Approved Code No. 529 Registry No. 698-1-30 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

PHARMACEUTICAL AND 

BIOLOGICAL INDUSTRY 

AS APPROVED ON OCTOBER 25, 1934 

WE DO OUR PART 

.~ .. , .... ----

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

For sale by the Superintendent of Documents, Washington, D. C. - - • • - - - - - Price 5 cents 
This pulJlieation is for ale by the Superinrenucnt of Do~·umeut ·, Uuv rnmeut 

Printiug Office, Wa bington, D. C., and by di tri t of:ti · s of UP 3m<•au oi For •i:...n 

and Domestic 'onnuer e. 

DISTRICT OFFICES OF THE DEPARTM~NT OF COMM HCE 

Atlanta, Ga.: 5U-:l: .Pust ili ·e Hu1H1illg. 

Binnmgharn, Ala. : :.:!.J7 l!'eueral Lmlcllllg. 

Bo tun, Mass. : 1801 Cu. torn11Gu e. 

Buffalo, N. Y.: 'hamber uf Comm n:e Buildin<T. 

Chari tun, ~- C.: Chawb r of 'omnH.• r ·e .Builuing. 

Cbicugo, Ill.: 'uite 1706, ~01 'urt11 \\' ,11s treet. 

Cleveland, Ohio: hamlJer 0f Ouu1merce. 

Dalla , Tex.: Ch .. :mber of 'owmer ·e Duilc.liu·•. 

Detroit, l\lich.: 801 Fit t Natioual Hunk Bu ilding. 

Huu:::;ton, Tex.: han,be1· ut Con11ne,· ·e .Building. 

1n,Jia11apoli , Iud.: Cham er of Cumrnerc· Duildin:.;. 

Jack ·01wille, Fla.: ~11ambcr of 'ornrn 'l'C'e Building, 

Ka11 HS City' :\lo. : 102 Baltimoi- A \'('llUC. 

Lo Angele , Calif.: 1163 'outh Droadway. 

L ui ville, Ky .: 40 Fed~ral Buildin . 

::.\lemplli. , ' enn.: 220 Federal Building. 

l\linnea1 oli , ~1in11.: 213 Federal Buildinir. 

New Orl an~, La. : Room 225- , u tombou ·e. 

New Yurk, T. Y.: T-! Cu tomhou . 

1\Torfolk, Va. : 406 Ea t Plume 'tre t. 

Philacl lphin, Pn.: 422 omm rcial Tru t Building. 

Pitt. burg11, Pa.: C'hamber of orurner ·e Duii Ung. 

P rtlarnl, Jr g.: ~1.) • · w Po.·t Ofti · Duildiug. 

St. Loui., Io.: 506 liY ti' t. 

an Frand.·c , 'al'f.: 310 u tnmhou . 

Seattl . ·ffa h.: (J!) F Pral Jffic:e Dnil<1ing. 
Approved Code No. 529 

CODE OF FAIR COMPETITION 

FOR THE 

PHARMACEUTICAL AND BIOLOGICAL INDUSTRY 

As Approved on October 25, 1934 

ORDER . 

APPROYIKG CODE OF FAIR COMPETITION FOR THE PHARMACEUTICAL AND 

BIOLOGICAL 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 Pharmaceutical and Biological Indu try, 

and hearing 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, the National Industrial Recovery Board, pursuant to authority vested in it by Executive Orders of the President, including 

Executive Order No. 6859, dated September 27, 1934, and otherwise; 

does hereby incorporate by reference said annexed report and does 

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 does hereby order that said Code of Fair Competition 

be and it is hereby approved; provided, however, that the Code Authority shall obtain from members of the Industry and submit to the 

National Industrial Recovery Board within four months after the 

approval of this Code, statistics indicating (a) the total number of 

employees for each of the past twelve months, (b) the total monthly 

or weekly payroll for each of the past twelve months, ( c) the total 

man-hours for each of the past twelve months, ( d) the number of 

employees in each wage gro~p as shown by a frequency distribution 

for each of the past twelve months; and that upon the basis of such 

data or other information properly before the National Industrial 

Recovery Board, said Board may at any time after the effective date 

of this Code conduct such hearing as said Board deems necessary to 

e:ff ectuate changes in Articles III and IV of said Code, and that any 

order the said Board may make as a result of such hearing shall have 

the effect of a condition on the approval o:f this Code. 

NATIONAL INDUSTRIAL R ECOYERY B OARD, 

By G. A. LYNCH , .Ad11iinist1'afive Officer. 

Approval recommended : -·, 

JOSEP H F. B ATTLEY, 

Acting Division AdmJni,strator. 

"\Y ASH INGTON, D. c., 

October B5, 1934. 

03'42°-1244-03- 3{· (73) 
REPORT TO THE PRESIDE T 

The PRESIDENT, 

The White House. 

Srn: This is a report on the Hearing of the Code of Fair Competition for the Ph:umaceutical and Biological Indu try, hell in the 

Ro e Room of the vV a hington I-Iotel on l\1ay 1 1934. The Code, 

which is attached, was presented by duly qualifi d an l auth rized 

r epresentatives of the Indu try, complying with tatutory requirements and claiming to represent eighty (80 % ) pr ent by volume 

of the Industry. 

In accor lance with the customary procedure very p r on who 

had filed a request for appearance was freely heard in public; and 

r gulatory requirements were complied with. 

TIIE INDU TilY 

The Indu try comprises about 144 concerns at the prese t time 

according to a list compiled by the Code Committe aft r a lilig nt 

earch. In 1929, by Census figures, ther w r 4~9 on rn mor 

than thre -:fourths of which w re v ry small, emr loyin 1 s than 

20 workers per firm. The inve ted capital of th Indu try i timated at $150,000 000. The annual ales of 70 r portinp.- on ern 

f ell from $110,000,000 in 1928 to $92,000,000 in 193_, nn 1 '39.000.000 

in the first half of 1933. In 1929 there were appro:ximat l> 14,600 

per on employed in the Indu try, of "hich nearly 11 000 w re 

wage earners. 

rROYI IO ... ~ OF TIIE C DE 

Th i,uty .i. clmini:tr:it r in hi. final r 1 ort on . ai 1 <1< haYing 

f urn1 a· b r in ,t f r h n 1 m th l>t . i >f all th pr · ,dino-. in 

tb.i ma t r: 

(74) 
75 

The Board finds that: 

(a) Said Code is weli designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including 

removal of obstructions to the free flow of interstate and foreign 

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

by inducing and maintaining united action of labor and management 

under adequate governmental sanctions and supervi ions, by eliininating 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 indu trial and 

agricultural products through increasing purchasing power, by reducing and r elieving unemployment, by improving standards of 

labor, and by otherwise rehabilitating indu 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 

Subsecton (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 admission to membership therein. 

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

or monopolistic practices. 

( e) The Code is not de igned to and will not eliminate or oppress small enterprises and will not operate to discriminate against 

them. 

(f) Those engaged in other steps of the economic process have 

not been deprived of the right to be heard prior to a pproYal of said 

Code. 

For these reasons, this Code of Fair Competition for the Pharma- ceutical and Biological Industry has been approved. 

For the National Industrial Recovery Board: 

OCTOBER 25, 1934. 

G. A. LYNCH, 

Adniinistrative Officer. 
CODE OF FAIR COMPETITION FOR THE PHARMACEUTICAL AND BIOLOGI AL I DUSTRY 

ARTICLE I-PURPOSES 

To effect the policies of Title I of the ational Industrial Recovery Act, the following provisions are e tablished as a Code of 

Fair Competition for the Pharmaceutical and Biological Industry, 

and shall be the standard of fair competition for su h Ii dustry and 

shall be binding upon every member thereof. 

ARTI LE II-DEFINITION 

SECTION 1. (a) The term "Pharmaceutical and BioloCYicn1 Industry " a u ed herein shall m_ean the Indu try each m mb r f 

which i engao-ed in the manufacture and/ or in having manufa ured 

for him under his own brand and specifications and/or in importing in pa kages for re ale, and/or in packaging from bulk material under his name or brand, and/or the orio-inal al of pharmaceutical and/ or biological product for human and animal n an 

principally intended for direct use by or upon pre cripti n of 

phy icians, vet rinarian or d ntist . 

(b) This definition doe not include any r tail r operating un ler 

a retail cod who perform any of th act peci.1ed herein ol ly 

for the purpo e of sale at retail to hi "n cu tom rs. and n for 

the purpo e of sale to other distrib 1tor · r rovided. hmvever that 

where a retailer 01 erat a laboratory or plant distinct from hi 

retail operation , and employ a pe ial grou1 of cmpl ye t , o k 

primarily in . uch laboratory or l lant cli.,tinct from that gr up f hi 

employ ho work primarily in hi retail tabli hm nt, an 1 n h 

laboratory or plant J:)erform any of th act p cified h rein, ·h ther 

for ale t u h retail 0 r wn en tom r · or to oth r di tributnr 

uch r ailer i ubject to the provi i n f thi ~ o le in r ·~ ped 

u h laboratory or J lant. 

( ) Thi od hall n t appl to the ur an 1 . ~I f 

nti-Hog h lera serum and I-Ioo--

( 1) Th t rm ori ·ina I al ' a n 1 h r in m 

m mber of th In lu try, ub i liL r bu.-in · CJ1t q ri ·e, orp irati n 

firm or partn r. hip o,,fl1e 1 or c n r 11 1 by n ·h m m r. an 1 th 

al b. r an x lu ive di tribut r r ar-- n f . uh m mbt>r for r al · pr •ide 1 how Yer, th i t rm 1 e. not in ·lu 1 .-nl 1 y wh ll . nl r or 

r tailer whi ch di. tribut 1 rin ipally a <rc11 ral lin f th' pr Hlu ·t · In cl 1unlrthi- o1. 

E TIO.... -· Th t :.rm m m 

in lu l , l nt with m limitati n 

ti n, oq oration ir th r form 

ith r a a 1 m1 l ) er r on hi 

r f th Inc1n trv ' < l1 11 h r in 

any individual, p:1rtn 'T' hi1 

f nt rpri:-;< l' ngn~' 1 in th 

>r it wn l half. 

(76) 

tr_' 
77 

SECTION 3. The term "employee" as used herein includes any and 

all persons engaged in the Industry, however compensated, except a 

member of the Indu try. 

SECTION 4. The term "employer" as used herein includes anyone 

by whom such employee is compensated or employed. 

SECTION 5. The terin " establishment " as used herein includes any 

plant, laboratory, business, branch, or department thereof engaged 

in this Ind u try. 

SECTION 6. The terms" President", "Act", and "National Industrial Recovery Board" as used herein mean respectively the President of the United States, Title I of the National Industrial 

Recovery Act, and the National Industrial Recovery Board. 

SECTION 7. Definitions of Personnel.-(a) The term "executive " 

as used herein means an employee responsible for the management 

of a business or a recognized subdivision thereof. 

(b) The term "outside salesman" as used herein means an employee selling his employer's products or an employee calling on 

hospitals, physicians, dentists, and veterinarians for the purpose of 

promoting the use and sal"e of his employer's products, if such 

employees are engaged more than sixty percent of their time outside 

the establishment or branch thereof by which they are employed. 

( c) The term " outside service employee " as used herein means 

an employee who is engaged not less than sixty (60% ) per cent of 

his working hours in delivering, installing, and/or servicing 

merchandise outside of the establishment, and shall include stable 

and garage employees. ( d) The term "watchman" as used herein means an employee 

engaged primarily in safeguarding the premises and property of a 

member of the Industry. 

( e) The term " fireman " and " engineer " as used herein shall 

mean employees engaged primarily in the upkeep, preservation, 

operation and repair of furnaces, boilers, engines, pumps, compressors, heating and ventilating equipment, electrical generating 

plants, or other machinery used for supplying heat, light, ventilation or power to a building, plant or office of a member of the 

Industry ; but do not include such employees as porters, elevator 

operators, cleaners, or operators of machines used directly in a 

manufacturing process. 

(f) The term "Laboratory apprentice" as used herein means a 

laboratory employee who has been employed in this Industry less 

than a total of two (2) months. 

(g) The term "office apprentice" as used herein means an employee engaged in office and/or messenger work who has had less 

than a total of six ( 6) months office work experience. 

(h) The term "branch house and shipping service employee" ·as 

used herein shall mean an employee engaged primarily in the receipt, filling, invoicing, shipping, and handling of orders for the 

products of ·a member of the Industry whether employed in the 

home office of such member or in a branch or depot thereof. 

( i) The term " research and scientific worker " as used herein shall 

mean an employee engaged primarily in research and scientific work 

where special education or scientific training is essential. 
78 

(j) The term "continuous process" as used herein means a process 

which once begun, cannot be interrupted until completed, without 

spoiling the goods proc ssed or rendering the work done valueless; 

and which must be attend d throuahout by the same in lividual or 

individuals; and which cannot be begun at a sufficiently early hour 

to allow of its completion within the eight (8) hour shift in which 

it is begun. 

ARTICLE III-HOURS 

SECTION 1. No watchman, fireman, engineer, or outside rv1ce 

employee shall be p rmitted to work in exc ss of forty- ight ( 48) 

hours per week averaged over a consecutive two we k ' per;od nor in 

excess of twelve (12) day in any consecutive fourteen (14) <lays' 

period, except as provided in S ction 5 of thi Article. 

SECTION 2. Except as provided in S ction 5 of this Article no 

branch house and hipping ervice mployee shall be pcrm;tted to 

work in excess of forty-five ( 45) hours per week; or more than six 

(6) days in any con cutive even (7) days' period; provided, however, that in the event that maximum hours other than tho e prescribed in this Section are e~ tablished for this clas of mplo e ;n 

a Code f r the ,Vhole al"' Drug Tra le, such maximum hour shall 

become the maximum hour in thi Indu try. 

SECTION 3. Pharmacist·, re earcb and scientific w rker and hemists actually working at their profes~ions an l ex cut:-v , who r ive 

a alary or guarante 1 minimum of thirty-five dollar ( 3 .00) or 

more per week; and out icle ·ale rn n shall be exempt from the provi ion of this Article pertaining to hour of Labor. 

SE TION 4. (a) No other emplo~'e hall b permitted to work in 

exce of forty ( 40) hour in any one w0 ek nor more than eight (8) 

hours in any twenty-four (24) hour period, nor more than . ix ( 6) 

days in an. consecuti-, seven (7) day ' p riod, except a pr , ide 

in Section 5 of this Article. 

(b) No mployee working on continuou proc hall be p rmitted to work in exce s of tw l"ve (12) hours in any one <lay r 11 re 

than forty ( 40 ) hour in any one w ek. 

E TI01 5. (a) Any 1111 loy e may be p rmitte ~ to rk in x e 

of the maximum hour ... fixed in .._ c ion 1, ~ ancl 4 f hi 1 rti 1 

provided he i laid nt the rate of at lea t tim and n -thir (11/2 ) 

f r all hours worked by him in ., c f n h m . _-irnum h nr::., an 1 

provide further than nch ov rtim work hall n t _ c · l i;l t 

( ) hour, in nny one w ck and eio-ht ( ) ck ne al n lar 

year. 

4 

(b) In 

br ak<l 

pr 

ma 
79 

SECTION 6. No employer shall knowingly permit any employee to 

work for any time which when totaled with that already performed 

with another employer or employers in this or any other industry 

or any trade exceeds the maximum number of hours provided herein 

for the class of work done by such employee. 

ARTICLE IV-WAGES 

SECTION 1. No employee shall be paid in any pay period less than 

at the rate of thirty-five (35¢) cents per hour, except as provided 

in Sections 2 and 3 of this Article. 

SECTION 2. No laboratory apprentice or office apprentice shall be 

paid in any pay period le s than at the rate of twenty-eight (28) 

cents per hour, provided that the total number of such employees 

who are actually receiving less than thirty-five (35) oents per hour 

shall not exceed one for every twenty (20) employees employed by 

any member of the Industry, but each member of the Industry shall 

be entitled to employ one such laboratory or office apprentice. 

SECTION 3. A person whose earning capacity is limited because of 

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

this Code, if the employer obtains from the State Authority, desig- nated by the United States Department of Labor, a certificate authorizing such person's employment at such wages and for such hours 

as shall be stated in the certificate. Such Authority shall be guided 

by the instructions of the United States Departlnent of Labor in 

issuing certificates to such persons. Each ,employer shall file each 

month with the Code Authority a list of all such persons employed 

by him showing the wages paid to, and the maximum hours of work 

for such employee. 

SECTION 4. This Article establishes minimum rates of pay which 

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

SECTION 5. No employer shall make any reduction in the full time 

weekly earnings of any employiee whose normal full time weekly 

hours are reduced by 20 percent, or less, below those existing for the 

four weeks ending July 1, 1933. vVhen the normal full time weekly 

hours of an employee are reduced by more than said percent, the 

full time weekly wage of such employee shall not be reduc.ed by more 

than one half of the percentage of hour reduction above said percent. In no event shall hourly rates of pay be reduced, irrespective 

of whether compensation is actually paid on an hourly, weekly or 

other basis, nor shall any wages be at less than the minimum rate 

herein provided. vVithin 60 days of the effective date hereof, (unless such adjustment has been made theretofore) each employer shall adjust the 

schedules of wages of his employee;; in such an equitable manner as 

will conform to the provisions hereinabove set .forth, and still preserve wage differentials reasonably proportionate to those in effect 

prior to the effective date of this Code. 

SECTION 6. Female employees performing substantially the same 

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

employees. 
80 

SECTION 7. Wages shall be paid at least twice per month in law.ful 

currency or by negotiable check payable on demand. 

ARTICLE V - GENER_ L L ABOR PROVISIO.i: s 

SECTION 1. 

employed in the Industry except as 

Jl) l 

t. 
81 

SECTION 8. _The hours 'TT'orked by any employee, except outside 

salesmen, durmg each day shall be consecutive, provided that an 

interval not longer than one hour may be allowed for each reo-ular 

meal period, and such inten al not counted a part of the empl;yee's 

working time. Any re t peri d which may be given employees shall 

not be deducted from uch employee's working time. 

ARTI LE VI-ORG,H'i!ZATION, P owERS A D DUTIES OF THE ConE 

AUTHORITY 

ORGA.~IZATIO AND CONSTITUTION 

SECTION 1. A Code uthority is hereby e tabli hed con i ting of 

five ( 5) persons to be elected in the following manner, and to serve 

for one ear or until their uccessors shall be elected : 

(a) Pending the selection of the permanent Code Authority as 

hereinafter provided, the Code Committee duly selected by the Indu try to submit this Code to the National Recovery Administration 

shall act as temporary Code Authority. 

(b) "\Yi thin five ( 5) days after the effective datB o:f this Code, and 

annually thereafter, th Co le Authority in office (whether a temporary or a permanent Code Authority) hall nominate a list of 

ten (10) individual repre entative of this Indu try, not more than 

eight of whom hall repre ent trade association in this I ndustry. 

Thi list, with the tra ~e a ociation affiliation and the company conne tions of each individual indicated, shall be submitted to the 

:National Indu trial Recovery Board or the Administration :Member 

of the o le Authority for approval or amendment. As so approved 

or amend cl the list hall be placed on a ballot containing on its 

face five blank lines :for additional nomination . A copy of this 

ballot t oo-ether with a copy of this Code shall be mailed to all 

members O of the Industry whose existence can be determined by 

dili ·ent ~earch by the Cede Authority. 

( c) Each member of the Ind_ustry shall be entitled to the number 

of vote indicated on the followmg Table of Votes. These votes may 

be cast for any five ( 5) nominees, and selection may be made from 

the names printed on the ballot or by writing in other names on 

the blank lines. The ballot as· o marked and signed will be mailed 

back to such addre s as shall be designated by the Code Authority. 

The Code Authority shall fix a date before which all marked ballots 

mu t be in the mail, prm ided that such date sha.11 not be less than 

fifteen (15) days after the <lat-e when all ballot were mailed out to 

the Industry by the Code Authority. 

(d) The Administration lVIem.ber of the Code Authority shall 

personally supervise the counting of votes. A list shall be made of 

all nominees in the order of the greatest number of votes received. 

There hall be not more than four ( 4) repr sentatives of trade a ociation on the Code Authority and to effect this purpose, the following procedure will be carried out: (a) The individuals on the aforesaid list shall be canvassed to determine which are unwilling, unable, 

or di qualified to serve, and the names of such individuals deleted. 

( b) The names of all members of each trade association after the 

first four members of trade associations on the list shall be stricken 
82 

therefrom. ( c) The first five ( 5) individuals in ord~r upon said 

list shall then be declared elected and shall take office immediately 

upon the approval of their election by the National Industrial 

Recovery Board. 

( e) If a vacancy hall occur on the Code Authority between elections, it shall be filled for the unexpired term by the remaining members of the Code Authority subject to approval by the National 

lndu trial Recovery Board of the person so cho en. 

(f) :Members of the Indu try must note upon their ballots the 

number of employees which they have u ed in figuring the number 

of votes allotted to them by the following Table of Votes: 

TABLE OF VOTES 

The number of ern.ployees of each member of the Indu try shall be 

determined by computing the average number of ach member's employees engaged in this Industry for the calendar year preceding 

the year in which the election is held and subtractino- therefrom the 

average number of such member's outside sale men for such calendar 

year. 

Average nuniber of employees (less oiitside sale 1nen ) for the calendar year 

prececUng the year in which the election is held 

N1tmber of votes 

151 to 300 ____ __________________ 95 

301 to 650 ______________________ 110 

651 to 1,200____________________ 125 

1,201 to 2,500 ___________________ 140 

More than 2,500 ___ _____________ 155 

1 in thi 

1 artn rs f 
83 

any member o:f 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. or hall any member of the Code Authority, 

exerci ing reasonable dilio-ence in the conduct of his duties hereunder, be liable to anyone for any action or omi sion to act under 

the Code, except for his own wilful malfeasance or nonfea ance. 

SECTION 6. If the National Industrial Recovery Board shall determine that any action of the Code Authority or any agency thereof may be unfair or unju t or contrary to the public interest, the 

National Industrial Recovery Board may require that such action be 

su pended to afford an opportunity for inve tigation of the merits of 

such action and further consideration by uch Code Authority or 

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

National Indu trial Recovery Board appro-ves or unle it shall fail 

to disapprove after thirty ( 30) days' notice to it of intention to proceed with such action in its original or modified form. 

POWERS AND DUTIES 

ECTio... 7. S bject to such rules and regulations as may be i sued 

by the National Industrial Recovery Board, the Code Authority 

shall have the following powers and duties, in addition to those authorized by other provisions of this Code: 

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

to provide for the compliance of the Industry with the provi ions 

of the Act. 

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

( c) To obtain from members of the Indu try uch information 

and reports a are required for the administration of the Code. In 

addition to infonnation required to be submitted to the Code Authority, members of the Industry subject to this Code shall furnish such 

statistical information as the National Indu trial Recm"ery Board 

may deem nece sary for the purposes recited in Section 3 (a) of 

the Act to such Federal and State agencies a it may designate; provided that nothing in thi Code shall relieve any member of the 

Industry of any existing obligations to furnish reports to any Government agency. o individual report shall be disclosed to any other 

member 0£ the Indu try or to any other party except to such other 

Governm ntal a?"encies as may be directed by the National Industrial 

Recovery Board. 

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

proper for the carrying out of any 0£ its activities provided for 

herein provid 0 d that nothing herein shall relieve the Code Authority of its duties or responsibilities under this Code and that such 

trade asso iations and aO'encies shall at all times be subject to and 

comply with the provi ions hereof. 

( e) To make recommendations to the National Industrial Recovery Board for the coordination of the admini tration 0£ this Code 

with such other codes, if any, as may be related to or affect members 

of the Industry. 

(f) 1. It being found necessary in order to support the administration of this Code and to maintain the standards of fair competi-
84 

tion hereunder and to effectuate the policy of the Act, the Code 

Authority is authorized: 

(a) To incur such reasonable obligations as are necessary and 

proper for the foregoing purposes, and to meet such obligations 

out of fun ls which may be raised as hereinafter provided and 

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

(b) To submit to the National Industrial Recovery Board for 

its approYal, subject to such notice and opportunity to be heard 

as it may deem nece ary (1) an itemized budg t of its e timated 

expenses for the foregoing purposes, and (2) an equitable basis 

upon which the funds nece sary to support such budget shall be 

contributed by members of the Industry; 

( c) After such budget and basis of contribution have been 

approved by the National Industrial Recovery Board, to determine and obtain equitable contribution as above set forth by all 

members of the Industry, and to that end, if neces ary, to 

institute legal proc 0 edings therefor in its own name. 

2. Each member of the Industry shall pay his or its equitable 

contribution to the expenses of the maintenance of the Code Authority, determined as hereinabove provided, and subject to rules and 

regulations pertaining thereto issued by the National Indu trial 

Recovery Board. Only members of the Industry complying with 

the code and contributing to the expenses of its admini tration as 

hereinabove provided, (unless duly exempted from making such contribution) shall be entitled to participate in the selection of members 

of the Code Authority or to receive the benefits of any of its oluntary activities or to make use of any emblem or insignia of the 

National Recovery Administration. 

3. The Code Authority shall neither incur nor pay any obligation sub tantially in excess of the amount thereof in its appro ed 

budget, and shall in no event exceed the total amount contained in 

the approved budget except upon approval of the ational Indu -

trial Recovery Board; and no subsequent budg t shall contain an 

deficiency budget item for expenditures in excess of prior budcret 

estimat s xcept those which the ational Indu trial R ov r Board 

shall have so approved. 

(g) To recommend to the National Indu trial R co-v r B ar l 

any action or measur s de m d ad i able, in luding fair trad pra -

tice pro · ions to go ern m mber of the Indu try in th ir r lation 

with each oth r or ith other trad s or indu tri ; m a ur f r indu trial plannino- and stabilization of emplo m nt,~ an in lu lin 

modification of this od w hi h hall b com tl cti-v a part 

h r of upon a ppr val by th ational In u tri, l R ' ar 

aft r uch noti c and h arino- a it may s1 if . 

(h) T mal a tud with a vi " of l t n 1ining he h r 

abli hm nt f Rul of Fair Tn l Pr, ti in lu lino- al liti 

tan lar I. ar n in th Indu try. Th fin lino-~ an 1 r mm n laii n. f th nth rit ' i 'th r ith , u ·h rul . i , n ~ 

a it may fin 1 n e , hall within four mouth a t r th l i ·11 

f h I rman n cl uth rit. b u 11itt l t h Tt ti nal Indu tri 1 R c v r ar 1 an 1 aft r ~n h l arin , n 1 irw . tio-a ion 

a it ma. pr rib u h rnl a it m. cl icrna appr '" if 

an 1 , hall b made a rt o thi l . 
85 

ARTICLE VII-11 ODIFIC TION 

1. This Code and all the provision th reof are, expr sly made 

subje t to the right of the President, in a corclance with the provisions of sub-section (b) of Section 10 of the National Inclu trial 

RecoYery Act, from time to tim·e to cancel or modify any order, 

approval, license, rule, or reo-ulation is ued under Title I of said Act 

and p cifr,ally but without limitation, to the right of the President 

to cancel or modify his approval of this Code or any condition 

impoE'ed by him upon his approval thereof. 

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

amen le l, modified, or supplemented, such amendm·ent, modification, 

or u1 plement to be based upon application to the National Industrial Recovery Board and such notice and hearing as it shall 

specify, and to become effectiY0 on approval of the President. 

ARTICLE VIII-MONOPOLIES, ETC. 

Jo provisions of this Cod shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterpri es. 

ARTICLE IX-PRICE INCREASES 

"'\Yl ereas the policy of the Act to increase real purcha ing power 

will be made more diffi ult of consummation if prices of goods and 

services increa ·e a rapidly as wages, it is recognized that price increases except such as may be r quired to meet individual cost hould 

be delayed. And when made, such increa es should, so far as possible, b 0 limited to actual additional increa es in the seller's costs. 

ARTICLE X-EFFECTIVE DA TE 

This Code shall become effective on the second Monday after 

approval by the Pre ident. 

ApproYed ode No. 529. 

Registry ~o. 698--1-30. 

0 
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