Approved Code No. 220 Registry No. 403-1-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

ENVELOPE INDUSTRY 

AS APPROVED ON JANUARY 23, 1934 

WE DO OUR PARl 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

\ 

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

v 
This publication is for sale by the Superintenuent of Doeuments, Government 

Printing Office, Washington, D.C., and by di:strict offices of the Bureau of 

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

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. 

Cleveland, Ohio : Chamber of Commerce. 

Dallas, Tex.: Chamuer of Commerce Building. 

Detroit, Mich.: 801 First National Bank Building. 

Houston, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of COJnmerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn. : 213 l1'ederal Building. 

New Orleans, La.: Room 225-A, Customhouse. 

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Pltlme Street. 

Philadelphia, Pa.: 422 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 220 

CODE OF FAIR COMPETITION 

FOR THE 

ENVELOPE INDUSTRY 

As Approved on January 23, 1934 

ORDER 

APPROVING CODE OF FAIR COMPETITION 

FOR THE 

ENVELOPE iNDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

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

Fair Competition for the Envelope Industry, and hearings having 

been duly held thereon and the annexed report on said Code, containing findings with respect thereto, having been made and directed to 

the President : 

NOW, THEREFORE, 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 

President, including Executive Order No. (3543-A, dated December 

30, 1933, and otherwise; do hereby incorporate by reference said annexed report and do find that said Code complies in all respects with 

the pertinent provisions and will promote the policy and purposes of 

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

Competition be and it is hereby approved. 

Approval recommended : 

GEORGE L. BERRY' 

HUGH S. JOHNSON, 

Administrator for Industrial Recovery. 

Division Administra:tor. 

wASHINGTON, D.C., 

January B3, 1934. 

(331) 

33350°----313-78----34 
The PRESIDENT, 

The WAite House. 

Sm: This is a report of the hearing on the Code of Fair Com- petition for the Envelope. Indu try, conducted in Washington on 

October 10, 1933, in accordance with the provisions of Title I of 

the National Indu ·trial RecoYery Act. 

H O RS AXD WAGES 

The Cole provide a standard 35-hour week for factory workers 

with a weekly tolerance of five hours to be paid for as overtime. 

The usual exceptions are made in regard to nonproductive employees. 

Office employees are limited to an a\erage of 40 hours per week over 

a thirteen-week period. 

The minimum wage rate for hourly paid employees is 40¢ per 

hour in the North and 37¢ in the South, and for office employees 

$16.00 per week in the .North and $15.00 in the South. 

PLANT OPERATION 

The produ ·tiYe capacity of the Indu try exceeds the present demand by about 50%. To keep production within reasonable bounds 

a plant operation limit of 40 hours per week is provided. Excep· 

tions are made in certain cases in order to permit small plants the 

necessary flexibility in operation. The right is reserved to the 

Admini tr·ator to modify, su pend, or remm e all limitations on plant 

operation at any time. 

OTHER PROYISIONS 

Pro\ ision is made for furni hing the Administrator with any 

statistical data which he may require. An open price selling plan 

is provided and elling below cost, except to meet competition, is 

prohibited. 

ECONOl\II EFFECT OF THE CODE 

The Indu try employed about 11,600 persons at its peak in 1929. 

The number employed in May 1933 was about 9,000, who worked 

an average of 38 hours per week. The effect of the Code, without 

increase in volume, will be to employ about 1,000 additional persons 

which additional volume will further increase. Almost one fourth 

of the employees in the North have been receiving less than 30¢ per 

honr. The total increa e in pay rolls as a result of the Code will 

be about 26%. 

(332) 
333 . 

FINDINGS 

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 and foreign 

commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the trade groups, 

by inducing and maintaining united action of labor and manage- ment under adequate governmental sanctions and supervision, by 

eliminating unfair competitive practices, by promoting the fullest 

possible utilization of the present productive capacity of ind u tries, 

by avoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of indu trial and 

agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standard of 

labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 employees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the pertinent provisions of said 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 Industry; and that said association impo es 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 enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 

not been deprived of the right to be heard prior to approval of 

said Code. 

For these reasons this Code has been approved. 

Respectfully, 

JANUARY 23, 1934. 

HuGH S. JoHNsoN, 

Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

ENVELOPE 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 n ed in this Code with the meamngs 

herein set forth : 

I ndustry: The manufacture of envelopes (except envelopes for 

boxed papeteries and boxed tationery) from all materials except 

transparent cellulose. 

M e1nber: A natural per on, partner hip, corporation, association, trust, tru tee, trustee in bankruptcy, or receiver engaged in such 

Industry. 

Productive machin ery: All machinery-used for performine; any 

process neces ary to the manufacture of envelopes of any kincl produced by this Industry. 

A ct: Title I of the National Indn trial Recovery Act. 

A dminist1·ator: The National Industrial Recovery Administrator . 

... \ RTICLE II-ORGA ~T ATIO::s- AND ADMINISTRATION 

1. The mb s of the Executive Committee of the Envelope 

:Manufacturers \.s ociation of America, together with such other 

person or persons as the Administrator may designate, are hereby 

constituted the Code Authority of the Industry. The members of 

th e Code Authority designated by the Administrator shall act in an 

advisory capacity and shall have no vote. 

2. The said As. ociation shall file \Yith 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. 

i3 . The Administrator may at any time prescribe a different method 

for selecting the Industry members of the Code Authority, and, 

thereafter, uch member · 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 to review by the Admini trator, and to suspension, modification, 

(334) 
335 

or can~ellation 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 Indu try who accept the benefit 

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

Code. 

6. The Code Authority shall have po,-rer to investigate alleged 

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

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

tend or n1.ay tend to render ineffective this Code and to report the 

same with recommendations to the Administrator. 

7. The Code Authority may diYicle the country into geographical 

divisions for the purpose of administering this Code. Different 

divisions for different products of the Industry may be so created. 

ARTICLE III-I-IouRs OF LABOR 

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

to work hours 1n excess of the limits pr escribed in the following 

schedules: 

SCHEDULE OF WORKIKG HOURS 

(a) vVatchmen including those watchmen who incidentally tend 

fires: 112 hours in any period of two weeks and not more than 6 days 

in any one week. 

(b) Chauffeurs and truckmen : 192 hours in any period of four 

consecutive weeks, provided, however, that time worked in excess 

of 91j2 hours in any one day or 48 hours in any one week shall be 

paid for as not less than time and one third. 

(c) Engineers and firemen: ·168 hours in any period of four consecutive weeks, provided, however, that time worked in excess of 

9 hours in any one day or 48 hours in any one week shall be paid 

for as 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 : A basic work week of 35 hours 

with a tolerance of 5 hours additional, provided, however, that time 

worked in excess of 9 hours in any one day or 35 hours in any 

one week shall be paid for as not less than time and one third. 

(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 40 hours per week in any 

period of 13 consecutive weeks but not more than 48 hours in any 

one week. 

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 involvin<Y. 

protection of life or property, provided, however, that all tim~ worked under this section in excess of the limitations prescribed in 

said Schedule shall be paid for as not less than time and one third, 
336 

3. No provision of this Article shall be so construed as to require 

payment for the same time as time and one third more than once. 

4. No employea 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. 

5. The manufacture or partial manufacture of any product of 

this Industry in the home of a worker is prohibited. 

ARTICLE IV-'V AGES 

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

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

be as follows : 

(a) In the Northern zone, which hall consist of all of the territory of the United States except the States named in subdivision (b) 

hereof, 40 cents per hour. 

(b) In the Southern zone, which shall consist of the States of 

Virginia, Tennesee, North Carolina, South Carolina, Georgia, 

Florida, Alabama, Missi sippi, and Louisiana, 37 cents 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 rates of wages for all other employees except 

commission salesmen shall be as follows : 

(a) In the Northern zone, as defined in Section 1 hereof, $16.00 

per week. 

(b) In the Southern zone, as defined in said Section, $15.00 per 

week. 

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

circumstances, and within sixty ( 60) _ clays 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. 

5. Persons learning an occupation shall be paid not less than 80% 

of the minimum prevailing wage for such occupation provided that 

the number of such learners employed by any member of the Industry shall not exceed 10% of the number of employees in such occupation but shall not be limited to less than 2 persons, and that 

learners shall not be employed as such for a period in excess of six 

weeks, irrespective of whether they are employed by one or more 

employers. 

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 or other agency designated by the 

United States Department of Labor shall have issued a certificate 

authorizing his employment on such basis. Each member shall file 

with the Code Authority a list of all such persons en1ployed by him. 

7. Office boys and girls under 18 years of age may be employed 

at a wage of not less than 80% of the minimum prescribed by Section 
337. 

3, hereof, provided that the number of persons paid as office boys 

and girls by any member of the Industry shall not exceed 5% of 

the number of employees designated in Section 3 hereof employed 

by such men1.ber, but shall not be limited to less than 1 person. 

ARTICLE V-GENETIAL LABOTI PROYISIONS 

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. 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. 

5. All employers shall post copie of Articles III, IV, and V of 

this Code in conspicuous places accessible to employees. 

6. 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. 

7. 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 estab- lished by labor agreements now in force, where either the wages are 

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

set forth in this· Code. 

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

industry to determine the feasibility of the adoption of a shorter 

3335D0----313-78----34----2 
338 

working week and hall, within three (3) months after the e:ff€ctive 

date of this Code, make a report of its findings to the Administrator. 

The Code Authority hall al o submit to the Administrator within 

six (6) month after the effective date of this Code, a plan for the 

stabilization and regularization of employment. 

ARTICLE 'I-PLANT OPERATION 

1. Subject to the ex<.:eptions contained in Sections 2 and 3 hereof, 

no member , hall operate any manufacturing plant in exce of 40 

hour per week averaged over a period beginning with the effecti\ e 

date of this Code and ending on the 30th clay of June 1934, and 

thereafter over each ucce ive period of six months beginning on 

Jul. r fir t and Jan nary fir t of each year or more than 1 0-!0 hours 

in any ·uch period of six month . 

2. For the purpo es of the foregoing Section, the operating time 

of any unit of procluctiYe machinery in any plant shall be regarded 

a the operating time of the entire plant, provided, ho\Vever, that 

the operating time of not more than one-third of the total number 

of envelope folding machines in the plant, but not in any ca e more 

than three enYelope folding machine and/or their necessary complementary equipment, on emergency work, a the same may be defined by the Code Authority, shall not be counted a plant operating 

time. 

3. If. for a period of one year prior to the 16th cla~T of June 1933 

or for the entire period of time prior to such date that any plant 

may have been in operation, such plant shall have been steadily 

operated \Vith one or more extra hifts, employing thereon not less 

than one half the number of folding-machine operator employed 

on the day shift, then said plant may continue to be operated ·with 

such extra hift or shifts untill\iay 1 t, 1934. 

4. The limitation on plant operation may be modified su pended, 

or removed by th Administrator at any time if he shall determine 

that such limitations have reduced or will tend to reduce unduly the 

supply of envelope. or are for any other rea, on contrar_) to public 

int€re t. 

AnTICLE VII-AccorxTING- ELLING 

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

a standard method of accounting and co ting for the Industry and 

submit the same to the Admini trator. When it shall have been 

approved by the Admini trator, every member shall u e an accountino· and co ting y. tem which conforms to the principles of and 

i at least as detailed and complete a , such standard method. 

2. The Code Authority may from time to time det€rmine that 

an open price plan of elling uch product or product of the Indu -

try a it shall pecify hall be put into effect on uch date as it 

shall fix. Notice of such determination shall be announced to all 

known member of the Industry who manufacture such products 

not le s than 30 day prior to the date so fixed. 

3. At lea t ten lays prior to such date, every such member shall 

file with the Code Authority a chedule of prices and term of ale 

for all such product ~ or, in the alternative, shall be deemed to have 
339 

filed a schedule conformin<Y in respect to pri.ce and terms of sale 

with the schedule at any d~ne on file which tates the lowe t price 

and the most favorable terms. 4. All such schedules shall be in such form a the Code Authority 

shall prescribe and shall contai~ all information ne~e sary to _permit 

any interested person to determme the exact n t pnce per umt af~er 

all discounts or other deductions have been made, whether pertain- ing to a single order, a commitment for future delivery, or a contract. All such original schedules shall become effective on the date 

fixed by the Code Authority as provided in Section 2 hereof. Any 

such schedule, or any price therein, may apply nationally or may 

be limited to one or more geographical division · created as provided 

in Section 7 of Article II hereof. 

5. An original schedule, a revised schedule or schedule , or a new 

schedule or schedules, or a notice of withdrawal of a chedule previously filed may be filed by a member with the Code Authority 

at any time, provided, however, that any member who withdraws a 

schedule without substituting a new schedule therefor shall be 

deemed to have filed a schedule conforming in re pect to price and 

terms of sale with the schedule at any time thereafter vn file which 

states the lowest price and the mo t favorable terms. Any schedule 

or notice filed hereunder, shall become effective five days after 

the date of filing, provided, however, that an inc rea eel price may 

become effective at such earlier date as the member filing the ame 

shall fix. 

6. The Code Authority shall promptly supply all members of the 

Industry, who manufacture any particular product, with copies of 

all schedules, revised schedules, and notices of withdrawal, which 

pertain to such product. Imn1ediately upon receipt of information 

relative to the withdrawal of a price for any product, any member 

·may file notice of withdra\Yal of his own price for the same product 

effective as of the same date as the notice of withdrawal of such 

other member. Immediately on receipt of information that a schedule then on file has been revised, or that a new schedule has been 

filed, any member may file a revised schedule conforming a. to price 

and terms to the schedule of such other member, and effective on the 

same date, or may notify the Code Authority that he adopts as his 

own the schedule of such other member. In the latter event, he shall 

be deemed to have filed a revised schedule conforming to the revised 

schedule of such other member. 

7. No uch schedule of prices and terms of sale filed by any 

member, or in effect at any time, shall be such as to permit the sale 

of any product at less than the cost thereof to such member determined in the manner provided in Section 11 hereof, provided, however, that any member may by notice to the Code Authority, adopt 

as his own a lower price filed by another designated member. Such 

adoption shall become automatically void upon the withdrawal or 

revision upward of the price adopted. 

8. No 1nember who shall have filed a price, or adopted as his 

own, a price filed by another member for any product of the Industry, shall sell such product for less than such price or upon terms 

or conditions more favorable than stated in such price schedule. 

No member, who shall have failed to file a price for any product 
I 

340 

for which the open price plan is in effect, shall sell such product 

at a lower price or on terms more favorable than the lowest price 

and most favorable terms tated in any price schedule for such 

product then on file. 

9. The Code Authority hall furnish at cost to any person conc.erned, whether member or non-me1nber, requesting them, copies of 

any price schedule ·which have been filed with it. Such price schedules shall be made available to non-members at the same time that 

they are sent to members. 

10. No member shall . ell any product of the Industry for which 

no open price plan is in effect at less than the cost thereof to such 

member, determined as provided in Section 11 hereof, except to meet 

the price of a competitor who e price does not violate this Section. 

11. Cost, for the purposes of this Article, shall he determined 

pursuant to the method of accounting and costing prescribed as 

proYided in Section 1 hereof as soon as such method is adopted and 

approYed, and theretofore pursuant to the method employed by 

Hlch member subject to such preliminary 1·ules as the Code Authority 

shall from time to time prescribe with the approval of the 

Administrator. 

12. Every member filing a schedule or notice hereunder hall deliver to the Code Authority without expense such number of copies 

thereof as shall be necessary to enable the Code Authority to supply 

one copy thereof to each member of the Industry and no such schedule or notice shall be deemed to have been filed until such number 

of copies shall have been receiYcd by the Code Authority. 

13. The Code Authority may at any time suspend the open price 

plan of selling either in its entirety or insofar as it applies to any 

specified product or products of the Industry. 

14. For the purpose of determining whether Sections 7, 8, 10 and · 

11 hereof have been complied with, every member shall upon the 

request of the Code Authority furnish a designated agency of the 

Code Authority, in respect to closed transactions only, with complete 

information in regard to any quotation, order, contract, or sale of 

any product of the Industry, including information as to specifications, quantities, price, conditions of storage, transportation, or delivery, terms of billing, cash or trade discounts allowed and other 

pertinent facts relating to such quotation, contract, or sale. 

15. Nothing herein contained shall be construed to prevent the 

disposition of distress merchandise required to be sold to liquidate a 

defunct or insolvent business in such manner at such price and such 

terms and conditions as the Code Authority may approve. 

16. Nothing herein contained shall be construed to prevent the 

fulfillment of a bona fide contract existing on the effective date of 

this Code. The Code Authority may require members of the Industry to file with its designated agency and in such manner as it shall 

prescribe such data as it may require in respect of contracts for 

future deliveries existing on the effective date of this Code. 

ARTICLE VIII-REPORTS AND STATISTICS 

1. Each member shall prepare and file with an impartial agent 

designated by the Code Authority at such times and in such manner 
341 

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 disinterested 

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 hereof shall be confidential and the 

statistics, data, and information of one member shall not be revealed 

to another member. No such data or inform.a.tion shall be publi hed 

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 for the publication currently to members of 

such statistics of the Industry as the Code Authority may determine 

to be necessary. 

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

4. In addition to information required to be ubmitted to the Code 

Authority there shall be furnished to the Government Agencies 

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

ARTICLE IX-TRADE PRACTICES AND CusTOl\>IS 

1. The following are hereby constituted the Trade Practices for 

the Industry, and failure to comply with the provisions thereof shall 

be a violation of the Code: 

a. Inducing Breach of Oont1•act.-The wilful interference by 

any member, by any means or device whatsoever, with any existing 

contract or order between a seller and a purchaser, in or about 

the production, manufacture, transportation, purchase, or sale of 

any product handled or service rendered by the industry, or the performance of any contractual duty or service connected therewith, 

such interference being for the purpo e or with the effect of dissipating, destroying, or appropriating, in whole or in part, the 

patronage, property, or business of another member, is an unfair 

trade practice. 

b. Defa11wtion of 001npetitor or D-isparagement of his Goods.-

The defamation of a competitor by words or acts, imputing to him 

dishonorable conduct, inability to perform contracts, or questionable 

credit standipg, or the false disparagement of the substance, grade, 

or quality of his o-oods, is an unfair trade practice. 

c. Imitation of Trade-marks or Trade-names.-Imitation of the 

trade-mark or trade-name of a competitor with the intent to deceive 

buyers and consumers is an unfair trade practice. 

d. Threats of Suit fm· Patent or Trade-11w:rk infringem,ent.- The dissemination of threats of suit, not made in good faith, for 
342 

infringement of patents or trade-marks, and for the purpose of 

hara · ·ing and intimidating customers, prospective customers, or employees i an unfair trade practice. 

e. Fraucl 07' ... ~! isrep7'csentation.-The sale or offer for sale of any 

prodnct of the Indu try with intent to deceive customers or prospectiYc cnstomers as to the quantity, quality, substance, or size of 

such product, is an unfair trade practice. 

f. 111 i8b1·ancling.-The marking or branding of products of the Industry for the purpose or with the effect of misleading or deceiving 

purchasers or consumers with respect to the quantity, quality~ grade, 

or substance of the goods purchased, is an unfair trade practice. 

g. ec1·et R ebates.-The payment or allowance of secret rebates, 

refunds, credits, or unearned discounts, whether in the form of 

money, or allowances for advertising, or sales promotion, or otherwise, is an unfair trade practice. 

h. Oomm.e1·cial Bribe1·y.-To give, permit to be given, or directly 

to offer to give, anything of Yalue for the purpose of influencing or 

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

another in relation to the business of the employer of such employee, 

the principal of such agent or the represented party, without the 

knowledge of such employer, principal, or party, is an unfair trade 

practice. The foregoing provisions shall not be construed to prohibit 

free and general distribution of articles commonly used for advertising except so far as such articles are actually used for commercial 

bribery as hereinabove defined. 

i. P1·izes 01' Pre17-dums.-The giving or offering to give prizes or 

premiums in connection with the sale of envelopes is an unfair trade 

practice. 

j. Adhc1·ence to Postal R egtdations.- Intentional failure to conform to the United States Postal Laws and Regulations in the design of envelopes for mailing purposes and in the printing thereon 

is an unfair trade practice. 

k. Paten t P1·otection.-No provision in this Code shall be construed 

to pre' ent any member from seeking the redress to which he may be 

entitled under the patent laws of the United States. 

l. Seconcls.-N o seconds, job lots, misprints of envelopes shall be 

sold or offered for sale. 

m. False Bil7ing.-No member of the Industry shall withhold 

from or insert in any invoice any statement that makes it inaccurate 

in any material particular. 

n. Trade Oust01ns.-The sale or offering for sale of any products 

of the Industry by any member of the Industry on any terms or 

conditions which fail to conform to the provisions of the following 

Code of Trade Customs is an unfair trade practice. 

1. Oon(i1·mation of 01·clers.-Stenographic and clerical errors are 

subject to correction. All quotations made and all orders and contracts accepted by salesmen or selling agents are subject to the 

approval of an officer or authorized executive of the seller company. 

:2. Date of lnvoice.- (a) Invoices shall be dated with day of shipment except as other-

''ise provided in sections 17, 18, and 19 herein. 
343 

(b) l\{onthly statements rendered to a customer must include all 

invoices rendered to said customer during the preceding calendar 

month. 

3. Oancellation.-Orders accepted · by the seller may not be 

countermanded except with his consent. 

4. Return of M erchandise.-N o merchandise conforming to order 

may be returned without the consent of the seller. 

5. Unavoidable Delays in Delivery.-The hipment or delivery of 

all orders accepted shall be contingent on trikes, fires, accidents, 

delays of carriers, and all other cau es unavoidable or beyond the 

seller's control. 

6. Drawings and Plates.-All sketches, drawing , engravings, and 

original cuts not specifically charged for in full are the property 

of the envelope manufacturer. 

7. Gutting Dies.-All cutting lie are the property of the envelope 

manufacturer. 

8. Foll01.ving Oopy.-If copy must be followed exactly for style, 

type, and arrangements, customers must furnish cut or plate; otherwise the envelope manufacturer will match copy as nearly a~ may 

be practicable. 

9. P1·oof E1·1·ors.-'Vhen proof of printing has been sent for 

O.K., the envelope manufacturer shall not be responsible for any 

errors or mistakes customer fails to correct. 

10. Variation of Paper.-The envelope manufacturer shall not 

guarantee against unavoidable variations in shade, finish, strength, 

. weight, and cleanliness. 

11. Discoloration Due to Gwm.-On account of the variety of 

dyes and other materials used in the manufacture of paper, the 

envelope manufacturer assumes no liability for discoloration due to 

the application of adhe ives on papers supplied by the customer or 

'>pecified by him. 

12. Substance Basis.-

( a) All paper for conversion into envelopes shall be purchased 

and sold only on the basis of substance numbers which represent the 

pounds weight per ream, sheet size 17 x 22, 500-sheet count. 

(b) The following substance numbers are established for 

envelopes: 

Grades of Paper: Basis 17 I1J 22 

Bonds and Writing~· ------------------------------- 13, 16, 20, 24, 28, 32 

Ledgers ------------------------------------------------ 20, 24, 28,· 32, 36 White 'Vood and Etag ________________________________ _____ _ 20,24,28, 32 

Manila___ ___ _________ _______________________________ 16, 20, 24, 28, 32, 40 

Jute and Etope ____ ___ ___ ______ __ _______ _______________ __ ~0,28,32,36,40 

Kraft, Sulphite and Sulphate __ _________________ 13, 16, 20, 24, 28, 32, 36, 40 

(c) "Then in-between weights are specified by the customer envelopes shall be sold at the price of the next higher sub tance number 

established herein. 

(d) He a vier weights than the foregoing and other grades than 

those specified herein may be u eel to meet requirements of customers, 

if sold on standardized mill-basis weights. 

13. Overruns and Underruns on Manufacturing Orders.-On 

orders to be manufactured, a variation in quantity either way, not 

to exceed 10%, shall be accepted as a fulfillment of the order a.nd 

shall be paid for proportionally. 
344 

14. Over1vuns and Unden-ouns on Special Paper.-Where orders 

require the special manufacture of paper, Yariation in quantity 

above or below the amounts specified shall be allowed in accordance 

with the trade custom as to variation of the material of the mill 

from whom the paper i purchased, but such tolerance shall not be 

less than 10%. 

15. Making Envelopes frorn Paper Fu·rnished by CttSto'l7wrs.-The 

following conditions shall apply to orders accepted for making 

envelope · from paper furnished by the customer, whether such 

paper is lithographed, printed, or unprinted. 

(a) The envelope manufacturer shall assume no responsibility for 

proper cutting of envelopes from sheets printed or lithographed 

according to any layout or press-proof not approved by him. 

(b) Such paper shall be well jogged and packed by the customer 

and shall be free from damaged edges. 

(c) The envelope manufacturer shall accept no responsibility for 

quantity of such paper except on special agreement with the customer 

and at hi. expense for counting. 

(d) 'Vhen such paper is received in poor condition, it shall not 

be cut .. ,,ithout specific instructions from the customer to proceed 

with the work at his risk for spoila<Ye. 

(e) The envelope manufacturer sl1all not guarantee absolute conformity of location of printing or lithographing on envelopes cut 

from paper printed or lithographed in the flat sheet. 

16. Oash Discounts.-The following shall be the terms of discount: To wholesale distributors, 3% for cash on the tenth day of 

the month following date of shipment, or average of thirty days. 

To retail distributors or consumers, 2% for cash payment not later 

than the tenth day of the month following date of shipment. Cash 

discounts shall not be allowed when trade acceptances or note settlements are accepted in lieu of cash. 

17. Split Billing ancl Split Delivm~.-

(a) Orders for 99M enveloJ?eS or less of one size, one style, and if 

printed, one printing copy (including permissible copy changes) 

shall be billed complete on first delivery. 

(b) If any part of the billing is to be deferred at customer's request after the first delivery on orders of more than 99M and not 

exceeding 9991\f envelopes of one size, one style, and if printed one 

printing copy (including permissible copy changes), 10% shall be 

added. to the price of the whole order. 

(c) Billing on orders for lease than 500M: envelopes shall be completed within six months from date of first delivery. 

(d) Billing on orders for 500M envelopes or more shall be completed within one year from date of first delivery. 

18. Split Delivery Only.-

( a) Orders for 24M envelopes or less of one size, one style, and if 

printed, one printing copy (including permissible copy changes) 

shall be shipped complete in one delivery. 

(b) 'Vhen more than one delivery is required on an order for 

more than 24M and not exceeding 999M envelopes of one size, one 

style, and if printed, one printing copy (including permissible copy 

changes), 5% shall be added to the price of the whole order. 
345 

(c) Shipm.ents on all orders shall be completed within twelve 

months from date of first delivery. 

19. Orders for Futu1·e Delivery and Billing.-On all orders for 

lOOM or more envelopes on which, at the customer's request, delivery 

and billing are deferred more than ninety days from date of placement of order, the price shall be either 10% over list, or price prevailing on date of shipment, at customer's option to be exercised 

when order is placed. 

20. Contract It em~ Excepted.-A contract for one million envelopes or more of one size, one style, and if printed, one printing copy 

(including permissible copy changes) or items constituting any part 

of a contract for two million en vel opes or more of as ·orted sizes 

and/ or styles, or otherwise, .shall be excepted from the provisions 

of sections 17, 18, and 19. · 

21.Envelopes wUh Adhesive Stamps Affixed, Excepted.-Orders 

for envelopes on which adhesive postage stamps are to be affixed by 

the seller shall be excepted from the provisions of sections 17, 18, 

19 and 20 hereinabove. 

ARTICLE X-RECO!IDIENDATIONS 

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, or for the modification of rules, of trade practice and trade customs for the Industry, 

and the enforcement thereof. 

(b) For the prevention of unsound, unfair, or destructive competitive practices or prices in the Industry. 

(c) For the establishment of terms and conditions regarding ales 

to dealers and distributors by members of the Industry. 

2. Recommendations of the Code Authority, when approved by 

the Administrator, shall have the same force and effect as other 

provisions of this Code. 

ARTICLE XI-GEXERAL PRO\'ISIONS 

1. If any member is aJso 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 on 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. Articles VI, VII, IX, and such parts of Article VIII as are 

unnecessary to assure compliance with other applicable provisions 

of this Code shall not apply to the manufacturer of stamped en ... velopes and newspaper wrappers and the supply thereof to the 

United States Post Office Department. 

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

included therein by the Act, may, with the approval of the Administrator, be modified, or eliminated as changes in circumstances or 

experience may indicate. 
5. Thi Code and all the prov1 wns thereof are expressly made 

subj ect to the right of the President, in accordance with the proYision 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 Cole or any condition imposed by him upon his approval 

thereof. 

G. This Code hall become effective on the second :Monday after 

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

United States. 

Appro>ed Coc1 c Ko. :? . 

Registry 403-1-01. 

0 

UNIVERSITY OF FLORIDA 

111 1111111111111111111111111111111111111111111111111111111111111 

3 1262 08478 1094