administrator 

and shall be subject to his right to review and to disapprove any 

action taken by the Code Authority: 

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

provide for the compliance of the Industry with the provisions of 

the Act. 

(b) To adopt Bylaws, rules, and regulations for its government 

and procedure and for the administration and enforcement of the 

Code. 

( c) To obtain from members of the Industry such information and 

reports as are required for the administration of the Code and to 

provide for submission by members of such information and reports 

as the Administrator may deem necessary for the purposes recited 

in Section 3 (a) of the Act, which information and reports shall 

be submitted by members to such administrative and/or government agencies as the Administrator may designate; provided that 

nothing in this Code shall relieve any member of the Industry of 

any existing obligations to furnish reports to any Government 

agency. The Code Authority may also gather such other statistics as it may deem advisable and make and publish from time to 

time such forecasts of future demand as it may see fit. No individual 

reports shall be disclosed to any other member of the Industry 

or any other party except to such governmental agencies as may be 

directed by the Administrator. 

( d) To use such trade associations and other agencies, employ such 

experts, and/or agents 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 and agencies 

shall at all times be subject to and comply with the provisions 

hereof. 

( e) To m.ake recommendations to the Administrator for the coordination of the administration of this Code with such other codes, 

if any, as may be related to the Industry. 

(f) To secure from members of the Association an equitable and 

proportionate payment of the reasonable expenses of maintaining 

the Code Authority and its activities. 

(g) To cooperate with the Administrator in regulating the use 

of any N.R.A. insignia solely by those members of the Industry 

who have assented to, and are complying with, this Code. 
9 

(h) To recomn1end to the Administrator further fair trade practice provisions to govern members of the industry in their relations 

with each other or with other industries and to recommend to the 

Adminstrator measures_ for industrial planning, including stabilization of employment. 

(i) The Code Authority shall have the right in its rules or 

regulations, to determine and provide for the following : 

(1) To fix the term of office of the members of the Code Authority ~ elected by members of the Indu try which in the ab ence of other 

provi ion hall be from the effective date of thi ode and until 

June 15, 1935. 

(2) Tolrovide for the filling of vacancies in the member hip of 

the Code uthority which are appointed by :Member of the Industry, ,Yhich in the ab ence of other provi ion hall be filled by the 

designation of the 1ember of the Industry who designated the 

original :Member. In the event of the failure or refu al of such 

~iember of the Industry to appoint a new Memb 0 r of the Code 

Authority within thirty days after uch vacancy shall occur, the 

Code Authori'-y may in it discretion fill such vacancy. 

(3) From time to time to determine the number of member of 

the Code Authority requisite to constitute a quorum. which in no 

event shall be less than a majority thereof. 

(4) To adopt its own rules of procedure fix its own meeting dates, 

and place or place of meeting, and elect it own chairman an l its 

secretary, who need not be member of the Code Authorit}. 

( 5) To provide that all action of the Code Authority except such 

as require unanimous vote hall be either (a) by a majority vote of 

the members present at a meeting at which a quorum . hall be pre ent 

or (b) without a meeting on any question submitted in writing to the 

members of the Code Authority by written ,ate of a majority of the 

whole number of the members thereof. 

( 6) To provide that members of the Code Authority ma , de ignate alternates to act for them at meeting of the Code uthority. 

(j) From time to time by unanimou vote of tho e pre ent to make 

such recommendations as it shall deem consistent with and in furtherance of the provi ions of this Code or for the modification or 

amend.Jnent thereof. 

(k) Upon complaint of intere ted parties, or upon it own initiative, to inquire into and inve tigate the operation of this Code and 

any violations thereof and to aid the Administrator in the achninistration of this Code and the Act. 

ARTICLE VII-M:ooIFrc.A TION 

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

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

provisions of subsection (b) of Section 10 of the Act, from tin1e to 

time to cancel or modify any order approval, license, rule, or regulation i sued under said Act. 

SEo. 2. This Code, except as to p_rovisions required by the Act, 

may be modified on the basis of experience or changes in circumstances, such modifications to be based upon application to the Administrator and such notice and hearing as he shall specify, and to 

become effective on approval of the President. 
UMIVERSITY OF Fl ORIOA 

10 II I II IIIIII Ill lll lllll lllll II IIII IIIIII IIII Ill Ill llllll llll Ill I I 

3 1262 08850 2611 

ARTICLE VIII-1\{oNOPOLIES 

No provision of this Code sha.11 be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. 

ARTICLE IX- EFFECTIYE DATE 

This Code shall become effective on the second Monday, which is 

not a holiday, after its approval by the President. 

Approved Code No. 269. 

Registry No. 709-0~. 

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