Approved Code No. 110 Registry No. 699-03 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

HARDWOOD DISTILLATION 

INDUSTRY 

AS APPROVED ON NOVEMBER 10, 1933 

I ' 

'~ ' ~ -----

BY 

PRESIDENT ROOSEVELT 

WE DO OUR PART 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

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(II) 
EXECUTIVE ORDER 

CoDE oF FAIR CoMPETITION FOR THE HARDWOOD DisTILLATION 

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 my approval of a Code 

of Fair Competition for the Hardwood Distillation Industry, and 

hearings having been held thereon and the Administrator having 

rendered his report containing an analysis of the said code of fair 

c01npetition together with his recommendations and findings with 

respect thereto, and the Administrator having found that the said 

code of fair competition complies in all respects with the pertinent 

provisions of title I of said act and that the requirements of clauses 

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

met: 

NOvV, THEREFORE, I , Franklin D. Roosevelt, President of the 

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

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

otherwise, do adopt and approve the report, recommendations, and 

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

fair competition be and is hereby approved. 

FRANKLIN D. ROOSEVELT. 

THE vV HITE HousE, 

N o·ve1nber 10, 1933. 

Approval recommended: · 

HuGHS. JoHNSON, 

.Administ1·ator. 

20625°----188-197----33 

(III) 
The PRE IDEN'r, 

The White House. 

Sm: This is1 a report of the hearing on the Code of Fair Competition for the Hardwood Distillation Indu try, conducted in "\Vashington on the third of October 1933, in accordance with the provi ions 

of the National Industrial Recovery Act. 

ECONOMIC EFFECT OF THE ODE 

The Industry covered by this Code is one of subjecting to di tillation either hardwood unfit for lumbering or the byproducts of 

lumbering activities in the harch1ood forest . The re ult. of this 

distillation are charcoal, acetate product , and methanol. A large 

part of the labor involved in the indu try is enga<Yed in the cutting 

up of hardwood into suitable ize for the r etort · and cartin(Y thi. 

woorl to the retorts. A a whole, the employee , other than those 

engaged in chemical control at the retort are not kill d fa tory 

workers. 

The two products oth r than charc al are hemi als comp ting 

with chemical made by the chemical in hLtry, n. ually a b) I roducts. The eo ting of byproduct· come under the a<>ne ral rule of 

joint costs and as a con equence, the methanol an l a tate proclu ts 

of the hard"\\ood eli tillation industry are subje ted to evere competition by the synthetic product . I t i b liev l that any riou 

ri e in co ts in thi indu try would serve still further to nrtail valurn of product. A con iderable proportion of the la r in thi 

indu try i engag d in operation in the wood imilar t tho e un r 

the Lumber Code. The provi ions of the Har lwo cl i ·tillation 

Code a to hour are crenerall imilar to th of the Lumb r o l 

while the waO' prov1 1011 · liahtly bett r than h . in the 

Lumber Code. 

Th number of fa t ry emr 1, y e in thi inclu try in 19' 

n arly 3 000. Thi · numb r ha: lror peel to ar 1 roximnt l. 1, 

19' 3. It do not app ar that this redu ti n ha: me ab u thr urrh 

t chni al impr Y ment · in th in u. try bu rath r br ugh r 1u 

v lume of outr ut. Th low I oint in h in u ·tr. in July 1 · 

how ell than 1 00 1111 Joy enga · l1 in th in ln ~ try. 

Th numb r f mpl y s 1\....,ag 1 in w c1 ntting an -1 hnulin ·an 1 

o h r p rati n utsi l f th fa ·t r n rmall. ' is alJl' .·imat l r 

thr tim s a many. c nsi 1 rabl 1 rti n f th ut ith w >rk f 

thi tyr i.· n n a full-time ba . i . Th m .·in um hours ' t nt in thi. . 1 :h ul1 incna:-; 

m nt 1 y as mu h a.· .,J.- / . Thi'-', ·oupl ~ 1 will nn in 'rt <l::- in wnrr 

f whi ·h 16."' / willr ll' .· nt an impr ,. m nt i 1 pur ·ha-.;ino· pow r 

'hi h whil .·mall in nh.-olut 1uanti y, willlw larg' for tht in1u-. ry 

·uH1 r 11' . nt <11 Hlll' ·iahl . t 'J t wanl th goal :-; t 111 in th 

N ati01 al In n.·trial P <' , . ry ~ t. 

ClVI 
v 

FINDINGS 

The Administrator finds that-

( a) The Code as recommended complies in aU respects with the 

pertinent provisions of Title I of the · Act, including without limitation, subsection (a) of Section 7 and sub ection (b) of Section 10 

thereof; and that 

(b) The applicant group imposes no inequitable restrictions on 

admi sion to membership therein and is truly representative of the 

Hardwood Distillation Industry; and that 

(c) The Code as recommended is not designed to promote monopolies or to eliminate or oppress small enterprises and will not operate 

to discriminate against them, and will' tend to effectuate the policy 

of Title I of the National Industrial Recovery Act. 

It is recommended, therefore, that· this Code be immediately 

adopted. 

Respectfully, 

HUGH s. JOHNSON' 

Adndnistrator. 
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A CODE OF FAIR COMPETITION FOR THE HARDWOOD 

DISTILLATION INDUSTRY 

ARTICLE I-PURPOSE 

This code is set up for the purpose of increasing employment, 

establishing fair and adequate wages, effecting reduction of hours, 

improving standards of labor, and eliminating unfair trade practices, to the end of rehabilitating the wood distillation industry. It 

is the declared purpose of the subscTibers to this code to bring rates 

of wages to levels necessary for the highest practicabl~ tandaFd of 

living, and to restore the income of the industry to levels which will 

make possible the payn1ent of such wages and avoid further depletion 

of capital as ets. 

ARTICLE II-DEFINITION s 

The term " Hardwood Di tillation Industry " as used herein, and 

hereinafter r eferred to a "the Industry", includes the carbonization 

11ndjor distillation of wood and the manufacture of charcoal pig 

iron and uch as ociated enterprise · as may from time to time, subject to the approval of the Pre ident, be included under the provisions 

of this Code. 

The term " Division " a· n. eel herein means a specific geographic 

area in which Hardwood Distillation is practiced. There are three 

such divisions-the Eastern, compri ses the states of New York, 

Penn ylvania, and West Virginia· the Western, comprises the states 

of Michigan and Wi cousin; t-he Southern, comprises the states of 

Tennessee, Kentucky, and Arkan as. 

The term "Wood Chen1ical Institute, Inc.", a used herein means 

the trade as ociation of those engaged in the carbonization and/or 

distillation of wood, and any subdivisions thereof. 

The term" Emergency Executive Committee" as used herein means 

a committee composed of the President of the Wood Chemical In,.. 

stit:ute, Inc., and four members elected by, and representative of, the 

Divisions of the Indu try. 

The term "Code .Authority" as used herein means the Authority 

set up under Art. VI-.A(l) hereof. 

The t-erm "~iember of the Industry" as used herein includes anyone engaged in the Industry as above defined, whether as an employer 

or on his own behalf. 

The term " Product" as used herein includes chaTcoal, methanol, 

and/ or its compounds, acetate of lime, acetic acid, and charcoal 

p1g Iron. 

The term" Employee" as used herein includes any person enga.ged 

in any capacity in the nature of employee, irrespective of the method 

of payment of his compen ation. 

(1) 
2 

The term "Employer" as used herein includes anyone for whose 

benefit ·uch an employee is so eng.aged. 

The terms "Pre ident ", "Act" and "Administrator " a used 

herein shall mean re pe· tively the Pre ident of the United States, 

the National Industl·jal Recovery Act, and the Administrator of said 

Act. 

Population for the purpose of this code hall be determined by 

reference to the 1930 Federal en u . 

ARTICLE III-HouRs 

No employee shall be permitted to work more than an average of 

40 hours per week in any six months' period nor more than 48 hour 

in any one week nor more tha11 eight hours in any one day, except 

the following : 

(a) Employees in a managerial, executive, or supervi. ory capacity 

earning in exce s of $150.00 per month. 

(b) Outside salesmen. 

(c) N ig l~t W atchm.en.-This exemption shall not affect more than 

2% of the total employees, but each plant may have at least one such 

employee. 

(d) T ea1nsters GJJUl Truck Drivers.-Transportation distances, 

topogra.phical and weather conditions make it impossible to comply 

strictly with the maximum hourly schedule, but employment of teamsters shall not be allowed in exces of an average of 48 hour per 

week over any 6 months' period. E1nployment of truck drivers hall 

not be allowed during any six months' period for more than an av rage 

of 44 hour per week, nor more than 48 hour in any one week. The 

foregoing pro vi ion hall not affect more than 20% of the total 

employees of any one plant. 

(e) Employees engaged in a continuous 12roce operation where 

adequate qualified labor cannot be made ava1labl and where restriction of hours would unavoidably re 1uce produ tion; in uch ca e tho 

maximum weekly hours shall not be in exce of 4 hour . (f) hemi t and lerical mployees in i olat d mmunitie of 

le s than 1 500 population, who may be employed not m r than 4 

hour per week. 

(g) Employ e en agel on mergen . work clue to h a y n wfall 

hall be ex pted from th f!. neral hour ' provi ion but at l ast 

time and on thir l ·hall b pail for hour w rk d in .· . f h ur 

per day, and th e emplo. . hall b grant ll full la~ f r t in 7. 

Such mploym nt in x . of 48 hour p r w k hall b ubj ct to 

the fe ifi permi i n of th ( de uth ri . (h AU mr l ye n t ,'P ified ab v hall b paid tim an l nethircl for h ur work d in x e f h ur r 1a with th 

pti n f main nan an 1 r I air m n f r ' h m th r hall a 

t l ran f 10 a o h ur I r ay. 

(i) mpl y ·hall w rk or b 1 rmitt l t " rk f r a t 

f hour in x f th numb r f hour pr n ab y 

mploy d by one r m r n 1 l yer . 
3 

ARTICLE IV-WAGES 

1. The minimum wages per hour paid to employe~s . s~all not be 

less _than 30¢ pe"r hour in the EastenY and vV estern Dl VISIOns or .less 

than 25¢ per hour in the Southern Division, except the :fol.lo.wing-, 

whose wages per hour shall not be less than 80% of the mm1mum 

wages specified in this paragraph; these exreptions shall not affect 

more than ~ of the total number of employees in any one pl:.tnt. 

(a) Male between 16 and 18 year of age when the lack of the 

income would work a hardship on their dependents. (b) In the Southern Division females employed for packing charcoal in paper bags. 

(c) Those physical! y handicapped. 

2. This Article establishe a minimum rate of pay which shall 

apply, irre pective of whether an employee is actually compensated 

on a time-rate, piecework, or other ba i . 3. All chemist and clerical employees paid on a salary basjs .shall 

be paid not less than $14 per week. 

4. All part-time workers shall be paid on an hourly ·basis at not 

less than the minilnum hourly rates pre cribed in Article IV, 

Section (1). 

5. There shall be no evasion of this Code bv reclassification of the 

functions of workers. A worker shall not vbe included in one of 

the exceptions specified in Article III unless the identical functions 

were identically classified on June 15, 1933. 

6. Salaried employees, heretofore receiving in excess of the minimum. set forth in Article IV (3) shall not have their salaries reduced. 

vVage earner heretofore r eceiving in excess of the minimum set 

forth in Article IV Section ( 1) shall not have their hourly rate 

reduced. 

ARTICLE V-CHILD L ABOR 

No person under 16 years of age shall be employed in the Hardwood Distillation .Industry. 

ARTICLE VI-AmvnNISTRATION 

· To effectuate the policies of this Code, a Code Authority is hereby 

set up to cooperate with the Administration for the administering 

of this Code. 

A. 01'ganization .-l. The Code Authority shall consist of the 

Emergency Executive Committee of the Hardwood Di tillation Industry, which is to consist of a representative or r epresentatives of 

each division, selected by the said division by a fair manner of 

election, together with the President of the ·vvood Chemical Institute, Inc. The Eastern Division shall select two representatives, 

the Western Division shall select one representative, and the Southern Divi~ion shall select one representative. The President may 

appoint not more than three members who shall be without vote. 

2. Participation in the administration of this Code, and any subsequent revision of or addition thereto shall be extended to any member of the Industry who may accept the proper pro rata share of the 
4 

cost and responsibility of creating and administering it, either by 

becoming a member of the Wood Chemical Institute, Inc., by paying 

the dues that shall be levied on members of the Wood Chemical 

Institute, Inc., as prescribed by the bylaws of said institute or by 

paying to the Code Authority his proportionate share of the cost 

of creating and administration of this Code, ba eel on his rated 

cordage, or as may otherwise be determined by the Code Authority, 

subject to the approval of the Administrator. No initiation or 

entrance fees to the Wood Chemical Institute, Inc., shall be charged. 

3. Each trade or industrial association participating in the selection or activitie of the Code Authority shall: (a) 1m pose no inequitable restrictions on membership, and (b) submit to the Administrator true copies of its articles of a sociativn, bylaws, regulations, 

and any amendments when made thereto, together with such other 

information as to membership, organization, and activities as the 

Administrator may deem necessary to effectuate the purpose of the 

Act. 

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

representative of the industry and in other respects comply with the 

provisions of the Act, the Administrator may provide such hearings 

as he may deem proper; and thereafter if he shall find that the Code 

Authority is not truly representative or does not in other respects 

comply with the provisions of the Act, may require an appropriate 

modification in the method of selection of the Code Authority. 

5. All members of the Industry shall have the right to appeal to 

the President from decisions of the Code Authority. 

B. Duties and Powen.-The Code Authority shall have the following duties and powers to the extent permitted by the Act and 

subject to approval by the Administrator: . 

1. To administer this Code in conformity with the provisions of 

the National Industrial Recovery Act under the authority of the 

President. 

2. To collect and compile all necessary data as provided in Article 

VII hereof. 

3. To submit to the National Recovery Administration for approval amendments proposed by any division or member thereof, 

or initiated by the Code Authority it elf. 

4. To secure current information oncerning th ompetition in 

domestic market of imported pr duct · f th1 and ompetin<Y indu tries, and if it ·hall find that ,· ucl pr clnct · are b ing imr rt d 

into th Unite l tate in ub tantial qnantib · or in rea in · rati 

to dome ti production and on u h t rm or nn l r uch n iti n 

a to render ineffe ti v r eri u ly to n lanber the maint nanr of 

this Cod~ it hall omplain to th Pr id nt pur uant t th I r Yisions of i::;e tion 3 (e) of th N ati nal In lu rial R Y r. A t, an l 

petition for uitable r tri ti n n th imp rta i n f n h 1 roclu t . 

C. Op rati e PTovi ion . . -Th d uth rit hall tuly h 

functioninO' and p ration f th in lu tr un l r thi l , \Yith a 

iew to makin · r mm ndati n t th dminj trat r ' hi ·h i 

deem de irabl for m difi ati n r a lliti n t th tra 1 1ra tie 

regulati n and rule and r g 1lati n ontain d 111 thi · 1 . 
5 

ARTICLE VII-STATISTICS 

In order to provide data necessary for the administration of the 

National Industrial Recovery Act, the members of the industry 

shall furnish, and the Code Authority shall collect, all data and 

statistics which inay be called for under this Code. 

1. Any data and/ or statistics of a confidential nature shall be 

collected by a certified public accountant selected by the Code Authority. · The information so collecte4 shall be disseminated only so 

combined with other information of the same type that disclosure 

of individual operation ·shall be impossible. 

2. In addition to information required to be submitted to the 

Code Authotity, there will be furnished to Government agencies 

such statistical information as the Administrator may deem necessary for the purpose recited in Section 3 (a) of the National Industrial Recovery Act. 

· ARTICLE VIII-CosTING 

The Code Authority shall, after a study of the conditions in the 

Industry, prepare and submit to the Administrator for approval a 

uniforn1 system_ of accounting, specifying the items of cost to be 

included, with an allocation of these costs to the products of the 

Indt1stry. 

ARTICLE IX--RULES OF TRADE PRACTICE 

The Code Authority shall study trade practice rules and the operation thereof, and shall make any recommendations from time to time 

to the Administrator which it deems desirable for modification or 

addition thereto, which, upon the approval of the President, shall become a part of this Code and have full force and effect as provisions 

hereof. The following trade practices are hereby prohibited: 

1. For any member of the Industry to sell the products of the 

Industry below his individual cost of production of such products as 

determined in accordance with the uniform system of accounting referred to in Article VIII, after it has been approved by the Administrator. 

2. The secret payment or allowance of rebates, refunds, commissions, or unearned di sc ounts ~ whether in the form of money or otherwise or secretly extending to certain purchasers special services or 

provisions not extended to all purchasers under like terms and conditions. 

3. No member of the Industry shall render :false invoices subject 

to adjustments. 

4. No extra or special freight allowances shall be made to stimulate sales. 

5. No product shall be sold with a guarantee against a decline in 

price before or after delivery. 

6. 'Vhere specifications for any products o:f the Industry have been 

approved by the Public l-Iealth Service o:f the United States, by state 

or local authorities and agreed to by the Code Authority on behalf 

of the Industry, no member of the Industry shall sell such products in 

violation of such specifications. 
lllllll ~l i~mli ~fl l ~1i 1 ~~ ~~~~~~~~~~~~~~~~ ~~ 3 1262 08850 4591 

6 

7. The false marking or branding of any product of the Industry 

which has the tendency to mislead or deceive customers or prospective customers, whether as to the grade, quality, quantity, substance, 

character, nature, origin, size, finish or preparation. of any product 

of the industry, or otherwic:e. 

ARTICLE X-GENERAL 

1. Employee shall have the right to organize and bargain collectively through repre entatives of their own choo ing, and shall be :free 

from the interferen e, re traint, 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 mutual aid or protection. 

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

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

from joining, organizing, or assi ting a labor organization of hi own 

choosing. 

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

minimum rates of pay, and other conditions of employment approved 

or pre cribed by the President. 

4. This Code and all the provision thereof are expres ly made 

subject to the right of the President, in accordance with the provi ion 

of Subsection (b) of Sec. 10 of the National Indu trial Recovery Act 

from time to time to cancel or modify any order, approval li en e~ 

rule, or regulation i ued under Title I of aid Act and pecifically, 

but without limitation, to the right of the President to cancel or 

modify his approval of this Code or any condition impo ed by him 

upon his approval thereof. 

5. Within each state members of the indu try shall comply with 

any laws of uch tate impo ·ing more trinO' nt requirem nt r gulating the age of employee , waO'es, hour f work, or health fir or 

g enral working condition , than under thi Code. 

6. No pro vi ion in thi Code hall be inteq reted or applied in uch 

manner as to : 

(a) Promote monopoli or monopoli ti pra tice; 

(b) Permit or encourage unfair competition; 

( ) Eliminate or oppre · mall enterpri ; r 

( cl) Di riminate again t mall enterpri s. 

7. 'Vhere the o t of exe uting contra t nt r l into y th member · of th Indu tr. 1 rior to June 16 1 33 i in r a l by th ap1 lication f the pr i i n. of the National In lu ·trial R Y ry A t a 

fair an l appr priat adju · ment of u h ntra t t r fl t u h 

in r a co t ma r b att mpt d by n aotiati n r r ar itrati n. 

. ~a h empl y r hall p t in on i u u I la in hi plant full 

co1 i f thi Cod . 9. Thi d hall tak 

by the Pr i 1 nt of th 

n th fir t I nday aft r it 

tat 

0 

p r yal