Approved Code No. 370 Registry No. 406-12 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

OPEN PAPER DRINKING CUP 

AND· ROUND NESTING PAPER 

FOOD CONTAINER INDUSTRY 

. u.s. 

AS APPROVED ON MARCH 26, 1934 

WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent 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. 

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, Mich.: 801 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 Broadvmy. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn.: 229 Federal Building. 

Minneapolis, Minn.: 213 Federal Building. 

New Orleans, La.: Room 225-A, .Customhouse. 

New York, N.Y.: 734 Customhouse. 

Norfolk, V a. : 406 Ea.st Plume Street. 

Philadelphia, Pa.: 422 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 Office Building. 
Approved Code No. 370 

CODE OF FAIR COMPETITION 

FOR THE 

OPEN PAPER DRINKING CUP AND ROUND NESTING PAPER FOOD CONTAINER INDUSTRY 

As Approved on March 26, 1934 

ORDER 

APPROVING CoDE OF FAIR Col\fPETITION FOR THE OPEN PAPER DRINIUNG 

CuP AND RouND NEsTING PAPEn FooD CoNTAINER INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of a Code of 

Fair Competition for the Open Paper Drinking Cup and Round 

Nesting P aper Food Container Industry, and hearings having been 

duly held thereon and the annexed report on said Code, containing 

findings with respect thereto, having ~e n made and directed to the 

President: 

NOvV, THEREFORE, on behalf of the President of the United 

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

pursuant to authority vested in me by Executive Orders of 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 re pects 

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

of Fair Competition be and it is hereby approved; provided, however, that the provisions of Article VI, Sections 2 to 9 inclusive, 

insofar as they prescribe a waiting period between the filing with the 

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

effective date of revised price lists or revised terms and conditions 

of sale be and they are hereby stayed pending my further order; 

provided further, that within ninety days I may direct that there be 

a further hearing on such of the provisions of said Code as I may 

designate, and that any order which I may make after such hearing 

shall have the effect of a condition on the approval of this Code. 

Approval recommended : 

GEO. L. BERRY, 

H UGH S. JOHNSON' 

Ad1ninistrator for I ndu.strial R ecove1·y. 

Division Administrator. 

VvAsHINaToN, D.c., . 11! arch ~6, 193./y. 

49137°----425-162----34 (567) 
REPORT TO TI-IE PRESIDENT 

The PRESIDENT, 

The lV kite H mose. 

SIR: This is a report of the hearing on the Code of Fair Competition for the Open Paper Drinking Cup and Round Nesting Paper 

Food Container Industry, conducted in Washington on November 

10, 1933, in accordance with the provisions of Title I of the National 

Indu trial Recovery Act. 

HOURS AND WAGES 

This Code provides a 40 hour week for factory workers with a 

weekly tolerance of eight hours to be paid for as o--rertime, and 

limited to 12 weeks per year. The usual exceptions are n1ade in 

regard to nonproductive employees. Office employees are ljmited to 

an average of 40 hours per week over a four-week period. 

The minimum wage rate for hourly paid employees is 40¢ per hour 

for males and 33¢ per hour for females. Office employees will receive 

a minimum wage of $15.00 per week. 

OPEN PRICE PLAN 

An open price plan of s-elling is provide 1, and . elling below co t, 

except to meet competition, is prohibited. 

OTHETI PROVISIONS 

Provision i made for furnishing the Administrator with such 

statistical data as he may require. 

ECOXOl\IIC EFFECT OF TilE CODE 

The Industry employed in 1930 approximately 2,500 persons and 

in the first six months of 1933 approximately 2,300 persons. In the 

week of July 17, 1933 during the highest peak period in the year in 

the Industry, 85% of the factory employees worked more than 40 

hours per week. The effect of the Code will be to employ abont 280 

additional persons to maintain production under similar conditions. 

The total increas in payrolls as a result of the Code will be 

about 8%. 

FINDINGS 

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

having fmmd as herein set forth, and on the basis of all the proceedings in thi. matter 

I find that: 

(508) 
569 

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

removal of ob tructions to the free flow of interstate and foreign 

commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the trade groups, 

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

eliminating unfair competitive practices, by promoting the fullest 

possible utilization of the present productive capacity of industries, 

by aYoiding undue restriction 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. 

(b) Said Industry normally employs not more than 50,000 employees and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the pertinent provisions of said Title of said Ad, including without limitation Subsection (a) o£ Section 3, Subsection (a) of Section 7, and 

Subsection (b) of Section 10 thereof; and that the applicant Association is an industrial Association truly representative of the aforesaid Industry; and that said Association imposes no inequitable 

restrictions on admission to membership therein. 

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

or monopolistic practices. 

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

small enterprises and will not operate to discriminate against them. 

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

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

Code. 

For these reasons this Code has been approved. 

Respectfully, 

MARCH 26, 1934. 

HUGH s. JOHNSON' 

Administrator. 
CODE OF FAIR COMPETITION FOR THE OPEN PAPER 

DRINI{IN G CUP AND ROUND NESTING PAPER FOOD 

CONTAINER 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 meaning herein 

set forth: 

"Indu try "-The manufacture of open paper drinking cups, and 

round nesting paper containers for the packing of food and other 

products. · 

":Member "-A natural person, partnership, corporation, association, trust, trustee, trustee in bankruptcy, receiver or other form o:f 

enterprise, engaged in such Industry. 

"Act "-Title I of the National Industrial Recovery Act. 

"Administrator "-The Admini trator for Industrial Re.covery 

under Title I in the Act. 

ARTICLE II-OnGA~IZATION AND AmvnNISTRATION 

ECTION 1. There shall forthwith be constituted a Code Authority 

of the Open Paper Drinking Cup and Round Nesting Paper Food 

Container Industry which shall consist of seven (7) members selected in the manner hereinafter provided, together with such person 

or persons as may be designated by the Administrator. The person 

or person so designated shall serve without vote and without compen. ation fron1 the Industry. 

SECTION 2. The Executive Director of the Cup and Container Institute, Incorporated, shall forthwith call an Industry meeting for 

the purpose of electing the Industry members of the Code Authority. 

At least ten (10) days' written or telegraphic notice of such meeting 

shall be given by him to each known member. A member may elect 

to be pre ent either in person or by proxy and shall be entitled t.o one 

vote for each candidate. 

SEcTION 3. The election of the members of the Code Authority 

shall be conducted in accordance with the following procedure: 

(a) The first member shall be elected from among the members 

whose annual net sales, by dollar value, of the products of the 

Inclu try for the preceding year were $1,500,000 or more. 

(b) Each succeeding member shall be elected, one by one, in like 

fa ·hion from among tho. e members whose annual net sales, by dollar 

(570) 
571 

-

value, of the products of the Industry for said year were respectively: 

(1) $1 000,000 or more 

l

2) $750,000 or more 

3) $500,000 or more 

4) $250,000 or more 

( 5) $100,000 or more 

(6) $10,000 or more 

(c) A majority of the votes cast in any ballot shall be necessary 

to elect a candidate. SEcTION 4. The Executive Director shall determine, upon the basis 

of figures furnished to him by members and announce at said meeting, previous to nominations, the members eligible for such nominations. 

SEcTioN 5. Any member may nominate a candidate for membership on the Code Authority and a candidate elected in accordance 

with the foregoing shall serve for one year or until his successor is 

duly selecte l. 

SECTION G. The Code Authority by a majority 'Tote of its membership at any regular or special meeting shall fill any vacancies that 

may occur in its membership. The Administrator may at any time 

prescribe a different method for selecting the Industry m.embers of 

the Code Authority, and thereafter such members shall be chosen 

in the manner so prescribed. 

SEcTION 7. The Cup and Container Institute, Inc., together with 

its facilities, shall be utilized by the Code Authority for carrying 

on its work and activities proYided that nothing herein shall relieve 

the Code Authority of its dutie~ or responsibilities under this Code 

and that such trade association shall at all times be subject to and 

shall comply with the provisions hereof. 

SECTION 8. The Code Authority is charged generally with the duty 

of administering this Code. If the Administrator shall det€rmine 

that any action of the Code Authority, or any agency thereof, may 

be unfair or unjust or contrary to the public interest, the Admin-

]strator may require that such action be suspended to afford an 

opportunity for investio-ation of the merits of such action and further 

consideration by the Code Authority or agency pending final action 

which shall not be effective unless the Administrator approves or 

unless he shall fail to disapprove after thirty (30) days' notice to 

him of intention to proceed with such action in its original or 

modified form. 

SECTION 9. The expenses of administering this Code shall be borne 

pro rata, in accordance with a formula to be adopted by the Code 

Authority, by all members of the Industry who accept the benefit of 

the services of the Code Authority or otherwise assent to this Code. 

SECTION 10. The Code Authority uhall have power to investigate 

alleged violations of this Code and acts or courses of conduct by any 

member which are or appear to be contrary to the policy of the Act 

or which tend or may tend to render ineffective this Code and to 

report the same with recommendations to the Administrator. 

SECTION 11. The Code Authority shall cooperate with the Administrator in regulating the use of any N. R. A. in ignia solely by those 

members of the Industry who have a sented to, and are complying 

with, this Code. 
572 

SECTION 12. The Code Authority may appoint a Trade Practice 

Committee which hall meet with the Trade Practice Committees 

under uch other Code · as ma v be related to this Industry for the 

purpo ·e of formulating Fair Trade Practices to govern the relationships between production and eli tribution employers under this Code 

and un ler uch others to the end that such Fair Trade Practices may 

be p1·opo eel to the Administrator as amendments to this Code and 

su ·h other Code~. 

ARTICLE III-I-IouRs oF LABOR 

SECTION 1. Employees in the Industry shall not be required or 

permitte 1 to \\Ork hour · in excess of the limits prescribed in the 

following (;:,chedule: 

SCHEDULE OF WORKING HOTIR:s 

(a) \Vatchmen: Fifty-six (56) hours in any one week, but not 

more than six (6) days in any seven (7) da.y period. 

(b) Chauffeurs, truckdrivers and their helpers: One hundred 

eighty (180) hours in any period of four ( 4) consecutive weeks, 

provided however, that time worked in excess of nine (9) hours in 

any one day or forty-five ( 45) hours in any one week shall be paid 

for as not less than time and one-third. 

(c) Engineer~. firemen and electricians: One hundred sixty-eight 

(168) hours in any period of four (4) consecutive weeks, provided, 

however, that time worked in excess of nine (9) hours in any one day 

or forty-five ( 45) hours in any one week shall be paid fo1· as not less 

than time and one-third. 

(d) All other laborers, mechanicnl workers or artisans employed 

in any plant, mill or factory or on work connected with the operation 

of such plant, mill or :factory: Eight (8) hour in any one day and 

forty ( 40) hours in any one week, provided~ however, that these 

maximum limits may be exceeded in any t\'i'elve (12) weeks of 

each calendar year, provided, that all time worked in excess of eight 

(8) hours in any one day and forty (40) hours in any one week 

shall be paid for as not less than time and nc-third, and provided, 

further, that no employee hall be required or permitted to work 

in excess of ten ( 10) hour. in any one day or f01-tv-eight ( 48) 

hours in any one \Yeek. 

(e) Employee · regularly engaged in a managerial, executive or 

supervi ory capacity receiving thirty-five ($35.00) dollnrs or more 

per week, and out ide alesmen: No limitation. 

(f) All other employees: Forty-eight (48) hours in ::my one 

week but not to exceed one hundred and sixty (160) hours in any 

period of four ( 4) con ecutive weeks. 

SECTION 2. No employee of the cla ses included under Se ·tions 1 

(b), 1 (c), 1 (d) and 1 (f) of this Article hall be required or 

permitted to "·ark more than ·ix (6) days in any period o£ seven 

(7) ·on: ecutivc days. 

SE TION 3. No limitation contained in saicl ·chedul hall apply 

to employees of any la . s when engag d in emergency repairs or 

cnwrgency maintenance \\Ork occasioned by br ak lawn or involv-
573 

ing protection of life or property, provided, however, that all 6me 

worked in exCASS of the limitations prescribed in said schedule 

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

SECTION 4. No emplo} er shall permit any employee to work for 

any time which when totaled vvith that already performed with 

another employer or employers in this Industry, exceeds the maximum permitted herein. 

SEcTIO 5. No female employ e shall be required or permitted 

to work between the hours of 10 P. lVI. and 7 A. M. 

AnTICLE IV-vV AGEs 

SEcTION 1. The minimum rate of wage of any employee, other 

than office or clerical employees, employed in any plant; mill or 

factory or on work connected with the operation of any such 

plant, mill or factory shall be as follows: 

Male, 40 cents per hour 

F emale, 33 cents per hour 

SECTION 2. The minimum rate of wage for office or clerical 

employees shall be fifteen ($15.00) dollars per week. Part-time 

employees covered hy the provisions of this Section shall be paid at 

the rate of not le ·s than thirty -seven and one-half ( 371j2¢) cents 

per hour. _ 

SECTION 3. This Article establishes a minimum rate of pay v,rhich 

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

SECTION 4. The wage rates of all employees receiving more than 

the minimum rates herein prescribed shall be reviewed and such 

adjustments made therein as are equitable in the light of all the 

circumstances, but in no case shall they be decreased. \Vithin sixty 

(60) days after the effective date hereof, the Code Authority shall 

report to the Administrator the action taken by all members of the 

Industry under this Section. 

SECTION 5. Office boys and girls under eightoon (18) years of age, 

to the extent of no more than 5% of the total number of employees 

described in Section 2 hereof, 1nay be employed at a wage of not less 

than 80% of the minimum prescribed by said Section, provided that 

at least one sucl~ office boy or girl may be employed by -each member. 

SEcTION 6. Female employees performing substantially the same 

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

employees. 

SECTION 7. A person \vhose earning capacity is limit-ed 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 or other agency designated by 

the United States Department of Labor shall have ·issued a certificate 

authorizing his employment on such basis. Each member shall file 

with the Code Authority a list of all such persons f'mployed by him. 

ARTICLE V-GENEnAL LABOR PnovrsroNs 

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

employed in the Industry. No p2rson under eighteen (18) years of 

age shall be emp1oyec1 at operations or occupations which are 
574 

hazardous in nature or dangerous to health. The Code Authority 

shall submit to the Admini trator within sixty (60) days after the 

effective date of this Code a list of such operations or occupations. 

In any State an employer shall be deemed to have complied with this 

provision as to age if he shall have on file a certificate or permit duly 

signed by the authority in such State empowered to issue employment 

or age certificates or permits, showing that the employee is of the 

required age. 

SECTION 2. Employees hall have the right to organize and bargain 

collectively through repre entatives of their owri choo ing, 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 

collectiv·c barrraining or other mutual aid or protection. 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 a i ting a labor m·ganization of his own choosing. Employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions of employment, approved 

or pre cribed by the President. 

SECTION 3. No provision in this Code shall supersede any State 

or Federal la 'v which imposes on employers more stringent requirements as to age of employees, wages, hours of work, or as to afety, 

health, sanitary or general working conditions or insurance or fire 

-protection, than are imposed by this Code. 

SECTION 4. No employer shall reclassify employees or duties of 

occupations performed or engage in any other subterfuge for the 

purpose of defeating the purposes or provisions of the Act or of 

this Code. 

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

and V of this Code in conspicuous places accessible to employees. 

SECTION 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. 

RECTION 7. The Code Authority shall make a study of conditions 

in the Industry to determine the f·easibility of t~e 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. 

SECTION 8. The manufacture or partial manufacture of a.ny product 

of the Industry in homes shall be prohibited. 

ARTICLE VI 1-AccouNTING-SELLING 

SECTION 1. The Code Authority shall, as soon as practicable, cau e 

to be formulated an accounting system and methods of cost finding 

and/ or estimating capable of use by all members of the Industry. 

After such system and methods have been formulated and approved 

1 See pa !'agrapb 2 of order approving this Code. 
575 

by the Administrator, full details concerning them shall be m~de 

available to all members. Thereafter all members shall deternune 

and/or estimate costs in accordance with the I rinciples of such 

methods. 

SECTION 2. The Code A11thority 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 into effect on such date 

as it shall fix. Notice of such determination shall be announced to 

all known n1.embers of the Industry who manufacture such products 

not less than thirty (30) days prior to the date so fixed. 

SECTION 3. At least ten (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 products or, in the alternative, shall be 

deemed to haYe filed a schedule conforming in respect to price and 

terms of sale with the schedule at any time on file which states the 

lowest price and the most favorable terms. 

SECTION 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, brokerage fees, price differentials or 

other considerations granted for services rendered in warehousing or 

distributing such products, 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. 

SECTION 5. An original schedule, 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 lowest price and the most favorable terms. 

Any schedule or notice filed hereunder, shall become effective five 

( 5) days after the date of filing, provided, ho'lever, that an increased price may become effective at such earlier date as the 

member filing the same shall fix. 

SECTION 6. The Code Authority shall promptly supply all members 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 inforn'lation relative to the withdrawal of a price for any product, any 

me1nber 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 ma.y file a revised schedule conforming as 

to price and terms to the schedule of such other 1nember, and effective 

on the same date, or he m_ay 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 reYised schedule of such other member. 
576 

SEcTION 7. No such schedule of prices and terms of sale filed by 

any member: or in effect at any time, shall be such as to permit the 

sale of any product at les that the cost thereof to such member 

determined 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. 

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

hi own a price filed by another member for any product of the 

Industry, shall sell such product for less than su h price or upon 

t erms or conditions more favorable than stated in such price schedule. No member, who shall have failed to file a price for any 

pro luct for which the open price plan is in effect, shall sell such 

product at a lo·wer price or on terms more favorable than the lowe t 

price and most favorable terms stated in any price schedule for such 

product then on file. 

SECTION 9. The Code Authority shall furnish at cost to any interested person, whether member or non-member requesting them~ 

copies of any price schedules which have been filed with it. Such 

price ·chedules shall be made available to non-members at the same 

time that they are sent to members. 

SECTION 10. No member shall sell any product of the Industry for 

-n·hich 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 such 

Section. 

SECTION 11. Cost, for the purposes of this 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 

shall from time to time prescribe with the approval of the 

Administrator. 

SECTION 12. Every member shall upon the request of the Code 

Authority furnish a designated agency of the Cod-e Authority in 

respect to clo ~ed transactions only, with complete information in 

regard to any quotation, order, contract, or sale of any product of 

the Industry, including information as to pecifica6ons, quantities, price, conditions of storage, transportation or delivery 1 terms of 

billing, cash or trade discounts allowed and other pertinent facts 

relating to such quotation, order, contract or sale. 

SECTION 13. Every member filing a schedule or notice hereunder 

shall deliver to the Code Authority without expense such number 

of copies thereof as shall be nece sary to enable the Code Authority 

to supply one copy thereof to each member of the Industrv and no 

such schedule or notice shall be deemed to have been filed l;ntil such 

number of copies shall have been receiv·ed by the Code Authority. 

SECTION 14. Nothing herein contained shall be con trued to prevent the disposition of distress merchandise required to be sold to 

liquidate a defunct or insolvent business or of discontinued lines, 

damaged goods or seconds, in such manner, at such price and on 
577 

such terms and conditions us a member shall publish with the Code 

Authority prior to the sale thereof. . SEcTION 15. Nothing herein contained shall be construed to prevent the fulfillment of a bona fide contract exi ting on the effective 

date of this Code. 

SECTION 16. Nothing herein contained hall be construed to permit 

discrimination between like purchasers for like quantities. 

SEcTION 17. The Code Authority may at any time, suspend the 

open price plan of selling either in its entirety or in so far a · it applie to any specified product or product of the Industry. 

ARTICLE VII-REPORTS AXD STAT! TICS 

SECTION 1. Each member shall prepare and file \\ ith an impartial 

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

manner as it may pre cribe, such statistics, data and information 

relating to plan capacity, volume of production, volume of sales in 

units and dollar orders received, unfilled orders, stocks on hand, 

inventory both raw and fini heel, number of employees, wage rates, 

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

Authority or the ~clministrator may from time to time require. 

SECTION 2. Ex ·ept as otherwise provided in the Act, or in this 

Code all statistics, data and information filed or required in accordance with the provisions of thi. Code shall be confidential and the 

stati tics, 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 :imilar data and in such a manner 

as to aYoid 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. 

SECTION 3. The Code Authority shall make uch reports to the 

Administrator as he may from time to time require. 

SECTION 4. In addition to inform.ation required to be submitted to 

the Code Authority there hall be furniE:hed to Government Agencies 

such statistical information a the Adn1ini trator may deem necessary 

for the purpose recited in Section 3 (a) of the Act. Nothing contained in this Code shall relieve any member of any existing obligations to furnish reports to any Government Agency. 

ARTICLE \ III-MoNOPOLIES 

SEcTION 1. No proYision of this Code hall be o applied as to 

permit monopolies or monopolistic practices, or to eliminate, oppress, 

or discriminate against small enterprises. 

ARTICLE IX-RECOMMENDATIONS 

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

to the Administrator recommendations ba ed on condition in the 

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

the policy of the Act, and in particular along the follo\\·ing lines : 

(a) For the e tablishment of additional rules of :fair trade practice for the Industry and for the codification of its trade customs, and 

the enforcement thereof. 
578 

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

demand, so that the interest of the Industry and the public may be 

properly served. 

(c) For dealino- with any other inequality that may arise to 

endanger the stabiYity of the Industry and of production and employment. 

(d) For an increac:e or decrease in the number of Industry members 

of the Code Authority andjor for a change in the method of choosing 

such members. 

SECTIO~ 2. Recommendations made pursuant to Section 1 hereof 

when approved by the Administrator after such notice and hearing as 

he shall prescribe, shall have the same force and effect as other 

provisions of this Code. 

AnTICLE X-TRADE PRACTICES 

SEcTION 1. The following are hereby constituted Trade Practices 

for the Industry and failure to comply with the provisions thereof 

shall be a violation of this Code. 

(a) Members 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 c·onsideration. 

(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 good , 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) 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 employee, 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. 

(£) No member of the Industry shall ship goods on consignment, 

except under circumstances to be defined by the Code Authority where 

peculiar circumstances of the Industry require the practice. 

ARTICLE XI-GENERAL PROVISIONS 

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

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

the Industry, shall be regarded as a part of this Industry. SECTION 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 Administrator be modified and eliminated as changes in 

circmnstances or experience may indicate. 
579 

SECTION 4. This Code and all the provisions thereof are expressly 

made ubject to the right of the Pre ident, in accordance with the 

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

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

under Title I of said Act, and specifically, but without .limitation, 

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

this Code or any conditions imposed by him upon his approval 

thereof. 

SECTION 5. This Code shall become effective on the second Monday after the date upon which it shall lJe approved by the President 

of the United States. 

Approved Code No. 370. 

Registry No. 406-12. 

0 
UNIVER S ITY OF FLORIDA 

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