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Appro¥ed Code No. 115 Registry No. 329-~2 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

WOOD PLUG INDUSTRY 

AS APPROVED ON NOVEMBER 14, 1933 

BY 

PRESIDENT ROOSEVELT 

WE DO OUR PART 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

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

Ati~nta, 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 170'6, 201 North Wells Street. 

Cleveland, Ohio : Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, 1\Iich.: 2213 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo. : 1028 Baltimore A venue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn.: 213 Federal Building. 

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

New York, N.Y.: 734 Customhouse. 

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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 Building. 

(II) 
EXECUTIVE ORDER 

CoDE oF FAIR CoMPETITION FOR THE WooD PLuG 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 my approval of a Code 

of Fair Competition for the Wood Plug 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 respects 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 and recommendations, 

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

of Fair Competition be and it is hereby approved. 

THE vV HITE HousE, 

November 14, 1933. 

Approval Recommended: 

HUGH 8. JOHNSON, 

Administrator. 

21124°----244-6----33 

FRANI{LIN D. ROOSEVELT. 

(III) 
The PRESIDENT, 

The White House. 

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

Wood Plug Industry in the United States, the hearing being conducted in Washington, D.C., October 25, 1933, in accordance with 

the provisions of the National Industrial Recovery Act. 

PROVISIONS ON HOURS AND WAGES 

The maximum hours provided by the code for factory employees 

will be 40 per week and 8 per day. Those employed as shipping 

clerks, foremen, and engineers are allowed a tolerance of 8 hours 

in any one week. Watchmen are allowed a tolerance of 16 hours 

in any one week but are restricted to 8 hours in any 24-hour period, 

thus providing for this service by two shifts. Those employed in 

maintenance and repair work are allowed a tolerance of 8 hours in 

any one week with one and one third the normal wage being paid 

for time in excess of 40 hours in any one week. The above limitations of hours do not apply to employees engaged in supervisory 

work receiving more than $35.00 per week. 

The minimum wage rate for labor in the South will be 27 cents 

per hour until one year from the effective date of this code and 30 

cents per hour thereafter. The minimum wage rate in the North 

will be 321f2 cents per hour until one year from the effective date of 

this code and 35 cents per hour thereafter. It is provided that 

wages shall be paid in cash or by negotiable check to a void the use 

of company scrip which has been practiced by a few members of 

this industry. It is also provided that an employee shall not be required as a condition of employment to live in a house owned by 

his employer nor to trade at the store operated by his employer. 

No distinction in wage rates will be made between male and female 

employees doing the same type of work. Equitable adjustment of 

wage rates above the minimum provided will be made and reported 

to the Administrator. Handicapped persons may be employed, but 

their number shall not be in excess of 10 percent of the total number 

of employees in any plant and at a wage rate of not less than 80 

percent of the minimum wage rate provided by the code. 

The terms of employment for those engaged in accounting, clerical, and office work are in accordance with the President's Reemployment Agreement. Weekly compensation of all employees as of June 

16, 1933, higher than the minimum will not be reduced because of 

any change in hours prQvided in the code. 

CHILD LABOR 

The minimum age provided in this code is 16 years, but in hazardous occupations this age limit is increased to 18 years. 

(IV) 
v 

ECONOl\IIC EFFECT OF 'II-IE CODE 

This relatively small industry manufactures the wooden plugs 

and cores which paper manufacturers use for paper rolls. There are 

less than 20 members of this industry and approximately 500 workers 

are employed. Approximately half of the employees are engaged as 

woods or logging crews to procure the raw material for this operation which cannot be secured from lumber dealers due to required 

size variations. The other half of the employees are engaged in 

factory operations. :Most of this labor is unskilled and interchangeable. 

It is estimated by the industry that the provisions of this code 

regarding maximum hours will increase employment approximately 

20 percent and that the income of employees will be increased between 25 percent and 40 percent. The TI""age scale has been exceedingly low due to a chaotic condition of ruinous competition in this 

industry during recent years which representatives of the industry 

believe will be largely corrected by the adoption of this code. 

In arriving at the terms expressed in the code, the industry has 

shown its cooperation in complying with the spirit of the act and 

looks upon the proposed code of fair competition as a necessity to the 

industry. 

FINDINGS 

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 section 10 

thereof; and that 

(b) The applicant group imposes no inequitable restrictions on 

admission to membership therein and is truly representative of the 

wood plug 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 of 

Title I of the National Industrial Recovery Act. 

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

Respectfully, 

HuGH S. JoHNsoN, 

.Adzninistrator. 
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CODE OF FAIR COMPETITION FOR THE WOOD PLUG 

INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are submitted as a Code of 

Fair Competition for the Wood Plug Industry, and upon approval 

by the President shall be the standard of fair competition for such 

industry and shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

The term "industry" as used herein includes the manufacture 

and sale by manufacturers of wooden plugs and cores for paper rolls, 

and such branches or subdivisions thereof as may from time to time 

be included under the provisions of this Code by the President after 

· such notice and hearing as he may prescribe. 

The term " employee " as used herein includes anyone engaged in 

the industry in any capacity receiving compensation for his services, 

irrespective of the nature or method of payment of such compensation. 

The term "employer" as used herein includes anyone by whom 

any such employee is compensated or employed. 

The term "member of the industry " includes anyone engaged in 

the industry as above defined, either as an employer or in his own 

behalf. 

The term "Association" as used herein means the Wood Plug 

~1anufacturers Association. 

The terms "President", "Act", and "Administrator" as used 

herein shall mean, respectively, the President of the United States, 

the National Industrial Recovery Act, and the Administrator of 

said Act. 

The term " South " as used herein shall include the states of 

Virginia, West Virginia, Kentucky, Arkansas, Oklahoma, Texas, and 

all the territory of the United States south and east of the states 

named. 

The term " North " as used herein shall include all the territory 

of the United States not included in the South. 

ARTICLE III- HouRs 

1. No employee shall be permitted to work in excess of forty (40) 

hours in any one week or eight (8) hours in any twenty-four (24) 

hour period, except as hereinbefore stated: 

(a) Shipping clerks, firemen, and engineers, who shall not be 

permitted to work in excess of nine and one half (9%) hours in 

any twenty-four ( 24) hour period or forty -eight ( 48) hours in any 

one week. 

(1) 
2 

(b) Watchmen, who shall not be permitted to work more than 

eight (8) hours in any twenty-four (24) hour period, who shall 

receive one and one third times their normal rate for all hours in 

excess of forty-eight ( 48) hours in any one week. 

(c) Employees in a managerial or executive capacity who now 

receive more than $35.00 per week. 

2. The maximum hours fixed in the foregoing section shall not 

apply to an employee on maintenance or repair work who shall not 

be permitted to work more than forty-eight ( 48) hours in any one 

week and who shall be paid at least one and one third (11/3 ) times 

their normal rate for all hours worked in excess of forty ( 40) hours 

in any one week. 

3. No employer shall knowingly engage any employee for any time 

which when totaled with that already performed with another employer or employers exceeds the maximmn hereinabove provided. 

ARTicLE rv-vv AGEs 

1. No employee in the South shall be paid at less than the rate of 

twenty-seven (27) cents per hour during the period which shall continue for one year from the date on which this Code shall become 

effective, nor less than the rate of thirty (30) cents per hour thereafter while this Code shall be in effect; no employee in the North 

shall be paid at less than the rate of thirty-two and one half (32lj2 ) 

cents per hour during the period which shall continue for one year 

from the date on which this Code shall become effective, nor less than 

the rate of thirty-five (35) cents per hour thereafter while this Code 

shall be in effect. 

2. An employer shall make payment of all wages due in lawful 

currency or by negotiable check, therefor payable on demand. 

Wages shall be paid at the end of each work week. These wages 

shall be exempt from any payments for pensions, insurance, or sick 

benefits other than those voluntarily paid by the wage earners. 

The employer or his agents shall accept no rebates directly or indirectly on such wages nor give anything of value or extend favors 

to any person for the purpose of influencing rates of wages or the 

working conditions of employees. 

3. Accounting, clerical, or office employees shall not be paid less 

than the rate of $15.00 per week in any city of 500,000 population 

or o-ver, or in the immediate trade area of such city, and not less than 

$14.50 per week in any city between 100,000 and 500,000 population 

or in the immediate trade area of such city, and not less than $14.00 

per week in any city between 10,000 and 100,000 or in the immediate 

trade area of such city, and not less than $12.00 per week in any city 

under 10,000 population. The census figures for the latest Federal 

census shall be the basis for this provision. 

4. This Article establishes minimum rates of pay, regardless of 

whether an employee is compen ated on a time-rate, piecework, or 

other basi .. 5. Female employees performing substantially the same work as 

male employees shall receive the same rates of pay as male employees. 

6. The weekly compensation of all employee as of June 16, 1933, 

in excess of the minimum wage hereinabove specified shall not be 
3 

reduced, notwith tanding that the hours of work of any such employee may be reduced. The wages of all employees receiving more 

than the minimum rate herein prescribed shall be equitably adjusted 

and the differentials between employees receiving in excess of the 

minimum herein pre cribed existing prior to the approval of this 

Code shall be maintained. Such adjustments shall be reported to 

the Code Authority and to the Administrator. 

7. 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. The number of such employees shall not 

be in excess of 10 percent of the total number of employees engaged 

by any member of the Industry at any one time, nor shall such employees be paid at less than 80 percent of the minimum wage rate 

herein established. 

8. Employees other than maintenance or supervisory men, or those 

nece sary to protect the property, shall not be required, as a condition 

of employment, to live in quarters rented from the employer. 

9. No employee shall be required, as a condition of employment, 

to trade at the store of the employer. 

ARTICLE V-GENERAL LABOR PROVISIONS 

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

in the Industry, nor anyone under eighteen (18) years of age at 

operations or occupations hazardous in nature or detrimental to 

health. The Code Authority shall submit to the Administrator before January 30, 1934, a list of such occupations. 1n 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 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 any other concerted activities for the purpose of collective bargaining or other mutual aid or protection. 

3. 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. 

4. Employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions of employment, approved 

or prescribed by the President. 

5. Within each State no provision of this Code shall supersede 

any laws of such State imposing more stringent requirements on 

employers regulating the age of employees, wages, hours of work, 

or health, fire, or general working conditions than under this Code. 
4 

6. Employers shall not reclassify employees or duties of occupations performed by employees so as to defeat the purposes of the 

Act. 

7. Each employer shall post in conspicuous and accessible places 

full copies of this Code. 

ARTICLE VI-ADMINISTRATION 

To effectuate further the policies of the Act a Code Authority 

is hereby constituted to cooperate with ~he Administrator in the 

administration of this Code. 

1. Organization and constitution of Code Authority. 

(a) The Code Authority shall consist of five (5) individuals 

or such other number as may be approved from time to time by the 

Administrator, to be selected as hereinafter set forth. The Administrator, in his discretion, may appoint from one to three additional 

members without vote to represent the administration or such groups 

or interests as may be agreed upon. Members appointed by the Administrator shall serve for terms of from six months to one year 

provided, howeYer, that the terms of such members shall not expire 

at the same time. Such members shall be given notice of and may 

attend all meetings of the Code Authority. 

(b) Three members of the Code Authority shall be selected by 

the Association from among its membership. The Association not 

later than 10 days after the approval of this Code shall notify the 

members of the Industry who are nonmembers of the Association 

that on a specified day not later than 20 days after such notice shall 

have been given two members of the Code Authority will be selected 

by nonmembers of the Association. Such notice shall specify that 

such nonmembers may be selected by nonmembers of the Association 

either present or by proxy or by letter ballot. 

(c) The Association shall: (1) Impose no inequitable restrictions 

on membership, and (2) submit to the administrator true copies of 

its articles of association, bylaws, regulations, and any amendments 

when made thereto, together with such other information as to membership, organization, and activities as the Administrator may deem 

necessary to effectuate the purposes of the Act. 

(d) In order that the Code Authority shall at all times be truly 

representative of the Industry and in other respects comply with the 

provisions of the Act, the Administrator may provide such hearings 

as he may deem proper; and thereafter if he shall find that the Code 

Authority is not truly representatiYe or does not in other respects 

comply with the provisions of the Act, may require an appropriate 

modification in the method of selection of the Code Authority. 

2. The Code Authority shall have the following duties and powers 

to the extent permitted by the Act, subject to the right of the Administrator on review to disapprove or modify any action taken by the 

Code Authority: 

(a) vVith a view to informing the Pre ident and the Administrator as the observance of this Code, and as to whether the Industry is taking appropriate steps to effectuate the declared policy of 

the Act, each member of the Industry shall furnish duly certified 

reports in the form required by the Code Authority on wages, hours, 
5 

conditions o£ employment, and such other matters as may be pertinent to the administration of this Code. The Code Authority shall 

make such reports to the Administrator as he may direct. All such 

reports shall be held in strict confidence except when they shall be 

required by the Administrator or the Code Authority in connection 

with a violation of the provisions of this Code. 

(b) The Code Authority may from time to time present to the 

Administrator recommendations based on conditions in the Industry 

as they may develop, which will tend to effectuate the operation of 

the provisions of this Code. 

(c) The Code Authority is also set up to cooperate with the Administrator in making investigations as to the functioning and 

observance of any provisions of this Code, at its own instance or on 

request of the Administrator, or on complaint of any person affected, 

and to report the same to the Administrator. 

(d) The Code Authority shall coordinate the Administration of 

this Code with such codes, if any, as may affect this Industry or 

any related industry, with a view to promoting joint and harmonious 

action upon matters of common interest. 

(e) All 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 the members thereof. Members who thus participate in or share the benefits shall sustain their 

reasonable share o£ the expenses of its administration. The reasonable share of the expenses shall be administered by the Code Authority, subject to review by the Administrator, on the basis of 

volume of business andjor such other factors as may be deemed equitable to be taken into consideration. 

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

Code Authority, there shall be furnished to government agencies 

by the members of the Industry such statistical information as the 

Administrator may deem necessary for the purposes recited in Section 3 (a) of Title I of the Act. 

ARTICLE VII-TRADE PRAC'l'ICES 

1. The Code Authority shall formulate or cause to be formulated 

a uniform accounting system which shall be adaptable to cost-accounting procedure and to the business of the Industry. Such plan 

shall specify the factors which shall be included in determining the 

costs to each member of the Industry. Upon approval by the Administrator of such a system of cost accounting for the Industry complete advice concerning it shall be distributed by the Code Authority 

to all members of the Industry. Thereafter no member of the Industry shall sell the products of the Industry at such prices or upon such 

terms and conditions of sale as will result in the purchaser's payin (Y 

for such product less than the cost thereof to the seller, determined 

in accordance with the aforesaid system of cost accounting, except 

to meet competition. Within twenty days after the approval of this 

Code each member of the Industry shall publish to the trade and 

file with the Code Authority price list for all products of the industry sold or offered for sale by him, together with the discounts, if 

any, allowed therefrom, and fixed terms of payment. Revised price 
UNIVERSITY OF FLORIDA 

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lists or revised discounts or terms and conditions of sale may be filed 

and published from time to time thereafter by any member of the 

Industry, provided, however, that such revision shall be published 

and filed with the Code Authority at least five days in advance of 

the effective date thereof. No member of the Industry shall sell or 

offer for sale any products of the Industry at prices lower than the 

prices noted in his price list or on more favorable terms and conditions of sale than the terms and conditions of sale previously published and filed by such member with the Code Authority in accord- ance with the foregoing provisions and in effect at the time of such 

sale. 

2. The following practices constitute unfair methods of competition and are prohibited: 

(a) Directly or indirectly to give or permit to be given, or offer 

to give, money or anything of value to agents, employees, or representatives of customers or prospective customers, or to agents, employees, or representatiYes of competitors' customers or prospective 

customers, without the knowledge of their employers or principals, 

as an inducement to influence their employers or principals to purchase or contract to purchase from the makers of such gift or offer, 

or to influence such employers or principals to refrain from dealing 

or contracting to deal with competitors. 

(b) The secret payment or allowance of rebates, refunds, commissions, 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. 

ARTICLE VIII- MoDIFICATION I 

1. This Cocle and all the provisions thereof are expressly made 

subject to the right of the President, in accordance with the provisions of subsection (b) of Section 10 of the National I ndustrial 

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 conditions imposed by him upon his approval thereof. 

2. This Code, except as to provisions required by the Act, may be 

modified on the basis of experience or changes in circumstances, such 

modification to be based upon application to the Administrator and 

such notice of hearing as he shall specify, and to become effective on 

approval of the President. 

ARTICLE IX-MONOPOLIES 

No provision of this Code shall be so applied as to permit mo- nopolies or monopolistic practices, or to eliminate, oppress, or 

discriminate against small enterprise. 

ARTICLE X-EFFECTIVE DATE 

This Code shall be effective ten days after its approval by the 

President. 

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