Approved Code No. 465 Registry No. 1609-06 

NATIONAL RECOVERY ADMINISTRATION 

C,ODE OF FAIR COMPETITION 

FOR THE 

BROOM MANUFACTURING 

INDUSTRY 

AS APPROVED ON JUNE 18, 1934 

'WE DO OUR PARf 

&.;._ ..... - 5 

u.s. DEPOS'tTORY I -~-w:mcxa;;::z ·~~~~ 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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Approved Code No. 465 

CODE OF FAIR COMPETITION 

FOR THE 

BROOM MANUFACTURING INDUSTRY 

As Approved on June 18, 1934 

ORDER 

APPROVING CoDE OF FAIR CoMPETITION FOR THE BRooM 

MANUFACTURING 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 Broom Manufacturing Industry, and hearings having been duly held thereon and the annexed report on sai<.l 

Code, containing findings with respect thereto, having been made 

and directed to the President: 

NO\iV, THEREFORE, on behalf of the President of the United 

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

pursuant to authority vested in me by Executive Orders of the Pre ident, including Executive Order No. 6543-A, dated December 

30, 1983, and otherwise; do hereby incorporate by reference said 

annexed report and do find that said Code com plies in all respects 

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

of Fair Competition be and it is hereby approved. 

Approval recommended: 

ARMIN "'iV. RILEY' 

HuGH S. JoHNsoN, 

Administ1·ator for Industrial R ecovery. 

Division Ad1ninistrator. 

"'VASHINGTON, D.C., 

June 18, 1934. 

CS250°----657-119----34 (19) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The vV hite House. 

Sms This is a report on the hearing of the Code of Fair Competition for the Broom Manufacturing Industry held in vVashington, 

D.C., :March 9, 1934, pursuant to notice of hearing number 540, dated 

February 23, 1934. 

GENERAL 

This indu try is composed of persons, firms and corporations 

engaged in the manufacture of household, toy, whisk and metal case 

brooms, quite generally throughout the United States. Broom 

manufacturing was originally a household industry, clustering about 

the smaller centers of population where broom corn was produced. 

At the present time the industry is concentrated for the most part 

in and about the larger centers, although considerable rural household production still exists. It is estimated that there are approximately 350 establishments employing 4086 workers. There are 

numerous mall factories or shops operated by individuals a,lone or 

employing one, two or three workers. The small shops are an important factvr in the industry and are largely responsible for the 

adoption of the wage minimum which the Code provides. Approximately 20 ;1'a of the notal production occurs in prisons and other 

insti tu ti ons. 

Article VII governing prison-made goods, and Article VI II dealing with sheltered workshops, are in harmony with the recent provisions regarding institutional products as provided for in the Compact of Fair Competition approved April 19, 1934, and otherwise. 

This Code prohibits the employm.ent of any person under 16 years 

of age and under 18 years of age at occupations which are hazardous 

or detrimental to health. · 

The wage minima set forth in the Code represent an increase of 

approximately 60% over the average wage paid prior to August, 

1933. It is indicated that while this Code will not materially increase. 

employment within the industry there will be a marked tendency to 

stabilize employment and furnish steady work for the employees 

thus engaged. 

Of 122 companies reporting hours worked, 80 companies ( 65 % ) 

report that in years of normal business their work week exceeded 

40 hours, and of these 80 companies, 31 report normal working hours 

in excess of 50 per week. 

The average wages for this industry have always been very low. 

This is due to many factors, among which are: 

1. Influence of in titutional and prison-made goods which 

amounted to about 20% of total volume in 1932, 10% of which was 

made in prisons, 6% in institutions for the blind, and 4% in other 

in titutions. 

(20) 
21 

2. Large number of aged and physically handicapped persons to 

whom this industry (requiring, as it does, little skill) offers a means 

of livelihood. 

3. Growing use of brushes, carpet and electric vacuum sweepers, 

mops and other broom substitutes. 

4. Large number of one and two-man shops (many on the farms 

or as a fill-in occupation.) This is an unemployment industry. A 

handicapped person can quickly learn to make brooms, peddle 

them from door to door, and make some wage for himself, even 

though small. This type of labor makes up about half of the 

total for the industry and will not come under this code. 

5. Another factor has been the decline in the use of parlor, mill 

and stable brooms due to lack of demand caused by economic change . 

. The minimum 'vages proposed will average ab ut 31¢ per hour. 

Compared with the average minimum wages paid for the fir t six 

months of 1933 of 19¢ per hour, this i an increase .of 12¢ per hour 

(or 61 % ). Based on figures supplied by a reputable outside agency, 

there will be an increase i~ annual payrolls for 60% o£ the industry 

amounting to $930,000 and an increase in payrolls for the remaining 40% amounting to $500,000, making a total increase of 

$1,430,000. This represents a general payroll increase of 621h %. Only 10% of the reporting companies had minimum wages higher 

than thosJ required for male labor, and only 5% had wages higher 

than tho e required for female labor. The report brings out the 

fact that of the companies reporting, two plants were paying male 

labor as low as 4¢ per hour, two plants were paying female labor 

as low as 4¢ per hour, one plant was paying male labor 6 cents per 

hour, 10 plants were paying: female labor 12 cents per hour, and 

21 plants were paying male labor 12¢ per hour. 

For companies r eporting (50 % of indlust1·y) 

Actual wages for first six months 1933 : 

2,388,000 man hours @ 31¢---------------------------------- $740, 280. 00 

Average wage was 160% of minimum oL___________________ 19¢ 

New minimum wage will average____________________________ 31¢ 

160o/o of 31¢-~---------------------------------------------- 49.6¢ Increase in averao-e wage___________________________________ 18. 6¢ 

Man h ours per year________________________________________ 5,000,000 

Increase in annual payrolL _________________________________ $930, 000. 00 

(For co1npanies not 1"e]Jorting (40 % of industry) 

Studie sh ow a much lower wage in the ~mall shops and based 

th re n it is estimated that for the e companies the nverage wage before N.R.A. ·as ______________________ __ ____ _______ _______ _ 22¢ 

Average after this code ___________________ ~ __________________ .:_ __ 37¢ 

Increase_____ ____________ ___ ____________________________ _______ 15¢ 

Man hours per year_____________________________________________ 3, 333, 333 

Increase in annual payxolL _____________________________________ $500, 000. 00 

Total tor -tndustry 

Estimated annual payroll before N.R.A,; 

5.000,000 hours @ 31¢------------------------------------- $1, 550, 000. 00 

3,333,333 h ours @ 22¢-------- ----------------------------- 733, 000. 00 

Total __________________________________________________ $2,283,000.00 

T otal increase __________________________________________ $1, 430, 000. 00 

Percent of increase___________________________________ 62lj2 o/o 
22 

The foregoing does not take into direct consideration wage incr€ases which will result because of shortening of hours or by reason 

of the minimum for office workers. Neither does it consider the 

increase in wages or earnings to the one and two man shops not 

considered in arriving at what is taken as 100% for the industry. 

PROVISIONS .AS TO HOURS 

This Code provides for a maximum work week of 40 hours and 

normal work day of 8 hours. There are exceptions with regard to 

executive, administrative, or supervisory employees who regularly 

receive not less than $30.00 per week, and outside sal€smen. Watchmen may work 56 hours per week. Chauffeurs and deliverymen 

may work 44 hours per week. No special peak period is provided 

for by this Code, but employees engaged in emergency maintenance 

or emergency repair work involving breakdowns or protection of 

life or property shall be paid at the rate of not less than one and 

one-third times the normal rate for all hours worked in excess of 

the maximum allowed. 

PROVISIONS .AS TO WAGES 

Factory employees may be divided into two groups, namely, those 

who operate machines and those who do not operate machines. Machine operators shall be paid at a rate not less than 421j2 ¢ per hour 

in the North or 40¢ per hour in the South. lVIale employees not 

operating machines shall be paid at a rate of not less than 321j2¢ 

per hour in the North or 30¢ per hour in the South; except that a 

differential of 21j2 ¢ per hour is allowed in the case of female employees engaged in light work, it being provided that women doing 

the same work as male employees shall r€ceive the same rate of pay. 

Office employees shall be paid at a rate of not less than $16.00 per 

week in cities of 500,000 population or over or $15.00 elsewhere. 

One and one-half times the normal rate shall be paid for all time 

worked (except by watchmen, outside salesmen, and persons employed in an executive, supervisory, or administrative capacity) on 

Sundays, New Year's Day, July Fourth, Labor Day, Thanksgiving 

Day, Christmas Day, and such other holidays as may be proclaimed 

by the President. 

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

having found as herein set forth and on the basis of all the prOceedings in this matter; 

I find that: 

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

removal of ob tructions 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 practice , by promoting the 

fullest possible utilization of the present productive capacity of 

industries, by avoiding undue restriction of production (except as 
23 

may be temporarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing 

power, by reducing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally 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 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 asso- ciation is an industrial (or Trade) 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 the above reasons this Code has been approved. 

Respectfully, 

JUNE 18, 1934. 

HuoH S. JoHNsoN, 

Administrator. 
CODE OF FAIR COMPETITION FOR THE BROOM 

MANUFACTURING I~""DUSTRY 

ARTICLE I-PURPOSES 

To effect the policies of Title I of the National Industrial Recovery 

Act, this Code is established as a Code of Fair Competition for the 

Broom Manufacturing Industry, and its provisions shall be the 

standards of fair competition for such Industry and shall be binding 

upon every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. As used in this Code : 

(a) The terms " Broom Manufacturing Industry " and "Industry 1

' include the manufacture and sale by the manufacturer of 

household, industrial, whisk, toy and metal case brooms, and such 

related branches as may, from time to time, be included under the 

provisions of this Code. 

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

form of enterprise engaged in the Industry either as an employer 

or on his or its own behalf. 

(c) The term " Employee" includes any and all persons engaged 

in the Industry, however compensated, except a member of the 

Indu try. 

(d) The term " Employer " means any person by whom any such 

employee is employod or compensated. 

(e) The term "President" means the President of the United 

States. 

(f) The terms "Act" and "Administrator" mean respectively, 

Title I of the National Industrial Recovery Act, and the Administrator for Industrial Recovery or his duly appointed agent. 

(g) The term "Person" means any individual, partnership, corporation, association, or any other business unit. 

(h) The term "Association" means the National Broom Manufacturers' Association. 

(i) The term "'iV atchman" includes any employee whose principal function is watching and guarding the premises and property 

of an e tabli hment of a member of the Industry. 

(j) The term "Out ide Salesman" means any salesman who is 

engaged not less than ·ixty per cent ( 60%) of his working hours 

outside the place of business of his employer. 

(k) The term "State" means and includes any and all States, 

Territories, and the District of Columbia. 

(l) The term "Sheltered 'Vorkshop" means any charitable in titution, or an activity of a charitable institution, conducted not for 

(24) 
25 

profit, but for the purpose of providing remunerative employment 

for physically, mentally or socially handicapped workers. 

( m) The term " Broom Corn " means the panicles, fibres or top 

growth of the broom corn plant, an agricultural product. · (n) The term" Productive Machinery" means winding machines 

and se-nTing machines in reference to household, industrial and whisk 

brooms; and nailing, stapling, or banding machines and nailing 

benches in reference to metal case brooms. 

( o) The term "Product" means any household, industrial 1 whisk, 

toy, or metal ca e broom, or any part or piece thereof. 

(p) The term "Code Authority" means the supervisory agency 

designated in Article VI of this Code. 

( q) Population :for the purpose of this Code shall be determined 

by reference to the latest Federal Census. 

AnTICLE III-HouRs 

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

forty (40) hours in any week or eio-ht (8) hours in any twenty-four 

(24) hour period beginning at midnight or six (6) days in any seven 

(7) day period, except a herein otherwi e provided. A normal 

work day shall not exceed eight (8) hours. 

(a) The provisions of this Article shall not apply to executive, 

supervisory and administrative employees, provided that they shall 

be paid regularly at a rate of not less than thirty dollars ($30.00) 

per week, and out i le salesme:1. 

(b) vVatchmen may be permitted to work not more than fifty-six 

(56) hours in any week. 

(c) Chauffeurs and deliverymen may be permitted to work not 

more than forty-four (44) hours in any week. 

SEcTION 2. The maximum hours fixed in Section 1 herein shall not 

apply to any employees on emergency maintenance or emergency 

repair work involving breakdowns or protection of life or property, 

but in any such special case at least one and one-third times the 

normal rate shall be pail for hour worked in excess of such maximum. Report shall be made monthly to the Code Authority stating 

the number of hours worked by all employees in excess of such 

maximum hours. 

SECTION 3. No employer shall knowingly permit any person or 

employee to work for a total number of hours in excess of the number of hours prescribed for each week and day, whether employed 

by one or more employers. 

ARTICLE IV-W AGE.S 

SECTION 1. No person employed in clerical, accounting or other 

office work shall be paid less than at the rate of: 

$16.00 per week _____________________ In cities of 500,000 population or over, or 

in the mediate trade areas thereof. 

$15.00 per week _____________________ Elsewhere. 

except that office boys and messengers may be paid at a rate of not 

less than two dollars ($2.00) per week below the minimum wage 

otherwise applicable; provided, however, that not more than ten per 

G8250°----G57-119----34----2 
26 

cent (10%) of the total number of office employees may be so employed, but each e tabli hment may have at least one. 

SECTION 2. Other employees shall be paid not less than the following minima re pecti vely : 

(a) Operator of productive machinery shall receive not less than 

forty-two and one-half cents (421j2 ¢) per hour in the North or forty 

cents ( 40¢) per hour in the South. 

(b) Other male employees shall receive not le s than thirty-two 

and one-half cents (321j2 ) per hour in the North or thirty cents 

(30¢) per hour in the South. 

(c) Other female employee , generally engaged in light work, 

shall receive not less than thirty cents (30¢) per hour in the North 

or twenty-seven and one-half cents (271j2¢) per hour in the South. 

(d) For the purpo_es of this Code the " South' shall include that 

section of the United States consisting of the following states: Virginia, North Carolina, South Carolina Tennessee, Georgia, Florida, 

Alabama, Mi sissippi Louisiana and Texas; and " North " means the 

rest of the United States. 

SECTION 3. Thi Article establishes minimum rates of pay which 

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

SECTION 4. No employee whose normal full time weekly hours, 

n,fter the approval of this Code, shall be sixteen and two-thirds per 

cent (16%%), or le s, below his average full time weekly hours for 

the four months ending May 1, 1933, shall have his full time weekly 

earnings reduced below the average weekly earnings of such employee during said four months' period. In case the reduction in 

hours, as so mea ured, is more than sixteen and two-thirds per cent 

(16%%), employers shall make an equitable readjustment of hourly 

wage rates upwards, but in no case shall such hourly wage rates be 

less than such employees would have received under the preceding 

sentence had their weekly hours been reduced by only sixteen and 

two-thirds per cent (16%%). In no case shall hourly wage rates be 

reduced. 

SEcTION 5. Female employees performing substantially the same 

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

employees. 

SECTION 6. Every contract of employment shall provide that wages 

shall be paid in lawful n1oney or by negotiable check no less frequently than semi-monthly. \Vithin fifteen (15) days after the 

approval of this Code all back wages due employees for any period 

prior to the effective date shall be paid in lawful money or negotiable check. 

SECTION 7. A person whose earning capacity is limited because of 

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

this Code, if the employer obtains from the state authority desianated by the United States Department of Labor, a certificate 

authorizing such per on~ employment at uch wage and for such 

hours as shall be stated in the certificate. Such authority shall be 

guided by the instruction of the United States Depar~ment of Labor 

in issuing certificates to uch persons. Each employer shall file 

monthly with the Code Authority a list of all uch per ons employed 
27 

by him showing the wages paid to, and the maximum hours of work 

!or such employee. 

SECTION 8. No employer shall permit any person to work in the 

Industry without compensation at least equal to the minimum wages 

provided for in this Article, except as provided for in Section 7, 

above. 

SECTION 9. Time and .one-hal£ the normal rate shall be paid for 

all time worked (except by watchmen, outsid-e salesmen, and those 

persons employed in an executive, supervisory, or administrative 

capacity, as set forth in Section 1 (a) of Article III) on Sundays 

and the following holidays: New Year's Day, July fourth, Labor 

Day, Thanksgiving Day, Christmas Day, and such other holidays 

as may be proclaimed by the President. 

AnTICLE V-GENERAL LABOR PROVISIONS 

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

employed in the Indu try. No person under eighteen (18) years 

of age shall be employed at operation or occupations which are 

hazardous in nature or dangerou to health. The Code Authority 

shall submit to the Administrator within thirty ( 30) days after the 

effective date of this Code a li t of such operations or occupations. 

In any jurisdiction, 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 jurisdiction empowered 

to issue employment or age certificates or permits showing that the 

employee is of the required age. 

SECTION 2. (a) 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 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 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·. 

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

minimum rates of pay, and other conditions of employment approved 

or prescribed by the President. 

SECTION 3. No provisions in this Code shall supersede any law 

which impose· more stringent requirements on employers as to age 

of employees, wages, hours of work, or as to safety, health, sanitary 

or general working conditions, or insurance, or fire protection, than 

are imposed by this Code. 

SECTION 4. Every employer shall make reasonable provision for 

the safety and health of his employees at t11e pln.ce and during the 

hours of their employment. Standards for safety and health shall 

be submitted by the Code Authority to the Administrator within 

six (6) months after the effective date of this Code. SECTION 5. No employee now employed at a rate in exce. s of the 

minimum shall be discharged and reemployed at a lower rate of pay 

for the purpose of evading the provisions of this Code. 
28 

SECTION 6. \Ynges shall be exempt from fines; and from charges 

and deductions,. exc~pt charges .and .deductions covering employees: 

voluntary contnbutwns to penswn, msurance or benefit funds; and 

no employer shall withhold wages except upon service of legal 

proce s or other papers lawfully requiring such withholding. De- duction for purpo e not heretofore stated may be made only when 

the aoTeement i in writing and is kept on file by the employer open 

to the inspection of the Administrator or his duly authorized agent. 

SECTION 7. Employers shall not change the method of payment 

of employees' compensation or reclassify employees or duties or 

occupations performed by employees or engage in any subterfuge 

so a to defeat the purposes of the Act or the provisions of this Code. SECTION 8. Each employer shall post and keep posted in conspicuou · places acce sible to all employees Articles III, I V and V of this 

Code. Every member of the I ndustry .__ hall comply with all rules 

rmd regulations relative to the posting of provisions of Codes of 

Fair Competition which may, from time to time, be pre ·cribed by 

the Administrator. 

ARTICLE VI-AmuiNISTRATION-0RGA rzATION, ow~ns AND DUTIES 

oF THE ConE AUTHORITY 

A. ORGANIZATION AND COXSTITUTION 

SECTION 1. A Code Authority is hereby established consisting of 

seven (7) members. All members of the Broom I ndustry who shall 

have qualified to participate in the selection of the members of the 

Code Authority in accordance with Section 11 of this Article shall 

have the right to vote for the member. of the said Code Authority. 

Four ( 4) of the members of the Code Authority shall be elected by 

the National Broom J\1anufactnrers' Association. The other three 

(3) members of said Code Authority shall be selected from the 

members of the Industry who are non-members of the As ociation. 

' Vithin forty-fiYe ( 45) days from the effective date of this Code, the 

A ·sociation members of the Code Authority ha ll formulate and 

submit for the approval of the Administrator an equitable method 

by which the three (3) non-Association member of said Code 

Authority shall be selected. SECTION 2. All members of the Code Authority shall hold office 

for one ( 1) year from the date of their election or until their re p<'ctive .. ucce sors are elected, provided that the non-members of the 

A .. ociation so elected shall not take office until the terms of their 

predeces ors hall have expired. Elections ·of the Code Authority 

shall be held annually on a date fi.·ed by the Code Authority. SEcTION 3. In addition to membership, as above provided, there 

may be one or more members without vote to be appointed by the 

Administrator to serve on the Code Authority for such time a he 

may designate. The representatives who may be appointed by. the 

4\.dministrator, together with the Administrator, shall bo g1v n 

notice of and shall be permitted to sit at all meetings of the Code 

Authority. 

SECTION 4. Any vacancies occurring .in the me ~bership ?f the 

Code Authority shall be filled by electiOn as prov1decl herem for 

the election of the original members. 
29 

SECTION 5. In t~1e selection of the members of the Code Authority ~ 

a vote cast by ma1l or by proxy shall have the same force and effect 

as a vote cast in meeting. 

SECTION 6. The Code Authority shall have as its Chairman one of 

its members duly elected by the members thereof. 

SECTION 7. If the Administrator shall determine that any action 

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

or contrary to the public interest, the Administrator may require 

that such action be suspended to afford an opportunity for investi- gation 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 elisa pprove after thirty days' notice to him of intention to proceed 

with such action in its original or modified form. 

SECTION 8. Each trade or industrial 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, by-laws, r egulations, and any amendn1ents when made 

thereto, together with such other information as to membership, organization, and activities as the Administrator 1nay deem necessary to effectuate the purposes of the Act. 

SECTION 9. 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 of the Code 

Authority. 

SECTION 10. Nothing contained in this Code shall constitute the 

members of the Code Authority partners for any purpose. Nor 

sha.ll 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. Nor shall any member of the Code Authority, exercising reasonable diligence in the conduct of his duties hereunder, be liable to anyone for any action or omission to act under 

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

B. POWERS AND DUTIES 

SECTION 11. The Code Authority shall have the following further 

powers and duties, subject to such rules and regulations as may be 

issued by the Administrator : 

(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, subject to such rules and regulations as the Administrator 

may establish. 

(b) To adopt rules and regulations for its procedure and for the 

administration of the Code. 

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

reports as are required for the administration of the Code. In 

addition to information required to be submitted to the Code Authority, members of the Industry subject to this Code shall furnish 
30 

such stati tical information as the Admini trator may deem necessary for the purpo e recited in Section 3 (a) of the Act to such 

Federal and State agencie as he may de~ignate; pro-vided that 

nothing in thi Code hall relie\e any member of the Industry of · any exi ting obligation to furnish reports to any Government 

agency. No individual report shall be eli closed to any other member of the Inclu try or any other party except to such other Governmental agencies as may be directed by the Administrator. 

(d) It being found nece~ ary, in order to support the administration of thi Code and to maintain the tandards of fair competition 

e tabE heel by thi Code and to effectuate the policy of the Act, the 

Code Authority is authorized, subject to the approval of the 

Administrator: 

1. To jncur uch rea onable obligations as are nece sary and proper 

for the foregoing purposes and to meet such obligations out of funds 

which may be rai eel as hereinafter provided and which shall be 

held in trn t for the purpo es of the Code; 

2. To submit to the Administrator for his approval subject to 

such notice and opportunity to be heard as he may deem necessary, 

( 1) an itemized budget of its estimated expenses for the foregoing 

purpo e , and (2) an equitable basis upon which the funds necessary 

to .. upport such bud~t shall be contributed by members of the 

Indu try; 

3. 'After such budget and basis of contribution have been approved 

by the Administrator, to determine and secure equitable contribution 

as above set forth by all such members of the Industry, and to that 

end, if nece ary, to institute legal proceedings therefore in its own 

name. 

Only members of the Industry complying with the Code and contributing to the expenses of its administration as provided in Section 

1 hereof shall be entitled to participate in the selection of the members of the Code Authority or to receive the benefit of its voluntary 

activities or to make use of any emblem or insignia of tha National 

Recovery Administration. 

(e) To cooperate with the Aillninistrator in regulating the use 

of any N.R.A. in ignia solely by those members of the Indu try 

V\ho are complying with this Code. 

(f) The Code Authority i empowered to establish from time to 

time geographical division of the Industry and to increase or der::rease the number of such divisions all subject to the approval of 

the Admini trator. \Vhen any geographical division of the Industry ha been e tablished, the Code Authority shall nper\i e the 

election by the assentor to the Code in such division of a Regional 

Code Authority. All assentors to the Code maintaining an office or 

a plant in such diYision shall ba entitled to \Ote for the members of 

the Regional Code Authority and to erve as a member thereof. 

Regional Code Authoritie , o created, hall have the right to advi e 

the Code Authority in the admini tration of this Code on que tions 

having local application and shall a ist the Code Authority as 

directed b. them in the ad mini tration of this Code; provided, 

however that the Code Authority in deleo-ating any powers duties 

or functions to a Regional Code Authority shall not be relieved of 

any of its responsibilities under this Code. The Administrator 
31 

shall have the right to designate one or more Administration members to serve without vote on each such Regional Code Authority. 

Any action pursuant to this paragraph shall be subject to disapproval by the Administrator. 

(g) Upon application of a substantial number of the assentors to 

the Code in any Product Division of the Industry, the Code Authority may establish Product Divisions of the Industry. Such Product 

Divisions operating through duly elected committees may submit 

additional amendments for incorporation in this Code relating to 

trade practices of such Product Divisions. The Code Authority 

may also delegate to such Product-Division Committees administrative duties and functions relating to the trade practices of such 

divisions, subject to such rules and direction as the Code Authority 

ma,:y prescribe and subject to di approal by the Administrator. 

(h) To recommend 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 

Administrator measures for industrial planning, including stabilization of employment. 

SECTION 12. Members of the Industry and the Code Authority 

shall use their best efforts to insure the full observance of the conditions of this Code. Any violations of the terms of this Code which 

shall come to the knowledge of any mem.ber of the Industry shall 

immediately be communicated to the Code Authority by a sworn 

statement containing said charges of violations of the terms of this 

Code, together with all available substantiating evidence. 

It shall be the duty of the Code Authority to investigate such 

charges and any charges which shall come to the knowledge of the 

Code Authority through any other reliable source. The Code 

Authority shall request a statement under oath from the member 

of the Industry whose transactions are under investigation. If, 

after investigation, the Code Authority shall find that such charges 

are substantiated, it shall either notify the member so violating the 

conditions of this Code, r-equesting that such violations be discon- tinued, or it shall notify the Administrator in writing requesting 

him to take necessary action, or both. 

SECTION 13. In order to protect American Agriculture, the members of this Industry, and the consumer, the Code Authority, with 

the cooperation of the Department of Commerce shall collect and 

publish from time to time data pertaining to the import of broom 

corn produced outside of the United States andj or substitutes therefor and the import of brooms produced wholly or in part outside of 

the United States. The Code Authority is authorized to petition 

the President under Section 3 (e) of the National Recovery Act for 

restrictions on such imports as may- be necessary and desirable to 

comply with the intent of such section. 

ARTICLE VII-PrusoN MADE Goons 

SECTION 1. Where any penal, reformatory, or correctional institution or the State by which said institution is; maintained either 

by subscribing to the Compact of Fair Competition for the Prison 

Industries of the United States of America, or by a binding agree- ment of any other nature, satisfies the Administrator that merchan-
32 

elise 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 Section 2 hereof shall not apply 

to any merchandi e produced in such manner in an institution which 

is a party to uch agreement. 

SECTION 2. Except as proYided in the foregoing section no member 

of the Industry shall knowingly produce, buy, or contract to buy 

any merchandise produced in whole or in part in a penal, reformatory, or correctional institution. No member of the Industry shall 

knowingly sell or offer for sale such merchandise. Nothing in this 

section, however, shall affect contracts, which the n'lember of the 

Industry does not have the option to cancel, made with respect to 

such merchandise before the approYal of this Code by the President 

of the United States. 

ARTICLE VIII- SHELTERED \V ORKSHOPS 

SECTION 1. No provisions of this CD de shall be construed to apply 

to any sheltered workshop, provided such sheltered workshop shall 

have executed a pledge to the Admini trator (1) that it will not 

employ minors under 16 years of age, except those whose employ- ment shall be approved by the appropriate Regional Committee 

of the National Sheltered \\Torkshop Committee, (2) that it will not 

engage in destructive price cutting or any other unfair method of 

competition, and (3) that it will not wilfully hamper or retard 

ihe purposes of the Act. 

ARTICLE IX- 1\fARKETING & TRADE PRACTICE RULES 

SECTION 1. Selling Below Oost.- No member of the I ndustry 

shall sell products of the Industry at lower than his own cost, as 

computed in accordance with the provisions of Sections 2 and 3 of 

this Article; provided, however, that any member of the I ndustry 

may sell below his own cost to meet sales prices of a competitor, who 

is not violating the provisions of this Article, on products of equivalent design, character and quality. 

For the purpose of determining a violation of this clause, all 

terms of ale, including cash cbscounts shall be considered. N othing contained in this section shall be construed so as to in any 

manner fix prices paid to producers of broom corn. SECTION 2. Accounting.-Each member shall use an accounting 

sy tem which shall conform to the principles of and is at lea t as 

detailed and complete as the standard and uniform method of 

accounting that shall be formulated or approved by the Code 

Authority, subject to the approval of the Administrator, with such 

variations therefrom as may be required by the individual condi- tion affecting any member, proYided such Yariations are approved 

by the Administrator after recommendation by the Code Authority. 

SECTION 3. Elements of Oost.-For letermination of co t as used 

in Section 1, of this Article the Code Authority, with the approval 

of the Administrator, shall from time to time set forth the elements 

which shall enter into cost. Such elements hall provide for the 

inclu ion of material costs at purchase cost or replacement market 

cost whichever is lower. 
33 

SECTION 4. lnvestigation.-Vpon complaint against any member 

of the Industry of a violation of Sections 1, 2 or 3 of this Article, 

the Code Authority may, upon authority granted by the Administrator, designate a certified, registered, chartered, or any other 

lawful practitioner of public accountancy, to examine, during the 

usual hours of business, the books and record of the member of the 

Industry against whom complaint has been made. Only such books 

and records as pertain to the alleged violation may be examined by 

the accountant employed, and said accountant shall not reYeal to 

the Code Authority any other information obtained than information which is pertinent to the alleged violation. 

SECTION 5. Substitutes.-Any broom containing any particle~ 

piece or part of any grass, straw, or fibre as a substitute for broom 

corn shall have attached thereto, in such manner as to be plainlJ 

visible to the purchaser thereof, a separate label at least one inch 

removed from the regular label, plainly printed in not less than 

10 point bold face type in black letters on white paper, the legend: 

"This broom contains (here give the com1non b·ade 11a17M of the 

substitute ). a substitute for broom corn." 

Failure so to mark is a violation of this Code. 

SECTION 6. Trade Practice R1.tles.-The following practices constitute unfair methods of competition and are prohibited: 

(a) Bribery.-No member of the Industry shall give, permit to 

be given or directly offer to give, anything of value for the purpose 

of influencing or rewarding the action of any employee, agent or 

representative of another in relation to the busine s of the employer 

of such employee, the principal of such agent or the represented 

party, without the knowledge of such employer, principal or represented party. This provision shall not be con trued to prohibit free 

and genBral distribution of articles commonly used for advertising 

except so far as such articles are actually u ed for commercial 

bribery as hereinabove defined. 

(b) Defmnation.-Disseminating, publishing or circulating any 

false or misleading information relative to any products or price 

for any product of any member of the Industry, or the credit stand- ing or ability of any member thereof. 

(c~ Inducing Breach of Existing Oontracts.-No member of the 

Industry shall wilfully induce or attempt to induce the breach of 

existing contracts between competitors and their customers by any 

false or deceptive means, or interfere with or obstruct the performance of any such contractual duties or services by any such means, 

with the purpose and effect of hampering, injuring or Bmbarrassing 

competitors in their business. 

No member of the Industry shall reqHire that the purchase or 

lease of any goods be a prerequisite to the purchase or lease of any 

other goods. 

(d) Unfair Practiccs.-Aiding or abetting any person within this 

Industry in any unfair method of competition contained in this 

Article. 

(e) False lnvoicing.-N o member of the Industry shall knowingly withhold from or insert in any quotation or invoice, any 

statement that makes it inaccurate in any material particular. 
34 

(f) Trad'e-Marks and Brand.s.-The unauthorized use o:f any design, trade-mark, brand, label, insignia, or slogan belonging to another :Member o:f the Industry, or simulation thereof, with the purpose or intent to deceive or having the tendency or capacity to 

deceive or mislead the purchaser. 

(g) Un.sold Merchandise.-Agreeing with buyers that brooms unsold may be returned for credit or returned :for exchange for other 

brooms. 

(h) Labels.-All products, except whisk brooms and toy brooms 

shall be labeled with the name and address or key number o:f the 

manufacturer plainly visible, provided, however, that members o:f 

the Industry who at the time of the approval of this Code are selling 

products o:f the Industry bearing labels which do not conform to the 

above may continue to do so until their present supply o:f such labels 

is exhausted, but in no m ent hull such use be continued more than 

ninety (90) days after the date o:f approval o:f this Code, and no . 

purchases o:f such labels shall hereafter be made by any member o:f 

the Industry. 

(i) Special Labels.-Furnishing to customers without recognition 

therefor in the sales price o:f the product o:f any special labels :featuring the name or names of any private brand, trade-mark or design 

of any person, partnership, firm or corporation, shall be considered 

a secret rebate and as such an unfair trade practice. 

(j) False Labeling.-To mark, label, or brand any broom in such 

a manner as to misrepresent the weight, size, quality or the material 

used therein. 

(k) Prizes and Pre?nium.s.-No member o:f the Industry shall offer 

any prize or premium or gift in pursuance o:f a plan which involves 

:fraud or deception or lottery, or which is an indirect price concession. 

ARTICLE X-MODIFICATION 

SECTION 1. (a) This Code and all the provisions thereof are expressly made subject to the right o:f the President, in accordance with 

the provisions of Sub-section (b) o:f Section 10 o:f the Act, fr01n 

time to time to cancel or modify any order, approval, license, rule, 

or regulation issued under Title I of said Act. 

(b) This Code, except as to provisions required by the Act, may 

be modified on the basis o:f experience or changes in circumstances, 

such modifications to be based upon application by members o:f the 

Industry to the Administrator and such notice and hearing as he 

shall specify, and to become effective upon approval by the Administrator. 

ARTICLE XI-MoNOPOLIEs 

No provisions o:f this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. 

ARTICLE XII-EFFECTIVE DATE 

This Code shall become effective the second Monday after 

approval. 

Approved Code No. 465. 

H.egistry No. 1609LO(). 

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UNIVERSITY OF FLORIDA 

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