Registry No. 406-02

NATIONAL RECOVERY ADMINISTRATION

PROPOSED CODE OF FAIR COMPETITION

1 FOR THE

PAPER MANUFACTURING

INDUSTRY

AS SUBMITTED ON JULY 24, 1933

MEMBER

R

U.SA

WE DO OUR ART

The Code for the Paper Manufacturing 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

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON : 1933

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - - Price 5 cents
SUBMITTED BY

NATIONAL PAPERBOARD A'SSOt'ATION
CODE OF FAIR COMPETITION FOR THE PAPERBOARD

PRODUCING INDUSTRY UNDER THE PROVISIONS OF

SECTION 3 OF TITLE I OF THE STATUTE ENTITLED "AN

ACT TO ENCOURAGE NATIONAL INDUSTRIAL RECOVERY, TO FOSTER FAIR COMPETITION AND TO

PROVIDE FOR THE CONSTRUCTION OF CERTAIN USEFUL PUBLIC WORKS AND FOR OTHER PURPOSES"

1. This application is made by the National Paperioard As ociation. a trade association, the meimbership of which consists 4f a subStafltial majority in iinu15ers and i) voltilllQ fii the 1mprm 'I" od, palper

board 

The Conmittee presenting l s a )ipplic tiOn w duly apiwinted 

and authorized for siUch purpose, 1yv vote ot the industry i 0141

meeting.

It Is the desire of the National Pawerbtarn 4 ,-ocjhim t Id 44lher.

members of the indlistry to cooperate with the Prfics i ihe

I united -tates in inC111e111ng elllovlent and w;wes aini to hake s110h

further step,S. sIibject to tie approve l Of tho IPnresi" J se t.5iii he

i1.4'esa-yIIV to lnwie posible siih j- 1 'Yn I iI: 4 1yw :Ilid V) 

()n A 1, 194, there was 1e1(0L to Ilflw P ilinl I <uieit

Ofycrincl i 1,lsb il vll to redc14 ho1 o lamr i111d to inil im-

.loIn ttin lwoll w4:(( r ii 1 l g1(2is1,hi LI Iv1iv!iluj ilustry finIall the An\ti-Tr-t Vav v Iflh i,'-pc(t it ' > (l t zl

a I

4])n vt' Liv I114' 2Y)Ve ii!I nt.t i4) 11 1111 0 m 1d ( iit u. t a 1 1:1 u mlwvr1 (if an iEilustrv. >11ich estate i4m Inrlml,if, 1e (uIitlil' ! nIT Il indlstry plan whi.li, except for detail, is the plan set forth in the

competition n -;ection of the annexed code.

At tihe time tiis statement w8a tran smii itted to) the Pres hIdent, t he

Ielle rshIp of the N atinal P81periarf A 4ssociztion inchi(1hd over

90 percent of the producer" of paper board. Abolit a week prior to

the enactment of the National Uecv( vy Act, the olniwinv pa Jer

board producers. constitutin1 J)mt 41 ' percent In vollinl of the

inditry r . esig-ned ifrlm] the A ()(ia i1n

Southern Kraft Corp., Panama Cit y. Flu .- Bastrop, L-a.

o-alusa Paper Co., Inc., oa La.

ltarl-hesa KCo. Inc. West P t VC.

Lon , view Fibr41e Compan * v. Lonyvie w, Wish.

The members of the pa per )mard in ist ry ase arl v s -:l1 y

1933 recognilzed that Treat excess capacity and the effort of 1 he individual to operate hey (o1nd industry avera)In e wa" resultii ' inl *i c4

demoralization and hanr to the indlStrV 11n11(d to the pliblic, 'Ind subS)ri)ed to the principle that 41ach individual o)perltor hi)1il ar y v

its fair share of the industry burdenI and that the mdinldt iry bmrden.

bein l' excess capacity. eaIch individiil operator sl miw, or operativelv control, excess capacity which was ill proportion to the

indstry excess capacity.

9447--33 (1)
The members of this industry at such time further subscribed to

the principle that individual operators who sought to escape their

fair share of the depression burden, should not be permitted so to

do except on a basis which would not work injury to employees, to

capital invested in the industry, and to the public.

In formulating the plan set forth in the Competition Section of

the annexed code, the industry has taken into consideration the principle stated and the large cost advantage arising from increased hours

of operation.

It is not desired to control price, to restrict or allocate volume.

The purpose of the tax of $5.00 per ton individual operations in

excess of the industry average is to prevent price demoralization.

It is true that cost savings due to individual operating periods in

excess of industry average may be more than the tax. It is desired

to permit progress and volume increase arising from business ability, quality, or other proper means, and it is believed that the annexed

code will not operate to preclude such progress by fair means. The

tax is intended as a balance against, and a deterrent to, securing increased operation beyond that fairly and competitively possible without resort to unfair, unreasonable, and demoralizing price cutting.

It is requested that the National Paperboard Association be constituted and recognized as the agency, for the purpose of a code

covering labor and fair competition for the producers of paper board

of all kinds, and that such further action be taken with respect to

such code as shall be proper and permitted under the National Industrial Recovery Act, and as shall be approved by the President of the

United States.

It is requested that the National Industrial Recovery Administration forthwith approve the labor provisions o.f the code herewith

submitted and that the labor provisions therein set forth shall be

applicable to and binding upon all producers of paper board in lieu

of the labor provisions set forth in proposed agreements by individual manufacturers with the President, and that the individual

producers of paper board shall, upon such approval by the National

Industrial Recovery Administration, be exempted from execution of

the agreement proposed by the President, and shall be deemed to be

members of the National Recovery Administration.

Annexed hereto, and marked Exhibit A, is a list of the members of

the National Paperboard Association.

In case this code shall not cover the entire industry and all producers of paperboard, it is respectfully requested that this application for a code may be withdrawn.

Respectfully submitted.

JNo. L. BARCHARD, Hummel & Downing Co.,

Milwaukee, Wis.

D. H. PATTERSON, JR., Fibreboard Products,

Inc., San Francisco, Calif.

WILLIAM P. JEFFERY, Chaiman, National

Paperboard Association, No. 1 Wall St.,

New York, N.Y.

For the Code Committee of the Paper Board Industry.

Dated JULY 24, 1933.
ExHIBIT A-MEMBERS OF NATIONAL. PAPEIIBOARD ASSOCIATION, JUiY 21. 1033

Albia Box & Paper Company, Troy, llinde & Dauch Paper Co., Sandusky, N.Y. 4 hio.

Alton Box Board & Paper Co., Alton, Ilummel & 1)ionhilg Co., Milwaukee,

Ill. Wis.

American Box Board Co., Grand Lawless Bros. Paper Mills, East Rochlapids, Mich. ester, N.Y.

American Coating Mills, Elkhart, Ind. Lawrence Paper Co., Lawrence, Kans.

Auglaize Box Board Co., St. Marys, Liberty Paperboard Co., Inc., SteubenOhio. Ville, Ohio.

Ball Brothers Company, Muncie, Ind. Lydaill & Foulds Paper Co., ManchesBartgis Brothers Co., Ilchester, Md. ter, Comi.

Bedford Pulp & Paper Co., Big MacAndrews & Forbes Co., New York,

Island, Va. N.Y.

Bicking Paper Mfg. Co., S. Austin, Mac Sim Bar Paper Co., Otsego,

Downington, Pa. Mich.

Bird & Son, Inc., East Walpole, Mass. McEwan Brothers, Whippany, N.J.

Bloomer Brothers Co., Newark, N.Y. Mea d Paperboard Corp., New York,

Carolina Fiber Company, Hartsville, N.Y.

S.C. Michigan Carton Co., Battle Creek,

Central Fibre Products Co., Chicago, Mich.

Ill. Ab bile Paper Mills, Mobile, Ala.

Chemical Paper Mfg. Co., Holyoke, Morris Paper Mills, Chicago, Ill.

Mass. Mutual B( xh oard Co., Utica, N.Y.

Cliesapoake Paper Board Co., Balti- National Folding Box Co., New Hamore, Md. veli, Con.

Clifton Paper Mills, Clifton, N.J. B. F. Nelson Mfg Co., Minneapolis,

Columbia Box Board Mills, Chatham, Minn.

N.Y. Newark Boxboard Co., Newark, N.J.

Consolidated Paper Co., Monroe, Mich. New Haven Pulp & Board Co., New

Continental Paper Co., Ridgefield Haven, Conn.

Park, N.J. Ohio Boxboard Co., Rittman, Ohio.

Container Corporation of America, Owens-Illinois Glass Co., Toledo, Ohio.

Chicago, Ill. The Pair point Corporationi, New BedCornell Wood Products Co., Chicago, ford, Mass.

Ill. Prairie State Paper Mills, Joliet, Ill.

Coshocton Straw Paper Co., Coshoc- Penn Fibreboard Corp., New York,

ton, Ohio. N.Y.

Davis Paper Company, West Hopkin- Ravenswood Paper Mill Co., Long

ton, N.H. Island City, N.Y.

Dresden Paper Mills Co., Dresden, River Raisin Paper Co., Monroe. Mich.

Ohio. Robertson Paper Box Co., Montville,

Elk Paper Mfg. Co., Childs, Md. Conn.

Fairfield Paper Co., Baltimore, Ohio. Schmidt & Ault Paper Co., York, Pa.

Federal Paper Board Co., Bogota, The Shenandoah Boxboard Corp., WinN.J. chester, Va.

Fibreboard Products, Inc., San Fran- Smeallie & Voorhees, Inc., Amsterdam,

cisco, Cal. N.Y.

Flemin.r & Sons, Inc., Dallas, Texas. W. W. Snyder Mfg. Co., Cohoes, N.Y.

Fort Orange Paper Company, Castle- Sutherland Paper Co., Kalamazoo,

t n on Hudson, N.Y. Mich.

Franklin Board & Paper Co., Frank- Tennessee Paper Mills, Chattanooga,

lini, Ohio. Tenn.

Frazr Paper Co., Ltd., Madawaska, Tcri Hlntc Paper Co.. Terre Haute,

Me. Ind.

Robert Gair Co., Inc., New York, N.Y. Toronto Paper Mfg. Co., Toronto,

Gardner-Richardson Co., Middletown, Ohio.

Ohio. United Paperboard Co., New York,

Hag-,ar Straw Board & Paper Co., Ce- N.Y.

darville, O hio. Upson Company. Lockport, N.Y.

Halltown Paper Board Co., Halltown, Waldorf Paper Products Co., St. Paul,

W.Va. Minn.

(3)
SECTION I-LABOR

1. Coilectice bargaining.-In conformity with the provisions of

Section 7 (a) of the National Industrial Recovery Act, the attitude

of this industry with respect to the labor of employees shall be as

follows:

(a) That employees shall have the right to organize and bargain

collectively through representatives of their own choosing, and shall

be free from the interference, restraint, or coercion of employers of

labor, or their agents, in the designation of such representatives or

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

of collective bargaining or other mutual aid or protection;

(b) 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, minimum rates of pay, and other conditions of employment,

approved or prescribed by the President.

(d) It is clearly understood that the foregoing does not impair

in any particular the constitutional rights of the employee and employer to bargain individually or collectively as may be mutually

satisfactory to them; nor does it impair the joint right of employer

and emploVee to operate an open shop.

(e) Nothing in this code is to prevent the selection, retention, and

advancement of employees on the basis of their individual merit,

without regard to their affiliation or nonaffiliation with any labor

organization.

2. Ma. imnm. worknq hours.-The maximum number of working

hous of all employees engaged in the production of paperboard

shall be eight hours a day and forty hours per week. Employees

may be employed for such additional hours in any week as shall

be necessary for maintenance of equipment, provided such additional

hours shall be permissible only with respect to employment on equipment which is not in operation.

Such maximum hours of labor shall not apply in cases of emergency for protection of property.

The provisions of this paragraph shall not apply to persons employed outside of the paperboard producing plant or premises, or

to foremen, superintendents, managers. officials, and other employees

heretofore compensated on a salary or fixed compensation basis.

3. inimein coinpensation.-(a) The minimum wage for all employees subject to the provisions of the foregoing paragraph 2 of

this code, who are compensated on a time or piecework basis, shall

be not less than 40 cents per hour, except in the case of mills located

in the South, the minimum shall be 30 cents per hour.

For the purpose of this paragraph, the South is defined as the

territory in the United States, south of the States of Virginia and

(4)
5

Kentucky, and east of the Mississippi River, and including the entire

State of Louisiana.

(b) The minimum compensation of all other employees of any

producer of paperboard in any department or branch of the business

shall be:

Not less than $15.00 per week in any city of over 500,000 population, or in the immediate trade area of such city;

Not less than $14.50 per week in any city of between 250,000

and 500,000 population, or in the immediate trade area of such

city;

Not less than $14.00 per week in any city of between 2,500 and

250,000 population, or in the immediate trade area of such city;

In towns of less than 2,500 population all wages shall be increased by not less than 20 percent, provided that this shall not

require wages ii excess of $12.00 per week.

(Population shall be based on the U.S. Census of 1930.)

(c) No person under 16 years of age shall be employed.

4. The provisions of Paragraphs 2 and 3 of this Code shall be

effective 15 days after approval of this Code or 15 days after the

labor provisions hereof shall be in force, whichever is the earlier

date.

SECTION II-COMPETITION

5. If the percentage of operation of any producer of paperboard

during any three months' period, beginning January 1, 19.3, while

this Code shall be in effect, shall be in excess of the industry percentage of operation during the same period, then the paperboard

producer operating in excess of the in(lustry percentage shall be

*5.00 per ton for each ton of paperboard produced as a result of

operations in excess of the industry percentage. The tlhre mionthis'

period shall include the smaller fraction of a week less than or more

than an exact three months. in order to avoid fractions of a week.

Any fractions of a week shall be added to or deducted from succeeding periods as necessary to avoid elimination or duplication of time.

6. The percentage of operation and the resulting tons upon which

such payment shall be based shall be determined as follows:

(a) The rated inch hours of a paper-board machine shall be the

width of the last drier in inches, multiplied for daily rating by 24

and for weekly rating by 144.

(b) The operated inch hours of a paper-board machine shall be

the number of hours of operation in any week, conunencing Saturday. 7: 00 a.m., multiplied by the width of the last drier in inches.

A shut-down of less than three hours shall not be deducted from the

period of operation.

(c) The percentage of operation for any period shall be the rated

weekly inch hours multiplied by the number of weeks of the period

for which the computation is made, divided into the total inch hours

actually operated during the same period.

(d) The Industry percent of operation shall be the sum of all the

rated inch hours divided into the actually operated inch hours of the

same machines, for which the audited record of operation is available

to the National Paperboard Association.

(e) For the purpose of determining the tons produced as a result

of operations in excess of the industry average, the tons produced per
6

inch hour during the quarterly period for which the computation is

made, shall be deemed to be the same for each inch hour operated

during the period.

(f) In case any producer of paperboard shall own or control under

recognized lease more than one paper-board machine, then the rated

inch hours and the inch hours operated of all paper-board machines

of such producer shall be combined for the purpose of determining

the operated percentage. In the case of a machine having three or

less cylinders, other than a machine operated on the production of

corruLgating materials, which shall not have actually operated at

least 25% capacity during aniy quarterly period, the rated inch hours

of such machine shall not be combined with the other inch hours of

the owner or lessee thereof, except upon approval of the Board of

Appeals referred to in Paragraph 20 hereof, and such Board of Appeals is hereby given the power to allow or refuse the combined

ratin thereof, or to allow partial rating. or to impose terms and

condition for combined rating, all as in the opinion of such Board

shall be proper.

7. Notwithstanding the foregoing provisions, any machine which

for the period, January 1, 1929, to May 31, 1933. shall have operated

in the production of paper board 1 less than 25 of the total fullrated inch-hours for such machine. then the rated intchi-hours to be

allowed for such machine shall b oiniy fifty percent of the full-rated

inch-hours.

8. Notwithstanding the above provisions, no rated inch-hours shall

be allowed for any machine which shall not have operated on the

production of paper board during the period, January 1, 1929, to

May 31, 1933, and all paper-board production from any such machine shall be subject to the tax of $5.00 per ton.

9. In the case of machines subject to combined rating as provided

in subdivision (f) of Paragraph 6 hereof, the combined. and not the

individual machine record for the purposes of full, partial. or no

inch-hour rating, shall govern.

10. In case a paper-board machine is transferred by sale or recognized lease, such machine shall have the same rated inch-hours in

the hands of the new owner or lessee as it had in the hands of the

party transferring' same, provided that the rated inch-hours of any

machine acquired by sale or lease on or after July 15. 1933. shall not

be combined with the rated inch-hours of the paper-board producer

acquiring same except upon the written approval and consent of the

Board of Appeals, and such Board of Appeals is hereby granted

the power to exclude from combined rating the rated inch-hours of

any such niachile so ac(lired, or to include less than all the inchhours in combined rating, and to impose such terms and conditions

to the -ranting of combined ratingr as in the opinion of such Board

shall be proper. Such Board in reaching its decision may take into

consideration all facts deemed by it to be pertinent, among others

the previous operating history of the machine acquired, its productive rate as compared with productive rates of machines with which

it is sought to be combined, all as in the opinion of the Board may be

necessary to prevent use of rights and privileges granted by subdivision (f) of Paragraph 6 in manner which will, in the opinion

of the Board, work hardship on or be unfair to other members of

the industry.
7

11. If a machine be removed from its present location to a new location in the United States, such removal shall not affect the rated

inch-hours otherwise applying to such machine.

12. No machine shall be included for inch-hour rating which, in

the opinion of the Board of Appeals, shall be deemed not to be in

condition for inclusion in good faith as an operative unit.

13. For the purpose of combined rating, a machine once rated shall

continue to be rated regardless of condition. The destruction, dismantling, or other cause making a machine unfit for operation while

included in the combined rating of the owner thereof (not lessee)

shall not operate to reduce the rated inch-hours to which such owner

shall otherwise be entitled.

14. No lease made on or after July 15, 1933, will be recognized or

change of rated inch-hours made on account thereof unless such

lease be for a period of not less than two years, and such lease shall

give the lessee the right to operate the paper-board machine and the

lessee has, by contract or otherwise, made provision for securing,

power and other essentials necessary for operation. Leases made

prior.to July 15, 1933, which shall be for a period of at least six

months, shall be recognized and the rated inch-hours of the machines

leased shall be transferred to the lessee, but in case any recognized

lease made prior to July 15, 1933, shall give the lessee the right to

renew, such lease shall not be recognized for the renewal period, unless the lessee shall exercise all available renewal options to the

extent that the same shall exist as may be necessary to qualify such

lease, the a mie as though it had been made subsequent to Julv 15, 1933.

In case a lease made subsequent to January 1, 1933, anl prior to

July 15, 1933, shall be for less than two years, then in case a new

lease for the same machine shall be made by the same lessee, comimencing oi termination of the existing lease, the term of the original

lease shall be counted as part of the term of the new lease for the

purposes of this paragraph. A provision in a lease granting right

to termination on termination of the Industrial Recovery Act or this

Code shall not affect the recognition of such lease.

15. No increase in rated inch-hours arising from transfers will be

recognized prior to 7:00 a.m. of the Saturday next followingz submission of duly executed documents of transfer to the Chairman of

the National Paperboard Association or such other person or persons

at any time hereafter designated by the Executive Committee of the

National Paperboard Association.

16. If any prodlucer of paper board in any three months' period.,

beginning January 1, 1933, to December 31, 1933, or in any three

months' period of any calendar year thereafter, during which this

Code shall be in force, shall operate less than the industry average,

such producer shall be entitled to credit for the deficiency with respect to operations in future quarters of the same year. 17. If a producer of paper board in any ({Iarter of a calelar year, beginning January 1, 1933, operates in excess of the industry average, so that a tax shall be due and payable hereunder, then such tax

shall be refunded to the extent that future operations in such calendar year shall be less than the industry average, so that the tax

as finally assessed shall be based upon the operations of a complete

calendar year.
8

18. In case any producer of paper board shall fail to comply with

the provisions of this Code with respect to the hours of labor and

wages, then such member shall pay a suni equivalent to the saving

of such member arising from noncompliance, pils fifty percent thereof, provided that nothing herein contained is intended to preclude

further action by the industry to require compliance with the labor

provisions of this Code by application to the President.

19. Any payments due under Paragraphs 5 and 18 shall be made

thirty days foIlowino the expiration of each quarter. The first payment due hereunder shall be November 1, 1933, or thirty days from

the date this Code is approved by the President, whichever shall be

later, based upon operations from April 1 to September 30, 1933.

The payment of any balance thereof due on account of operations

from January 1, 1933, to March 31, 1933, shall be postponed until

January 31, 1934, at which time final settlement shall be made according to the amount due, based upon operations for the entire

calendar year 1933. The tax and payments provided to be paid

under Paragraphs 5 and 18 hereof shall be paid to the Trustees

referred to in Paragraph 21 hereof.

20. A Board to be known as Board of Appeals is hereby created.

Such Board shall consist of three persons. One member of such

Board shall be selected by the Administrator appointed by the President under the National Recovery Act ; one member shall be selected

by the Executive Comimittee of the National Paperboard Association.

The third member, who shall act as Chairman of such Board, shall

be selected by the two Board members first appointed.

Such Board shall act as a board in all matters hereunder, including

action as T rustees, and the decision of the majority shall be the

decision of the Board.

In case a inember of the Board shall resign or die, his successor

shall be appointed in the same manner as herein provided for the

original appointment.

Any member of the Board may be removed without cause by the

person or persons who appointed such member.

The members of the Board as members thereof, and as Trustees,

may be paid a compensation, and such compensation shall be in such

aniount as may be determined by the Executive Committee of the

National Paperboard Association.

The compensation and all expenses of the Board as a Board and

as Trustees shall be a charge upon and paid from any tax ionies

collected hereunder, but in case tax funds shall be insufficient for

the purpose, such compensation and expenses shall be paid by the

National Paperboard Association.

21. In case any member of the industry shall feel that the provisions of this Code will work hardship owing to peculiar conditions

affecting such member, or by reason of the development of unforeseen

conditions, such member may make application in writing to the

Board of Appeals and the Chairman of the National Paperboard

Association, setting forth the grounds of the complaint and the relief

requested.

The Board of Appeals shall thereupon appoint a time and place to

hear such application.

The Board of Appeals shall be empowered to hear such application and, after hearing, to grant such relief to the applicant as, in
9

the opinivii of the Board. may be just and fair; provided that the

action of the Board of Appeals in connection with labor provisions

of this Code shall be deenmed reconmendations only, and stch recommen(lations shlall not relieve any member from the labor provisions

of this code. except upon the approval of the President.

Notice of such hearings shall be given by the Board to the applicant and all members of the industry.

The applicant may present such evidence and facts as to it shall

seem appropriate, all as in the judgment of the Board of Appeals

are material and relevant.

The Board of Appeals shall determine its own procedure and shall

render its decision in writing, setting forth the facts as found,

together with its conclusions.

The Chairman of the National Paperboard Association shall assist

the Board of Appeals in the conduct of the hearings and shall present further facts on behalf of the applicant and/or the industry

and/or any member thereof, as to the Chairman of [he Association

seems appropriate, provided the same shall, in the opinion of the

Board be material and proper.

The Chairman of the National Paperboard Association may. and

upon instructions from the Board of Appeals shall, appoint one or

more members of the National Paperboard Association to represent

the industry in hearings before the Board of Appeals.

The Board shall forward to all members of the industry a summarv of its decision and a copy of the findings. The c miplete findings and decision of the Board shall be fuim-ished to any mu'mber

upon request.

The decision of the Board of Appeals shall be binding upon the

applicant and the industry, provided that nothing herein c ntainmod

shall preclude an applicant from thereafter makinQ appl;cation or

such representation to the President as in the opinion of the a)plicant is proper.

No application shall be made by any member to the President for

relief from the terms of this Code until the proceedings set forth in

this paragraph shall have been taken and complied with.

22. In case any member or members shall believe that any other

member is carrying on business unfairly, improperly, or in a inamier

prejudicial to the interest of the industry, or in violation of the terms

and conditions of this Code, such member may file a complaint with

the Board of Appeals. Such complaint shall set forth the action

complained of. The Board of Appeals shall thereupon make such

investigation as in its opinion is proper. rantin, to the member

complained against full opportunity to submit facts and evidence in1

its behalf.

If, in the opinion of such Board, the member complained of is

conducting business unfairly, inproperly, or in violation of the

terms of this Code, then such Board is hereby authorized to, and

shall, make such representation to the President and request such

relief as, in the opinion of the Board, is proper in the premises.

No member of the industry shall file a complaint or request action

by the President against any other member until the proceedings in

this paragraph set forth shall have been taken.

23. The tax and all payments provided herein to be paid (except

dues to the National Paperboard Association) shall be paid to the
10

persons who shall be the Board of Appeals, as Trustees, and the

members of such Board as Trustees are hereby granted power to

collect the tax and other payments provided to be paid under Sections

5 and 18 hereof, and to hold. invest, and pay the proceeds thereof

as herein provided.

Any fmids coming into the hands of the Board of Appeals as

Tritees shall be invested by the Trustees in securities of the Government of the United States and not otherwise.

The Trustees are hereby authorized to collect the income from such

funds and to expend the principal and income of such funds for:

(A) The payment of compensation of the Board of Appeals and

expenses of such Board, as a Board and as Trustees, and

(B) The purchase of paperboard producing plants and machines,

paying therefor such amount as in the opinion of the Trustees is

proper.

The said Trustees may dismantle or scrap any paperboard machines so acquired by them, and may sell and dispose of the other

parts of any such property so acquired at such price and upon such

terms and credit as in the discretion and judgment of the Trustees

shall be proper.

The Trustees are authorized to lease paperboard-producing properties, and to pay such rental or consideration therefor as, in the

opinion of the Trustees, shall be proper. provided that no lease

shall be made which shall extend beyond the period that this Code

shall remain in force.

The purpose in granting such power to lease is to relieve the

industry of excess capacity without permanently withdrawing same

from the industry.

It is the further purpose hereof to grant to the Trustees power to

assist owners of properties through the period of the depression.

The Board, in exercising the powers herein granted to purchase

ndl lease, shall give recognition to geographical locations and competitive conditions, and shall proceed in a manner as shall, in its

opinion, be fair, just, and equitable and to the best interest of the

industry as a whole, and in a manner which will avoid special benefit

or advantage to any member, group, or subdivision of the industry, without re-ard to the source of the tax funds.

The Executive Committee of the National Paperboard Association

may ap))oinit an Advisory Committee to cooperate with the Trustees

in the selection of properties for purchase and lease and the Board of

Appeals shall not take action until it shall have afforded full opportunity to the Advisory Committee to submit its recommendations.

The Trustees in the expenditure of said fund shall advise with the

agents of the President authorized to admiiinister the National In-

(lustrial Recovery Act, and shall not exercise any powers herein

granted in a manner which shall be contrary to any orders, regulations, or directions of the President.

If, upon the termination of this Code, any paperboard-producing

plants are held by such trustees, such plants shall be disposed of by

the Trustees at such prices and upon such terms, at either public

or private sale, as in the (discretion of the Trustees shall seem proper

The proceeds of such sale, together with any other funds or property, which shall be or shall come into the hands of the Trustees
11

hereunder, shall be paid to the National Paperboard Association and

become a part of the general funds of such Association.

24. No member of this industry shall sell its product for more

than a fair and reasonable price.

Each member will, upon request of the Board of Appeals, submit

facts as to selling prices, together with costs and all pertinent facts

as may be necessary to permit opinion on the part of the Board of

Appeals as to the fairness and reasonableness of the prices being

charged.

Whenever, in the opinion of the Board of Appeals, any member is

charging prices which are unfair and unreasonable, the Board of

Appeals shall report all the facts and circumstances to the President.

The Board of Appeals shall file such reports and furnish such

data to the President as shall be requested by the President.

Each member shall submit to such rules and regulations in the

premises as may be issued by the President.

25. If the tax of $5.00 per ton referred to in Paragraph 5 hereof is

found to be insufficient as a deterrent to unsound merchandising and

harmful price demoralization, or if such tax is found to be tO large

as to constitute a prohibition against operations in excess of industry

average, then the amount of the tax may be increased or decreased

as may be necessary to make effective the purposes hereof.

Increase in tax shall be by vote of the producers of paper board

subject to this code, who shall be a majority in numbers and volume,

but no such increase shall be effective unless the same shall be

approved by the Board of Appeals.

Decrease may be effected by either the Board of Appeals or by

vote of the producers of paper board subject to this code, who shall

be a majority in numbers and volume.

SVolume , for the purposes of this paragraph, shall be the total

tons produced by the paper-board producers subject to this code

during the preceding calendar year. An increase in the tax shall

not be made retroactive, but a decrease therein may be made retroactive.

26. Every producer of paper board shall promptly and correctly

furnish each week to the National Paperboard Association, data and

information as to its operations, together with all facts as may be

necessary hereunder. Full reports as to rated inch hours, and operated inch hours of individual paper-board producers. together

with the industry average based upon the data so furnished, shall

be distributed weekly by the National Paperboard Association to

all producers of paper board. All measurements and operating

time and records shall be subject to audit by the National Paperboard Association through auditors selected by the Executive Committee of such Association.

27. Every producer of paper board, so long as this code remains

in force, shall pay as dues to the National Paperboard Association

on account of the expenses of such Association, its pro-rata share

thereof, computed on a tonnage basis.

28. Paper board, for the purposes of this code, shall be all paper having a thickness of 12/1000 or more of an inch, and also paper of a lesser thickness known as "lightweight chip ", and also paper of a lesser thickness manufactured for use as corrugating material
12

and/or container board, and also specialties not classified as paper

according to trade custom.

29. This code shall include the producers of paper board, which

consume the board produced, either as fabricators or otherwise, and

is not limited to the producers of paper board produced to be sold

as such.

30. This code shall not apply to the employees or operations in

the fabricating of paper board, and fabricating is specifically

exelmpted herefrom, notwithstanding that a producer of paper board

iay also be a fabricator thereof.

:1. In the case of any machine, the rated inch hours of which

shall be recognized and included as a plaper-board producing unit

hereunder, all of the operating time of such machine shall be included for the purpose of deterininini the percentage of operations

11nder this code, irrespective of the 1)roduct produced, provided such

ad judtments, rules, or regulations may be made in connection therewith bv the Board of Appeals as shall be equitable and proper in

the premises.

-2 Tbis code shall inure to the benefit of and be binding upon

all producers of paper board.

33. This code shall be construed according to its intent inl order

that the plirposes hereof may be effective and unfairness and injustice avoided.

34. Modifications of this code may be submitted to the PrIesidelt

at any tunie, and from i tile to time, upon vote of the paper-board

p)r(lucers Who Shlall I e a mitaj mrity In num111 bers and v itul e subject

Iluoved l)y the PIes hr'eto, ident, a i I cii ii ia i. wIIeuI p 

*liall iereupon bec()m ie a 1)art (f tlis e he.

35. Iliis IiiaV b('l) Ie nice' Ie, al1 ten iiilated at anY iie. after

foir liuutil fr)II ie (I'I (1 tife alfl;roVal lherexof, iI OIl vote of a

majority in lnullibers a1d VohullIe of tle 1)i,(l)1tr~s Of paper board

sUbject hereto. provide 1 no >ulch rnnellatin shall be effective until

Ilot1(e of calicell at16 in Writinjg is file(1 wit li the -Natinal Recover\

Sllilui-tiait !in ed LVi Illjv ail( tij representatives of tie

i~atio a1 Pat erbir Assoc aOIt i. touet lier Nx It written statement

y sll(lh repre-elitativ(&> ti'aIt tke jW'1%0V1, Voill( foi. scli callccllatioli

Ij We}reIIt a Ila (ltriy ill nuiln e'rn- ind v( little of 1 lv-boa ') rd I 1-

dllcels subject hereto, uccordini t( knowledge and infor ation of

slhl repIresentatives of the National Paperboard Association, based

upon examination of the re ords :nd data of the National Paperboard ASOt'iation.

3,i. Ihe President mnay front tine to time cancel or modify this

COd(e pursant to the provisions of subdivision (b) of Secti*on 10

of the National Industrial Recovery Act.

D, ted July 24. 1933.

UNIVERSITY OF FLORIDA

3 1262 08728 7032