Approved Code No. 466 Registry No. 1615-30 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITI0N 

FOR THE 

I 

RETAIL TOBACCO TRADE 

AS APPROVED ON JUNE 19, 1934 

BY 

PRESIDENT ROOSEVELT 

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UNITED STATES 

GOVERNMENT PRINTING OFFICB 

WASHINGTON: 1934 

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Approved Code No. 466 

CODE OF FAIR COMPETITION 

FOR THE 

RETAIL TOBACCO TRADE 

As Approved on June 19, 1934 

BY 

PRESIDENT ROOSEVELT 

EXECUTIVE ORDER 

CoDE oF FAIR CoMPETITION FOR THE RET AIL ToBAcco TRADE 

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

compliance with the provisions of Title I of the National Industrial 

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

of Fair Competition for the Retail Tobacco Trade, and hearings 

having been held thereon and the Administrator having rendered 

his report containing an analysis of the said Code of Fair Competition together with his recommendations and findings with respect 

thereto, and the Administrator having found that the said Code of 

Fair Competition complies in all respects with the pertinent provisions of Title I of said Act, and that the requirements of clauses 

(1) and (2) of subsection (a) of section 3 of the said Act have been 

met: 

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

United States, pursuant to the authority vested in me by Title I 

of the National Industrial Recovery Act, approved June 16, 1933, 

and otherwise, do adopt and approve the re.port, recommendations, 

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

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

effective on the date of this Order; subJ ect, however, to the following 

conditions : 

(1) That the provisions of Part I of Article VI and of Schedule 

I-the Cigar Merchandising Plan-be stayed and shall not become 

effective until Monday, June 25, 1934. 

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

in Schedule I, Part A, Section 1, and in Schedule I, Part B, Sections 

1 and 2, respectively, be stayed and shall not become effective, notwithstanding said cigar merchandising plan become effective1 until 

the further order of the Administrator. 

68842°-657-125-.-34-1 (35) 
36 

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

said cigar merchandising plan be stayed until arrapgements satisfactory to the Admini trator, are h1ade for confidential treatment 

and for simultaneous distribution thereof to all members of the 

trade and customers willing to pay the cost thereof. 

( 4) That the preamble and Sections 1, 2, 3, 4, and 6, Part II of 

Article VI be stayed and that the trade accept in place thereof, the 

following : -

"As to cigar , with respect to which the provisions of Part I or 

Schedule I shall not at the time be operative or shall be stayed, and 

as to cigarettes, smoking tobacco, chewing tobacco and snuff, the 

standards of fair competition for the trade with reference to pricing 

practices are declared to be as follows: 

"SECTION 1. (a) Wilfully destructive price cutting is an unfair 

method of competition and is forbidden. Any member of the trade 

or of any other trade or industry or the customers of either may, 

at any time, complain to the Code Authority that any actual price 

constitutes unfair competition as destructive price cutting, imperiling small enterprises or tending toward monopoly or the impairment of code wages or working conditions. The Code Authority 

shall, within five days, afford an opportunity to the member making 

such price to answer such complaint and shall, within fourteen days, 

make a ruling or adjustment thereon. If such ruling is not concurred in by either party to the complaint, all papers shall be referred to the Research and Planning Division of NRA, which shall 

render a report and recommendation thereon to the Administrator. 

" (b) vVhen no declared emergency exists as to such products or 

any specified part thereof, there is to be no fixed minimum basis for 

pnces. 

" It is intended that sound cost estimating methods should be used 

and that consideration should be given to costs (including costs of 

retail distribution) in the determination of pricing policies. 

" (c) When an emergency by reason of unfair competitive practices 

or other conditions, exists in the trade as to such products or any 

specified part thereof, sale below the stated minimwn price of such 

products or such specified part thereof, in violation of Section 2 

hereof, is forbidden. 

H SECTION 2. Emergency Provi,sions 

" (a) If the Administrator, after investigation, shall at any time 

find both (1) that an en1ergency has arisen within the trade, adversely affecting small enterprises or wages or labor conditions, or 

tending toward monopoly or other acute conditions which tend 

to defeat the purposes of the Act; and (2) that the finding of :1 

basis for determining minimum prices for such products or any 

specified part thereof is necessary for a limited period, to correct 

the conditions constituting such emergency and to effectuate the 

purposes of the Act, the Code Authority may cause an impartial 

agency to investigate costs (including the costs of retail distribution) and to recommend to the Administrator a basis for determining 

minimum prices of the said products or the said specified part thereof 

affected by the emergency, and thereupon the Administrator may 

proceed to fix a basis for determining such minimum prices. 
37 

"(b) When the Administrator shall have fixed a basis for determining minimum prices for the said :products or said specified part 

thereof for a-stated period, which pnces shall be reasonably calculated to correct the conditions of such emergency and to effectuate 

the purposes of the Act, he shall publish the said basis. Thereafter, 

during such stated period, no member of the trade shall sell such 

products at a net realized price below the minimum price determined 

upon the basis so fixed, and any such sale shall be deemed destructive 

price cutting. From time to time, the Code Authority may recommend review or reconsideration or the Administrator may cause 

any determination hereunder to be reviewed or reconsidered, and 

a.pl?ropriate action taken." 

( 5) 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' 

A d1ninistrat or. 

THE "\V HITE HousE, 

Jwne. 19, 1934. 
LETTER OF TRANSMITTAL 

The PRESIDENT, 

The White H O'U8e. 

Srn: A Public Hearing on a Code of Fair Competition for the 

Wholesale. and Retail Tobacco Distributing I ndustry, submitted by 

the National Association of Tobacco Distributors, Inc., and the Retail Tobacco Dealers of America, Inc. was held in ' l{ ashington, D.C., on the 15th and 16th of December 1933, in accordance with the provisions of the National Industrial Recovery Act, pursuant to Notice 

of Hearing signed by the Secretary of Agriculture under Executive 

Order of June 26, 1933. By Executive Order of J anuary 8, 1934, 

jurisdiction over that Code was tran :ferred to the Administrator :for 

I ndustrial Recovery. 

The original Code has now been divided into separate codes : this 

Code and the Code :for the 'Vholesale Tobacco Trade. The sepa- ration -n-as made becau e it was thought that the divergent problems 

of these trades could be more conveniently handled in this way. 

In all other re pects the post-hearing revisions have been minor, 

and the provisions of this Code, as submitted :for your approval, are 

substantiated by the official record of the Public Hearing: information and :facts in filed briefs, or as a result of Post-H earing confer- ences held with the Code Committee. 

ECOXOl\HC EFFECT OF THE CODE 

The Association claims to represent more than 200 000 retail establishments comprising cigar stores drug stores, confectionery stores, 

news dealers, and others who deal in and are responsible :for annual 

sales of tobacco products in exce s of $1,300,000,000, with an aggregate invested capital of approximately $300,000,000. I t is the :further claim of the A ociation that the sale of tobacco products by 

members of the As ociation is approximately 80 percent of the total 

sales of all tobacco products. 

The retail sale of tobacco products takes place through many 

diverse outlets. It is therefore difficult to obtain accurate figures to 

show the :full extent of this business. The Census of Distribution 

:for 192"9 which regard only those stores as tobacco outlets whose. 

business is over fifty per cent in tobacco lines, shows that there were 

approximately 33,000 uch e tablishments employing 34,238 em- ployees. The variance between the e figures and tho e submitted 

by the A sociation, is presumably due to this difference in method 

of computation. Due to the :fact that th€y are the only official 

figures available they have been used by the Division of Research 

and Planning in their report. 

The Retail Tobacco Trade covers the retail distribution of cigars, 

cigarettes, smoking tobacco, chewing tobacco, snuff, and other tobacco 

products. 

(38) 
39 

The Association and the Research and Planning Division are in 

accord with the statement that 90 per cent of all retail tobacco 

establishments can be classified as ind-ependent one-store tobacconists 

who account for two-thirds of all sales of tobacco products. 

One of the outstanding features of the fair trade practice provisions is the cigar merchandising plan, which is also found in the 

Wholesale Tobacco Code and the Code for the Cigar Manufacturing 

Industry. 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. 

The retail dealers originated this plan, and it was proposed by them 

to the wholesalers and cigar manufacturers. At the Public 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, the Industrial Advjsory Board, the 

Labor Advisory Board, and the Legal Division. 

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

taxes 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 imperative need for retention of 

the five-cent cigar, should serve to prevent increase 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 to make the best possible cigar in 

each price class. 

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

business has placed a severe burden on persons whose welfare depends 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 business men, dependent for their livelihood on this trade. 

For further protection, Part II of Article VI in the proposed 

Code provides that no retailer shall sell any tobacco products, which 

are not covered by the merchandising plan in Part I, below the lowest reasonable cost of the retail distribution of such tobacco products. 

Such lowest reasonable cost will be determined by the Code Authority with the approval of the Administrator. Meanwhile the Administrator may, in order temporarily to restrict destructive price 

cutting, fix a basis for the computation of the minimum retail price 

of these tobacco products other than cigars. 

HOURS AND WAGES 

By defining an establishment, as any store, shop2 stand or other 

place of retail business at which more than one-half 1n dollar volume 

of sales made consist of tobacco products, or at which the principal 

line of business is the sale of tobacco products, the wage and hour 

provisions are limited to such places of business. 

vVork hours and store hours are elective and, with the exception 

of wages, the Labor Provisions conform substantially to the Labor 
40 

Provisions of the approved Codes of Fair Competition for the 

Retail Trade and the Retail Drug Trade, respectively. 

Minimum wage rates, established in the Code, are approximately 

15 percent higher than the rates of wages now prevailing in other 

retail codes. 

The working hours are not entirely satisfactory from a purely 

social viewpoint; but they represent reduction from the hours which 

prevailed in thP retail tobacco trade. Increased employment will 

depend upon the store hours elected by the majority of the trade. 

It is estimated that the minimum wage rates established in the 

Code will result in an increase of approximately 10 per cent, in 

the total payrolls of the 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 promote the policies and purposes of Title I of the National Industrial Recovery Act, including 

removal of obstructions to the free flow of interstate and foreign 

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

inducing and maintaining united action of labor and management 

under adequate governmental sanctions and supervision, by eliminatin€; 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 t€mporarily 

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, includinf without limitation Subsection (a) of Section 3, Subsection (a) o Section 7, and Subsection 

(b) of Section 10 thereof; and that the applicant association is an 

industrial association truly representative of the aforesaid trade; 

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. 

(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 recommended for approval. 

Respect:full y, 

JUNE 19, 1934. 

HUGH s. JOHNSON' 

Administrator. 
CODE OF FAIR COMPETITION FOR THE RETAIL 

TOBACCO TRADE 

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 Retail Tobacco Trade, and its provisions shall be standards of fair competition for such trade and shall be binding upon 

every member thereof. 

ARTICLE II-DEFINITIONS 

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 Administrator 

for Industrial Recovery. 

SECTION 3. The term "Act" means Title I of the National Industrial Recovery Act. 

SECTION 4. The term "tobacco products" includes, without limitation, all cigars, stogies, cheroots, little cigars, cigarettes, smoking 

tobacco, chewing tobacco and snuff. 

SEcTION 5. The term " retail tobacco trade " means and includes 

all selling of tobacco products directly to the consumer and not for 

the purposes of resale in any form. 

SECTION 6. The terms "tobacco retailer", "retailer", and "member of the trade " mean any person engaged wholly or partially 

either as an employer or for his own account in the selling of tobacco products directly to the consumer and not for purposes of 

resale in any form. 

SECTION 7. The term "cigar manufacturer" means and includes 

any person engaged in the manufacturing into cigars of cured leaf 

tobacco, stemmed tobacco, scrap, and/ or shredded filler. 

SECTION 8. The term " cigar " means and includes cigars, stogies, 

cheroots and little cigars. 

SECTION 9. The term " jobber" means any wholesale tobacco distributor who buys directly from the manufacturer. 

SECTION 10. The term "sub-jobber" means any wholesale tobacco 

distributor who purchases tobacco products from jobbers or jobbing 

establishments of manufacturers instead of directly from manufacturers. . 

(A person may be a jobber as to certain tobacco products and a 

sub-jobber as to others.) 

SECTION 11. The term" accredited cigar jobber" means any wholesale distributor of cigars who maintains a sales organization and 

68842°----657-12G----34----2 (41) 
42 

has an exclusive selling arrangement for a brand or brands of cigars 

for which he assumes the responsibility of promotion, distribution 

and care in a definite territory assigned to him. 

SECTION 12. The terin "cigar service jobber" means any wholesale distributor of cigars other than an accredited cigar jobber. 

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

or brands and a cigar service jobber as to others.) 

SEcTION 13. 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. 

SEcTio~ 14. The term "retail tobacco establishment" or "establishment" means any store, shop, stand or other place of retail business at which more than one-half in dollar volume of the sales made 

consists of tobacco products, or at which the principal line of business is the sale of tobacco products. 

SEcTION 15. The term "employee" includes any and all persons 

engaged in the retail tobacco trade, however compensated, except a 

member of the trade. 

SECTION 16. The term "employer" means any person by whom 

any such employee is compensated or employed. 

SECTION 17. The term "executive" means an employee responsible 

for the management of a business or a recognized subdivision thereof. 

SECTION 18. The term" outside salesman" means an employee who 

is engaged not less than eighty per cent (80%) of his working hours 

in selling outside the establishment, or any branch thereof, where 

he is employed. SECTION 19. The term "junior employee" means an employee 

under eighteen (18) years of age. 

SECTION 20. The term "apprentice employee" means an employee 

with less than two (2) months experience in the retail tobacco trade. 

SEcTION 21. The term "outside delivery employee" means an employee engaged primarily in delivering merchandise outside the establishment where he is employed. 

SECTION 22. The term " person " includes all individuals firms, 

partnerships, unincorporated associations, corporations, and other 

forms of enterprise. 

SECTION 23. The term " State " means any State or Territory and 

the District of Colum_bia. 

SECTION 24. The term " South " includes the following States: 

Virg.inia, V\T est Virginia, North Carolina, ~o~1t~ C.arolina, Georgia, 

Flonda, Kentucky, Tennessee, Alabama, MisSISSippi, Arkansas, Louisiana, Oklahoma, New Mexico and Texas. 

SECTION 25. Population for the purposes of this Code shall be 

determined by reference to the latest Census of the United States. 

SECTION 26. The term "Association" means Retail Tobacco Dealers of America, Inc. 

SECTION 27. The term " Council " means National Tobacco Council, Inc., a New York Corporation, or such other agency as shall be 

designated for the purposes of Schedule I, hereto attached, by the 

Code Authority hereby established and by the Code Authorities for 

the Cigar Manufacturing Industry and the Wholesale Tobacco 

Trade. 
43 

ARTICLE III 1-RETAIL SToRE HoURs AND HoURs OF LABOR 

SEcTION 1. Basic Store H owrs and Hours of L abor.-Each retail 

tobacco establishment shall within two weeks following the effective 

date of this Code elect to operate upon one of the following schedules 

of store hours and hours of labor, and shall post and maintain in a 

conspicuous place in the store a copy of such election showing its 

elected store hours and hours of labor, such posting to be in addition 

to the requirements of Article V, Sections 10 and 11 of this Code. 

GROUP (A). Any retail tobacco establishment may elect to remain 

open for business less than fifty -six (56) hours but not less than 

fifty-two ~2) hours per week, unless its store hours were less than 

fifty-two 52) hours prior to June 1, 1933, in which case such establishments all not reduce its store hours; except as herein otherwise 

provided no employee of such establishment shall work more than 

forty (40) hours per week, nor more than eight (8) hours per day 

nor more than six (6) days per week. 

GRoUP (B). Any retail tobacco establishment may elect to remain 

open for business fifty-six (56) hours or more per week but less than 

sixty-three (63) hours per week; except as herein otherwise provided, 

no employee of such establishment shall work more than forty-four 

(44) hours per week, nor more than nine (9) hours per day, nor 

more than six (6) days per week. 

GRoUP (C). Any retail tobacco establishment may elect to remain 

open for business sixty-three ( 63) hours or more per week; except 

as herein otherwise provided, no employee of such establishment 

shall work more than forty-eight ( 48) hours per week, nor more 

than ten (10) hours per day, nor more than six (6) days per week. 

GROUP (D). In place of any of the foregoing schedules, any retail 

tobacco establishment may elect to remain open for business seven 

(7) days a week for a total of eighty-four (84) hours or more per 

week, but on no day for less than eight (8) hours; except as herein 

otherwise provided, no employee of such establishment shall work 

more than fifty-six (56) hours per week, nor more than ten (10) 

hours per day, nor more than six (6) days in any consecutive seven 

(7) days. 

No employee shall work for two or more establishments a greater 

number of hours, in the aggregate, than he would be permitted to 

work for that one of such establishments which operates upon the 

lowest schedule of working hours. 

SECTION 2. No office employees shall work more than forty ( 40) 

hours per week, nor more than eight (8) hours per day, nor more 

than six (6) days per week except that two such employees in each 

establishment may be permitted to work not in excess of forty-eight 

( 48) hours per week. 

SECTION 3. No retail tobacco establishment may change from the 

Group in which it has elected to operate except upon December 31, 

of every year. 

Any retail tobacco establishment may at any time, however, increase its store hours, provided it maintains the basic work week of 

the Group in which it originally elected to operate. 

1 Effective June 25, 1934. See paragraph 2 (5) of order approving this Code. 
44 

Any retail tobacco establishment may, for a period not to exceed 

three months during the summer, temporarily reduce its store hours, 

but the weekly wages of employees shall not on that account be 

reduced. 

SECTION 4. Executi' es who earn not less than $30.00 per week, 

and outside salesmen, may be permitted to work in excess of the 

maximum hours provided in this Code. 

SECTION 5. Outside delivery employees may be permitted to work 

not in excess of forty -eight ( 48) hours per week and not in excess of 

ten (10) hours per day. 

SECTION 6. For a period not to exceed two (2) weeks in the calendar year, an employee whose basic work week is forty (40) hours 

may work not more than forty-eicrht ( 48) hours per week and nine 

(9) hours per day; an employee whose basic work week is forty-four 

( 44) hours may work not more than fifty -two (52) hours per week 

and nine and one-half (9:t;2) hours per day; an employee whose basic 

work week is forty-eight ( 48) hours may work not more than fiftysix (56) hours per week and ten (10) hours per day. All such work 

may be without payment of overtime. 

SECTION 7. On one day each week employees may work one extra 

hour, but such hour is to be included within the maximum hours 

permitted each week. 

SECTION 8. The hours worked by an employee during each day 

shall be con ecutive, provided that an interval not longer than one 

hour may be allowed for each regular meal period, and such interval 

not counted as part of the employees' working time. 

ARTicLE IV 1-'v AGEs oF EMPLOYEEs oF RETAIL ToBAcco 

EsTABLISHMENTs 

SECTION 1. The minimum weekly rates of wages which shall be 

paid to employees of retail tobacco establishments for a -work week 

as specified in Article III whether such wages are calculated upon 

an hourly, weekly, monthly, commission, or any other basis, shall 

except as hereinafter provided be as follows : 

(a) Within cities of over 500,000 population, no employee shall 

be paid less than at the rate of $15.50 .per week for a forty ( 40) 

hour work week, nor less than at the rate of $16.00 per week for 

a forty-four ( 44) hour work weekhnor less than at the rate of $16.50 

per week for a forty-eight ( 48) our work week, nor less than at 

the rate of $17.50 per week for a fifty-six (56) hour work week. 

(b) Within cities of from 100,000 to 500,000 population, no employee shall be paid less than at the rate of $14.50 per week for a 

forty ( 40) hour work week, nor less than at the rate of $15.00 per 

week for a forty-four (44) hour work week, nor less than at the 

rate of $15.50 per week for a forty-eight ( 48) hour work week, nor 

less than at the rate of $16.50 per week for a fifty-six (56) hour 

work week. 

(c) Within cities of from 25,000 to 100,000 population, no employee shall be paid less than at the rate of $13.00 per week for a 

forty ( 40) hour work week, nor less than at the rate of $13.50 per 

week for a forty-four (44) hour work week, nor less than at the 

lllJfrective June 25, 1984. See paragraph 2 (5) of order approving thla Code. 
45 

rate of $14.00 per week for a forty-eight ( 48) hour work week, no~ 

less than at the rate of $15.00 .per week for a fifty-six (56) hour 

work week. 1 

(d) vVithin cities, towns, villages of from 2,500 to 25,000 population, the wages of all classes of employees shall be increased from 

the rates existing on June 1, 1933, by not less than 20 per cent, 

provided that th1s shall not require an increase in wages to more 

than the rate of $11.50 per week, and provided further that no 

employee shall be paid less than at the rate of $11.00 per week. 

(e) Within towns, villages and other places with less than 2,500 

population, the wages of all classes of employees shall be increased 

from the rates existing on June 1, 1933, by not less than twenty per 

cent (20%), provided that this shall not require an increase in wages 

to more than the rate of $10.00 per week. 

SECTION 2. The minimum wages paid to outside salesmen and 

outside delivery employees shall be upon the basis of the basic employee work week upon which the establishment by which they are 

employed has elected to operate. 

SECTION 3. In the South all minimum wages specified in Section 1 

of this Article may be at the rate of $1.00 less per week. 

SECTION 4. No office employee shall be paid less than at the rate of 

$16.00 for a forty ( 40) hour work week. 

SECTION 5. Office boys and messengers may be paid $2.00 per week 

less than the minimum wage rate provided in Section 4 of this 

Article, provided that where there is more than one such office boy 

or messenger not more than ten t>er cent ( 10% ) of the total number 

of office employees shall be so pa1d. 

SECTION 6. Junior employees, other than office boys and messengers, may be paid for the first six ( 6) months of their employment 

at the rate of $2.00 less per week than the minimum wage otherwise 

applicable; apprentice employees, other than office boys and messengers, may be paid at the rate of $1.00 less than the minimum wage 

otherwise applicable. The number of employees classified as junior 

and apprentice employees combined shall not exceed a ratio of one 

such employee to every five ( 5) employees or fraction thereof up to 

twenty (20) or more than one such employee for every ten (10) 

employees above twenty (20). 

SECTION 7. The weekly wages of all employees receiving more than 

the minimum wages specified in this Article shall not be reduced 

below the rates existing on June 1, 1933, nothwithstanding any 

reduction in the number of working hours of such employees. 

SECTION 8. A person whose earning capacity is limited because of 

age or physical or mental handicap or other infirmity may be employed on light work at a wage below the minimum established by 

this Code if the employer obtains from the authority designated by 

the United States Department of Labor, a certificate authorizing 

such person's employment at such wages and for such hours as shall 

be stated in the certificate. Each employer shall file monthly with 

the Code Authority a list of all such persons employed by him, showing the wages paid to, and the maximum hours of work for such 

employee. 
46 

AJ?.TIGLE V-GENERAL LABOR PROVISIONS 

SEariON 1. Employees shall have the right to organize and bargain 

collectively through representatives <?:f their own. choosing, and shall 

be :free from the Interference, restrarnt, or coercwn o:f employers o:f 

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. 

SECTION 2. No employee and no one seeking employment shall be 

required as a condition o:f employment to join any company union 

or to refrain :from joining organizing or assisting a labor organization o:f his own choosing. 

SECTION 3. Employers shall comply with the maximum hours of 

labor, minimum rates o:f pay and other conditions o:f employment, 

approved, or prescribed by the President. 

SECTION 4. No person under the age o:f sixteen (16) years shall be 

employed in the retail tobacco trade, except that persons :fourteen 

( 14) and fifteen ( 15) years o:f age, being members o:f the :family of 

an individual retailer, may be employed by that retailer, either 

(a) :for a period o:f not to exceed three (3) hours per day on six 

( 6) days per week: or 

(b) :for one day per week, such day not to exceed eight (8) hours. 

In either case, all such hours o:f work shall be between 7 A.M. and 

7 P.M., and shall not conflict with the employee's hours o:f day school, 

provided, however, that no person under the age o:f eighteen (18) 

years shall be employed in delivering merchandise :from motor 

vehicles. 

SEcTION 5. No person under eighteen (18) years o:f age shall be 

employed, 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 o:f this Code, a list o:f such occupations for his ~pproval. 

SECTION 6. Employers shall make payment o:f all wages in lawful 

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

o:f employment shall prescribe payment o:f wages at least every two 

weeks and salaries at least as often as every month. 

SECTION 7. No provision in this Code shall supersede any State 

or Federal law which imposes on employers more stringent requirements as to age o:f employees, wages, hours o:f 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 o:f payment 

o:f employees' compensation or re-classify employees or duties of 

occupations performed by employees or engage in any other subterfuge so as to defeat the purposes o:f the Act or the provisions o:f this 

Code. 

SECTION 9. No employee paid at a rate in excess o:f the minimum 

shall be discharged and reemployed at a lower rate o:f pay :for the 

purpose o:f evading the provisions o:f this Code. 

SECTION 10. All employers shall post complete copies o:f the provisions o:f this Code dealing with hours, wages and conditions of 

employment in conspicuous places o:f easy and continuous access to 

employees. 
47 

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 

oth€r language 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 Administrator within six 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, 

except charges and deductions for employees' contributions, voluntarily made by employees or required by law, for pension, insurance 

or benefit funds. No employer shall withhold wages except upon 

service of legal process or other papers lawfully requiring such withholding. 

Deductions for other purposes not heretofore stated may be made 

· only pursuant to a contract in writing and kept on file by the employer for six months after the termination of the contract and 

which shall be kept open for inspection of Government representatives. 

SECTION 14. Female employees performing substantially the same 

work as male employees, shall receive the same rate of pay as male 

employees. 

ARTICLE VI-PRICES 

PART I-CIGAR MERCHANDISING PLAN 2 8 

The Merchandising Plan in Schedule I annexed hereto, adopted 

for the Cigar l\1anufacturing Industry and for the vVholesale Tobacco Trade in their respective Codes of Fair Competition and hereinafter for convenient reference in part repeated, is hereby accepted, 

a,dopted and approved; and all of the provisions of the said plan 

insofar as they purport to regulate the conduct of members of the 

retail tobacco trade are hereby made rules of fair practice and fair 

competition for all members of the retail tobacco trade. 

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 

vVholesale Tobacco Trade and the Cigar Manufacturing Industry. 

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 

of 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. 

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

paragraph 2 (3) of order approving this Code. 
48 

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 with the 

Council, the retailer shall sell such cigars at retail at not less than 

the retail price so recorded, provided, however, that ( 1) in the caSf\ 

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 per cent ( 5%) from 

the retail price, and (2) in the case of sales at retail of boxes of 

twenty-five cigars or more a discount of not more than eight per 

cent (8 %) from the retail price may be allowed unless the cigar 

manufacturer shall record with the Council and 1nark a box price 

thereon involving a discount of less than eight per cent (8%), 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 cigars sold. In the case of any retailer granting a 

cash discount upon all purchases m.ade, 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 minimmn 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 disposed 

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 Authorjty 

subject to the approval of the Administrator. 

SECTIO:N 4. Except as in this merchandising plan otherwise expressly provided wherever under any of the provisions of this merchandjsing 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 giving of 

any trading or merchandise coupons, prizes, or premiums or any 

other thing of value or discount, rebate, refund, conunission, credits 

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

any retailer offer or extend special service or privilege to any customer which is not available to all customers. 

SECTION 5. "Qpon the recommendation of the Code Authority established by this Code, or the Code for the Cigar Manufacturing Industry or the Code for the Wholesale Tobacco Trade or upon application 
49 

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 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 the 

trade, 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 discounts shall be 

binding upon all members of the trade. 

SECTIQN 6. Any change in the retail price shall be applicable as 

at the effective date of such change to all merchandise thereafter 

sold by retailers. 

SEcTION 7. Nothing in this merchandising plan shall be construed 

to prevent the free and general distribution of articles commonly 

used fo-r advertising purposes and premiums, except insofar as such 

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

hereby. 

SECTION 8. All prices and discounts filed with the Council by manufacturers, jobbers or subjobbers, as hereinbefore I?rovided shall immediately be reported by the Council to the respective Code Authoritie~ 

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 

wh1ch may be issued by such Code Authonty with the approval of 

the Administrator as to the publication and dissemination thereof. 

PART II-MINIMUM PRICES FOR PRODUCTS NOT GOVERNED BY THE PLAN 

As to cigars with respect to which the provisions of Part I or 

Schedule I shall not at the time be operative orr shall be stayed and 

as to cigarettes, smoking tobacco, chewing tobacco and snuff, the followirng trade practices shall be observed by all members of the retail 

tobacco trade. 6 

Section 1. No tobacco retailer shall at any time sell any such tobacco product below the merchandise cost thereof to such retailer. 

For the purposes of this Article the ter1n "merchandise cost" means 

(1) actual net delive1·ed cost less trade discownts, or cU?-rent replace-

'ITIR/nt cost, whichever is lower; ood in addJition thereto, (93) the 

amount of any taw on the sale of the product directly paid by the 

retadler or (3) in the event of a sale involving a shipment to a buyer 

situated at the time of su.ch sale in another State, an amount equal 

to all tawes (other than tawes paid dilrectly by the rnanufactw-er) 

which would be incVuded in the sale p1•ice of such product were such. 

product bought from a retailer located in suoh State. 5 

Section 93. The Oode Authority shall from time to time upon such 

notice and opp01't'llmity to be heard, if any, as the Administrator may 

require, determine the lowest reasonable cost of the retail distribution of tobacco products, such determination to be subject to the ap1 Italicized words deleted. See paragraph 2 ( 4) of ordet· approving this Code. 
50 

proval of the Administrator. In determiniJng the lowest reagonabl8 

cost of the retail distribu.t~;on of tobacco products, no significant 

channel of distribtdion shall be ewclt~;ded from consideration upon 

the grottnd that only a partial distribution of tobacco products is 

made through such channel, but the ewtent and cha;racter of distribu- tion in the several respective significant channels of distribution are 

factors that shall be given due weight by the Code Authority in 

reaching its determination of lowest reasonable cost. I t shall be an 

wnfair trade practice and is hereby prohibited for any tobacco retailer to sell or offer to sell any tobacco product at such pri.ce or upon 

such te?"1118 or conditions of sale that the buyer will pay less theref or 

than S'WCh lowest reasonable cost of distribution a8 so determinedJ 

and approved, plus the merch{JJrJ-dise cost thereof to. such retailer, 

provided, however, that such mini1nwrn price, in the oase of any to- bacco proclttct purchased by the retailer directly fro·m the ma;nufactwrer, shall include, in addition to the foregoing, the difference, if 

any, between the net delivery cost less trade discounts to the retailer 

'upon such tJirect purchase frO?n the manufacturer, and the jobbers' 

net w·holesale price then prevailing with respect to the said product. The tobacco retailer rnay give not 1nore than one pad of matches 

for each unit sold or five pads for each package of ten units sold. 

In the cage of all sales in combination of two or 1110re articles~ the 

price of each article shall be plainly indicated.r' 

Section 3. Pend·ing a deterndnation pursumnt to Section 13 of thia 

Part I I, and in order te1nporarily to restrict destructive pr-lce-cut- ting in the retail tobacco trade, t~e Administrator may, subject to 

such notice and opportunity to be hea;rd as he may deem necessary, 

fi x a b{J)8is for the computation of the minim,um retail price of tobacco products, which shall be binding on all retailers." 

Section 4. Notwithstanding the pro'Visions of this Pm·t I I, any 

tobacco 1·etailer may sell any tobacco products as loto as the price 

set by any c01npetito1· in his traxie area on n~erchandise which ia 

identical or essentially the same, if such competitor's price is set in 

confor?nity with the provisions of this Section, provided that s1wh 

tobacco retailer shall immediately notify the 0 ode Authority or its 

nearest local agency of such action and of all facts pertir~ent 

thereto. 5 

Section 6. In computing minimum unit prices under this Part II1 a 

fraction of a cent shall be treated as a full cent. In computing m?-nim;um prices for more than one ttnit of the same article, such mini- mun1 unit price shall be 1nultiplied by the number of units sold. If the resulting total be one dollar or less, a discount of not m01·s 

than S% 1nay be allowed, and if it be greater than one dollar, a discount of not more than 8% may be allowed. If t"M net multi{~ 

price, so calculated, contains a fraotion of <J'M cent, such fractwn 

shall be treated a8 one full cent.tJ 

"As to cigars, with respect to which the provisions of Part I o:r 

Schedule I shall not at the time be operative or shall be stayed, and 

as to cigarettes, smoking tobacco, chewing tobacco and snuff, the 

standards of fair competition for the trade with reference to pricing practices ara declared to be as follows: 

a Italicized words deleted. See paragraph 2 (4) ot order approving this Code. 
51 

" SECTION 1. (a) Wilfully destructive price cutting is an unfair 

method of competition and is forbidden. Any member of the trade 

or of any other trade or industry or the customers of either may, 

at any time, complain to the Code Authority that any actual price 

constitutes unfair competition as destructive price cutting, imperilling small enterprises or tending toward monopoly or the impairment of code wages or working conditions. The Code Authority 

shall, within five days, afford an opportunity to the member making 

such price to answer such complaint and sh all, within fourteen days, 

make a ruling or adjustment thereon. If such ruling is not concurred in by either party to the complaint, all papers shall be referred to the Research and Planning Division of NRA, which shall 

render a report and recommendation ther eon to the Administrator. 

" (b) When no declared emergency exists as to such products or 

any specified part thereof, there is to be no fixed minimum basis 

for prices. 

" It is intended that sound cost estimating methods should be used 

and that consideration should be given to costs (including costs of 

retail distribution) in the determination of pricing policies. 

" ( o) When an emergency by reason of unfair competitive practices or other conditions, exists in the trade as to such products or 

any specified part thereof, sale below the stated minimum price of 

such products or such specified part thereof, in violation of Section 

2 hereof, is forbidden. 

"SECTION 2. E1nergency Provisions-

" (a) If the Administrator, after investigation, shall at any time 

find both (1) that an emergency has arisen within the trade, adversely affecting small enterprises or wages or labor conditions~ or 

tending toward monopoly or other acute conditions which tend to 

defeat the purposes of the Act; and (2) that the finding of a basis 

for determining minimum prices for such products or any specified 

part thereof is necessary for a limited period, to correct the conditions constituting such emergency and to effectuate the purposes 

of the Act, the Code Authority may cause an impartial agency to 

investigate costs (including the costs of retail distribution) and to 

recommend to the Administrator a basis for determining minimum 

prices of the said products or the said specified part thereof affected 

by the emergency, and thereupon the Administrator may proceed 

to fix a basis for determining such minimum prices. 

" (b) When the Administrator shall have fixed a basis for determining minimum prices for the said products or said specified part 

thereof for a stated period, which prices shall be reasonably calculated to correct the conditions of such emergency and to effectuate 

the purposes of the Act, he shall publish the said basis. Thereafter, 

during such stated period4 no member of the trade shall sell such 

products at a net realized .price below the minimum price determined upon the basis so fixed, and any such sale shall be deemed 

destructive price cutting. From time to time, the Code Authority 

may recommend review or reconsideration or the Administrator may 

cause any determination hereunder to be reviewed or r econsidered, 

and appropriate action taken." 6 

6 Preamble and Sections 1 and 2 added. See paragraph 2 ( 4) of order approving this Code. 
52 

SECTION 3. Notwithstanding any of the provisions of this Part II, 

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 disposed 

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 which shall be issued by the Code Authority subject 

to the approval of the Administrator. 

SECTION 4. Except as in this Part II otherwise expressly provided 

wherever, under any of the provisions of this Article VI, any tobacco 

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

minimtm1 retail price shall not be reduced directly or indirectly or 

by any device or subterfuge such as the giving of any trading or merchandise coupons, prizes or premiums, or any other thing of value 

or any discount, rebate, refund, commission, credit or allowance 

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

offer or extend any special service or privilege to any customer which 

is not available to all customers. 

SECTION 5. Nothing in this Part II shall be construed to prevent 

the free and general distribution of articles commonly used for 

advertising, except so far as such distribution would constitute in 

event an additional discount or reduction in price below the minima 

established hereby. 

ARTICLE VII-TRADE PRACTICES 

SECTION 1. False Advertising.-The making 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 or 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 Branding.-The infringement of established 

trademarks and the use of trademarks 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 tobacco retailer shall lmowingly 

withhold from or insert in any quotation or invoice any statement 

that makes it inaccurate in any material particular. 

SECTION 4. Inaccurate Labelling.-No tobacco retailer shall brand 

or mark or pack any tobacco product in any manner which is intended to or does deceive or mislead purchasers with respect to the 

brand, grade, quality, quantity, origin, size, substance, character, 

nature, material content, or preparation of such tobacco product. 
53 

SECTioN·5. Inaccurate References to Competitors, etc.-No tobacco 

retailer shall publish advertising which refers inaccurately in any 

material particular to any competitor or his goods, prices, values, 

credit terms, policies or services. 

SECTION 6. Threats of L{]fiJ.) Suits.-N o tobacco retailer 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 such threat is unwarranted or unjustified. 

SECTION 7. Bribing Employees.-N o tobacco retailer 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 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 above defined. 

SECTION 8. l nterfeTence with Another's Oontracts.-No tobacco 

retailer shall attempt to induce the breach of an existing contract 

between a competitor and his custQmer or source of supply; nor 

shall any such retailer interfere with or obstruct the performance 

of such contractual duties or services, with the purpose and effect 

of hampering, injuring or embarrassing competitors in their business. 

SECTION 9. Ooercion.-No tobacco retailer shall require that a purchase of any tobacco products or other goods be a prerequisite to the 

purchase of any other tobacco products. 

ARTICLE VIII-ORGANIZATION, PowERs, AND DUTIES OF THE ConE 

AUTHORITY 

ORGANIZATION AND CONSTITUTION 

SECTION 1. There shall forthwith be constituted a Code Authority 

consisting of not more than ten ( 10) members selected as follows : 

Two (2) members shall be members respectively of the retail food 

and grocery trade and of the retail drug trade engaged in the sale at 

retail of tobacco products and each shall be designated by the Code 

Authority established by the code of fair competition for his trade. 

One (1) member shall be appointed by the Consumers' Advisory 

Board of the National Recovery Administration. 

Six (6) members shall be representative of the retail tobacco trade 

and shall be designated by the Board of Directors or the Executive 

Committee of Retail Tobacco Dealers of America, Inc. One of the 

said six (6) members shall represent a national chain of tobacco 

stores and nve (5) of the said six (6) shall represent other tobacco 

retailers. 

One ( 1) member shall be representative of and selected by the 

non-members of Retail Tobacco Dealers of America, Inc., non-members of any of its affiliated associations and shall be designated pursuant to a plan which shall be submitted to the Actministrator for 

his approval by the other members of the Code Authority within 

fifteen (15) days after the effective date hereof. 
54 

SECTION 2. In addition to membership as above provided, there 

may be not more than three (3) members, to be appointed by the 

Administrator, to serve without vote or expense to the trade. 

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 associatwn, by-laws, regulations, and any amendments 

when made thereto, together with such other information as to 

membership, organization, and activities as the Administrator may 

deem necessary to effectuate the purpose of the Act. 

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

be truly representative of the trade and in other respects comply 

with the provisions of the Act, the Administrator may prescribe 

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

that the Code Authority is not truly representative or does not in 

other respects comply with the provisions of the Act, may require 

an appropriate modification in the method of selection of the Code 

Authority. 

SECTION 5. Nothing contained in this Code shall constitute the 

members o£ 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 o£ the Code Authority, exercising reasonable diligence in the conduct o£ his duties hereunder, be liable to anyone for any action or omission to act under 

this Code, except for his own willful misfeasance or non-feasance. 

SECTION 6. I£ the Administrator shall at any time determine that 

any action o£ 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 o£ the merits of such action and further consideration by such Code Authority or agency pending final action which 

shall not be effective unless the Administrator approves or unless 

he shall fail to disapprove after thirty (30) days' notice to him of 

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

POWERS AND DUTIES 

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 o£ this Code . (a) To insure the execution of the provisions o£ this Code and 

to provide for the compliance o£ the trade with the provisions o£ the 

Act. 

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

(c) To obtain from members o£ the trade 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 o£ the trade subject to this Code shall furnish such statistical information as the Administrator may deem necessary for the 

purposes recited in Section 3 (a) of the Act to such Federal and 
55 

State agencies as he may designate; provided that nothing in this 

Code shall relieve any member o£ the trade o£ any existing obligations to furnish reports to any Government agency. No individual 

report shall be disclosed to any other member of the trade or any 

other party except to such other Governmental agencies as may be 

directed by the Administrator. 

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

tor 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 l?rovisions hereof. 

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

if any, as may be related to or affect members of the trade. 

(f) (1) It being found necessary to support the administration 

o£ 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 purposes and to meet such obligations out 

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

and raised as hereinafterlrovided . . (b) To submit to the dministrator tor his approval, subject to 

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

1. An itemized budget o£ 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 

trade. 

(c) After such budget and basis of contribution have been approved by the Admirustrator, to determine and collect equitahle 

contributiOns as above set forth, and to that end, if necessary, to 

institute legal proceedings therefor in its own name. 

(2) Each member o£ the trade 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 trade 

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 trade who are 

complying with this Code. 

(h) To recommend to the Administrator any action or measures deemed advisable, including further fair trade practices, in 

their relations with each other or with other trades or 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 trade for the purpose of formulating fair trade 
56 

practices to govern the relationships between employers under this 

Code and under 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 determinations. 

SEcTION 8. Any member of the trade 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 trade; and the Code Authority may, after investigation, 

recommend to the Administrator that changes 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 provi ... ions 

shall becmne effective for that member of the trade. 

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

to the construction and meaning of any portion thereof, the Code 

Authoritiy may issue such interpretations as may be necessary to 

effectuate the operation of and compliance with the policy of the 

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. 

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

of the trade or to any party in any proceeding the right to appeal 

to the Administrator nor prevent, at any time, direct appeal to him 

from any determination of the Cod,e Authority. The Code Authority may, if it chooses, invoke 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 b~ 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, ETo. 

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

ARTICLE XI-EFFECTIVE DATE 

This Code shall become effective on the date specified in the order 

of approval by the President of the United States. 

Approved Code No. 466. 

Registry No. 1615--30. 
SCHEDULE I 

CIGAR MERCHANDISING PLAN I I 

A. SALES BY CIGAR MANUFACTURERS 

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

cigar is intended to be sold 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 retail price in connection with the several respective classes 

of transaction described in subdivisions (a) to (d) inclusive of Section 2 o:fl 

this Division A. 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 reqwi;red by a cigar manufacturer itn order to meet a competitor's redtwtion of price which i.s not in violation of this merchatrlitising plan..' 

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 by him in his discretion 

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

(a) In the case of sales, if any, to retailers 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 (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% ). 

(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% % ) of the 

established discount to accredited jobbers. Provided, however, that in territories 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 class 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 bas an accredited cigar 

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

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

requests such shipments; 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 

Class B cigars, and not less than 1,000 cigars in the case of Class C or higher 

classes. 

For such sales or drop shipments, there shall be established a discount for 

the drop shipment purchaser, in addition to the discount which shall have been 

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

percent (5%), and this discount 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 requested or consented to such 

2 Effective June 25. 1934. See paragraph 2 (1) of order approving this Code. 3 Provisions for filing of prices and discounts stayed until further orders. See 

paragraph 2 (3) of ordet· approving this Code. ~Italicized words deleted. See paragraph 2 (2) of order approving this Code. 

(57) 
58 

sale a service credit. Pro>ided, that the total of the service credit and the 

discount allowed to the drop shipment purchaser and the accredited cigar 

jobber hall not exceed the fourteen percent (14o/o) set forth in subdivision (b) 

aboYe. 

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

discounts which the manufacturer shall ha Ye established for his sales to ac- credited cigar jobbers uncler 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 cigar manufacturer may allow a further discount of two percent 

(2% ) for cash within his established credit terms. 

Nothing herein contained shall pre>ent any cigar manufacturer from establishing within the maximum percentage limits hereinabove prescribed a different schedule of discounts \Yith 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 

establishE>d system of discounts uniformly as to each of the classes of transactions above enumerated in subdi>isions (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 proYided for in subdivision (d) need 

not be uniform and may >ary in each individual case. 

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

in accordance wlth 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 \\·ho sells exclusively and directly to the consumer. 

SECTION 4. No manufacturer hall 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 alloiYance conditioned upon the purchase of a 

product. 

SECTION 5. All sales by m:::mufacturers shall be evidenced by itemized invoices showing the retail price and the discounts granted therefrom. 

B. SALES BY JOBBERS AND SUB-JOBBERS 

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

credit terms (not exceeding the discounts which such jobber shall have received 

from the manufac turer) to be allowed by the jobber from the retail price in 

connection with all resales of cigars which in his discretion he may make to 

sub-jobbers. Such discounts shall be subject to change at the discretion of the 

jobber provided that the re>i ed discounts be recorded with the Council at least 

three ( 3) daus before the change becomes effective 1Unless a shorter time be 

r equired in order to meet a oon'l-petitor's r eduction of pr,ice which is not in 

'L'iolation of this merchandising pla11 / and the discounts so recorded shall so 

long as Pffective apply to all such r esa les by the jobber to suo-jobbers and there 

shall in no cac::e be any individual Yariation or variations from the discount 

or discounts so established. SEcTio~ 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 \Yhich 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 retailer . Such discounts shall be subject to change at the discretion of the 

jobber or ·ub-jobber provided the revised discounts be recorded with the Council 

a,t least th1·ee (3) days before the change becomes effective unless a shorter 

tim e be re(}1.lircd in order to meet a competit01·'s redtwtion of pr·ioe which is not 

in violation of this me1·chandising plan/ and the discounts so recorded shall, 

so long as effectiYe, 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. 

c:-ECTION 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 approYlng this Code. 
59 

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

provisions above set forth in Division A in relation to drop shipment sales. 

SE<JriON 5. No jobber or sub-jobber shall sell cigars directly to the consumer 

except through an established retail department and in compliance with the 

provisions of this merchandising plan relating to sales by retailers. 

C. 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 (10) 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 

(5%) from the retail price, and (2) in the case of sales at r etail of boxes of 

twenty-five (25) cigars or more a discount of not more than eight percent 

( Bo/o) from the retail price may be allowed unless the cigar manufacturer 

shall record with the Council and mark a bo:x price thereon involving a discount 

of less than eight percent (8%) in which case the marked box price shall be 

observed as a minimum, and (3) the retailer may give not more than one (1) 

pad of matches for each unit sold, or five (5) pads per box of twenty-five (25) 

cigars or ten (10) 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 ta 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 fo r 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 disposed 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 r egulation 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 pro-. 

vided 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 giving of any trading or merchandise coupons, prizes or premiums 

or any other thing of value or discount, rebate, r efund, commission, credits 

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

retailer offer or extend special service or privilege to any customer which is 

not available to all customers. 

D. MINHIUM DISCOUNTS 

Upon the recommendation of the Code Authority established by the Code for 

the Cigar Manufacturing Industry or the Code for the Wholesale Tobacco Trada 

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

of the Cigar Manufacturing Industry 0r of the Wholesale Tobacco Trade or 

of the Retail Tobacco Trade and the approval of such recommendation 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 motion minimum discounts 

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

Industry or Trades and such determination shall be effective only upon the 
60 

concurrence of all three (3) Code Authorities and, subject to the further 

approval of the Administrator, such minimum discounts shall be binding upon 

all such members. 

E. PROVISIONS APPLICARLID TO ALL SALES OF CIGARS 

SEOTION 1. Wherever any of the provisions of this merchandising plan provide for two (2) 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 2. Any change in the retail price shall be applicable as at the effective 

date of such change to all merchandise thereafter sold by wholesale distributors, 

or retailers. tut wholesale distributors may, notwithstanding any reduction of 

the retail price, dispose of existing stocks on the basis of the retail price prevailing when such stocks were acquired. 

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

the free and general distribution of articles commonly used for advertising 

purposes and premiums, except insofar as such distribution or use of premiums 

would constitute, in effect, an additional discount 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. 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. 

0 

UNIVERSITY OF FLORIDA 

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