Approved Code No. 300 Registry No. 699-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

LYE INDUSTRY 

AS APPROVED ON FEBRUARY 19, 1934 

WE DO OUR PART 

UNIV. 01' FL ua. 

ft 

U.Q.. llft09'TOf!IY I !ol-.-=-----------,..i 

r . \ 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

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

V 
This publicatiou is for ~a le lJy the Superintendent of Docum nt , Governm nt 

Printing Office, Washington, D.C., and by district offices of the Bureau ot 

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

Buffa lo, N.Y.: Chamber of Commerce Building. Charleston, S.C.: Chamber of Commerce Building. 

Chicago, Ill. : Suite 1706, 201 Nortll Wells Street. 

Cleveland, Ohio: Chamber of Commerce. 

Dallas, 'l.'ex. : Chamber of Commerce Building. Detroit. Mic:h.: '-:'01 Fir t atioual Bank Buildin". Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Comme rce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, hlo.: 10-8 Baltimore Avenue. 

Los Angeles, Calif.: 1J63 South Broadway. 

Louis\'ill . K.v.: 40 Federa l Bnildin"'. Memphi , Tenn. : 229 Fetler a l Buildin<T. Minnea polis, Minn. : 213 Federal Building. 

New Orleans, La . : Room 225-A, Customl10u e. 

New York, N.Y.: 734 Customhouse 

Norfolk, Va. : 406 East Plume Street. 

PhHacl lphin, Pa. : 422 'omrn rc-h l Tru. t Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Ore''· : -15 New Po t Office Building. St. Loui , Mo. : 506 Olive tr et. San Francisco. Cali!.: 310 Customhouse. cattle, W c . 11. : 09 Fed ral ffi ce Buildi ng. 
Approved Code No. 300 

CODE OF FAIR COMPETITION 

FOR THE 

LYE INDUSTRY 

As Approved on February 19, 1934 

ORDER 

APPROVING CODE OF FAIR COMPETITION FOR THE LYE 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 Lye Industry, and hearings having been 

duly held thereon and the annex 0 d 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 VII, Section 1, insofar as they prescribe a 

waiting period between the filing with the Code Authority and the 

effective date of revised price lists or revised terms and conditions 

of sale be and they are hereby stayed pending my further order 

either within a period of 60 days from the effective date of this 

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

now being conducted by the National Recovery Administration. 

HUGH s. JOHNSON, 

Aa/lninistrator for Industrial Recovery. 

Approval recommended: 

A. D. w HITESIDE, 

Division Administrator. 

WASHINGTON, D.C., 

February 19, 1934. 

41485°-376-112-34 (221) 
REPORT TO THE PRESIDE T 

The PRESIDENT, 

The lVhite House. 

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

Industry as revi ed after public hearings conducted in ,v a ·hington 

on December 7, 1933. 

The Deputy Administrator in his final report to me on aid Cod 

haYing found as herein set forth and on the basi of all the proce ling in thi matter; 

I find that: 

(a) Said Code is we.11 de igned to promote the policie and 

purposes of Title I of the National Indu trial Recovery Act in luding remo,al of ob truction to the free flow · of inter ta te and foreign 

commerce which tend to diminish the amount thereof an l will provide for the general welfare by promoting the organization of 

indu try for the purpo e of cooperative action among the trade 

groups, by inducing and maintaining united action of labor and 

management under adequate governmental sanction and npervi ion 

by eliminating unfair competitive practices, by promoting the fullest 

pos ible utilization of the present producti,e capacity of in<lu trie. 

by a,oiding undue re triction of production ( except a · ma be temporarily required), by increa ing the consumption of indu. trial and 

agricultural product through increa ing purcha ing po1'er b 

reducing and relie,ing unemployment by improYing tandar l o·f 

labor, and by otherwi e rehabilitating indu try. 

(b) Said Indu try normally employs not more than 50.0 mployee ; and is not cla sifie 1 by me a a major indn .. try. 

( c) The Cod a a1 pro,ed omplie in all re pect with the pertinent provi ions of aid Title of aid ct. including without limitati n 

Sub ·ection (a) of ection 3, ub ection (a) of ction 7. and ubsection (b) of ection 10 th reof; and that the applicant a o iati n 

i an in lu trial a ociation truly r epre ntatiY of th afore. aid 

In lu. try; and that aid a o iation impou no ineqnita 1 re tri tion 

on admi ion to m mbership ther in. 

( 1) Th od i not d ign d to and 1'ill not p rmit m n p li 

or monopoli tic practice . 

( ) Th Col is not d i ne l to and will n t liminat or ppr . mall nterpri and will n t op rat t di . riminat a<Yain t th m. 

(f) Tho e en a<Y l in oth r tep of th norui pr e, ha, 

not b n lepriY d of the ri ht t b h ard pri ap1 r ,al f 

ai 1 cl . 

F r the r a n. th od ha. he n a1 pr Y d. 

R p tfull 

H u 

F , BR ARY 1 1 34. 

(22:..) 

T H :,- ~ . 

dmini trator. 
CODE OF FAIR COMPETITION FOR THE LYE INDUSTRY 

ARTICLE I-PURPOSES 

To effect the policies of Title I of the National Industrial Recovery 

Act, this Code is established as a Code of Fair Competition for the 

Lye Industry, and its provisions shall be the standards of fair competition for such industry and shall be binding upon every member 

thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. Lye Industry.-The term " lye industry" as used herein 

includes the manufacturing, packing, and/ or canning of lye for sale 

in packages which may be used for household purposes, and/ or the 

primary distribution thereof, and the manufacturing of cans, packages and/ or shipping cases to be used for lye when produced by a 

manufacturer, packer or canner of lye for his own use. 

SEc. 2. Primary Distribution.-The term " primary distribution " 

as used herein means the distribution direct to the trade buyer or to 

the ultimate consumer buyer by a manufacturer, packer, canner, or 

his agent, when in fad this function in whole or in part, including, 

but without limitation, the determination of marketing or selling 

policy, has been delegated to said agent by said manufacturer, packer, 

or canner. 

SEc. 3. Lye.-The term " lye " as used herein means any product 

in a package for household use which is labeled Lye, or sold with the 

intention or possibility of being so labeled by anyone. 

SEc. 4. E1nployee.-The term "employee" as used herein includes 

anyone engaged in the industry in any capacity7 excepting brokers, 

receiving compensation for his services, irrespective of the nature or 

method of payment of such compensation. 

SEc. 5. Employer.-The term" employer" as used herein includes 

anyone by whom any such employee is compensated or employed. 

SEC. 6. Member of the lndustry.-The term" member of the industry" as used herein includes anyone engaged in the industry as above 

defined, either as an employer or on his own behalf. 

SEc. 7. Trade Buyer.-The term "trade buyer" as used herein 

means any commercial buyer as distinguished from an ultimate consumer buyer. 

SEC. 8. Broker.- The term "broker" as used herein means any 

sales representative who performs the services of negotiating the sale 

of lye for and on account of the seller as principal and whose 

compensation is a commission or brokerage paid by the seller. 

SEc. 9. Open Price.-The term " open price h as used herein 

includes a price list which is published for the equal information of 

all trade buyers alike located in the same competitive market, and 

which states all the seller's prevailing terms of sale. 

(223) 
224 

SEc. 10. Competitive M m·ket.-The term " competitive market" as 

used herein mean a geographical area, the boundaries o:£ which 

are fixed by any member of the indu try :£or him elf. 

SEc. 11. P·r sid nt, Act, and Adniinist1'af ot.-The term "Pr -

iclent ", "Act ', and "Admini trator ' a u el herein hall mean 

re pectively the Pre i lent of the Unit c1 tat . Titl I of the 

National In lu trial Recovery Act, and the Aclmini ... trator for Indu -

trial Recovery. 

ARTICLE III-Hm:;R 

f 

l in , ti n 6 b low, 

pr we k 

forty-fi ...-
225 

ARTICLE IV-,VAGES 

SECTION 1. No employee shall be pail at a rate of le than fourteen dollars ($14.00) per week or thirty-five centf:; (35¢) an hour 

except as follows: Learners or apprentices not exceeding five (5) 

percent of the total number of employees in any establi hment employing more than forty (40) employee , during the first sixty (60) 

days of their e1nployment, shall be paid not le s than eighty (80) 

percent of the minimum rates above pre cribe 1. Any establishment 

employing les,s than forty ( 40) employees, may ha Ye not more than 

two (2) learners or apprentices receiving not le. than eighty (80) 

percent of the minimum rate . 

SEc. 2. This article establishes a minimum rate of pay which 

shall apply irrespective of whether an employee i actually compensated on a time-rate, piece\vork, or other basis. 

SEc. 3. Based upon changes in minim.um pay ac: ,, tate l in the .foregoing Sections of this Article, each employer shall make fair and 

equitable readjustments of all pay schedule above the minimum 

and shall report such readjustments to the Code Authority on or 

before February 15, 1934. 

SEc. 4. There shall be no evasion of this Code by any member of 

the industry by reclassification of general type of occupations 

existing on June 15, 1933. 

ARTICLE V-GENERAL LABOR PROYISIONS 

SECTION 1. No person under sixteen (16) year of age shall be employed in the industry, nor anyone under eighteen (18) years of 

age in the ca e of factory workers. In any state an employer shall 

be deemed to have complied with thi provision, if he k·hnll have on 

file a certificate duly i sued by an authority empowered to i sue 

employment certificate , showing that the employee i of the required 

age. 

SEc. 2. Employee ·hall have the right to organize and bargain 

collectively through repre entatives of their own choosing and shall 

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

labor or their agent in the designation of such representatives or 

in self organization or in other concerted activities for the purpo e 

of collective bargainino· or other mutual aid or protection. 

SEc. 3. No employee and no one seeking employment shall be required a a condition of employment to join any company union or 

to refrain from joining, organizing, or assisting a labor organization 

of his own choosing. 

SEC. 4. Employer shall comply with the maximum hour, of labor, 

minimum rates of pay, and other conditions of employment, approved or prescribed by the President. 

SEc. 5. Within each state this code shall not nper.__ ede any laws 

of such state imposing more stringent requirements or employers 

regulating the age of employees, wages, hours of work, or health, 

fire, or general working conditions than under thi code. 

SEc. 6. Each employer shall make reasonable provision for the 

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

of their employment, and shall list with the Code Authority all 

occupations of a dangerous nature. 
226 

SEc. 7. Each employer shall post in conspicuous places accessible 

to employees full copies of Article III, IV, and V of this code. 

ARTICLE VI-ADMINISTRATION 

To further effect the policies of the Act, a Code Authority is hereby 

constituted to administer this Code. 

SECTION 1. The Code Authority for the Lye Industry shall consi t 

of five ( 5) members elected by the industry in the following manner, 

and of such additional members without vote as the Administrator, 

in his discretion, may appoint to represent such groups or interests or 

such governmental agencies as he may designate. 

(a) Nominations and elections of the elective members of the Code 

Authority, shall take place under the auspices of the Secretary of the 

~ye Manufacturers' Association and shall be conducted in the following manner: 

Each member of the industry who assents to and complies with the 

requirements of this Code and sustains his reasonable share of the 

expenses of its administration shall be entitled to one ( 1) vote and 

shall be termed hereinafter as an elector. 

(1) Each elector may nominate a sufficient number of individuals 

to fill whatever vacancy or vacancies exist. 

Ten (10) days after the Secretary has notified electors that a 

vacancy exists and that nominations are in order, he shall tally all 

nominations received. Those individuals receiving the greatest number of nominations shall be the nomineest and there shall be twice as 

many nominees as there are vacancies to be filled. 

(2) vVithin two (2) days after the tallying of nominations the Secretary shall mail ballots to each elector which ballot shall list the 

nominees nominated. Each elector may vote for a sufficient number 

of nominees on the ballot received to fill existing acancies. 

Ten (10) days after mailing of ballots the Secretary shall tall all 

ballots received from electors. The nominee or nomine , re pectively, receivin?. the highest number of votes shall be elected. 

\Vithin two ~2) days after the tallying of votes the ecretar hall 

mail written notification to all electors setting f rth th re ult of the 

election. 

(3) The Secretary hall call for nominati n within thr ( ) 

days after the approval of the Code. "Ee. 2. The Code Authority shall have the followincr fnrth r 

pow r and duties to the extent p rmitt d b the ct: 

(a) To obtain from member of the indu tr u h informati n 

and r ports as ar requir d f r h~ admini tra ion of th l and 

to I ro ide for ubmi ion by m mb r f u h inf rmati n and r - por a the dmini trat r ma d m n ar f r th I urp 

r ecit in ti n 3 (a) f the t whi h inf rmati n anl r p rt. 

hall be ubmitt db m mb r to u h admini tratiY and/ r cr Y rnm nt a nr.i a th dmini r. t r ma l i nat · 1 r Yi 1 tha 

n thino- in thi od hall r li Y an n mb r f th i lu tr f an 

xi ting bli ati n furni h r p rt to an. 

indi idual r I rt h, ll b 1i 1 t any 

in l u r r an h r I art. u h 

a m b 1ir d b th lmini tra 
227 

When required, reports containing such information hall -be 

notarized, the Code Authority shall designate the agent or agents to 

whom reports shall be submitted. Such agent or agents shall not be 

a member or members of the industry. When report are of a confidential nature, they shall be kept confidential by the agent or agents 

designated and by any designated government agencies. The information so collected if published shall be disseminated without individual identification and only in combination with other information 

of the same type. 

(b) If the Administrator shall determine that an} action of a 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 such code authority or 

agency pending final action, which shall not be effected unless the 

Administrator approve or unless he shall fail to disapprove after 

30 days' notice to him of intention to proceed with ·uch action in its 

original or modified form. 

( c) Any trade or industrial association directly or indirectly 

participating in the selection or activities of the Code Authority 

shall: (1) Impose no inequitable restrictions on membership, and 

(2) submit to the Administrator true copies of its articles of association, by-laws, regulations and any amendments when made thereto, 

together with such other information as to member. hip, organization, and activities as the Administrator may deem ne "e sary to 

effectuate the purposes of the Act. 

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

:representative ·of the industry and in other respects comply with 

the provi ions of the Act, the Administrator may provide such 

liearings 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. 

(2) Members of the industry shall be entitled to participate in 

and share the benefits of the activities of the Code Authority by 

assenting to and complying with the requirements of this code and 

sustaining their reasonable share of the expenses of its administration. The reasonable share of the expenses of the administration 

shall be determined by the Code Authority, subject to review by the 

Administrator, on the basis of volume of business and/or ~uch other 

factors as may be deemed equitable to be taken into consideration. 

ARTICLE VII-TRADE PRACTICES 

SECTION 1. Each member of the industry shall file with the Code 

Authority not later than the effective date of this Code, price lists for 

the s:pecified competitive markets within which such price lists are 

effective. Thereafter a member of the industry shall file with the 

Code Authority any changes in such price lists, or in the competitive 

markets within which they are effective, which changes shall become 

effective ten (10) days after the date of their filing. The Code Au-
228 

thority shall mail to each meinber of the industry a copy of all price 

lists and changes when they are filed. 1 

SEc. 2. A member of the industry shall be pennitted to manufacture, pack or can lye in cans labels and cases which he may have on 

hand_,, and which do not conform to the provisions of this Code, provided the same were purchased not later than December 8, 1933, and 

provided further, that before doing so and not later than fifteen (15) 

days after the approval of this Code by the President the member 

of the industry shall make application for this privilege to the Code 

Authority, and furnish therewith a statement duly sworn and notarized with reference to the quantities of such cans, cases or labels on 

hand and the purchase date ther of. A member of the industry who 

files such an application hall be required to report to the ode Authority when all such supplie~ mentioned in the application have been 

used, or upon demand by the Code Authority any time prior thereto 

shall be required to report the balance of such supplies on hand. 

This right to use such supplies a are covered in the application shall. 

cease six (6) months after the date of approval of this Code. 

SEc. 3. The following practices constitute unfair methods of 

competition for members of the indu try and are prohibited: 

(a) False Marking or Branding.-The false marking or branding 

of the product of this industry. 

(b) Misrepresentation or "False or Misleading Advertising.-The 

making or causing or knowingly permitting to be made or published 

any false, materially inaccurate or deceptive statement by way of 

advertisement or otherwise, whether concerning the product of the 

industry, or the product, credit terms, policies, or services of any 

member of the industry or otherwise having the tendency or capacity 

to mislead or deceive customers or prospective customers. 

(c) Oo11vmercial Bribery.-No member of the industry shall give, 

permit to be given, or directly offer to give, anything of valm~ for 

the purpose of influencing or rewarding the action of any employee, 

agent or representative of another in relation to the bu iness of the 

employee, the principal of such agent or the repre ented party, without the knowledge of such employer, principal or party. Commercial 

bribery provisions shall not be con trued to prohibit free and general 

distribution of article commonly used. for adverti ino- x pt so far 

as such articles are actually u ed for comm rcial brib r a 

hereinabove defined. 

( d) .Adve1·tising Allowances.-Offering or givin(Y adv rti in<Y allowances to a trade buyer or hi ag nts mplo ee or r pr ntati . ( e) Price O oncessions .-Giving or off rino- to gi an dir ct or 

indirect price cone ~ion to a trade buyer. The t rm ' dir ct r in irect price con i n ' m an any aria ion fr m the manufa tur r 

open price, wh th r by m an of a rebat allo" an I aym nt fr 

d al i£t, or by any oth r mean what o ver. 

(f) onsignm, nt.- hipping upon n ignment to a tra l bu r. 

( ) Product tandard .-(1) Th al f r ff rt 111. whi h 

ha 1 than a minimum ont nt f e n -four (7 ) p r nt f 

odium hydroxide. 

1 e paragraph 2 ot ord t· approving thl de. 
229 

(2) The sale of or offer to sell lye which is labeled in exce s of a 

maximum net weight of thirteen ( 13) ounces per can. 

(3) The sale of or off er to sell a case of lye containing other than 

twenty-four (24) cans or forty-eight ( 48) can . (h) Transportation Standards.-(1) The sale of or offer to sell 

lye at prices which do not include freight charges to de tination 

except in the case of ..;hipments to the United States Government, 

railroads, and steamship line . (2) Making allowance for transportation charges upon a hipment by a trade buyer to his customer, or upon a shipment from a 

trade buyer's stock to any branch thereof. 

( 3) The storage of lye within the ·warehou e or other premi e of 

a trade buyer. 

(i) Quantity Price.-No member of the indu try shall offer or 

make a quantity price unless it is based upon and reasonably measured by a substantial difference in the quantity ·old and delivered. 

(j) Cash Discount Tenns.-Terms other than two (2) percent discount for cash in ten (10) clays, net payment in thirty (30) days 

from date of shipment, or one (1) percent discount for cash in 

fifteen (15) days from date of shipment, except as follows: 

(1) Terms upon shipments to or from Pacific Coast ports hall 

date from the arrival at or shipment from the Pacific Coa t port. 

(k) Brokerage.-(!) The payment of a commi sion or brokerage 

to a broker in excess of fi Ye ( 5) percent of the in voice price. 

(2) The payment of a commission or brokerage to a broker if the 

same is to be used in any manner which would gi,:e any trade buyer 

a price advantage over any other trade buyer or any ultimate consumer buyer, a price advantage over any other ultimate con umer 

buyer. 

(3) The payment of a commis ion or brokerage to any trade 

buyer. 

(L) Open Prices.-The ale or off.er to sell lye otherwi e than upon 

the basis of open prices, which shall be the effective prices on file 

with the Code Authority, except when the sale or offer to sell i for 

the purpose of meeting a competitor's price. 

ARTICLE VIII-MomFICATION 

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 ten (10) of the National 

Industrial Recovery Act, from time to time to cancel or modify any 

order, approval, license, rule, or regulation issued under Title one (1) 

of said Act and specifically, but without limitation, to the right of 

the President to cancel or modify his approval of this Code or any 

conditions imposed by him upon his approval thereof. 

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

be modified in whole or part upon the recommendation of the Code 

Authority, such modification 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 Admini trator. 
UN IV ERSITY O F FLO RIDA 

II I II IIIIII Ill Ill lllll lllll II IIII IIIIII IIII IIII Ill Ill llll lllll I I 

230 3 1262 08850 4963 

ARTICLE IX-1\I oNOPOLrns 

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

ARTICLE X - ExPORT 

This Code, except as to the articles relating to hours, wage , and 

general labor provisions, shall not apply to export business. 

ARTICLE X I -EFFECTIVE DATE 

This Code shall become effective on the fifteenth (15) day after its 

approval. 

Approved Code No. 300. 

Registry No. 699--02. 

0