Approved Code No. 252 Registry No. 406-10

NATIONAL RECOVERY ADMINISTRATION

CODE OF FAIR COMPETITION

FOR THE

CYLINDRICAL LIQUID TIGHT

PAPER CONTAINER INDUSTRY

AS APPROVED ON FEBRUARY 1, 1934

MEMBER

R

WE DO OUR PART

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1934

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(11)
Approved Code No. 252

CODE OF FAIR COMPETITION

FOR THE

CYLINDRICAL LIQUID TIGHT PAPER CONTAINER

INDUSTRY

As Approved on February 1, 1934

ORDER

APPROVING CODE OF FAIR COMPETITION FOR THE CYLINDRICAL LIQUID

TIGHT PAPER CONTAINER 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 Cylindrical Liquid Tight Paper Container

Industry, and hearings having been duly held thereon and the annexed report on said Code, containing findings with respect thereto,

having been made and directed to the President:

NOW, THEREFORE, on behalf of the President of the United

States, I, Hugh S. Johnson, Administrator for Industrial Recovery,

pursuant to authority vested in me by Executive Orders of the

President, including Executive Order No. 6543-A, dated December

30, 1933, and otherwise; do hereby incorporate by reference said

annexed report and do find that said Code complies in all respects

with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Code of

Fair Competition be and it is hereby approved; provided, however,

that the provisions of Article VI, Sections 2 to 9, inclusive, insofar

as they prescribe a waiting period between the filing with the Code

Authority (i. e., actual receipt by 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; provided

further, that within ninety days I may direct that there be a further

hearing on such of the provisions of said Code as I may designate, and that any order which I may make after such hearing shall have

the effect of a condition on the approval of said Code.

HUGH S. JOhNSON,

Adininistrator for Industrial Recovery.

Approval reconnended:

LEO L. BERRY,

Division Administrator.

WAShINGTON, D.C., February 1, 1934.

3748 *--313-178-34 (83)
REPORT TO THE PRESIDENT

The PIISiENT,

T,/ JeV/te Howvc.

SiR: This is a report of the hearing on the Code of Fair Competition for the Cylindrical Liquid Tight Paper Container Industry, conducted ill Was-igton on Noveniber 27. 1933, in accordance with

the provisions of Title I of the National Industrial Recovery Act.

HOURS AND WAGES

This Code provides a 40-hour week for factory workers with a

weekly tolerance of eight hours to be paid for as overtime. The usual

exceptions are made in regard to nonproductive employees. Office

emJployees are limited to an average of 40 hours per week over an

eigit-Week period.

The minium wage rate in the North for hourly paid employees is

40 per hour for males and 35 per hour for females. In the South

the mininmm wage rate for hourly paid employees is 35 per hour

for males and 30g per hour for females. Office employees will' receive

a minimum wage of $16.00 per week in the North and $14.00 per

week in the South.

OPEN PRICE PLAN

An open price plan of selling is provided, and selling below cost,

except to meet competition, is prohibited.

OTHER PROVISIONS

Provision is made for furnishing the Administrator with such

statistical data as he may require.

ECONOMIC EFFECT OF THE CODE

The Industry employed in 1929 about 700 persons and in 1933

approximately 800 persons. The number of plants in the Industry

increased from 7 in 1928 to 11 in 1933. The October 1933 figure

represent the dull season. The Industry has sharp seasonal peaks

in the Spring and Summer months which are generally followed by

abrupt declines. The products are in direct competition with other

forms of packaging at all times. Therefore, in order to maintain

employment and share available work during dull seasons the Industry must have sufficient flexibility of hours to permit its obtaining

its share of business during peak seasons.

In March 1933 about 75"(' of the male laborers and about 90%

of the female laborers received less than the proposed minimum wage

rates. The total increase in payrolls as a result of the Code will be

about 151.

(84)
85

FINDINGS

The Deputy Administrator in his final report to me on said Code

having found as herein set forth and on the basis of all the proceedings in this matter;

I find that:

(a) Said Code is well designed to promote the policies and purposes of Title I of the Nationial Industrial Recovery Act, including

removal of obstructions to the free flow of interstate and foreign

commerce which tend to diminish the amnount 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 plroioting 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 tinemployim ent, by improving standards of

labor, and by otherwise rehabilitating industry.

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

(c) The Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and

Subsection (b) of Section 10 thereof; and that the applicant association is an industrial association truly representative of the aforesaid Industry; and that said Association imposes no inequitable restrictions on admission to membership therein.

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

or monopolistic practices.

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

small enterprises and will not operate to discriminate against them.

(f) Those engaged in other steps of the economic process have not

been deprived of the right to be heard prior to approval of said Code.

For these reasons this Code has been approved.

Respectfully,

HuGH S. JOHNSON,

Administrator.

FEBRUARY 1, 1934.
CODE OF FAIR COMPETITION FOR THE CYLINDRICAL

LIQUID TIGHT PAPER CONTAINER INDUSTRY

To effectuate the policies of Title I of the National Industrial

Recovery Act, the following is hereby established as a Code of Fair

Competition for the above-named Industry and shall be binding

on every member thereof.

ARTICLE I-DEFINITIONS

The following words are used in this Code with the meaning herein set forth:

Industry "-The manufacture of Cylindrical Liquid Tight Containers made completely of paper or with paper bodies and metal

tops or bottoms, or both, up to and including liquid capacity of one

(1) gallon.

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

such Industry.

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

"Administrator "-The Administrator for Industrial Recovery

under Title I in the Act.

ARTICLE II-ORGANIZATION AND ADMINIsMRATION

1. The members of the Executive Committee of the National Association of Liquid Tight Paper Container Manufacturers, together

with such person or persons as may be designated by the Administrator, are hereby constituted the Code Authority of the Industry.

The members of the Code Authority designated by the Administrator shall act in an advisory capaciy, shall have no vote, and shall

serve without expense to the Industry.

2. The said Association shall impose no inequitable restrictions

on membership and shall file with the Administrator certified copies

of any amendments of its By-Laws relating to eligibility or admission to membership in said Association, or relating to the method

of selection of the members of such Executive Committee which

said Association may hereafter adopt.

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

for selecting the Industry members of the Code Authority, and

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

(86)
87

4. The Code Authority is charged generally with the duty of administering this Code. 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 such 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 days' notice to him of

intention to proceed with such action in its original or modified form.

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

rata, in accordance with a formula to be adopted by the Code Authority, by all members of the Industry who accept the benefit of

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

6. The Code Authority shall have power to investigate alleged

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

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

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

same with recommendations to the Administrator.

7. The Code Authority is hereby constituted the agency to endeavor to effect, by arbitral proceedings or otherwise, adjustments

of contracts entered into by members of the Industry, where the

costs of executing such contracts are increased through the application of the provisions of the Act or of this Code.

ARTICLE III-HoURS OF LABOR

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

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

schedules:

SCHEDULE OF WORKING HOURS

(a) Watchmen: Fifty-six (56) hours in any one week, but not

more than six (6) days in any seven (7) day period; or fifty-six (56)

hours in any one week, but not to exceed eight (8) hours in any one

day.

(b) Chauffeurs, truck drivers, and their helpers: One hundred

eighty (180) hours in any period of four (4) consecutive weeks, provided, however, that time worked in excess of nine (9) hours in any

one day or forty-five (45) hours in any one week shall be paid for

as not less than time and one third.

(c) Engineers, firemen, electricians, filter plant employees, electric and hydroelectric operators: One hundred sixty-eight (168)

hours in any period of four (4) consecutive weeks, provided, however, that time worked in excess of nine (9) hours in any one day

or forty-five (45) hours in any one week shall be paid for as not

less than time and one third.

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

in any plant, mill, or factory, or on work connected with the operation of such plant, mill, or factory: Eight (8) hours in any one day

and forty (40) hours in any one week, provided, however, that

these maximum limits may be exceeded for any reason at any time

provided that all time worked in excess of the niaximunis pre-
88

scribed shall be paid for as not less than time and one third, and

provided further, that no employee shall be required or permitted to

work in excess of ten (10) hourn in any one day or forty-eight (48)

hours in any one week.

(e) Emplyees regularly engaged in a inaiiagerial or executive

Capacity and their personal secretaries, foremen. and supervisors

receiving thirtv-five dollars ($85.00) or more per week, outside salesmen and outside serviceIen : No limitation.

(f) All other eniplovees: Forty-eigiht (48) hours in any one week

and not to exceed three hiindred twenty (320) hours in any period

of eight (8) consecutive weeks.

2. No limitation contained in said schedule shall apply to employces of any class when engaged in emergency repairs or emergency mail tenance work occasioned by break-downs or involving protection

of ii fe or proej rty, provided, however, that all time worked in excess

of the limitations prescribed in said schedule shall be paid for as not

less tiami time and one third.

i3. No employer shall knowingly permit any employee to work for

any time which, when totaled with that already performed with

another employer or employers in this industry, exceeds the maxim1111 permitted herein.

ARTICLE I-V-WAGES

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

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

be as follows:

(a) In the Northern zone, which shall consist of all the territory

of the United States except the States named in subdivision (b)

hereof: Male labor, 40 cents per hour; Female labor, 35 cents per

hour.

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

Virginia, Tennessee, North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana, Arkansas, and Texas:

Male labor, 35 (cents per hour; Female labor, 30 cents per hour.

2. The mininun rates of wages for all other employees shall be

As follows:

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

per week.

(b) In the Southern zone, as defined in said Section, $14.00 per

week.

(c) Part-time employees covered by the provisions of this section

shall be paid at the rate of not less tdan 400 per hour in the North

and 350 per hour in the South.

3. This article establishes a minimum rate of pay which shall

apply irresl)ective of whether an employee is actually compensated

on time, rate, piecework, or other basis.

4. Female employees performing substantially the same work as

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

The Code Authority shall, with in 90 days after the effective date of

this Code, file with the Administrator 'a description of all occupations in the Industry in which both men and women are employed.
89

5. The wage rates of all employees receiving more than the minimum rates herein prescribed shall be reviewed and suich adjustmn ients,

if any, made therein as are equitable in the liglt of all the circullmstances, and within sixty (60) days after the effective date hereof

the Code Authority shall report to the Admlinisti ator t1e action

taken by all members of the Indiitry under this section.

6. Office boys and girls under 18 years of age, to the extent of no

more than 5'/1 of the total unuber of employees described in Section

2 hereof. may be employed at a wage of not less than 80% of the

minimum prescribed by said Section, provided that at least one such

office boy or girl may be employed by each member.

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

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

wagtze of not less than 80% of the minimum prescribed by this Code,

provided the State Authority or other agency designated by the

United States Department of Labor shall have issued a certificate

authorizing his employment on such basis. Each member shall file

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

The provision of this Section requiring a certificate of authority

shall not become effective until sixty days after the effective date

of this Code.

ARTICLE V-GENERAL LABOR PROvISIONs

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

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

be employed at operations or occupations which are hazardous in

nature or dangerous to health. The Code Authority shall submit to

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

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

an employer shall be deenied to have complied with this provision

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

by the authority in such State empowered to issue employment or age

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

age.

2. Employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall

be free from the interference, restraint, or coercion of employers of

labor or their agents in the designation of such representatives or

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

of collective bargaining or other mutual aid or protection. No employee and no one seeking employment shall be required, as a condition of employment, to join any company union or to refrain from

joining, organizing, or assisting a labor organization of his own

choosing. Employers shall comply with the maximum hours of

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

approved or prescribed by the President.

3. No provision in this Code shall supersede any State or Federal

law which imposes on employers more stringent requirements as to

age of employees, wages, hours of work, or as to safety, health,

sanitary, or general working conditions, or insurance or fire protection, than are imposed by this Code.
90

4. No employer shall reclassify employees or duties of occupations performedl or engage in any other subterfuge for the purpose

of defeating the purposes or provisions of the Act or of this Code.

5. All employers shall post copies of Article III, IV, and V of

this Code in conspicuous places accessible to employees.

6. Every employer shall make reasonable provisions for the safety

and health of his employees at the place and during the hours of

their employment. Standards for safety and health shall be submitted hy the Code Authority to the Administrator within six (6)

months after the effective date of this Code.

7. No provision in this Code shall supersede provisions as to hours,

wages, and conditions of employment which are established for

specific projects by competent governmental authority acting in accordance with law, or to terms of employment which are established

by labor agreements now in force, where either the wages are higher

or the hours of labor are shorter, or both, than are those set forth

in this Code.

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

industry to determine the feasibility of the adoption of a shorter

working week, and shall, within three (3) months after the effective

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

The Code Authority shall also submit to the Administrator within

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

stabilization and regularization of employment.

9. The manufacture or partial manufacture of any product of

the Industry in homes shall be prohibited.

ARTICLE VI-ACCOUNTING-SELLING

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

standard method of accounting and costing for the industry and

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

approved by the Administrator every member shall use an accounting

and costing system which conforms to the principles of and is at

least as detailed and complete as such standard method.

2. The Code Authority may from time to time. determine that

an open-price plan of selling such product or products of the Industry as it shall specify shall be put into effect on such date as it

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

known inembers of the Industry who manufacture such products

not less than 30 days prior to the date so fixed.

3. At least ten days prior to such date every such member shall

file with the (ode Authority a schedule of prices and terms of sale

for all such products or, in the alternative, shall be deemed to have

filed a schedule conforming in respect to price and teris of sale

with the schedule at any time on file which states the lowest price

aid the most favorable terns.

4. All such schedules shall be in such form as the Code Authority

shall prescribe and shall conta in all information necessary to permit

any interested person to deteriniie the exact net price per unit after

all di-counts or other deductions have been mnade, whether pertaining

to a single order, a commitment for future delivery, or a contract.

All such original schedules shall become effective on the date fixed

by the Code Authority as provided in Section 2 hereof.
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5. A revised schedule or schedules, or a new schedule or schedules,

or a notice of withdrawal of a schedule previously filed may be filed

by a member with the Code Authority at any time, provided, however,

that any member who withdraws a schedule without substituting a

new schedule therefor shall be deemed to have filed a schedule conforming in respect to price and terms of sale with the schedule at

any time thereafter on file which states the lowest price and the most

favorable terms. Any schedule or notice filed hereunder shall become effective five days after the date of filing: provided. however,

that an increased price may become effective at such earlier date as

the member filing the same shall fix.

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

industry who manufacture any particular product with copies of

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

pertain to such product. Immediately upon receipt of information

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

may file notice of withdrawal of his own price for the same product

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

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

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

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

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

as his own the schedule of such other member. In the latter event

he shall be deemed to have filed a revised schedule conforming to

the revised schedule of such other member.

7. No such schedule of prices and terms of sale filed by any member, or in effect at any time, shall be such as to permit the sale of any

product at less than the cost thereof to such member determined in

the manner provided in Section 11 hereof, provided however, that

any member may by notice to the Code Authority, adopt as his own

a lower price filed by another designated member. Such adoption

shall become automatically void after the withdrawal or revision

upward of the price adopted.

8. No member who shall have filed a price, or adopted as his own,

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

conditions more favorable than stated in such price schedule. No

member, who shall have failed to file a price for any product for

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

lower price or on terms more favorable than the lowest price and

most favorable terms stated in any price schedule for such product

then on file.

9. The Code Authority shall furnish at cost to any nonmember

requesting them, copies of any price schedules which have been filed

with it. Such price schedules shall be made available to nonmembers at the same time that they are sent to members.

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

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

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

the price of a competitor whose price does not violate such Section.

11. Cost, for the purposes of this Article, shall be determinedJ

pursuant to the method of accounting and costing prescribed as
92

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

approved, and theretofore pursuant to the method employed by

such member subject to such preliminary rules as the Code Authority

shall from time to time prescribe with the approval of the Adininistrator.

12. For the ptirpose of determining whether Sections T and 10

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

request of the Code Authority, furnish a designated agency of the

Code Authority in respect to closed transactions only with complete

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

any product of the Industry, including information as to specifications, quantities, price, conditions of storage, transportation or delivery, ternis of billing, cash or trade discounts allowed, and other pertinent facts relating to such quotation, contract, or sale.

13. Nothing herein contained shall be construed to prevent the

disposition of distress merchandise required to be sold to liquidate

a defunct or insolvent business or of discontinued lines, damaged

goods, or seconds, in such manner, as such price and such ternis and

conditions as the Code Authority and the Administrator may

approve.

14. Nothing herein contained shall be construed to prevent the

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

this Code.*

ARTICLE VII-REPORTS AND STATISTICS

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

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

as it may prescribe, such statistics, data, and information relating

to plant capacity, volume of production, volume of sales in units

and dollars, orders received, unfilled order, stocks on hand, inventory, both raw and finished, number of employees, wage rates, employee earnings, hmrurs of work, and other matters, as the Code

Authority or the Administrator may from time to time require.

Any or all information so furnished by any member shall be subject

to checking for the purpose of verification by an examination of the

books, accounts, and records of such member by any disinterested

accountant or accountants or other qualified person or persons designated by the Code Authority.

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

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

the provisions of this Code shall be confidential and the statistics,

data, and information of one member shall not be revealed to another

member. No such data or information shall be published except

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

avoid the disclosure of confidential information. Tlie Code Authoritv shall arrange in such manner as it may determine for the current

publication of industry statistics to members.

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

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

Code Authority there shall be furnished to Government Agencies

* See para-raaph 2 of order approving this Code.
93

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

ARTICLE VIII-MONOPLIES

1. 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 IX-RECOMMENDATIONS

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

Administrator recommendations based on conditions in the Industry which will tend to effectuate the operation of this Code and the

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

(a) For the establishment of additional rules of fair trade practice for the Industry and for the modification of its trade customs

and the enforcement thereof.

(b) For the establishment of plans to equalize production with

demand so that the interests of the Industry and the public may

be properly served.

(c) For dealing with any other inequality that may arise to

endanger the stability of the Industry and of production and

employment.

(d) For an increase or decrease in the number of Industry members of the Code Authority and/or for a change in the method of

choosing such members.

2. For the purpose of assisting the Code Authorities of the Paper

Manufacturing and/or Converting Industries in the adjustment of

all labor disputes and labor complaints arising within such industries, the Code Authority shall consider the advisability of creating a

Joint Industrial Relations Board for such Industries and shall report its recommendations to the Administrator.

3. Recommendations made pursuant to Sections 1 and 2 hereof

when approved by the Administrator shall have the same force and

effect as other provisions of this Code.

ARTICLE X-TRADE PRACTICES

1. The following are hereby constituted Trade Practices for the

Industry and failure to comply with the provisions thereof shall be

a violation of this Code.

(a) Members of the Industry shall not practice deception in regard to that which is sold or its selling price by false or misleading

description, statement, record, or undisclosed consideration.

(b) Members shall refrain from dumping, deferred delivery, extension of stated credit, and secret rebates.

(c) Members shall not wilfully injure by falsely defaming a competitor's goods, credit, or ability to perform his contracts.

(d) Members shall not wilfully induce or attempt to induce the

breach of a competitor's contract.

(e) No member shall give, permit to be given, or directly offer to

give, anything of value for the purpose of influencing or rewarding
94

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. The foregoing provisions

shall not be construed to prohibit free and general distribution of

articles commonly used for advertising except so far as such articles

are actually used for commercial bribery as herein defined.

(f) No member of the Industry shall ship goods on consunment

except under circumstances to be defined by the Code Authority,

where. peculiar circumstances of the industry require the practice.

2. Deiscrimiation.-By the use of wholesalers as sales agents, whereby such selected wholesalers are sold at special prices below

those given other wholesalers for a like quantity in one shipment; or

the giving of such wholesalers' discounts commissions, terms,

conditions of sale different from those extended other wholesalers in

the same competitive territory for a like quantity; is discrimination,

unfair trade practice, and a violation of the provisions of this Code.

The term " wholesaler " is defined as being a corporation, partnership, or person engaged in the buying of merchandise for resale to the

various classifications of the trade such as jobbers, manufacturers,

dairies, retailers, consumers, etc.

3. In the event of a demand upon any member for a container not

previously or regularly manufactured and not included in members'

previously filed schedules and definitions, the member may set up

temporary price bearing a relationship in a normal ratio to the capacity, dimensions, weight of stock, etc., of nearest comparable size

or sizes included in the filed schedules and such price shall simultaneously be filed by the member with the Code Authority.

(a) Members are responsible for the Acts of their sales representatives or sales agents in respect to all provisions of this Code

pertaining to sales and specifically as provided in Sections 2, 3, and 4

Article VI. Violations of the provisions of this Code as pertaining to sales by Members' sales representatives or Sales Agents constitute a violation on the part of the Member.

(b) The giving by Members or their representatives or sales

agents of secret commissions, secret or open rebates, refunds or

credits in the form of money, presents, free goods, advertising allowances or otherwise for the purpose of inducing sales or contracts, is

a direct violation of the provisions of this Code.

(e) Members' sales representatives or sales agents are persons,

partnerships or corporations employed by a Member or Members on

whole or part-time basis; and compensated on the basis of salary,

comm ission, both salary and commission or otherwise.

5. Members desiringg to employ as sales representatives persons,

partners ips, corporations, brokers, or commiission merchants on a

part-time basis must first apply to the Code Authority for approval

of such employment. The principle of this section being to prevent

Members from employing as sales representatives concerns who buy

merchandise for their own account, for their associates, employers,

partners, or subscribers, thereby securing a commission or other

compensation from a Member or Members covering purchiases for

their own account or for the benefit of their connections.
95

ARTICLE XI-GENERAL PRovisIONS

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

business which is included in this industry.

2. Any work or process incidental to, and carried on by a member at his plant as a part of the manufacture of any product of

the industry, shall be regarded as a part of this industry.

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

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

experience may indicate.

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

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

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

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

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

or any conditions imposed by him upon his approval thereof.

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

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

United States.

Approved Code No. 252.

RIegistry No. 406-10.

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riIVERSIIY OF FLORIUA

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