Approved Code No. 455 Registry No. 1620-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

METAL ETCHING INDUSTRY 

.. _ ... -- o-:: 

• ----

AS APPROVED ON JUNE 4, 1934 

'WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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Approved Code No. 455 

CODE OF FAIR COMPETITION 

FOR THE 

lViETAL ETCHING INDUSTRY 

As Approved on June 4, 1934 

ORDER 

APPROVING CODE OF FAIR COMPETITION FOR THE METAL ETCHING 

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 

o:f Fair Competition for the Metal Etching 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: 

NO"\V THEREFORE, on behal:f o:f the President of the United 

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

pursuant to authority vested in me by Executive Orders o:f the President, including Executive Order No. 6543-A, dated December 30, 

1933, and otherwise; do hereby incorporate by reference said annexed report and do find that said Code complies in all respects 

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

o:f Fair Competition be and it is hereby approved; provided, however, that the provisions of Article VII, Section 2, in so far as they 

prescribe a waiting period between the filing with the Code Authority ( or such agency as may be designated in the Code) and the 

effective date of price lists, as originally filed and/ or revised price 

list or revi ed terms and conditions of sale, be and they hereby are 

sta} ed pending my further Order. 

HUGH 8. JOHNSON, 

Adniinistrator for· Industrial Recovery. 

Approval recommended: 

BARTON vv. J\,IURRAY. 

A cting Division' Administrator. 

"ASHINGTON, D.C., 

June 4, 1934. 

65339°-657-~6-34 (163) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White Howse. 

Sm: This is a report on the Code of Fair Competition for the 

Metal Etching Industry as revised after the Public Hearing conducted thereon in Wash1ngtonhD.C., on January 25, 1934, in accordance with the provisions of t e National Industrial Recovery A.ct. 

RESUME OF THE CODE 

Article I states the purpose of the Code. 

Article II defines specific terms used in the Code. 

Article III provides for hours of labor and rates of pay. This 

Article provides for normal working day which shall not exceed 

eight (8) hours and a normal working week which shall not exceed 

forty ( 40) hours, nor shall any employee work more than six ( 6) 

days in any one (1) week, except as provided in the following 

exemptions : 

Those engaged in eKecutive, supervisory, or professional capa,cities, 

provided all receive not less than thirty-five ($35.00) dollars per 

week; outside salesmen, and watchmen, provided the last group shall 

not be permitted to work more than fifty-six (56) hours in any 

one (1) week, and not more than six (6) days in any one (1) week. 

Exemptions are made which allow for conditions of unusual or 

peak demand, provided that no employee may work more than fortyeight (48) hours per week for twelve (12) weeks in any one (1) year. 

Exemptions are also made for employees engaged in emergency 

maintenance or emergency repair work involving breakdowns or 

protection of life. 

A.t least one and one-third (11⁄2) times the normal rate shall be 

paid for hours work~d in excess of eight (8) per day, or forty (40) 

per week. 

The total time that an employee may be engaged by more than one 

employer must not exceed the maximum number of hours permitted 

by the Code. 

The minimum wage for employees shall be fort;r ( 40¢) cents per 

hour unless the rate per hour of the same class of labor on July 15, 

1929 was less than forty ( 40¢) cents per hour, but in any case the 

rate per hour shall not be less than thirty-four (34¢) cents per hour. 

Female employees performing substantially the same work as male 

employees shall receive the same rate of pay as male employees. Accounting, clerical, office or sales employees shall be paid n_o less than 

fifteen ($15.00) dollars per week. 

The Code establishes a guaranteed minimum hourly wage for 

labor regardless of whether the employee is compensated on a time 

rate, piece work, or other basis. 

(164) 
165 

It is stipulated that the wage rates in effect on June 16, 1933, 

which wer in excess of the minimum provided in the Code, shall not 

be redu el and that th re shall be an up ard adju tment of such 

wao· if u h adjustment has n t already b~e~ made. . . Article IV sets out the general labor provisions. It is provided 

that no per on under sixteen ( 16) y ars of age shall be employed, 

and no per on under eio·ht en (18) years_ of age at_ a haz~rdou~ occupation. The procedure to be followed 1n complying with tlus provi ion in reo·ard to minors is stated. The mandatory provisions from Section 7 (a) of the Act are 

inclu led. 

It is stated that no member of the Industry shall reclassify employees with the purpose of defeating the purposes of the Act. 

It is stated that where more stringent provisions in state laws regarding labor are enforced, they shall be complied with. The mann r in which wages are to be paid is set forth. 

Regulations concerning standards for safety and health and the 

po ting of the labor provisions of the Code are included. 

It is also provided that no employee shall be dismissed for giving 

evidence concerning an alleged violation of this Code. 

Article V deals with administration. This specifies how the Code 

Authority shall be established and how the Code shall be administered. 

Article VI provides for a uniform system of cost accounting, and 

an emergency clause concerning lowest reasonable cost. 

Article VII describes the selling schedules. 

Article VIII contains the unfair trade practices. 

Article IX states that no employer shall use any subterfuge 

to frustrate the spirit and intent of this Code. 

Article X provides against monopolies or monopolistic practices. 

Article XI contains the mandatory provisions of Subsection B of 

Section 10 of the Act, relating to modifications. 

Article XII states the effective date. 

GENERAL STATEMENT 

-

The principal products of this industry are etched metal nameplates, uch as are commonly used on refrigerators, desks and other 

articles of furniture, and also the nameplates and escutcheons that 

are placed on the radiators of automobiles. Other products include 

the dial u ed in the in -trument panels on automobiles, and m.any 

of the articles undergo other operations such as enameling and painting in addition to the etching process. :Many of the articles manufactured by the indu try are purely decorative and could be cla ;:ied 

as luxuries. For this reason, the industry has suffered severely from 

the effects of the depres ion, as shown by the fact that the value of 

their ales declined eighty (80% ) per cent in the period from 1929 

to 1933. 

Ina much as the average hours worked per employee in 1933 were 

thirty eight (38) per we k, it is not anticipated that the Code's provi i ns for labor will increase employment at the production level 

of the indu try for 1933; however, with the prospects of increased 

production in the automobile industry, one of the principal markets, 

it eems probable that substantial gains in employment will be made. 
166 

Relatively, employment has been well sustained in this industry as 

the numbeT of workers in December, 1933, was about twenty-one 

(21 % ) per cent less than in 1929. The number of workers employed 

in the last six ( 6) months of 1933 was one thou and seven hundred 

(1,700). 

FINDINGS 

The A sistant 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 tbat: 

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

removal of obstructions to the free flow of inter-state 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 purpo e of cooperative action among the trade groups, 

by inducing and maintaining united action of labor and management under adequate governmental sanction and supervision, by 

eliminating unfair competitive practices, b3r promoting the fullest 

possible utilization of the present productive capacity of industry, 

by avoiding undue restrictions of production ( except as 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. 

(h) Said Industry normally employs not more than fifty thousand (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, th 0 reof; and that the applicant 

group is an industrial association truly repres-entati-ve o:f the aforesaid Indu try; and that said as ociation imposes no inequitable 

restrictions on admission to membership therein. 

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

or monopolistic :.(>ractices. 

( e) The Code lS not designed to and will not eliminate or oppress 

small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 

not been deprived of the right to be heard prior to approval of 

said Code. 

For these reasons, therefore, I have approved this Code. 

Respectfully, 

JUNE 4, 1934. 

HUGH s. JOHNSON, 

Administrator. 
CODE OF FAIR COMPETITIO FOR TlIE :METAL 

ETC:HING INDUSTRY 

ARTICLE I-PURPOSE 

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 

upon every member thereof. 

ARTICLE II-DEFINITIONS 

The following terms and words are u ed in this Code to mean 

and include: 

1. lndwstry.-1\i.Ieans and includes the business of manufacture and 

sale by the manufacturer of completely fabricated metal products 

when etched, embossed, printed, lithographed, enameled (air dried, 

baked or fired) by processing necessary to the completion of the 

products of this Industry, such as name plates, dials, escutcheons, 

automobile plates -excluding embossed metal vehicle tax and automobile licen e plates. 

2. E1nployee.-Any person engaged in any phase of the Industry 

in any capacity, receiving compensation for his services, irrespective 

of the method of payment of his compensation. 

3. Employer.-Anyone by whom any such employee is compensated, or employed. 

4. iJf e1nbe1° of the lnwusfry.-Any natural person, partnership, 

corporation, trust, association, trustee, trustee in bankruptcy, 

receiver or other form o.f enterprise engaged in said Industry, either 

as an employer or on his or its own account. 

5. Association.-The Metal Etchers Association, a voluntary, 

unincorporated association. 

6. President, A ct, and Administrator.-Mean respectively the 

Pre ident of the United States, Title I of the National Industrial 

Recovery Act, and the Administrator for Industrial Re"overy. 

ARTICLE III-Houns OF LABOR AND RATES OF PAY 

SECTION 1. H 011rrs of Labor.-

( a) Ko employee iShall be permitted to work more than .forty 

( 40) hours in any one week; Provided that, when neces ary 

to meet unu ual or peak demand, any employee may be permitted 

to work not in exce s of forty-eight (48) hours in any_ one week for 

twelve (12) weeks in any one (1) year. The provisions of this 

section hall not apply to the following employees: 

(1) Executives, professional employees or superviso.rs who receive 

not 1 ss than thirty-five dollars ($35.00) per week; and outside 

alesmen; 

(2) \Vatchmen, who may be permitted to work fifty-six (56) 

hours in any one (1) week, but not more than six (6) days in any 

one (1) week; 

(167) 
168 

(b) Provided that, any employee other than those specified in 

paragTaphs (1) and (2) above working beyond eight ( ) hours in 

any one (1) day or forty (40) hours in any one (1) week shall be 

paid not less than at the rate of one and one-third (11/3 ) times the 

normal rate. A normal day shall not be in excess of eight (8) hours. 

(c) The maximum hours fixed in the foregoing sub-paragraphs 

of this Section 1 shall not apply to any employee on emergency maint enance or emergency repair work involving breakdowns or protection of life and property, but in any such special case, at least one 

and one-third (11/3 ) the normal rate shall be paid for all hours 

worked in excess of eight (8) hours in any one (1) day or forty (40) 

hours in any one ( 1) week. 

(d) No employer shall knowingly permit any employee to work 

for any time, which, when totaled with that already performed f or 

another employer, or employers, in this Indu try exceeds the maximum number of working h ours permitted in this Code. 

(e) o employee shall be permitted to work more than ix (6) 

days in any seven (7) day period; provided that thi provision 

shall not apply to those employees specified in paragraph (1) of 

sub-section (a) of this Section 1, and tho e employees engaged in 

emergency repair or maintenance work as referred to in sub-section 

( c) o:f this Section 1. 

SECTION 2. Minimwm Wages.-

(a) The minin1um rate which shall be paid by employers in the 

Industry to any of the employees shall be at the rate of forty ( 40) 

cents per hour, unless the rate per hour of the same class of labor on 

July 15, 1929, was less than forty ( 40) cents per hour, in which case 

the rate per hour shall not be less than thirty-four (34) cents per 

hour. 

(b) Provided, no accounting clerical, office or sales employees shall 

be paid less than at the rate of fifteen dollars ($15.00) per week. 

( c) This· Article establishes a guaranteed minimum hourly rate 

of pay, which shall apply, irrespective of whether an employee is 

actually compensated on a time rate, piece-work or other basis. 

( d) Members of this Industry shall not reduce hourly or weekly 

rates of compensation for employment, according to the basis of 

compensation, which compensation was, prior to June 16, 1933, in 

excess of the minimum wage herein set forth, notwithstanding that 

the hours of work in such employment may be reduced; and all 

members of this Industry shall increase the pay of all employees in 

excess of the minimum wage, by an equitable adjustment of all pay 

schedules, if such adjustments have not been made prior to the 

effective date of this Code. All such adjustments made after June 

16, 1933 shall be reported to the Code Authority and to the 

Administrator. 

( e) Female employees performing substantially the same work as 

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

ARTICLE IV-GENERAL LABOR PROVISIONS 

SECTION 1. Minors.-

No person under sixteen ( 16) years of age shall be employed in 

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

employed at operations or occupations which are hazardous in nature 
169 

or dangerous to health. In any State, an employer shall be deemed 

to have complied with this provision as to age if he shall have on 

file a valid certificate, or permit, duly i sued by the Authority in 

such State empowered to issue employment or age certificates, or 

permits, showing that the employee is of the required age. 

ECTION 2. Statutory Pro~ions .. - In compliance with Section 7 (a) of the Act, it is provided: 

( a) That employees hall 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 mutua] aid or protection; 

(b) That 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, and 

( c) That employers shall comply with the maximum hours of 

labor, minimllln rates of pay, and other conditions of employment, 

approved or prescribed oy the President. 

SECTION 3. Reclassification of Employees.-

No employer shall reclassify employees or duties of occupations 

performed, or engage in any subterfuge, for the purpose of defeating the purposes of the Act or the provisions of this Code. 

SECTION 4. Application of State Laws.-

No provision in this Code shall supersede any State or Federal 

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. 

SECTION 5. No employee shall be dismissed by reason of making 

a complaint or giving evidence with respect to an alleged violation 

of this Code. 

SECTION 6. Method of lVage Payment.-

(a) Each employer shall make payment of all wages due in lawful currency or by negotiable check therefor, payable on demand. 

These wages shall be exempt from any payments for pensions, insurance, or sick benefits other than those Yoluntarily paid by the wage 

earners or required by State laws. Wages shall be paid by employers to employees at the end of every two (2) weeks' period, or 

oftener if required by State or Federal law, and salaries shall be 

paid by employers to those so compensated at the end of every month, 

or oftener if required by State or Federal law. No employer shall 

withhold payment of wages or salaries lawfully due to employees 

unless the payment of such wages or salaries be subject to any restriction imposed by State or Federal laws. 

(b) The employer or his agents shall accept no rebates, directly 

or indirectly, on such wages, nor give anything of value, or extend 

favors to any person for the purpose of influencing rates of wages 

or the working conditions of his employees. 

SECTION 7. Stmndards for Safety and H eal,th~-

( a) Every employer shall make reasonable provision for the 

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

of their employment. 
170 

(b) Standards for safety and health shall be submitted by the 

Code Authority to the Administrator £or appro, al within ix (6) 

months after the effective date of this Code. 

SE TI N 8. Posting.-Each employer hall po t, and maintain, in 

con picuous places accessibl0 to all employees, the provisions of the 

Code relating to hours, wage , and con litions of employment, and 

.... uch other notices and bulletins a the dmini trator may from time 

to ti1ne require. 

ARTICLE V-ADl\IINISTRATION 

SECTION 1. A Code Authority is hereby establi hed to administer 

this Code, and shall consist of not less than five (5) members elected 

by the members of the Industry. The Administrator, in his discretion, may appoint not more than three ( 3) additional members 

thereof to serYe without vote and without compensation from the 

Industry. 1'fembers of the Code Authority elected by the members 

of the Indu try shall be elected to serve for one (1) ye.ar and until 

their successors shall have been elected and qualified. No two members of the Code Authority shall be affiliated with any single member 

of the Industry. Vacancies occurring in the Code Authority shall be 

filled in the same manner a.s that provided for their election. Each 

elected member of the Code Authority shall be entitled to one vote. 

SECTION 2. 

(a) A meeting of the members of the Industry shall be called as 

soon as possible after the effective date of this Code by the Executive 

Manager of the Association, who shall give rea onable notice thereof 

by registered mail, but not less than ten (10) days in advance, to all 

ascertainable members of the Industry, stating therein the time, 

place, and purpose of the meeting. Such meeting shall be for the 

purpose of electing members of the Code Authority who shall represent the Industry, and for the transaction of such other business 

pertaining to the provisions of th.is Code as may be specifically 

referred to in such notice. (b) Immediately after said meeting, the elected member,s of the 

Code Authority shall hold a meeting and elect a Chairman thereof. 

(c) The Chairman of the Code Authority, upon his own initiative, may call meetings of the Code Authority, and shall be r equired 

to do so upon the request of two (2) members of the Code Authority. 

The Code Authority, upon its own initiative, may call a meeting 

of all of the members of the Industry, and the Chairman of the 

Code Authority upon the reque t of five ( 5) members of the Indu try, shall call a meeting of all of the members o.f the Industry. 

( d) Each m mber of the Industry shall be entitled to one (1) 

vote at any indu,stry meeting, at which the member may be representc l in person or by proxy, except that at elections any member 

of the Industry not present in person or by prozy may cast his 

voto by letter ballot and shall be deemed to be re1 resented thereby ; 

and a majority vote in numbers of members and also in dollar 

value of sales of the product of the Indu try for the la t preceding 

calendar year of tho e member,s who are so repre ented at any 

such meeting shall be necessary for the determination of any 

question. 
171 

( e) 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 constitution, 

by-laws, regulations, an l 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 0£ the Act. 

SECTION 3. The Code Authority may adopt its own rules of procedure and may appoint such agents or agencies as it may deem 

necessary properly to supervise and administer the provisions o:f 

this Code. Provided, that nothing herein shall relieve the Code 

Authority of its re,sponsibilities under this Code and that such 

agents or agencies shall at all times be ~ubject to, and comply with, 

the provisions hereof. 

SECTION 4. 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 n1ay prescribe 

such hearings as he may deem proper, and thereafter if he shall find 

the Code Authority is not truly representative of the Industry, or 

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

he may require an appropriate modification of the method of selection of the Code Authority. 

SECTION 5. The Code Authority may make recommendations to 

the Administrator :for the co-ordination of the administration of 

this Code with such other Codes, if any, as may be related to this 

Industry. 

SECTION 6. The Code Authority may make recommendations to the 

Administrator pertaining to the provisions of this Code and additional fair trade practice provisions to govern members of the Industry in their relations with each other, and, also, measures for 

industrial planning, including stabilization of employment. 

SECTION 7. The Code Authority shall require each member of the 

Industry to furnish to such impartial agency as the Code Authority 

may designate, reports, statistical data and information relating to 

wages, hours of labor, conditions of employment, volume of production, volume of sales, in units and/ or dollars, and other matters, 

useful to the members of the Industry and pertinent to the supervision and administratjon of this Code. Such reports, data and 

information shall be compiled and made available to the members 

of the Industry and the Administrator :for such periods, in such 

form, and at such time, or times, as determined by the Code Authority 

or as the Administrator may require. In addition thereto, members 

of the Industry shall furnish to such Federal and State agencies as 

the Administrator may designate, such information as the Adminjstrator may deem necessary for the purposes recited in Section 

3 (a) of the Act, and nothing contained in this Code shall relieve 

any member of the Industry from any existing obligations to furnish 

reports to any Government agency. 

SooTION 8. All reports, data and information required by this 

Code to be furnished by the members of the Industry to the Code 

Authority shall be sworn to by the members, if requested by the Code 

Authority, and each member's report shall be confidential and not 
172 

disclosed to any other member of the Industry except in summary; 

Provided, that where sumn1ary information in effect designates 

the identity of any member's report , it shall not be revealed to any 

member of the Industry, but shall be made available to the Administrator upon his request, and may be used to facilitate the administration of this Code. 

SECTION 9. Upon complaint that a member of the Industry has 

violated a provision of this Code, the Code Authority may require, 

and such member shall furnish forthwith, a complete and accurate 

report of the facts and figures concerning such alleged violation. If 

the Code Authority shall determine that substantial doubt exists as 

to the accuracy of such report, or of any other report filed pursuant 

to the provisions of this Code, so much of the pertinent books, records and papers of such member as may be required for the determination of the accuracy of such report may be examined by an impar-

. tial agency, agreed upon between the Code Authority and such 

member, or failing agreement, appointed by the Administrator. 

Such examination shall be made pursuant to rules and regulations 

pertaining thereto which shall be adopted by the Code Authority and 

which shall be subject to the disapproval of the Administrator. Such 

impartial agency shall report the result of all such examinations 

forthwith upon the completion thereof to the Administrator or to 

such agency as he may designate. The provisions of this section 

are required for the proper and efficient administration of this Code 

and the effectuation of the purposes of the Act. 

SECTION 10. 

(A) It being found necessary, in order to support the administration of this Code and to maintain the standards of fair competition established by this Code and to effectuate the policy of the Act, 

the Code Authority is authorized, subject to the approval of the 

Administrator: 

( 1) To incur such reasonable obligations as are necessary and 

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

funds which may be raised as hereinafter provided and which shall 

be held in trust for the purposes 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, 

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

purposes, and (b) an equitable basis upon which the funds necessary to support such budget shall be contributed by members of the 

industry; 

( 3) After such budget and basis of contribution have been a pp roved 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 necessary, to institute legal proceedings therefor in its 

own name. 

(B) Only members of the industry complying with the Code and 

contributing to the expenses of its administration as provided in 

Section (A) hereof shall be entitled to participate in the selection of 

the memb rs of the Code Authority or to receive the benefit of its 

voluntary activitie or to make u. e of any emblem or insignia of the 

National Recovery Administration. 
173 

SECTION 11. Nothing contained in this Code shall constitute the 

members of the Code .Authority partners for any purpose. Nor shall 

any member of the Code .Authority be liable in any manner to anyone 

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

Code Authority. 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 malfeasance or non-feasance. 

SECTION 12. If the Administrator shall determine that any action 

of the Code .Authority, or any agency thereof, may be unfair, unjust 

or contrary to the public interest, the Administrator may require that 

such action b~ suspended to afford an opportunity for investigation of 

the merits of such action and further consideration by such Code 

Authority, or agency thereof, pending final action, which shall not 

be effective unless the Administrator approves, or unless he shall 

fail to disap_prove after thirty (30) days' notice to him of intention 

to proceed with such action in its original or modified form. 

ARTICLE VI-AccoUNTING AND CosTING 

SECTION 1. The Code Authority shall cause to be formulated 

methods of accounting and cost finding and/or estimating capable 

of use by all members of the Industry and shall submit such methods 

to the Administrator for review and possible disapproval. Full 

details and instructions concerning such methods shall be made 

available to all members of the Industry and to the Administrator 

and thereafter all members shall utilize the principles of such 

methods. 

SECTION 2. When the Code .Authority determines that an emergency exists in this Industry and that the cause thereof is destructive price-cutting such as to render ineffective or seriously endanger the maintenance of the provisions of this Code, the Code 

.Authority may cause to be determined the lowest reasonable cost 

of the products of this Industry, such detennination to be subj ect 

to such notice and hearing as the Administrator may require. The 

Administrator may approve, disapprove, or modify the determination. Thereafter, during the period of the emergency, it shall be 

an unfair trade practice for any member of the Industry to sell, 

or off er to sell, any products of the Industry for which the lowest 

reasonable cost has been determined at such prices or upon such 

terms or conditions of sale that the buyer will pay less therefor 

than the lowest reasonable cost. 

vVhen it appears that conditions have changed, th~ Oode Authority, upon its own initiative, or upon the request 0£ any interested pa.rty, shall ca.use the determination to be reviewed. 

ARTICLE VII-SELLING ScHEDUI.Es 

SECTION 1. .As soon as possible after the effective date of this 

Code, the Code Authority shall determine a date on or before which 

each member of the Industry shall file with such agent or agency, 

not affiliated with any member of the Industry, as designated by 

the Code Authority, and in accordance therewith all members shall 
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file with such agency, price schedules, price lists, and/or discount 

sheets coverino- all products of the Industry manufactured and sold 

by them respectively, in,..luding therein prices, terms, discounts, and 

all conditions relating to, or in anywise affecting, any sale of the 

...,ame. 

SECTION 2. Each member of the Industry shall file revised schedul s, lists, and/ or discount sheets, or changes therein, when and 

jf made, with the same agency mentioned in the next preceding 

Section 1, three (3) business days, exclu ive of the date of the receipt of the ame by said agency, in advance of the effective date 

of such revisions or changesi except that when filed to meet a competitor's previously filed revisions or chang , the same may become 

effective concurrently with the effective date of such competitors 

filed revi ions thereof or changes therein. 1 

SECTION 3. The agent, or agency, de ignated by the Code Authority to rec ive such price schedule , I rice lists and/ or discount sheets, 

and revi ions thereof, shall promptly publi h and distribute copies 

of the same to all members of the Industry making similar products 

and make such lists available to all other interested parties. 

SECTION 4. No member of the Industry shall sell any of the products of the Industry at a price, or price., or upon terms and/ or other 

conditions of sale at variance from those stated in his price schedules, 

price lists, and/ or discount sheets, or revisions thereof, as published 

and filed as hereinabove provided. 

ARTICLE VIII-UNFAIR TRADE PRACTICES 

The following acts shall constitute Unfair Trade Practices and 

none shall be used by any member of the Industry. 

l. Interference with Ewisting Oontracts.-Knowingly to inter:fere 

with an existing contract for the sale and purchase of products of 

this Industry; or to induce, attempt to induce, or assist a party to 

break an existing contract for the sale of any products of this Industry, or to solicit or accept an order for any such goods, after the contract therefor has been placed with another selling member of this 

Industry, or to offer lower prices or better terms to induce or attempt 

to induce a revision of any such existing contract. 

2. Oom1ne1·mal Bribery.-To give, permit to be given, or directly 

or indirectly offer to give anything of value for the purpo e of influencing or rewarding the action of an employee, agent or representative or another in relation to the business of the employer of 

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

without the knowledge of such employer, principal or party. This 

provision 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 hereinabove 

defined. 

3. Defamation of Oo1npetitors.-To make, cause, or permit to be 

made, or published, any false statements or misrepresentations of, 

or concerning, the business, policies, methods, values, credit terms, 

services or products of a competitor. 

1 See paragraph 2 of order approving this Code. 
175 

4. Enticing Eniployees.-To employ or entice employees of a competitor with the purpose and effect of unduly hampering, injuring 

or embarrassing said competitor. This paragraph is not intended 

to apply to a case where an employee of his own initiative may se k 

another po ition or different employment. 

5. False Adve1·tising.-To make, cause, or permit to be made, or 

published, any false, untrue or deceptive statement by way of advertising or otherwise, concerning any gTade, quality, substance, character, origin or preparation of any product of this Industry. 

6. illisbrand-ing.-To falsely mark or brand packages or products 

of this Industry, for the purpose, or with the effect, of misleading or 

deceiving purchasers or others with respect to quality, quantity, character, grade or substance thereof. 

1. False Invo-icing.-To withhold from, or insert in, invoice facts 

which would make the invoice a false record, wholly or in part, of 

the transaction in question, or make any arrangement which would 

~ont~mplate payment or settlement contrary to the face of the 

1nv01ce. 

8. Post-dating or Pre-dating Contract or Inv·oice.-To post-date 

or pre-date contracts or invoices coverin~ products of this Industry. 

9. Guaranteeing Against Price Decline.-To guarantee against 

price decline, except as the same may be limited to the price decline 

of products of the particular member of the Industry concerned, in 

which latter event such guarantee shall apply only to goods which 

are not delivered. 

10. Secret Rebates.-To secretly directly or indirectly offer or make 

any payment or allowance of a rebate, refund, commission, credit, 

unearned discount or excess allowance, whether in the form of money 

or otherwise, or for the purpose of influencing a sale, secretly offer 

or extend to any customer any special service or privilege not 

extended to all customers of the same class. 

11. Terms.-To grant or allow terms, or to fail to charge interest 

on overdue accounts in connection with the sale of any products of 

this Industry, other than as follows: 

Net Cash 30 days, or one per cent (1% ) discount for Cash for 

payment as follows: 

(a) Bills dated the first (1st) to the fifteenth (15th) of the month 

inclusive, if paid on or before the twenty-fifth (25th) of the month; 

(b) Bills dated the sixteenth (16th) to and including the last day 

of the month, if paid on or before the tenth (10th) of the following 

month. 

The date of payment of an invoice is the date on which the check 

is mailed as indicated by post mark, unless the check carries a later 

date, in which case the date on the check is the date of payment. 

On accounts not paid within thirty (30) days from the end of the 

month, on which bills are rendered, interest shall be charged at not 

less than the rate of six per cent ( 6%) per annum or the legal maximum, whichever is lower, beginning on the first (1st) day of the 

month following the date on which payment was due, but no interest 

amounting to less than one dollar ($1.00) need be charged. Bills for 

such interest shall be rendered at least monthly. 
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ARTICLE IX 

No employer shall use any subterfuge to frustrate the spirit and 

intent of this Code. 

ARTICLE X-MONOPOLIES 

No provision of this Code and/ or its amendments shall be applied 

so as to promote monopoli s, or monopolistic practices, or to elimi- nate, oppress, or discriminate against small enterprises. 

ARTICLE XI-MODIFICATION 

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

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

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

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

regulation issued under said Act. 

SECTION 2. This Code, except as to provisions 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 Administrator. 

ARTICLE X II-Efl""'ECTIVE DATE 

The effective date o:f this Code shall be the second Monday after 

this Code shall have been approved by the President. 

Approved Code No. 455. 

Registry No. 1620-01. 

0