Approved Code No. 329 Registry No. 1154-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

UPHOLSTERY SPRING AND 

ACCESSORIES 

MANUFACTURING INDUSTRY 

AS APPROVED ON MARCH 10, 193, 

I 

WE -DO OUR PART 

I .., 

" 0 " ----

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - • Price 5 cent ■ 
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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Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

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

Charleston, S.C.: Chamber of Commerce Building. 

Chicago, Ill.: Suite 1706, 201 North Wells Street. 

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St. Louis, l\Io.: 506 OliYe Street. San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 329 

CODE OF FAIR COMPETITION 

FOR THE 

UPHOLSTERY SPRING AND ACCESSORIES 

MANUFACTURIN.G INDUSTRY 

As Approved on March 10, 1934 

ORDER 

APPROVING CODE OF F AIR COMPETITION FOR THE u PHOLSTERY SPRING 

AND ACCESSORIES MANUFACTURING INDUSTRY 

An application having been duly made f ursuant to and in :full 

compliance with the provisions of Title I o the National Industrial 

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

Fair Competition for the Upholstery Spring and Aocessories Manufacturing Industry, and hearings having been duly held thereon and 

the annexed report on said Code, containing findings with respect 

thereto, ha vin__g been made and directed to the President : 

NOW, TH.Ji;REFORE, on behalf of the President of the United 

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

pursuant to authority vested in me by Executive Orders of the Presi- dent, 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 purpo es of 

said Title of said Act; and do hereby order that said Code of Fair 

Competition be and it is hereby approved; provided, however, that 

the provisions of Article X, Sections 1, 2 and 3, insofar as they prescribe a waiting period between the filing with the Code Authority 

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

revised price lists or revised terms and conditions of sale be and they 

are hereby stayed pending my further order. 

Approval recommended: 

K. M. Sr IPSON, 

HUGH s. JOHN ON, 

Admin'istrator for Industrial Recovery. 

Div'ision Ad1nin'istrator. 

,v A HINGTON, D.C., 

lJJ arch 10, 1934. 

45804°-425-62- 34 (605) 
REPORT TO THE PRESIDENT 

The PRESIDE :rT, 

The 1¥ hite H ouse. 

Srn: This is a report on the Code of Fair Competition for the 

Upholstery Spring and Accessories Manufacturing Industry in the 

United States as revised after the hearing conducted in Washington on December 18, 1933, in accordance with the provisions of the 

National Industrial Recovery Act. 

LABOR PROVISIONS 

Under this Code no employee shall work in excess of 40 hours 

in one week except during peak periods when a 48 hour week is 

permitted. However, such excess hours during peak periods may 

not exceed 32 hours in any 6 months period and may not be utilized 

in more than 6 of the 26 weeks in that period. There are certain 

exceptions to these provisions. First, any employee may be permitted to work 8 additional hours per week above those specified 

provided such additional hours shall be paid for at the rate of 

time and one-half and provided that no employee shall be permitted to work more than 48 hours in one week. Secondly, executiv_e and supervisory employees who receive $35.00 or more per 

week and outside sales employees are exempt from the above provisions. Thirdly, outside delivery men are permitted to work 48 

hours and janitors, and watchmen are permitted to work 56 hours 

in one week. Finally, employees who act as factory clerks and who 

receive $25.00 or more per week are permitted a tolerance of 10% 

upon the hours above specified. But the number of such :factory 

clerks is limited to 5% of all employees. 

The minimum wage is 35 cents per hour in the North and 32 cents 

per hour in the South for employees engaged in the processing of 

products. Learners may recieve 80% of these minimums. However, 

learners may at no time exceed 5% of all employees and no employee 

may serve as a learner more than once in this industry. Clerical 

employees are to be p aid not less than $15.00 per week except that 

office boys and girls may receive 80% of the minimum. The total 

number of such employees is not to exceed 5% . Equitable adjustments of wages above the minimum is provided for in the Code. 

ECONOMIC EFFECT OF THE CODE 

:Members of the Indu. try manufacture semi-finished producers 

goods, sold to other manufacturers for use in making mattresses, upholstered :furniture of various types, and spring cushions in 

general. According to the Report of the Division of Planning and 

Research estimated :factory employment is approximately 54% under 

that of 1929. The aYerage hours worked per week in 1929 were 54 

but employment ha been extremely irregular in 1932 and 1933 

(606) 
607 

re ulting in lower average hours of work. Howc-ver, the limitation 

upon hours contained in the Code should, on the basis of available 

statistics, increase employment within the Industry by at least 25%. 

In addition to the re-employment which should, in this Industry, 

follow approval of the Code, the actual increase in purchasing power 

of the workers should be substantial. According to the Research 

and Planning Divi ion, the average weekly wage in 1932 was $8.05. 

On the basis of wage provisions in the Code the average minimum. 

wage for both the North and South for a 40 hour week will be 

approximately $13.80. The 1929 average weekly wage for the longer 

week was $14.57. l\1embers of the Industry have been desirous of 

improving labor conditions within the Industry and are now convinced that, through the labor and the fair practice provisions of 

the Code, they will accomplish their aim. 

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

having found as herein set forth and on the basis 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 a.nd foreign com- merce 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 gToups, 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 

required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducin~ 

and relieving unemployment, by improving standards of labor, and 

by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 em- ployees; and is not classified hy me as a major Industry. 

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

Subsection (b) of Section 10 thereof; and that the applicant association is an industrial association truly representative of the aforesaid 

Indu try; and that said association imposes no inequitable restrictions 

on admission to membership therein. 

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

monopolistic practices. 

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

small enterpri es and will not operate to discriminate again t 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. 

I have, therefore, appro-ved this Code. 

Re pectfully, 

l\fARCH 10, 1934. 

l-l UGH S. JOHNSON, 

Acl11iinist1,ator. 
CODE OF FAIR COMPETITION FOR THE UPHOLSTERY SPRING AND ACCESSORIES MANUFACTURING 

INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Tit.le I of the National Industrial 

Rec°' ery Act, this Code is established as a Code of F air Competition for the UPHOLSTERY SPRING AND ACCESSORIES 

MA UF ACTURING INDUSTRY, and its provisions shall be the 

standards of fair competition for such Industry, and shall be 

binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term "Upholstery Spring and Accessories 1\1:anufacturing Industry", hereinafter referred to as the "Industry", 

means the manufacture for sale of : 

(a) Uphol tery springs of all kinds, including, but not limited to, 

true uphol tery springs, pillow springs, single cone springs, double 

cone spring , car-seat springs, ball bottom springs, top extension 

springs, high-low springs, and all other springs of similar construction and use; 

(b) Assembled spring construct.ions of all kinds, including specifically, but not limited to, studio couch spring and frame constructions, 

bed-davenport spring and frame constructions, all-wire spring mattre~s inner units, all-wire spring cushion units, fabric-wire cushion 

and mattre s inners; 

(c) Studio couch and bed-davenport metal fixtures and parts; 

( l) Upholstery accessories, including back traps, sure-stay straps, 

seat bar an l ag s·eat construction; The manufacture of spring wire 

in coils and mechanical springs is not included in the above definition. 

SECTION 2. The term "Products" as used herein means such prod- uct a are defined and set forth in Article II, Section 1 hereof. 

SECTION 3. The term "1\-Iember of Industry" or ":Member" means 

without limitation any individual, partnership, corporation, or any 

other form of enterprise engaged in the manufacture for ale of the 

Products of the Indu try. 

SECTION 4. The term "Association" means the Uphol tery Spring 

and Acee ories 1\Ianufacturers' Association, Inc., an Illinoi corporation not for profit, having its principal offices at 77 vVe t "\Vash1ngton Street, Chicago, Illinois. 

SE TION 5. The term "Board " or "Board of 1\fanagers" mean 

the Board of Managers of the Association. 

SE TI x 6. The term "Employee" includ any one engaaed in 

the Indu try in any capacity receiving compen ation for his ervice , irre I ectiYe of the nature or metholl of paym nt of such compen a- tion, except a :M mber of the Indu try. ~ 

(60) 
609 

SECTION 7. The term "Employer" includes any one by whom any 

such employee is compensated or employed. 

SECTION 8. The term "President", "Act", and "Administrator " 

mean respectively the President of the United States, Title I of the 

National Industrial Recovery Act, and the Administrator for 

National Indu trial Recovery. 

AnTrcLE III-,v AaEs 

Sr:cTION 1. The minimum wage that shall be paid to any employee 

engaged in the manufacturi.ng of products of the Industry, and any 

labor incident thereto, shall be as follows: 

(a) No employee shall receiYe a lesser time or piece rate than is 

required to provide the same earnings for 40 hours of labor per week 

as was received for that class of work for a 48 hour week immediately 

prior to :May 1, 1933, provided, however, that no employee shall 

receive less than a minimum of thirty-two cents per hour in the 

Southern ,:v age District, and thirty-fiye cents per hour in the 

Northern ,v age District. 

(b) The Southern ,v age District is defined as comprising North 

Carolina, South Carolina, Florida, Georgia, Alabama, Tennessee, 

:Mississippi, Arkansas, Louisiana, Oklahoma, Texas, Maryland, and 

Virginia, and the Northern ,v age District is defined to include all 

other States in the United States proper, including the Di trict of 

Columbia and Alaska. 

SECTION 2. This Article e tablishes a minimum rate of pay regardless of whether an employee is compensated on a time-rate, piece 

work or other basis. SECTION 3. F emale employees performing substantially the same 

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

employees. 

SECTION 4. Learners without previous experience may be employed 

at a minimum wage of 80% of the above requirements for a period 

of not more than ninety days; provided, however, that the number 

of such learners employed by a member of the industry shall not 

exceed 5% of the total number of all his employees at any one time; 

and provided further, that no employee may be permitted to serve 

in t~e. industry more than once as a " learner " within the a.hove 

prov1s10ns. SECTION 5. A per on whose earning capacity is limited because of 

age or physical or mental handicap may be employed on light work 

at a wage below the minimum established by this Code if the employer obtains from the State Authority designated by the United 

States Department of Labor a certificate authorizing his employment at such wages and for such hours as shall be stated in the certificate. Each employer shall file with the Code Authority a list of all 

such persons employed by him. 

SECTION 6. On and after the effective date, the minimum wages 

which shall be paid by any employer to all other employees shall 

be not less than at the r ate of $15.00 per week. Office boys and girls 

of ~ixteen to and including eighteen years of age, may be paid at 

a rate of not less than 80% of the above minimum wages; but the 

total number of such employees shall not exceed 5% of the total 
610 

number of office employees, provided that the employment of at 

least two such employees by any employer shall be permissible. 

SECTION 7. The hourly rates and salaries for all duties and occupations now paid at more than the minimum herein prescribed, but 

not including salaries of 1nore than $35.00 per week, shall be equitably adjusted by all Members of the industry who have not already 

done so, and in no case shall these rates be decreased. Reports 

concerning the Action taken, whether prior to or affor the approval 

of this Code~ shall be reported to the Code Authority not later than 

sixty (60) ctays after the effective date hereof, and by it reported 

to the Administrator. 

ARTICLE IV-HouRs 

SECTION 1. No employee shall be permitted to work in excess of 

40 hours or six ( 6) days in any one week except as herein provided. 

SECTION 2. Clerical employees shall not be permitted to work 

more than an average of 40 hours per week in any five week period 

SECTION 3. During any peak period in which a concentrated demand upon any division of any Member of the Industry shall place 

an unusual and temporary burden upon its facilities, factory employees of such division shall be allowed to work not more than 48 

hours per week, all hours over 40 hours per week to be known as 

" excess " hours hereunder. 

SECTION 4. The !).Umber of excess hours worked by factory employees in any six ( 6) months period may not exceed a total of 32 

hours to be taken in any six ( 6) weeks during such six ( 6) months 

period and overtime need not be paid for such excess hours. 

SECTION 5. Any factory employee may be permitted to work 8 

additional hours in any one week beyond those specified in the two 

preceding paragraphs, provided such additional hours shall be paid 

for at the rate of time and one-half and provided that no factory 

employee shall be permitted to work more than 48 hours in any one 

week. 

SECTION 6. No employee shall knowingly be permitted to work in 

the aggregate in excess of the above prescribed number of hours, irre pective of whether such employee be on the payroll of more than 

one employer. 

SECTION 7. Nothing in the foregoing employment provisions shall 

apply to executive and supervisory employees who receive $35.00 

or more per week, nor to watchmen, janitors or outside sales or outside delivery men. Outside delivery men shall not be permitted to 

work more than 48 hours in any one week and watchmen and janitor . .. hall not be permitted to work more than 56 hours in any one 

week. 

ECTION 8. A tolerance of ten percent upon the hours specified 

aboye is permitted for employees who act as factory clerks receiving not les than $25.00 per week. The number of such factory 

clerks shall be limited to five percent of the total number of emplo~·ees of any one employer, with a minimum of one in plants 

haYmg twenty or les employees. 
611 

ARTICLE V-GENERAL L ABOR PnovrsroNs 

SECTION 1. .r.,.. o person under 16 years of age shall be employed in 

the industry nor a1n'one under 18 years of age at operations, or 

occupations hazardous in nature or detrimental to health. The 

Code Authority shall submit to the Administrator a list of such 

occupations within 30 days after the effective date hereof. 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 

:ige certificates or permit , showing that the employee is of the 

required age. 

SECTION 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 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) 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. 

( 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. 

SECTION 3. '\Vithin each State this Code shall not supersede any 

laws of such State imposing more stringent requirements on employers as to age of cm.ployees, 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. 

SECTION 4. Employers shall not reclassify employees or duties of 

occupations performed by employees or engage in any subterfuge 

to defeat the purpose of the Act or of this Code. 

SECTIOX 5. EYery employer shall make reasonable proYision for 

the safety and health of his employees at the place and during the 

hours of their employment. Standards for safety and health shall 

be submitted by the Code Authority to the Administrator for 

approval "'IT'ithin six months after the effective date of this Code. 

SECTION 6. All employers hall post and keep posted copies of this 

Code in conspicuous places acce sible to employees. 

\.nncLE YI-RECONSIDERATION OF V{ AGES 

SECTIO~~ 1. It is recognized that this industry is in competition 

with other indu tries operating under other Codes and that there 

mu t be an inter-relationship of wage minimums among these industries in 01 der to pre erYe an equitable ba i of competition. Therefore any revision in minimum wage rate· which may take place in 

the Codes of competitiYe industries shall be considered adequate can e 

for recon~ideration of the ,Yage rates of this Code. Any revi ion which 

may be made shall be subject to the approYal of the Administrator. 

4:;so-1°--12;:;-c~-s-1--2 
612 

ARTICLE VII-ORGANIZATION 

.ADMINISTRATION AND PARTICIPATION 

SECTION 1. To further effectuate the policies of the Act, a Code 

Authority is hereby constituted to cooperate with the Administrator 

in the administration of this Code. 

SECTION 2. The Code Authority shall con i t of the Boar d of 

Managers of the Association, together with one repre entative of 

members of the indn -try who are not members of the Association, 

who assent to this Code and pay their pro-rata share of the cost of 

preparation and administration thereof; and in addition thereto 

the Administrator may, in his discretion, appoint not more than 

three additional member . The appointees of the Administrator 

shall have no Yote. and each appointee shall erve without expen e 

to the Industry. The representative of the non-members of the As~ociation shall be elected by the non-members in any fair manner designated by the Board of Managers and approved by the Administrator. 

SECTION 3. In order that the Code Authority shall at all times 

be truly representative of the industry, and in other respects comply with the provision of the Act, the. Administrator may prescribe 

such hearings a he may deem proper, and thereafter if he shall 

find that the Code Authority is not truly representative or does 

not in other re pects comply with the provision of the Act, he 

may require an appropriate modification in the method of selection 

of the Code Authority. Within 30 days after the effective date 

of this Code, and not later than April 1, 1934, the Board of Managers shall cause a special meeting of the Members of the Association to be held for the purpose of electing a Board of Managers 

of the As ociation who e terms shall extend until the next annual 

meeting of the members of the Association. 

SECTION 4. Members of the industry shall be entitled to participate in and share the benefits of the activities of the Code Authority and to participate in the selection of member thereof by a senting to and complying with the requirements of thi Code and 

su -taining their rea. onable share of the expenses of the preparation 

and administration thereof, to be determined by the Code Authority~ 

subject to review by the Administrator on the ba is of volume of 

bm-iness and/ or . uch other factor as may be deemed to be equitable. 

The Trea urer of the A. sociation shall bill each as en ting member 

with hi proportionate share of the expense of the preparation and 

administration of thi Code. ,vithin fifteen day of such billing 

the member shall pay the amount of such billing to the Treasurer of 

the A sociation for the benefit of the Code Authority. 

Sr:cTio:x 5. Nothing contained in this Code hall con titute the 

members of the Code Authority partner for any purpo e. Nor 

shall any l\lember of the Code Authority be liable in any manner to 

any per on for any act of any other member, officer, ag nt, or employee of the Co le Authority. Nor hall any l\iember of the Code 

Authority, exercising rea. on able diligence in tl e conduct of his 

clutie. hereun(1er, b2 liable to anyone for any .!lCt or omi · ion to act 

nn 1er this Code, exc pt for his °' ·n willful rni foas::mce or non- feasance. 
613 

SECTION 6. The Code Authority shall have the follovYing powers 

and duties, the exerci e of which shall be report cl to the Admini. - trator and shall be subject to hi. right, on reYiew, to approve or 

disapprove any action taken by the Code Authority: 

(a) To insure the execntion of the provisions of thi. Code and 

provide for the compliance of the Indu try ,vith the proYision of 

the Act under u h rule and regulations a. may Le e ·tabli hed by 

the Administrator. 

(b) To adopt by-la" and rules and regulation. for it procedure 

and for the administration and enforcement of the Code. 

( c) To receiYe and inve tigate complaints and to attempt to adju t the ame in accordance with law under such rule and regula- tions a may be prescribed by the Admini trator. 

( cl) To repre ent the Industry in conferring ,Tith the Presi lent 

or his agents, with respect to the Administration of thi Code and 

in respect to the Act and any regulations issued thereunder. 

(e) To obtain from l\fcmbers of the ·Industry ~nch information 

and reports as are required for the administration of the Code 

and to provide for submi ion by mernbvr of ·uch information and 

reports as the Administrator may deem necessary for the purposes 

recited in Section 3 (a) of the Act, which information and reports 

shall b 0 submitted by members to such administrati,Te and/ or government agencies as the Admini trator may designate · provided 

that nothing in this Code shall relieve any l\fember of the Industry 

of any existing obligations to furnish reports to any government 

agency. No individual reports shall be disclosed to any other 

l\1ember of the Industry or any other party except to such governmental agencies as may be directed by the Administrator. All 

such report shall be received on behalf of the Code Authority 

by the Executive Secretary of the A sociation, and at the request 

of any member his reports shall be kept confidential except a above 

provided. 

(f) To u e ~uch trade association and other agent'ies a it deems 

proper for the carrying out of any of it activities provided that 

nothing herein shall relieve the Code Authority of its duties or 

re ·pon ·ibilities under this Code, and that such trade a ociations 

and agencies hall at all times be subject to and comply with the 

pro,·i ion~· hereof. 

(g) Each trade or industrial as ociation, directly or indirectly 

participating in the c:election or activities of the Code Authority 

shall (1) impo~e no inequitable restrictions on member hip and (2) 

submit to the Administrator true copies of it article of as ociation or incorporation, by-laws, regulation , and any amendments 

"·hen made thereto, together with uch other information a to 

member hip oro-anization, and activities a the Administrator may 

deem neces ury to effectuate the purpo e of the A t. 

(h) To make recommendation to the Admini -trator for the 

coordination of the Admini tration of thi Cod with nch other 

Code if any, a may be related to the Industry. 

(i) To secure from members of the Indu try an equitable and 

proportionate payment of the reasonable expen~e of maintaining 

the Code Authority and its activities. 
614 

(j) To cooperate "·ith the Administrator in regulating the use 

of any N .R .... . insignia solely by those l\1embers of the Industry 

who have assented to, and are complying with this Code. 

(k) To recommend to the Administrator further fair trade practice provisions to goYern l\fembers of the Industry in their relations with each other or with other industries, and to recommend 

to the Administrator measures for industrial planning, including 

tabilization of employment. 

SECTION 7. If the Administrator shall determine that any action 

of the Code Authority or any agency thereof may be unfair or unju t or contrary to the public interest, the Administrator may 

require that ·u h action be suspended to afford an opportunity for 

in-vc tigation 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 unless 

he ·hall fail to disapprove after thirty days' notice to him of intention to proceed with such action in its original or modified form. 

ARTICLE YIII-STANDARDS AND :MARKETING 

SECTION 1. The Code Authority shall from. time to time specify 

and define, subject to the approval of the Administrator, the Products which are to be considered the standard products of the 

Industry. 

SECTION 2. The Code Authority shall, as soon as practicable, prepare minimum standards of quality for the standard products so 

specified, and after approval by the Administrator and the publication of such standards by the Code Authority, no l\1ember shall 

manufacture or sell a Product below such standards. The Code 

Authority shall have the right to change such standards from time 

to time subject to the approval of the Administrator. 

SECTION 3. Any Product which is a standard product of more than 

one l\1ember, shall be subject to a definite codification by the Code 

Authority, which codification shall appear on all tags, packages and 

invoices relating thereto and other appropriate places. This may 

be accompanied by the member's own trade name and description 

in addition thereto. 

SECTION 4. On any uch standard product, material specifications 

shall be determined by th Code Authority, and any variation from 

such specifications must be noted on tags, packages, and invoices, 

relating thereto. 

SECTION 5. The Code Authority shall pre cribe rules and regulations pro-viding for the sale of surplus in-ventories, discontinued 

line and Products "·hich are not up to specifications of sale or do 

not comply "ith the minimum standards as herein set forth, where 

such goods are not sold on contract. Such rules and regulations 

shall be effectiYe upon approval by the Administrator. No Member 

of the Industry shall sell any goods in any of the classes hereinabove 

described for the purpose of violating the provisions of this Code 

or of defeating the purposes of the Act or except in full compliance 

with uch rules and regulations. 
615 

ARTICLE IX-TER~IS 

SECTION 1. Maximum terms for the Industry shall be two percent 

cash di count on all invoices dated between the first and fifteenth 

cf the month if paid on the twenty-fifth of the same month and on 

invoice dated between the sixteenth and thirty-first, if paid on the 

tenth of the following month. All invoices shall be dated as of the 

date of shipment. 

SECTION 2. Cash discounts shall not be allowed if not earned. 

Cash discounts may only be earned by payment in cash or equivalent, but not in trade acceptances, notes or other evidences of indebtedness. Due to possible mistakes in mailing of payments or otherwise, three ( 3) days grace may be extended to customers for the 

earning of cash discounts, in which event date of payment must 

be considered date of postmark. 

SECTION 3. A carload buyer entitled to a carload discount shall 

be construed as one who places at one time an order for a minimum 

of twenty thousand pounds of the products of this industry. Such 

carload quantity, defined as above, may be divided into several 

shipments, but the entire carload quantity shall be entirely hipped 

within fifteen days of the date of the first shipment. If partial 

shipments of a single carload order are made, they shall be identified 

and marked on each invoice: "Partial shipment on carload order". 

The carload discount shall be allowable only after the completion 

of shipment of the entire order within the time herein limited, and 

as a credit against the invoice for the last shipment. No buyer who 

is not a carload buyer, as herein defined, shall be entitled to any discount other than cash discounts. 

SEorION 4. Notes are to bear legal interest payable at place o:f 

maker in all cases. 

SECTION 5. If the original terms of sale shall so provide, trade 

acceptances which are due within sixty ( 60) days of date of invoice 

without interest may be accepted as payn1ent, provided no cash discount is allowed; all trade acceptances shall be dated the date of 

shipment. All notes given in renewal of trade acceptances, shall 

bear interest at the legal rate payable at the place of business of 

the maker. 

SECTION 6. Every Member shall charge and make a reasonable 

e:ff ort to collect interest at a rate of not less than 6% per annum or 

the legal rate on all purcha es not paid for by the cu tomer within 

sixty (60) days following date of invoice, but ten (10) days grace 

thereafter may be allowed before interest shall be charged. 

ECTION 7. All customers whose accounts are unpaid within sixty 

( 60) days after the date of invoice, shall be reported on the 10th day 

of each month to the Code Authority for compilation. into protective credit reports to be furnished to all ~fembers "ho have assented 

to thi Code, and have contributed to the expense of administration 

thereof, as herein provided. In the event that an accmmt is in dispute, the report shall so indicate. An account eYidenced b:v any trade 

acceptance, note or payment other than by ca h or check, shall be 

con idered unpaid, but hall not be considered delinquent prior to 

maturity of such in truments. 
616 

ARTICLE X-" PUBLICATION OF PRICES 

SECTION 1. Each Member shall, within five days after the effective 

date of this Code, file with the Code Authority a published list showing sales prices and carload discounts for all of its products, as 

defined by this Code, and from and after the expiration of such five 

days, such member shall at all times maintain on file, with the Code 

Authority, such a list and shall not make any change in such list 

except as may be hereinafter provided. All published prices shall be 

f.o.b. plant of seller. Each such published list shall become effective 

ten days after the date of filing with the Code Authority, provided, 

however. that the first list filed by any manufacturer as to any such 

products, as above provided, shall take effect on the date of filing 

thereof. All price lists shall be forwarded from the main office of 

each member, by registered :mail, and the date of mailing shall be 

considered the date of filing. ,vhenever any price list shall be filed 

with the Code Authority, the same shall be made available to all 

persons interested therein upon request. 

SECTION 2. No published list filed by any member as herein provided, shall be changed except by the filing by such member of a 

new published list, which shall become effective ten days after the 

date on which such new list shall have been so filed. 

SECTION 3. Whenever a member shall file a new list with the Code 

Authority, such member shall not sell such products on the basis of 

such new list until it shall have been on file for ten days with the 

Code Authority, except as herein otherwise provided.1 

SECTION 4. ,vhenever any member shall file with the Code Authority a new published list for any Product, it shall be the duty of 

the Code Authority to immediately n1ail to each Gther member of the 

Industry, who has assented to the Code and has paid its proportionate share of the expense of the preparation and administration of 

this Code, a copy of such portions of such new list which apply to 

any Product manufactured by such other Member, and thereupon 

any other Member 1nay, if it shall so desire, file a revision of its list 

of the same or similar competing Product to meet the initial change, 

which, at the option of such Member may become effective upon the 

date when the new list first filed with the Code Authority shall go 

into effect, and like notice shall be given by the Code Authority of 

any further new lists so filed by any other Member. 

SECTION 5. The Code Authority shall cause to be :formulated an 

accounting system and methods of cost finding and/or estimating 

capable of use by all Members of the Industry. After such system 

and methods have been formulated and approved by the Administrator, full details concerning them shall be made available to all 

Members. Thereafter all Members shall determine and/or estimate 

costs in accordance with the principles of such methods. The pricing 

and/ or selling by any :Member of the Industry of any Product below 

cost as determined in accordance with the principles of such methods 

is aa unfair method of competition and .a violation of this Code, 

except as provided in Section 7 of this Article X. 

SECTION 6. The Code Authority may require any member of the Industry to submit data as to the cost of production of any of the prod1 See paragraph 2 or Ol'der approving this Code. 
617 

ucts for which prices have been filed, as such ost shall have been 

determined pursuant to Section 5 of this Article, and may, for purposes of verification of the accuracy thereof, examine so much of the 

pertinent books and records of such Member as may be required to 

verify such statements. Notification shall be given to all otlF'r members of the Industry in the event such data jg required. If the Code 

Authority determines that a filed price violates the provisions of 

Section 5 of this Article, such price shall thereupon become noneffective and the Code Authority shall immediately notify such :Member 

of its conclusions and such Member shall immediately file a new 

price list which complies with said provisions of Section 5 of this 

Article. All decisions of the Code Authority under this Section, together with the reasons therefor, shall be filed with the Administrator 

and shall be subject to suspension or cancellation. 

SECTION 7. Selling below cost to meet any existing lawful competition on Products of equivalent design, character, quality or specifications, shall not be deemed a violation of this Code, and shall at all 

times be permitted. It shall be lawful to meet any published net 

price for any Product filed by any Member with respect to which the 

Code Authority shall not theretofore have begun an investigation, as 

provided in Section 6 of this Article. Whenever any new l~st shall 

be filed by any Member as to any Product pursuant to Sect10n 6 of 

this Article, it shall be the duty of the Code Authority to notify each 

Member assenting to and complying with the Code, of the filing of 

such new list, and it shall be the further duty of the Code Authority 

to notify each :Member so assenting to and complying with this Code, 

as soon as practicable and not later than ten days after the filing of 

such new list, whether or not it has been accepted as complying with 

Section 6 by the Code Authority, or is subject to investigation; and 

whenever any Member shall file or desire to file a new list for any 

Product to meet a previously filed list, it shall be the specific duty of 

the Code Authority to at once notify the ~fember whether or not an 

investigation has been begun as to the propriety of such first filed 

list. And if at any time after the filing of competing lists, an investigation shall be begun by the Code Authority as to the propriety of 

the list first filed, like notice shall be given to all ~!embers who have 

met the competition afforded by such li t with re pect to which such 

inve tigation shall have been begun. Whenever any list shall be withdrawn by any Member after complaint by the Code Authority, or 

the operation of such list shall in any manner be re trained, then all 

publi heel li t theretofore filed to meet such improper list, shall, 

upon notice from the Code Authority, likewise be withdrawn. In 

order that each ~lember shall be allowed to meet all lawful competi- tion, it shall not be necessary that the list filed by each 1fember shall 

.show that the ame hall prevail in all areas, zones and territories, 

but each list filed by any ~fember, or any revision thereof or Rmend- ment thereto may make . pecific provision to meet any lawful competition offered to the fember in any named area, zone, or territory. 

But nothing herein contained shall be con. trued to prevent any 1fem- ber from selling any Product at a price not b low uch ~{ember's 

cost, determined as set forth in Section 5 hereof. 

SE TION 8. Items bearino- extras hall be sold at prices which 

include for nch extras, addition ' to pubh. heel prices at not less 
618 

than the :Member's individual cost for such extras. "Extras" 

means better quality materials, or features additional to those 

specified for the Product for which the price list was filed. 

SECTION 9. "\Vhene,er it shall be necessary for the Code Authority to act under any provision of this Code, the votes of the members 

of the Code Authority upon any i sue may be received by the Code 

Authority by telephone, telegraph, orally or in writing, or in any 

other manner set forth in the By-Laws to be adopted by the Code 

Authority. Administration Th1embers of the Code Authority shall 

be advised forthwith of any such action. 

ARTICLE XI-UNFAIR TRADE PRACTICES 

SECTION 1. No Member shall sell or exchange directly or indirectly 

by any means whatsoever any Product of the Industry at a price 

lower or a discount greater or on more favorable terms of payment 

than that of his published list in effect the date the order for such 

sale or exchange was accepted, nor shall he invite or consider offers, 

tenders, or orders at a price below his list effective at the time of 

such offer, tender or order, provided, however, that any Th1ember 

shall at all times be allowed to make an allowance for equalization 

of freight as against the most fa-vorably situated competitor. 

SECTION 2. "\Vhere two or more Products of the Industry are 

sold in combination, each Product must be separately priced and 

sold. No allo"ance shall be made upon the price of any one Product by reason of the purchase of any other Product in combination 

with the first. 

SECTION 3. No Th1ember shall sell a Product of the Industry in 

combination with merchandise which is not a Product of the Industry, except where such merchandise shall be separately sold and 

separately priced. 

SECTION 4. No Member shall condition the sale of one class of 

Product to a customer upon the agreement of such purchaser to purchase other Products or other merchandise made or sold by the 

same Member. 

SECTION 5. After the effective date of the Code, no :Member shall 

take any order for the delivery of merchandise at any period 

beyond ninety days from the mah."'ing of a contract for the sale 

thereof, and every contract for the delivery of merchan_dise beyond 

thirty days from the date of making such contract shall be in writing signed by the purchaser, and shall be for a specific quantity of 

merchandise. 

SECTION 6. All sales shall be invoiced at the time of shipment, 

and records pertaining to such sales shall dearly and accurately 

state all the essential elements of the sale. 

SECTION 7. The following practices constitute Unfair Th1ethods of 

Comr etition for the Thiembers of the Industry, and a violation of 

this Code: 

A. Branding or marking or packing any goods in any manner 

which is intended to or loes deceiYe or mislead purchasers with respect to the brand, grade, quality quantity, origin, size, sub tance, 

character, nature, finish, material content or preparation of uch 

goods. 
619 

B. (1) Falsifying, by omission or otherwise, books of account, 

orders, acknowledgment of orders, invoices, statements of account 

wi~h regard to quantity, quality, weights, proper descriptions or 

prices. 

(2) Falsifying cost records or omission therefrom of essentia.I fac-- tors of cost as required by Article X, Section 5. 

C. Inducing or attempting to induce, breach of existing contract 

between competitors and their customers by any false or decepti e 

means whatsoever, or obstructing the performance of any such contracts by any such means, with the purpose and effect of hampering,_ injuring, or embarrassing competitors. 

D. Obtaining confidential information concerning the bu iness of 

a competitor by a false or misleading statement or representation, or 

by a false impersonation of one in authority. 

E. Guaranteeing any purchaser against a decline of price. Guaranteeing any purchaser or prospective purchaser against an advance 

in price; provided, however, that nothing in this Section contained 

shall exclude the making of a bona fide contract for future delivery; 

where such contract is mutually binding upon the seller and purchaser, and is for a specific quantity of merchandise, as hereinbefore 

provided. 

F. Making wilfully false state.ments as to a competitor's character or products or ability to perform, or financial status. 

G. (1) Paying or allowing, in the form of money, products, or 

otherwise, unearned rebates, refunds, credits or discounts. 

(2) Extending services or privileges to any purchasers not extended to all purchasers und<:ff like terms and conditions. 

H. Accepting the return of merchandise for credit, exchange, or 

otherwise except where claim has been made to the dea.ler within 

sixty days after shipment by the dealer, and/or except where permitted by clauses under" Guarantee" to the extent there permitted. 

I. Granting extra discount or additional interest for anticipation 

of/roper payment date . . Granting a discount based on cumulative quantities ordered 

over a given period. 

IC Post-dating or pre-dating quotations, orders, invoices, statements or other sales documents. 

L. Consigning of merchandise, or any method of selling or 

exchanging the same which has the effect of selling on consignment 

or memorandum. 

SECTION 8. No Member of the Industry shall give, permit to be 

given, or directly offer to give, anything of value for the purpo e 

of influencing or rewarding the action of any employee, agent or 

representative of another in relation to the business of the employer 

of such employee, the principal of such agent, or the represent d 

party, without the knowledge of such employer, principal or party. 

This provision shall not be construed to prohibit free and general 

distribution of articles commonly used for advertising except insofar 

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

SECTION 9. Any deviation from or violati n of the provisions of 

this Code by any Member of the Inclu try. either directly or 

indirectly through a distributor, shall be considered an unfair 
620 

method of competition and a violation of this Code by such Member. 

By distributor as used in this Section, it is intended to include 

dealers, salesmen, sales agents and any other person authorized to sell 

or to negotiate sales of Products of the Industry on behalf ..of any 

l\1ember. 

SECTION 10. Nothing in this Code shall limit the effect of any 

adjudication by a Court of competent jurisdiction or a holding by the 

Federal Trade Commission on complaint, finding or order that any 

practice or method is unfair. 

ARTICLE XII-MONOPOLIES 

No provision in this Code shall be so applied as to permit monopolies or monopolistic practices; or to eliminate, oppress, or discriminate against small enterprises. 

ARTICLE XIII-AMENDMENTS AND MODIFICATIONS 

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

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

provisions of Sub-section (b) of Section 10 of the National Recovery 

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 condition imposed 

by him upon his approval thereof. 

SECTION 2. This Code, except as · to the provisions required by 

the Act, may be modified on the basis of experience or changes in 

e;jrcumstances, such modification to be based upon application to 

the Administrator and such notice and hearing as he shall specify, 

and to become effective on approval of the President. 

SECTION 3. If the Code Authority shall desire to propose an amendment to the Code, it shall first approve any such amendment, and shall 

submit the proposed amendment to the Members of the Industry, 

who shall thereupon vote upon said proposed amendment at a special 

meeting to be called for that purpose, at which meeting voting may 

be by proxy. In voting upon any amendment so submitted by the 

Code Authority there shall be two separate and distinct ballots 

thereon as follows : 

(a) Each Member voting shall be entitled to cast one vote upon 

the said amendment, which vote shall be known as the "Member 

Vote". 

(b) In addition to the " Member Vote " each Member voting 

shall be entitled to cast one separate and distinct vote or votes for 

each dollar of gross sales of such Member for the proceeding semiannual period of January to June inclusive, or July to December 

inclusive. This vote shall be known as the "Volume Vote". 

In order to receive approval any such proposed amendment shall 

receive the affirmative vote of (a) at least two-thirds of the "Member Votes " cast, and in addition thereto (b) at least two-thirds of 

the "Volume Votes" cast, both separately considered. If such proposed amendment shall be approved in the manner above set forth, 

the Code Authority shall submit such proposed amendment to the 

Administrator. 
621 

SECTION 4. Whenever the Code Authority shall be of opinion that 

the application of any provision of this Code in any particular case 

or instance works an undue hardship, the Code Authority may apply 

to the Administrator for an exemption or exception as to such particular case or instance, and upon the allowance of such exemption 

or exception the Code Authority may take, allo,, or permit such action as is not inconsistent with the exemption or exception allowed by 

the Administrator; but this paragraph shall not apply to any provi ion of this Code required by the Act. 

ARTICLE XIV-PRICE l NCREA ES 

vVhereas the policy of the Act to increa e real purchasing power 

will be 111,.'1,de impo ... ible of consummation if prices of goods and 

services increase as rapidly as wages, it is recognized that price increases be delayed and that, when made, the same hould, so far as 

reasonably possible, be limited t o actual increases in the seller's 

costs. 

ARTICLE XV-EFFECTIYE DATE 

This Code shall become effective on the fifth calendar day after 

its approval by the President. 

Approved Code No. 329. 

Registry No. 1154-01. 

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UNIVERSITY OF FLORIDA 

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