UNIVERSITY OF FLORIDA 

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3 1262 08482 9851 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

OCEAN PEARL BUTTON 

AND NOVELTY MANUFACTURERS 

INDUSTRY 

AS SUBMITTED ON AUGUST 14, 1933 

REGISTRY No. 1009-1-03 

The Code for the 

Ocean Pearl Button and Novelty Manufacturers 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 

WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1933 

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OCEAN PEARL BUTTON AND NOVELTY MFGRS. ASS'N. 

ARTICLE ONE 

This Code is adopted pursuant to title I of the National Industrial 

Recovery Act and its purpose is to effectuate the policy of the said 

title of the said act insofar as it is applicable to the industry. 

ARTicLE Two 

(a) " Ocean Pearl " as used herein is defined to include all types 

of shells gathered in or raised from salt water. 

(b) "Ocean pearl products" as used herein is defined to include 

all articles of commerce manufactured from ocean pearl shells, specifically including such articles as buttons, slides, buckles, novelties, 

and trimmings. 

(c) " Person " as used herein is defined to include any person, 

firm, partnership, or corporation engaged in the manufacture and 

sale of ocean-pearl products in interstate or foreign commerce as 

defined in section 7 (d) of the National Industrial Recovery Act. 

(d) "Effective date" as used herein is defined to be the tenth 

day following approval of this Code by the President. 

(e) "Association" as used herein is defined to be the Ocean Pearl 

Button and Novelty Manufacturers' Association. 

(f) "Executive Committee" as used herein is defined to be the 

executive committee of the Ocean Pearl Button and Novelty Manufacturers' Association. 

(g) "President" as used herein is defined to be the President 

of the United States. 

ARTICLE THREE 

(a) Any person in the industry who shall comply with the provisions of the Code shall be entitled to participate in its benefits upon 

the terms and conditions 8et forth therein and upon the payment as 

a Code fee of his proportionate share of the amounts necessary to 

effectuate the declared purposes thereof and by membership in the 

Association. 

(b) The provisions of this Code shall not be so interpreted or 

administered as to eliminate or oppress small enterprises or to 

discriminate against them. 

(c) This Code is not designed to promote monopolies and shall 

not be availed of for that purpose. 

ARTICLE FoUR 

(a) The executive committee of the association or such ucces or 

committee as may hereafter be constituted by the action of th aid 

8661--33 (1) 
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association is established and empowered to act as the Emergency 

National Committee of the Ocean Pearl Industry. The powers and 

dutie of such committee shall be those of a general planning and 

coordinating agency for the industry. 

(b) It shall gather such statistic as it may deem necessary, an l it 

may call upon and require information and reports, which shall be 

subject to checking for the purpo e of verification by an examination 

of the books and accounts and records of the person submitting the 

same by .any person designated by the committee and shall be so 

checked by such person, if the committee shall require it, to enable 

it not only to make the findings required by this code but, when the 

re trictions herein provided are in force, to know the extent to which 

such re trictions are operative and who are violating the rules and 

regulations and, if upon any such examination any such information shall be shown to have been made willfully incorrect in 

any material respect, the cost of such examination shall be paid by 

th member of the code which furnished such information. 

(c) It shall issue and enforce such rules, regulations, and interpretations, including trade practices; impose upon persons subject to 

this code such restrictions as may be necessary to effectuate the purposes and enforce the pro vi ions of this code; and it shall .aid the 

President in the administration of this code and of the National 

Industrial Recovery Act. 

ARTicLE FrvE 

On and after the effective date no person shall operate on a schedule of hours of labor for his employee (with the exception of executives, engineers, repair-shop crew , office and supervisory staff, stock 

clerks, shipping clerks, and watchmen) in excess of forty hours in 

any one week; nor shall any person operate any productive machine, 

on ocean pearl products, in excess of forty hours in any one week, 

except, however, that in the production of those articles of the industry which are sea onal, because of the style or pattern factor, a 

person may oper.ate a productive machine in excess of forty hours in 

any one week, but not in any event to exceed an aggregate of 2,080 

machine hours in any one year. 

ARTICLE Srx 

(a) Persons under the age of sixteen years shall not be employed 

in the industry. 

(b) The minimum rate of pay for employees shall be at the rate of 

thirty cents per hour and the minimum rate of pay for employees on 

piecework sh.all be equal in fact to such minimum rate. 

(c) No process (in whole or in part) in the production of the 

products of the industry shall be performed directly or indirectly 

outside the premises of a factory immediately controlled by any person unless such process be performed wholly in compliance with the 

minimum wage, maximum hours, and other provisions of this code. 

(d) During the period of apprenticeship, which shall not, however, exceed a maximum of six months, apprentices and learners 

shall be excepted from such rates of pay, but such learners and apprentices shall not at any time exceed in number a maximum of 20% 
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of the number of I roductive workers who come within the above 

schedule of minimum rates of pay, except in such case where a person 

actually moves productive machinery from one locality to another, 

but in no event shall the period of apprenticeship exceed a maximum 

of six months. 

ARTICLE SEVEN 

(a) Employees shall have the right to organize and bargain collectively through representatives of their own choosing and shall be 

free from interference, restraint, or coercion of employers of labor, 

or their agents, in the designation of such representatives or in selforganization or in othert concerted activities for the purpose of collective bargaining or other mutual aid or protection (Sec. 7(a) 1 of 

N.I.R.A.). 

(b) 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 (Sec. 7 (a) 2 of N.I.R.A.). 

(c) All persons shall com ply with the maxim urn honrs of labor, 

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

or prescribed by the President (Sec. 7 (a) 3 of N.I.R.A.). 

(d) Nothing contained herein is to prevent the selection, retention, and advancement of employees on the basis of their individual 

merit, without regard to their affiliation with any labor organization. 

ARTICLE EIGHT 

(a) To effectuate the purposes of this code of fair competition in 

respect of minimum wages of labor and maximum hours of employment, each person shall provide the Executive Committee or any 

agent properly designated by it with a true statement of his costs 

of production for each class of ocean-pearl products, in such form 

and at such times as the Committee may prescribe. 

(b) From such statements of costs the Executive Committee shall 

establish a weighted average cost of production for each class of 

such ocean-pearl products, and sale of any such ocean-pearl products 

by any person below such cost shall constitute unfair competition 

and a violation of this code. 

(c) Exceptions shall be provided to the extent necessary to prevent unfair operation of the foregoing provisions in exceptional 

cases. 

ARTICLE NINE 

(a) No person shall make a sale of any ocean-pearl product on 

terms other than 1% 10 days, net 30 days, E.O.M. plus 6% per 

annum thereafter, which are defined as follows: On invoic s dated 

from the 1st to the 24th, inclusive, in any month, a cash di count of 

1% may be allowed on payment of such invoices on or before the 

lOth of the month following. No cash discount shall be allow d 

on any invoices paid after such tenth of the month. 

(b) Invoices not paid on or before the 30th of any month following 

the month of invoice date shall be ubject to interest at the rate of 

6% per year from such 30th day. 
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(c) Invoices shall be dated as of the day of shipment except that 

shipments made between the 25th and the last day of any month may 

be given dating as of the first of the month following. 

(d) When made by mail the day of payment shall be the day o:f 

postmark. 

(e) A person may make free delivery from any place of shipment 

to the Greater City of New York and to the City of Philadelphia, 

but delivery to all other points shall be at the expense of the customer 

from such person's usual places of shipment not to exceed two in 

number. 

ARTICLE TEN 

No person subject to this code shall make any contract of sale 

of any ocean-pearl product by the terms of which the shipment of 

such product is not required to be completed within three months of 

the making of such contract. 

(b) A sale made or any act performed by any person subject to 

this code indirectly through any affiliated company of such person 

shall be deemed a sale made or an act performed by such person. 

ARTICLE ELEVEN 

(a) No person subject to this code shall make any oral or written 

contract for the sale of ocean-pearl products containing price protection clauses either as to decline or increase in price of such 

products. 

(b) No person shall promise or make to any purchaser of any 

ocean-pearl product, or to any officer, agent, representative, or employee thereof, any gratuity, gift, remuneration, or any commission 

or part thereof, directly or indirectly. 

(c) No person shall make any sale or contract of sale of any 

ocean-pearl product under any description which does not describe 

such product in terms customarily used in the industry. 

ARTICLE TWELVE 

The executive committee shall secure current information concerning the competition in domestic markets of imported ocean-pearl 

products and if it shall find that such products are being imported 

into the United States in substantial quantities or in increasing ratio 

to domestic production or under such conditions to render ineffective, 

or serously to endanger the maintenance of this code, it shall complain to the President pursuant to the provisions of section 3 (e) 

of the National Industrial Recovery Act and petition for suitable 

restrictions on the importation of such ocean-pearl products. 

ARTICLE THIRTEEN 

The following specified practices are hereby held to be unbusinesslike, unethical, discriminatory among customers, and violations of 

the letter and the spirit of said act and said code and, if engaged in, 

will be dealt with as provided in Article Eighteen: 

(a) Variations from the open and publicly announced prices and 

terms, including (but without limiting the generality of this clause) 
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the following: Special allowance by way of secret rebates, discounts, 

brokerage, stora<Ye, or advertising; variations from the openly announced grade of package differentials; delayed billings; full or partial discounts in cases of delayed payment; and any other allowances 

by any name or of any nature. 

(b) Acceptances of orders at old prices following the announcement of price changes. 

(c) Unannounced concessions in price based on quality of material not actually substandard. 

(d) Making combination sales whereby an order is obtained or 

sale made for a commodity on conditions or upon promise or understanding that any other commodity will be sold or delivered to the 

buyer, directly or indirectly, at a price or at prices under the prevailing market for either or any of the commodities involved. 

(e) Payments of brokerage when any part thereof enures to the 

benefit of the purchaser. 

(f) Payment for storage in customer's warehouses on goods purchased by such customer. 

(g) Consignment stocks made to other than accredited agents. 

ARTICLE FoURTEEN 

The executive committee shall provide a standard form of sales 

contract for the use of persons subject to this code. 

ARTICLE FIFTEEN 

Subject to Article Sixteen, in order to effectuate the purposes of the 

National Industrial Recovery Act, supplementary provisions and/ or 

amendements of this code may be submitted from time to time for 

the approval of the President. 

ARTICLE SIXTEEN 

This code and all the provisions thereof are subject to cancellation 

or modification, as the President may determine from time to time 

as prescribed in Section 10 (b) of the Act. 

ARTICLE SEVENTEEN 

If any provision of this code is declared invalid or unenforceable, 

the remaining provisions shall nevertheless continue in full force and 

effect, the same as if they had been separately presented for approval 

and approved by the President. 

ARTICLE EIGHTEEN 

In the event that any person subject to this code shall knowingly 

or wilfully engage in any practice or practices which in the judgment of the association are a violation of the N .I.R.A. and/ or this 

code, the same shall be reported in the necessary detail to the Administrator of said act for due process of law as provided in said act. 

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