Approved Code No. 193 Registry No. 406-1-09 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR T!:fE 

FOLDING PAPER BOX 

INDUSTRY 

AS APPROVED ON DECEMBER 30, 1933 

BY 

, .. . 

PRESIDENT ROOSEVELT 

WE DO OUR PART 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STAT~ 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superinte:&dent of Documents. Washington, D.C. - - - - - - - - Price 5 cents 
/ 

This publication is for sale by the Superintendent of Documents, Government 

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

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

Charleston, S.C.: Chamber of Commerce Building. 

Chicago, Ill.: Suite 1706, 201 North Wells Street. 

CleYeland, Ohio : Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, Mich.: 2213 First National Bank Building. 

Houston, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky. : 408 Federal Building. 

Memphis, Tenn.: 229 Federal Building. 

Minneapolis, Minn. : 213 F ederal Building. 

New Orleans, La.: Room 225-A, Customhouse. New York, N.Y.: 734 Customhouse. Norfolk, Va.: 406 East Plume Street. Philadelphia, Pa. : 9'33 Commercial Trust Building. 

Pittsburgh, Pa. : Chamber of Commerce Building. Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Building. 
Approved Code No. 193 

CODE OF FAIR COMPETITION 

FOR THE 

F'OLDING PAPER BOX INDUSTRY 

As Approved on December 30, 1933 

BY 

PRESIDENT ROOSEVELT 

Executive Order 

An apJJlication haYing been duly ma 1e, pursuant to and in full 

compliance with the provi ion of Title I of the National Industrial 

Recovery Act, approve 1 June 1G, 1933, for my approval of a Cod"' of 

Fair Competition for the Folding Paper Box Industry, and hearings 

having been held thereon and the Admini trator having rendered his 

report containing an analysis of the said Code of Fair Competition 

together with his recommendations and findings with respect thereto, 

and the Administrator having :found that the said Code of Fair 

Competition complies in all respects with the pertinent provisions of 

Title I of said Act, and that the requirements of clauses (1) and (2) 

of subsection (a) of Section 3 of the said Act have been met: 

NO\V THEREFORE, I, Franklin D. Roosevelt, Pre ident of the 

United State pursuant to the authority vested in me by Title I of 

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

otherwise, do t=tdopt and approve the report, recommendations, and 

findings of the Administrator, and do order that the said Code of 

Fair Competition be, and it is hereby, approved. 

FRANKLIN D. ROOSE\ ELT. 

Appro' al recommended: 

HuGH S. JOHNSoN, 

Administ1·ator. 

Tr.::: \V HITE Ho SE, 

Dece7nber 30, L933. 

29279°----296-lOD----34 (591) 
The PRESIDENT, 

DECEl\IBER 20, 1933. 

The White Hottse. 

SIR: This is a report of the hearing on the Code of Fair Competition for the Folding Paper Box Industry, conducted in vVashington 

on October 26, 1933, in accordance with the provisions of Title I 

of the National Industrial Recovery Act. 

Houns AND WAGES 

The Code provides a forty-hour week for factory workers, plus 

additional time for machine clea.ning and plant operation work 

to be paid for as overtime. For office employees the Code provides 

forty hours per week averaged over thirteen weeks, but not more 

than forty-eight hours in any one week. Slightly longer hours are 

specified for additional nonproductive employees. 

The minimum wage rates specified are 40¢ per hour in the North 

and 35¢ per hour in the South for male factory workers, with a 5¢ 

differential for women in each case. It is provided that women doing 

the same work as men shall receive the same pay. Office employees 

are to be paid a minimum of $16.00 a week in the North and $14.00 

in the South. 

Exemption from the minimum rates is provided only for office 

boys and girls and handicapped workers. Home work is prohibited, 

and the usual provisions for safeguarding employees are included. 

OTHER PROVISIONS 

The Code provides detailed regulations for accounting and selling, 

to meet the particular necessities of this industry. Provision for 

reports and recommendations is made, and certain unfair Trade 

Practices are prohibited. 

EcoNol\Irc EFFECT OF THE CoDE 

There are about 370 firms engaged in the manufacture of folding 

boxes, employing approximately 15,500 persons. Since 1929, production in this indu try has fallen off 15% . In the same period dollar 

volume of sales decreased 361j2%, largely as a result of price wars. 

Under the President's Reen'lployment Agreement 2,773 employees 

were added to the industry' pay rolls, brino-ing the present total of 

employment 2% above the 1929 level. 

Owing partially to price decreases, wages have been severely depressed in this industry. Under the Presidents Reemployment 

Agreement, the average hourly wage rates were increased 22% for 

male and 35% for female labor in the North, and 41% for male and 

50% for f emale labor in the South. The wage rates provided in the 

(592) 
593 

Code will increase the present minimum rates by about 15% . It is 

estimated that the rates under the President's Reemployment Agreement increased annual pay rolls by 11/2 million dollars, and that the 

rates proposed in this Code will add an additional 2 million dollars 

to pre ent pay roll . 

FINDINGS 

The Administrator finds that: 

1 a) The Code a recommenderl complies in all respects with the 

1 ertinent provisions-of Title I of the Act, incltFling, without limitation, subsection (a) of Section 7 and subsection (b) of Section 10 

thereof; and that 

(b) The applicant group imposes no inequitable re trictions on 

admi sion to membership therein and is truly representative of the 

Folding Paper Box Industry; and that 

(c) The Code, as recommended~ is not designed to prom.ote monopolies or to eliminate or oppress small enterprises and will not operate 

to eli ·criminate against them. and will tend to effectuate the policy 

of Title I of the National Iudustrial Recovery Act. 

It is recommended, therefore, that thi~ Code be approved. 

Respectfully submitted. 

HuGHS. JoHNSON, 

Acl1ninist1·ator. 
CODE OF FAIR COMPETITION 

FOR THE 

FOLDING PAPER BOX INDUSTRY 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following is hereby established as a Code of Fair 

Competition for the above named Industry and shall be binding on 

every member thereof : 

ARTICLE I-DEFINITIONS 

The following words are used in this Code with the meamngs 

herein set forth : 

"Industry."-The manufacture and sale of containers (other than 

fibre or corrugated shipping containers), which, or the integral parts 

of multi-piece units of which, are made from a single piece of one 

or more plies of box board and in the primary joints and/or closures 

of which the final outer surface of the blank is in direct contact 

with the final inner surface of the blank, when assembled. 

"Member."- A natural person; partnership, corporation, association, trust, trustee, trustee in bankruptcy, or receiver engaged in s·uch 

Industry. 

"Act."-Title I of theN ational Industrial Recovery Act. 

"Administrator."-The National Industrial Recovery Adminis- . trator. 

ARTICLE II-ORGANIZ.<\TION AND ADMINISTRATION 

1. Eight persons engaged in the Industry to be elected by the 

Board of Directors of the Folding Paper Box Association of 

America, together with such other person or persons as the Adminjstrator may designate are hereby constituted the Code Authority 

of the Industry. The members of the Code Authority designat€d by 

the Administrator shall act in an advisory capacity and shall have 

no vote. 

(a) At least one Industry member shall be a person who operates 

a paper-board mill; . 

(b) At least one Industry member shall be a person who does 

not own, operate, or have controlling affiliations with a paperboard 

mill; 

(c) At least one Industry member shall be a person who does not 

own, operate, or have controlling affiliation with a paperboard mill, 

and whose product is divided between folding paper poxes and other 

paperboard products. 

(594) 
595 

Indu try members of the Code Authority shall erve for one 

year or until their succe or are . elected. A majority of uch 

member shall be per ons who do not own or operate or have controlling affiliation with paperboard mill , and wheneYer pracii able uch majority shall be in the ratio of two to one. 

2. The sai l Association shall file with the Administrator certified copie of any amendments of it Bylaws relating to eligibility 

or ~Hlmis ion to membership in u h As ·ociation, or relating to the 

metl10 l of election of the member of such Board of Directors, 

"·hich such Association may hereafter adopt. 

3. The Admini trator may at any time pre cribe a different method 

for sele ting the Industry members of the Code Authority, and 

thereafter u h members shall be cho en in the manner o pre cribed. 

4. The Code Authority is charged generally with the duty of administering this Code under the sanction and with the approval of 

the Administrator. All acts of the Code Authority shall be subject 

to review by the Admini tr·ator and to u pension, modification, or 

cancellation by him in any case in which he shall determine that any 

such act violates the purpo ·es of the National Industrial Recovery Ac~ . 

5. The expen -es o£ administering this Code shall be borne pro 

rata, in accordance with a :formula to bv adopted by the Code Authority, by all members of such Industry who accept the benefit of 

the ervices of the Code A'Ithority or otherwise a sent to this Code. 

G. The Cole A uthority hall have power to investigate alleged 

violations of thi. Code an l acts or courses of conduct by any memb~r which are or appear to be contr ary to the policy of the Act 

or which tend or may tend to r ender ineffective this Code and to 

r eport the same with recommendations to the Administrator. 

7. The Code Authority may divide the country into geographical 

divisions for the purpose of administ ering this Code. Different 

divisions for different products of the Industry 1nay be so created. 

8. The Code Authority may appoint a Divisional Com.mittee for 

. each such geogr aphical division and may delegate to such Committees such of its powers and duties as it shall deem neces ary 

for the proper administration of this Code under the sanction and 

with the approval of the Code Authority. 

ARTICLE III-Ho Rs OF L ABOR 

1. Employees in the Industry shall not be r equired or permitted to 

work hours in excess of the limits prescribed in the following 

schedule : 

SCHEDULE OF WORKING HOURS 

(a) lV atchmen.-56 hours in any one week, but not more than 6 

days in any 7 -day period. 

(b) Chauff'eurs an.d truck?nen.-192 hours in any period of 4 consecuti\e weeks; provided, however, that time worked in excess of 9 

hours in any one day and 48 hours in any one week shall be paid for 

as not le s than time and one third. 

(c) Engineers, fi ren~en, and electricians.-168 hours in any period 

of 4 consecutive weeks; provided, however, that all time worked in 
596 

excess of 9 hours in any one day and 48 hours in any one week shall 

be paid for as time and one third. 

{d) All other laboTers, 1nechanical workers, or artisans e?nJJloyed 

in any plant, 1nill, or factory, o1· on work connected 'with the opm·ation of such plant, mill, o1· factory.-8 hours irr any one day and 40 

hours in any one week, with the following exceptions: 

First.-Additional time shall be allowed for machine cleaning and 

maintenance and r.outine plant cleaning work, wh,ich cannot be done 

while the machines are in operation; provided, that not more than 

10% of the total number of such employees may be so engaged; and 

provided, that all time in excess of 10 hours in any one day and 48 

hours in any one week shall be paid for as not less than time and 

one third. 

Second.-Aclditional time, to the extent of not more than 8 hours 

in any one week, shall he allowed for plant-operation work; provided, 

however, that all time in excess of 8 hours in any one day and 40 

hours in any one . week shall be paid for as not less than time and 

one third. 

(e) Executives ctnd thei'r personal secretaries and other employees 

engaged in a s-upervisory capacit,y receiving $35.00 or ?noTe pe1· ~oeek 

and outside salesn~en.-N o limitation. 

(f) All othe1· employees.-An average of 40 hours per week over 

any period of 13 consecutive weeks, but not more than 48 hours in 

any one week. 

2. No limitation contained in said Schedule shall apply to employe-es of any class when engaged in em.ergency repairs or emergency 

maintenance work occasioned by breakdowns or involving protection 

of life or property; provided, however, that all time worked under 

this section in excess of the limitations prescribed in said Schedule 

shall be paid for as not less than time and one third. 

3. No employee shall be permitted to work for two or more members of the industry an aggregate number of hours in excess of the 

number prescribed in said Schedule. 

ARTICLE IV-VVAGES 

1. The miH.imum rate of wage of any laborer, mechanical worker, 

or artisan em.ployed in any plant, mill, or factory or on work connected with the operation of any such plant, mill, or factory shall 

be as follows : 

(a) In the Northern zone, which shall consist of all of the territory of the United States except the states named in subdivision (b) 

hereof: 

Male labor, 40 cents per hour .. Female labor, 3:::> cents per hour. ' 

(b) In the Southern zone, which shall consist of the States of Virginia, Tennesse@, North Carolina, South Carolina, Georgia, Florida, 

Alabama, Mississippi, Louisiana, Arkansas, and Texas: 

~1a1e labor, 35 cents per hour. 

Femnle· la bor, 30 cent per hour. 

2. Pieceworkers shall be paid at rates which will yield a worker 

for an hour's work not less than the minimum rate above prescribed. 
597 

3. The minimum rate of wages :for all other employee shall be as 

follows: 

(a) In the Northern zone, a defined in Section 1 hereof, $16.00 

per week. 

(b) In the Southern zone as defined in said Section $14.00 per 

week. 

4. Female employee performing sub tan~ially the arne work as 

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

The Code Authority hall within 90 days after the effective late of 

this Code file with the Admini trator a description of all occupations 

in the Industry in which both men and women are employed. 

5. The wage rates of all employees receiYing more than the Ininimmn rates herein prescribed shall be reviewed and such adjustments, 

if any, made therein as are equitable in the light of all the circumstances, and within sixty ( 60) days after the effective date hereof, 

the Code Authority shall report to the Admini trator the action 

taken by all members of the Industry under this section. 

6. Office boys and girls under 18 years of age may be employed at 

a wage of not less than 80% of the minimum prescribed by Section 3 

hereof, provided that not more than 5%, but at least one, of the 

employees of such class may be paid as office boys and girls. 

7. A person whose earning capacity is limited because of age or 

physical or mental handicap may be employed on light work at a 

wage of not less than 80% of the minimum prescribed by this Code, 

provided the State Authority designated by the United States Departm_ent of Labor shall have i uecl a certificate authorizing his employment on such basis. Each member shall file with the Code Authority a list of all such persons employed by him. The provision 

of this Section requiring a certificate of authority shall not become 

effective until sixty days after the effective date of this Code. 

ARTICLE V-GENERAL L ABOR PROYISION 

1. No person under sixteen ( 16) years of age hall be employed in 

the Industry. No person under eighteen (18) years of age shall be 

employed at operations or occupations which are hazardou in nature or dangerous to health. The Code Authority shall ub1nit to 

the Administrator within sixty ( 60) days after the effective date of 

thi Code a list of such operations or occupations. In any State an 

employer shall be deemed to have complied with thi pronsion as to 

age if he shall have on file a certificate or permit duly signed by the 

authority in such State empowered to issue employment or age certificates or permits showing that the employee is of the required age. 

2. Employee · shall have the right to organize and bargain collectively through representatives of their own choosing, and hall be 

free from the interference re traint, or coercion of employers of 

labor or their agents in the de ignation of such representatives or 

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

of collective bargaining or other mutual aid r protection. No employee and no one seeking employn1ent shall bo required as a condition of employment to join any company union or to refrain from 

joining organizing, or assi ting a labor organization of his own 

choosing. Employers shall comply with the maximum hours of la-
598 

bor, muumum rates of pay, and other conditions of employment, 

approved or prescribed by the President. 

3. No provision in this Code shall supersede any State or F ederal 

law which imposes on employers more stringent requirements as to 

age of employees, wages, hours of work, or as to safety, health, sanitary, or general working conditions or insurance or fire protection, 

than are imposed by this Code. 

4. No employer shall reclassify employees or duties of occupation 

performed or engao·e in any other subterfuge for the purpose of 

defeating the purposes or provisions of the Act or of this Code. 

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

this Code in conspicuous places accessible to employees. 

6. Every employer shall make reasonable provisions for the safety 

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

their employment. Standards for safety and health shall be submitted by the Code Authority to the Administrator within six (6) 

months after the effective date of this Code. 

7. No provision in this Code shall supersede provisions as to 

hours, wages, and conditions of employment which are established 

for specific projects by c::nnpetent governmental authority acting in 

accordance with law, or to terms of employment which are established by labor agreements now in force, where either the wages are 

higher or the hour of labor are shorter, or both, than are those set 

forth in this Code. 

8. The Code Authority shall make rr study of conditions in the 

industry to determine the feasibility of the adoption of a shorter 

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

date of this Code, make a report of its findings to the Administrator. 

The Code Authority shall also submit to the Administrator 

within six ( 6) months after the effective date of this Code, a plan 

for the stabilization and regularization of employment. 

9. The manufacture or partial manufacture of any product of 

the Inc:ustry in the home of a worker shall be prohibited. 

ARTICLE VI- Acco NTING- SELLING 

1. The Code Authority shall, as soon as practicable, formulate 

a standard method of accounting and costing for the industry and 

submit the same to the Administrator. When it shall have been 

approved by the Administrator, every membor shall use an accounting and costing system which conforms to the principles of, and is 

at least as detailed and complete as, such standard method. 

2. The Code Authority may from time to time determine that an 

open price plan of selling such product or products of the Industry 

as it shall specify shall be put ·i~to effect on such date as it shall 

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

members of the Industry \Yho manufacture such products not less 

than 30 days prior to the date so fixe l. 

3. At least 10 days prior to such date, every such member shall file 

with the Code Authority a schedule of prices and terms of sale for 

all such protl.ucts or, in the alternative, shall be deem-ed to have filed 

a schedule conforming in re pect to price and terms of sale with the 
599 

schedule at any time on file which states the lowest pnce and the 

most favorable terms. 

4. All such schedules shall be in such form as the Code Authority 

shall prescribe and shall contain all information necessary to permit 

any interested person to determine the exact net price per unit after 

all discounts or other deductions have been made, whether pertaining 

to a single order, a commitment for future delivery, or a contract. All such original schedules shall become effective on the date fixed 

by the Code Authority as provided in Section 2 hereof. Any such 

schedule, or any price therein, may apply nationally or may be limited to one or more geographical divisions created as provided in 

Section 7 of Article II hereof. 

5. A revised schedule or schedules, or a new schedule or schedules, 

or a notice of withdrawal of a schedule previously filed may be filed 

by a member with the Code Authority at any time, provided, however, 

that any member who withdraws a schedule without substituting a 

new schedule therefor shall be deemed to have filed a schedule conforming in respect to price and terms of sale with the schedule at 

any time thereafter on file which states the lowe t price and the 

most favorable terms. Any schedule or notice filed hereunder shall 

become effective five days after the date of filing, provided, however, 

that an increased price may become effective at such earlier elate as 

the member filing the same shall fix. 

6. The Code Authority shall promptly supply all member of the 

industry, who manufacture any particular product, with copies of all 

schedules, revised schedules, and notices of withdrawal, which pertain to such product. Immediately upon receipt of information relative to the withdrawal of a price for any product, any member may 

file notice of withdrawal of his own price for the same product effective as of the same date as the notice of withdrawal of such other 

member. Immediately on receipt of information that a schedule 

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

any member may file a revised schedule conforming as to price and 

terms to the schedule of such other member, and effective on the 

same date, or may notify the Code Authority that he adopts as his 

own the schedule of such other member. In the latter event, he shall 

be deemed to have filed a revised schedule conforming to the revised 

schedule of such other member. 

7. N~ such schedule ~f prices and terms of sale filed by any member, or 1n effect at any time, shall be such as to permit the sale of any 

product at less than the cost thereof to such member determinacl in 

the manner provided in Section 11 hereof, provided, however, that 

any member may by notice to the Code Authority, adopt as his own 

a lower price filed by another designated member. Such adoption 

shall become automatically void upon the withdrawal or revision 

upward of the price adopted. 

8. No member who shall have filed a price, or adopted as his own, 

a price filed by another member for any product of the Industry, 

shall sell such product for less than such price or upon terms or conditions more favorable than stated in ·uch price ~chedule. No member, who shall have failed to file a price for any product for which 

the open price plan is in effect, shall sell such· product at a lower 
600 

price or on terms more favorable than the lowest price and most 

favorable terms stated in any price schedule for snch product then 

on file. 

9. The Code Authority hall furnish at cost to any nonmember 

requesting them copies of any price schedules which have been filed 

with it. Such price schedules shall be made available to nonmembers 

at the same time that they are sent to members. 

10. No member hall sell any product of the Industry for which 

no open-price plan is in effect at less than the cost thereof to such 

member, determined as provided in Section 11 hereof, except to 

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

Section. 

11. Cost, for the purposes of thi.s Article, shall be determined pursuant to the method of accounting and costing prescribed as provided in Section 1 hereof as soon as such method is adopted and 

approved, and theretofore pursuant to the method employed by such 

member subject to such preliminary rules as the Code Authority 

~hall, .from time to time, prescribe with the approval of the Administrator. 

12. For the purpose of determining whether Sections 7 and 10 

hereof have been complied with, every member shall upon the request of the Code Authority furnish a designated agency of the 

Code Authority, in respect to closed transactions only, with complete 

information in regard to any quotation, order, contract, or sale of 

any product of the industry, including information as to specifications, quantities, price, conditions o.f ,storage, transportation or delivery, terms of billing, cash, or trade discounts allowed, and other 

pertinent facts relating to such quotation, contract, or sale. 

13. Nothing herein contained shall be construed to prevent the 

disposition of distress merchandise required to be ,sold to liquidate 

a defunct or insolvent business in such manner at such price and 

such terms and conditions as the Code Authority may approve. 

14. Nothing herein contained shall be construed to prevent the fulfillment of a bona fide contract existing on the effective date of this 

Code. 

ARTICLE VII-REPORTS AND STATISTICS 

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

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

as it may prescribe, such statistics, data, and information relating to 

plant capacity, volume of production, volume of sales in units and 

dollars, orders received, unfilled orders, stocks on hand, inventory, 

both raw and fini heel, number o.f employees, wn,ge rates, employee 

earnings, hours of work, and other matters, as the Code Authority 

or the Administrator 1nay from time to time require. Any or all 

information so furnished by any member shall be subject to checlcing 

for the purpose of verification by an examination of the books and 

accounts and records of such member by any disinterested accountant or accountants or other qualified person or persons designated by 

the Code Authority. 

2. Except as otherwise provided in the Act, or in this Code, all 

statistics, data, and information filed or required in accordance with 

the provisions o.f this Code shall be confidential and the statistics, 
.~0"1 0 .;_ 

data, and information of one member shall not be revealed to another member. No such data or information shall be published except in combination with other similar data and in such n, manner 

as to a void the disclosure of confidential information. The Code 

Authority shall arrange in such manner as it may determine for the 

current publication of industry statistics to members. 

3. The Code Authority shall make such report.s to the Administrator as he may from time to time require. 

4. In addition to information required to be submitted to the 

Code Authority there shall be furnished to Government Agen~ies 

such statistical information as the Administrator may deem necessn.ry for the purposes recited in Section 3 (a) of the Act. 

ARTICLE VIII-RECOMMENDATIONS 

1. The Code Authority may, from time to time, present to the 

Administrator recommendations based on conditions in the Indnstry 

which will tend to effectuate the operation of this Code and the 

policy of the Act, and in particular along the following lines : 

(a) For the establishment of additional rules of fair trade practice for the Industry and for the codification of its trade cu toms 

and the enforcement thereof. 

(b) For the establishment of a standard method for determining 

the current cost of any product of the Industry, and for a requirement that no Member shall sell any such product below such cost. 

(c) For the establishment of terms and conditions regarding sales 

to dealers and distributors by Members of the Industry. 

(d) For the establishment of plans to equalize production with 

demand, so that the interests of the Industry and the public may 

be properly served. 

(e) For dealing with any other inequality that may arise to er.-

danger the stability of the Industry and of production and 

employment. 

(f) For an increase or decrease in the number of Industry members of the Code Authority and/ or for a change in the method of 

choosing such members. 

2. The Code Authority shall as soon as practicable formlllate a 

plan both for determining fairly and equitably the price at which 

paperboard produced by a member shall be included as a factor in 

estimating the cost of folding boxes for the purpose of offering the 

same for sale, and for cooperative action by the Code Authorities 

of this Industry and of the Paperboard Industry relative to the 

purchase and sale of paperboard. 

3. Recommendations made pursuant to Sections 1 and 2 hereof 

when approved by the Administrator shall have the same force and 

effect as other provisions of this Code. 

ARTICLE IX-TRADE PRACTICES 

1. The following are hereby constituted The Trade Practices for 

the Industry and failure to comply with the provisions thereof shall 

be a violation of this Code. 
602 

(a) ~1ern bers of the Industry shall not practice deception in 

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

description, statement, record, or undisclosed consideration. (b) Members shall refrain from dumping, deferred delivery, extension of stated credit, and secret rebates. 

(c) Members shall not wilfully injure, by falsely defaming a 

competitor's goods, credit, or ability to perform his contracts. 

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

breach of a competitor's contract. ' 

(e) Members shall not entice away any employee of a competitor ; 

provided, however, that nothing herein contained shall prevent an 

<'mployee of one member from offering hi· services to a competitor, 

nor prevent any member from employing the employee of another 

member. 

(f) Member· of the Industry shall not accept contracts which do 

not pecify the date of final deli' ery and in the event that final 

delivery is not accepted on or before said date, shall thereafter charge 

storage on such undelivered goods at the rate of 1% per month on 

the sales price thereof. 

(g) No Member shall accept an order at a firm price for shipment 

later than six months after date of acceptance, except in particular 

circumstances upon application to and approval by the Code 

Authority. 

(h) Uniform term· of sale shall be maintained by all ~1embers in 

the Industry, which shall be thirty (30) days net or 1% discount for 

cash ten (10) days, except in particular circ.nmstances upon application to and approval by the Code Authority. 

(i) No :Member shall give, permit to be given, or directly offer 

to give anything of value for the purpose of influencing or rewarding 

the action of any e.mployee, agent, or representative of another in 

relation to the business of the employer of such employee, the 

principal of such agent, or the represented party, without the knowledge of such employer, principal, or party. The foregoing provisions shall not be construed to prohibit free and general distribution of articles commonly used for advertising except so far as such 

articles are actually used for commercial bribery as herein defined. 

ARTICLE X - GENERAL PROVI IONS 

1. If any member is also a member of another industry, the provisions of this Code shall apply to and affect only that part of his 

business which is included in this industry. 

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

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

industry hall be regarded as a part of this industry. 

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

included therein by the Act may, with the approval of the President 

of the United States, be modified and eliminated as changes in circumstances or experience may indicate. 

4. This Qode and all the provisions thereof are expressly made 

subject to the right of the President, in accordanc·e with the provisions of Section 10 (b) of the Act, from time to time to cancel or 
603 

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

Title I of said Act; and specifically, but without li·mitation, to the 

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

or any conditions imposed by him upon his approval thereof. 

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

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

United States. 

Ar)pro\ed Code No. 193. 

Registry No. 406-1-09. 

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