NATIONAL RECOVERY ADMINISTRATION

CODE OF FAIR COMPETITION

FOR THE

CREPE PAPER INDUSTRY

AS SUBMITTED ON AUGUST 30, 1933

REGISTRY No. 405-13

The Code for the Crepe Paper Industry

in its present form merely reflects the proposal of the above-mentioned

industry, and none of the provisions contained therein are

to be regarded as having received the approval of

the National Recovery Administration

as applying to this industry

llk, MEMBER

5 

U.S.

WE DO OUR PART

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1933

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

GENERAL CODE OF FAIR COMPETITION FOR THE CREPE

PAPER INDUSTRY

To effectuate the policies of Title I of the National Industrial

Recovery Act the following is hereby established as a Code of Fair

Competition for the Crepe Paper Industry.

ARTICLE I-DEFINITIONS

The words used herein are hereby defined as follows:

" Industry "-The manufacture in the United States of plain

crepe paper in bulk, package, and/or Jumbo rolls, (single, duplex,

or triplex) ; printed crepe paper, stock or special including borders;

crepe shelf paper; crepe paper streamers, plain or printed.

" Member "-A person engaged in such industry.

" Crepe Paper Industry Authority "-The Body herein created

charged with authority to administer this code.

"Act "-The National Industrial Recovery Act.

"Administration "-The National Industrial Recovery Administration.

"Administrator "-The National Industrial Recovery Administrator."

" Person "-Includes partnerships, corporations, and associations,

except associations not for profit.

ARTICLE II-CREPE PAPER INDUSTRY AUTHORITY

1. There is hereby created a body to be known as the Crepe Paper

Industry Authority which is charged generally with the duty of

administering this code and shall have such other powers and duties

as are hereafter prescribed.

2. The Crepe Paper Industry Authority shall consist of Executive

Committee of the National Crepe Paper Association of America,

Executive Manager, and of three additional members designated by

the Administrator; members so designated shall have no vote but in

all other respects shall be members of said Crepe Paper Industry

Authority.

ARTICLE III-EMPLOYMENT

1. On and after the effective date of this Code employers in this

industry shall not operate on a scale of hours of labor for their

employees engaged in the manufacture of their products except

supervisory staff, mechanics, and others engaged in the preparation,

care, maintenance, and repair of plant, machinery, and facilities of

and for production, watchmen, cleaners, truck drivers, and helpers in

excess of forty (40) hours per week or more than eight (8) hours in

any one day, provided, however, that to meet seasonable requirements

8667-33 (1)
or emergencies manufacturers may work labor in excess of such

maximum hours seventy-two (72) hours overtime for an individual

worker within any one calendar year within the further provision

that in no case shall the overtime exceed eight (8) hours in any one

week.

2. On and after the effective date of this Code the maximum number of working hours of all employees engaged in clerical and general

office work in this industry shall be eight (8) hours a day and forty

(40) hours per week except supervisory staff, watchmen, cleaners,

bookkeepers, and accountants, and persons engaged in the servicing

and repair of inside and outside equipment carried on in connection

with sales activities. It is provided, however, that individuals engaged in clerical and general office work may work a maximum of

eight (8) hours of overtime in any one week provided that the individual works a corresponding amount of undertilne in succeeding

weeks within the next succeeding six weeks, with the further provision that in no case shall the individual worker exceed an average of

forty (40) hours per week within each six-week period. The provisions of this paragraph shall not apply to salesmen or to persons

employed in branch offices where not more than two persons are

engaged in clerical or general office work, or in branch warehouses

where not over two (2) men are employed in general warehouse

work.

3. The minimum wage for all employees engaged in the manufacture of the products of this Industry (except learners during

two (2) months apprenticeship or semipensioners) who are compensated on a time or piecework basis shall be not less than thirty

cents (30() per hour for females and thirty-five cents (35#) per

hour for males. In the following states named in this paragraph

a differential of five cents (50) below the respective hourly rates

above mentioned will be permitted: North Carolina, South Carolina,

Georgia, Florida, Alabama. Mississippi. Louisiana, Tennessee.

4. The minimum compensation of all other employees in this

Industry in any department or branch of the business (except learners during three (3) months' apprenticeship or semipensioners shall

be: Not less than twelve dollars ($12.00) per week for an average of

forty (40) hours per week within any six-week period.

5. Maximum hours of labor shull not apply in cases of emergency

for protection of property.

6. Employers shall not reduce the rate of compensation per hour

for employment now in excess of the minimum rates above specified.

7. Each employer will furnish the Association duly certified reports in such form as may hereafter be provided showing actual

hours worked by individuals or occupational groups or employees

and wages paid the various occupational groups.

8. Employees shall have the right to organize and baugain 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 of protection; no employee and no one seeking employment shall be required as a, con-
dition of employment to join any company union or to refrain from

joining a labor organization of his own choosing.

9. Nothing in this Code is to prevent the selection, retention and

advancement of employees on the basis of their individual merit with

re or nonaffiliation with any labor organization.

10. No one under sixteen (16) years of age will be employed in

this industry.

ARTICLE IV-HOURS OF OPERATION OF MACHINERY

On and after effective date no employee shall operate crepe machines for more than one hundred forty-four (144) hours per week.

ARTICLE V-TRADE PRACTICE RULES

The industry adopts the following trade practice rules, the violation of which shall be deemed to be unfair methods of competition

in commerce within the meaning of the Federal Trade Commission

Act as amended, and a violation of this code.

1. Sellnbg below cost.-The selling of any crepe paper or crepe

paper products below the average cost, as determined on the basis of

uniform principles of accounting, shall constitute unfair competition.

Cost is defined as including all cost at the time of delivery to the

buyer, including among other items all materials, waste, cost of rejections, allowances and seconds, and labor and overhead costs, as

well as all charges such as interest on capital invested, salesmen's,

agents or brokers' commnissions, depletion, obsolecence, and proper

reserves.

2. Publication of and adh ereice to prisce..-Manu fact urers will

strictly adhere to their published prices, differentials, and terms,

and each manufacturers will publish and file his com-plete price lists

with all differentials and terms with the Secretary of the National

Crepe Paper Association of America.

3. Cowpleteness of contract.-The making of incomplete, ambiguous, and deceptive contracts provides a medium for making

unfair and discriminatory prices, induces fraud and repudiation

thereof, gives rise to disputes, and disturbs stability in business operations, and it is, therefore, declared that all contracts for the sale

of products falling within the field of this Code shall contain a

definite and true statement of the product covered, price, quantity,

terms of payment, place of delivery, date, name of purchaser, and

all other items necessary to form a complete contract, and that all

contracts so entered into shall be in conformity with this Code and

performed in letter and spirit. It is further declared that in order

to carry out the foregoing, all invoices shall contain a full statement o! all facts necessary to make such invoice a full and complete

record of the transaction represented on the face thereof, and such

invoices and all books of record pertaininig thereto shall be available

at all times to such authorized officers or agents of the group association within whose scope the product covered by such contract

shall fall, or to an authorized accounting firm as may be determined

by such association.
4

4. Inducing breach of contract.-Inducing or attempting to induce

the breach of a contract between a competitor and his customer

during the terms of such contract is an unfair method of competition.

NoTE.-Whenever notice of the existence of a contract is brought

to the attention of any person, he shall promptly discontinue all

efforts which might induce a contracting party to break such

contract.

5. Repudiation of contracts.-Contracts are business obligations

which should be performed in letter and in spirit. The repudiation of contracts by seller on a rising market, or by buyer on a

declining market, is equally reprehensible. Such action shatters

confidence, induces violent fluctuations in price, destroys stability

in business operations to the consequent injury of the industry, as

well as to the general public, and is an unfair trade practice.

6. Invoicing less quantity than actual shipment.-The practice of

invoicing a less quantity than the actual amount shipped is an unfair

trade practice.

6a. Premiums or free goods.-Premiums or free goods which constitute a reduction in price is an unfair trade practice.

7. Cocrcion.-The practice of compelling the purchase of one or

a group of products, as a condition to the purchase of a desirable

item, is an unfair trade practice.

8. Selling goods on consignment shall constitute a violation of

this code.

9. No manufacturer, agent, or wholesaler shall be permitted to

offer or sell to the retail trade for advertising or any other purposes, merchandise at a price less than the industry of that class

of merchandise has established as a fair wholesale price for it.

10. Selling of merchandise at a price reduced from a fictitious

or any unreasonably marked-up prices, will constitute a violation

of this code.

11. Not to permit bribcry.-It is the opinion of the industry not

to permit the secret gift of any commission, gratuity, or any other

thing of value to employees of concerns to whom we sell; and we

further agree not to allow our salesmen expense money for any

other purpose than for legitimate expenses, and not to permit any

funds to be dispensed in any unethical way to influence business.

12. Advertising, deceiving purchasers.-Advertising by use of

printed word or pictorial representation, or radio, or otherwise for

the purpose of, or with the effect of misleading or deceiving purchasers with respect to the quantity, quality, grade, or substance of

goods purchased, is an unfair method of competition.

13. Securing information from competitors concerning their business by false or misleading statements or representations or by false

impersonations of one in authority, or securing information concerning competitor's business by bribery of their employees, and

the wrongful use thereof to unduly hinder or stifle the competition

of such competitors is an unfair trade practice, and a violation of

this Code.

14. Imitation of trade marks or trade names.-The imitation of the

trade mark or trade name of a competitor results in the deception

of buyer and consumer, is an invasion of the property rights of

such competitor, and is an unfair trade practice.
5

15. Enticement of employees.-Interference with competitor's business through the enticement of an employee from his employment is

an unfair trade practice.

16. Defamation of competitor or disparagement of his goods.-The

defamation of a competitor by words or acts imputing to him dishonorable conduct, inability to perform contracts, or questionable

credit rating, or the false disparagement of the grade of quality of

his goods is an unfair trade practice.

17. Threats of suit for patent or trade-mark infringement.-The

circularization of threats of suit for infringement of patent or trade

mark among customers of a competitor, not made in good faith

and for the purpose of harassing and intimidating customers, is an

unfair trade practice. The owner of a patent or trade mark should

in fairness deal directly with the alleged infringer rather than

attempt to intimidate his customers.

18. Use of inferior materials.-The use of any inferior materials

which tends to bring crepe paper and crepe paper products into disrepute or to defraud the buyer or the public, is an unfair trade

practice.

19. Secret rebates.-The secret payment or allowance of rebates, refunds, commissions, credits, or unearned discounts, whether in

the form of money or otherwise, or secretly extending to certain purchasers special services or privileges, not extended to all purchasers

under like terms and conditions, constitutes a violation of this Code.

20. Guarantee against decline.-Guaranteeing either dealers' or

wholesalers' floor stock against decline from price shall be an unfair

trade practice.

21. Misb randin g.-Mismarking, misbranding, or misrepresentation of goods shall be an unfair trade practice.

22. Deliveries not conforming to sample or order.-The practice

of shipping or delivering products which do not conform to the

samples submitted or representation made prior to securing the

order constitutes a violation of this code.

23. Deviations from standards.-Deviation from the established

standards of the industry by any deceptive or false means or device, with the effect of misleading or deceiving purchasers or prospective

purchasers, constitutes a violation of this code.

24. Guarantee to sell below competitors' published or known

prices.-The use of or participation in the publishing or broadcasting of any statement or representation, which lays claim to a

policy or continuing practice of generally underselling competitors, is an unfair and uneconomical practice and is a violation of this code.

Seconds and close-onuts.-The selling of obsolete, damaged or rejected crepe paper as seconds shall be limited to a. period of six

months from the date of this code. Further extensions may be

granted by action of the Executive Committee with the approval

of the membership as a whole. During this period (six months)

seconds can be sold only to jobbers and converters.

Bulk crepe paper for resale.-All sales made by any one jobber, broker, commission broker, display company, or manufacturer to

be made at not less than the manufacturer's published price list, the

price governing the quantity to be shipped, billed, and delivered at

one time according to manufacturer's published price list.
6

Pricing.-No manufacturer shall deduct the 2% discount from

prices when quoting to a customer.

Length of crepe paper.-The maximum length of a standard fold

of paper shall be ten feet four inches. This additional four inches

is given to allow for contraction in the paper.

(reping ratios.-The following are the standard creping ratios

which are most generally in use and we recommend them for

adoption:

21 to 1, 150% Stretch.

214 to 1, 125% Stretch.

2 to 1, 100% Stretch.

1'4 to 1, 75% Stretch.

112 to 1, 50% Stretch.

114 to 1, 25% Stretch.

Standards of tissue.-The basis weight of tissue shall not be more

than 10.44 lbs. to ream 24" x 36", with 5% tolerance, and for each

half point additional weight an up-charge of not less than 200 per

gross shall be made.

Swatches, electros, anid catalogues.-It shall be a fair trade practice to furnish customers with sample swatches or printed inserts of

regular grade of crepe paper. Advertising electros also furnished

without charge. It shall be an unfair trade practice to defray all or

any part of a catalogue cost.

Minbni . waqe sca/e.-Minimui wage rates are as follows:

Crepe machine operators, $.62% per hour.

Color mixers, $.6,21 2 per hour.

Crepe Cutters, $.371 2 per hour.

Crepe Packaging, $.371 per hour.

ARTICLE VI-PRICE SCHEDULE

1. Each manufacturer must publish a price schedule with differentials between sales in various quantities, such schedules to be

based oni manufacturers' weighted costs of all materials at prevailing

market price.

2. All sales made to a jobber, broker, commission broker, or manufacturer to be made at the price governing the quantity to be shipped, billed, and delivered at one time to one point of destination.

3. Orders taken from a number of customers to be pooled, shipped, and billed to one customer or each individual customer must be sold

at the price prevailing for the quantity delivered to each customer,

whether sold by a manufacturer, broker, commission broker, or

jobber.

4. Contracts may not be made covering a quantity of napkins, applying quantity price and splitting billing or delivery.

5. No sales to be made direct to large consumers buying direct

from manufacturer, unless they be made at the price prevailing for

quantity shipped and delivered at one time, and one destination, and

according to zone of ultimate destination.

6. No drop shipments to be made to jobbers' customers unless they

be made at the price prevailing for quantity shipped f.o.b. mill, and

according to zone of ultimate destination.
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ARTICLE VII-ARBITRATION

The industry recommends its approval of the practice of handling

disputes in a fair and reasonable manner, coupled with the spirit

of moderation and good will, and every effort should be made by the

disputants themselves to arrive at an agreement. Any complaints, differences, controversies, or questions of unfair competition arising

under or out of this Code, or concerning the interpretation or application of any provisions thereof, shall be determined in accordance

with the procedure outlined in the articles of the National Crepe

Paper Association of America.

This Code shall be in full force and effect when signed by Executives with power to act for the following firms in this industry:

And approved and accepted by the President of the United States.

Nothing herein contained shall be construed to hinder or prevent

any party to the foregoing from making application or having recourse to a Court of Lawv or Equity.

We and each of us, representing at least 75% of the concerns

in the industry of manufacturing crepe paper and crepe paper

products, hereby agree and pledge ourselves to a full performance of the provisions of this Code of Fair Competition under the

National Industrial Recovery Act as passed by the Congress

June 13, 1933, ac signed by the President of the United States

June 16th, 1933.

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