Approved Code No. 467 Registry No. 1615-13 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

CIGAR MANUFACTURING 

INDUSTRY 

AS APPROVED ON JUNE 19, 1934 

BY 

PRESIDENT ROOSEVELT 

UNITED STATES 

GOVERNMENT PRINTING OFF ICE 

WASHINGTON : 1934 

For sale by the Superintendent of Documents, Washington, D.C. • • • • • • • • • Price 5 cent& 
• 

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 

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.: Chamber 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 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 Commercia:! 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. 

Reattle, Wash.: 809 Federal Office Building. 
Approved Code No. 467 

CODE OF FAIR COMPETITION 

FOR THE 

CIGAR MANUFACTURING INDUSTRY 

As Approved on June 19, 1934 

BY 

PRESIDENT ROOSEVELT 

EXECUTIVE ORDER 

ConE oF F .AIR Col\IPETITIOX FOR THE CIGAR ~IAxUFACTURING L n STRY 

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

compliance with the provisions of Title I of the National Indu trial 

Recovery Act, approved June 16, 1933 for my appro\al of a Code 

of Fair Competition for the Cigar ~Ianufacturin; Industry, and 

hearings ha-ving been held thereon and the Administrator having 

rendered his report containing an analy i of the said Code of Fair 

Competition together with hi recommendation and findings with 

respect thereto, and the Aclmini trator having found that the said 

Code of Fair Competition complie in all re pects with the pertinent 

provisions of Title I of said Act and that the requirements of clauses 

(1) and (2) of sub ection (a) of section 3 of the aid Act have 

been met: 

NO\V, THEREFORE I, Franklin D. Roosevelt, President of 

the United State , pursuant t o the authority ve ted in me by Title I 

of the National Indu trial Recovery Act, approved June 16 1933, 

and otherwise, do adopt and approYe the report, recommendations, 

and findinas of the Admini trator and do order that the said Code 

of Fair Competition be and it is hereby approved, and hall become 

effective on the date of thi Order; subject, howeYer, to the following 

conditions: 

(1) That the provi ion of Article VI and of Schedule I-the 

Cigar ~1erchandising Plan- be stayed and shall not become effective 

until Monday, June 25, 1934. 

(2) That the waiting periods of five and three day contained in 

Article VI, Section I and Schedule I , Part A, Section 1, and in 

Schedule I , P art B, ~ections 1 and 2, respectively, be stayed and 

shall not become effective, notwithstanding said cigar merchandi ing 

plan becoming effective, until the further order of the Administrator. 

68841°----657-124----34----1 (61) 
62 

(3) That all provisions for the filing of prices and discounts in 

said cigar merchandising plan be stayed until arrangements satisfactory to the Administrator, are made for confidential treatment 

and for simultaneous distribution thereof to all members of the 

industry and customers willing to pay the cost thereof. 

( 4) That the provisions of Articles III and IV shall be and the 

same hereby are stayed until, and shall become effective on, Monday, 

June 25, 1934. 

FRANKLIN D. ROOSEVELT. 

Approval recommended: 

HuGH S. JoHNsoN, 

Ad1ninistrator. 

THE W HJTE HousE, 

June 19, 1931,.. 
LETTER OF TRANSJ\IITTAL 

The PRE IDENT, 

The White House. 

Srn: A Public H earing on the Code of Fair Competition for the 

Cigar :Manufacturing Indu try, submitted hy the Associated Cigar 

Manufacturers and Leaf Tobacco Dealer , was held in 1Vashington, 

D.C., on the 22nd and 23rd of November 1933, in accordance with 

the provisions of the National Indu trial Recovery Act, pursuant to 

Notice of Hearing signed by the Secretary of Agriculture under 

Executive Order of June 26, 1933. On April 7, 1934, jurisdiction 

over this Code was transferred to the National Recovery Administration, pursuant to ExecutiYe Order of January 8 1934. 

Certain changes have been made in the Code to conform to NRA 

policy, but these changes are not in conflict with the tran cript of 

the record at the Public Hearing, information and facts filed in 

briefs or adduced at post-hearing conferences with the Code Committee. The Association claims to repre ent more than 80 o of the 

industry and at the Public Hearing, the proposed Code had the 

practically unanimous support of the industry as well as tobacco 

\vholesalers and retailers and tobacco farmers. 

ECONOJ\IIC EFFECT OF THE CODE 

It i tat.ed that the year 1920 was the attainment of the peak for 

the Cjgar ~1anufacturing Industry. In that yea r employees engaged in the industry were slightly in excess of 115,000. In 1929 

the number of employees had declined to approximately 84,000. 

Today the number of employees is said to be in the neighborhood 

of 50. 00. In 1919 the industry employed 1,100 machine worker and 112,000 

hand workers. Since that time there has been a mar ked di placement of hand workers in favor of machine worker , but it is not 

claimed that wage earners have been displaced entirely by reason of 

the introduction of machinery. 

Female employees compri e approximately 79 % of the total number of em plo} ees. The industry compri es approximately 1,250 establi hments with 

total payrolls of $3:1:,200,000. 

HOURS AKD WAGES 

Un ler the Code clerical, accounting or other office employees are 

limited to 40 hours per week and 8 hours per day. All other em- ployees are limited to 40 hours per week but without limitation as tD 

hour per day. Exceptions are provide l for executi\ e, upervisory, 

technical and administrative employees receiving salarien in excess 

of $35.00 per week, outside salesmen, watchmenA chauffeurs, and de-

(63) 
64 

liverymen, firemen and engineers, shipping department employees, 

and employees on emergency repair work. 

The minim.um hours may be exceeded during two peak seasons 

per year to be determined by the Code Authority subject to the 

approval of the Administrator. 

vVith the exception of watchmen, employees are limited to a 6 

day workin<Y week. 

"\Vatchmen are limited to 56 hours per week with a minimum rate 

of pay of $15.00 per week, and office employees are limited to 40 

hours per week with a minimum rate of pay of $15.00 per week. 

The Code establishes a minimum wage r ate per hour for the two 

manufacturing classes within the industry, viz: (1) machine workers, 

(2) hand workers. In the stogie and hand-made cigar industry, wage rates are graduated from minima of 25¢ per hour to 34¢ per hour. One such 

graduation of wages is a provision that cigar makers in this branch 

of the industry who are engaged in the .production of Class C or 

higher priced cigars shall receive 4¢ more per hour as a minimum 

wage. A purpose of this graduation in wages is to insure to labor 

a part of the increased return for the more expensive products of 

the industry. In the machine made cigar industry, wage rates are 

graduated on a somewhat different basis between the same two 

figures. 

The wage rates, established in the Code, provide that the skilled 

worker, in this case the hand-worker, be paid a lower rate of pay 

per week than the unskilled worker, the machine-worker. The result of this method, it is claimed, will serve to curb the displacement 

of hand-workers which has taken effect at a disproportionate rate 

since 1920. 

The Code provides for equitable adjustments. 

The reduction in working hours of employees will not result in 

reemployment but will result in stabilizing, to some extent, present 

employment within the industry. 

It is estimated that the minimum wage rates established in the 

Code w.ill definitely increase the hourly rates and weekly wages .paid 

to wage earners over the wages previously paid employees in this 

industry. 

Article V, Section 14 provides that, " at the expiration of nine 

months after the effective date of the Code, the industry shall petition the President or the Administrator to review the provisions of 

the Code relating to hours of labor and rates of pay." 

The wage and hour provisions meet with the approval of organized labor in this industry and the Labor Advisory Board. 

CIGAR MERCHANDISING PLAN 

The outstanding feature of the fair trade practice prov1swns is 

the cigar merchandising plan, which is also to be found in the 

wholesale a:1d retail tobacco codes. It provides for the retail sale 

of cigars at prices not less than those declared by the manufacturer 

for each of his products, and further prescribes maximum discounts 

allowable by manufacturers or wholesalers from those prices. 

This .plan originated with the retail dealers and was proposed by 

them to the wholesalers and cigar manufacturers. At the Public 
65 

Hearing on this code it was supported by these three groups as well 

as by representatives of tobacco growers. It now has the approval 

of the Consumers Advisory Board, Industrial Advisory Board, 

Labor Advisory Board, and Legal Division. 

It has long been a recognized custom of the industry for manuf acturers to declare intended retail prices, and the internal revenue 

t axes on cigars are computed on such a basis. The plan is based 

on this custom, but free competition between manufacturers, as well 

as the industry's recognition of the imper ative need for retention 

of the five-cent cigar, should serve to prevent increa e in prices. 

The sale of " long shot" cigars, induced by excessive discounts to 

distributors has been an abuse of consumers which will be remedied 

by the provisions limiting the amount of such discounts. This plan 

will permit each manufacturer t o make the best possible cigar in 

each price class. 

At the same time, the use of cigars as "loss leaders" by unrelated 

business has placed a severe burden on persons whose welfare de- pend on the tobacco business. It is hoped that the establishment of 

minimum retail prices will stabilize employment for this large class 

of persons who are, for the most part small bu iness men, dependent 

for their livelihood on this trade. 

FINDINGS 

The Division 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 pron'lote the policies and purpo es 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 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 avoiding undue restriction of production (except as may be temporarily 

required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing 

and relieving unemployment, by improving standards of labor, and 

by otherwise rehabilitating industry. 

(b) The Code 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 imposes no inequitable restrictions on admission 

to membership therein. 

(c) The Code is not designed to and will not permit monopolies 

or monopolistic practices. 

(d) The Code is not designed to and will not eliminate or oppress 

small enterprises and will not operate to discriminate against them. 
66 

(e) 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 the above reasons this Code is hereby recommended for 

approval. 

Respectfully, 

JUNE 19, 1934. 

HuGH S. JoHNsoN, 

Adrrninistrator. 
CODE OF FAIR COMPETITION FOR THE CIGAR MANUFACTURING I NDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, this Code is established as a Code of Fair Competition for the Cigar Manufacturing Industry, and its provisions shall 

be standards of fair competition for such indu try and shall be 

binding upon every member thereof. 

ARTICLE II-DEFIXITIONS 

As used in this Code, the following words and phrases shall be 

defined as follows : 

SECTION 1. The term " President " means the President of the 

United States of America. 

SEcTioN 2. The Term "Administrator" means the Admini trator 

for Industrial RecoYery. 

SECTION 3. The .term "Act" means Title I of the National Industrial Reco\ery Act. SECTION 4. The term" cigar manufacturing industry" means and 

includes the manufacturing into cigars of cured leaf tobacco, 

stemmed tobacco, scrap, and/ or shredded filler for use in the manufacture for sale of cigars. 

SECTION 5. The term "cigar" means and includes cigars, stogies, 

cheroots and little cigars. 

SECTION 6. The terms "member of the industry", " manufacturer" and "cigar manufacturer " mean and include without limitation any person engaged either as an employer or for his or its 

own account in the Cigar Manufacturing Industry. SEcTION 7. The term "employee" includes any and all persons 

engaged in the industry, however compensated, except a member of 

the industry. 

SECTION 8. The term "employer" means any per on by whom any 

such employee is compensated or employed. 

SECTION 9. The term" productive employee" means any employee 

working in the factory and included in the factory payroll, and 

governed by the factory regulation. 

SECTION. 10. The term ' unskilled labor" means and includes common labor not requiring previous training and excludes han l and 

machine cigar makers, packers, strippers, inspector , banders, and 

cellophane operators. 

SECTION 11. The term "watchman" mean any employee who for 

not less than ninety (90) percent of his workinO' hours is engaged 

in watching and guarding the premi es of the establishment. 

SECTION 12. The term "deliveryman" means any employee who e 

principal function is the delivery of merchancli e, and who does not 

sell. 

68841°----657-124----34----2 (67) 
68 

SEcTION 13. T he term" outside salesman" means any salesman who 

performs principally the selling f unction outside the est ablishment 

where he is employed, and who may deliver. 

SECTION 14. The t erm " south" incl udes the f ollowing States : Alabama, Arkansas, Florida, Georgia, l(entucky, Louisiana, Mississippi, 

North Carolina, South Carolina, T ennessee, T exas and Virginia. 

SECTION 15. The term "accredited cigar jobber " means any wholesale distributor of cigars who maintains a sales organization and 

has an exclusive selling arr angement f or a brand or brands of cigars 

for which he assumes the r esponsibility of promotion, distribution 

and care in a definite territory assigned to him. 

SECTION 16. The t erm " cigar service jobber" means any wholesale 

distributor of cigars other than an accredited cigar jobber. 

(A jobber may oo an accredited cigar jobber as to a certain brand 

or brands and a cigar ser vice jobber as to others.) 

SECTION 17. The t erm " jobber" means any wholesale distributor 

of cigars who buys directly from the manufacturer. 

SEcTioN 18. The term " sub-jobber" means any wholesale distribu tor of cigars, who purchases cigars from jobbers or jobbing establishments of manufacturers instead of directly from manufacturers. 

(A person may be a jobber as to certain cigars and a sub-jobber 

as to others.) 

SECTION 19. The term "retailer" means any person engaged 

wholly or partially for his own account in the selling of cigars dir ectly to the consumer and not for purposes of resale in any form. 

SECTION 20. The term "chain of stores" means a group of retail 

stores having single ownership and maintaining one or more bona 

fide central distributing depots from which individual units are 

serviced, and also bona fide central buying, storing, supervising and 

accounting organizations. 

SECTION 21. The term "person " includes all individuals firms, 

partnerships, unincorporated associations, corporations and other 

forms of enterprise. 

SECTION 22. The term " State " means any State or Territory and 

the District of Columbia. 

SECTION 23. The term "Association" means Associated Cigar Manufacturers and Leaf Tobacco Dealers. 

SECTION 24. The t erm " Council " means National Tobacco Council, 

Inc., a New York Corporation, or such other agency as shall be design ated for the purposes of Schedule I, hereto attached, by the Code 

Authority hereby established and by the Code Authorities for the 

Wholesale T obacco Trade and the Retail Tobacco Trade. 

ARTICLE III 1-HOURS 

SEcTioN 1. No clerical, accounting or other office employees shall 

be permitted to work in excess of forty ( 40) hours in any one week 

or eight (8) hours in any one day and no other employee shall be 

permitted to work more than forty ( 40) hours in any one week, 

except as f ollows : 

1 Effective June 25, 1934. See paragraph 2 ( 4) of order approving this Code. 
(a) E xecutive, supervisory, technical and administrative employeesb provided that they receive regularly thirty-five dollars 

($35.00 per week or more. 

(b) utside salesmen. 

(c) Watchmen, provided that no watchman shall be permitted to 

work in excess of fifty-six (56) hours in any one week. 

(d ) Chauffeurs and deliverymen, provided that no such employee 

shall be permitted to work in excess of forty-eight ( 48) hours in auy 

one week. 

(e) Firemen and engineer , provided that no such employees shall 

be permitted to work 1n excess of forty-four ( 44) hours in any one 

week. 

(f) Shipping department employees, provided that no such employee shall be permitted to work in excess of forty -four ( 44) hours 

m any one week or eight (8) hours in any one day unless paid at 

t he rate of time and one-th1rd for all time worked in excess thereof. 

(g) Productive employees during two peak seasons per year, 

p rovided that the number of weeks and the number of hours per 

week in each season shall be determined by the Code Authority, 

subject to the approval of the Administrator. 

SECTION 2. No employee except watchnTen shall be permitted to 

work more than six (6) days in any seven (7) day period. 

SECTION 3. The maximum hours fixed above shall not apply to 

employee on emergency repair work provided that any such employee working in excess of eight (8) hours in any one day or fortyfour ( 44) hours in any one·week shall be compensated by at least 

time and one-third for all such excess time. 

SECTION 4. All time worked on Sundays and legal holidays, except 

by watchmen, engineers and firemen, shall be compensated at the 

r ate of time and one-thir d. 

ARTICLE IV 1- \V AGES 

SECTION 1. No clerical, accounting or other office employee shall 

be paid at a rate of less than fifteen dollars ($15.00) per week of 

f orty ( 40) hours. 

SECTION 2. No watchmen shall be paid at a rate of less than fifteen 

dollars ($15.00) per week of fifty-six (56) hours. 

SECTION 3. No stripper shall be paid at a rate of less than twentyfive cents (25¢) per hour p rovided that stripT?ers that are classed 

as slow workers up to twenty-five percent (25 % ) of the total number 

of such workers, need not receive the minimum hourly rate herein 

specified, if (1) they are paid the same piece work r ate as paid 

other employees of the same class and (2) they are paid at a rate 

of not less than twenty-two and one-hal! cents (22¥2¢) per hour. 

SECTION 4. Unskilled labor in the South shall be paid at a rflte 

of not less than twenty-five cents (25¢) per hour. 

SECTION 5. No productive employee engaged in the production of. 

stogies or hand made cigars to retail at not more than two for five 

cents shall be paid less than twenty -seven cents (27 ¢) per hour and 

no machine cigar operator engaged in the production of cigars made 

1 Effec tive J une 25, 1934. See pa ragraph 2 ( 4) of order appr oving this Code. 
70 

to retail at not more than two for five cents shall be paid less than 

twenty-nine cents (29¢) per hour. 

SEcTION 6. No cigar maker in the Hand Made Industry, except as 

provided in Section 5, shall be paid at a rate of less than thirty 

cents (30¢) per hour; excepting in the South in which no cigar 

maker in the Hand ~fade Industry shall be paid less than twentyeight cents (28¢) per hour; provided, however, that cigar makers 

engaged in the production of cigars other than class A and B cigars 

shall be paid at a rate of not less than four cents ( 4¢) per hour in 

addition to the rate established above. 

SECTION 7. No machine operator except as provided in Section 5 

shall be paid at a rate of less than thirty-four cents ( 34¢) per hour 

excepting in the South, in which no machine ciga.r maker shall be 

paid less than thirty-two cents ( 32¢) per hour. 

SEcTION 8. No employee other than those for whom specific provision is made in this Article shall be paid at a rate of less than 

twenty-eight cents (28¢) per hour. 

SEcTION 9. Cigar makers in the Hand Cigar Manufacturing and 

Stogie Manufacturing Industry who are classed as slow workers, up 

to twenty-five precent (25%) of the total number of such workers, 

and machine cigar operators, up to ten percent ( 10%) of the total 

number of such workers, need not receive th~ minimum hourly rate 

herein specified, provided they shall be paid the same piece rate 

as paid other employees of the same class. 

SECTION 10. Upon application of any employer, at any time a 

higher rate of exemption for slow wo·rkers than is established in 

Section 9 of this Article may be established by the Code Authority 

with the approval of the Administrator. At any time after September 1, 1934, a higher or lower rate of exemption may be established 

for any particular employer by the Code Authority, with the approval of the Ad1ninistrator, after such notice and opportunity to 

be heard a the Administrator may require. 

SECTION 11. All piece rate shall be established so as to yield the 

minimum rates of pay provided in this Article and no piece rate 

shall be reduced in order to increase the actual number of slow 

workers employed by any 1nanufacturer. 

SECTION 12. The wages of all employees now in excess of the 

minima herein established shall be equitably readjusted. 

SECTION 13. Where male and female employees perform substantially the same duties or do substantially the same work, they shall 

receive the same rate of pay. 

ARTICLE V-GENERAL LABOR PROVISIONS 

SEcTION 1. 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 employer::; of labor, or their agents, in the designation of such representatives or in self-org-anization or in other concerted activities for the 

purpose of collective bargaining or other mutual aid or protection. 

SECTION 2. 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. 
71 

SECTION 3. Employers shall comply with the maximum hours o:f 

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

approved or prescribed by the Pre ident. 

SECTION 4. No person under the age of ·ixteen ( 16) years shall be 

employed in the cigar manufacturing industry. 

SECTION 5. No person under eighteen ( 18) years of age shall work, 

or be permitted to work, at operations or occupations hazardous in 

nature or detrimental 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 occupations for his approval. 

SEcTION 6. Employers shall make payment of all wages in la·wful 

currency or by negotiable checks, payable on demand. All contracts 

of employment shall prescribe payment of wages at least every two 

weeks and salaries at least as often as every month. 

S:ccTION 7. 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. 

SECTION 8. Employers shall not change the method of payment 

of employees' compensation or reclassify em.ployees or duties of occupations performed by employees or engage in any other subterfuge so as to defeat the purposes of the Act or the provisions of 

this Code. 

SECTION 9. No employee paid at a rate in excess of the minimmn 

shall be discharged and reemployed at a lower rate of pay for the 

purpose of evading the provisions of this Code. 

SEcTION 10. All employers shall keep posted complete copies of 

the provisions of this Code dealing with hours, wages and conditions 

of employment in conspicuous places of easy and continuous access 

to employees. 

SECTION 11. Each member of the industry shall comply with such 

rules and regulations with regard to the posting of notices, bulletins 

and extracts of Code provisions as may be from time to time further 

issued by the Administrator. Such notices, bulletins and extracts 

of Code provisions shall be written in English and such other languages as may be in general use throughout the establishment. SEcTioN .12. Every employer shall make reasonable provision 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 Administration within six ( 6) months after the 

effective date of this Code. 

SECTION 13. After the effective date of this Code, -wages shall be 

exempt from fines and rebates; and from charges and deductions, 

exce.pt charges and deductions for employees contributions voluntarily made by employees for benefit funds. No employer shall 

withhold wages except upon serYice of legal process or other papers 

lawfully requiring such withholding. 

Deductions for other purposes not heretofore stated may be made 

only when the contract is in writing and is kept on file by the em- ployer for six ( 6) months after the termination of the contract and 
72 

which shall be kept open for the inspection of Government representatives. 

SECTION 14. At the expiration of nine (9) months after the effective date of this Code, the industry shall petition the President or the 

Administrator to review the provisions of this Code relating to hours 

of labor and rates of pay. 

ARTICLE VI 2-CIGAR MERCHANDISING PLAN 8 

The Merchandising Plan in Schedule I annexed hereto, adopted 

for the Wholesale Tobacco Trade and the Retail Tobacco Trade in 

their respective Codes of Fair Competition and hereinafter for convenient reference in part repeated, is hereby accepted, adopted and 

approved; and all of the provisions of the said plan insofar as they 

purport to regulate the conduct of members of the cigar manufacturing industry are hereby made rules of fair practice and fair 

competition for all members of the cigar manufacturing industry. 

The provisions of said Schedule I and of this Article VI may be 

amended only by amendment of this Code and of the Codes for the 

Wholesale Tobacco Trade and the Retail Tobacco Trade. The said 

provisions may at any time be stayed by the Administrator, of his 

own motion or on application by any interested party, and on such 

notice and hearing, if any, as the Administrator may direct; and 

said _provisions shall automatically be stayed upon the election o:f 

the Code Authority established by any one of said three Codes, such 

stay to become effective, unless such election shall have been meanwhile withdrawn, thirty (30) days after notice of such election shall 

have been filed with the Administrator. 

SECTION 1. As to each of the cigars of his manufacture, each cigar 

manufacturer shall record with the Council the minimum sales fnce 

at which such cigar is intended to be sold at retail (exclusive o any 

governmental tax or charge thereon required to be paid by the jobber 

or retailer), which price, hereinafter referred to as "the retail 

price" shall constitute the basis for computing the discounts and 

terms for all dealers as hereinafter provided; and shall also record 

with the Council the discounts and credit terms to be allowed by 

him from the retail price in connection with the several respective 

classes of transaction described in subdivisions (a) to (d) inclusive 

of Section 2 of this Article VI. The retail price and, within the 

limits hereinafter prescribed, the discounts shall be subject to change 

at the discretion of the manufacturer, provided the revised price or 

discounts as the case may be, be recorded with the Council at least 

five ( 5) days before the change becomes effective unless a shorter 

time be required by a cigar manufacturer in order to meet a competitor's reduction of price which is not in violation of this rnerchandising plan. 4 The retail price shall be prominently marked on 

each container of cigars. 

SECTION 2. From the recorded retail price, each cigar manufacturer shall, as to each of his cigars, grant discounts to be established 

2 Effective June 25. 1934. See paragraph 2 (1) of orrler approving· this Oode. 8 Provisions for filing of prices and discounts stayed until further orders. See 

paragraph 2 (3) of order approving this Code. 

£Italicized words deleted. See paragraph 2 (2) of order approving this Code. 
73 

by him in his discretion within the limits hereinafter in this Section 

2 prescrib:ed, as follows: 

(a) In the case of sales, if any, to retailers other than sales to 

chains of stores and other than drop shipment ales under subdi- vision (d) of this Section 2, a discount of not more than twentyeight percent (28%) . (b) In the case of sales to accredited cigar jobbers, a discount, in 

addition to the discount which shall have been established by the 

manufacturer under subdivision (a), of not more than fourteen 

percent (14 7(: ). 

(c) In the ca e of sales to cigar ervice jobbers, a discount in 

addition to the discount which shall have been establi heel by the 

manufacturer under subdivision (a), of not more than sixty-six and 

two-thirds percent (66% % ) of the establi heel discount to accredited 

jobbers. Provided, however, that in territorie where no accredited 

cigar jobber exists, a manufacturer may allow a cigar service jobber 

a discount not to exceed ten percent (10% ) on any particular cla s 

of cigars in addition to the discount which shall have been established by the manufacturer under subdivision (a). 

(d) In a territory where a cigar manufacturer has an accredited 

cigar jobber, the cigar manufacturer may, in his discretion, make 

drop shipments to retailers or sub-jobbersi provided the accredited 

cigar jobber agrees to or requests such lipment ; in a territory 

where the cigar manufacturer has no accredited cigar jobber, the 

cigar manufacturer may, in his discretion, make drop shipments, to 

retailers. Provided that in either case shipments shall be made 

only in quantities of not less than 2,000 cigars in the case of Class A 

and Clas B cigars, and not less than 1,000 cigars in the ca e of 

Class C or higher clas es. 

For such ales or drop shipments, there shall be established a discount for the drop shipment purchaser, in addition to the eli count 

which shall have been established by the manufacturer under ubdivision (a), of not n1ore than five percent ( 5%), and this eli count 

shall be allowed by the manufacturer or Jobber, whichever shall 

make the billing. 

The cigar manufacturer may in connection with each drop shipment sale. allow to the accredited cigar jobber who has reque ted 

or consented to such sale a service credit. Provided, that the total 

of the service credit and the discotmt allowed to the drop shipment 

purchaser and the accredited cigar jobber shall not exceed the 

fourteen percent (14% ) set forth in subdivision (b) above. 

(e) In the case of sales to chains of stores, eli counts not exceeding 

the discounts which the manufacturer shall have established for his 

sales to accredited cigar jobbers under subdivision (b), provided, 

however, that each cigar manufacturer may determine in his own 

discretion to which chains, if any, he will make direct sales and, 

within the limits hereinabove prescribed, the amount of discounts 

on each such sale. 

On each transaction in any of the categories (a) to (d) inclusive 

above described, the ciAar manufacturer may allow a further discount of two percent ~2 ) for cash within his established credit 

terms. 
74 

Nothing herein contained shall prevent any cigar manufacturer 

from establishing within the maximum percentage limits hereinabove prescribed a different schedule of discounts with respect to 

each of the several brands, sizes, shapes or prices of his products, 

or a schedule of discounts different from that of any other cigar 

manufacturer; but each cigar manufacturer shall apply his established system of discounts uniformly as to each of the classes of 

transactions above enumerated in subdivisions (a) to (d) inclusive, 

and within each of the said classes of transactions there shall in no 

case be any individual variation or variations from the discount 

or discounts so established by such cigar manufacturer. The service 

credits provided for in subdivision (d) need not be uniform and may 

varv in each individual case. 

SEcTION 3. No manufacturer shall sell cigars at retail to consumers except in accordance with the provisions of this merchandising plan relating to sales by retailers; but the provisions of this 

merchandising plan shall not apply to any cigar manufacturer who 

sells exclusively and directly to the consumer. 

SECTION 4. No manufacturer shall offer or give a free deal. The 

term " free deal " as used in this paragraph means the gift of cigars 

or anything of value or any special deal, discount or allowance conditioned upon the purchase of a product. 

SECTION 5. All sales by manufacturers shall be evidenced by 

itemized invoices showing the retail price and the discounts granted 

therefrom. 

SECTION 6. Upon the recommendation of the Code Authority 

established by this Code or the Code for the Wholesale Tobacco 

Trade or the Code for the Retail Tobacco Trade or upon application of any member of the Cigar Manufacturing Industry or of 

the Wholesale Tobacco Trade or of the Retail Tobacco Trade and 

the approval of such recommendation or application by the Adminjstrator, the Code Authorities established by the said several Codes, 

shall, upon such notice and opportunity to be heard, if any, as the 

Administrator may require determine by joint action minimum discounts to be prescribed in connection with sales of cigars by any 

member of the Industry, and such determination shall be effective 

only upon the concurrence of all three Code Authorities and, subject to the further approval of the Administrator, such minimum di:::;-

counts shall be binding upon all members of the Industry. 

SECTION 7. Wherever any of the provisions of this merchandising 

plan provide for two or more discounts from the retail price, such 

discounts shall be computed separately and successively so that each 

succeeding discount shall be computed upon the balance of the retail 

price remaining after the deduction of the next preceding discount 

provided for. 

SECTION 8. Nothing in this merchandising plan shall be construed 

to prevent the free and general distribution of articles commonly 

used for advertising purposes or premiums, except insofar as such 

distribution and use of premiums would constitute, in effect, an additional discount or a reduction in price below the minima established 

hereby. 

SECTION 9. All prices and discounts filed with the Council by 

manufacturers, jobbers or sub-jobbers, as hereinbefore provided shall 
75 

immediately be reported by the Council to the respective Code Au-: 

thorities for the Cigar Manufacturing Industry, The Wholesale Tobacco Trade and the Retail Tobacco Trade. Each such Code 

Authority shall cause such prices and discounts to be made available 

to all members of its respective industry or trade, and shall comply 

with any regulations which may be issued by such Code Authority 

with the approval of the Administrator as to the publication and 

dissemination thereof. 

ARTICLE VII-TRADE PRACTICES 

SECTION 1. False Advertising.-The 1naking or causing or permitting to be made or published of any false, untrue or deceptive 

statement by way of advertising or otherwise concerning the grade, 

quality, quantity, substance, character, nature, origin, size or preparation of any product of the trade, having the tendency and capacity 

to mislead or deceive purchasers or prospective purchasers and the 

tendency injuriously to affect the business of competitors, is prohibited as an unfair method of competition. 

SECTION 2. Deceptive Brandin,q .-The infringement of established 

trade-marks and the use of trade-marks or trade names which will 

result in deception of the public or enable dealers to perfect such 

deception is prohibited as an unfair method of competition. 

SECTION 3. False Billing.-No member of the industry shall knowingly withhold from or insert in any quotation or invoice any statement that makes it inaccurate in any material particular. 

SECTION 4. Inaccurate Labelling.-No member of the industry 

shall brand or mark or ·pack any cigar and/or cigars in any manner 

which is intended to or does deceive or mislead purchasers with 

respect to brands, grade7 quality, quantity, origin, size, substance, 

character, nature, matenal content, or preparation of such cigar 

and/or cigars. 

SECTION 5. Inaccurate References to Competitors, Etc.-No member of the industry shall publish advertising which refers inaccurately in any material particular to any competitors or their goods, 

prices, values, credit terms, policies or services. 

SECTION 6. Threats of Law Suits.-No member of the industry 

shall publish or circulate unjustified or unwarranted threats of legal 

proceedings which tend to or have the effect of harassing competitors 

or intimidating their customers. Failure to prosecute in due course 

shall be evidence that a.ny such threat is unwarranted or unjustified. 

SECTION 7. Bribing Employees.-No member of the industry shall 

give, permit to be given, or directly or indirectly 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 

agent or the represented party, without the knowledge of such employer, principal or party. This provision shall not be construed to 

prohi~it. 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. 

SECTION 8. Ooeroion.-No member of the industry shall require 

that. a. purchase of any tobacco products or other goods be a prerequisite to the purchase of any other tobacco products. 
76 

SECTION 9. No member of the industry shall distribute any cigars 

or stogies, produced by employees paid at the wage rates prescribed 

in Article IV, Section 5 of this Code, unless such cigars or stogies 

are packed in containers clearly marked to indicate to the consumer 

that the cigars or stogies contained therein are intended to sell at 

retail, at not more than two (2) for five ( 5) cents. 

ARTICLE VIII-OnGANIZA TION, PowERS AND DuTIES OF THE ConE 

AUTHORITY 

ORGANIZd.TION AND CONSTITUTION 

SECTION 1. There shall forthwith be constituted a Code Authority 

consisting of not more than thirteen ( 13) members to be selected as 

follows : 

Six (6) members, three (3) of whom shall represent machine cigar 

manufacturers and three (3) of whom shall represent hand cigar 

manufacturers, selected by the manufacturers who are members of 

t he Associated Cigar Manufacturers and Leaf Tobacco Dealers. 

Two (2) members, one of whom shall be appointed by the Labor 

Advisory Board and one of whom shall be appointed by the Consumers Advisory Board of the National Recovery Administration. 

Two (2) members, one of whom shall represent machine cigar 

manufacturers and one of whom shall represent hand cigar manufacturers, selected by and from non-members of the foregoing Association. Within fifteen (15) days after the effectiv·e date hereof the 

other members of the Code Authority shall submit to the Administrator a plan for the selection of said two (2) members which, upon 

his approval, shall become effective. · 

SEcTION 2. In addition to membership as above providedb there 

ma.y be not more than three (3) members, to be appointed y the 

Administrator to serve without vote. 

SECTION 3. The Association and each trade or industrial association directly or indirectly participating in the selection or activities 

of the Code Authority shall (1) impose no inequitable restrictions on 

membership, and (2) submit to the Administrator true copies of its 

articles of association, by-laws, r egulations, and any amendments 

·when made ther eto, together with such other information as to 

membership, organization, and activities as the Administrator may 

deem neces ary to effectuate the purposes of the Act. 

SECTION 4. In order that the Code Authority shall at all times be 

truly repre entative of the indu try 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 of the method of selection of the Code 

Authority. 

SECTION 5. Nothing contained in this Code shall constitute the 

members of the Code Authority partners for any purpose. . Nor 

shall any member 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 ~he Code 
77 

Authority exercising reasonable diligence in the conduct of his duties 

hereunder, be liable to anyone for any action or omi ion to act 

under this Code, except for his own willful misfea ance or nonfeasance. 

SEcTION 6. If the Administrator shall at anv time determine that 

any action of the Code Authority or any a;·ency thereof may be 

unfair or unjust or contrary to the public intere t, the Administrator 

may require that uch action be uspended to afford an oppor~unity 

for in1. estigation of the merits of such action and further consideration by such Code Authority or agen y pending final action which 

shall not be effective unles the Admini trator approves or unle-s 

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. 

POWERS AND D TIES 

SEcTION 7. Subject to such rules and regulations as may be issued 

by the Administrator, the Code Authority shall have the following 

powers and duties, in addition to those authorized by other provisions 

of this Code : 

(a) To insure the execution of the provisions of this Code and to 

provide for the compliance of the industry with the provi ions of 

the Act. 

(b) To adopt by-laws and rules and regulations for its procedure. 

(c) To obtain from members of the industry such information 

and reports as are required for the administration of the Code. In 

addition to information required to be submitted to the Code Authority, members of the industry subject to this Code shall furni h ~uch statistical information as the Ad!ninistrator may deem necessary for the purpo es recited in Section 3 (a) of the Act to such 

Federal and State agencies as he may designate; provided that 

nothing in this Code shall relieve any member of the industry of any 

existing obligations to furnish reports to any Government agency. 

No individual report shall be disclosed to any other member of the 

industry or any other party except to such other Governmental 

agencies as may be directed by the Administrator. 

(d) To use such trade associations and other agencies as it deems 

proper for the carrying out of any of its activities provided for 

herein, provided that nothing herein shall relieve the Code Authority of its duties or responsibilities under this Code and that such 

trade associations and agencies shall at all times be subject to and 

comply with the provisions hereof. 

(e) To make recommendations to the Administrator for the coordination of the administration of this Code with such other codes, 

if any: as may be related to or affect members of the industry. 

(f) (1) It being found nece ary to support the ad-ministration of 

this Code, in order to effectuate the policy of the Act and to maintain 

the standards of fair competition established hereunder, the Code 

Authority is authorized: 

(a) To incur such reasonable obligations as are necessary and 

proper for the foregoing purpo es and to meet such obligations 

out of funds which shall be held in trust for the purposes of 

the Code and raised as hereinafter provided; 
78 

(b) To submit to the Administrator for his approval, subject 

to such notice and opportunity to be heard as he may deem 

necessary, (1), an itemized budget of its estimated expenses for 

the foregoing purposes, and (2), an equitable basis upon which 

the funds necessary to support such budget shall be contributed 

by all members of the industry; 

(c) After such budget and basis of contribution have been 

approved by the Administrator, to determine and collect equit- able contributions as above set forth, and to that end, if necessary, to institute legal proceedings therefor in its own name. 

(2) Each member of the industry shall be liable for his or its 

equitable contribution to the expenses of the maintenance of the 

Code Authority as hereinabove provided. Only members of the 

i:udustry complying with the Code and making such contribution 

shall be entitled to participate in the selection of the members of 

the Code Authority or to receive the benefits of its voluntary activities or to make use of any N.R.A. insignia. 

(g) To cooperate with the Administrator in regulating the use 

of any N.R.A. insignia solely by those members of the industry who 

are complying with this . Code. 

(h) To recommend to the Administrator any action or measures 

deemed advisable, including further fair trade practice provisions 

to govern members of the industry in their relations with each other 

or with other industries; measures for industrial planning, and stabilization of employment; and including modifications of this Code 

which shall become effective as part hereof upon approval by the 

Administrator after such notice and hearing as he may specify. 

(i) To 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 employers under 

this Code and such other codes to the end that such fair trade practices may be proposed to the Administrator as amendments to this 

Code and such other codes. 

(j) To provide appropriate facilities for arbitration, and subject 

to the approval of the Administrator, to prescribe rules of procedure 

and rules to effect compliance with awards and determination. 

SECTION 8. Any member of the industry may submit data tending 

to prove that such member is placed at a competitive disadvantage 

with, or is subject to different economic conditions to those of other 

members of the industry; and the Code Authority may, after investigation, recommend to the Administrator that change be made 

in the Labor Provisions of this Code, and upon approval by the 

Administrator, after such notice and hearing as he may specify, 

such new provisions shall become effective for that member of the 

i:1dustry. · 

SECTION 9. 'Vhenever any question may arise under this Code as to 

the construction and meaning of any portion thereof, the Code 

Authority may issue such interpretations as may be nec.essary to 

effectuate the operation of and compliance with the policy of tiL 

Act, subject at .all times to the approval of the Administrator and 

such interpretations approved by the Administrator shall become 

operative as a part of this Code. 
79 

SECTION 10. No provision of this Code shall deny to any member 

of the indu try or to any party in any proceeding the right to 

appeal to the Administrator nor preYent, at any time, direct appeal 

to him from any determination of the Code Authority. The Code 

Authority may, if it chooses, inYoke the procedure provided for in 

this Section. 

ARTICLE IX-MODIFICATION 

SECTION 1. This Code and all the provisions thereof are expressly 

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

provisions of sub-section (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. 

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

may be modified on the basis of experience or changes in circumstances, such modifications to be based upon application to the Administrator and such notice and hearing as he shall specify and to 

become effective on approval of the Administrator. 

ARTICLE X-MONOPOLIES, ETc. 

No provision of this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. 

ARTICLE XI 

The provisions of this Code shall not apply to the Territory of 

Puerto Rico, but its provisions shall apply to the marketing of 

Puerto Rican cigars, by the manufacturers thereof, in the United 

States. 

ARTICLE XII-EFFECTIVE DATE 

This Code shall become effective on the date specified by the 

President in his order of approval. 

Approved Code No. 467. 

Registry No. 1615-13. 
SCHEDULE Ill 

CIGAR l\fE&CHANDISING PLAN • 

A. SALES BY CIGAR MANUFACTURER.S 

SECTION 1. As to each of the cigars of his manufacture, each cigar manufacturer sha ll record with the Council the minimum sales price at which such 

cigar is intended to be old at retail (exclusive of any governmental tax or 

charge thereon required to be paid by the jobber or retailer), which price, 

hereinafter referred to as "the retail price" shall constitute the basis for computing the discounts and terms for all dealers as hereinafter provided; and 

shall also record with the Council the discounts and credit terms to be allowed 

by him from the r etail price in connection with the several respective classes 

of transaction described in subdivisions (a) to (d) inclusive of Section 2 of this 

Division A. The retail price and, within the limits hereinafter prescribed, the 

discounts shall be subj ect to change at the discretion of the manufacturer, provided the r evised price or discounts as the case may be, be r ecorded with the 

Council at least five (5) days before the change becom s effective 1tnless a 

sh01·te1· time be r eq1tired by a CJigar rnanutactw·er in OTder to m eet a competUor's r eduction of price whJiol~ is not vn vio~ation of this merohandising 

plan. 4 The retail price shall be prominently marked on each container of 

cigars. SECTION 2. F rom the recorded retail price, each ciga r manufacturer shall, as 

t o each of his ·igars, grant discounts to be established by him in his discretion 

within the limits hereinafter in this Section 2 prescribed, as follows : 

(a) In the ca e of sales, if any, to r etailers other than sales to chains of 

stores and other than drop shipment sales under subdivision (d) of this Section 

2, a discount of not more than twenty-eight percent (28o/o) . 

(b) In the case of sales to accredited cigar jobbers, a discount, in addition 

to the discount which shall have been established by the manufacturer under 

subdivision (a), of not more than fourteen percent (14o/o). 

(c) In the case of sales to cigar service jobbers, a discount, in addition to 

the discount which shall have been established by the manufacturer under 

subdivision (a), of not more than sixty-six and two-thirds percent ( 66% o/o) 

of the established discount to accredited jobbers. Provided, however, that in 

tenitories where no accredited cigar jobbers exists, a manufacturer may allow 

a cigar service jobber a discount not to exceed ten percent (10%) on any 

particula r class of cigars in addition t o the discount which shall have been 

established by the manufacturer under subdivision (a). 

(d) In a territory where a cigar manufacturer has an accredited cigar 

jobber, the cigar manufacturer may, in his discretion, make drop shipments to 

reta ilers or sub-jobbers, provided the accredited cigar jobber agrees to or 

r eque ts such shipments; in a territory where the cigar manufacturer has no 

accredited cio·ar jobber, the cigar manufacturer may, in his discretion, make 

drop shipments t o retailers. Provided that in either case shipments shall be 

made only in quantities of not less than 2,000 cigars in the case of Class A · and Class B cigars, and not less than 1,000 cigars in the case of Class C or , higher clas es. For such sales or drop shipments, there shall be established a discount fo-r 

the drop shipment purchaser. in addition to the discount which shall have 

been established by the manufacturer under subdivision (a), of not more than 

fi1e percent (5o/o), and this discount shall be allowed by the manufactu!.'er or 

jobber, whichever shall make the billing. 

2 Effective June 25. 1934. See paragraph 2 (1) of order approving this Code. 8 Provisions for filing of prices and discounts stayed until further orders. See 

paragraph 2 (3) of order approving this Code. 

'Italicized words deleted. See paragraph 2 (2) of order approving this Code. 

(80) 
81 

The cigar manufacturer may in connection with each drop shipment sale 

allow to the accredited cigar jobber who has requested or consented to such! 

sale a service credit. Provided, that the total of the service credit and! the dis· 

count allowed to the drop shipment purchaser and the accredited cigar jobber 

shall not exceed the fourteen percent ( 14% ) set forth in ubdivi ion (b) above. 

(e) In the case of sales to chain of stores, discount not exceeding the discounts which the manufacturer shall have established for his sales to accredited 

cigar jobbers under subdivi ion (b), provided, however, that each cigar manufacturer may determine in his own di cretion to which chains, if any, be will 

make direct sales and, within the limits hereinabove presc1·ibed, the amount of 

discount on each such sale. 

On each transaction in any of the categories (a) to (d) inclusive above described, the cigar manufacturer may allow a further discount of 2% for cash 

within his established credit terms. 

Nothing herein contained shall prevent any cigar manufacturer from establishing witllin the maximum percentage limits hereinauove prescribed a different schedule of discounts with respect to each of the several brands, sizes, 

shapes or prices of his products, or a schedule of discounts different from that 

of any other cigar manufacturer; but each cigar manufacturer shall apply his 

established system of discounts uniformly as to each of the cla ses of transactions above enumerated in subdivisions (a) to (d) inclusive, and within 

each of the said classes of transactions there shall in no case be any individual 

variation or variations from the discount or discounts so establi hed by such 

cigar manufacturer. The service credits provided for in subdivision (d) need 

not be uniform and may vary in each individual case. 

SEcTION 3. No manufacturer shall sell cigars at retail to consumers except 

in accordance with the provisions of this merchandising plan relating to sales 

by retailers ; but the provisions of this merchandising plan shall not apply to 

any cigar manufacturer who sells exclusively and directly to the consumer. 

SECTION 4. No manufacturer shall offer or giYe a free deal. The term " free 

deal" as used in this paragraph means the gift of cigars or anything of value 

or any special deal, discount or allowance conditioned upon the purchase of a 

product. 

SECTION 5. All sales by manufacturers shall be evidenced by itemized invoices 

showing the retail price and the discounts granted therefrom. 

B. SALES BY JOBBEBS AND SUBJOBBERS 

SECTION 1. Each jobber shall record with the Council the discounts and credit 

terms (not exceeding the discounts which such jobtJer shall have received from 

the manufacturer) to be allowed by the jobber from the retail price in connec- tion with all resales of cigars which in his discretion he may make to subjobbers. Such discounts shall be subject to change at the discretion of the 

jobber provided that the revised discounts be recorded with the Council at 

least three days before the change becomes effective unless a shorter time be 

r equired in order to meet a oompetito1"s red-u,ction of price which is not in 

violation of this merchandising plan; 4 and the discounts so recorded shall so 

long as effective apply to all such resales by the jobber to subjobbers and there 

shall in no case be any individual variation or -variations from the discount or 

discounts so established. 

SECTION 2. Each jobber and each sub-jobber shall record with the Council the 

discounts and credit terms (not exceeding the discounts from the retail price 

which such jobber or sub-jobber shall have received from the manufacturer or 

jobber, as the case may be) to be allowed upon all resales of cigars to retailers. 

Such discounts shall be subject to change at the discretion of the jobber or subjobber provided the revised discounts be recorded with the Council at least 

three days before the change becomes effective unless a shorter time be required 

in order to meet a competitor's 1·eduction of pri.ce which is not in violation of 

this merchandising plan; 4 and the discounts so recorded shall, so long as effective, apply to all such resales to retailers and there shall in no case be any 

individual variation or variations from the discount or discounts so established. 

SEOTION 3. Each resale by a jobber or sub-jobber under this merchandising 

plan shall be evidenced by an itemized invoice. 

'Italicized words deleted. See paragraph 2 (2) of order approving this Code. 
82 

SECTION 4. Nothing in this Division B contained shall affect or modify the 

provisions above set forth in DiYision A in r elation to drop shipment sales. 

SEOTioN 5. No jobber or sub-jobber shall sell cigars directly to the consumer 

except through an established reta il department and in compliance w!th the 

provisions of this merchandising plan relating to sales by retailers. 

0. SALES BY RETAILERS 

SECTION 1. In the case of all cigars purchased by retailers from cigar manufacturers, jobbers or sub-jobbers in connection with which a retail price shall 

have been recorded by the manufacturer as hereinabove provided, the retailer 

shall sell such cigars at retail at not less than the retail price so recorded, 

provided, however, that (1) in the case of the sale at retail of multiples of not 

less than ten units (except in the case of cigars selling for less than five 

cents (5¢) each) a discount may be allowed of not more than five percent (5o/o) 

from the retail price, and (2) in the case of sales at retail of boxes of twentyfive (25) cigars or more a discount of not more than eight percent (8o/o) from 

the retail price may be allowed unless the cigar manufacturer shall record 

with the Council and mark a box price thereon involving a discount of less 

than eight percent ( 8o/o) in which case the marked box price shall be observed 

as a minimum, and (3) the retailer may give not more than one pad of matches 

for each unit sold, or five pads per box of twenty-five cigars or ten pads per 

box of fifty (50) cigars sold. In the case of any retailer granting a cash discount upon all purchases made, any sales of cigars shall be excluded in computing the cash discount to be allowed, or the amount of cash discount shall be 

included in the price of the merchandise sold in addition to the minimum 

prices herein provided. 

SECTION 2. Upon any sale to a consumer, situated at the time of such sale 

in a state imposing a tax on tobacco products or the sale thereof (other than 

a tax payable by the manufacturer) the amount of such tax, if not paid by 

the consumer, shall be added to the minimum price herein provided, whether 

the seller shall be located within or without such state. 

SECTION 3. Notwithstanding the provisions of this merchandising plan, any 

tobacco retailer may sell at less than the prices therein prescribed merchandise 

sold as bona fide clearance or bona fide discontinued lines of merchandise or 

imperfect or actually damaged merchandise or merchandise sold upon the complete final liquidation of any business or merchandise donated for charitable 

purposes or to unemployment relief agencies, provided that all such merchandise 

shall be advertised, marked and sold as such and that a strip label shall be 

placed across the inside lid label of box goods to be disposedi of, stating the 

reason the said merchandise is being sold below the prescribed prices therefor 

and provided further that such merchandise shall be disposed of pursuant to 

any regulation as to the manner of such disposal as shall be issued by the 

Code Authority subject to the approval of the Administrator. 

SECTION 4. Except as in this merchandising plan otherwise expressly provided wherever under any of the provisions of this merchandising plan any. 

cigar is required to be sold at retail at a minimum price, such minimum retail 

price shall not be reduced directly or indirectly or by any device or subterfuge 

such as the gi ving of any trading or merchandise coupons, prizes or premiums 

or any other thing of value or discount, rebate, refund, commission, credits or 

allowances whether in the form of money or otherwise; nor shall any retailer 

ffer or extend special service or privilege to any customer which is not 

available to all customers. 

D. MINIMUM DISCOUNTS 

Upon the recommendation of the Code Authority established by the Code 

for the Cigar Manufacturing Industry or the Code for the '\Vholesale Tobacco 

Trade or the Code for the Retail Tobacco Trade or upon application of any 

member of the Cigar Manufacturing Industry or of the Wholesale Tobacco 

Trade or of the Retail Tobacco Tmde and the approval of such r ecommenda- tion or application by the Administrator, the Code Authorities established by 

the said several codes, shall, upon such notice and opportunity to be heard, 

if any, as the Administrator may require, determine by joint action minimum 

discounts to be prescribed in connection with sales of cigars by any member 

of said Industry or Trades and such determination shall be effec tive only upon 

the concurrence of all three Code Authorities and, subject to the further 
83 

approval of the Admini tt·ator, such minimum discounts shall be binding uport 

all such members. 

E. PROVI IO ' APPLICABLE TO ALL SALES OF OIGARS 

SECTION 1. Wherever any of the provisions of this merchandi ing plan provide for two or more di counts from the retail price, such eli count shall be 

computed separately and succes ively o that each succeeding discount sha.U 

be computed upon the balance of the retail price remaining after the deduction 

of the next preceding discount provided for. 

SECTIO 2. Any change in the retail price shall be applicabl a. at the effecti n~ 

date of such change to all merchandi e thereafter old by whole ._ le di tril)-

utors, or retailers, but whole ale distributors may, notwith tanding any reduction of the retail price, dispo e of exi ting stocks on the ba is of the reta il 

price preYailing \Vhen such tocks were acquired. 

SECTION 3. Nothing in this merchandi ing plan shall be construed to prevent 

the free and general distribution of articles commonly used for advertisin~ 

purposes and premiums, except insofar as such di tribution or use of 

premiums would constitute, in effect, an additional di count or a reduction in 

price below the minima established hereby. 

SECTION 4. All prices and discounts filed with the Council by manufacturers, 

jobbers or sub-jobbers, as hereinbefore provided shall immediately be reported 

by the Council to the respective Code Authorities for the Cigar Manufacturing 

Industry, the Wholesale Tobacco Trade and the Retail Tobacco Trade. Eanh 

such Code Authority shall cause such prices and discounts to be made available 

to all members of its respective industry or trade and hall comply with any 

regutations which may be i ued by such Code Authority with the approval 

of the Administrator as to the publication and dissemination thereof. 

0 






UNIVERSITY OF FLORIDA 

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