Approved Code No. 327 Registry No. 1399-41 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

MACHINE-APPLIED STAPLE 

AND STAPLING MACHINE 

INDUSTRY 

AS APPROVED ON MARCH 10, 193.£ 

WE DO OUR PART 

I <J 

,.,. ----

U.S. DEPO&iTCFY. 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

( 

I I 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cent:.~ 
This publication i for sale by the Superintendent of Documents, Government 

Printing Office. "\Vashington, D.C., and by d:strict offi e~ of the Bureau of Foreign 

and Dome tic Commerce. 

DISTRICT OFFICES OF THE DEP ARThiENT OF COMMERCE 

Atlanta, Ga.: 304 Post Office Building. 

Birmingham, Ala. : ... 57 Federal Building. 

Boston, Mass. : 1801 Customhouse. Buffalo, N.Y.: Chamber of Commerce Building. 

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

Chicago, Ill.: Suite 1706, ~01 Korth "\Yells Street. 

Cleveland, Ohio. : Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, l\Iich.: 801 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

I11dianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce 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 Federal Building. 

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

New York, N.Y.: 734 Customhouse. Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa.: 422 Commercial Trust Building. 

:rittsburgh, 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. 327 

CODE OF FAIR CO~!PETITION 

FOR THE 

MACHINE-APPLIED STAPLE AND STAPLING 

MACHINE INDUSTRY 

As Approved on March 10, 1934 

ORDER 

APPROYL TG ConE OF FAIR Col\IPETITION FOR THE 1\L\CIIINE-APPLIED 

STAPLE AND STAPLING MACHINE 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 l\1achine-Applied Staple and Stapling 

l\1achine Industry, and hearings having been duly held thereon and 

the annexed report on said Code, containing findings with re pect 

thereto, having been made and directed to the President: 

NO\V, THEREFORE, on behalf of the President of the United 

States, I, Hugh S. John on, Administrator for Indu trial Recovery, 

pursuant to authority vested in me by ExecutiYe Orders of the President, including Executive Order No. 6543-A, da.ted December 30, 

1933, and otherwise; do hereby incorporate by reference said annexed 

report and do find that said Code complies in all respects 'vith the 

pertinent provisions and will promote the policy and purpos of said 

Title of said Act; and do hereby order that said Code of F air Competition be and it is hereby approved; provided, however, that the 

provisions of Article VIII, (Section 2) insofar as they prescribe a 

waiting period between the filing with the Code Authority and the 

effective elate of revised price lists or revised terms and conditions of 

sale be and they are hereby stayed pending my further Order either 

within a period of sixty days from the effective date of this Code 

or after the completion of a study of open price associations now 

being conducted by the National Recovery Administration; and provided, further, that the continued participation of the Staple As ociation of America in the Code Authority after 30 days from the 

effecti-..e date of this Code shall be contingent upon its amending its 

constitution and by-laws to the satisfaction of the Administrator. 

HuGH S. JoHNSON, 

Ad1ninistrator for Industrial Recovery. 

Approval recommended : 

\V. A. HARRIMAN, 

Division Adn~inistrator. 

VVASHIKGTON, D.C., 

111 arch 10, 1934. 

45805°----425-04----34 (579) 
REPORT TO THE PRESIDENT. 

The PRESIDENT, 

The White House. 

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

Machine-Applied Staple and Stapling Machine Industry, the hearing having been conducted thereon in Washington, D.C., on February 16 1934, in a-ccordance with the proYisions of the National 

Industrial Recovery Act. 

RESUME OF CODE AS TO WAGES AND HOURS 

This Code provides an 8 hour working day and 40 hour week, 

except that in peak periods employees may work not to exceed 48 

hour for 6 weeks in any 26 weeks' period. These provisions are 

applicable to all employees except those in a managerial, executive 

or supervisory capacity, receiving not less than $35.00 per week; 

outside salesmen; and watchmen who may be permitted to work not 

more than 56 hours per week. 

The minimum rates of pay provided are 35¢ per hour for mnployees engaged in packing operations and 40¢ per hour for all other 

classes of processing employees. With t.he exception of watchmen, 

time and one-half will be paid all employees working under the 

maximum hour clauses for hours worked in excess of 40 hours per 

week and 8 hours per day. 

Clerical employees on a weeldy pay basis are to be paid not less 

than $15.00 . 

. E~uitable adjustments are to be made in all wage rates above the 

mlnll1lUl1l. 

Child Labor is prohibited and no person under 18 years of age 

shall be employed in a hazardous occupation. 

GENERAL STATEMENT 

The :Machine-Applied Staple and Stapling lVIachine Industry as 

defined in the Code includes the manufacture and sale of machineapplied staples and stapling machines. The customers for the lighter 

type of machines and staples are stationer. and stationery distributor . while the heaYier type of machines and taples are sold to 

variou. manufacturing industries to be tLed in ,-arious fastening 

operations. 

The investment in the Industry is approximately $1,942,000 and 

the number of wage earners in normal times is about 00. In normal times. the total annual wages paid by 16 reporting manufacturers out of a total of 26 in the Indu.-try. amounted to approximately $726,700 to 535 employees. 

In 1929, the operations of the Industry v;ere approximately 85 % 

of capacity in machines and 90% of capacity in staple . Figur s are 

not aYailuble for the entire Industry as to the value of these article . 

(580) 
581 

An approximate estimation based on the data of reporting manufacturers, however, would give this figure at about $1,350,000. 

Operations in 1930 for machines were about 74% of ca-pacity and 

for staples about 80% of capacity; in 1931 about 70% of capacity 

for machines and about 70% of capacity for staples; in 1932 about 

42% of capacity for machines and about 50% of capacity for staples; 

in 1933 about 50% of capacity for machines and about 67% of capacity for staples. 

It is to be noted that the capacity for machine manufacturing has 

been increased about 14% since 1929 and that the capacity for producing staples has been increased 30% during the same period. 

Industry calls attention to the fact that the increase in production 

of staples in 1933 over 1932 was, in a measure, cau ed by the differences in exchange rates which tended to prohibit the importation of 

foreign staples. 

I believe that the Code is fair to Industry, to Labor and to the 

Public, and is in accordance with the intent and purpose of the 

National Industrial Recovery Act. 

FINDINGS 

The Assistant Deputy Administrator in his final report to me on 

said Code havin~ found as herein set forth and on the basis of all 

the proceedings 1n 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 management 

under adequate governmental sanctions and supervision, by eliminating unfair competitive practices, by promoting the fullest possible 

utilization of the present productive capacity of industries, by avoid- ing undue restriction of production (except as may be temporarily 

required), by increasing the consumption of industrial and agricul- tural products through increasing purchasing power, by reducing and 

relieving unemployment, by improving standards of labor, and by 

otherwise rehabilitating industry. 

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

(c) The Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limita-; 

tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 

Subsection (b) of Section 10 thereof; and that the applicant group 

is an industrial group truly representative of the aforesaid Industry ; 

and that said group imposes no inequitable restrictions on admisswn 

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. 

( !) Those engaged in other steps of the economic process have 
582 

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

Code. 

For these reasons, therefore, I have approved this Code; provided, 

however, that the provisions of Section 2, Article VIII, insofar as 

they prescribe a waiting period betiYeen the filing with the Code 

Authority and the effective date of revised price lists or revised terms 

and conditions of sale be and they are hereby stayed pending my 

further Order either within a period of sixty days from the effective 

date of this Code or after the completion of a study of open price 

associations now being conducted by the National Recovery Administration· pro\ided, however, that the continued participation of the 

Machine-Applied Staple and Stapling Machine Industry in the. Code 

Authority after 30 days :from the. effective date of this Code shall be 

contingent upon its amending its constitution and by-laws to the. 

satisfaction of the Administrator. 

Respectfully, 

MARCH 10, 1934. 

HuGHS. JoHNSON, 

.Administ·rator. 
CODE OF FAIR COMPETITION FOR THE MACHINEAPPLIED STAPLE AND STAPLING MACHINE INDUSTRY . 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Code 

of Fair Competition for the Machine-Applied Staple and Stapling 

Machine Industry, and shall be the standard of fair competition for 

such industry and shall he binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term "Machine-Applied Staple and Stapling Machine Industry" includes the manufacturers and/or national distributors of Machine-Applied Staples and/or Stapling Machines, 

but does not include the types of Stapling Machines used in the 

Shoe Industry. 

S'EcTION 2. The term" Member of the Industry" includes but without limitation, any individual, partnership, association, corporation 

or other form of enterprise enga~ed in the Industry either as an 

employer or on his or its own behalf. 

SECTION 3. The term "Association " as used herein is defined to 

mean the Staple Association of America. 

SECTION 4. The term "President", "Act", and "Administrator" 

as used herein shall mean respectively the President of the United 

States, Title I of the National Industrial Recovery Act, and the 

Administrator for Industrial Recovery. 

SECTION 5. The term " employee" as used herein includes ari.y and 

all persons engaged in the Industry, however compensated, except a 

member of the Industry. 

SECTION 6. The term "Employer" as used herein includes anyone 

by whom any such employee is compensated or employed. SECTION 7. The term" Plant" means a factory producing machineapplied staples and/or stapling m:whines in the Industry as herein 

defined. . 

SECTION 8. The term "majority vote" shall mean a vote of at 

least fifty-one (51 %) per cent of the members of the Industry, 

present either in person or by proxy, whose aggregate sales in the 

preceding year were not less than seventy-five (75 % ) per cent of 

the total sales of the Industry. Aggregate sales as herein used 

shall not include sales made by a parent member to his or its subsidiary national distributor. 

SECTION 9. The term" National Distributor" means an individual, 

firm, corporation, partnership, agency or organization who handles 

the entire sales for a specific class of trade or trades exclusively and 

solely for any one manufacturer in the Industry or sells for any one 

manufacturer the manufacturer's entire output of a specific product, 

and who operates on a nationwide scale. 

(583) 
584 

ARTICLE III-\YoRKING I-Io-cR 

SECTION 1. Maximum H ours.-N o employee shall be permitted to 

work in excess of forty ( 40) hours in any one week or in excess of 

eight (8) hours in any twenty-four (24) hour period~ nor more than 

six ( 6) clays per week, except a her in otherw·ise provided. 

SECTIO~ 2. E xceptions as to H O'LlJ'S.- ( a) E xecutives and Salesm.en.-The proYisions of Section 1 above 

shall not apply to executive and .-·upervi::,or·· \Yho are paid $35.00 

weekly or more, and outside sale men. 

(b) En~ rg y Ovet·ti7ne.-The maximum hours fixed in the foregoing Section 1 hall not apply to any employee on emergency maintenance or emergency repair work inYolYing breakdowns or prot-ection of life or property or on emergencies occa ioned by the necessity 

for en'ices of specially kille l employees which can not be cared 

for by the employment of additional men. But in any such special 

case, at least one and one-half times the normal rate shall be paid 

for hours worked in exces of the maximum provided in Section 

1 above. 

(c) Ordinm'y Overtime.- The maximum honr- fixed in Section 

1 above shall not apply for six (6) week in any twenty-six (26) 

week. ' period cl uring which overtime shall not exceed eight ( 8) 

hours in any one week. In any such case at least one and one-half 

time the normal rate shall be paid for hour · \Yorked in excess of 

eight (8) hours in any twenty-four (24) hour period, or in excess 

of forty ( 40) hours in any seven (7) day period. 

(d) R epo1·ting OveTtim e.-All work in exce ~ of the hours provided in Section 1 above hall be reported to the Code Authority in 

such detail as may be required. 

SECTION 3. unday amd Holiday lV oTk.-N ot less than one and 

one-half (l'lQ) times the regular rate shall be paid for all work 

performed on Sundays or legal holidays-watchmen excepted. 

SECTION 4. The provisions of this Article shall not apply to watchmen who shall be permitted to work not in excess of fifty-six (56) 

hours per week. 

SECTION 5. Employment by Several Employe1·s.-No employer 

shall permit any employee to work for any time which, when totaled 

with that already performed for another employer or employers, 

exceeds the maximum permitted herein. 

SECTION 6. 111 awi17W/J.n H OU?'S for vV 01'kin g E1nploye?'S.- Employers, owners or partners who personally perform manual work or are 

engaaecl in mechanical operations shall not exceed the prescribed 

maximum number of hours. 

ARTICLE IV- \V AGES 

SE 'TION 1. (a) No employee engaged in packing operations hall be 

paid less than the rate of thirty-five (35) cents per hour and all other 

classes of employees shall be paid not les than forty (40) cents per 

hour except as hereinafter provided. 

(b) Any clerical employee shall be paid at a rate not less than 

fifteen ($15.00) dollars per week; provided, however that office boy. 

anll girls and me sengers shall be paid at a rate not less than eighty 
583 

(80%) percent cf tLe minimum alary herein proYiu d, and provided 

further, that the number of uch office boy~ an 1 girl and messenger" 

so paid by any employer shall constitute not more than five (5%) 

percent of the total number of his employee::;, but in any case, uch 

employer shall b:: entitled to employ one uch em1)loyee. 

SECTION 2. Piece Rates.-This Article establishe a mmunum compensation, irrespective of whether an employee i actually paid on 

a time rate, on a piece rate, or other basis. 

SECTION 3. Females.-Femal employe~:s performing substantially 

the same work as male employee shall receiYe the same rate of pay 

as male employee·; and where they displace men they hall receive 

the same rate of earnings as the men they displa e. The Code 

Authority shall within ninety day after the effectiYe date of this 

Code file with the Administrator a de cription of all occupations in 

the Industry in which both men and women are employed. 

SECTIO:N 4. Handicapped Persons.-An indiYidnal ''hose earning 

capacity is limited becau e of age or phy ical or mental han licap 

may be employed on light work at a wage below the minimum establi heel by this Code if the employer obtains from the State Authority 

designated by the United State Department of Labor a certificate 

authorizing his employment at uch wage and for such hours as 

shall be stated in the certificate; proYided how Yer, that the total 

number of such employees shall not exceed more than five ( 5%) 

percent of the total number of employees. Each employer hall file 

with the Code Authority a list of all such person empl yed by him. 

SECTIO::\ 5. Equitable adjustment of comr ensation of employees 

receiving more than the minimum rat s of pa} herein pre cribed 

shall be made by all employers who have not heretofore made such 

adjustments, and all employers shall within thirty (30) days after 

approYal of this Code, report in full to the Code Authority concerning such adju.stments whether made prior to or ub equent to such 

approval provided, however that in no eYent hall honrly rates of 

pay be reduced. 

ARTICLE V-ADDITION AL LABOR PROYISIONS 

SECTIO~- 1. As required by Section 7 (a) of Title I of the National 

Industrial Recovery Act, it is hereby provided: 

"That employees hall 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 repre entatives or 

in ,self-organization or in other concerted activities for the purpose 

of collective bargaining or other mutual aid or protection; that 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 

choo ing; and that employers shall comply with the maximum hours 

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

approved or prescribed by the President." 

SECTION 2. No person under 16 years of age shall be employed in 

the Indu, try, nor any one under 18 years of age at operations or occupation. hazardous in nature or detrimental to health. The Code 
586 

Authority shall submit to the Administrator within 90 days after 

the effective date, a list of such occupations. In any State an employer shall be deemed to have complied with this provision if he 

shall haYe on file a certificate or permit duly issued by the Authority 

in such State empowered to issue employment or age certifica~ or 

permits, showing that the employee is o.f the required age. 

SEcTro~ 3. 'Vithin each State this Code shall not supersede any 

law of such State imposing more stringent requirements on employers regulating the age of employees, wages, hour,s of work, or 

health, fire, or general working conditions tha.n under this Code. 

SECTION 4. Employers shall not reclassify employees or duties of 

occupations performed by employees or engage in any other subterfuge so as to defeat the purposes .of the Act. 

TIO~ 5. Each employer ,shall post in conspicuous places full 

copies of this Code. 

ARTICLE VI OR .~: rzATION, PowERS AND DUTIES oF THE CoDE 

AuTHORITY 

ORGANIZ_-\.TION AND CONSTITUTION 

<;;;:ECTION 1. A Code Authority is hereby established to administer 

this Code. Said Code Authority shall consist of five ( 5) members 

to be elected by the members of the Industry in meeting assembled, 

by a majority vote as defined in Article II, Section 8. In addition 

to the membership of said Code Authority as above provided, the 

Administrator may appoint not to exceed three (3) members. 

ECTION 2. In order that the Code Authority sha1l at all times be 

truly representative of the Industry and in other respects comply 

with the provisions of the Act, the Administrator may prescribe 

such hearings as he may deem proper; and thereafter if he shall find 

that the Code Authority is not truly representative 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. 

SECTION 3. There hall be no inequitable restrictions imposed on 

membership in the Association, and the Association shall submit to 

the Administrator true copies of its Articles of Association, ByLaw , Regulations and any Amendments when made thereto, together with such other information as to membership, organization 

and acti,ities as the Administrator may deen1 necessary to effectuate 

the purpo ·es of the Act. 1 

SECTION 4. Members of the Industry shall be entitled to participate in and share the benefits of the activities of the Code Authority 

and to participate in the selection of the members thereof by assenting to and con1plying with the requiren1ents of this Code and assisting with their reasonable share of the expenses of its administration. 

Such reasonable share of the expenses of administration sha1l be 

determined by the Code Authority, subject to review by the Administrator, on the basis of Yolume of business and/or such other factors 

as may be deemed equitable. 

1 Se-e paragraph 2 of Ol'der appl'ovlng this Code. 
587 

SECTION 5. Nothing contained in this Code shall constitute the 

members of the Code Authority partners for any purpose. Nor 

shall any men1ber of the Code Authority be liable in any manner to 

anyone for any act of any other member, officer, agent, or employee 

of the Code Authority. Nor shall any member of the Code Authority exercising reasonable diligence in th conduct of hi luties hereunder be liable to anyone for any action or omission to act under 

the Code, except for his own wilful mi feasance or non-feasance. 

ARTICLE VII-PowERs AND DUTIE OF ConE AUTHORITY 

SECTION 1. The Code Authority shall haYe the following further 

duties and powers to the extent permitted by the Act : 

SECTION 2. The Code Authority may adopt by-law and rules and 

regulations for the conduct of its busines and for the administration 

of this Code. 

SEcTION 3. The Code Authority shall appoint a manager, who 

subject to the disapproval of the Industry and/ or the Administrator, shall (a) attempt to determine within the Industry a to whether 

any member has or has not adhered to the provisions of this Code; 

(b) act as the Industry's representative in all dealings with the 

Government; (c) conduct any investigation or snr\ey within this 

Industry that might be of general benefit to this Indu try; (d) 

collect all data, information, statistics and records necessary that 

the policy of the Act may be effectuated. The manager shall be in 

no way engaged in the Industry or connected with any member 

thereof. 

SECTION 4. In order that the Administrator may be informed 

of the extent o£ observance of the provisions of this Code and of 

the extent to which the declared policy of the Act is being effectuated 

in the Industry as herein defined, the Code Authority shall make 

such reports as the Administrator may require and ear-h employer 

shall make such sworn or unsworn r~port s to the Manager, periodically, as the Code Authority may direct, on wages, hours of labor, 

conditions of employment, number of employee : production, shipments, sales, stocks, prices, and other matters pertinent to the purposes of this Code as the Code Authority may require. No in elividual reports shall be disclosed to any other member of the industry or any other party except to such governmental agencies 

as may be designated by the Administrator. 

SEcTION 5. In addition to information required to be submitted 

to the Code Authority, all or any of the persons subject to this 

Code shall furnish such statistical information as the Administrator 

may deem necessary for the purposes recited in Section 3 (a) 

of the Act to such Federal and State agencies as the Administrator 

may designate; nor shall anything in this Code relieve any person 

of any existing obligation to furnish reports to Government agencies. SECTION 6. The Code Authority may appoint a trade practice committee which shall meet with the trade practice committees appointed under such other codes as may be related to the Industry 

for the purpose of formulating fair trade practices to govern the 

relationships between production and distribution employers under 

this Code and under such others to the end that such fair trade 
588 

practices may be proposed to the Administrator a.s amendments to 

this Code and such other Codes. 

SEcTION 7. Any and , all information furnished to the Manager 

or the Code Authority shall be confidential and shall not be divulged 

to any member except in summary, but shall be available to the 

Admini trator upon request. 

SECTION 8. The Code Authority may from time to time appoint 

uch sub-committees or designate such agencies, and may delegate to 

any of them such of its powers and duties, as it shall deem necessary or proper in order to effectuate the provisions and purposes 

of this Code. 

SEcTION 9. The Code Authority shall study the effect of the provi ions of this Code on the industry and consider proposals for 

amendments or modifications and make recommendations thereon 

from time to time to the Administrator which amendments or modifications shall be effective as part of the Code upon approval by the 

A~lmini trator after such notice and hearing as he may specify. 

SECTION 10. Upon complaint of any member or upon its own initiative, the Code Authority shall investigate alleged violations of this 

Code under such rules and regulations as the Administrator may 

prescribe. 

SEcTION 11. If the Administrator shall determine that any action 

of the Code Authority or any agency thereof may be unfair or unjust 

or contrary to the public interest, the Administrator may require that 

uch action be suspended to afford an opportunity for investigation 

of the merits of such action and further consideration by the Code 

Authority or agency pending final action which shall not be effective 

unless the Administrator approves or unless he shall fail to disapprove after- thirty (30) days' notice to him of intention to proceed 

with such action in its original or modified form. 

SECTION 12. The Code Authority shall cooperate with the Administrator in regulating the use of any NRA insignia solely by those 

members of the Industry who have assented to, and are complying 

\Yith, this Code. 

ARTICLE VIII-TRADE PRGVISIONS 

SECTION 1. "\Vhen the Code Authority determines that an emergency exists in this Industry and that the cause thereof is destructive 

price cutting such as to render ineffective or seriously endanger the 

maintenance of the provisions of this Code, the Code Authority may 

cause to be determined the lowest reasonable cost of the products of 

this Industry, such determination to be subject to such notice and 

hearing as the Adnunistrator may require. The Administrator may 

approve, disapprove, or modify the determination. Thereafter, during the period of the emergency, it shall be an unfair trade practice 

for any member of the Industry to sell or offer to sell any products 

of the Industry for which the lowest reasonable cost has been determined at such prices or such terms or conditions of sale that the 

buyer will pay less therefor than the lowest reasonable cost of such 

products. When it appears that conditions have changed, the Code 

Authority upon its own initiative or upon the request of any interested party, shall cause the determination to be reviewed. 
589 

SEGTION 2. The Code Authority shall require that for any product 

of the Industry and for any class of cu tomer, it having been the 

general recognized practice to sell sw.:h product to such customer 

on the basis of printed matter, price li t and fixed terms of pay-

~ent. which are distributed to the_ tr~ade, eacl~ manufac"turer a~1el 

d1stnbutor of such product shall w1thm ten (1u) day arter notice 

from the Code Authority file with the Code Authority a net price 

list individually prepared by him showing his current price and 

terms of. payment and the Code Authority hall immediately and 

simultaneously send copies thereof to all known manufacturer and 

national distributors of such specified products. Revised price li ts 

1nay be filed from time to time thereafter with the manager by any 

manufacturer and national distributor of uch product to be shipped 

and to become effective upon the date specified therein, but such 

revised price lists shall be filed with the manager ten (10) days in 

advance of the effective date unless the Code Authority shall authorize a shorter period. Copies of revised price lists with notice of the 

effective date specified shall immediately and imuJtaneously be sent 

to all known manufacturers and national distributor of such product 

who therewith may file, if they so desire. comparable revi ions of 

their price lists which shall become effective upon the date when 

the revised price li t first filed shall go into effect. The respective 

price list for each clas of trade shall be available at all reasonable 

times to the bona fide members of each class of trade served by the 

Industry, provided, however, that con umer ' price shall be open 

to the public. 2 

SECTION 3. Each member shall send the Manager two (2) copies 

each of hi price lists, discount schedules, and catalogs and as n1any 

additional copies as he may require for eli tribution to other members. 

SECTION 4. (a) All container u eel by the Members of the Industry 

for packing machine-applied staples shall be identified by the name 

of the manufacturer or the distributor who make or ells the staple . The name of the manufacturer or distributor shall be imprinted or 

stamped on the container or on the label which hall be se ·urely 

attached to the container. The name of the manufacturer or distributor shall appear on the container or label in clear, ea ily reatl type 

of a size not less than 12 point. 

(b) Containers or labels may be imprinte l for the ustomers of 

the manufacturer or distributors which may carTy the name andjor 

trade mark of the customer and may, if the customer so desires, carry 

the name andjor the trade mark of the manufacturer making the 

staples or the distributor making the ale, but such labels m.ay not 

carry the name of any other manufacturer or the name of any other 

manufacturer's product, or the name of any other distributor, or 

other distributor' product. 

ARTICLE IX-UNFAIR TRADE PRACTICES 

General Definition.-For all purposes of the Code, the acts de-

~cribecl in this Article hall constitute unfair practices. Any member 

of the Industry who shall directly or indirectly through any officer, 

employee, agent or representative, knowingly use, employ, or permit 

2 See paragraph 2 · of order approving this Code. 
590 

to be employed any of such unfair practices shall be guilty of a 

violation of the Code. 

SECTION 1. No goods sold shall be invoiced at other than the true 

selling prices. 

SECTION 2. No member of this Industry shall disseminate false 

or misleading information relative to competitors' products, selling 

price , credit standing, ability to perform service, or labor conditions 

among competitors' employees. 

SECTION 3. No 1nember shall imit ate or simulate any trade mark, 

trade name, numerals with or without letters, package, brand, or 

label of a competitor in such degree as to deceiYe or have the tendency 

to deceive customers. 

SECTION 4. No member of thi · Industry shall circulate, not in good 

faith, but for the purpose of harassing and intimidating customers, 

threats of suits for tte infringement of patents or trade marks among 

customers of a competitor. 

SECTION 5. No member of this Industry shall induce or attempt 

to induce the breach or abandonment of any contract between 

another member of the Industry and his customer. 

SECTION 6. No member of the Industry shall give, permit to be given, or directly offer to give, anything of value 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 ag nt or the represented party, without the knowledge of such employer, principal or party. Commercial 

bribery provisions shall not be construed to prohibit free and general 

distribution of articles cqmmonly u ·eel for advertising except so far 

a: s11ch articles are actually used fo~ commercial bribery as hereinaboye defined. 

SECTION 7. No member of the Industry shall use advertising or 

selling methods or credit terms which have the capacity or tendency 

to mislead the customer or prospective customer. 

SECTION 8. No member of the Industry shall use the name of any 

other member of the Industry or the name of any product made by 

any other member of the Industry on his conta.iners or in his 

advertisements. 

SECTION 9. No member shall violate directly or indirectly, the 

provisions of this Article by cooperating with, or using a distributor 

for the purpo e of evasion. 

ARTICLE X-EXPORT SALES I 

SECTION 1. The provisions of this Code concerning sales shall not 

apply to export sales of any product, or to sales of any product destined ultimately for export. The term "export" shall include 

shipments to foreign countries and to the territories and po sessions 

of the United States. 

AnTICLE XI-~1oNOPOLIES 

SECTION 1. No provision in this Code shall be interpreted or applied in such a manner as to (a) permit monopolies or monopolistic 

practices, (b) permit or eneourage unfair competition, (c) eliminate, 

discriminate against, or oppress small enterprises. 
591 

AnTICLE XII-VIOLATION._ 

Violation of any provisions of this Code or any f~th;e s atement or 

report made to the Administrator, or tl.te Code Authority after decision thereon by th AdJnini trator, shall constitute an unfair 

method of competition and the offender hall be subject to the enal~ 

tie proYided by the Act. 

ARTICLE III-~1 DIFIC ATIOX 

SECTION 1. This Code and all the provisions thereof are expres ly 

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

provisions of subsection (b) of Section 10 of the Act, from time to 

time to cancel or modify any order, approval, license, rule or regulation issued under 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 impo ed by him upon his approval thereof. 

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

may be modified on the ba is of experience or changes in circumstances, such modifications to be. based upon application to the Administrator and such notice and hearing a he shall pecify, and to 

become effective on the approYal of the Pre ident. 

ARTICLE XIV-SEGREGATION OF INDUSTRY 

If any member of the Machine-Applied Staple and Stapling Machine Industry is also a member of any other Industry, the provisions 

of this Code shall apply to and affect only that part of his business 

to which this Code applies. 

ARTICLE XV-EFFECTIVE DATE 

This Code shall be effective as the Code of Fair Competition for 

the Machine-Applied Staple and Stapling Machine Industry on the 

second Monday after its approval by the President. 

Approved Code No. 327. 

Registry No. 1300--41. 

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