Approved Code No. 428 Registry No. 1637-11 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

MECHANICAL PACKING 

INDUSTRY . 

AS APPROVED ON MAY 14, 1934 

WE DO OUR PART 

-· . ._. (i -

I j ' • 

----

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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Approved Code No. 428 

CODE OF FAIR COMPETITION 

FOR THE 

MECHANICAL PACKING INDUSTRY 

As Approved on May 14, 1934 

ORDER 

CODE OF FAIR COMPETITION FOR THE MECHANICAL p ACKING 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 Mechanical Packing Industry, 

and hearings having been duly held thereon and the annexed report on said code containing findings with respect thereto, having 

been made and directed to the President. -

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

States, I , Hugh S. Johnson, Administrator for Industrial Recov- ery, 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 respects with the pertinent provisions and will promote the policy 

and purposes of said Title of said Act; and do hereby order that 

said Code of Fair Competition be and it is hereby approved. 

HUGH S. JOHNSON, 

Adm,ini,st?oator for I ndustrial R ecovery. 

Approval recommended: 

K. M. SIMPSON, 

Division Ad1ninistrator. 

\V ASHINGTON, D.C., 

JI[ ay 14, 1.984. 

5D023 °-544-84--34 (151) 
REPORT TO THE PRESIDENT 

The PRE IDE~T, 

The 1V hite House. 

Sm: The original Code of Fair Competition for the l\fechanical 

Packing Industry was submitted on August 31, 1933, by the :Mechanical Packing Association, an unincorporated member hip society organized in 1933 representing the majority of the known members of 

the industry and about 80 per cent in volume of production. Several .~ revisions of the code were made prior to the public hearing held 

on April 2, 193-!. The code was revised during the recess of this 

hearing an<l i submitted in its final iorm for approval. Every 

person who requested an appearance was properly heard in accordance with statutory and regulatory requirements. 

The ]\IIechanical Packing Industry, a~ defined in this code under 

terms of Industry and Industry Products, is engaged in the manufacture and original sale of products or devices employed to create a 

ga eous or liquid seal on moving or stationary mechanical parts. 

The Industry Products (known to the trade as 1\'Iechanical Packing) 

of this Industry do not include identical products as governed by 

other Codes of Fair Competition heretofore or hereafter approved; 

provided, the preponderant activitie of such codes do not relate 

to the manufacture and original sale of l\1°chanical Packing. 

The Indu try comprises about 85 members, employing in normal 

time about 1500 employees. The Code is prec:ented by the :Mechanical Packing As ociation who represent, a member , a majority of 

the members of Industry by number, and approximately 80 per 

cent of production by volum0 • For the entire Industry the estimated 

invested capital and annual production capacity c:ince 1928 are 

rated at $8:500,000 and $25,000,000 respectively. It is estimated that 

approximately 80 per cent of their output is utilized as replacements 

and about 20 per cent represent new installation. 

The number employed in this Industry declined succes ively 

each year since 1929, when the average wa 1,700, until the inauguration of the Recovery Program in 1933. The low point in employment occurred betw·een November, 1932, and ]VIarch, 1933, when the 

average was 859, a decline of 49.5 per cent. Employment la. t 

reported wa in Augu t 1933, when the number of wage earners 

had increa ·eel to 1 550-80.4 per cent above the low point, and only 

8.8 per cent under the 1929 level. :Much of this increase was due to 

the fact that more than half the members of the A sociat:on ( with :.>2 

per cent of the employees) had signed the Presidents Reemployment Agreement at the time of reporting this increased num.ber of 

worker. 

The maximum week of 40 hours as specified in the code is 13 

per cent under the average worke l in 19~9. In Augu t, H)33, more 

than half of the members of Indu try (with 52 per cent of em-

(152) 

• 
153 

ployees) had signed the President's Reemployment Agreement, and 

hours had been reduced to 42.9 per week. The 40 hour provision 

of this code will further increase employment by about seven per 

cent over the August, 1933, level. 

The minimum of 40 cents for males and 35 cents for females 

provided in this code will directly affect 26.8 per cent, and approximately 72 per cent of the male and female employees respectively, and as a result of increased rates of pay, payrolls will be 

increased 21.2 per cent over that of Augu t, 1933. The percentage 

of male and female employees is approximately 80 per cent and 

20 per cent respectively. 

By the adoption of the 40 cent minimum rate, 26.8 per cent of 

the male employees will enjoy an increased earning due to the fact 

that this percentage of male employees was formerly paid less than 

40 cents per hour. The minimum of 35 cents per hour for female 

employees will affect approximately 72 per cent who were formerly 

paid less than 35 cents per hour. 

Article I : States the purpose of the code. 

Article II: Accurately defines specific terms applicable to the 

Mechanical Packing Industry as used in this code. 

Article III: The maximum hours are limited to forty hours per 

week. ,v atchmen shall be permitted to work 56 hours per week with 

one day rest in every seven. No person employed in clerical or office 

work shall be permitted to work in excess of forty hours in any one 

week, e~cept that for one week in any one month period such employee may be permitted to work a maximum of forty-eight hours. 

Employees engaged in a managerial, executive, or supervisory capacity who receive not less than Thirty-Five Dollars per week, or to 

technical staffs ( excluding highly 8killed workers engaged in production) or to outside salesmen, are not subject to any hourly limitations. The maximum hours shall not apply in cases of emergencies or repair where safety of life or health or protection of property 

necessitates longer hours. 

Article IV: No employee, except as otherwise specified, shall be 

paid in any pay period less than at the rate of forty cents per hour, 

except that for such light work as does not usually require the 

strength and skill of male labor, and for which male labor is not 

used, the minimum rate paid to female employees shall be at the rate 

of thirty-five cents per hour. The minimum rates herein provided 

shall be construed as hiring rates applying to totally unskilled or 

common labor. .Other classes of labor shall be compensated at rates 

above such minimum. The established minimum rate of pay for the 

work performed in any pay period shall apply irrespectiYe of 

whether an employee is actually compensated on a time rate, piece 

rate, or other basis. Provision is also made for the employing of 

handicapped persons. No accounting, clerical, sales, or service employee in any office shall be paid le s than at the rate of Fifteen 

Dollars per week, except that office boys and girls and messengers 

may be paid at a rate not less than 807c of the minimum paid office 

employees. 

Article V. No person under 18 years of age shall be employed in 

the Industry except in clerical, office, sales, service, technical and 

engineering departments, or as a messenger, and no person under 16 
154 

years of age shall be employed in any capacity. This Article also 

sets forth the mandatory provision respecting the rights of employees to organize and bargain collectively. 

Article VI: Establishes a Code Authority consisting of five voting 

members, four or whom shall be elected by the members of the 

Mechanical Packing Association and the other such member by the 

Members of Industry who are not members of the ~1echanical Packing Association. The selection of all members to the Code Authority 

shall be by a fa« and equitable method of election to be approved by 

the Administrator. In addition to the organization of the Code 

Authority, the powers and duties thereof are outlined in this Article. 

Article VII: Sets forth fair trade practices for the Industry. 

Article VIII: This code and all the provisions thereof are 

expressly made subject to the right of the President, in accordance 

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. Provision is made that 

an amendment may be proposed by any interested party. Provision 

is also m.ade so that the Code Authority may make reconunendations 

for modifications of this code to the Administrator which shall become effective as a part of this code upon approval by the Administrator after such notice and hearing as he may prescribe. 

Article IX: No provision of this code shall be so applied as to permit monopolies or monopolistic practices or to eliminate, oppress or 

discriminate against small enterprises. . 

Article X: This code shall become effective ten days after its 

approval by the Administrator. 

The Deputy Administrator in his final report to me on said code 

having found as herein set forth and on the bas~s of all the proceedings in this matter; 

I find that: 

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

removal of obstructions 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 sanctions and supervision, by eliminating unfair competitive practices, by promoting the fullest possible 

utilization of the present productive capacity of industries, by avoiding undue restriction of production ( except as may be temporarily 

r equired), 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 'I itle of said Act, including without limitation 

subsection (u) of section 3, sub ection (a) of section 7, and ubsection 

(b) of section 10 thereof, and that the applicant association is an in-
155 

dustrial association truly representative of the aforesaid Industry, 

and that said association imposes no inequitable restrictions on ad◄ 

mission 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 ente-rprises 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, therefore, this code has been approved. 

Respectfully, 

MAY 14, 1934. 

HUGH s. J OHNSON, 

Adm,inistrator. 
CODE OF FAIR COl\fPETITION FOR THE MECHANICAL 

PACKING INDUSTRY 

ARTICLE I- PURPOSES 

To effectuate. the policies 0£ Title I 0£ the National Industrial 

Recovery Act, this Code is established as a Code of Fair Competition 

for the ~Iechanical Packing Industry and its provisions shall be the 

standards of fair competition for such Industry and are binding 

upon every member thereof. 

ARTICLE II-DEFINITIONS 

'\Vherever used in this Code or any supplement appertaining 

thereto, the terms enumerated in this Article shall have the meanings 

herein defined. 

SECTION 1. The term " President " means the President of the 

United States of America. 

SECTION 2. The term "Act " means Title r of the National Industrial Recovery Act. 

SECTION 3. The term " Administrator " means the Admini trator 

for Industrial Recovery. 

SECTION 4. The term "Mechanical Packing Industry" or "Industry" as used herein includes the manufacture and the original sale 

of industry products by a l\1ember of Industry either by himself or 

his agent, which includes without limitation any person or corporation occupying a subsidiary or controlling relationship, or one ot 

common, mutual or joint ownership or Gontrol, to a M~mber of 

Industry. 

SECTION 5. The term "Industry Products" (known to the trade 

as "Mechanical Packing") as used herein shall mean products, or 

devices, employed to create a gaseous or liquid seal on moving or 

stationary mechanical parts (these parts commonly include valve 

stems, rods, plungers, pistons, and tubes, used in connection with 

pumps, valves, compressors, engines, boilers, condensers, and other 

mechanical equipment; also joined surfaces such as flanges or heads 

used on boilers, piping, engines, or other vessels and containers). 

(a) The term ' Industry Products " for this " Industry " for the 

purposes of this Code does not include identical products as governed 

by other Codes of Fair Competition heretofore or hereafter approved; provided, the preponderant activities of such Codes do not 

relate to the manufacture and original sale of ' l\1Iechanical 

Packing". 

SECTION 6. The term "l\1ember of Industry" inclucles 1 but without limitation, any individual, partnership, association, corporation 

or other form of enterpri e engaged in the Industry, either as an 

employer or on his or its own behalf. 

(156) 
157 

SECTION 7. The term "Employee" means and includes anyone 

engaged in the Industry in any capacity receiving compensation for 

his services, irrespective of the nature or method of payment of such 

compensation, except a :Member of Industry. 

SECTION 8. The term "Employer" means and includes anyone by 

whom any such employee is employed or compensated. 

SECTION 9. The term "Association " shall mean the :Mechanical 

Packing A ciation, an unincorporated member hip ociety organized July 1933, having its principal office in New York City. 

SECTION 10. The term "Secretary" as used herein shall mean th e 

Secretary of the l\'fechanical Packing Association, "\\ho shall al o b3 

the Secretary of the Code Authority. 

ARTICLE III-Ho-cRs OF LAnon 

l\IAXIl\I Q:;\I HOURS 

SECTION 1. No employee shall be permitted to work in excess o-f 

forty ( 40) hours in any one ( 1) week or eight ( 8) hours in any 

twenty-four (24) hour period, except as herein otherwise providecl. 

A normal ,,ork day shall not exceed eight (8) hours. 

H OURS FOR CLERICA.L AND OFFICE E:MPLOYEES 

SECTION 2. No person employed in clerical or office work shall be 

permitted to "\\Ork in excess of forty ( 40) hours in any one week, 

except that for one (1) week in any on'8 (1) month period such employee may be permitted to "\\Ork a maximum of forty-eight ( 48) 

hours. A normal work day shall not exceed eight ( 8) hours. 

EXCEPTIO'._S AS TO HOURS 

SECTION 3. The maximum hours fixed in Section 1 of this Article, 

and the provisions of Section 8 of this Article, shall not apply to 

emplo3 ees engaged in emerg,ency maintenance or emergency repair 

work, involving breakdown or protection of life or property; provided that in uch special cases not less than one and one-half (11⁄2) 

time the normal wage rate for any employee so employed shall be 

paid for all hours worked in excess of forty ( 40) hours per week, or 

eight (8) hour per day. 

SECTIO.i: 4. The maximum hours fixed in this Article, and the 

provi ions of Section 8 of thi Article shall not apply to per ons 

engaged in a managerial, executive, or supervisory capacity who 

recefre not le s than Thirty-Five Dollars ($35.00) per week; or to 

technical staffs ( exclu ling highly skilled workers engaged in production); or to outside salesmen. SECTION 5. The maximum hours fixed in Section 1 of this Article 

III hall not apply to wutchmen, who may be permitted to work 

not more than fifty- ix ( 5G) hours per week; provided, that such 

employees shall have at least one (1) day's rest in each seven (7) 

day period. 

Si::arrnN 6. Th€re may be a tolerance of 10% additional hours 

over the maximum hours in any week, or the normal work day, -for 

69023°-544-84-3~2 
158 

empl , es engaged in the preparation, care an l maintenance of 

machinery and production facilitie , firemen, eno-ineer , tock and 

... hipping employee and truckmen; provided, however, that at lea t 

one an 1 one-half (l1⁄2) times the norm. l wage rate for any 

cmploy 0 e so employed ·hall be paid for all hour · worked in exc 

of eight (8) hours per day or forty ( 40) ho11rs per "·eek. 

SECTION 7. During any period in which a concentrated demand 

upon any di i ion of the Indu -try hall place an unusnal and ten1-

porary burden for 1-roduction work upon it faciLtie , or to meet 

seasonal or peak requiremen s, or production emergencies, an 

employee may be pennitted to work not more than forty-eight 

( 4:8) hour per week in not more than six ( 6) weeks in the fi1· ·t si · 

( 6) month of a calendar year, :1nd for not more than six ( G) weeks 

in the la t ..:ix (G) months oi a calendar year; pr vicletl that in 

such s1 ecial cases at ka~t one an l one-half (11/~ ) time the normal 

, ·ag" rate hall be paid to any employee so employccl for hour 

worked in exc0 of fort ( 40) hour in any one ( 1) wee~-:, or eight 

(8) hours in any one (1) day. 

ST.-\.XDAP.D \ "\'EEK 

SE TION . No fmployee shall be pern!.itted t work more than 

s1x (6) days in any seven (7) day period. 

EMPLOYi'iIENT EY EYER.\.L E:MTLOYERS 

SECTION 9. No employer shall knowingly permit any employee to 

work at any time, which, when totalled with that already performed 

with another employer or employers in this Industry or other 

Industries, exceeds the maximum pennitted herein. 

AnTICLE IV- \VAGES 

l\IL;-T:.re:\I w Ac=s 

SEcTIO 1. ~ o emplo 'ee, except r.s herein ctherwi~e specifi ed, JwJl 

be paid in any pay period le s than at the rate of forty cent ( 40¢) 

per hour, ex ept that f or .-uch light ,-vork a does not usually r()<JUire 

the strength and kill of male labor, and for which male labor i not 

u ed, the minimum rate paid to female employees shall be at the rate 

of thirty-five cent. (35¢) per honr. The minimum r ate herein 

provided hall be construed a hiring rate applying to totally 

unskilled or common labor. Other das ·e. of labor shall be compensated at rates above such minimu 11. "\Vages which were ~n effect 

prior to elate of approntl of this Code, which were above the minimum, shall in no ca e b reduced. 

CL1~RICAL .A ND OFFICE E~IrLOYE:C 

' 

S • CTION 2. No accounting, clerical, sales, or serYice employee in 

any office shall be paid less than at the rate of Fifteen, Dollars 

($15.00) per week of forty (40) hours; provided, however, that 

office boys and girls and messengers may be paid at a rate not less 
159 

than 80% o:f the 1111.:n.1mum hereinaboYe specified; and provided 

further, that the number of such boy and girl and messeng2rs so 

paiJ shall con titute not more than 5% of the total number of such 

(-'.mployee. of any office of any one employer, but in uny case each 

mployer shall be entitle 1 to at least two (2) uch employees. 

(a) ~To employees in this cla s in reanlar employme,it .f--hall have 

their comr~cn-,ation reduced on account of an. r duction in weekly 

hours of employmen m, <1 because of the requirer 1ent of Article 

III. 

(b) Part time employee:-; shall be paid an honrly rate which ~hall 

not be le~. tlrnn th pro rata amount of the weekly ,,rnge · . pecified in 

Section 1 of thi Artiele IV. 

PIECEW nK CO::.\IPI:NSATIOX-1\Ili\Li.\I ·:,r WAGE' 

Sr:cTIL N 3. This Article establi hes a minimum rn.te of puy for any 

pay period which .·hall apply, irrespecti-ve of 11Lether an employee 

is actually compensated on a time r ate, piecework, or other basis. 

FEMALE EUPLOYEES 

SECTION 4. Female employees performing ·ubstantinlly the same 

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

employees, and ,vhen they displace male employee they shall receive 

the ame rate o:f pay as the men they displace. The Code Authority 

shall, within ninety (90) days after the effective date of this Code, 

file with the Administrator a de cription of all occupations in the 

Industry in which both men and women are employed. 

WAGES ABOVE THE l\IINIMUl\I 

SECTION 5. Equitable adjustments in all pay chedules of employ-

~es shall be made within thirty (30) days after the effective da~e of 

thi Code by any employer who has not heretofore made such adJustments under the National Industrial Recovery Act. In no event, 

however, hall "-age rat0 s be reduced. '\Vithin sixty (60) days after 

the effective <l ate of thjs Code each :Member of the Industry shall 

make a report of ·nch ac1ju. tment whether made prior to or subsequent to elate of approval of this Code to the Code Authority. 

HANDICAP.PED PERSOXS 

SECTION 6. A per on who ~e earning capacity is limited because of 

age, ph~ :ical or mental handicap, or other infirmity, may be employed on li,o-ht work at a wage below the minimum established by 

thi Code if the employer obtains from the tate uthority, designate l by the nit cl ~ tates Department of Labor, a certificate 

authorizing . uch per on'· employment at <::n h wages and for such 

honrs a. shall be stated in the certificate. Such authority hall bB 

guided by the instruction of the United States Department of Labor 

in issuing certificate· to such person . · Each employer shall file 

monthly with the Code Authority a list of all uch per ons employed 

by him, showing the wages paid to, a.nd the inaximum hours of work 

for such employee. , 
160 

P AYMENT OF WAGES 

SECTION 7. An employer shall make payment of all wages in lawful currency or by negotiable check therefor, payable on demand. 

The e wages shall be exempt from deductions for any payments 

other thaiJ. tho ·e -voluntarily ordered paid by the wage earners, or 

required by state laws. Pay periods shall be at least semimonthly, 

and for salarie at lea t once per month. Employers shall not withhol l wage , except as otherwi e provided by law. 

AnncLE V - GEXETIAL LABOR PnonsrnNs 

CHILD L\.EOR 

SzcTION 1. To person under 18 years of age shall be employed 

in tlw ]Uechanical Packing Indu try except in clerical, office, sales, 

service, technical and engineering departments, or a me engers, 

and no person under 16 3 ears of age shall be employed in any capacit~·. In any tate an em:)loyer hall be deemed to ha,e complied 

·with this pro-vision as to a.ge of employees if he shall ha,e on file 

a certificate or permit duly ~io-ned by the authority of such state 

empowered to issue employment or age certificate or permits showing that th 0 employee is of the r equired age. 

PTIOUSIONS OF THE ACT 

SECTION 2. (a) Employee . ..,hall ha,e the right to organize and 

bargain collectively through repre entati,es of their own choo ing, 

and shall be free from the interference, restraint, or coercion of employer of labor, or their agents, in the de ignation of such representatiYe or in elf-organization, or in other concerted actiYities for the 

pnrpose of collecti,e bargaining or other mutual aid or protection. 

(b) No employee and no one seeking employment shall be requir ed 

as a condition of employment to join any company union or to r efrain from joining, organizing, or assisting a labor organization o:f 

his own choosing and 

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

minimum rate of pay, and other conditions of employment approved or pr 0 scribed by t he P resident. 

RECLASSIFICATION OF EMPLOYEES 

SECTION 3. No employer shall r eclassify employees or duties of 

occupations perforrn.ed, or engage in any other ubterfuge f or the 

purpose of defeating the purposes or provisions of the Act or o:f this 

Code. 

STANDARDS FOR SAFETY AND HEALTH 

SECTION 4. E very employer shall provide for the safety and 

health o:f employees during the hours and at the places of their employment. Standards for Safety and Health shall be submitted by 

the Code Authority to the Administrator withiN. six months after 

the effective date of this Code. 
161 

STATE LAWS 

SECTION 5. No provision in this Code shall super ede any state 

or federal law which imposes on employers more stringent requirements as to age of employees, wages, hours of work, or as to safety, 

health, sanitary or general working conditions, or insurance, or fire 

protection, than are imposed by this Code. 

POSTING 

SECTION 6. All employers shall post and keep posted complete 

copies of this Code and all amendments thereto in conspicuous 

places accessible to employees, and hall comply with all rules and 

regulations relative to posting which may from time to time be 

prescribed by the Administrator. 

ARTICLE VI-ORGANIZATION, POWERS AND DUTIES OF THE CODE 

AUTHORITY 

ORGANIZATION AND CONSTITUTION 

SECTION 1. A Code Authority to administer this Code is hereby 

constituted consisting of five (5) voting members. Four (4) of such 

voting members shall be elected by the members of the :Mechanical 

Packing Association and the other such voting member shall be 

elected by the JVIembers of Industry who are not members of the 

Mechanical Packing Association. The Secretary of the Mechanical 

Packing Association shall be the Secretary and a non-voting member 

of the Code Authority. The selection of all members to the Code 

Authority shall be by a fair and equitable method of election to 

be approved by the Admini ~trator. In the event that the selection 

of the non-member of the Mechanical Packing Association is not 

made within thirty (30) days after the effective date of this Code, 

such member may be selected by the Administrator. 

SECTION 2. In addition to the above membership there may be 

one and not more than three (3) additional members, without vote 

and without compensation by the Industry, to be appointed by 

the Administrator to serve for such terms as he may specify. 

SECTION 3·_ Each trade or industrial association directly or indirectly participating in the selection or activities of the Code Authority shall ; 

(1) Impose no inequitable restrictions on membership, and 

(2) Submit to the Administrator true copies of its Articles of 

Association, By-Laws, Rules and Regulations and any amendments 

when made thereto, together with such other information as to 

membership, organization and activities as the Administrator may 

deem necessary to effectuate the purposes of the Act. 

SECTION 4. In order that the Code Authority shall at all times 

be truly representative of the Industry and in other respects comply with the provisions of the Act, the Administrator may prescribe such hearings as he may deem proper; thereafter if he shall 

find that the Code ~uthority is not truly representative or does 

not in other respects comply with the provisions of the Act, he may 
162 

require an appropriate modification rn the method of selection of 

the Code Authority. 

SECTION 5. Members of Industry shall be entitled to participate 

in and share the benefits of the acti,ities of the Code Authority 

and to participate in the selection of the members thereof by assenting to and complying with the requirements of this Code and 

sustaining their reasonable share of the expenses of its administration. Such reasonable share of expenses of administration shall 

be determined by the Code Authority, subject to re,iew and approval by the Administrator, on the basis of volume of business 

and/or such _other factors as may be deemed equitable. The non 

payment of such equitable assessment shall be a violation of the 

Code. 

SECTION 6. Nothing contained in this Code shall constitute the 

members of the Code Authority partners for any purpose. Nor 

shall any member of the Code Authority be liable in any manner 

to anyone for any act of any other member, officer, agent, or em- ployee of the Code Authority. Nor shall any member of the Code 

Authority, exercising reasonable diligence in the conduct of his 

duties hereunder, be liable to an3 one for any act or omission to act 

under this Code, except for his own wjlful misfeasance or nonfeasance. 

POWERS AKD DUTIES 

SEcTio~ 7. Subject to such rules and regulations as may be issued 

by the Administrator, the Code Authority shall have the followin&' 

further powers and duties, the exercise of which shall be reported 

to the Administrator and shall be subject to his right, on revi~w, 

to disapprove any action taken by the Code Authority. If the 

Administrator shall determine at any time that any action of the 

Code Authority or any agency thereof may be unfair or unjust or 

contrary to the public interest, the Administrator may require that 

such action be suspended to afford an opportunity for investigation 

of the merits of such action and further consideration by such Code 

Authority or agency pending final action which shall not be effective 

unless the Administrator approves or vnless he shall fail to disapprove after thirty days' notice to him of intention to proceed with 

such action in its original or modified form. 

(a) To· make investigations as to the functioning and observance 

of any provisions of this Code at its own instance or upon complaint of any person a:tf ected and to report the result thereof to the 

Adm i.nistra tor. 

(b) To insure the execution of the provisions of this Code and 

provide for the compliance of the Industry with the provisions of 

the Act. To receive complaints of violations of this Code and 

di putes arising thereunder, make investigations thereof, provide 

hearings thereon, adjust such complaints and make such decisions 

a are nece sary thereon and to bring violations of this Code to the 

attention of the Adrn.inistrator for prosecution, recommendation and 

other action, subject to such rules and regulations as the Adminis- trator may pre cribe. 

(c) To adopt By-Laws, Rules and Regulations for its procedure 

and for the administration of this Code. The Code Authority shall 
163 

promptly furnish to the Administrator true copies of the By-Laws, 

Rules and Regulations adopted pursuant to this paragraph. 

( d) To obtain from :Members of the Industry through a confidential agency such statistical information and reports as are required 

for the administration of this Code and to provide for submission 

by members of Industry of such statistical information and reports 

as the Administrator may deem necessary £or the purposes recited 

in Section 3 (a) or the Act, which in£onnation and reports shall be 

submitted by 11embers of Industry to such Federal or State agencies 

as the Administrator may designate; provided, that nothing in this 

Code shall ~lieve any :Member of Industry or any existing obligations to furnish reports to any government agency. No individual 

reports submitted to the Administrator and/or such go-,ernment 

agencies as the Administrator may designate shall be disclosed to any 

other 1'fember of Industry or any other party except to such government agencies as may he directed by the Administrator. To this end 

the Secretary of the Mechanical Packing Association is designated 

the agent of the Code Authority for the collection and compilation 

of statistical data, reports, and information from :Members of Industry. 

( e) To use such trade associations and other agencies as it deems 

proper for the carrying out of any of its activities provided for 

herein, provided that nothing herein shall relieve the Code Authority 

of its duties or responsibilities under this Code and that such trade 

associations and agencies shall at all times be subject to and comply 

with the provisions hereof. 

(f) To make recommendations to the Administrator for the coordination of the administration of this code with such other codes, if 

any, as may be related to or affect the Th-'Iembers of Industry. 

(g) To cooperate with the Administrator in regulating the use of 

any N.R.A. insignia solely by those 11embers of Industry who have 

assented to, and are complying with, this Code. 

(h) To recommend to the Administrator £urther fair tra.de practice provisions to govern 1'1embers of Industry in their relations with 

each other or with other Industries, and to recommend to the Administrator measures for industrial planning, including stabilization o:f 

employment. 

(i) To secure from. 1'1embers of Industry an equitable and proportionate payment of the reasonable expenses of maintaining the 

Code Authority and its activities, and to this end the Code Authority has the right to establish a label which shall be sold only to those 

1'1embers of Industry who assent to this Code. 

(j) To make studies with a view to the establishing of classifications and tandards of quality for products of the Industry in cooperation with some federal agency preferably the Bureau of Standards of the United States Department of Comn1erce. 

ARTICLE VII-MARKETING AXD TR_-\DE PRACTICE RULES 

TRA.DE PRA.CTIGE RULES 

SECTION 1. The following trade practices are declared to constitute unfair methods of competition between ~Iembers of Industry 
164 

and no l\fember of Industry shall use or engage in any of them, 

either directly or indirectly, through any officer agent or employee. 

Engagin a in any one or more of these provisions or any further 

trade 1 roYi ion which hereafter may be established upon recommendation by the Code Authority, and app~o ed by the Administrator, after uch notice and hearings as he may prescribe, shall be 

deemed a violation of this Code. 

SECTION 2. No l\1ember of Industry shall knowingly publish advertising (-~d1ether printe<l radio, display, or of any other nature) 

which is mi leading or inaccurate in any material particular, nor 

shall any member in any way mi represent any goods or products 

of Indu try ( including, but without limitation, its use, trade-mark, 

grade, quality, quantity, weight, origin, size, substance, character, 

nature, finish, material, content, or prepar.ation) or make any misrepre entation as ~o credit terms, valu~s, policies, services, or the 

nature or form of the business conducted. 

SECTION 3. The imitation or copying of written or oral forms of 

trade-marks, trade name , or slogans used by a competitor. 

SEGTION 4. No :Member of Industry shall knowingly withhold 

from or insert in any quotation or invoice any statement that makes 

it inaccurate in any material particular. 

SECTION 5. To ship or in any way deliver free goods of any 

kind to any customer, for customer's own use or for resale by the cuStomer, except that a l\1ember of Industry may furnish to a customer 

without charge a limited amount of material or product strictly for 

test application and determination as to its serviceability. 

SECTION 6. To guarantee the serviceability of any product for any 

period of time, or sell on an approval basis. Any warranty shall be 

lin1ited to a guarantee against defects in materials or workmaBship, 

and obligations under such wa1Tanty shall be limited to the replacement of defective materials. 

SECTION 7. To subsidize buyers by special donations or by paying 

or assuming any part of their expenses or losses which are not extended alike to all buyers. 

SECTION 8. Enticing away an employee or employees of competitors with the intent of unduly hampering injuring, or e:tnbarrassing 

a competitor or competitors in the conduct of their busines ; provided, however, that nothing in this paragraP.h shall prevent an employee from offering his services to a l\1ember of Industry, nor prevent a l\1ember of Industry from employing the employee of another 

l\1ember of Industry, where the initiative in such change is taken by 

the employee. 

SECTION 9. To purchase from a customer or pro pective customer 

as a con icleration of a sale, any commodity at higher than prevailing 

open market prices, or repurchase at greater than customer's replacement cost any product of a l\!Iember of Industry's own manufacture. 

SECTION 10. To acquire, by purcha e or exchange, the industry 

products of another l\fember of Indu try from any customer or prospective cu tamer for the purpose of influencing the sale of merchandise to such customer. 

SECTION 11. To subnormally price any other product or products of a l\iember of Industry for the purpose of influencing the sale 

of industry products of this Industry. 
165 

SECTION 12. To permit s~!esmen to split or share their commissions or other compen ations with any customer or customer's agent. 

SECTIOr 13. To make excessiYe allowance for alleged shortages, 

or e:s:ces. iYc adj u tment of complaints. 

SECTION 14. To extend abnormal .,ale service as ·istance or unusual volume of credit jn order to thereby influence .sales, and to 

fail to charge interest at six (G) per cent on cu tomers, note· covering past due account . 

SECTION 15. To ship goo ls on consignment except where peculiar circum tnnces of the Industry require the practice. Such exceptio11s hall be defined by the Code Authority with the approval 

of the Administrator and shall apply alike to all :Members of 

Industry. 

SECTION lG. To make e:s:cessi.ve expenditures for entertainment 

of a cu tomer or pro pectiye customer or their employees, or give 

any gratuity or make any loan, or otherwise improperly influence 

business. 

SECTION 17. To make any contract with any purchaser whereby 

the purcha er is to be protected again t a decline in price. 

SECTION 18. To give, permit to be given, or directly offer to give, 

anything of Yalue 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 S\lch agent or the represented party. This commercial bribery 

provision shall not be construed to prohibit free and general distribution of articles commonly used for advertjsing except so far 

as such articles are actually used for commercial bribery as hereinabove defined. 

ARTICLE VIII-MODIFICATION 

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

made subjert to the right of the President, in accordance with the 

provis:ons 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. 

SECTION 2. Such provisions of this Code as are not required to be 

included therein by the Act may, with the approval of the Administrator, be amended as provided in Section 3 of this Article VIII 

hereof, in such manner as may be indicated by the needs of the public, 

by chanD"es in circumstances, or by experience. All of the provisions 

of this Code, unle s so modified or eliminated, shall remain in effect 

until J une 16, 1935. 

ECTIO 3. An amendment may be proposed by any interested 

party either to the Code Authority or directly by or to the Administrator. All propose l amendments shall be r eferred to the Code 

Authority, who ·hall give Members of Industry an opportunity to 

be heard thereon; and thereafter, the Code Authority may make 

such recommendations thereon as is deemed proper; provided, however, that when approved by the Administrator, as necessary to 

effectuate the policies of the Act, after such notice and hearing as he 

may pre ·rib , any proposed amendment shall thereupon become 

effecti,e as a l art of th.s Code. 
166 

SECTION 4. The Code Authority may make recommendations for 

modification of this Code to the Administrator which shall become 

efl'ectiYe a a part of this Code upon approval by the Administrator 

after such notice and hearing as he may prescribe. 

ARTICLE IX-MONOPOLIES 

No provision of this Code shall be so a pp lied as to promote 

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

discriminate against small enterprises. 

ARTICLE X-EFFECTIVE DATE 

This Code shall become effective ten (10) days after its approval 

by the Administrator. 

Approved Code No. 428. 

Registry No. 1637-11. 

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