Approved Code No. 17 4 Registry No. 807-1-06 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

RUBBER TIRE 

MANUFACTURING INDUSTRY 

I 

i All 

AS APPROVED ON DECEMBER 21, 1933 

BY 

PRESIDENT ROOSEVELT 

_ .. --

U.S. OEP~TOP\ 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

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V 
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Approved Code No. 174 

CODE OF FAIR COMPETITION 

FOR THE 

RUBBER TIRE MANUFACTURING INDUSTRY 

As Approved on December 21, 1933 

BY 

PRESIDENT ROOSEVELT 

Executive Order 

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 Rubber Tire Manufacturing Industry, 

and hearings having been held thereon and the Administrator having 

rendered his report containing an analysis of the said Code of Fair 

Competition together with his recommendations and findings with 

respect thereto, and the Administration 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 sub-section (a) of Section 3 of the said Act have 

been met: 

NOW, 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 it is hereby approved, upon condition 

that, without in any way limiting the effect of Section 10 (b) of 

Title I of the National Industrial Recovery Act, or of Section 1 of 

Article IX of said Code, I specifically retain the right to cancel 

this approval of said Code, or to modify said Code in such manner 

as may be required to prevent any unfair tra le practices within the 

Rubber Tire Manufacturing Industry which may become evident in 

any investigations by the Federal Trade Commission or in the a pplication of aid Code; and 

28702°-296-48--33 (335) 
336 

The Administrator is hereby directed to conduct such investigations as may be necessary to advise me fully within ninety days 

concerning the existence or development of any unfair trade practices 

within said Industry, utilizing the aid of the Federal Trade Commission in the expeditious determination of any complaints concerning such unfair trade practices. 

Approval recommended: 

HUGHS. JOHNSON, 

Administrator. 

THE WHITE HousE, 

FRA KLIN D. ROOSEVELT. 

D ecem,ber Bl, 1933. 
THE PRESIDENT' DECEMBER 20, 1933. 

The White House. 

Sm : The proposed Code of Fair Competition for the Rubber Tire 

:Manufacturing Industry wa submitted to the Administrator on 

July 31, 1933. It was reconsidered by the Industry and a revised 

code wa. submitted on October 3, 1933, by the Rubber Manufacturers 

As ociation, representing approximately 85% of the members of the 

Industry and volume of production. The Hearing was conducted in 

vV ashington on October 20, 1933. The Code was revised during the 

recess of this Hearing and is submitted in its present form for approval. Every person who requested an appearance was properly 

heard in accordance with statutory and regulatory requirements. 

HOURS OF WORK 

Under this Code, factory employees are limited to 36 hours per 

"-eek averaged over a calendar year, with a restriction of 8 hours per 

day and 42 hours in any one week. Overtime in excess of 3G hours 

per week shall be paid at the rate of time and one third. 

Maintenance crews, engineer firemen, shipping crews, and tire 

testers are limited to 40 hours per week and 8 hours per day, except 

in cases o-f emergency. Overtime in excess of 40 hours per week or 

8 hours per day shall be paid for at the rate of time and one third. 

Watchmen are limited to 84 hours in any two-week period with one 

day off in seven. 

Accounting, clerical, office, service, sales, or other employees ( except 

outside salesmen) receiving $35.00 per week or less, are limited to an 

average of 40 hours a week over the period of one month, but in no 

ca e shall they work more than 48 hours in any one week. Salaried 

employees receiving more than $35.00 per week and outside alesmen 

arc not restricted to any maximum hour . 

,,, AGES 

This Code provide for a minimum wage of $0.40 per hour unless 

the rate for the same class of work on July 15, 1929, was less than 

$0.40, in which ca. e the rate per hour shall not be less than the rate 

paid on July 15, 1929. In no event shall the rate per hour be less 

than $0.35. Apprentices, during a six weeks' apprenticeship, may be 

paid not le s than 80% of these minimum rate·. Such apprentices 

shall not con titute more than five percent of the total employees in 

any one establishment. 

Minimums for salaried employees range from $12.00 per week in 

towns of less than 2,500 population to $15.00 per week in cities of 

500,000. Clerical apprentices, office bo) s and girls may be paid not 

le than 80% of these minimums but may not constitute more than 

(337) 
338 

five percent of the total office employees in any one establishment. 

Provision is made for superannuated and disabled employees; for 

equalization of rates of pay for men and women performing the 

same work; for equitable adjustments of pay schedules of factory 

employees above the minimum and for the posting of the labor provisions of the Code. 

OTHER PROVISIONS OF THE CODE 

The Code provides that the Code Authority shall undertake a 

study of costs in the Industry and submit recommendations to the 

Admini trator within sixty days from the approval of the Code, for 

the incorporation of an adequate cost recovery provision in the Code. 

The Industry believes that the problems presented by the existence 

of widely varying selling programs and the use of many channels of 

distribution make such an inquiry necessary. Final adoption of any 

provisions regarding selling below cost is specifically subject to the 

approval of the Administrator. 

The Industry has adopted twenty-seven trade practice provisions 

in this Code, designed to eliminate various forms of unfair competition. The Code further provides that the Code Authority shall 

make recommendations to the Administrator at a later date, in 

regard to the adoption of a standard warranty, the status of time or 

mileage contracts, the simplification of the number of lines of 

tires, the establishn1ent of a committee to coordinate this Code with 

that of the Retail Rubber Tire and Battery Trade and the adoption 

of an open price system for the Industry. 

ECONOMIC EFFECT OF CODE 

The following tabulation shows the effect of the depression on 

the Industry: 

1929 1932 Decrease 

Sales __ ____ ______ ___ ____________________ ________ ______ ____________ $675,000,000 $300,000,000 

Production (casings)._ ____________________________________________ 69,000,000 40,000,000 

W age earners ______ _____ __________________________________________ 74,700 38,800 

Number of companies____________________________________________ 62 35 

~ 48~ 

44o/o 

The Industry has already made the wages and hours provisions of 

this Code effective in a large degree, as is indicated by the following 

table: 

- -

j Productio 

casings 

Employ- n ment wage earners 

1933 May ___ _____________________ __ __________ ____ _______________ 5,200,00 

June __ - - _ ·-· --- ______ . ___ . ____ . ____ -· _. _______ . _____ __ . __ .. 6, 100, 000 

Ju I y _ - • -•.• __ • __ •••• _ ••• __ __ __ • ____________________ _______ . 5, 700, 00 

August___________ _____ _________ __ ____________ ______________ 5, 000, 00 

September_ __ . ___ ______ __ ______ ____ . __ ___ ____________ ._.__ _ 4, 000, 00 

October ___ . _________ • ________ __ ______ __ . __________________ . 3, 400, 00 

0 38,545 I 44,148 

0 49,680 

0 52,962 

0 52,850 

0 60,400 

--

Average I A verago hours hourly 

per week I earnings 

\ 

38 $0.585 

42 . 579 

38 .620 

32 .654 

30 . 681 

31 .688 
339 

October production was only 65 % of the production in May. 

Ne-vertheles employment increased over 30% and average hourly 

earnings increased approximately 17 7c . Average hours per week 

have declined due to seasonal decline in production. which invariably 

occurs during the months of October, November, and December. 

No other Industry can derive greater benefits from the Act. This 

Code in no sense embodies u complete solution of all the problems 

of the Industry. It does represent a real beginnjng. The reclamation of this Industry from the destructiYe competition which exists 

must be a continning task over a long period of time. 

FINDINGS 

The Administrator finds that: 

1. This Code ~omplies in all respects with the pertinent phrases 

of Title I of the Act, including but without limitation Subsection 

(a) of Section 7, and Subsection (b) of Section 10 thereof. 

2. The Rubber Manufacturers' Association, Incorporated, is truly 

representative of the Rubber Tire Manufacturing Industry and its 

bylaws contain no inequitable re trictions on membership. 

3. The Code is not designed to promote monopolies or to eliminate 

or oppress small enterprises and will not operate to discriminate 

against them. The Code wil] tend to effectuate the policy of Title I 

of the National Industrial Reco-very Act. 

It is recommended, therefore, that this Code be approved. 

Respectfully, 

HUGH s. JOHNSON, 

Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

RUBBER TIRE MANUFACTURING INDUSTRY 

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

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

Rubber Tire Manufacturing Industry, and upon approval by the 

President, its provisions shall be the standards of fair competition for 

this Industry, and shall be binding upon every member thereof. 

ARTICLE I 

A. DEFINITIONS 

SECTION 1. The term "Rubber Tire Manufacturing Industry " or 

"Industry", as used herein, shall mean the manufacture for sale in 

the continental United States (including Alaska) and sale at wholesale by manufacturers or subsidiaries or affiliates of the same of solid 

or pneumatic rubber tires and/or pneumatic rubber tubes, together 

with such relat-ed branches or divisions as may from time to time be 

included under the provisions of this Code by the President, after 

such notice and hearing as he may prescribe. 

SEc. 2. The term" member of the Industry" or" member" as used 

herein includes, but without limitation, any individual, partnership, 

association, corporation, or other form of enterprise engaged in the 

manufacture or both manufacture and sale at wholesale of any products of the Industry, or any subsidiary or affiliate of the same engaged 

in the sale at wholesale of any products of the Industry. 

SEc. 3. The term "member of the Code" as used herein, includes 

any member of the Industry wh0i shall expressly signify assent to 

this Code. 

SEc. 4. The term "employee" as used herein, includes any and all 

persons engaged in the Industry, however compensated, except a 

member of the Industry. 

SEc. 5. The term "Association" as used herein, shall mean the 

Rubber Manufacturers Association, Incorporated, a corporation organized under the laws of the State of Connecticut and having its 

principal office at 250 ,vest 57th Street, New York, New York. 

SEC. 6. The term " dealer " a usea herein, shall mean anyone, 

whether or not a member has a financial interest therein, who purchases a member's brand of tires and/or tubes, from a member or 

jobber, under contract for sale, either absolute, conditional, or on 

consignment, and who in turn re ells to other than employees or 

affiliated companie , at least 75% of the tires or tubes so purchased. 

Company retail stores, whether wholly or partly owned, shall be 

cla sified as dealers. 

(3-!0) 
341 · 

SEC. 7. The ·term "jobber" as m-ed herein, shall mean anyone who 

sells at least 75% of his total volume of tires and/ or tubes through 

or to dealers for resale to con umer whether or not such dealers are 

owned or affiliated with or controlled by such jobber, and who performs the service of a jobber such as maintaining a stock, selling, 

shipping, billing, and carrying accounts r eceivable. 

SEc. 8. The term " warehouse dealer " as used her ein, shall mean 

a dealer who acts as a shipping agent for a member of the Industry 

with sales, credit , and collections handled by that member. 

SEc. 9. The term "the President " a. u eel herein, shall mean the 

President of the Unite l States. 

SEc. 10. The term "the Admini trator " as used her ein, shall mean 

the Administrator appointed under Title I of the National Industrial 

Recovery Act. · 

SEc. 11. The term "the Act ", as used herein, shall mean the National Industrial Recovery Act. 

SEc. 12. Population for the purposes of this Code shall be determined by reference to the late t Federal Census. 

ARTICLE II 

A. ADMINISTRATION AND ORGANIZATION 

SECTION 1. To further effectuate the policies of the Act, a Tire 

Code Authority (herein referred to as the Code Authority) is hereby 

set up for the administration of this Code. 

SEc. 2. The Code Authority shall consist of eight persons who 

shall be selected by the Indu try by a fair 1nethod of selection, according to such rules as it may determine. The Administrator, in 

his discretion, may appoint not more than three additional members, 

without vote, to represent the Administrator, without expense to the 

Industry or Association. No two of the members of the Code Authority or their alternates shall be affiliated with any single member 

of the Industry. 

(a) 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 Administr ator may provide such hearings 

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

Authorjty is not truly representative or does not i11 other respects 

comply with the provisions of the Act, he may require modifi cation 

in the method or selection of the Code Authority. 

(b) The President of the Association and its General :Manager 

shall act as ex-officio members of the Code Authority with no voting 

power. The General Manager of the Association shall act as Chairman of the Code Authority. 

( c) One alternate shall be selected for each men1ber of the Code 

Auth?rity, with full power to vote in the absence of his principal. 

Provided that no two alternates shall be affiliated with any single 

member of the Industry. 

( cl) Should any matter come before the Code Authority which 

~ pecifically involves acts, conduct, or the interest of a member of the 

Industry with "hich any 111.ember of the Code Authority i associated or emplo3 eel, uch member of the Code Authority shall be 

'.. 870:::! 0 -2!)6-48-- 33- -2 
342 

disqualified to act in such matter. The designated alternate shall 

act in place of the disqualified member of the Code Authority. 

( e) Meetings shall be called by the Chairman either at his dis- cretion, or on ,_ he suggestion of any thr e members of the Code 

Authority. The Code Authority shall determine it own rules of 

procedure. 

SEc. 3. The Code Authority shall have the duties and powers 

herein provided subject to the right of the Administrator, on review, 

to disapprove any action taken by the Code Authority. 

(a) The Code Authority shall make investigations as to the 

functioning and observance of any provisions of this Code at its 

own in tance, or on complaint by any person affected, and report its 

findings and recommendations to the Administrator. 

(b) The Code Authority hall study the trade practice provisions incorporated in this Code, and the operation thereof and 

shall make such recommendations to the Administrator from time 

to time which it considers desirable, for modification or addition 

thereto, provided such recommendations shall have been approved 

by members of the Code as provided in Article X. Upon approval 

by the Administrator, after such hearing as he may prescribe, such 

recommendations shall become a part of this Code and have full 

force and effect as provisions hereof. 

( c) The Code Authority may at its discretion present recommendations to the AdJninistrator, based on conditions in the Industry, as they may develop :from time to time, provided E>uch recom.-

mendations shall have b 0 en approved by members of the Code 

us provided in Article X. Such ·recommendations shall be designed 

to :facilitate the operation of the provisions of this Code and the 

policy of the Act. 

( d) The Code Authority may require reports from members of 

the Indu try in respect to hours o:f labor wages, conditions of employment, number of employees, plant capacity, production, orders, 

shipment , inventories, and any other matters pertinent to this Code 

in order that the Pre ident may be kept informed with respect to 

the observance and perform'.lnce of the Code. 

( e) The Code Authority may, at its discretion, set up any or all 

of the following committees or any other committees, if their 

existence will further effectuate the policies of the Act, viz: 

Accounting Industrial Relations 

Complaints and Grievances Statistical 

Fair Practices 

( f) The Code Authority may set up :1 committee on imports whose 

duty it shall be to investigate and inform the President as to the 

importation o:f competitive articles into the United States in substantial quantities or increasing ratio to domestic production, on 

such terms or under such conditions as to render ineffective or to 

seriously endan~er the maintenance of this Code as provided in 

Section 3 ( e) ot the Act. The Committee shall make such reports 

of its findings to the Code Authority w110 shall inform the President 

through the proper channels. 

SEc. 4. The Association is hereby designated as the agency :for 

the collection of statistics, data, reports, and information under the 
343 

Code, provided that no inequitable restrictions upon rnemb~rship 

therein shall at any time be imposed. 

(a) Every member of the Industry shail prepare nnc.1 file with 

the Association at such times and in such manner and form as the 

Code Authority may require, statistics of plant capacity, production, sales, orders received, inventories, wage rates, hours of work, 

:ind such other data or information as the Admini trator may, fr m 

time to time, require. Such reports and/or records may be either 

sworn or unsworn as required. 

(b) In addition to information required to be submitted to the 

cde Authority, every member of the Indu. try c:hall furni ·h ci.irectly 

to governmental agencies such statistical information as the Administrator may deem necessary for the purposes recited in Section 3 (a) 

of the Act. 

( c) Except as otherwise provided in the Act, all such stati tics, 

data. nnd information filed in nccordance with this Article shall be 

confi'clential, and the reports and r ecords from any individual member of the Industry shall only be revealed to the Administrator or 

other governmental authority, to the extent necessary for the administration and enforcement of the provisions of this Code. 

( d) If the A sociation shall ha Ye r eason to believe that any reports submitted by a member are inaccurate, such reports may be 

verified by a disinterested anc1 jmpartial agency designated by the 

Code Authority, and for such purpose such agency shall have 

access to any and all relevant books ancl records of such member. 

( e) Any refusal or per istent or deliberate neglect by any member 

of the Industry to file or furni h information required under this 

Article shall constitute an unfair trade practice and a violation of 

this Code. 

SEc. 5. Each member of the Code shall be entitled to participate in 

the activities of the Association in connection with the administration 

of the Code. Any other member of the Industry n1ay become entitled to participate by becoming a member of the Code. Each 

member of the Code shall bear an equitable share of the cost of 

maintenance of the Code Authority, either by becoming a member of 

the Association or by paying to the Association a sum equal to its 

reasonable share of the expenses incurred in the administration of 

this Code, as determined by the Code Authority, subject to review 

by the Administrator. 

ARTICLE III 

A. INDUSTRIAL-RELATIONS POLICIES 

SEC'L'ION 1. In compliance with Section 7 (a) of the Act it is 

provided: 

(a) That 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 employer3 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) That no employee and no one seeking employment shall be 

required as a condition of employment to join any company union 
344 

or to refrain from joining, organizing, or assisting a labor organization of his own choosing; and 

( c) That employers shall comply with the maximum hours o:f 

labor, minimum rate3 of pay, and other conditions of employment 

approved or prescribed by the President. 

SEO. 2. No person under 16 years of age shall be employed in the 

Indu try. No person under 18 years of age shall be employed on 

any milling or calendering operations or any other operations where 

there may be recognized hazards connected with the job or operation. 

SEC. 3. No provision in this Code shall supersede any State or 

Federal law which imposes more stringent r equirements on employers as to age of employees, wages, hours of work, or as to safety, 

health, sanitary, or general working conditions, or insurance, or fire 

protection, than are imposed by this Code. 

ARTICLE IV 

A. HOURS 

SECTION 1. Except as provided in Section 2, no factory employee 

shall work or be permitted to work, in excess of an average of 36 

hours in any one week, av raged over a calendar year, nor more 

than 8 hours in any 24-hour period. Provided that no such employee hall work or be permitted to work more than 42 hours in 

any one week. For all hours worked in excess of 36 hours per week, 

overtime shall be paid at the rate of time and one third. It is the 

intent that the hour worked by employees under this Section shall 

be consecutive, except that reasonable provision may be made for 

eating period. 

SEc. 2. Maintenance crews, engineers, firemen, shipping crews, and 

tire testers shall not work or be permitted to work in excess of 40 

hours in any one week nor more than 8 hours in any 24-hour period. 

Provided, however, that this limitation of hours shall not apply in 

cases of emergency, but in such cases all hours worked in excess of 

40 hours in any one week or 8 hours in any 24-hour period shall be 

paid for at the rate of time and one third. 

(a) '\Vatchmen shall not work or 'he permitted to work more than 

84 hours in any two weeks' period, provided that such employees 

shall have one day off in seven. 

SEc. 3. Accounting, clerical, office, service, sales, or other employees ( excepting outside salesmen) shall not work, or be permitted 

to work, in excess of an average of 40 hours a week over the period 

of a month, nor more than 48 hours in any one week. 

SEc. 4. The maximum hours fixed in Sections 1, 2, and 3 shall · not apply to salaried employees in any managerial, executive, clerical, supervisory, or technical capacity receiving more than $35.00 

per week, nor to any outside salesmen. 

SEc. 5. No employee hall work, or be permitted to work, for a 

total number of hours in excess of the number or hours prescribed 

for each week and day, whether employed by one or more employers; 

provide 1, however, that if any employee works for more than one 

emplo3 er for a total number o-f hours in excess of such maximum 
345 

without the knowledge or connivance o-f any one of his employers, 

such employer hall not be d emed to have violated this section. 

SEc. 6. Jo employee shall be classified in any of the foregoing 

exempted cla ses unless he performs functions identical with those 

performed by employees thus classified on June 16, 1933. 

B. WAGES 

SECTION 1. Except as herein below provided, no employee shall be 

paid in any pay period less than at the rate of forty cents ($0.40) 

per hour. Provided, however, that where the hourly rate for the 

same or similar class of work on July 15, 1929, was less than forty 

cents ($0.40) per hour: no employee shall be paid at less than the 

rate per hour paid on July 15, 1929, but in no event shall the rate. 

per hour be less than $0.35. (a) Apprentices, during a six weeks' apprenticeship may be paid 

not less than eighty percent of the above specified minimum rates. 

Such apprentices shall be understood as persons having no previous 

experience or employment on similar work in the Industry and shall 

not constitute, more than five ( 5) per cent of the total employees 

covered by this Section, in the employ of any member. SEo. 2. No salaried employee ( except outside salesmen, office girls 

and boys, and clerical apprentices) shall be paid less than .at the 

rate of: 

$15.00 per week _______________ Cities o-rnr -00,000 population or in the immediate trade area of such a city. $14.50 per week ______ ____ _____ Cities between 250,00-0 and 500,000 popula tion 

or in the immediate trade area of such a city. $14.00 per week _______________ Cities between 2,500 and under 250,000 population or in the immediate trade area of such 

a city. $12.00 per week ___ ______ ______ Towns of less than 2,500 population. 

(a) Clerical apprentices during a six months' apprenticeship and 

office boys and girls may be paid not less than 80% of the above 

minimums. Such excepted office employees shall not exceed 5% of 

the total number of ern.ployees covered by Section 2, in the employ 

of anv member. 

SEc. 3. The provisions in Article IV-B shall not apply to any 

employee partially incapacitated through age, injury, or disease; 

provided, however, that such employee shall receive not less than 

$0.25 per hour. Each member of the Industry shall report to the. 

Association monthly the number and names of employees so 

classified. 

SEc. -±. Female employees performing the same work as male 

employees in manufacturing operations shall receive the same rates 

of pay as male employees. 

SEc. 5. Article IV-B establishes a minimum rate of pay which 

shall apply whether an employee is actually comnensated on a time 

rate, piecework, or other basis. ... 

SEc. 6. Equitable adju tments in all pay schedules of factory 

employees above the minimum shall be made within thirty (30) days 

after the appro, al of this Code by any members who have not here-
346 

tofore made such adjustmentr•, and the first monthly reports of 

wages required to be filed under this Code shall contain full information as to all wage increases made since May 1, 1933. 

C. POSTING OF LABOR PROVISIONS 

SECTION 1. Every member of the Industry shall post in conspicuous places in all departments of his establishment or establishments 

copies of Articles III and IV of this Code. 

AnTICLE V 

A. COST AKD MARKET STABILIZATION 

SECTION 1. The Code Authority hall immediately upon approval 

of this Code proceed to a study of a market stabilization plan based 

on cost control. 

(a) A standard uniform system of accounting, for the guidance of 

each member of the Industry, shall be developed under the direction 

of the Code Authority. 

(b) The Code Authority shall designate, with the approval of the 

Administrator~ a disinterested and impartial agency, to procure and 

compile the data required to complete the study and to act as the 

agency through which such compiled data shall be transmitted to the 

Code Authority, in order that all cost data of members of the Industry shall be kept confidential. Each member of the Industry shall 

furnish such agency with such reports as may be designated by the 

Code Authority. 

( c) The Code Authority shall confer with the Administrator from 

time to time in the course of formulating its r ecommendations as to 

the plan for such market stabilization herein a.bove proposed. The 

Code Authority shall make an initial report concerning progress in 

the formulation of such a plan within thirty (30) days after the approval of thi " Code. Final recommendation shall be submitted to 

the Administrator within sixty ( 60) clays from date of Rpproval of 

this Code. 

Si:c. 2. After such market stabilization plan based on cost control 

shall have received approval by the Industry and by the Administrator, such plan shall become a part of this Code. Violation of any 

provision of such plan shall be considered an unfair trade practice 

and . uhject to the penalties of the Act. 

ARTICLE VI 

A. TRADE PRACTICES 

SECTION 1. No 1nember shall use advertising ( whether printed, 

radio, display, or of any other nature) or other representation whicll 

1s inaccurate in any material particular or which refers inaccurately 

to competitors or their commodities, prices, values, credit terms, 

policies, or services. No member shall, in any way, misrepresent any 

commodity (including its use, trade mark, grade, quality, quantity, 

origin, size, specifications) or his credit terms, values, policies, services, or the nature or form of the business conducted. 
347 • 

SEC. 2. No member shall use advertising or selling methods or 

credit terms which tend to deceive or mislead a customer or prospective customer. 

SEc. 3. No member shall publi h or circularize unjustified or unwarranted threats of legal proceedings which tend to or have the 

effect of hara ·sing competitor or intimidating their cu tomers. 

SEc. 4. No member "hull ecretly off er or make any payment or 

allowance of a rebate, refund, commi sion, credit, unearned discount 

or excess allowance, whether in the form of money or otherwise, for 

the purpo e of influencing a sale; nor shall a member secretly extend 

to any customer any special service or privilege not extended to all 

customers of the same class. 

SEc. 5. No memb r shall give, permit to be given, or offer to give 

anything of value for the purpose of influencing or rewarding the 

action of any employee or agent of another, in relation to the business cf the employer of such employee, or the principal of such 

agent without the lmo\\]edge of such employer or principal. 

SEc. 6. No member shall, directly or indirectly, give or permit to 

be given or offer to give, money or anything of value, to any customer or pro pecti ve customer, or to anyone el e upon the instigation 

and for the benefit of any customer or pro,spective customer, to induce 

such customer or prospective customer to purchase tires or tubes 

from such members. 

SEc. 7 . .r o rriember shall secure confidential information concerning the business of a competitor by a false or misleading statement 

or representation, by a false impersonation of one in authority, by 

bribery or by any other unfair method. 

SEc. 8. No member shall unfairly attempt to induce the breach of 

an existing contract between a competitor and his employee or customer or source of supply; nor shall any such member unfairly interfere. with or obstruct the performance of uch contractual duties or 

services. 

SEc. 9. No member shall brand or 1nark or pack any commodity 

in any manner which tends to deceive or mislead purchasers with re-

~pect to the brand, grade, quality, quantity origin, size, or specification of such commodity. 

~Ee. 10. After February 1, 193-:l:, no member shall manufacture any 

automobile, truck, and/or bus pneumatic tires which do not clearly 

indicate on the side wall o.f the ca ing and on the label the number 

of cord plies from bead to bead built into the casing. Breaker strips 

shall not be construed as plies for side wall or label marking. Plies 

extending from the heel of one bead to the heel of the other bead, if 

of substantially the same con,struction as other plies in the tire, shall 

not be construed as breaker strips. The Code Authority may designate such markings for _purposes of this Section. 

SEc. 11. The unauthorized use by any member either in writing 

or oral form, of trade marks, trade names, or slogans identical with 

or in imitation of, those already in use by any other member shall 

be prohibited. ' 

SEC: 12. ~? member shall withl:iold from or insert into any invoice 

anyth1no- w111ch would make the invoice a false record, wholly or in 

part, of the transaction to which it refers, or make any arrangement 

which contemplates payment or settlement contrary to the face of the 
348 

invoice. No member shall postdate or predate orders, invoices, or 

contracts. This Section shall not prohibit the granting of a bonus 

in accordance with any member's r egular program. 

SEc. 13. vVithin ten days after the effective date of this Code, each 

member shall file with t he Association all Consumers' Preferred 

"\iVholesale and State Li ts. T he Consumers' L ists shall be the lists 

from which dealer and/ or jobber discounts sh all be applicable and 

shall apply to the sale of tires and/or tubes to owners of less than 

five vehicles. The Preferred "\iVholesale Lists shall apply to commercial operators of five or more vehicles. The State Lists shall 

apply to all State, County, and municipal accounts. The£e lists shall 

be effective immediately upon such filing. (a) Thereafter, no member shall change such lists without filing 

new lists with the A,ssociation, stating the effecti Ye date of such 

changes ; pi.·ovided that if such change involves a reduction such 

eAfective date shall be not less than ten days from the date of filing 

of the new lists. 

(b) The Association shall, promptly after receipt of such r evised 

lists, noti.fy all members affected. Such affected members may thereupon file with the Association revisions of their lists which , if filed 

prior to the date when the revised lists first filed shall go into effect, 

1nay become effective on said date. 

( c) No member shall fill at old prices orders received or showing 

po,stmark after 12: 01 A.M. of the day upon which his new lists become effective. No member shall give any information to any class 

of trade regarding price changes prior to the date of filing thereof 

with the Association. 

SEc. 14. No member shall solicit the reinstatement of any order 

previously cancelled, at other than his own current prices. 

SEc. 15. Effective immediately upon the signing of this Code by 

the President, no member shall sell or off er for sale· any tires or 

tube,s which have been, or should be, properly classified as "seconds", 

except to employees for their own personal use and not for r esale 

purposes. No member shall sell " firsts " as " seconds under any 

circumstance~. 

SEc. 16. No member shall sell or dispose of any tire,s or tubes 

of obsolete, discontinued design or change-overs at special prices 

without first 

(a) Notifying the Code Authority two (2) weeks in advance of 

the number of tires or tubes to be so disposed of, with the reasons 

therefor. 

(b) Stating discount below the regular established price at which 

they are to be sold. 

( c) Branding such tires, other than change-oYers, so to be sold 

with a suitable design that shall be designated by the Code Authority. 

( cl) Obtaining the approval of the Code Authority for such disposal. If the Code Authority denies approval or fails to notify such 

member of its decision within ten (10) days, such member may appeal to the Adrn.inistrator who shall have power to grant approval. 

The Code Authority shall advise all members of t he Industry simultaneously of such authorizations. 
349 

SEc. 17. For th<:i purposes o:f Sections 15 and 16 herein," seconds", 

obsolete and discontinued designs and change-overs shall be defined 

as follows: 

(a) "Seconds" shall be defined as all tires and/ or tubes which 

have become defective in the course o:f manufacture. 

(b) Obsolete and discontinued designs shall be defined as all 

tires and/ or tubes which have actually been discontinued from production. 

( c) Chan~e-over tires shall be defined as original equipment tires 

which have been removed :from new vehicles and which are practically new or show only slight wear. 

SEc. 18. No inember shall extend dealers' prices to persons other 

than dealers as herein defined. If the application of this definition 

in any particular case should work an unjust hardship on any member 

of the Industry or customer, such member or customer may appeal 

to the Code Authority which shall have power to make uch exception as justice may require. 

SEc. 19. No member shall extend jobbers' prices to dealers as 

herein defined. If the application of this section in any particular 

case should work an unjust hardship on any member of the industry 

or customer, such member or customer may appeal to the Code Authority ~hich shall have power to make such exception as justice 

may require. 

SEc. 20. No member shall take over from any dealer or jobber, 

either by purchase or exchange, any tires and/ or tubes of other 

members. 

SEc. 21. No member shall offer or give any tires or tubes, or sell 

any such tires or tubes at reduced prices, for test purposes without 

prior approval by the Code Authority. 

SEc. 22. No member shall offer to a dealer the discounts and/or 

allowances given to a warehouse dealer unless the dealer shall be 

required to perform the services of a warehouse dealer. 

SEC. 23. The Code Authority shall within thirty (30) days after 

the effective date, obtain from the Tire Committee of the Tire and 

Rim Association standard specifications for the Industry covering 

cross sectional diameters, anti-skid depths, total tread thicknesses 

and such other specifications as in their judgment will standardize 

manufacturing tolerances within the Industry. When these standards shall have been submitted to the Industry and approved in accordance with Article X, the Association shall send a copy of such 

standards to every member of the Industry. Such standards shall 

become effective ninety (90) days thereafter and any deviation in 

the manufacture of any tires beyond the maximum so established, 

shall constitute an unfair trade practice unless such tires which exceed these specifications shall be sold at a proportionately higher price 

which truly reflects their higher cost. The Code Authority upon 

request of any men1ber shall investigate and rule upon any disputed 

cases. Should the application of this Section in any particular case 

work an unjust hardship on any member o'f the Industry, such member may appeal to the Administrator who shall have power to grant 

such exception as justice may require. 
350 

SEC. 24. Effective immediately upon the signing of this Code by 

the President no, member shall accept written or verbal orders, agreements, or contracts for the sale of tires or tubes to any commercial 

and/ or national account, the effect of y,;hich is to guarantee prices 

on future deliveries. 

SEc. 25. Effective immediately upon the signing of this Code by 

the President no member shall use terms of payment to national or 

commercial accounts exceeding the customary 10th proximo terms or 

renew or extend existing orders, agreements, or contracts as a subterfuge, in violation of Section 24. For purposes of interpretation of 

Section 24 orders delivered within thirty (30) days after date of 

order may be construed as "immediate delivery"; deliveries after 

such thirty (30) days' period shall be construed as "future delivery" 

and billed at prices in effect on delivery date. 

SEc. 26. No member shall offer for sale a rebuilt and/or retreaded 

tire without marking on the sidewall thereof a suitable design to be 

approved by the Code Authority. 

SEC. 27. Violation of any of the provisions of Article VI shall be 

considered an unfair trade practice and subject to the penalties of the 

Act. 

ARTICLE VII 

A. COMPLAINTS AND APPEAL 

SECTION 1. Any interested party shall have the right of complaint to the Code Authority and prompt hearing and decision 

thereon in respect to any m.atter arising under this Code. Such 

complaint must be filed in writing with the Code Authority within 

a reasonable period of time after the complaint arises. 

SEc. 2. Any interested party shall have the right of appeal to the 

Administrator under such procedure as he shall prescribe in respect 

to any decision, rule, regulation, order, finding, or omission to act by 

the Code Authority. 

SEc. 3. The Code Authority shall be specifically charged with the 

responsibility for proceeding against any member of the Industry 

who shall violate any provisions of this Code. 

ARTICLE VIII 

A. MONOPOLIES 

SECTION 1. No provision of this Code shall be interpreted or 

applied in such a manner as to permit monopolies, or monopolistic 

practices, permit or encourage unfair competition; or eliminate, 

oppress, or discriminate again_st small enterprises. 

ARTICLE IX 

A. REVISIONS AND l\IODIFICATIONS 

SECTION 1. This Code and all the provisions thereof are expressly 

made subject to the right of the Pre ident, in accordance with the 
351 

provisions of Subsection (b) of Section 10 of the National Industrial 

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

approval, license, rule, or regulation i sued under Title I of said Act 

and specifically, but without limitation, to the right of the President 

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

impo ed by him upon his approval thereof. 

SEc. 2. Such of the provi ions of this Code as are not required by 

the National Industrial Recovery Act to be included herein, may, 

with the approval of the President, be modified or eliminated as 

changed circumstances or experiences may indicate. 

SEc. 3. By presenting this Code the Industry and others assenting 

thereto are not consenting to any modification thereof; and each 

reserves the right to object independently or jointly to any modified 

Code. 

SEc. 4. If any member of the Industry is likewise engaged in part, 

in any other industry or trade, this Code shall apply only to such of 

the activities of said member as are comprehended within the Rubber 

Tire :Manufacturing Industry. 

SEC. 5. The provisions of this Code now or hereafter adopted 

with rega.rd to prices, discounts, deductions, allowances, extras, 

commissions, or methods and/ or terms of sale shall not apply to 

direct export sales. Upon application to the Code Authority, any 

member of the Industry may secure exemption from such provisions of this Code in regard to sales in the course of export 

( i.e., sales destined ultjmately for export) or sales of materials 

used in the manufacture of products for export. The tern1 ' export,, shall include, in addition to shipments to foreign countries, 

shipments to territories and possessions of the United States except 

Alaska. 

ARTICLE X 

A. ALTERATIONS AND Al\IENDl\fENTS 

SECTION. 1. Any addition, alteration, or amendment to this Code 

may be proposed by any member of the Code, and after receiving 

the approval of fifty-one percent of the members of the Code, 

providing such members represent at least fifty-one percent in volun1e, shall be presented through the Code Authority to the Administrator for approval after such notice and hearing as he may 

prescribe. Provided, however, that any addition, alteration, or 

amendment which has received the approval of either a majority in 

number or in volume of the members of the Code, may, after due 

notice to all members of the Code, also be transmitted to the Administrator for his consideration. 

ARTICLE XI 

A. FURTHER RECOMMENDATIONS BY THE CODE AUTHORITY 

SECTION 1. Within sixty days after the effectiYe date of this Code, 

the Code Authority shall, after such negotiations as may be neces-• 
352 

sary, make recomm.endations to the Administrator for the equitable 

adoption of a uniform Standard Warranty by aU members of the 

Industry and all tire retailers, jobbers, ,-vholesalers, and special brand 

distributors. In the. interim, no member shall change his present 

form of warrantv. 

SEc. 2. Since the leasing of tires to taxicab and bus companies on a 

time or mileage basis is an established practice in th 0 Industry, the 

Code Authority shall rn.ake a complete study of this practice and 

submit recommendations to the Administrator within ninety clays 

from the approval of this Code for the elimination of any unfair 

practices which may exist in this fiel1d. . SEc. 3. Upon completion of the cost control plan outlined in 

Article V, the Code Authority shall make recommendations to the 

Administrator for the implification of the present number of lines 

of tires. 

SEc. 4. The Code Authority shall proceed with a survey of the 

productive capacity of the Industry and submit recommendations to 

the Administrator not later than March 1, 1934, concerning the 

desirability of limiting the creation of additional productive capacity 

in the Industry. . SEC. 5. The Code Authority pledges itself to undertake immediately a study of seasonal fluctuations in production and make recommendations to the Industry designed to afford a greater stability of 

em~loyment. 

SEC. 6. The Code Authority shall, in cooperation with the Code 

Authority to be set up for the Retail Rubber Tire and Battery Trade, 

ubmit recommendations to the Administrator for the establishment 

of a joint committee for the coordination of the Code for this Industry with that of the Retail Rubber Tire and Battery Trade, with 

a , iew to joint consideration and proper determination of any 

common problems which relate to the distribution of tires and tubes. 

SEc. 7: Within ninety days after the approval of this Code, the 

Code Authority with the approval of the members of the Code, 

in accordance with Article X , shall make recom.mendations to the 

Administrator regarding the establi hment of a complete open-price 

system f or the Industry. In the meantime, every member of the 

Industry, within thirty days after the approval of t his Code, shall 

file with the Administrator, or his designated agent, for his exclusive information , in such n1anner and form as he may request, 

all prices, discounts, bonuses, terms, and condition of sale to all 

customers, in order that the Administrator may be fully informed 

as to conditions in the Industry. 

(a ) Thereafter, no member shall sell any tires or tubes at prices 

lower or at discounts or bonuses greater or on terms or conditions 

more favorable than the prices, discounts, bonuses, terms, and conditions filed as aforesaid, unless he shall first file revised prices, discounts, bonuses, terms, and conditions with the Administrator to 

take effect in not less than ten days from date of filing. 
353 

ARTICLE XII 

A. EFFECTIVE DATE AND TER)HNATION 

SE TION 1. This Code shall become effective, except as otherwise 

specified herein, on the fir t Monday after it shall have been approved by the President of the United States. It shall continue in 

effect until J nne 16, 1935, or until such time prior thereto when the 

President shall, by proclamation, or the Congre s shall, by joint 

resolution, declare that the emergency recognized by Section 1 of 

the National Industrial Recovery Act has ended. 

Approved Code No. 174. 

Registry No. 807-1-0u. 

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