Approved Code No. 430 Registry No. 698-2-22 

NATIONAL RECOVERY ADMINISTRATION 

COD·E OF FAIR COMPETITION 

FOR THE 

PACKAGE MEDICINE INDUSTRY 

AS APPROVED ON MAY 15, 1934 

WE DO OUR PART 

-- . - I L . ., ,, "' ,,.. __ __ 

U.S. DEl'09'TOfl'Y 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

\ 

I 

For sale by the Superintenden t of Documents. Washington, D.C. - - - - - - - - Price 5 cen ts 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., and by di ·trict offices of the Bureau of Foreign 

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

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Birmingham, Ala.: 257 Federal B.ailding. 

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

Chicago, Ill.: Suite 1706, 201 North W 11 · Str et. 

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Dalla , Tex.: Chamber of Commerce Building. 

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an Francis o, 'alif. : 3J O ustomhom=e. 

S attl , '\\ ,1 ::; h.: 0!) F c1 ral Office Building. 
Approved Code No. 430 

CODE OF FAIR COMPETITION 

FOR THE 

PACKAGE MEDICINE INDUSTRY 

As Approved on May 15, 1934 

ORDER 

CooE OF FAIR COMPETITION FOR THE PACKAGE MEDICINE I N DUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provi ions of Title I of the ational Indu trial 

Recovery Act, approved June 16, 1933, for approval of a Code of 

Fair Competition for the Package Medicine In lustry and hearin.o-s 

having been duly hel l thereon and the annexed report on ~id ode, 

containing finding with re pect thereto, having been mad and 

directed to the Pre ident: 

NOvV, THEREFORE, on behalf of the Pre ident of the United 

States, I, Hugh S. Johnson, Administrator for Indu.trial Recovery, 

pur uant to authority ve ted in me by Executive Order of the 

President, including Executive Order No. 6543-A, dat c1 December 

30, 1933, ancl otherwise; do hereby incorporate by reference . ·aid 

annexed report and do find that aid Code complies in all re pects 

with the pertinent provi ion and will promote the poli y and purpo e of said Title of aid Act; and do hereby order that aid Code of 

Fair Competition be and it i · hereby approved; provided, however, that there be added to Article II, Section 1 the f ollowing sentence : 

"This definition does not include any r etailer operating under 

a retail code who performs any of the acts pecified herein solely 

for the purpo e of ale at retail to his own cu to mer and not for 

the purpo e of ale to other distributors; provid 0 d, however, that 

where a retailer operates a laboratory or plant distinct from his 

retail operations, and mploys a special group of employee to work 

primarily in such laboratory or plant di tinct from that group of 

his employee who work primarily in his retail establishment ( ) , 

and such laboratory or plant performs any of the act pecified 

herein, whether for sale to such retailer's own customers or to other 

di tributors such laboratory or plant is ~bj ect to the provisions 

of thi Code." 

HUGH S. JOHNSON, 

.Adniinistrator for I ndustrial R covery. 

Approval r ecommended : 

H. 0. KING, 

Division Acl1ninistrato1>, 

VVASHINGTON, D.C., 

May 15, 1934. 

593 0°-G44-87-34 (185) 
R E PORT TO THE PRESIDE IT 

The PRESIDE T, 

T lie 1T hite H 0 1u.se. 

Srn : This is a report on the H earing on the Co le of Fair Competition for the Package Medicine Industry, hel 1 in th Carlton Room of 

the Carlton Hotel on J anuary 17, 1934. The Code, whi ·hi.· attached, 

was presented by tluly qualifie l an l authorized. repre. entatives of 

the Indu try, complying with ·tatutory requirement. and claiming 

to repre nt eighty-fiYe per cent by volume o-f th Inclu try. In accordance with the customary proc lur every I r ·on who had 

filed a r qu t for appearance wa freely h arcl in 1 ubli ; and reoulatory requirement· were complied with. 

THE L: DUSTRY 

The Indu try compn...:e. about 1 4.00 cone rn · havino· an inve~tment in 1929 of approximately '160 000,000. goT ·ate annual ales 

fell from $318,906,928 in 1929 to about $~ - -,000 000 in 1932. In 19_9 

th Inclu try employ d 26,000 per ons of whom lG,4 0 ·w re wage 

earner . 

PR VISION m., THE CODE 

Cod proYi le 

1 

(1&) 
187 

The Code provides :for the appointment of representatives to 

serve on a Drug Industry Coordinating Council which shall have 

representatives :from all the various branches o:f the Drug Industry 

and be constituted to act a an advisory and planning body :for the 

whole Drug Industry. 

FINDINGS 

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

ha, ing found as herein set :forth and on the basis of all the proceedings in this matter : 

I find that: 

(a) Said Code is well desio·ned to promote the policies and purpo es of Title I o:f the National Indu trial Recovery Act, including 

removal of obstructions to the free flow of inter-state 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 o:f cooperative action among the trade aroups, 

by inducing and maintaining united action of labor and management 

under adequ;..1.te governmental sanctions and supervision, by eliminating unfair competitive practice, by promoting t he fullest possible 

utilization of the present production capacity of industries, by 

avoiding undue restriction of production ( except as may be temporarily required), by increasing the consumption o:f indu trial 

and agricultural products through increasing purchasing power, 

by reducing and relieving unemployment, by improving standard o:f 

labor, and by otherwise rehabilitatin_g industry. 

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

( c) The Code a approved complies in all respects with the pertinent provisions of said T itle of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, 

and Subsection (b) of Section 10 thereof; and that the applicant 

group is an indu trial group truly representative o:f the aforesaid 

Industry; and that said group imposes no inequitable restrictions 

on admission to member hip therein. 

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

or monopolistic practices. 

( e) The Code is not designed to and will not eliminate or oppress mall enterprises and will not operate to discriminate against 

them. 

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

not been deprived of the right to be heard prior to approval of 

said Code. ~ 

For these rea ons, this Code of Fair Competition :for the Package 

Medicine Indu try has been approved. 

Respectfully, 

l\1AY 15, 1934. 

HUGH s. JOHNSON' 

Adniin'istrator. 
CODE OF F ~IR COMPETITION FOR THE P 

1\IEDICINE INDUSTRY 

ARTICLE I - P RPOSE 

KAGE 

To effect the policies of Title I of the National Industrial Rec very 

Act, the following provi ions are establi hed as a Cod-e of Fair C mp titian for the Pa.ckage Me licine Industry, and hall be th ~tan lar 

of fair competition for su h Industry and shall be binding upon 

every member thereof. 

\.nTICLE II- DEFINITIO s 

SE TION 1. 'I h t,:>rm " Pa kage M"'dicine Indu try " as u. -eel her in 

hall mean the Industry, each memb3r of hich is engap·ecl in th 

manufacturing and/ r in having manufactured for him uncler his 

own brand and pe"ification., an 1/ or in importing in con umer package for resale, an 1/ or in p'lckaging from bulk mat,erials uncl r hi 

name or bran 1, dentifrices, mouth washes and medicinal preparation for the internal or external u o of hurnc,!n b ing or tl er 11imal an l primarily off cred for al to the general public u uall ' a a 

con11 lete formula in packa o· s with dire tions for u e · an l uch 

r lat 0 cl branche or subdiYisions a ma from time to time be in lucl 

un ler tlic pr Yi. ions of this Code by the Pr ident of th T ni cl 

tatcs after . uch notic and h ring a h may pres ri c. 1 

ECTION 2. The t erm · memb~r of th In lu try" as u l herein 

shall mean any incli ri lual partn r hip ascociation orporation or 

other form of eL.tcrpris en 0 aD"ecl in th n ln. tr · either a an ml l y r or on hi: or its own b 0 half. 

~ 'E 'TI . -r • 'l he t rm • mploy c '' a u~e d her in h 11 n 1 a1 a!H1 

in lucl an~ and all Ij r ·ons en gag cl in the In lu:try, howev r ·ump nsat cl exc~p a ! 1em r of the Inclu tr3. 

~ 'i:: 'TIOX 4. Th rm " 'mployer" < n -e 1 her in in ·ln<l .- an)' ne 

by -n·hom ·n h L. pl e i. on 1 en. atc<l. 

E TION 5. Tl e t rm' .·tablislun nt a.- 1L·c l h rei1 . hall man , 

nn,r plant, lab ratory, l u in .-. branch r lq ~ r 1 1 n th r ,of ngag 'tl 

in his Indu 'try. 

E TI ~r G. 'J hr rm.· ~ ·t' a1H1 · \ 11 ini~ rator' a: ll · ,tJ h r in 

, hall n an, re. ne •tjy ly Tit.l I of th a ional n ln~trial I 1 <.: Y 'l'Y J. • • 

... \. t an l the ... Llmin iL trntor for ndu. trial {p Y n·. , 'E 'TIO T 7. Th tC'l'm · .·por a-.; t1.·, 1 ht'l' in .-h,111 in 'ltt<h: in a 1-

lition to sl ir l11 11 for 'lp:11 ' untri '.' .. hir 111 nt.- t t 'lTit< ri ~ aml 

p .-. sion · f } C' ·nit cl , 't at . . E ·u .-r . The t rm •· primnr. ' li. tril ntor ,. a. u. ~<l her in hnll 

man a wlwl ·a] , dPal r r r nil c1,a1 rt wlom u. m ml>cr f th 

Inclu. tr: ell. it.· 1 r 1 ln t clir ·tly. 

1 .' r parn;..'Tnph :.! of or,!, r appro\'lng (hi. 'oil . 

1 ' ) 
189 

SECTION 9. Definitions of pe1' onnel.-(a) The term" executive' as 

used herein shall mean an employee olely re pon ible for th management of a busines or a recognized ubdivi ion thereof. 

(b) The term ' out ide ale man" hall mean a salesman who is 

engaged not 1 than ixty (GO) per cent of hi · working hour outside the e tablishment or any branch thereof, by which he i 

employed. 

( ) The term ' re ·earch and cientific worker' as u d herein hall 

mean an employee engaO'ed primarily in re ear h and cientific work 

,Yhere special e lucation or cientific training is e_sential. 

( d) The term ' outside ervice employee" a u eel herein hall 

mean an employee engaged not less than ixty (60) per cent of his 

working hour in deliYerino·, installing, and/ or servicino· merchandise 

outside of the establishment and shall include stable and garage 

employee . 

( e) Th term "watchman a used herein shall mean an employee 

engaged primarily in afeguarding the premises and property of a 

member f the Indu try. 

(f) The terms '· firemen ·, and "engineers" as used herein hall 

mean employee engaged primarily in the upkeep presen ation, 

operation and repair of furnace , boilers, engine , pump , compressor heating and ventilating equipment , electrical generating plants, 

or other machinery u eel for ·upplying heat, light, ventilation or 

power to a building or plant of a men1ber of the Industry; but do 

not include such employees as porter , elevator operator cleaner 

or operators of machines u eel directly in a manufacturing proce . 

(g) The term ,: apprentice office worker" as used herein ._hall 

mean an office employee with less than six (6) months total office 

work experience. 

(h) The t erms ' beginner " or " learner " a u ed herein hall 

mean an employee with le than ixty (60) days working experience 

in the Industry. 

ARTICLE III-Houns 

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

employee shall be permitted to work in excess of forty-eight ( 48) 

hours per week a1€raged over a consecutive two weeks' period and 

in no event shall be permitted to work in excess of t" h e (12) 

days in any consecutive fourteen (14) day perio l. 

SECTION 2. No other employee except pharmaci t , chemi ts, 

executives, and r e earch and cientific workers earning in exces of 

thirty-five (35) dollars p 0 r week, and outside sale men hall be 

permitted to work in exce s of forty ( 40 ) hours in any one week 

or eight (8) hour in any twenty-four (24) hour period, except as 

hereinafter proYided in Sections 3 and 4 of this Article and jn no 

event shall any such employee be permitted to work in exce of ix 

(6) days in any con ecutive seven (7) days' period. 

SECTIO 3. (a) The maximum hour fixed in t h e foregoing section 

shall not apply to any emplo3 ee on emergency maintenance or 

emergency repair work inYolving breakdowns or protection of life 

or property, but in any ·uch pecial case uch employee shall be 

paid at the r ate of at lea t time and on third (11/3 ) for hours 

worked in exce of the maximum hours h erein provided. 
190 

(b) 1\ o employee working on continuous proce~s operations sha.11 

be permitted to work in exces of twelve (12) hours in any one day 

or more than forty ( 40) hour in any one week. 

SECTION 4. During a peak perio l of not to exceed eight (8) w ks 

in any alenclar year, any employee may be permitted to work 

not in exces of forty-eight ( 48) hours in any one w ek; provicl d, 

that he shall not be permitte l to work more than ight (8) 1 ours in 

any twent3 -f ur (24) hour period, and that hours in xce · · of forty 

(40) per week shall be compensate l for at the rat of time and onethird (11/3 ). 

SECTION 5. No employer hall knowingly p rmit any employee 

to v0rk for any time which when totalled with that already performed with another employer, or employer , exceeds the maximum 

permitted herein. 

ARTI LE IV-VVAGE 

SE TI N 1. No 

am 

mal 

f pay whi h 

1. u tnally 1111 en-
191 

ly with the Code Authority a Ii t of all such per ons employ d by 

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

for, such employee. 

AnTICLE V-GE :rERAL LAnon PnonsIO ~s 

SECTION 1. No person under ixt0r,n ( 1 G) years o-f age shall be 

employed in the industry. No pen.nn un<ler bighteen (18) years of 

age shall be employed at operation or occupations hazardous in 

nature or dangerous to health. The Cod Anthority shall submit 

to the Administrator within six (6) months after the effentive date 

of this Code a list of such operations or occupations. In any State 

an employer shall be deemed to have compli cl with this provision 

as to age if he shall have on file a certificate or permit duly issued 

by the Authority in such State empowered to issue emrloyment or 

age certificates or permits showing that the employee 1 of the required age. 

SECTION 2. In compliance with Section 7 (a) of the Act, it is 

provided: 

(a) That employees shall have the rio-ht to organize and bargain 

collectively, through representatives of their own choosing, and 

shall be free from the interference, restraint, or coercion of employers of labor, or their agents, in the de ignation of uch repre0entatives 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 

or to refrain from joining, organizing) or a sisting a labor organization of his own choosing, and 

( c) That employers shall comply with the maximum hours of 

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

approved or prescribed by the Pre i. lent. 

SECTION 3. No employer shall recla. sify employees or duties of 

occupations perfo ·med or engage in any subterfuge for the purpose 

of defeating the provisions of the Act or of this Code. 

SECTION 4. EYery employer shall pro--.;ide for the safety and health 

of his employees at the place and durino· the hours of their employment. Standard for safety and health shall be ubmitted by the 

Code Authority to the \.chninistrator within ix ( 6) months after 

the effective late of this Code, and upon approval by the Administrator such standards shall become operative a a part of this Code. 

SECTION 5. No provision in this Code shall npersede any State 

or Federal law which impose more stringent requirement on em- ployers as to ao-e of employees, ,,;ages, hours of ,, ork, or as to safety, 

health, sanitary or g neral conditions, or insurance or fire protection, 

than are imposed by this Code. 

SECTION 6. All employers shall post complete copies of thi Code in 

con picuous places acces ible to employee . 

SECTION 7. The hour· worked by any employee, except outside 

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

interval not longer than one hour may be allowed for each regular 

meal period, and uch interval not counted as part of the employee's 
192 

working tim0 • Any rest period which may be o·iven employees 

shall not be leducted from such employee's working time. 

SECTION 8. o homework shall be allowed in this indu try. 

ARTICLE VI-OnGANIZATION, PowERS, AND DUTIES OF THE CooE 

AUTHORITY OncANIZATION 

SECTION 1. A Code Authority i · hereby constitut cl to admini te1· 

this CoJe. Thi Code Authority hall consi. t of five (5) members 

selecte l as her inaft~r provided, and in addition th r to, the Admini trator in his di cretion may appoint not more than three additional members, without vote and without expen e to the Industry, 

to represent uch groups or governmental agencie a · he may 

designate. 

SEcTio 2. The indu try member . hall be selected a follow 

Upon approval of this Code, the Code Committee pr senting thi 

Code and the Indu trial Advi or for this Indu try shall elect a li t 

of twenty (20) name of individual· identified with thi In lu try 

and representative of th variou interests therein, not more than 

nine (9) of whom shall be members of any one trade a ociation. 

Thi list, with th trade as ociation and company affiliation of ea h 

individual oppo ite his name, . hall be printed upon a ballot which 

shall in addition bear upon its face five ( 5) blank line and a ertificate of a sent to and complj ance with thi Cod . Thi ballot together with a copy of thi Code hall be mail cl to all members of th 

Industry who ·e names are known or can be a certained b. liligent 

earch by the Cod Committee. Each such member of the Indu try 

will be in. tructed that he must signify as ent to an l complian ,Tith 

thi Code in order that hi vote shall be counted. Ea h memb r f 

the Inclu try igning the certificate of as ent an l compliance will be 

entitled to five ( 5) Yates. The member of the Indu tr ma, el ct 

the individuals for whom he wishes to , ote from th printe l li t 

upon the ballot or by writing in such other name a he wi h upon 

the blank lin s provided therefor. The ballot a marked, "ith th 

certificate of a ent and compliance dul io-n d ,, ill b mail 1 to 

th Cod mmittee, who in ountino- the Yote will be o·o rned b 

th f ollowino· rule : 

(a) Th Indu trial AdYi er will aid and u1 erYi ·c in th · nntincr 

of th Yot . 

(b) list ·hall b ma le of in livi lual. in th or l r f th hi,..:h t 

number of Yot receiY cl per indivi lual. In orcl r that n n tracl 

a rn iation hall hav m re than tw (2) f it rn mb r: up n h 

ocl uth rity if th o<l ommitt hall fin 1 that h fi r.t fiy 

incliYic1ual. in orcl r ur n ai 1 li. t in lu 1 m r than tw ) m mb r f anv on tra l a iati n th l , ommitt .·hall l 1 t 

from . ai 1 ii -t th nan . of th m m r · f ail tra l a . cin i n \' r 

th b y r · iYin~ th hig-h · num r of Y >l . an l .-h all \\Tit in 

th ir J la · : th n a 11 • · th !ir.t incliYicl11nls nl r u1 on . ai 1 

li. t (aft r th first fiy ) ,Yh not m m r . ni 1 trad n.-!-' - ciaiion. 

·) rl h indiYi lual wh .-tarn1 a: tllC' fir t fiy 

lw abo\· p ro <> c1 urr ba -: b n c·ani 'cl out ~lH 11 b 

take ofli · a. 11 1<' 1 1ber: f h , ' 1c .. \nth rit · imm 

n th Ji. t. a -ft r 

notifi d n1 <l . hn 11 

liat ly up n th ,jr 
193 

acceptance of the office. If any indiYidual shall decline or be disqualified or unabl to take office, hi name upon the list shall be 

replac d by the·fir name in order on aid li t (after the fh:st fiv ) 

which will not g ive any one trade a. sociation more than two (2) 

members on the Code Authority. 

( d) The Code ommittee with the a1 proval o:f the In l 1 trial \.clviser hall make such additional rules for the lection as it deem 

necessary; and specifically hall rnuk su h rules as will cnabl the 

election to be completed within thirty (30) da rs after the eff ctiYe 

date of this Code. 

P ending the completion of the ele,...tion of the indu try members of 

the ode Authority, the members of the Co le Committee will act 

as uch in lu try member ; provided that if such election is not 

completed within thir.ty ( 30) days after t h 0 effective date of thi. 

Code, the Admini trator or hi deputy may appoint fh e (5) inclividuals, identified with this Indu try and repre entatiYe of the v.arious interests therein, to act a the inclu try member of the Cod 

Authority and to relie-ve the Code Committee of all duties herein 

deleo·at ed to it, and to serve until such election is complet0 d. 

The me1nbers of the Code Authority ·hall set"'>'e for a term of one 

year fro-m the date of taking office. '.A..t a sufficient time in aclYanc 

of the end of the term of the m mber. or the Code Authority, the 

Code Authority sl1all initiate and carry out an election of new members for the ensuing year, so that these new member.;.; . hall take office 

at the end of the term of the old n1ember . T he Cod Authority 

shall assume the luties of the Code Committee and the Admini tra.-

tion Member shall u sume the clutie of the Industrial Acl1:isor in 

carrying out said election by the methoJ hereinabove set forth. 

If a vacancy occurs in the inclu try member~hip of the Code Authority, the r'"'maining in lustry mernb rs hall elect a temporary 

member to fill st:ch vacancy until the next reO'ular election, provide l 

that this temporary member shall be representati-ve of t he same tra le 

association or independent intere ts that w re represented by th 

111-ember who e place he takes. 

ECTIO 3. iiembers of the Industr: . hall be entitled to participate 

in and share the b nefits of th activitie~ of the Code Authority an l 

to participate in the el 0 ction of the member thereof by u ~enting to 

an l complying with the requir ment. of this ode and ·u taining 

their reasonable .,hare of the e.'pense of its ad.mini. tration. Such 

rea~onable ·he re of he cxpen. e of admini ·tration shall be determine l 

by the Cod Authm·ity subject to 2ppr0Yal b3 t he Ac1mini ·trator, 

on the ba is of volume of bu. ine s "Und/ cr su h other factor· as may 

be deemed equ itable. 

SECTION 4. Nothing containe 1 in this Code shall con titute ·he 

members of the Code Authori y partner f or any purpo e. or 

·hall any member of the Code A n-thority be liable in any manner 

to anyone for nny act of nny ether member. officer, agcn 1 or employee 

of the Code Authority. J or sh all any member of the Cod Authority exercising rea onable diligen ce in the conduct of his dutie · hereunder be liable to anyone f or anv action or mi ion to act un ler the 

Code, except f r hi · o-~vn Y'i·illft1l n1i fea an e or nonfoa ance. 

SECTION ·5. Each trade or indu. trial as ociation directly or indirectly participating in the selection or activities of the Code Author-

/ 
194 

ity shall (1) impo e no inequitable re trictions on membership, and 

(2) ubmjt to the Administrator true copies of its articles of association, by-laws rule or regulation , and all amendments when made 

thereto, torrether with uch other information as to membership, 

organization, and activities as the Admini trator may deem neces- sary to effectuate the purpo es of the Act. 

SEcnoN 6. In ord ~r that the Code Authority hall, at all times, 

be truly repre.-entative of the Indu try and in other r pect comply 

with the provi ion of the Act, the Admini trat r may provide such 

hearings a he may deem proper; and thereafter if h hall find 

that the Code Authority i not truly repre entative or doe not in 

other re pects comply with the provi ion of the Act, nwy require 

an appropriate modification in the method of selection of the Code 

Autl ority, or any sub-Code Authority. 

SECTIO 7. Powers and Duties.-The Code Authority shall have the 

following power and duties: 

(a) To a lopt by-law and rules and regulations for its procedure 

and for the admini tration and enforcement of this ode in accordan e with the po·wer herein granted, and to submit the ame to the 

Admini trator for hi approval together with true copie of any 

amen lment or addition when made thereto, minute of meetino-s 

when held and such other information as to its activities a the Admini trator may deem neces ary to effect the purpo e · of the Act. 

(b) T o obtain from member of the indu try for u e of the Code 

Authority, for the Adm1ni trator in the admini tration and enforcement of the o le, and for the information of the Pre ·id nt report 

ba ed on periods of one two or four we k , or multipl thereof as 

soon a the neces ary readju tment within the indu try an be made 

and to give a istance to members of the indu try in impro, ino· metho ls or in pre cribing a uniform ystem of accountino· and reportino·. 

All in lividual reports hall be kept confidential a to member of the 

indu try and only aeneral ummarie thereof may be publi hed. 

( ) ubj ect to rule and regulation i u 1 by th A lmini trator 

to r c iv omplaint of violation of thi ode, mak in,e tio-ation 

thereof, and brin; to the attention of th A lmini trator r commendation and information relative thereto for u h a tion a in hi li -

er tion the fa t warrant. 

( d) To u e u h trade a ociation and th r aa n i a it d m 

proper f r th arr ing out of any fit a tiYitie provi led f r h rein 

and to pa_ u h trade a o iation an 1 a n i th o t th r f fr -

vi l 1 that nothing h r in hall r lieY th \..nth rit.y it 

duti . · r r 'I on ibiliti : und r thi 1 an that ' U h trade n 

tion. and ahen i hall at all tim b 1bj ' - t an 1 · 1111 1: 

the I r vi ion th r f. 

( ) T r lina t th 

c d ·, if an. r a ma., 

th re f, an l to 1 1 gat t an th r a lmini trntiY auth rity, 1Yi h 

th apr r ", 1 f th lmini trat r , n h 1 

ancl h, rmoniou.- a ·ti n 111 n m. tt r. f 

tlrn nothing h r in . hall r li Y h l 1 

r . p n. il ilib ' S unr1 er thi. o 1 . (f 'ul j ·t t< tl P a1 pnn-n l f th \..clrnin i. trat r, n . '<'lll' , n 

quital>l 1 a Hl prop r i mat l aym nt l1 th' xr 1 11. . of ma int· inin 
195 

the Code Authority and its activities from members of the Industry 

assenting to the Code. (g) To cooperate with the Administrator in regulating the use of 

the National Recovery Administration Code Insignia solely by 

tho e members of the Indu try who are complying with this Code. 

(h) To initiate, consider, and make recommendation for the modi- fication or amendment of this Code. 

(i) The Code Anthority shall appoint representatives to serve 

on any Drug Industry Cordinating Council which may be establi hed 

to be compo ed of representatives from the variou. code authorities 

governing cod s which are directly related to the drug industry, 

and to act as a planning and coordinating agency, an 1 a an agency 

for the stabilization of employment, for the entire drug industry. 

SECTI N 8. If the Admini trator shall determine that any action 

of a code authority or any agen"y thereof may be unfair or unjust 

or contrary to the public interest, the Administrator may require 

that uch action be su pende i to afford an opportunity for investigation of the merits of uch action and f urther consideration by such 

co le authority or agency pending final action whi ch shall not be 

effective unless the Administrator approves or unless he shall f ail 

to disapprove after thirty (30) days' notice to him of intention to 

proceed with such action in its original or modified form. 

SECTION 9. General Adniinistrative P rovisions.-In addition to 

the information required to be submitted to the Code Authority as 

set forth in thi Article members of the Indu try shall furni ·h such 

stati tical information as the Administrator may deem nece sary for 

ihe purpo es recited in Section 3 (a) of the Act to su h Fe leral and 

State agencies as the Administrator may de ·ignate ; and nothing in 

this Code shall relieve any member of the In lustry of any existing 

obligations to fnrni h reports to Government agencies. 

An appeal from any action by the Code Authority affecting the 

rights of any employer or employee in the Industry m.ay be taken to 

the Administrator. 

ARTICLE VII-TRADE PRA TICE PnovrsrnNs 

SECTIO 1. (a) A member of the Ind u -try hall ell his prod nets, 

commodities or articles to primary distributors on an open price 

basis that is fa ir to all, with the same allowances, terms and prices 

as to produ ts, quantities or trade cla. sification . (b) The term " open prices" as used in thi section means a price 

list which i published by each member of the Industry for the 

equal information of all primary distributor in the eparate or the . everal cla e of primary di tributors, and whi h stat all the prevailing terms of ~ale f or the separate or the se--veral cla of primary distributors. 

( c) Compenc::ation paid to a primary distributor by a member of 

the Industry for cooperatiYe advertising, counter di plays, window 

displays, salesmen' efforts, or any other pecial sale activities, shall 

be uniform according to kind and scope of services rendered, and not 

on a ba is of discounts on quantity purcha ·es. 

(d) Each member of the Indu t ry or hi. agent shall file his cur- rent price list with the Code Authority within thirty (30) days after 
196 

the approval of this Code. Each member of the Industry shall file 

(oy registered mail) any subsequent revision of such price list with 

said Code Authority. ( e) This ection shall not apply to the ale of private brand products on contract by a 1nanufacturer to the owner of such private 

brand, nor to the sale of products for export, nor to bids submitted 

to governmental units. 

SECTION 2. No member of the Indu try shall u e ah ertising, 

whether printed, radio, di. play or o:f any other nature, which is 

inaccurate in any material particular or mi repre ent m rchandise 

(including its u e, trade n ark grade, quantity, ize, orio·in , material, 

content pr paration, cr edit terms, values, policies, or .-ervices), and 

no member of the Industry shall use adverti incr and/ or elling 

m tho l · conce:rning curative or therapeutic effect , which are fal e 

and fraudulent. 

SECTION 3. No member of the Indu try hall u e adverti ·ing which 

refer inaccurately in any material particular to any competitor or 

hi · mer han li e, prices, values, credit term , policie , r ervic . 

SECTIO T 4 . .1' o member of the Industry hall give J ermit to b 

given, or directly offer to give, anything of value for the purpo e 

of influ ncing or r ewarding the action of any employ ao·ent or 

repre entatiYe of another in relation to the busine of the empl yer 

of . ·nch employee, the principal of uch agent or the repre ented 

party, without th knowledge of . uch employer, princir al or I art . 

Thi rule ·hall not be con true l to prohibit the fr an l o- n ral 

di tribution of article· ommonly u eel for a lv rti in o· excq t o far 

a · u ·h arti le are actually u e l for comm r cial briber. as h r inabove defined. 

SECTION !5 . The r epa king or transferring of an3 arti 1 from 

the container of the member of the Indu ·try into another container 

an l the offering of uch repa kaged item f r ale with int nt r 

capacity to (leceive the purcha er is an unfair tra le pra tice. 

SE TION 6. The unauthorize l u e of a copy, ounterfeit or c 1 rable imitation of the trad -mark, lab l r i lentifying name r 1 vice 

of the pr duct of another orporati n a o iation firm or 1 r · n 

whi h ha · th t n lency and apa ity t mi. lead pnr ha::-er. r l r -

c::pective pur ha er is an unfair tra le pra tice. 

E ".rION 7. No memb r of th In lu try hall e retl. off r or mak 

any pa 'ment or all wane of a r bat , r fund, mmi~ ·i n. -r llit, 

un arn l di count or x e allowan , wh th r in th f rm f 1 1 n y 

or oth rwi e for th I nq o f influen in o- a .-al , n r hall : m 111-

b r . r etly xt n 1 t an n. t m r an J ial · r l ri Yil er 

n t xt nc1 1 t all n. tom r of th . am ·la .. . 

xpr s~ly ma 1 

nd u.-trial 

or nny con-
197 

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

modified on the ba. is of experience or change in circumstances, 

such modification to be ba ed upon application to the Administrator 

and such notice an l hearing as he ·hall ·peci( , and to become e:ff ectfr on approval of the President. 

ARTICLJ:j IX-1\IoxoPoLms, ET,..,. 

o provision of this Code ~hall b 0 ·o applied a· to permit monopo--

Jies or monopolistic practice , or to eliminate, oppres , or discrimi- nate against small enterpri es. 

AnncLE X-PRICE IxcREASES 

\Vherea the policy of the Act to increa e pu_rchasing power will 

be ma le more difficult of con ummation if price of goods and 

seryices increa e as rapidly as ,.,_ages, it i recognized that price 

increases except such as may be required to meet individual costs 

should be delayed. But when made such increases hould, o far 

as possible, be limited to actual increase in the seller's costs. 

ARTICLE XI-GENER.\L 

1. No member of the industry hall use any subterfuge to frus- trate th spirit and intent of this Code which i , among other 

things, to increase emplo3 ment, to remo,·e obstru tions t o commerce, to shorten hours of work and to raise "ages. 2. Except as m.ay be subsequently provided in a c::pecific or supplementary export Code for thi indu try, the provi ions of this 

Code now or hereafter adopted with r egard to prices, discounts, 

deductions, allowances, extras, commi sions: or methods and/ or 

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

export, i.e., sales de tined ultimately for export. 

ARTICLE XII-EFFECTIYE D .' TE 

This Code shall become effectii;-e on the ~ccond Ionda3r after it3 

approval by the Pre ident. 

Ar proved Code No. 430. 

Registry No. 6'.JS-2-22. 

0 
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