.Approved Code No. 176 Registry No. 405-3-07 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

PAPER DISTRIBUTING 

TRADE 

AS APPROVED ON DECEMBI!:R 23, 1933 

o- -_:_:_- I A t : ----

BY l 

PRESIDENT ROOSEVEL'D' 

WE DO OUR PART 

1. Executive Order 

2. Letter of Transmittal 

a. Code 

UNITED STATES 

GO RNMENT PRINTING OFFICE 

WASHINGTON : 1933 

l'CII' IBle by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents 

V 
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 

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Boston, Mass. : 1801 Customl1ouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

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Cleveland, Ohio : Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

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San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Building . 
Approved Code No. 176 

CODE OF FAIR COMPETITION 

For The 

PAPER DISTRIBUTING TRADE 

As Approved on December 23, 1933 

By 

PRESIDENT ROOSEVELT 

Executive Order 

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 my approval of a Code 

of Fair Competition for the Paper Distributing Trade, and hearings 

having been held thereon and the Administrator having rendered 

his report containing an analysis of the said Code of Fair Competition together with his recommendations and findings with respect 

thereto, and the Administrator having found that the said Code of 

Fair Competition complies in all respects with the pertinent provisions of Title I of said Act and that the requirements of clauses 

(1) and (2) of subsection (a) of Section 3 of the said Act have been 

met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of 

the United States, pursuant to the authority vested in me by Title I 

of the National Industrial Recovery Act, approved June 16, 1933, 

and otherwise, do adopt and a pp rove the report, recommendations, 

and findings of the Administrator and do order that the said Code 

of Fair Competition be, and it is hereby, approved. 

Approval recommended: 

HUGH S. JOHNSON, 

Administrator. 

THE WHITE HousE, 

FRANKLIN D. ROOSEVELT. 

December 1£3, 1933. 

27203°-244-226-83 . (375) 
DECEMBER 20, 1933. 

The PRESIDENT, 

The White House. 

Srn: This is a report of the hearing on the Code of Fair Competition for the Paper Distributing Trade conducted in ,v ashington on September 28, 1933, in accordance with the provisions of 

Title I of the National Industrial Recovery Act. 

The Code contains a provision that in the event that a general 

Wholesale Trade Code shall be approved~ t1tUs Code shall automatically become a divisional code thereunder. 

HOURS AND WAGES 

The Code provides :for a standard forty-hour week for all employees except watchmen, outside delivery men, and executives, with 

a provision for not more than eight extra hours in a week for which 

time and one third shall be paid. 

Practically all of the employees o:f this Trade are of the warehouse and office class, and are paid on a weekly basis. This minimum wage under the Code will be from $14.00 to $15.00, depending on the size o:f the city in which the employer's business is 

situated. 

A minimum wage of 371⁄2¢ :for men and 34¢ for women is prescribed for about 100 employees engaged in incidental processing 

who are employed on an hourly basis. 

OTHER PROVISIONS 

Provision is made for the Code Authority to file such reports 

with the Administrator as he may require, for the establishment of 

a uniform accounting and costing system, for the open publication 

of prices and adherence thereto, and for the prohibition of specific 

unfair trade practices. 

ECONOMIC EFFECT OF THE CODE 

The business of this Trade is the wholesale distribution of paper 

and paper products. It comprises about 1,000 establishments and 

employs approximately 20,000 persons. The Code reduces maximum 

hours from about 49 to 40, and increases minimum wages. No fiO'-

ures are available as to employment in 1929 but the Trade estimates 

that the Code will increase employment by about 15% and restore it 

to approximately the 1929 level. 

FIND! :ros 

The Administrator finds that: 

(a) The Code as recommended complies in all re pects with the 

pertinent provisions of Title I of th Act, including without limitation, subsection (a) of Section 7 and sub ection (b) of Section 10 

hereof; and that 

(376) 
377 

(b) The applicant group imposes no inequitable restrictions on 

admission to membership therein and is truly representative of the 

Paper Distributing Trade; and that 

( c) The Code as recommended is not designed to promote monopolies or to eliminate or oppress small enterprises and will not operate 

to discriminate against them, and will tend to effectuate the policy of 

Title I of the National Industrial Recovery Act. 

It is recommended, therefore, that this Code be approved. 

Respectfully submitted. 

HUGH s. JOHNSON' 

Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

PAPER DISTRIBUTING TRADE 

ARTICLE I 

To effectuate the policies of Title I of the National Industrial Recovery Act the following is hereby submitted as a code of fair competition for the paper distributing trade, and upon approval by ~he 

President its provisions shall be the standards of fair competit10n 

for such trade and shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

Tracle.-The business of distribution by "wholesalers" or "distributors" of any or all lines of paper and paper products in the 

United States, its territories and possessions, with the incidental 

processing of such products usual and ordinary in such trade. A 

"wholesaler" or " distributor" for the purpose of this code shall be 

defined as a person or firm, or a definitely organized division thereof, 

which buys and maintains at his or its place of business a stock of the 

lines of merchandise which it distributes, or which although not 

maintaining such stock buys such merchandise and in the sales thereof 

assumes credit risk; and which through salesmen, advertising and/ or 

sales promotion devices sells to retailers and/ or institutional, commercial and/ or industrial users, but which does not sell in significant 

amounts to ultimate consumers. 

M ember.-A natural person, partnership, corporation, association, trust, trustee, trustee in bankruptcy, or receiver engaged in 

such trade. 

Ultinia.te Oonsumer.-The term "ultimate consumer" as used 

herein is defined as a purchaser for home and personal use and not 

for use or consumption in trade _or business or by institutions. Eniployee.-The term "employee" as used herein includes anyone 

engaged in the trade in any capacity receiving compensation for his 

services, irrespective of the nature or method of payment of 1:,uch 

com pens a ti on. 

Employer.-The term " employer " as used herein includes anyone 

by whom such employee is compensated or employed. 

President, Act, Acl1ninisfrator.-The tenn ' President", "Act", 

and "Administrator" as used herein shall mean, respectively, the 

President of the United States, the National Industrial Recovery 

Act, and Administrator appointed under Title I of said Act. 

Association.-The ational Paper Trade A sociation of the United 

States. 

Population for the purposes of this Code shall be determined by 

reference to the 1930 Federal Census. 

ARTICLE III-SUBORDI.r ATIO 

1. If and when a General Code for the "'\Vholesaling or Distributing Trade, hereinafter referred to as the General Code, shall have 

(378) 
879 

been approved by the President and shall become effective, this Code 

shall become subordinate to such General Code and shall be deemed 

a supplemental Code for the Paper and Paper Products Commodity 

Division thereunder. 

2. Such General Code shall, when so approved, be recognized as 

binding in this Trade upon all the members thereof, and the Code 

Authority designated in this Code shall constitute the Divisional 

Code Authority for the Paper and Paper Products Commodity Division under the General Code, and shall have the powers prescribed 

for such Divisional Code Authority in the General Code. 

3. In the event that any provision of this Code shall be found to be 

inconsistent with the provisions of such General Code, the provisions 

of such General Code shall prevail ( except as to the maximum hours 

and minimum wages herein prescribed which are more favorable to 

the em;ployee), and this Code shall be deemed to have been modified 

accordmgly. 

ARTICLE IV-ADMINISTRATION 

1. The creation of a Code Authorit:y to cooperate with the Administrator in administering the provisions of this code is hereby 

authorized. 

2. The Code Authority shall be composed of seven members selected by the Board of Directors of the Association with a view to 

geographical representation, two additional members selected by the 

members of the trade who are not members of the Association but 

who assent to this code and who agree to comply with the requirements thereof and to sustain their reasonable share of the proper 

expenses of its administration in an equitable way with the approval 

of the Administrator ( or such two members may be selected by the 

Administrator), and not more than three members designated by the 

Administrator who shall act in an advisory capacity without vote. 

3. (a) The Association shall ( 1) impose no inequitable restrictions on membership, and (2) submit to the Administrator true 

copies of its articles of Association, bylaws, regulations, and amendments thereof when made, together with such information as to 

membership, organization, and activities, which the Administrator 

may deem necessary to effectuate the purposes of the Act. 

(b) In order that the Code Authority shall at all times be truly 

representative of the trade and in other respects comply with the 

provisions of the Act, the Administrator may provide such hearings 

as he may deem proper; and thereafter if he shall find that the Code 

Authority is not truly representative or does not in any other respect 

comply with the provisions of the Act, may require an appropriate 

modification in the method of selection of such Code Authority. 

4. Members of the trade shall be entitled to participate in and 

share the benefits of the activities of the Code Authority by assenting 

to and complying with the requirements of this Code and sustaining 

their reasonable share of the proper expenses of its administration. 

Such reasonable share of the proper expenses of its administration 

shall be determined by the Code Authority, subject to review by the 

Administrator, and shall be collected by the Code Authority from 

the members of the Trade. 
380 

5. Powers of the Code Authority: The Code Authority (1> 

shall require from members of the Trade such reports as are necessary to effectuate the purposes of this Code, and (2) may upon its 

own motion or upon complaint of any member of the Trade make 

investigation as to the functioning and observance of any provisions 

of this Code, and (3) may hear and attempt to adjust such complaints\ and report any violation of the Code to the Administrator_., 

and (4J may from time to time appoint such committees as it shall 

deem necessary or proper with a view to geographical requirements, 

make rules and regulations for the organization and functioning ot 

such committees which shall be known as Regional Committees, and 

delegate to any such committee or conunittees O'enerally or in particular instances such of its powers under the cfode as it shall deem 

necessary or proper, subject to the approval of any actions of the 

said Regional Committee or committees by the Code Authority, and 

( 5) shall generally administer this Code under the sanction and with 

the approval of the Administrator. 

6. All acts of the Code Authority shall be subject to review by 

the Administrator and to suspension, modification, or cancellation 

by him in any case in which he shall determine such act violates the 

purposes of the National Industrial Recovery Act. 

7. The Administrator may from time to time after consultation 

with the Code Authority issue such administrative il,terpretations 

of the various provisions of this Code as are necessary to effectuate 

their purpose. 

ARTICLE V-HOURS 

1. Employees engaged in the Trade shall not be required or permitted to work hours in excess of the limits prescribed in the following schedule: 

SCHEDULE OF WORKING HOURS 

(a) Watchmen : 56 hours per week but not more than six days in 

any one week. 

(b) Outside deliverymen: 91⁄2 hours in any one day and 48 hours 

in any one week; provided, however, that time worked in excess of 

91⁄2 hours in any one day and 48 hours in any one week shall be 

overtime and shall be paid for at not less than time and one third, 

and no such employee shall work over 4 hours overtime in any one 

week. 

( c) Executives and their personal secretaries and other employees 

regularly engaged in a supervisory capacity receiving $35 or more 

~r week, and outside salesmen : no limitation. 

(d) All other employees: 8 hours in any one day and 40 hours 

in any one week; provided, however, that time worked in excess of 

8 hours in any one day and 40 hours in any one week shall be overtime and shall be paid for at not less than time and one third. and 

no such employee shall work over 8 hours overtime in any one week. 

Provided, however, that no limitation on hours of work contained 

in said schedule shall apply to employees of any class when enga~ed 

in emergency repairs or emergency maintenance work involving 

break-downs or protection of life and property, in which case time 

and one third shall be paid for hours worked in excess of the said 

schedule. 
381 

ARTICLE v1-vv AGEs 

1. The minimum rates of pay shall be as follows: 

(a) In cities of over five hundred thousand population or in the 

immediate trade area thereof at the rate of $15 per week. 

(b) In cities of between two hundred fifty thousand and five 

hundred thousand population or in the immediate trade area thereof 

at the rate of $14.50 per week. 

( c) In cities, towns, or places under two hundred fifty thousand 

population or in the immediate trade area thereof at the rate of 

$14 per week. 

( d) The aforementioned minimum rates of pay shall be the minimum rates of pay for a 40-hour week, except for the employees 

specified under subdivision (b) of Section 1 of Article V hereof, and 

for such employees said minimum rates of pay shall be the minimum 

rates of pay for a ·48-hour week. 

(e) In the case of employees on an hourly, part-time, or piecework basis, at a rate which will not yield less for a full week than 

the minimum rate of weekly pay above prescribed. 

(f) In the case of employees continuously engaged in a mechanical or factory operation at the rate of $0.371⁄2 per hour for male 

employees, and $0.34 per hour for female employees. 

2. Office boys and girls between the ages of sixteen ( 16) and 

eighteen (18) years•inclusive may be paid at the rate of not less than 

80% of the minimums above mentioned otherwise applicable to them. 

The number of employees classified as office boys and girls shall not 

exceed 3% of the total number of employees of any employer provided that every employer having. at least ten (10) employe~s shall 

be entitled in any event to one office boy or girl hereunder. 

3. A person whose earning capacity is limited because of age or 

physical or mental handicap may be employed at light work at a. 

wage of not less than 80% of the minimun1 prescribed by this Code 

provided the State Authority 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 employed by him. The provision of this section requiring a certificate of authority shall not 

become effective until sixty (60) days after the effective date of this 

Code. 

4. Female employees performing substantially the same work as 

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

The Code Authority shall within ninety (90) days after the effective 

elate of this Code file with the Administrator a description of all 

occupations in the Industry in which both men and women are 

employed. 

5. The wage rates of all employees receiving more than the minimum rates herein prescribed shall be reviewed, and such adjustments, if any, made therein as are equitable in the light of all the 

circumstances, and within sixty (60) days after the effective date 

hereof the Code Authority shall report to the Administrator the 

action taken by all members of the Trade under this Section. 

6. Every employer shall make reasonable provisions for the safety 

and health of his employees at the place and during the hours o-f 

their employment. Standards for safety and health shall be sub-
382 

mitted by the Code Authority to the Administrator within six (6) 

months after the effective date of this Code . 

.ARTICLE VII-GENERAL LABOR PROVISIONS 

1. No person under 16 years of age shall be employed by any 

member of the Trade (provided, however, that where permitted by 

law persons between 14 and 16 years of age may be employed not in 

manufacturing or mechanical departments not to exceed three hours 

per day and those hours between 7 A.M. and 7 P.M. in such work 

as will not interfere with hours of day school), nor any one under 

is years of age at operations or occupations hazardous in nature. 

The Code Authority shall submit to the Administrator within 60 

days from the effective date hereof a list of such occupations. In 

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

provision if he shall have on file a certificate or permit duly issued 

by the Authority in such State empowered to issue employment or 

age certificates or permits showing that the employee is of the 

required age. 

2. (a) 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 o:f such representatives or 

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

of collective bargaining or other mutual aid or protection. 

(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, and · (c) Employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions of employment, approved or prescribed by the President. 

3. ,iVithin each State this Code shall not supersede any laws of 

such State imposing more stringent requirements on employers regulating the age of employees, wages, hours of work, or health, fire, 

or general working conditions than under this Code. 

4. Employers shall not reclassify employees or duties of occupations performed by employees so as to defeat the purposes of the Act. 

5. Each employer shall keep posted in conspicuous places accessible to employees the labor provisions of this Code. 

ARTICLE VIII-Acoou NTING, SELLING 

1. The Code Authority shall, as soon as practicable formulate a 

standard method of accounting and costing for the Trade and submit the same to the Administrator. When it shall have been approved by the Administrator, every member of the Trade shall use 

an accounting and costing system which conforms to the principles 

of, and is at least as detailed and complete as suc:b ~tandard method. 

2. (a) In any geographical region in which the Code Authority 

in its discretion believes the condition of competition in any article 

or articles of merchandise to require it, the Code Authority may by 

order put into effect a price reporting plan. Such plan shall be 

administered through a Regional Committee appointed as provided 

in Section 5 of Article IV hereof. Notice of such order shall be sent 
383 

to every known member of the Trade selling the article or articles 

specified in said order in the said geographical region. Every member of the Trade selling such articles in such geographical region may 

at its option within the time specified by the Code Authority in 

said order file with the Regional Committee a list showing the current prices and terms and conditions of sale ( including all differentials, discounts, trade allowances and special charges), of such arti .. cles offered for sale by such member in such region. Such member 

of the trade may from time to time file revisions of its price list J 

a revision, however, shall not be effective until 5 days after the 

same shall have been filed, unless a shorter period be permitted by 

the Regional Committee. ,vhen any member of the Trade shall file 

any such schedule or any revision thereofi any other member of the 

Trade selling in the said geographical region may also file a revision 

of his own schedule to become effective as of the same time as such 

first mentioned schedule. The Regional Committee shall send to 

each member of the Trade selling such articles in such geographical 

region requesting the same, a copy of all such schedules and of all 

changes and revisions thereof. Such information shall also be available to any other persons concerned requesting the same. No member of the Trade filing a list of prices and terms shall sell such articles within such geographical region at prices lower or terms more 

favorable than those set forth in its price list aforesaid or in the 

revision thereof. 

After 25% in number and dollar volume of the known members 

of the Trade selling the articles specified by the Code Authority as 

aforesaid in such geographical region shall have filed their lists 0£ 

prices and terms as aforesaid, notice to that effect shall be given by 

the Regional Committee to all known members of the Trade selljng 

such articles in said geographical region. Thereafter no member of 

the Trade shall sell within the said ~eographical region any article 

or articles so specified by the Code Authority directly or indirectly 

by any means whatsoever at a price lower, or discounts greater, or 

on terms and conditions more favorable to the purchaser, than the 

lowest filed price, the highe ·t filed discounts, or terms and conditions 

most favorable to the purchaser, then filed but nothing herein contained shall prevent such member of the Trade from at any time 

filing a list of his own prices, terms, and conditions of sale. 

(b) Each schedule filed under this section shall state whether the 

prices, terms, and conditions specified are justified under subdivision 

(a) or under subdivision (b) (1) of Section 4 hereof, and in the 

case of justification under subdivision (b) (1) shall identify the 

schedule or schedules of the other member or members of the Trade 

justifying such prices, terms, and conditions. A schedule justified 

upon the basis of the schedule or schedules of another member or 

members shall become void forthwith upon the cancellation or revision upwards of such justifying schedule or schedules. If Section 4 

of this Article be su pended the provisions of this subdivision shall 

be suspended for the same period. 

3. The Code Authority shall have power on its own initiative, 

or on the complaint of any member, to investjgate any price for 

any product shown in any ·checlule filed hereunder, and for s1~ch 

purpose to require the member who filed such schedule to furnish 
384 

such information concerning the cost o:f such product as the Code 

Authority sh:~11 deem necess3:ry or _proper :for such pur_pose. If the 

Code Authority, after such investigat10n shall determine that such 

price violates any of the provisions of this Article, the Code Authority shall so notify such member, and thereupon such price shall 

become void and of no effect. All such decisions by the Code 

Authority shall be filed with and be subject to review by the 

Administrator. 

4. Except in performance of bona fide contracts in existence on 

the effective date of this Code no member of the Trade shall sell or 

permit the sale o:f any merchandise at less than the lower o:f the 

following: 

(a) In order to prevent unfair competition in the Trade and to 

avoid the demoralization of the market for paper and paper products, the practice of selling any merchandise below the replacement 

cost thereof to the seller is hereby declared to be an unfair trade 

Eractice. This practice results in speculative buying for a rise in 

the market and encourages periodical overproduction by manufacturers. Such overproduction in turn eventually makes for shutdowns in the paper manufacturing industry. It works back against 

the labor employed in manufacturing and distributing, and against 

the consumer. This declaration against sales below replacement 

cost by a member o:f the Trade does not prohibit him from selling 

any merchandise without adding to such replacement cost any profit 

to himself. But the selling price o:f merchandise should include 

an allowance for actual wages of labor, to be fixed and published 

from time to time by the Administrator. 

(b) 1. The lowest price then scheduled :for such merchandise under the provisions of this Article VIII by any other member o:f the 

Trade when sold in a geographical region where a price reporting 

plan is in effect. 

2. Or, the lowest price for which such merchandise is being then 

bona fide offered under the :provisions o,f this Article VIII by any 

other member of the Trade in a geographical region where a price 

reporting plan is not in effect; provided that a complete description 

of any offer or sale pursuant thereto shall immediately be made to 

the Code Authority in such form and detail as it may prescribe. Bona fide quotations made hereunder may be maintained by the 

seller for five days after the making thereof. 

The provisions of this Section shall r emain in effect until July 

1, 1934, at which time it shall terminate and come to an end without 

further order unless renewed or extended by the Administrator. 

5. The restrictions specified in Sections 2 and 4 hereof shall not 

apply: (a) To any sale made in closing out in good faith any stock, 

in whole or in part, for the purpose of discontinuing its sale, provided a statement is made to that effect on the invoice and provided 

such close-out stock is first listed with the Code Authority, and no 

close-out stock shall be offered without the approval of such 

Authority. -

(b) To sales of goods that are damaged or deteriorated in quality, 

provided that such goods are properly described by a statement to 

that effect on the invoice, and provided they shall be listed with the 
385 

Code Authority, and no damaged merchandise hali be offered without the approval of uch ... uthority. 

( c) To tran actions with other member of the Trade, provided 

that the same shall be listed with the Code Authority, and no such 

transactions shall be conducted without the approval of such 

Authority. 

( d) To merchandise clas ified by the manufacturers thereof prior 

to its sale by them to the Trade as job lots or seconds, provided such 

merchandise is properly described by a statement to that effect on 

the invoice when sold by a member of the Trade. 

( e) To sales of distress merchandise sold to liquidate a defunct 

business, providing that such sales shall be made in such manner and 

on such terms and conditions as the Code Authority may approve. 

Powers prescribed for the Code Authority in subsections (a), (b), 

( c), and ( e) hereof may be delegated by the Code Authority to the 

Regional Committees to be appointed under Section 5 of Article 

IV of this Code. 

6. The Code Authority may suspend for any period of time and 

from time to time, all of Section 4 of this Article but not part thereofi 

as ~o any article or articles sold by the Trade in any geographica 

reg10n. 

ARTICLE IX-REPORTS, STATISTICS 

1. Each member of the Trade shall prepare and file with the Executive Secretary of the Code Authority at such time and in such manner as it may prescribe such reports and statistical information as 

it, subject to the approval of the Administrator, or the Administrator 

may require from time to time to reflect conditions in the Trade. 

Any or all information so furnished by any members shall be subject 

to checking for the purpose of verification by an examination of the 

books and accounts and records of such member by any disinterested 

accountant or accountants or qualified person or persons designated 

by the Code Authority. 

2. Except as otherwise provided in the Act, or in this Code, all 

statistics, data, and information filed or required in accordance with 

the provisions of this Code shall be confidential, and the statistics, 

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 similar data and in such a manner as to 

avoid the disclosure of confidential information. The Code Authority shall arrange in such manner as it may determine for the 

publication currently to members of reports and statistics hereunder. 

3. The Code Authority shall make such reports to the Administrator as he may from time to time require. 

4. In addition to information required to be submitted to the 

Code Authority, there shall be furnished to Government Agencies 

such statistical information as the Administrator may deem necessary for the purposes recited in Section 3 (a) of the Act. 

ARTICLE X.-ThADE PRACTICES 

1. No member of the Trade shall publish advertising (whether 

printed, radio, display, or of any other nature), which is misleading 

or inaccurate in any material particular, nor shall any member in 
386 

any way misrepresent any goods (including, but without limitation, 

its use, brand, trade mark, grade, quality, quantity, origin, size, substance, character, weight, strength, thickness, nature, finish, material, 

content, or preparation) or credit terms, values, policies, services, ot 

the nature or form of the business conducted. 

2. No member of the Trade shall knowingly withhold from or 

insert in any quotation or invoice any statement that makes it inaccurate in any material particular. 

3. No member of the Trade shall brand or mark or pack any goods 

in any manner which is intended to or does deceive or mislead purchasers with respect to the brand, grade, quality, quantity, strength, 

thickness, origin, size, substance, character, nature, finish, material, 

content, or preparation of such goods. 

4. No member of the Trade shall publish advertising which refers 

inaccurately in any material particular to any competitors or their 

goods, prices, values, credit terms, policies, or services. 

5. No member of the Trade shall publish or circulate unjustified 

or unwarranted threats of legal proceedings which tend to or have 

the effect of harassing competitors or intimidating their customers. 

Failure to prosecute in due course shall be evidence that any such 

threat is unwarranted or unjustified. 

6. No member of the Trade shall secretly offer or make any payment or allowance of a rebate, refund, commission, credit, unearned 

discount, or excess allowances, whether in the form of money or otherwise, nor shall a member of the Trade sell below published prices or 

terms or secretly offer or extend to any customer any special service 

or privilege not extended to all customers of the same class, for the 

purpose of influencing a sale. 

7. No member of the Trade shall give, permit to be given, or 

directly offer to give, anything of value for the purpose of influencing or rewarding the actions of any employee, agent or representative of another in relation to the business of the employer of such 

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

without the knowledge of such employer principal or party. Nothing herein contained shall prohibit the ¥ree distribution of articles 

commonly distributed for advertising. 

8. No member of the Trade shall attempt to induce the breach 

of any existing contract between a competitor and his customer or 

source of supply; nor shall any such member interfere with or obstruct the performance of such contractual duties or services. 

9. No member of the Trade shall guarantee to sell below the price 

of a competitor. 

10. No member of the Trade shall interfere with a competitor's 

business through enticing of employees from the employment of such 

competitor, provided, however, that nothing in this paragraph shall 

prevent an employee of one employer from offering his services 

to a competitor, nor prevent any employer from employing the employee of another employer. 

11. No member of the Trade shall deliberately misrepresent 

" firsts " as " seconds " or " seconds " as " firsts." 

12. No member of the Trade shall execute instruments for the 

sale of merchandise purporting to be contracts in which only one of 

the parties is understood to be bound to perform. 
387 

13. No member of the Trade shall neglect to observe in letter and 

in spirit obligations assumed or contracts entered into as buyer or 

seller. 

14. No member of the Trade shall sell goods on consignment or 

place goods in the possession of the buyer to be paid for when sold, 

unless authorized by the Code Authority due to special circumstances. 

15. No member of the Trade shall misrepresent to any manufacturer or his agent either as to price1 terms, or other considerations 

the offerings of a competitive manufacturer. 

ARTICLE XI-RECOMMENDATIONS 

1. The Code Authority may, from time to time, present to the Administrator recommendations based on conditions in the Trade whic}l 

will tend to effectuate the operation of this Code and the policy ol 

the Act, and in particular along the following lines : 

(a) For the establishment of rules of fair trade practice and 

simplified practice recommendations for the Trade and for the codi .. 

fication of its trade customs, and the enforcement thereof. 

(b) For the establishment of rules relating to selling and accounting in addition to or in substitution for the rules prescribed by Sections 2, 3, 4, and 5 of Article VIII hereof or any of them. 

Such recommendations when approved by the Administrator shall 

have the same force and effect as the provisions of this Code. 

ARTICLE XII-MODIFICATION 

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

subject to" the right of the President, in accorclance with the provisions of subsection (b) of Section 10 of the Act, from time to time 

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

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

2'. This Code, except as to provisions required _ by the Act, may be 

modified on the basis of experience or changes in circumstances, 

such modification to be used upon application to the Administrator, 

and such notice and hearing as he shall specify, and to become effective on approval of the President. 

ARTICLE XIII-MONOPOLIES 

1. No provision of this Code shall be so applied as to permit 

monopolies, or monopolistic practices, or to elimmate, oppress, or discriminate against small enterpri<== es. 

ARTICLE XIV-EFFECTIVE DATE 

This Code shall become effective on the second Monday after its 

approval by the Pre iclent. 

ApproYed Code ·o. 176. 

Registry No. 405-3-07. 

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