Approved Code No. 354 Registry No. 1109-1-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

SMALL ARMS 

AND AMMUNITION 

MANUFACTURING INDUSTRY 

AS APPROVED ON MARCH 22, 1934 

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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 193, 

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

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--- -

- - Price 5 cents 

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This publication is for sale by the Superintendent of Documents, Government 

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

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala.: 257 Federal Building. 

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

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

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

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, Mich.: 801 First National Bank Building. 

Houston, Tex.: Chn.mber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn.: 229 Federal Building. 

Minneapolis, Minn.: 213 Federal Building. 

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

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa.: 422 Comll¥3rcial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif.: 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 354 

CODE OF FAIR COMPETITION 

FOR THE 

SMALL ARMS AND AMMUNITION MANUFACTURING 

INDUSTRY 

As Approved on March 22, 1934 

ORDER 

APPROVING CODE OF FAIR COMPETITION FOR THE SMALL ARMS 

AND AMMUNITION MANUFACTURING 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 Con1petition _ for the Small Arms and Ammunition Manufacturing Industry, and hearings having been duly held thereon and the 

annexed report on said Code, containing findings with respect thereto, 

having been made and directed to the President: 

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

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

pursuant to authority vested in me by Executive Orders of the 

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

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

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

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

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

th~t (1) the provisions of Article II, Section 1, dealing with working 

hours be amended by inserting after the word "than" in the second 

line the words "eight (8) hours per day or", by deleting the period 

in the fifth line and inserting the words "; provided further that no 

employee shall work in excess of nine (9) hours a day or six days a 

week except as hereinafter provided"; (2) the provisions of Article 

II, Section 1, Subsection (c) dealing with employees working additional hours be amended by deleting the period and inserting the 

words ", and provided further, that such hours shall not be availed 

of in more than fifteen (15) weeks in any year, nor more than fortyeight (48) hours in any week."; (3) the provisions of Article II, Section 

2, Subsection 2 dealing with minimum hourly rates be amended by 

deleting the remainder of the Section after the word "females" in 

the fifth line and inserting a period; (4) the provisions of Article VII, 

Section 1, Subsection b, paragraph 1, dealing with resale price 

schedules be amended by deleting the words "resale price schedules ", 

47886°-425-119-34 (347) 
348 

in the fourth line, by deleting the words "or resale" in the sixth and 

seventh lines, by deleting- the remainder of the paragraph after the 

words "this Industry" 1n the seventh line; (5) the provisions of 

Article VII, Section 1, Subsection (b ), paragraph 2, dealing with 

distribution of price schedules be amended by deleting the period 

at the end of the Section and inserting the words ", provided that the 

respective schedules of prices for each class of trade shall be available 

at all reasonable times to the bona-fide members of each class of trade 

served by the Industry; provided further, however, that consumers' 

prices shall be open to the public."; (6) the provisions of Article VII, 

Section 1, Subsection b, paragraph 5, dealing with resale price 

maintenance, be amended by deleting this entire section and. inserting 

the following words "The Industry shall study and report to the 

Administrator recommendations in regard to resale price mainte- nance"; (7) Article XVI, dealing with waiving of constitutional 

rights, be deleted from the Code; (8) Article XVIII, dealing ·with 

consent by the members to modification, be deleted from the Code. 

Approval recommended: 

w. A. HARRIMAN, 

HUGHS. JOHNSON, 

Administrator for Industrial Recovery. 

Division Administrator. 

WASHINGTON, D.C., 

March 22, 1934. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

SIR: This is a report on the Code of Fair Con1petition for the Small 

Arms and Ammunition Manufacturing Industry, and on the hearing 

conducted thereon in Washington, D. C., September 27, 1933, in 

accordance with the provisions of the National Industrial Recovery 

Act. 

PROVISIONS AS TO WAGES AND HOURS 

This Code establishes a forty (40) hour week with permission to 

increase this to forty eight (48) hours per week for not more than 

twelve (12) weeks in any one (1) year. Employees in an administrative or an executive capacity, supervisors, planners, and technical 

reisearch engineers, receiving not less than $35 per week, and outside 

salesmen are excepted from the foregoing provision. Also the above 

minima do not apply in the case of emergencies involving possible 

loss of life or property. Repair men, shipping and delivery crews, 

and cleaners are also excepted, but it is provided that they may not 

work more than 10% in excess of the forty (40) hour or forty eight 

(48) hour maximum. Watchmen may work fifty six (56) hours per 

week, but not more than six (6) days in any one (1) week. 

Any employer may request an employee to work additional hours 

beyond those specified above, providing such additional hours shall 

be paid for at the rate of time and one-half. 

Minimum wages for accounting, clerical, office, service, or sales 

employees are fixed in accordance with the President's Reemployment Agreement which provides a sliding scale of fron1 fifteen dollars 

($15) per week to fourteen dollars ($14) per week, according to population. For all other employees, a minimum wage of forty cents 

(40¢) per hour is established for niales and thirty two and one-half 

cents (32}~¢) per hour for females, provided, however, that, in case 

the rate per hour for any female employee was, on July 15, 1929, less 

than the rate above specified for the same class of labor, the minimum rate paid on July 15, 1929, may be paid, provided further that 

in no event it be less than thirty cents (30¢) per hour. Beginners 

without experience may be employed for a period not to exceed sixty 

(60) days, at a rate not less than eighty per cent (80%) of the standard 

minimum wage, provided the total number of such beginners shall 

not exceed five per cent (5%) of the total number employed by any 

employer in any calendar month. 

The employment of any person under 16 years of age is prohibited, 

with a further provision that no person under 18 years of age may be 

employed in any hazardous occupation. 

(349) 
350 

GENERAL STATEMENT v 

This Industry consists of companies which manufacture small 

arms and ammunition therefor, components thereof except propellent 

powder, and clay targets and traps. Some companies n1.anufacture 

small arms only and some ammunition only. Others manufacture 

small arms and ammunition and clay targets and traps, and still 

others manufacture only clay targets or clay targets and traps. 

There are approximately 25 manufacturers in the Industry, each 

of whom had an opportunity for active participation in the preparation of the Code, and it is interesting to ·note that those who did 

participate therein. represented 100% in numbers and volume of those 

engaged in the manufacture of both small arms and ammunition and 

more than 90% of those engaged in the manufacture of small arms. 

As there has been no trade association covering the entire Small 

Arms and Ammunition Industry, statistical information is quite 

meager. 

The following figures illustrate the shrinkage which has taken place 

in the past five years: 

Year Invested 

Capital Net Sales 

1928______ ___ ________ ________________________________________________________ $48,127,329 $50,218,850 

1933 (Estimate) ___ ------------------------------------______________________ 40, 221, 537 20, 000, 000 

As a matter of national preparedness for defense, it is vitally important that this Industry should be maintained in a sound and stable 

condition; to enable it to function promptly and effectively in support of the Government it is essential that its trained personnel 

be kept intact. These are the workers who after long periods of 

training have acquired the skill and experience necessary in directing 

operations in an Industry requiring a very high degree of mechanical 

and professional skill. 

To insure retention of this trained personnel the Industry is obliged 

to conduct its manufacturing operations so as to secure the greatest 

possible volume, and this makes it necessary to meet peak demands. Its inability to control these peak demands is due to the fact that its 

product is distributed largely to the ·consumer during the latter part 

of the year. The volume of this distribution is affected by various 

factors which cannot be foreseen, among which may be mentioned: 

sudden changes in state and federal regulations regarding open 

seasons, purchasing power of the farmer and conditions generally 

affecting hunting. 

It has been customary for the Industry to operate on a fifty five 

(55) hour weekly basis during peak periods. Under the President's 

Reemployment Agreement operations were reduced to forty (40) 

hours per week averaged over a three (3) months' period, with a resulting increase in employment of 28.6%. With the application of 

the provisions of this Code there will be a further increase in the 

number of employees, although it will not be substantially greater than 

that already in effect as a result of the President's Reemployment 

Agreement. The application of the minimum wages included in 

said Agreement has brought about an increase in the payrolls of the 
351 

Industry at the rate of $1,500,000 annually. In this case also the 

effectuation of the provisions of this Code will augment this rate. 

It is not possible at this time to judge just what this increase will be; 

however, it should be borne in mind that the Code establishes a minimum wage for female employees of thirty two and one-half cents 

(32}~¢) per hour as compared to the rate of thirty cents (30¢) effective 

in July. Before this July period this class of employees was being 

compensated at a rate as low as twenty cents (20¢) per hour. 

An important feature of the Code is the prohibition contained in 

Article XI against the sale in the United States of machine or submachine guns or parts thereof, except to governmental subdivisions 

or to organizations having regularly organized police departments 

where such sale is authorized by the United States Attorney Ge~eral. 

This provision was suggested by the Department of Justice and has 

been accepted by the Industry. I believe it to be a forward and 

effective step in the Campaign against crime in this country. 

The Code makes provision for resale price maintenance. It does 

not establish any price maintenance as regards the sale of product.s to 

the consumer, but deals with open price lists and agreements of price 

maintenance between the manufacturers and the wholesalers in 

selling to the retailers. 

FINDINGS 

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

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

I find that: 

(a) Said Code is well designed to promote the policies and purposes 

of Title I of the 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 ihe trade groups, by inducing 

and maintaining united action of labor and management under adequate governmental sanctions and supervision, by eliminating unfair 

competitive practices, by promoting the fullest possible utilization of 

the present productive capacity of industries, by avoiding undue 

restriction of production (except as may be temporarily required), by 

increasing the consumption of industrial and agricultural products 

through increasing _purchasing power, by reducing and relieving 

unemployment, by improving standards of labor, and by otherwise 

reha bili ta ting ind us try. 

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

(c) The Code as approved complies in all respects with the pertinent 

provisions of said Title of said Act, including without limitation 

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

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

group truly representative of the aforesaid Industry; and that said 

group imposes no inequitable restrictions on adn1ission to membership 

therein. 

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

monopolistic practices. 

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

small enterprises and will not operate to discriminate against them. 
352 

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

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

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

however, that (1) the provisions of Article II, Section 1, dealing with 

working hours be amended by inserting after the word "than" in the 

second line the words "eight (8) hours per day or", by deleting the 

period in the fifth line and inserting the words '' ; provided further 

that no employee shall work in excess of nine (9) hours a day or six 

days a week except as hereinafter provided"; (2) the provisions of 

Article II, Section 1, Subsection (c) dealing with employees working 

additional hours be amended by deleting the period and inserting the 

words ", and provided further, that such hours shall not be availed 

of in more than fifteen (15) weeks in any year, nor more than fortyeight (48) hours in any week~'; (3) the provisions of Article II, Section 

2, Subsection 2 dealing with minimum hourly rates be amended by 

deleting the remainder of the Section after the word "females" in the 

fifth line and inserting a period; (4) the provisions of Article VII, 

Section 1, Subsection b, paragraph 1, dealing with resale price schedules be amended by deleting the words "resale price schedules", in 

the fourth line, by deleting the words "or resale" in the sixth and 

seventh lines, by deleting the remainder of the paragraph after the 

words " this Industry" in the seventh line; (5) the provisions of Article 

VII, Section 1, Subsection (b), paragraph 2, dealing with distribution 

of price schedules be amended by deleting the period at the end of the 

Section and inserting the words ", provided that the respective 

schedules of prices for each class of trade shall be available at all reasonable times to the bona-fide members of each class of trade served 

by the Industry; provided further, however, that consumers' prices 

shall be open to the public."; (6) the provisions of Article VII, Section 

1, Subsection b, paragraph 5, dealing with resale price maintenance, 

be amended by deleting this entire section and inserting the following 

words "The Industry shall study and report to the Administrator 

recommendations in regard to resale price maintenance"; (7) Article 

XVI, dealing with waiving of constitutional rights, be deleted from 

the Code; (8) Article XVIII, dealing with consent by the members to 

modification, be deleted from the Code. 

Respectfully, 

MARCH 22, 1934. 

HUGH S. JOHNSON, 

Administrator. 
CODE OF FAIR COMPETITION FOR THE SMALL ARMS 

AND AMMUNITION 11ANUFACTURING INDUSTRY 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are submitted as a Code of 

Fair Competition for the Small Arms and Ammunition Manufacturing 

Industry, and upon approval by the President, shall be the standards 

of fair competition for this Industry. 

ARTICLE !--DEFINITIONS 

(a) "Act" means the National Industrial Recovery Act. 

(b) "President" means the President of the United States of 

America. 

(c) "Administrator", as used in this Code, means the ADMINISTRATOR appointed by the President to administer Title I of the 

National Industrial Recovery Act, and at the time in office. 

(d) The "Industry" means and includes the business of manufacturing and/or selling by the manufacturer or selling by one known 

to the public as a manufacturer selling principally for resale, small 

arms and ammunition therefor; and components thereof, except 

propellent powders; and clay targets and traps therefor; but does 

not include jobbers, mail order houses, chain stores, and/or dealers. 

(e) "Code Authority" as used herein, means the Code Authority 

Committee created and described in Article VI hereinafter. 

(f) "Secretary" means the person designated by the Code 

Authority to act in that capacity for the Industry. 

(g) '' Member of the Industry" n10ans any one engaged in the 

Industry as an employer. 

(h) "Employee", · as used herein, includes any person engaged in 

any phase of the Industry in any capacity receiving compensation 

for his services, irrespective of the method of payment of his compe:r;isation. 

(i) "Employer", as used herein, means any one by whom any 

such employee is compensated or employed. 

ARTICLE II-HouRs OF LABOR AND RATES OF PAY 

SECTION 1-HOURS OF LABOR 

1. No person employed in the Industry shall be permitted to 

work more than forty (40) hours per week, provided that when 

necessary to meet seasonal demand, forty-eight (48) hours per week 

for twelve (12) weeks in any one year may be worked. 

(a) Provided, however, that repairrn.en, shipping and delivery 

crews, and cleaners shall be pern1itted to work not more than ten (10) 

per cent in excess of the hours prescribed in this Section 1. 

(b) Provided that watchmen may work fifty-six (56) hours per 

week, but not more than six (6) days in any one week. 

47886°-425-lHl-34--2 (353) 
354 

(c) Provided further that any employee at the request of the employer may work additional hours beyond those specified in the three 

preceding paragraphs, provided such additional hours shall be paid 

for at the rate of time and one-half. 

(d) Provided further that the above hours do not apply in the 

case of emergencies involving possible loss of life or property. 

(e) Provided further that nothing in the foregoing employment 

provisions shall apply to employees in an administrative or executive 

capacity, supervisors, planners, and technical and research engineers, 

receiving not less than $35.00 per week; and outside salesmen. 

(f) No employer shall knowingly permit any employee to work for 

any time which, when totalled with that already performed with 

an_other employer or employers in this industry, exceeds the maximum 

permitted herein. 1 

SECTION 2-MINIMUM WAGES 

1. No employer in the Industry shall pay any accounting, clerical, 

office, service or sales employee at less than the rate of $15.00 per week 

in any city of more than 500,000 population, or in the immediate 

trade area of such city; at less than the rate of $14.50 per week in any 

city of between 250,000 and 500,000 population or in the immediate 

trade area of such city; or at less than the rate of $14.00 per week in 

any city of less than 250,000 population. 

2. No emt>loyer in the Industry shall pay any employee other than 

as specified m the next preceding paragraph (1), less than forty (40) 

cents per hour for males and thirty-two and one-half (32}0 cents per 

hour for females; provided, however, that in case the rate per hour for 

any female employee was, on July 15, 1929, less than the minimum 

rate above specified for the same class of labor, then the minimum rate 

for such class of labor shall be the rate paid on July lfi, 1929, but in 

no event less than thirty (30) cents per hour. 

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

apply irrespective of whether an employee actually compensated on 

a time rate, piece work, or other basis. 

4. Equitable and reasonable adjustments of pay schedules of employees, above the minimum, shall be made within thirty (30) days 

after the effective date of thjs Code by any employer who has not 

theretofore made such adjustments. The first reports of wages 

required to be filed under this Code shall contain all wage increases 

made since May 1, 1933. 

5. Female employees performing the same class of work as male 

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

6. Beginners without experience m~y be employed for a period not 

to exceed sixty (60) days, at the rate of not less than eighty (80) per 

cent of the 1ninimum wages covered by Section 2 of this Article II, 

provided the total number of such beginners shall not exceed five (5) 

per cent of the total number employed by any employer in any 

calendar month. 1 

ARTICLE III-MINORS 

On and after the effective date, no employer in this Industry shall 

employ any person under the age of sixteen (16) years, and no person 

under the age of eighteen (18) years shall be employed in any hazard1 See paragraph 2 of order approving this Code. 
355 

ous occupation. Each member of the Industry shall furnish the Code 

Authority a list of such hazardous occupations, if so requested. 

ARTICLE IV- STATUTORY LABOR PROVISIONS 

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

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

or their agents, in the designation of such representatives, or in selforganization or in other concerted activities for the purpose of collective bargaining or other actual aid or protection. 

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

as a condition of employment to join any company union or to refrain 

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

choosing. 

3. Employers shall comply with the maximum hours of labor, 

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

or prescribed by the President. 

4. Labor agreements now in force between members and their 

employees shall be affected only by such provisions of this Code as 

may prescribe higher wages and shorter hours than are provided for 

in such agreements. 

5. Employees may be assigned to different kinds of work, but 

employers shall not reclassify employees or duties of occupations 

performed by employees so as to defeat the purpose of this Code. 

6. Every employer shall make reasonable provision for the safety 

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

their employment, by complying with the laws of the State in which 

such employer's plant is located. 

7. All employers shall post copies of that portion of this Code 

pertaining to hours and wages in conspicuous places accessible to 

employees. 

ARTICLE V-PARTICIPATION 

The expenses of administering the Code shall be borne by the 

members of the Industry. The Code Authority may, from time to 

time, cause to be made such assessments against the members of the 

Industry as the Code Authority shall deem proper, and such assessments shall be payable as such Code Authority shall specify. The 

assessments herein referred to shall be divided among the mem hers 

of the Industry according to the relation each member's dollar sales 

bear to the total dollar sales of the Industry for .the last preceding year. 

ARTICLE VI-ADMINISTUATION 

1. To further effectuate the policies of the Act and to supervise and 

enforce the provisions of this Code, a Code Authority, consisting of 

not more than nine (9) or less than seven (7) members, including the 

Chairman, no two (2) members of said Code Authority to be chosen 

from one company, shall be selected by the members of the Industry 

at a meeting thereof, after reasonable notice of said election has been 

sent to all members of the Industry, by a majority vote of those 

members of the Industry who are represented at the meeting, in person or by proxy, in number, and value of sales for the last preceding 

year. The members of the Code Authority shall serve for one year, 
356 

or until their successors shall have been chosen; and members of the 

Code Authority shall, by a majority vote, elect their own Chairman. 

The s~rviving members of the Code Authority shall fill any vacancy 

or vacancies occurring therein for the unexpired portion of the particular term. In addition to the foregoing, the ADMINISTRATOR 

may appoint from one (1) to three (3) meinbers of said Code Authority, without vote, and whose terms of office shall be so arranged that 

they do not expire concurrently. 

2. The Chairman of the Code Authority shall cause reasonable 

notice to be sent to all members of said Code Authority for all meetings 

thereof, specifying the time and place for holding the same. Each 

member of the Code Authority shall be entitled to one vote and a 

majority of the Code ·Authority shall be necessary to constitute a 

quorum for the transaction of business. The Code Authority shall 

select a Secretary and make such arrangements as may be necessary for administering this Code, subject to disapproval by the 

ADMINISTRATOR. 

3. Meetings of all the members of the Industry may be held from 

time to time for the purpose of considering and acting upon any 

matters relating to the administration of this Code. Upon request 

to the Code Authority, signed by any three members of the Industry, 

for an Industry meeting, the Code Authority shall forthwith call 

such meeting, by causing notice, not less than five (5) days in advance 

of such meeting, to be given to all other Industry members, specifying therein the purpose of the meeting and the time and place for 

holding the same. 

4. Each member of the Industry shall be entitled to one vote, either 

by company representative or duly authorized proxy, who would 

have power to act. The presence of not less than seven (7) members 

of the Industry shall be necessary for the holding of an Industry 

meeting. Provided, however, that a majority vote in numbers, and 

value of sales for the last preceding year of those members who are in 

attendance or who are so represented at any such meeting, shall be 

necessary for the determination of any question, but a lesser number 

may adjourn the meeting from time to time. In the event of an equal 

division upon any question, the Chairman shall cast the deciding vote. 

5. The Code Authority shall, subject to review by the ADl\1INISTRATOR, or when requested by the ADMINISTRATOR or his 

representative, cause to be obtained from the members of the Industry, 

statistical data and information in such form and manner as not to 

disclose the individual figures, data and information of the respective 

members, except to the ADMINISTRATOR, if required by him, or 

to such disinterested person, or persons, as may be designated by the 

Code Authority, and as may be necessary to enforce the provisions of 

this Code. 

The Code Authority shall make available to the AD1-fINISTRATOR such reports, data and information, in the manner herein 

specified, or as may be required by the ADMINISTRATOR, and 

will assist in keeping the ADMINISTRATOR fully advised, and 

confer with such representative of the ADMINISTRATOR from 

time to time as requested, to consider and study any recommendations presented on behalf of the ADMINISTRATOR or any member of the Industry regarding the operation, observance or administration of this Code. The Code Authority may delegate any of its 
357 

duties to such agents as it may appoint, which would not involve the 

disclosure of the individual data or information of the members of 

the Industry, or any information required to be treated confidentially 

as herein specified, except as otherwise herein permitted to be disclosed. The ADMINISTRATOR, or his representative, with the 

approval of the President, may enter into agreements with the Code 

Authority on behalf of the members of the Industry, with their consent and approval relating to matters affecting the Industry, if, in 

the judgment of the President, such agreement will aid in effectuating 

the policy of the ACT, which agreements may be made in accordance 

with parn,graph (a) of Section 4 of the ACT, and which do not conflict with clause (2) of sub-section (a) of Section 3 of the ACT. 

ARTICLE VII-REPORTS 

1. To provide for making available to the AD11INISTRATOR 

and members of the Industry, information to assist in further effectuating the policy of the ACT, each member of the Industry shall 

furnish, from time to time to the duly selected Secretary, reports, 

pertinent to the administration of this Code, properly certified when 

requested by the Code Authority, in such form and manner as herein, 

and as hereafter may be provided by the said Code Authority, subject 

to review by the ADMINISTRATOR, including the following: 

(a) Hours of Labor and Wages.-(l) Report showing hours of work 

and rates of wages. 

(b) Publicity of Price Lists.-(l) As uRed in this Article VII, the 

term "schedules" means and includes price schedules and discount 

sheets, resale price schedules, terms of payment, freight equalization 

points, and any allowances or conditions relating to or in any wise 

affecting the sale or resale of the products of this Industry. However, 

the term "resale" or "resales" as mentioned in this Article VII shall 

relate only to sales by those, who purchase from the members of this 

Industry, to others who buy to resell and who do not buy for use or 

consumption. 1 

(2) As soon as possible, after the effective date, as determined by 

the members of the Industry, and when so determined thereafter, all 

members shall file such schedules of prices with the Secretary from 

time to time, as and when made or issued, for immediate distribution 

to only those members of the Industry who manufacture and sell 

similar products. 1 

(3) Revised schedules covering said products may be so filed by 

any member of the Industry, for such immediate distribution from 

time to time thereafter to become effective upon the date or dates 

therein specified, but such revised schedules shall be filed with the 

Secretary five (5) business days in advance of the effective date or 

dates thereof. Any revised schedules subsequently filed by other 

members of the Industry during such five (5) busmess day period 

may be made effective on the same effective date of the revision previously filed, provided such subsequently revised schedules do not 

contain prices relatively lower than those in said previously filed 

revision,-otherwise the five day provision shall apply. Schedules 

raising prices shall not require the above five (5) day notice and shall 

be subject to immediate cancellation by notice to the Secretary at any 

1 See paragraph 2 of order approving this Code. 
358 

time _wit~ two (2) weeks of the date of filing of such schedules increaSing prices. 

(4) No member of the Industry shall sell, directly or indirectly, by 

any means whatsoever, any product of the Industry covered by the 

provisions of this Article VII, at a price lower or at a discount greater, 

or on more favorable terms or conditions than those provided in his 

current schedules. 

(5) The products of this Industry, to a very large degree, are resold 

and distributed by wholesalers, jobbers, and distributors to dealers, 

retailers and others, and the resale of such goods by such wholesalers, 

jobbers and/or distributors at a price or prices less than the manufacturers' schedules, would be in conflict with the principles of the 

open price provisions contained in this Article VII. Accordingly, 

members of this Industry may enter into agreements not to resell the 

products of this Industry at prices and upon terms, discounts or 

conditions which are less or more favorable to the purchasers thereof, 

than those contained in the schedules of the manufacturers, who may 

be parties to such agreements, in effect at the time of any such resale 

or resales. 1 

(6) Except as otherwise specified herein, all reports mentioned in 

this Article VII, shall be filed with and distributed by the Secretary 

at such times and in such form and manner as may be determined 

by the Code Authority. 

ARTICLE VIII 

The practices and methods as set forth in the following paragraphs 

numbered 1 to 12 inclusive, including the sub-paragraphs thereof, 

jn this Article VIII, are hereby designated as unfair methods of competition, and indulgence by any member of the Industry in any of the 

same shall be a violation of this Code. 

1. Interference with Existing Contracts.-To knowingly interfere 

with an existing contract with a third party for the sale and purchase 

of products of this Industry, or to induce, attempt to induce, or 

assist a party to break any such existing contract; 

2. Gratuities, Free Small Arms and Ammunition, Samples and Tour- , nament Program Advertising.-(a) To give prizes or contributions, or 

: supply free, small arms, loaded paper shells or metallic cartridges to 

; individual shooters, gun clubs or associations, rifle clubs or associations, · dealers or jobbers for the purpose of stimulating interest in and good 

: will for such products of any particular member of the Industry; 

(b) To quote prices lower than one's own current published resale 

prices on small arms or ammunition to individual shooters, gun clubs 

or associations, or rifle clubs or associations, for the purpose of stimulating interest in or good will for such products of any particular member 

of the Industry; 

(c) To pay, furnish, give, or grant to any shooter or shooters any 

salaries, compensation, benefit, small arms, ammunition or special 

prize money for winning of matches or tournaments for the purpose of 

mducing such shooter or shooters to use the small arms or ammunition 

of the particular manufacturer; 

(d) To give samples or free small arms and/or ammunition to 

jobbers, dealers or others, except to bona fide and well-known writers 

of arms and ammunition articles for their personal use only; a report 

of each such gift to be made to the Secretary at time of shipment; 

1 See paragraph 2 oi order atiproving this Code. 
359 

(e) To place directly or indirectly in any shooting program, any 

advertisement for or on behalf of any member of the Industry or 

representative thereof; 

(f) To fail to abide by and support the rules and regulations of any 

shooting association or any similar organization which defines the 

amateur status of a shooter, and in any way, directly or indirectly, 

or through a representative, supply, free of charge or at less than the 

particular member's own resale prices to dealers, any amateur shooter 

with any of said products, or anything of value contrary to the rules 

and regulations of any such association or organization; 

Provided nothing herein shall preclude bona fide employees of any 

member of the Industry from competing in tournaments, or from 

using any of such described products of his own employer therein, 

without ·personal payment therefor. 

3. Commercial Bribery.-No member of the Industry shall give, 

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

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

agent, or representative of another in relation to the business of the 

employer of such employee, the principal of such agent or the represented party, without the knowledge of such employer, principal or 

party. Commercial bribery provisions shall not be construed to 

prohibit free and general distribution of articles commonly used for 

advertising, for commercial bribery as hereinabove defined; 

4. Defamation of Competitors.-To make, cause or permit to be 

made, or published any false statement or misrepresentation of or 

concerning the business, policies, methods, or products of a competitor; 

5. Piracy of Trade Marks.-To imitate trade marks, trade names, 

slogans or other marks of identification, in which another has acquired 

good will, for the purpose and with the effect of misleading purchasers; 

6. False Advertising.-To make, cause, or permit to be made or 

published any false, untrue, or deceptive statement by way of advertising or otherwise; 

7. Misbranding.-To falsely mark or brand packages or products 

of this Industry, for the purpose or with the effect of misleading or 

deceiving purchasers or others with respect to quality, quantity, 

character, grade or substance thereof; 

8-. False Invoicing.-To withhold fron1 or insert in an invoice 

anything which would make the invoice a false record, wholly or in 

part, of the transaction in question, or make any arrangement which 

would contemplate payment or settlement contrary to the face of 

the in voice; 

9. Post-Date or Pre-Date Contract or Invoice.-To post-date or 

pre-date any contract or invoice covering products of this Industry; 

10. Guaranty Against Price Decline.-To guarantee against price 

decline except as the same may be limited to the decline of the particular member of the Industry, and such guaranty shall apply only to 

small arms purchased directly from the manufacturer in the same 

calendar year, and to ammunition purchased directly from the manufacturer during any twelve months commencing with March 1, and in 

each instance which are not delivered or which are in the hands of the 

purchaser and unsold; 

11. Consignments.-To make or enter into any agreement or contract, the effect of which will amount to the sale and/or delivery on 

consignment of any products of this Industry, except powder supplied 
360 

to ammunition companies, or to the lending of products for display 

purposes only; provided however, that no existing agreements of this 

nature shall be continued on and after the effective date of this Code; 

12. Secret Rebates.-To pay or allow secretly, rebates, refunds, 

commissions or discounts, whether in the form of money or otherwise, 

except such as are obligatory under existing agreements, but in no 

case shall any such agreement apply to any transactions or shipments 

on and after the effective date of this Code. 

ARTICLE IX 

1. If formal complaint has been made to the Secretary that any 

provision of this Code has been violated by any such member, the 

Code Authority shall cause the facts to be investigated, and to that 

end may cause such reasonable examination or audit as may be necessary, by a competent or disinterested person or persons mutually 

agreed upon by the Code Authority and such member against whom 

the complaint has been made, or by such person or persons nominated 

by the Code Authority and approved by the ADMINISTRATOR. 

PROVIDED, if it should appear that any reports or data called for 

by this Code were willfully made inaccurate or not filed by any such 

member when and as herein required, or that any such member had 

indulged in any trade practice in violation of this Code, the expenses 

of such verifying work shall be paid by the party so in default. 

2. Since any violation of the provisions of this Code will cause 

injury to members of the Industry and the amount of such injury 

would not be readily ascertainable, it is therefore agreed by and 

between all such members of the Industry who have so expressly, in 

writing or otherwise, assented to the provisions of this Article IX that 

each of such members who violates any provision of this Code shall 

pay to the Secretary, or such person as the Code Authority may 

designate, as and for liquidated damages, such sum as the Code 

Authority, or the ADMINISTRATOR, may determine, not exceeding, however, five hundred dollars ($500.00) for each violation, in 

addition to any other sums required to be paid by the provisions of 

this Code. Any and all moneys which may be paid to the Secretary 

as and for such liquidated damages shall be used for the expense of 

administering the Code, or otherwise, as may be determined by the 

Code Authority. 

ARTICLE X 

1. The Code Authority may investigate and inform the President 

or the ADMINISTRATOR on behalf of the Industry: 1st: As to the 

importation into the United States of commodities competitive with 

products of this Industry selling on a price basis which undersell said 

products of domestic manufacture; and 

2nd: As to the manufacture of articles competitive with products 

of this Industry by the Government of the United States at its 

various Arsenals under longer schedules of hours of labor and/or 

lower rates of pay than the standards o ~ hours and rates of pay established by this Code, and selling on a price basis which undersells 

such commodities by members of this Industry; and 

3rd: As to the extent to which such underselling of said imports 

and United States Government manufactured articles, as well as 
361 

the extent to which the schedule of hours of labor and rates of pay 

adopted and followed by the Government of the United States in 

the manufacture of such goods, renders ineffective or seriously 

interferes with the maintenance of ·this Code. 

2. The conditions as set forth in the preceding three subparagraphs, may be made the basis for complaint to the President or 

the AD11INISTRATOR on behalf of this Industry. 

3. Except as may be subsequently set forth in a specific or supplementary Export Code for the Industry, the provisions of this Code 

now or hereafter adopted with regard to prices, discounts, deductions, allowances, extras, commissions, or methods and/or terms of 

sale, are not to apply to direct export sales or to sales in course of 

export (i.e., sales destined ultimately for export) or to sales of 

materials used in the manufacture of products for export. 

ARTICLE XI 

Members of the Industry shall have the right to sell or otherwise 

dispose of machine guns or sub-machine guns or parts therefor only 

to the United States Government, any State, Territory, or possession 

of the United States, and political sub-division thereof and the District 

of Columbia; provided that with the consent of the United States 

Attorney General they may be disposed of to National, State banks 

or to corporations or other business associations having regularly 

organized police departments, and to manufacturers of ammunition 

in the United States for testing purposes; provided further, that such 

members shall have the right to sell machine or sub-machine guns or 

parts thereof for export under such rules and regulations as may be 

promulgated by the United States Secretary of State. 

ARTICLE XII 

During any emergency involving actual or possible National 

defense, the provisions of this Code establishing maximum hours of 

labor shall not apply to the manufacture of such of the products of 

this Industry as are demanded by the War and Navy Departments. 

ARTICLE XIII 

Such of the provisions of this Code as are not required to be included herein by the National Industrial Recovery Act may, with the 

approval of the ADMINISTRATOR, be modified or eliminate~ as 

changes in circumstances or experience may indicate. It is contemplated that from time to time supplementary provisions to this Code 

or additional Codes will be submitted for approval of the ADMINISTRATOR, to prevent unfair competition in price, and other unfair 

and destructive competitive practices, and to effectuate the other 

purposes and policies of Title I of the ACT. Such supplemental 

provisions or additional Codes when approved by the ADMINISTRATOR shall have the same force and effect as any other provisions 

of this Code. 

ARTICLE XIV 

If any employer in the Industry is also an employer in any other 

Industry, the provisions of this Code shall apply to and affect only 
362 

that part of the business of such employer which is included in this 

Code. 

ARTICLE xv 

The President, in accordance with the provisions of subsection (b) 

of Section 10 of the National Industrial Recovery Act, may from time 

to time, cancel or modify any order, approval license, rule or regulation issued under Title I of said ACT. 

ARTICLE XVI 

By presenting this Code, those assenting hereto are not thereby 

waiving any of tiheir constitutional rights which might be infringed 

by any of the provisions of the National Industrial Recovery Act. 2 

ARTICLE XVII 

Within each State members of the Industry shall comply with 

any laws of such State imposing more stringent requirements upon 

employers than•as set forth in this Code relating to hours of work, 

wages, or age of employees. 

ARTICLE XVIII 

By presenting this Code, the members of the Industry do not 

thereby consent to any modification thereof, and they hereby reserve 

the right to object individually or jointly to any such modification. 2 

ARTICLE XIX 

No employer shall use any subterfuge to frustrate the spirit and 

intent of this Code. 

ARTICLE xx 

Any action taken by the Code Authority or other group within 

the Industry for the purpose of making effective provisions of this 

Code may be submitted to the ADMINISTRATOR for approvai, 

and shall, in any case, be subject to the disapproval of the ADMINISTRATOR. 

ARTICLE XXI 

Nothing contained in this Code shall constitute the members of 

the Code Authority partners for any purpose. Nor shall any member 

of the Code Authority be liable in any manner to anyone for any act of 

any other member, officer, agent, or employee of the Code Authority. 

Nor shall any member of the Code Authority exercising reasonable 

diligence in the conduct of his duties hereunder, be liable to anyone 

for any action, or omission to act, under this Code, except for his 

own wilful misfeasance, or nonfeasance. 

2 Deleted as per paragraph 2 of order approving this Code. 
363 

ARTICLE XXII 

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

against small enterprises. 

ARTICLE XXIII 

The effective date of this Code shall be 12.01 A.M. the second 

Monday after this Code shall have been approved by the President. 

Approved Code No. 354. 

Registry No. 1109-1-01. 

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