Approved Code No. 239 Registry No. 312-04 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR TUE 

PORCELAIN BREAKFAST 

FURNITURE ASSEMBLING INDUSTRY 

AS APPROVED ON JANUARY 30, 1934 

Wt DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICB 

WASHINGTON: 1934 

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

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

frlnting Office, Washington, D.C., and by district offices of t he 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 Cu tomhouse. 

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. D tr it, Mi ·h. : 01 Fir. t :National Bank Building. Houston, Tex.: Chamber of Commerce Building. Indianapoli~, Ind. : Chamber of Commerce Building. J acksonville, 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 Fed era 1 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. 

Philad lphia, Pa. : 422 Comm rcial Tru t Buildin 

Pittsburgh, Pa. : Chamber of Commerce Building. 

Portland, Oreg. : 215 ew P o t Offi Building. St. Louis, Mo.: 506 OliYe Street . San F rancisco, Calif. : 310 Cu tombouse. 

Seattle, Wa h.: 809 Federal Offi e Bu ilding. 
Approved Code No. 239 

CODE OF FAIR COMPETITION 

FOR THE 

PORCELAIN BREAKFAST FURNITURE 

ASSEMBLING INDUSTRY 

As Approved on January 30, 1934 

ORDER 

APPROVING CODE OF FAIR COMPETITION 

FOR THE 

P·ORCELAIN BREAKFAST FURNITURE 

ASSEMBLING 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 Porcelain Breakfast Furniture Assembling 

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 : 

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

States, I, Hugh S. Johnson, Administrator for Ind'ustrial 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 7-B, section 11, insofar as they prescribe a 

waiting period between the filing with the Code Authority and the 

36712°-313-151-34 (587) 
588 

effective date of revi ed price li. t or red · d term and conditions 

of sale be and th y are hereby . ta e 1 pen ling my furth r Order 

either within a period of ixty lay from th eff ectfr elate of this 

Code or after the completion f a study of pen I ric a · ciations 

now being conducted by the N ationa] R cover cb ini:-:.tration. 

Approval recomnwn led : 

w. A. H. RRIMAN' 

H H .~,. J OIL~ 'O_-

Administndor fo1· lndu ·trial R ecov ry. 

Division AdJmini trator. 

w .ASHINGTON, D.C., 

January 30, 1934. 
THE PRESIDENT, 

The White House. 

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

Porcelain Breakfast Furniture Assembling Industry, the public 

hearing having been held in Washington, on November 16, 1933, in 

accordance with the provisions of the National Industrial Recovery 

Act. 

PROVISIONS FOR HOURS AND WAGES 

A basic forty ( 40) hour week is established by this Code. A tolerance of five ( 5) hours a week averaged over each eight (8) weeks' 

period is allowed :for office employees, while an eight (8) hour tolerance is permitted :for factory employees, but all :factory overtime 

in excess of eight ( 8) hours a day must be paid for at not less than 

one and one half (11⁄2) times the regular hourly rate. No employee 

is permitted to work more than six (6) days in any seven (7) day 

period. 

This Code establishes a minimum rate of · pay of forty ( 40) cents 

per hour in the North and thirty-six (36) cents in the South, but 

practically the entire production of this Industry is in the North. 

Apprentices not to exceed five (5) percent of the total number o:f 

factory workers may be paid eighty ( 80) percent of the minimum 

rate for a period not to exceed four ( 4) months. 

OHILD LABOR 

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

the Industry nor anyone under eighteen (18) years of age at occupations or operations hazardous in nature or detrimental to health. 

EOONOMIC EFFECTS OF THE CODE 

The report prepared by the Division of Economic Research and 

Planning, based upon data obtained :from the Industry by questionnaires, presents the following facts: 

(a) Since 1928 the volume of sales of Porcelain Breakfast Furniture declined approximately seventy-two (72) percent. 

(b) Factory employment declined nearly thirty (30) percent from 

June 1929, to June 1933. 

( c) In June 1929, the average hours worked by factory employees 

were 53.7 per week. 

(d) Average weekly wages of factory wage earners declined from 

$21.47 in 1929 to $14.74 for the first quarter of 1933. 

(e) Under this Code, factory employment will approach the 1929 

level. An increase of approximately twenty (20) percent occurred 

:from June to October 1933, under the President's Reemployment 

Agreement, and a further increase is assured when all the members 

of this Industry become bound by this Code. 

(589) 
590 

(f) The Co le provi ion limitino· the work-week to an average of 

fort) ( 40) hours will ffect a reduction of twent r (20) per ent or 

more from the average hour worked prior to the Pre ident' Reemployment Agreement. 

(g) Averao-e weekly wag of fa ·tor) em.ployee increas d approximately fifteen (15) per ent in the third quarter of 1933 over 

the fir t quarter under the Pre ident s Reemployment greement,-- and a further in 1·ease may be expected un l r thi ode. The hourly 

wage rates paid to , ev nty-five (75) per cent of th work r in this 

Indu try will be increa ed by the Code. 

(h) The total pa) roll of this Indu try wa in rea. cl thirty-five 

(35) percent by the Pre. ident's Re mploym nt Agre m n . 

The Assfr>iant Deputy Ad1ninistrator in hi final r port to me on 

said Code having found as herein et forth and on the ba ·i of all 

the proceedings in this matter : 

I find that: 

(a) Said Code is well designed to pron1ote the policie and purposes of Title I of the National Industrial Recovery A t, including 

removal of obstructions to the free flow of inter tate 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 the trade groups, 

by inducing and maintaining united action of labor and management 

under ad€quate governmental sanctions and supervi ion, by liminating unfair competitive practices, by promoting the fulle t pos ible 

utilization of the present productiv capacity of indu trie by avoiding un lue restriction of production ( except a may b temporarily 

required) by increasing the consumption of indn ... trial and ao-ricultural products thr ugh incr a ing purcha. ing pow r by reducing 

and relievino· unemployment, by iinpro ing standard f labor and 

by oth€rwis rehabilitating indu try. 

(b) aid Indu tr. r norn1ally empl y not mor than -o.000 ml loyee. · and i not cla ified b me a a maj r inclu ... tr. r. 

( ) The ode a aJ?pro, ed complie in all r , p ts " ·ith th pertinent provi ions of said Title f ail \.ct. in ln ling , ith ut limitation "'nbse ti n ( a of e ti n 3 ub e ti n ( a of •,.. ti n 7 and 

ub e ion (b) o:£ tion 10 th re :£ · and tha th appli ·ant a ~ iation i an in lu trial a. iati n trul ' r pr · ntatiY o th af r ai 

ndu try· an l that nicl a. :o iati n imr . n i1wq11itable r . tri - tion n a lm.i. ·i n tom mbcr.hip th rein. 

( cl) Th od is n l ign 1 to nn l "·ill n t 1wn11it m 1101 li 

or m nop Ii ti pra j e . 

( ) Th o 1 i · n <le. i;nr 1 to :11 l will not limin·,t 

mall nt rpri e. , n l fill n t op rn t t lis rirnin:1 n~am them. 

(f) Th · engag l in h r st ls f th · n mi· pro· . h,n· 

been d prive 1 of th righ b' h ar l 1 ri rt. a Pl roval f .·, id 

F r the:-; l'<'n:-.on \ th r<:'f r , I hnv<' a J pre Y cl hi. d . R . p ·tfu ll)r 

JA ''TARY. 1(' ' . . 

Ih ill' 
CODE OF FAIR COMPETITION 

FOR THE 

PORCELAIN BREAKFAST FURNITURE ASSEMBLING 

INDUSTRY 

ARTICLE I-PURPOSE 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are established a a Code 1)f 

Fair Competition by the Porcelain Breakfast Furniture As embling 

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

of fair competition for the Porcelain Breakfast Fun1iture Assembling Industry and shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. Porcelain Breakfast Furniture Assembling I ndustry.- The term "Porcelain Breakfast Furniture Asse1nbling Industry" 

as defined herein, means the assembling and finishing of wholly 

manufactured wood parts consisting of turned legs, stretchers, table 

bases and their parts porcelain enamelled tops, and chairs. These 

parts are assembled, finished, and processed to complete a porcelain 

breakfast furniture set. 

SEc. 2. Employees.-The term" employee" as used herein includes 

anyone, except a member of the industry, engaged in the Porcelain 

Breakfast Furniture Assembling Industry in any capacity receiving 

compensation for his services, irrespective of the nature or method of 

payment of such compensation. 

SEc. 3. Employer.-The term " employer" as used herein includes 

anyone by whom any such employee is compensated or employed. 

SEc. 4. Members of the Ind1J;Stry.-The term "member of the 

Industry " includes anyone engaged in the Porcelain Breakfast 

Furniture Assembling Industry as above defined, either as an employer or on his own behalf. 

SEc. 5. President, Act, am,d Administrator.-The terms "President", "Act", and "Administrator" as used herein shall mean, 

respectively, the President of the United States, Title I of the 

National Industrial Re~overy Act, and the Administrator for Industrial Recovery. 

SEc. 6. Pull-backs.-The term" pull-backs" as used herein includes 

such furniture manufactured . by members as is returned by the 

consumer to the retailer after being in use. 

SEc. 7. Code Authority.-The term "Code Authority" as used 

herein is the Agency hereinafter set up to administer the provisions 

of this Code, with the approval of the Administrator. 

(591) 
592 

SEc. 8. Association.-The term "A ociation ", as used herein, 

means National Breakfast Furniture Manufacturers As ociation, 

Inc., a trade asso iation. 

EC. 9. ExeC'Utive sec'retwy.-The term " Exe utiYe e retary as 

u. ed herein, mean the Exe utiv-e Secretary of the A ociation. 

SEc. 10. Eff'ective date.-Th t rm "effective date ' a used herein 

means the econ l Monday after this Co le hall haYe been approved 

by the Pre ident. 

ARTICLE III-HouR 

SECTION 1. No offi ·e mployee hall be permitt l to , ork in ex e s 

of an average of forty (40) hour per week during ach eight (8) 

week ' peri cl, but not more than forly-five (45) hour. in any one 

week. 

SEC. 2. o other worker hall be permitted to work in exce s of 

forty (40) hours in any one week or eight (8) hours in any twentyfour (24) hour period, exoopt as hereinafter otherwise provided. 

SEc. 3. Employee engaged in the capacity of designer , executives, 

or upervi ors who receive $35.00 per week or more, and outside ale - men, are excepted from the provisions of Section 1 and 2 of this 

Arlicle. 

SEC. 4. A tolerance of 10% in the hour pecified above hall be 

permitted for fir.en1en, engineers, emergency maintenance and repair 

crews, and shipping and delivery department crews. 

SEc. 5. The hours of work for night watchmen and night fir men 

shall not exceed a total of eighty-five (85) hours in ea h tw w k 

period, or an average of forty-two and one half ( 421⁄2) hour per 

week in each two weeks period. 

SEC. 6. Truck drivers operating on trip normally r quirino- m re 

than eight (8) h ur , except in cases of unavoidable dela du to 

br akdown or accident, shall be ubject to hours f labor of a ode 

hereaft r to be adopted for the trucking industry. 

SE . 7. The maximum hours pre cribed in Section 2 of thi Arlicle 

shall not apply in case f sea onal or peak p ration provided 

how v r, that no employee engaged in such operation hall be per1nitted to work in excess of forty-eight ( 4 ) hours in any n w k 

nor in xc . of forl. ( 40) hour per w k av rao- d ov r an i ht 

( ) n e uti week period. 

E . 11 ov r-time , ork in x f io-h t ( h ur p r <la 

or fort r (40) hour p r w k . hall b pail for a n t le than ne 

and on half ( 11⁄2) tim the reo-ular h url rat . EC. 9. mpl hall b p rmitt l to w rk m r than 1.,~ 

(6) clay in an (7) la p ri l. 

AnTt 'LE IY-,Y E 
593 

guaranteed whether compensation is based on time, piecework, or 

incentive basis. 

SEo. 2. Hourly wage rates for employees receiving more than the 

minimum herein perscribed shall be adjusted to preserve differentials 

existing on June 16, 1933, and in no case shall wages be reduced 

notwithstanding any reduction in hours. 

Within thirty (30) days after this Code becomes effective, employers shall report to the Code Authority action taken by them 

si~c~ July 1, 1933, with respect to adjustment of wages above the 

mlillIIl um. 

SEc. 3. An apprentice may be paid not less than 80% of the minimum wages specified in Section 1 of this Article for a period not 

exceeding a total of :four (4) months. This apprenticeship period 

may be served only once during his lifetime. The number of such 

apprentices shall not exceed 5% of the total number of :factory 

workers, provided that each employer may employ one such apprentice. 

ARTICLE V-GENERAL LABOR PROVISIONS 

SECTION 1. No person under 16 years of age shall be employed in 

the Industry nor anyone under 18 years of age at operations or 

occupations hazardous in nature or detrimental to health. 

The Code Authority shall submit to the Administrator before 

March 1, 1934, a list of such occupations. In any State an employer 

shall be deemed to have complied with this provision if he shall have 

on file a certificate duly issued by the Authority empowered to issue 

employment certificates showing that the employee is of the required 

age. 

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

and shall be free from the interference, restraint, or coercion of 

employers of labor, or their agents, in the designation of such representatives or in self-organization or in other concerted activities 

for the purpose of collective bargaining or other mutual aid or 

protection. 

(b) 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, and 

(c) Employers shall comply with the maximum hours of labor, 

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

(d) Within each State this Code shall not supersede any laws of 

such State imposing more stringent requirements on employers regulating age of employees, wages, hours of work, or health, fire, or 

general working conditions than under this Code. 

SEC. 3. Employers shall not reclassify employees or duties of 

occupations performed by employees o as to defeat the purpose of 

the Act or of this Code. 

SEC. 4. Posting Oode.-Each employer shall post in conspicuous 

places available to employees full copies of this Code. 
594 

ARTI LE VI-LABELS 

SECTION 1. All furniture manufactured or sold by" members of the 

Indu try " shall bear and have affixed thereto an " RA L abel " 

which should remain attached to each piece of breakfast furniture 

when it leaves the factory. Such labels shall bear the registration 

number pecially a ign d to ea h manufacturer in the I ndustry 

by the Code Authority. The prfrilege of using such label shall be 

granted and such lab ls shall be i ued to any manufacturer fr01n 

time to time engaged in the Indu try upon application ther for to 

the Code Authority accompanied by a . tatement of compli nee with 

the tandard of operation pre cribed by this Code. 

"~!embers of the Industry' hall be entitled to obtain and u e 

such labels if they omply with the provi ions of thi od . 

ARTICLE VII-OR ,ANIZATIO , PowER , AND D TIE OF THE ConE 

... UTHORITY 

A. RG NIZATION 

of the ct a Code 

dmini trator 

1n th 

ntitl 1 t parti ·iJl'll 

.... nth rit ' an 1 t I ar i ·i-
595 

pate in the election of the member thereof by a entinO' to and 

complying "TT"ith the requiremen of thi ode and lLtainino- their 

rea onable hare of the e~nse of it ad.min' tration. The rea onable hare o:f th expen e of administration hall be determined by 

the ode Authority, ubject to renew by the .Admini trator, on the 

ba i of ,olume of bu ine and/ or such other factor~ a may be 

deemed equitable to be ta.ken into considera ion. 

EC. 6. There hall be establi hed by the - dmini trator, a 

.1 T ational Industrial Relations Board for the Indu try, consisting of 

an equal number of representatives of employe and employee to 

adjust all matter in the ode relating to labor. \\here a majority 

agreement cannot be reached the Board hall el ct an impartial 

chairman to render a decision. The creation and functioning of 

the e Board including the election of repre entatiT"e~ of employee 

shall be in accordance "TT"ith ection "" of the Act. If no truly repreentative labor organization exi ts the employee member of such 

Board shall be cho en by the Labor Advisory Board of the .... T ational 

Industrial RecoT"er .Administration. The emplo er repre entatives 

shall be cho en b the Code ... uthorit . 'I'he Ind trial Relations 

Board may e tabli h uch ub idiar~ ~ agenc1e constituted in like 

manner a it find nece ary. 

B. PO"\\~ A.XD D"CTIE OF THE CODE A. UTHORITY 

SE nox 1. The ode Authorit hall have the following duties 

and po"TT"er to the extent permitted by the Act. If the .A dmini trator hall determine tha any action of the Code Authority or any 

agency thereof is unfair or unjust or contrary to the public interest, 

the .A.dmini trator may require that ..,uch action be su pended for a 

period of not to exceed thirty day to afford an opportunity for 

investigation of he merits of such action and nffther c idera ion 

by uch Code Authority or agency pending final action which _hall 

be taken only upon approval by the .Administrator. 

EC. 2. To e tabli h appropriate machinery for th i uance f 

labels in accordance -with Article ,~1 of thi ode -with the appro\·al 

of the .Admini trator. 

EC. 3. To pre cribe and approT"e a tandard y tern of co t accounting. which when approT"ed by the Adniinistrator hall become the 

uniform y tern of co accounting for the Ind1 try, and all member of he Indu tr hall thereafter u e a tern of co t accounting 

-which conform to the principle of and i at lea a detailed and 

complete as uch uniform y tem. The ode Au hority however, 

may permit uch exception or ,ariations a it deems nece ~ar to 

meet the requirement of a particular ituation. 

EC. 4. To inT"e tigate and inform the Ad.mini rator on behalf 

of the Indu try a to the importation of competitive article into 

the nited tates in ub tantial quantitie or increa ing ratio to 

dome tic production on ..,uch tern or under uch conditions as to 

render ineffective or eriou 1 r to endanger the maintenance of this 

Code and a~ an agen y for making complaint to the Pre~ident on 

behalf of the Indu:::tr · under the pro,i ion of the A.ct, with re pect 

thereto. 
596 

SEc. 5. The Code Authority may from time to time pre ent to the 

Administrator recommendations based on conditions in the Industry 

as they may develop which will tend to effect the operation of the 

provisions of this Code and the policy of th Act and in particular 

aloncr the following lines: 

( a) Reports to adniinutrator.-Recommendations as to the requirements by the Administrator of such further reports of per on 

engaged in the Industry of stati tical information and keeping of 

uniform accounts as may be required to s cure the proper ob ervances of the Code and promote the proper balancing of production and consumption and the tabilization of the Indu try and 

employment. 

(b) Se1·vice bwreau.-Recommendations for the etting up of a 

Service Bureau for the Industry for accounting credit, and other 

purpo es, to aid members of the Industry in meeting the conditions 

of the emergency and the requirements of this Code. 

( c) Pr01note stabilization.-Recommendations for the making of 

requirements as to trade practices by per ons engaged in th Indu -

try as to method and conditions of trading, and the naming and 

publication of prices which may be appropriate to avoid di crimination, to promote the stabilization of the Indu try. 

( d) Dutress mer·chandise.-Recommendabon. for r gulating the 

disposal of distress merchandise in a way to ecure the protection of 

the owners and to promote sound and stable conditions in the 

Indu try. 

( e) Dealiri g with inequalities that endanger indiusfry and e1n- ploy11ient.-Recommendations for dealing with any inequali i that 

may otherwise arise to endanger the stability of the Indu try and 

of production and employment. · 

(f) I nvestigation of violations.-The Code Authority i h r by 

appointed as an emergency committee for thi ode of Fair omp -

titian and subject to review and di approval of the Admini trat r i 

empowered to investigate whether the pro, i ions of thi od ar 

being ob rv d, to make complaints con ernincr all cr d violation 

cooperate with the Admini trator of the t; t I rop e additi n 

modifi ation , or revi ion f thi Code and cr nerall t perf rm u h 

other a ts as may be reasonably ne ar and pr per put th pr -

vi ion into effect and a compli h th obj t and purp of th 

Act. In the v nt u h commi t hall find th Rul f 1 air 

petiti n, or any pr vi ion of thi od hav b n i lat th 

lati n hall b r ported to th od u h ri t f r u h a i n a h 

d n1 I roper in ac ordan with thi od in lu lin in a1 pr I riat 

a r port to th ational R mini trati n r , k appropria t p to in titut li n. Ir c hncr r lan wi h 

law or a.n th r a Ir priai 1 o-al pr din r in th 

t. 

E. 6. 

trator af r u h n 

th am f re an . 7. Th l nth ri . 

... dmini rat r in makin inY ti 

ob rvan f n f h pr 
597 

or on- complaint by any person affected, subject to review and disapproval of the Administrator. 

SEc. 8. With a view to keeping the President informed as to the 

observance or nonobservance of this Code of Fair Competition. and 

as to whether the Industry is taking appropriate steps to effectuate 

the declared policy of the Act, each member of the Industry shall furnish duly certified reports in substance as follows, and in such form 

as may be provided and at such intervals as the Code Authority may 

prescribe, subject to review and disapproval of the Administrator. 

(a) l,V ages and hours of labor.-Returns every 4 weeks showing 

actual hours worked by the various occupational groups of employees and minimum weekly rates of wages. 

(b) Machinery data.-Returns every 4 weeks showing number of 

machines operating each week, the number of shifts and the total 

number of machine hours each week. 

( c) Reports of production, sales, stocks, mnd orders.-Monthly 

reports showing production in terms of the commonly u ed unit 

(i.e.) breakfast furniture, stocks on hand, both sold and unsold, 

stated in the same terms. 

SEc. 9. The Executive Secretary and/or the Association is hereby 

constituted the agency to collect and receive, as confidential information, such individual members' reports. Such reports shall be 

filed by the Secretary for reference in such f orin as to eliminate 

identification of any individual member, and shall be ava.ilable for 

the inspect.ion only by the Secretary or the Administrator or their 

duly authorized representatives. The Executive Secretary shall 

furnish the Code Authority with the summaries of the data and 

statistics he compiles from the members' individual reports. 

SEc. 10. In addition to the information required to be submitted 

by the Code Authority, there shall be furnished to Government 

Agencies such statistical information as the Administrator may deem 

necessary for the purposes recited in Section 3 (a) of the Act to such 

Federal and State agencies as the Administrator may designate; nor 

shall anything in any code, agreement, or license relieve any person 

of any existing obligation to furnish reports to Government agencies. 

SEC. 11. Each member shall, within ten (10) days after the effective date of this Code, publish to its customers and file with the Secretary and/ or the Association each and every price list, duly certified 

by a proper executive, showing all prices of their respecti-ve merchandise assembled or processed in the Industry, and all terms. Each of 

the first lists of prices and terms of sale filed by any men1bers, as 

above provided, shall take effect on the date of filing thereof. None 

of the prices and terms in any list filed by any members shall be 

changed except by the filing of such member with the Secretary 

and/ or the Association of a new list of prices and terms, which shall 

become effective five ( 5) days after the date on which such new price 

list and terms of sale shall have been filed. The failure of any manufacturer to adhere to his prices and terms of sales filed, as herein provided, and any other deviation from the provisions of this Section 

shall be an unfair method of competition.* 

• See paragraph 2 of order approving this Code. 
598 

SEc. 12. Members of the Industry shall report on the tenth (10th) 

day of each month to the Code Authority a list of close-outs and second accumulated in the preceding month, and shall file with the 

Code Authority its price list and terms of such seconds and close-outs 

in accordance with the provisions as herein provided in Section 10 of 

Article VII. The member may sell such seconds or close-outs at any 

time at his own price as filed with the Code Authority, provided, he 

shall distinctly mark his products as Close-Outs or Seconds, and shall 

thereafter furni h the name and addres es of the purchaser of closeouts or econd to the Code Authority. 

ARTICLE VIII-TRADE PRACTICE RULES 

The following practices constitute unfair methods of competition 

and are prohibited: 

RULE 1. False Marking or Branding.-The fal e marking or brand- ing of any product of the Industry which has the tendency to mi 1 ad 

or deceive customers or prospective cu tomers, whether a to the 

grade, quality, quantity, substance, character, nature ori ()'in, ize finish, or preparation of any product of the Industry, or otherwi e. 

RULE 2. ]Jfis'representation or False or lliisleading Advertising.-

The making or cau ing or permitting to be made or publi hed any 

materially false, inaccurate, or deceptive statement by way of adv rtisement or otherwi e, whether concerning the rade, quality, quantity, substance, character, nature, origin, size, fini h, r preparation 

of any product of the Industry, or the credit term , values, policie 

or services of any member of the Industry, or otherwi e, having th 

tendency or capacity to mi lead or deceive cu tomer or pro pective 

cu tomers. 

RULE 3. C 01nniercial B ribery.-N o member of the Indu try hall 

give, permit to be given, or directly offer to give, an thing of value 

for the purpo e of influencing or rewarding the action of any mployee, agent, or repre entative of another in relation to th bu ine 

of the employer of such employee, the principal of uch ao· nt or 

the repre ented party, without the knowl d of uch mploy r 

principal, or party. omm rcial brib ry pro 1 1 n hall not b 

con tru d to prohibit fre and g n ral di tribution of arti le c m- monly u ed for ad erti ing xcept o far a u h ar i 1 ar a tuall 

u d for c nunercial bribery a hereinabo d fin d. 

R LE . lnte1·f Tence with Corztractual R elations.- I li i u 1 T 

indu in or attemptinO' to indu th br h f an ~ i tin ral r 

wri t n c ntr, t b tw n a mp ti r and hi u t m r r 

of uppl r int rf ring with or b tru ino· th p rf rm, n 

any uch n ra tual du i r rYi 

R E c1· t Rebat .-'Ih e r 

rebat . r fun l mm1 .:1 n. T di 

in th f rm of m n r r th rwi 

pur ha of I e i"al 

pur I a n lily t rm. and 

R E r( ing of ~1·ize 

1 nz 1 r m1um 

r an in lu I 1 

n1i r I r n ati n 
599 

or any article whatsoever, included in the purchase of breakfast 

furniture, at an unreasonable price, for the purpo e of evading or -

defeatino· the terms of this Code. 

RULE 7. Defamation.-The defamation of competitor by falsely 

imputing to them dishonorable conduct, inability to perforn1 contracts, questionable credit standing, or by other false representations 

or by the disparagement of the grade or quality of their goods. 

RULE 8. Tlvreats of Litigation.-The publishing or circularizing of 

.threats of suits for infringement of patents or trade marks or of 

any other legal proceedings not in good :faith and without bringing 

such suits or proceedings within a reasonable time, with the tendency 

or effect of harassing competitors or intimidating their customers. 

RULE 9. Ewpionage of 001npetitors.-Securing confidential information about a competitor's busines by a false or misleading statement or representation, by a false impersonation of one in authority, 

by bribery, or by any other unfair method or any other ecret means 

'"' here the effect may be to hinder or title competition. . RULE 10. Piracy of trade 1narks and trade names.-The imitation 

of a trade mark, trade name, slogan, or the other marks of identification o:f competitors, having the tendency and capacity to mi lead 

or deceive. 

RULE 11. Terrns of settle1nent.-Selling on more favorable terms 

than two ( 2 % ) percent in thirty ( 30 _) days, net sixty ( 60) days from 

date of shipment; provided, however, that where the purchaser because of departmental accounting practices requires a cash discount 

o:f five ( 5%) percent and the member consents to it, invoices shall 

be increased sufficiently to permit such discount, and in every such 

case the net return of the member shall not be less than it would 

have been had the cash discount been two (2%) percent instead of 

five ( 5%) percent. Where it is the practice of a buyer to make 

monthly settlement of all invoices, a member may allow the deduction of the cash discount if payment is made not later than the 

fifteenth (15) of the calendar month following dates of shipment. 

Credit terms shall be included in the statement and billhead of each 

member of the Industry. 

RULE 12. Oonsign1nent.-The shipping of goods on consignment or 

memorandum either directly or indirectly, except under circumstances to be defined by the Code Authority where peculiar circumstances in the Industry require the practice. 

RULE 13. Returns.-( a) There shall be no returns of porcelain 

breakfast furniture except for factory defects, and except for such 

merchandise not shipped within the specified time in full compliance 

with the specifications and terms of the order. The above exception 

shall apply only to claims and returns by customers made within fif~ 

teen ( 15) days from the receipt of goods by the1n. 

(b) Merchandise defective in manufacturing or assembling not 

discovered or readily ascertainable within the period oi fifteen ( 15) 

days from the receipt of goods by customers may be returned and 

accepted for credit by members, providing, however, the member of 

the Code Authority appointed by the Administrator shall specify 

the time and place for a hearing between member of the Industry 

and customer to determine whether such defect was due to faulti 

manufacturing or assembling. 
600 

1111111111@111i1~iim 1111111111!1t1lmm1111111111 

3 1262 08850 4 765 

RULE 14. Pull-backs.-There shall be no allowances on "PullBacks " of breakfast furniture, nor shall they be accepted for credit 

by any member of the Industry, except as provided for in Rule 13 

of this Article. 

RULE 15. Other unfair p1·actices.-N othing in this Code shall limit 

the effect of any adjudication by the Courts or holding by the Federal Trade Commission on complaint, finding, and order, that any 

practice or method is unfair, providing that such adjudication or 

holding is not inconsistent with any provision of the Act. 

ARTICLE IX- MoorFICATIO s 

SECTION 1. (a) This Code and all the provisions ther of ar 

expre sly made subject to the right of the President, in ace rdance 

with the provisions of subsection (b) of Section 10 of the National 

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

any order, approval, licen e, rule, or r gulation issued under Title I 

of said Act and pecifically, but without limitation, to the right f 

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

conditions impo ed by him upon his approval thereof. 

(b) This Code, except as to provisions r quired by th t, ma. 

be modified on the ba is of experience or changes in circum tanc , such modification to be based upon application to the Admini trator 

and such notice of hearing as he shall specify, and to becmne effective 

on approval of the Admini trator.- SEc. 2. Such of the provisions of this Code as are not r quired 

to be included therein by the Act may, with the approval of the 

Admini trator, be modified or eli'mina~ed if it appear that the public 

needs are not being served thereby .and as changes in circum tances 

or any experience may indicate. They hall remain in effect unl s 

and until so modified or eliminated until th expiration of the ct. 

It is contemplated that from time to time suppl mentary provi ion 

to thi Code or additional Cod s will be submitted for the appro al 

of the President to prevent unfair comp tition in pri e and oth r 

unfair purposes and to _prom te the polici s of Title I of the t 

and which hall not conflict with the provision thereof. 

ARTI LE X-Thfo .. P LIE 

o prov1 1 n of thi ode hall be o appli d a to I rmit m n p - lie r monopoli tic practic , r to liminat oppr or di riminate 

agajn t ·mall nt q ri 

0