Approved Code No. 167 Registry No. 406-03

NATIONAL RECOVERY ADMINISTRATION

CODE OF FAIR COMPETITION

FOR THE

SET UP PAPER BOX

MANUFACTURING INDUSTRY

AS APPROVED ON DECEMBER 18, 1933

BY

PRESIDENT ROOSEVELT

MEMBER

R

W5 DO OUR PART

1. Executive Order

2. Letter of Transmittal

3. Code

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1933

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Approved Code No. 167

CODE OF FAIR COMPETITION

FOR THE

SET UP PAPER BOX MANUFACTURING INDUSTRY

As Approved on December 18, 1933

BY

PRESIDENT ROOSEVELT

Executive Order

An application having been duly made, pursuant to and in full

compliance with the provisions of title I of the National Industrial

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

Fair Competition for the Set Up Paper Box Manufacturing Industry, and hearings having been held thereon and the Administrator

having rendered his report containing an analysis of the said code

of fair competition, together with his recommendations and findings

with respect thereto, and the Administrator having found that the

said code of fair competition complies in all respects with the

pertinent provisions of title I of said act and that the requirements of

clauses (1) and (2) of subsection (a) of section 3 of the said act

have been met:

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

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

National Industrial Recovery Act, approved June 16, 1933, and

otherwise, do adopt and approve the report, recommendations and

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

fair competition be and it is hereby approved.

FRANKLIN D. ROOSEVELT.

Approval recommended:

HUGH S. JOHNSON,

Administrator.

THE WHIrE HOUSE,

December 18, 19J3.

27741--29--25-33 (243)
DECEMBER 15, 1933.

THE PRESIDENT,

The White House.

SIR: This is a report of the hearing on the Code of Fair Competition for the Set Up Paper Box Manufacturing Industry, conducted

in Washington on October 3, 1933, in accordance with the provisions

of Title I of the National Industrial Recovery Act.

HOURS AND WAGES

The maximum hours for factory workers prescribed by this Code

are forty per week, with an annual tolerance of seven and one half

percent, but not more than forty-eight hours in any one week.

Members of the industry may adopt a standard work day for factory

employees of either eight or ten hours, overtime to be paid for all

hours worked in excess of forty per week or in excess of the standard

work day. Office employees are to be restricted to forty hours per

week averaged over a period of thirteen weeks, but not more than

forty-eight hours in any one week. Chauffeurs and truckmen are

limited to an average of forty hours per week in any period of four

consecutive weeks; engineers and firemen to forty-two hours in the

same period, with overtime provided for time worked in excess of

nine hours per day, and watchmen to fifty-six hours per week. Home

work and the employment of women between 10: 00 P.M. and 6: 00

A.M. are prohibited.

The Code provides minimum wage rates of 37% per hour for

factory workers in the North, with a 50 differential for women, and

321 /# in the South, with a 2%&. female differential. It is provided

that women doing the same work as men shall receive the same pay.

These rates represent a great increase over the minimum wages now

being paid, particularly for female workers, who comprise about

sixty percent of the total force of this industry. The average rate

for women in May 1933 was 31 an hour, the minimum wage in

1932-33 being as low as 10g' per hour. For this same period, for both

men and women, 67,%% of the factory jobs paid minimum rates of

less than 2 5 g' per hour.

ECONOMIC EFFECT OF THIS CODE

This industry produces paperboard boxes used for packaging and

display purposes. These boxes are distinguished from other paperboard containers in that they are delivered to the user "set up " in

rigid form and ready for use. It is this distinction which differentiates the set-up box from the folding box, one of the chief competitive items. There are at present about 800 firms engaged in the industry, employing about 35,000 workers.

In recent years set-up boxes have been replaced to a large extent

by other containers, such as folding boxes and transparent cellulose

bags.

(244)
245

There were about 40,000 employees in the Industry in 1929. This

fell off to about 29,000 in 1932 and increased, as a result of the PR1A,

to about 35,000 in August 1933. It is estimated that under the Code

the number will increase somewhat further, but because of the decline

of the Industry it is improbable that the 1929 figure will be reached.

The wage rates proposed by the Code will increase the total pay roll

of the industry by about 201(".

The Administrator finds that-

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

pertinent provisions of Title I of the Act, including, without limitation, subsection (a) of Section 7 and subsection (b) of Setion 10

thereof; and that

(b) The applicant group inmposes no inequitable restrictions on

admission to membership therein and is truly representative of the

Set-Up Box Industry; and that

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

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

(,f Title I of the National Industrial Recovery Act.

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

Respectfully submitted.

Htmi S. JOI-INSON,

Administrator.
CODE OF FAIR COMPETITION

FOR THE

SET UP PAPER BOX MANUFACTURING 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 above-named Industry and shall be binding on

every member thereof.

ARTICLE I-DEFINITIONS

The following words are used in this Code with the meanings

herein set forth.

"Industry "-The manufacture of boxes made from paperboard

and other accessory materials, which, in ordinary and regular practice are delivered to the customer fully erected and fabricated, including boxes manufactured by a member for his own use, and including jewelry boxes, cases, and displays, whether made of paperboard or not.

" Member "-A natural person, partnership, corporation, association, trust, trustee in bankruptcy, or receiver engaged in such

industry.

" Act "-Title I of the National Industrial Recovery Act.

" Administrator "-The National Industrial Recovery Administrator.

ARTICLE II-ORGANIZATION AND ADMINISTRATION

1. The members of the Executive Committee of the National

Paper Box Manufacturers Association, together with such other

person or persons as the Administrator may designate are hereby

constituted the Code Authority of the Industry. The members of

the Code Authority designated by the Administrator shall act in

an advisory capacity and shall have no vote.

2. The said Association shall file with the Administrator certified

copies of any amendments of its Bylaws relating to eligibility or

admission to membership in such Association, or relating to the

method of selection of the members of such Executive Committee,

which such Association may hereafter adopt.

3. The Administrator may at any time prescribe a different method

for selecting the Industry members of the Code Authority, and

thereafter such members shall be chosen in the manner so prescribed.

4. The Code Authority is charged generally with the duty of administering this Code under the sanction and with the approval of

the Administrator. All acts of the Code Authority shall be subject

(246)
247

to review by the Administrator, and to suspension, modification, or

cancellation by him, in any case in which he shall determine that

any such act violates the purposes of the National Industrial Recovery Act.

5. The expenses of administering this Code shall be borne pro

rata, in accordance with a formula to be adopted by the Code

Authority, by all members of such Industry who accept the benefit

of the services of the Code Authority or otherwise assent to this

Code.

6. The Code Authority shall have power to investigate alleged

violations of this Code and acts or courses of conduct by any member

which are or appear to be contrary to the policy of the Act or which

tend or may tend to render ineffective this Code and to report the

same with recommendations to the Administrator.

ARTICLE Ill-HOURS OF LABOR

1. Employees in the Industry shall not be required or permitted

to work hours in excess of the limits prescribed in the following

schedule:

SCHEDULE OF WORKING HOURS

(a) Watchmen: Fifty-six (56) hours in any one week, but no

such employee shall be worked more than six (6) days in any seven

(7) day period.

(b) Chauffeurs and truckmen: An average of forty (40) hours

per week in any period of four (4) consecutive weeks.

(c) Engineers and firemen: An average of forty-two (42) hours

per week in any period of four (4) consecutive weeks. All time

worked in excess of nine (9) hours in any one day shall be paid

for at not less than time and one third.

(d) All other laborers, mechanical workers, or artisans employed

in any plant, mill, or factory, or on work connected with the operation of such plant, mill, or factory: Forty (40) hours per week

with an annual tolerance of seven and one half percent (712%), but not more than forty-eight (48) hours in any one week. The

standard work day shall be eight (8) hours, provided, however,

that any member may elect to adopt a standard work day of ten

(10) hours. All time worked in excess of forty (40) hours in any

one week or in excess of the individual member's standard work

day, or on the fifth or following day in any calendar week, when

the member has elected the ten hour day, shall be paid for as not

less than time and one third. Any member who elects to adopt the

standard work day of ten (10) hours shall file notice of such election with the Code Authority and may not revert to a standard

eight (8) hour day for a period of at least one year thereafter, and

on so doing, shall give notice thereof to the Code Authority.

(e) Executives and their personal secretaries and other employees

engaged in a supervisory capacity receiving $35.00 or more per week

and outside salesmen: No limitation.

(f) All other employees: An average of forty (40) hours per

week in any period of thirteen (13) consecutive weeks, but not more

than forty-eight (48) hours in any one week.
248

2. No limitation contained in said Schedule shall apply to employees of any class when engaged in emergency repairs or emergency

maintenance work occasioned by break-downs or involving protection

of life or property. All hours worked under this section in excess

of the limitations prescribed in this Article shall be paid for as not

less than time and one third.

3. No employee shall be permitted to work for two or more. members of the Industry an aggregate number of hours in excess of the

number prescribed in said Schedule.

4. Female employees shall not be permitted to work between the

hours of 10: 00 P.M. and 6: 00 A.M.

5. All time worked on Sunday shall be paid for as not less than

time and one third, provided, however, that watchmen shall be

exempt from this provision.

ARTICLE I-WAGES

1. The minimum rate of wage of any laborer, mechanical worker

or artisan employed in any plant, mill, or factory, or on work connected with the operation of any such plant, mill, or factory, shall

be as follows:

(a) Northern zone, which shall comprise all States except those

listed in subsection (b) :

Male: 371/2 per hour.

Female: 321 2) per hour.

(b) Southern zone, which shall comprise the States of Virginia, Kentucky, North Carolina, South Carolina, Georgia, Florida, Alabama, Tennessee, Louisiana, Mississippi, Arkansas, Texas, and

Oklahoma:

Male 321%, per hour.

Female: 300 per hour.

2. Pieceworkers shall be paid at rates which will yield a worker

for an hour's work not less than the minimum rate above prescribed.

3. The minimum rate of wages for all other employees except

commission salesmen shall be as follows: Fourteen dollars ($14)

per week.

4. Female employees performing substantially the same work

under the same conditions as male employees shall receive the same

rate of pay as nale employees. The Code Authority shall within

90 days after the effective date of this Code file with the Administrator a description of all occupations in the Industry in which both

men and women are employed.

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

circumstances, and within forty-five (45) days after the effective

date hereof, the Code Authority shall report to the Administrator

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

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

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

wage of not less than 80% of the minimum prescribed by this

Code, provided the State Authority designated by the United States

Department of Labor shall have issued a certificate authorizing
249

his employment on such basis. Each member shall file with the

Code Authority a list of all such persons employed by him. The

provision of this Section requiring a certificate of authority shall

not become effective until sixty days after the effective date of

this Code.

ARTICLE V-GENERAL LABOR PROvISIONS

1. No person under sixteen (16) years of age shall be employed in

the Industry. No person under eighteen (18) years of age shall be

employed at operations or occupations which are hazardous in

nature or dangerous to health. The Code Authority shall submit

to the Administrator within sixty (60) days after the effective date

of this Code a list of such operations or occupations. In any State

an employer shall be deemed to have complied with this provision

as to age if he shall have on file a certificate or permit duly signed

by the authority in such State empowered to issue employment or

age certificates or permits, showing that the employee is of the

required age.

2. 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. 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. Employers shall comply with the maximum hours of

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

3. No provision in this Code shall supersede 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.

4. After January 1, 1934, the manufacture or partial manufacture

of any product of this Industry in the home of a worker shall be

prohibited.

5. No employer shall reclassify employees or duties of occupations

performed or engage in any other subterfuge for the purpose of defeating the purposes or provisions of the Act or of this Code.

6. All employers shall post copies of Articles III, IV, and V

of this Code in conspicuous places accessible to employees.

7. Every employer shall make reasonable provisions 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 within six (6)

months after the effective date of this Code.

8. No provision in this Code shall supersede provisions as to

hours, wages, and conditions of employment which are established

for specific projects by competent governmental authority acting

in accordance with law, or to terms of employment which are established by labor agreements now in force, where either the wages are
250

higher or the hours of labor are shorter, or both, than are those

set forth in this Code.

9. The Code Authority shall make a study of conditions in the

Industry to determine the feasibility of the adoption of a shorter

working week and shall, within three (3) months after the effective date of this Code, make a report of its findings to the Administrator. The Code Authority shall also submit to the Administrator within six (6) months after the effective date of this Code, a

plan for the stabilization and regularization of employment.

ARTICLE VI-ACCOUNTING-SELLING

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

standard method of accounting and costing for the Industry and

submit the same to the Administrator. When it shall have been

approved by the Administrator, every member shall use an accounting and costing system which conforms to the principles of, and is at

least as detailed and complete as, such standard method.

2. Each member shall, on or before 30 days after the effective

date of this Code, file with the Code Authority complete schedules

in such form and with respect to such items as the Code Authority

shall prescribe, of prices, terms, and conditions of sale for domestic

consumption (including all differentials, discounts, trade allowances, special charges, and practice regarding samples) of all products

offered for sale by such member, and shall so file all subsequent

changes therein or revisions thereof at least 24 hours prior to the

effective time of any such changes or revisions. The Code Authority shall, upon request, furnish any person concerned, whether

or not a member of the Industry, a copy of all such schedules and

of all changes and revisions thereof.

3. Except in fulfillment of bona fide contracts existing on the

effective date of this Code, no member shall sell any products of

the Industry for domestic consumption at a price or prices lower

than or upon terms or conditions more favorable than stated in

his price schedules then on file, provided, however, that discontinued lines or damaged goods or seconds or distress merchandise

required to be sold to liquidate a defunct business, may be disposed of in such manner and on such terms and conditions as the

Code Authority may approve.

4. No member shall sell any product of the industry at less than

the cost thereof to such member, which cost shall be determined

pursuant to the method of accounting and costing prescribed by

Section 1 of this Article as soon as such method is prescribed and

theretofore pursuant to the method employed by such member subject to such preliminary rules as the Code Authority shall from

time to time prescribe, provided, however, that a member may sell

at a lower price when necessary to meet competition but at not less

than the lowest price not in violation of this Code offered by any

competitor.

5. Contracts for future delivery shall provide that final delivery

completing such contracts shall be made either within a period of

six months from the date of such contracts or before the end of the

calendar year, but not both.
251

6. The Code Authority may prepare and submit to the Administrator for his approval a standard order, invoice, or acknowledgment form that shall embody all the terms and conditions of sale, including price, description, discount and discount period, arbitration, packing and delivery charges, delivery date, a statement, of the

tolerance for overruns or underruns, and such other conditions as

the Code Authority may adopt protecting fairly and equitably the

relations between the seller and the buyer, and the same when so

app roved shall be used by all members of the Industrv.

7. When the standard form provided for in Section 6 of this

Article shall have been approved by the Administrator the Code

Authority may from time to time require that any or all members

of the Industry shall file with the Executive Secretary of the Code

Authority, within twenty-four (24) hours after the mailing thereof

to customers, duplicates of all invoices covering shipments made by

such members.

ARTICLE VII-REPORTS AND STATISTICS

1. Each member shall prepare and file with the Executive Secretary

of the Code Authority at such times and in such manner as it may

prescribe, such statistics, data, and information relating to plant capacity, volume of production, volume of sales in units and dollars,

orders received, unfilled orders, stocks on hand, inventory both raw

and finished, number of employees, wage rates, employee earnings, hours of work, and other matters, as the Code Authority or the Administrator may from time to time require. Any or all information

so furnished by any member shall be subject to checking for the purpose of verification by an examination of the books and accounts and

records of such member by any disinteres4ed accountant or accountants or other qualified person or persons designated by the Code

Authority.

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

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

the provisions of this Code shall be confidential and the statistics, data, and information of one member shall not be revealed to another

member. No such data or information shall be published except

in combination with other similar data and in such a manner as to

avoid the disclosure of confidential information. The Code Authority shall arrange, in such manner as it may determine, for the publication currently to members totals of orders received, unfilled orders,

shipments, stocks of finished goods on hand, production and labor

statistics.

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

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

Code Authority there shall be furnished to Government Agencies

such statistical information as the Administrator may deem necessary

for the purposes recited in Section 3 (a) of the Act.

ARTICLE VIII-TRADE PRAcTICES

1. False Billing.-No member shall withhold from or insert in

any quotation or invoice any statement that makes it inaccurate in

any material particular.
252

2. Interference with contracts.-No member shall attempt to induce the breach of an existing contract between a competitor and his

employee or customer or source of supply; nor shall such member

interfere with or obstruct the performance of such contractual duties

or services.

3. Conimercial Bribery.-No member shall attempt to secure orders

or business by the giving or offering of gifts of money or anything

of value to customers, their employees, or anyone acting in their

behalf. The free distribution of articles commonly used for advertising, provided that such articles are given to the trade generally, is

not hereby prohibited.

4. 1isrepresentation.-No member shall misrepresent his products

or the maiterials of which they are made, or substitute inferior

materials without the knowledge of the purchaser, or describe such

products in a manner which tends to deceive customers.

5. Piracy of Design.-No member shall reproduce or copy without

the written consent of the originator, an original package or design, which shall have been filed with the Executive Secretary of the Code

Authority in accordance with such regulations as the Code Authority

may prescribe. Protection of such origination shall be limited to

two years from the date of filing.

6. Claiming Code Participation.-No member shall represent that

he is a participant in this Code unless he shall have participated in

the expense of administration thereof.

7. False Information to Code Authority.-Furnishing false information to the Code Authority, or to the Executive Secretary thereof, shall be a violation of this Code.

ARTICLE IX-RECOMENDATIONS

1. The Code Authority may, from time to time, present to the

Administrator recommendations based on conditions in the Industry

which will tend to effectuate the operation of this Code and the

policy of the Act, and in particular along the following lines:

(a) For the establishment of additional rules of fair trade practice for the Industry and for the codification of its trade customs, and the enforcement thereof.

(b) For the establishment of plans to bring about a reasonable

balance between the production and consumption of the products

of the Industry.

Such recommendations when approved by the Administrator shall

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

ARTICLE X-GENERAL PROVISIONS

1. If any member is also a member of another Industry, the provisions of this Code shall apply to and affect only that part of his

business which is included in this Industry.

2. Any work or process incidental to, and carried oil by a member

at his plant as a part of the manufacture of any product of the

Industry, shall be regarded as a part of this Industry.

3. Such of the provisions of this Code as are not required to be

included therein by the Act, may, with the approval of the President of the United States, be modified or eliminated as changes in

circumstances or experience may indicate.
253

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

subject to the right of the President, in accordance with the provisions of Section 10 (b) of the Act, from time to time to cancel or

modify any order, approval, license, rule or regulation, issued under

Title I of said Act, and specifically, but without limitation, to the

right of the President to cancel or modify his approval of such Code

or any conditions imposed by him upon his approval thereof.

5. This Code shall become effective on the second Monday after

the date upon which it shall be approved by the President of the

United States.

Approved Code No. 167.

Registry No. 406-03.

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UNIVERSITY OF FLORIDA

31262 08728 7388