NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

WASTE MATERIAL INDUSTRY 

AS SUBMITTED ON AUGUST 18, 1933 

REGISTRY No. 1632-08 

The Code for the Waste Material Industry 

in its present form merely reflects the proposal of the above-mentioned 

industry, and none of the provisions contained therein are 

to be regarded as having received the approval of 

the National Recovery Administration 

as applying to this industry 

0 -· -.... ,,.~, - -- . "" -... ... 

u.a. DEP081rofltY 

- UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the Superintendent of Documents, Washington, D.C. 

I 

Price 5 cents 
PREFACE 

The National Association of Waste Material Dealers, Inc., was 

organized on March 24, 1913. 

It was incorporated under the Laws of the State of New York 

on July 2, 1919. 

For many years it was the only national organization representing 

the Waste Material Industry. 

From the date of its inception the Association has represented 

every branch of the Waste Material Industry. 

The Association has been in continuous existence since the date of 

its organization, and its By-Laws admit as members all persons, 

firms, or corporations engaged in any branch of the Waste Material 

Industry. 

Two copies of the Association's By-Laws accompany this Code 0£ 

Fair Competition. 

(II) 
CODE OF FAIR COMPETITION FOR THE WASTE MATERIAL 

INDUSTRY 

SUBMITTED BY THE NATIONAL ASSOCIATION OF WASTE 

MATERIAL DEALERS, INC. 

EMBRACING THE FOLLOWING DIVISIONS AND ORGANIZATIONS 

: SCRAP RUBBER DIVISION, COTTON WASTE DIVISION, SCRAP IRON DIVISION, WOOLEN RAG DIVISION, WASTE PAPER INSTITUTE, ASSOCIATED RAG 

INDUSTRIES, SECONDARY METAL INSTITUTE, NATIONAL WIPING CLOTH 

STANDARDIZATION ASSOCIATION 

ARTICLE I-PURPOSE 

To effectuate the policy of Title 1 of the National Industrial Recovery Act during the period of the emergency by reducing and 

relieving unemployment, improving the standards of labor, eliminating competitive practices destructive of the interests of employers, 

employees, and the public, and in the interest of the conservation of 

the virgin natural resources of the country, for which waste materials 

are a substitute, the following provisions are established as a Code of 

Fair Competition for the Waste Material Industry on and after the 

effective date of this Code. 

ARTICLE II-DEFINITIONS 

The term " Waste Material Industry " as used herein is de.fined to 

mean those engaged in the handling of waste or secondary materials, 

including nonferrous metals ( dealers and smelters) scrap iron, cotton 

and woolen rags, old bagging, rope, waste paper, scrap rubber, cotton 

and silk waste, wiping cloths, and a large number of specialties. such 

as scrap glass, scrap leather, film waste, etc. 

The term " Member of the Industry " means and includes any person, firm, or corporation operating in any branch of the waste 

material industry. 

The term " Employers " shall mean all persons who employ labor 

in the conduct of any branch of the waste material industry, as de- . fined above. 

The term "Employees" shall mean all persons employed in the 

conduct of any branch of the waste material industry. 

The term "Effective Date" shall mean the second Monday after 

this Code has received the approval of the President. 

The term" The President" shall mean the President of the United 

States of America. 

The term "Person" shall mean any individual, partnership, association, trust, or corporation. 

The term " South " as used in this code, shall mean south of the 

Mason and Dixon Line, south of the Ohio River, and east of the ~Mississippi River and including the State of Missouri. 

8235-33 (1) 
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ARTICLE III-PABTICIPATION IN THE CODE 

SECTION 1. Participation in this code and any subsequent revision 

of, or addition to the code, which may hereafter be approved by the 

President, shall be extended to and shall apply to any person, partnership, or corporation engaged in the waste-material industry. 

SEo. 2. For the purpose of properly enforcing the labor, minimum 

wage, and other provisions of this code, each unit in the wastematerial industry, shall pay its pro rata share of the expense incurred 

in carrying out the provisions of this code. Such pro rata share 

shall be fixed by the Board of Directors of the National Association 

of Waste Material Dealers, Inc., and shall be payable to the Treasurer, designated by the above-mentioned Board of Directors for that 

purpose, within thirty (30) days after the Effective Date of this 

code and thereafter within thirty (30) days of each succeeding anniversary date of approval of this code so long as it may legally be in 

effect. Failure of any unit to pay such charge shall constitute a 

violation of this code. 

ARTICLE IV-ADMINISTRATION OF THE CODE 

The Board of Directors of the National Association of Waste Material Dealers, Inc., is hereby designated the agency for administering, supervising, and promoting the performance of the provisions 

of this code and shall have all the powers and duties conferred upon 

it by the code, and generally all such other powers and duties as 

shall be necessary or proper to enable it fully to administer the code 

and to effectuate its purpose. 

For the purpose of carrying out the provisions of the National 

Industrial Recovery Act and complying with the spirit thereof, every 

employer in the waste-material industry shall prepare and furnish 

to the Board of Directors of the National Association of Waste 

Material Dealers, Inc., such information as is required for the proper 

enforcement of the provisions of the code. 

ARTICLE V-REPORTS AND STATISTICS 

Except as otherwise provided in th~ National Industrial Recovery 

Act, all statistical data filed in accordance with the provisions of 

Article IV shall be confidential and the data of one employer shall 

not be revealed to any other employer except for the purpose of 

administering or enforcing the provisions of this code. The Board 

of Directors of the National Association of Waste Material Dealers, 

Inc., or their. duly authorized representatives, shall have access to 

any and all statistical data that may be furnished in accordance with 

the provisions of this code. 

ARTICLE VI-CHILD LABOR 

On and after the Effective Date of this code no person under sixteen ( 16) years of age shall be employed in the wa te-material industry, 

except that persons between fourteen (14) and sixteen (16) ear 

of age may be employed for not to exceed three (3) hour a day, 

and those hours between seven (7) A.M. and seven (7) P.M. in uch 

work as will not interfere with hours of day school. 
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ARTICLE VII-LABOR 

SECTION 1. Employees of members of the waste material industry 

shall have the right to organize and bargain collectively through 

representatives of their own choosing and shall be free fro1n 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. 

SEC. 2. No employee of a member of the .waste material industry 

and no one seeking employment therein 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. 

SEc. 3. Employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions of employment approved 

or prescribed by the President of the United States. 

ARTICLE VIII 

MINIMUM WAGES AND MAXIMUl\I HOUR 

On and after the Effective Date of this code, the minimum wages 

that shall be paid by any employer in the respective divisions of 

the waste material industry, and the maximum hours of work shall 

be as follows : 

WASTE PAPER 

Twenty-five cents (25¢) per hour for female sorters. 

Forty cents ( 40¢) per hour for male labor. 

Five cents ( 5¢) per hour less for Southern Labor. 

Forty ( 40) hours per week. 

Forty-eight ( 48) hours per week for Chauffeurs, Drivers Helpers,· Engineers, and Watchmen. 

CO'ITON RAGS 

Men: Thirty-five cents (35¢) in the North (per hour); thirty cents 

(30¢) in the South (per hour). 

Female sorters: Twenty-five cents (25¢) per hour in the North; 

twenty cents (20¢) per hour in the South. 

Forty-four (44) hours per week. 

Apprentices-6 week period: $7.00 per week in the North; $6.00 

per week in the South. 

Forty-eight ( 48) hours per week for Chauffeurs, Drivers, Helpers, 

Engineers, and Watchmen. 

SCRAP RUBBER 

Forty cents (40¢) per hour in the North; thirty-five cents (35¢) 

per hour in the South. 

Forty ( 40) hours per week. 

Forty-eight (48) hours per week for Chauffeurs, Drivers, Helpers, 

Engineers, and Watchmen. 
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SCRAP IRON 

Thirty-seven and one-half cents ( 371⁄2¢) per hour in the North; ~ 

twenty-seven cents (27¢) per hour in the South. 

Forty (40) hours per week. 

Forty-eight (48) hours per week for Chauffeurs, Drivers, Helpers, 

Engineers, and Watchmen. 

WOOLEN RAGS 

Men: Thirty-five cents (35¢) per hour; Women, twenty-five cents -

( 25¢) per hour. 

One dollar ($1.00) per week less in the South. 

Forty-four ( 44) hours per week. 

Apprentices: Six (6) week period; seven dollars ($7.00) per, 

week. 

Forty-eight ( 48) hours per week for Chauffeurs, Drivers, Helpers, . 

Engineers, and Watchmen. 

COTTON WASTE 

Minimum wage in the North $10.00 per week. 

Minimum wage in the South $9.00 per week. 

Forty ( 40) hours per week. 

Forty-eight ( 48) hours per week for Chauffeurs, Drivers, Helpers,. Engineers, and Watchmen. 

SECONDARY METALS 

Minimum wage Thirty-five cents (35¢ ') per hour. 

Five cents (5¢) per hour less in the South. 

Forty ( 40) hours per week. 

Forty-eight ( 48) hours per week for Chauffeurs, Drivers, Helpers, . 

Engineers, and Watchmen. 

WIPING CLOTHS 

Men $17.60 per week, at the rate of Forty cents ( 40¢) per hour in .. the North and a Forty-four (44) hour week. 

Women $10.00 per week, at the rate of Twenty-five cents (25¢) 

per hour in the North for a Forty ( 40) hour week. 

In the South the minimum wage shall be $15.40 per week at the 

rate of Thirtl_fivei cents ( 35¢) per hour for men and $8.00 per week 

at the rate o Twenty cents (20¢) per hour for women, except that . 

apprentices may be employed for a period not to exceed two (2) 

weeks, to receive not less than $7.00 per week. 

Maximum hours for women in the South, Forty (40) hours. 

Maximum hours for men in the South, Forty-four ( 44) hours. 

Forty-eight ( 48) hours per week for Chauffeurs, Drivers, Helpers, 

Engineers, and Watchmen. 

N OTE.-The minimum rate of wages covering any commodities 

embraced in the waste material industry, not covered specifically by · 

above designations, shall be as foll~s: 
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Thirty-five cents (35¢) per hour in the North. 

Thirty cents (30¢) per hour in the South. 

For a week of Forty ( 40) hours, with the same exceptions as to 

Chauffeurs, Drivers, Helpers, Engineers, and Watchmen, as provided above. 

ARTICLE IX-SELLING BY SEALED Brns 

Because a large volume of waste material business has been done 

at a loss due to the practice by sellers, after offering the material 

on bids to be opened at a definite time, of divulging to competing 

bidders information as to other bids received, it is strongly recommended that all such business shall be on the basis of sealed bids, 

and it shall be a violation of this Code for members of the industry 

to seek or accept information on competitors' bids on such sales. 

ARTICLE X-PRODUCER COMPETITION 

Whenever a producer of waste material sells such material direct 

to the ultimate consumer rather than through a dealer, thereby 

coming into competition with a member of the waste-material industry, said producer shall be governed by any and all provisions 

contained in this Code, having to do with the commodity sold. 

ARTICLE XI-RECIPROCAL ARRANGEMENTS 

Reciprocal arrangements between producers and consumers, such 

as the exchange on the part of producers of tonnages of waste materials for finished products, disturb the whole competitive structure 

of the waste-material industry and offer an easy opportunity for 

granting rebates and violating the provisions covered in the Code 

of fair competition of other industries. Such arrangements are 

strongly disapproved by the waste-material industry. 

ARTICLE XII-COMPETITION OF CHARITABLE ORGANIZATIONS 

No Charitable Organization may engage in the handling of waste 

materials unless (a) all such material handled represents material 

donated and is by such organization sold througli waste material 

dealers or (b) unless such Charitable Organizations comply with 

the minimum wage, maximum hours, and other regulations set up 

in this code to which other employers in the waste material industry 

are subject. 

ARTICLE XIII-CooPERATION WITH CoNSU MING INTERESTS 

. yVith a full appreciation. of _the fact that a Code of Fair Competition for the waste material industry, to be effective, requires the 

cooperation of those consuming such material, there shall be set up 

by the various divisions of the waste material industry, following 

the approval of this code, Trade Relations Committees :for the purpose of cooperating with those industries consuming waste materials. 
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ARTICLE XIV-MEMBERS OF EMPLOYER'S FAMILY EMPLOYEES 

Wherever an employer in the waste material industry employs the 

services of members of his family, all such persons must be regarded as employees, and shall be subject to all provisions contained 

in this code affecting employees of members of the waste material 

industry. 

ARTICLE XV-RULES FOR THE INDUSTRY 

In the interest of uniformity and fair competition, the various 

divisions making up the waste material industry covered by this 

Code, will submit at a later date, as an amendment to this code, rules 

and regulations governing the conduct of each branch of the industry 

and after such rules have been approved by the President, any 

violation of them will constitute a violation of this code. 

ARTICLE XVI-INTERPRET.A TIO NS 

This code and all the provisions thereof are expressly made subject to the right of the President, in accordance with the provision 

of Section 10 (b) of Title 1 of the National Industrial Recovery Act, 

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

rule, or regulation, issued under Title 1 of said Act, and specifically 

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

this code or any conditions imposed by him upon his approval 

thereof. 

ARTICLE XVII-AMENDMENTS 

Such of the provisions of this code as are not required to be included herein by the National Industrial Recovery Act may, with 

the approval of the President, be modified or eliminated as changes 

in circumstances or experience may indicate. It is contemplated that 

from time to time supplementary provisions to this code or additional codes will be submitted for the approval of the President to 

prevent unfair competition in price and other un:fair and destructive competitive practices and to effectuate the other purposes and 

policies of Title 1 of the National Industrial Recovery Act, consistent with the. provisions hereof. 

ARTICLE XVIII-ARBITRATION 

Any complaint, difference, controversy, or question of fair competition arising under or out of this code or concerning the interpretation or application of any provisions thereof which cannot be 

adjusted amicably through the instrumentality of the Board o:f 

Directors of the National Association of Waste Material Dealers, 

Inc., shall be submitted to arbitration by the use of the American 

Arbitration Tribunal maintained by the American Arbitration 

Association. 

ARTICLE XIX-TRADE PRACTICE RULES 

A. Willful delivery of an interior product against a contract :for 

a particular grade by means o:f false packing that cannot be readily 
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discovered, the effect of which is to deceive the purchaser, or the 

substitution of an inferior grade of material against a contract 

calling for a particular grade without the permission of the purchaser and ultimate consumer with the intent and effect of deceiving 

the purchaser and ultimate consumer, constitutes a violation of this 

code. 

B. The defamation of competitors by falsely imputing to them 

dishonorable conduct, inability to perform contracts, questionable 

credit standing, or by other false representations or the false disparagement of the grade or quality of their goods, with the tendency 

and capacity to mislead or deceive purchasers or prospective purchasers and the tendency to injuriously affect the business of such 

competitors, constitutes a violation of this code. 

C. Directly or indirectly to give or permit to be given or offer to 

give money or anything of value to agents, employees, or representatives of customers, or prospective customers, or to agents, employees 

or representatives of competitors' customers or prospective customers, without the knowledge of their employers or principals, as an 

inducement to influence their employers or principals to purchase 

or contract to purchase industry products from the maker of such 

gift or offer, or to influence such employers or principals to refrain 

from dealing or contracting to deal with competitors, constitutes a 

violation of this code. 

D. Willfully inducing or attempting to induce the breach of an 

existing contract, or the interference or attempted interference with 

the performance of any contractual duty for the purpose and effect 

of injuring or destroying the patronage, property, or business of 

a competitor, constitutes a violation of this code. 

E. The selling of goods below cost with the intent and with the 

effect of injuring a competitor and where the effect may be to substantially lessen competition or tend to create a monopoly or to 

unreasonably restrain trade, constitutes a violation of this code. 

F. The issuance of fictitious, inflated, deflated, or misleading price 

quotations or offers for the purchase or sale of waste materials with 

no purpose to accept proposals received or to make sales at the prices 

quoted but solely to attract purchasers to his place of business, constitutes a violation of this code. 

G. The submission of false claims to a supplier when same are 

not founded on actual mill or ultimate consumer reports or are not 

substantiated by authentic debit bills, constitutes a violation of this 

code. 

H. The issuance of fictitious bills of lading or other documents o:f 

title, or the willful inclusion of erroneous weights or other information therein, for the purpose of securing advances of money or full 

payment when the contract provides otherwise, constitutes a violation of this code. 

I. The practice of neglecting or failing to return signed contracts or confirmations of verbal or telephone agreements of purchase and sale with the end in view of later relying on the absence 

of any signed contract or memorandum as ground for repudiation of 

the agreement, constitutes a violation of this code. 

J. Contracts, either written or oral, are business obligations which 

should be performed in letter and spirit. The repudiation of con-
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tracts by sellers on a rising market, or by buyers on a declining 

market, is equally reprehensible and constitutes a violation of this 

code. 

K. The intentional :failure to fill orders or perform contracts except :for Act o:f God or other lawful cause, or the intentional withholding by the purchaser o:f shipping instructions with the intent o:f 

avoiding the contract constitutes a violation o:f this code. 

L. The :failure o:f dealers or brokers to give credit :for overweights, 

where credit :for overweights has been given by the consumer, constitutes a violation o:f this code. 

M. Violation by either party, buyer or seller, of the agreement 

between then1 as to the discount :for cash constitutes a violation of 

this code. 

N. It is the judgment of this industry that an accurate knowledge 

o:f costs is indispensable to intelligent and :fair competition and 

failure o:f a member of the industry to adopt some accurate method 

o:f cost finding shall constitute a violation of this code. 

0. The industry approves the practice o:f handling disputes in a 

fair and reasonable manner, coupled with a spirit o:f moderation 

and good will and every effort should be made by the disputants 

themselves to arrive at an agreement. I:f unable to do so they should 

agree, if possible, upon arbitration under some of the prevailing 

codes. 

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