Regi try No. 710-1-03 

NATIONAL RECOVERY ADMINISTRATION 

PROPOSED CODE OF FAIR COMPETITION 

FOR THE 

RECLAIMED OIL INDUSTRY 

AS SUBMITTED ON AUGUST 30, 1933 

WE DO OUR PART 

The Code for the Reclaimed Oil Industry 

in its present form merely reflects the proposal of the above-mentioned 

industry, and none of the provisions contained therein are 

to be regarded as having received the approval of 

the !\ ational Recovery .4dministration 

as applying to this industry 

~!TED STATES 

GOVERXMENT PRINTIXG OFFJ:CE 

W ASHIKGTOX : 1933 
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CODE OF FAIR COMPETITION FOR RECLAIMED OIL 

INDUSTRY 

ARTICLE I-PURPOSE 

To effectuate the policy of title I of the National Industrial Recovery Act, during the period of emergency, by reducing and relieving 

unemployment, improving the standards of labor, eliminating competitive practices destructive of the interests of the public, employees 

and employers, relieving the disastrous effects of overcapacity, and 

otherwise rehabilitating the Oil Reclaiming industry and by increasing 

the consumption of industrial and agricultural products by increasing 

purchasing power, and in other respects, the following provisions are 

established as a code of fair competition for the Oil Reclaiming 

industry: 

ARTICLE II-PARTICIPATION 

Participation in this code, and any subsequent revision of or addition to the code, shall be extended to any person, partnership or corporation in the Oil Reclaiming industry who accepts his share of the 

cost and responsibility, as well as the benefit, of such participation by 

becoming a member of the Oil Reclaimers association. No initiation 

or entrance fees shall be charged. (As this is a local organization to 

date, dues or assessments of a national organization have been left 

open pending the formation of an E1nergency National Committee.) 

ARTICLE III-DIVISION OF THE INDUSTRY 

A. POWERS 

For the purpose of the administration of this code the Oil Reclaiming industry shall be divided into divisions as set forth below. Each 

division shall designate or establish its own administrative agency 

or agencies. Each such division shall be independent and self-governing in respect of all conditions and problems relating exclusively 

to the said division. Proposals in respect of matters affecting more 

than one division may be initiated by any division, and shall be submitted for consideration to the Emergency National Committee of 

the Oil Reclaiming industry, hereinafter described, and its determination shall be binding upon said division and all other divisions 

affected thereby. 

B. NAMES OF DIVISIONS 

Divisions are hereby established as follows: California Oil Reclaimers Association. 

C. EXECUTIVE COMMITTEE 

This division, and any others which n1ay subsequently be formed 

within the Oil Reclaiming industry, shall set up an executive committee for the purpose of administering the provisions of the code, to 

9108-33 (1) 
2 

secure adherence thereto, to hear and adjust complaint , to consider 

proposals for amendments thereof and exceptions thereto, and otherwise to carry out within the divi ion the purposes of the National 

Industrial Recoyery Act as set forth in this code. 

If a division, as named above, does not concur in the submittal of 

this code; or if, at any time thereafter, a division fails to perform its 

obligations as . provided hereunder, the Emergency National Committee of the Oil Reclaiming industry, hereinafter describ d, is hereby 

empowered to adopt a code for the di vi ion and may provide for the 

administration of that code as if said Emergency National ommittee 

were the executive of the divi ion concerned. 

ARTICLE IV-DIVISION REG LATIO JS 

A. POWERS 

The labor code established by the aid division shall, upon approval 

of the Emergency National Committee of the Oil Reclaiming industry, 

be binding upon all producers of products in such divi ion. The labor 

code of each division shall contain the followino- provi ion : 

(a) Employees in the Oil Reclaiming industry shall have the right 

to organize and bargain collectively through representatives of their 

own choosing, and shall be free from the interference, restraint, or 

coercion of employers of labor, or their agents, in the designation of 

such representatives or in self-organizations or in other concerted 

activities for the purpose of collective bargaining or other mutual aid 

or protection. 

B. LABOR CODE 

(a) No employee in the Oil Reclaiming industry, and no ones king 

employment therein, shall be required as a condition of employm nt to 

join any company or union or to refrain from joining a labor organization of his own choosing. 

(b) Employers of labor in the Oil Re !aiming indu try agr to 

comply with the maximum hours of labor, minimum rat of pay, and 

oth r working conditions approved or pr cribed b the Pr id n . 

And, in addition, 

(c) A cla sifi ation of kinds of lab r in th il h i1 ing indu try, 

a follo~ : 

Refin ry E1nploy ( tillm n and L bor r ). Tru l Dri r . 

leri al. 

al n1 n . 

(d) 11axiinum h ur for < h la f lab r nnd x ti n a 

foll ' 

llour p r w k 

40 

4 

4 

4 
3 

(e) Minimum wage for each class of labor, and exceptions, as 

follows: 

R fi E l {

Stillmen __ e nery mp oyees ____________________ Laborers __ 

Truck Drivers ___________________________________ _ 

ClericaL ___________________ ___ ___ __ _____________ _ Salesmen ________________________ ___ _____________ _ 

C. PRODUCTION CODES 

50¢ per hour. 

40¢ per hour. 

40¢ per hour 

commis ion. 

40¢ per hour. 

65¢ per hour 

commi sion. 

and/or 

and/or 

This division, and any others "-hich may ubsequent.ly be formed, 

hflll promptly undertake the formulation of a production code. 

This code shall operate within the limits of the production quota of 

the division as determined by the Emergency N a tiona] Committee, 

and on such equitable bR.sis, and for such period, as it shall determine, 

and shall allot a maximun1 production to each producer of reclaimed 

products in operation, or which proposes to operate, 'vithin the said 

division. 

This industry was originally formed for the express purpose of 

conserving natural resource . Production is governed by amount of 

oil drainings available. It shaH be the duty of the Board of Directors 

to set a maximum production figure on the last da of each month 

which shall govern the production for the following month. 

Production of reclaimed products in excess of his approved allot- ment, during any period by any producer of reclaimed products 

after having received from said established division a production 

allotment on the basis approved by the Emergency National Committee, is an unfair method of competition, and the offender shall be 

penalized by an assessment of 2 percent on the :first 25 percent over 

his allotment, 5 percent on the next 25 percent, and 10 percent on 

all over; receipts to go into a common fund for the benefit of the 

industry. 

D. COST CODES 

This division, and any others which may subsequently be formed, 

shall proceed at once to provide for standard methods of costing 

which shall be used by all reclaimers within this division for the 

purposes of this section of the code. It shall be an unfair method of competition for any such reclaimer 

to sell below reasonable cost. What is statistically known as the 

"mode" may be used as a reasonable cost, but must be so approved 

by the Executive Committee. 

Dropped lines or surplus stocks, sometimes designated as "closeouts", or inventories which must be converted into cash to meet 

immediate needs, may be sold at such prices as are necessary to move 

the merchandise into buyers' hands. However, all such stocks must 

first be reported to the Executive Committee of the Division, and 

be disposed of subject to the approval of that committee. 

ARTICLE V-EMERGENCY NATIONAL CoMMITTEE 

A. REPRESENTATION 

There shall be an emergency national committee of the Oil Reclaiming industr , to consist of a representative, or representatives, 
4 

of each division, selected by the said division, representatives of the 

industry at large, to be selected by divisional members, and representatives of other groups which may be entitled to representation, 

for the present named as follows: California Oil Reclaimers Association. 

B. POWER 

This Emergency National Committee hall be the general planning 

and coordinating agency for the indu try. Its member , elected by 

established divi ions, shall be empowered b~r the aid divi ions to 

act for then1 conclusively in r pect to all matter b fore the com- rnittee for consideration and within its jurisdiction. The comlnittee 

shall have powers and duties as provided herein, and in addition 

thereto it hall-

(a) From tirne to time require such report fron1 divi ions a in its 

judgrnent may b necessary to advi e it adequately of the admini tration and enforcmnent of the provi ions of thi cod ; 

(b) Upon cmnplaint of intere ted parties, or upon it O\Vn initiative, 

make such inquiry and inve tigation into the operation of th code 

as n1ay be neces ary; and 

(c) 1Iake rule and regulati n nece sary for the adnuni tration 

and enforcernent of this code. The c mlnittee may elegat any 

of its authority to the National Control Committee h reinafter 

provided, and may de ignate such agent a it hall determine. 

The En1ergenc TN ational Cominittee of the Oil Reclaiming indu tr 

in cooperation with, and ubject to the approval of, th pr p rly 

de · gnated representatives of th President under the J a ti nal 

Indn trial R covery Act, hall determine and from time to time 

revise an estin1ate of expected reclaimed oil c n umption · and a ed 

thereon, it hall stabli h, and from tim t time r i an ruit ble 

pr duction quota of the Oil Reclairnino· indu try nd for ea h divi. ion 

thereof. 

ARTICLE YI-I TDU TRY REGt;LATIO.' 

A. MARKET! G CODE 

may "tabli h a n1ark tino-~ 
5 

B, TRADE P RACTICE R ULES 

The Emergen y National Committee shall hold a trade practice 

conference a t its earliest con enience to establish rules of fair trade 

practice for the entire indu try, other than the following: 

(1) Price Changes 

All price changes will be set by the Executive Committee of the 

Division, and each reclaimer must be notified of the change at least t,:~, enty four hours before prices are effective. 

Abnormal deliveries in anticipation of price advance and acceptance 

of orders for ub equent deliveries at price effective before advance 

are prohibited. 

(2) Price Discrimination 

It is an unfair trade .practice for any person engaged in interstate 

commerce, in course of such commerce, either directl or indirectly, 

to di criminate in price between different purchaser of commodities, 

where the effect of such discrimination may be to substantially les en 

competition or tend to create a monopoly in any line of commerce; 

provided, that nothing herein contained shall prevent discrimination 

in price between purchaser of the same class on account of differ- ences in the grade, quality, or quantity of the commodity old, or 

that makes only du"' allowance for differences in the co t of selling 

or transportation, or discrimination in price in the same or different 

communities made in good faith to meet competition; and pronded 

further, that nothing herein contained shall prevent per ons engaged 

in selling the products of this industry in commerce from selecting 

their own cu tomers in bona-fide transactions and not in restraint 

of trade. 

(3) Commercial Bribery 

Directly or indirectly to give or permit to be given or offer to give 

money or anything of value to agents, employees, or representatives 

of customers or prospective customers, or to agents, employees, or 

representatives of competitors' customers or prospective customer , without the knowledge of their employers or principals, as an inducement to influence their emplo er or principal to purchase or contract 

to purchase industry products from the maker of such gift or offer, 

or to influence such employers or principals to refrain from dealing 

or contracting to deal with competitor , is an unfair trade practice. 

(4) }.Jisrepresentation 

The making or causing or permitting to be made or publi hed any 

false, untrue, or deceptive statement by ·way of advertisement or 

otherwise concerning the grade, quality, quantity, or character of any 

product of the industry having a tendency and capacity to mi lead 

or deceive purcha er or pro pective purchaser , is an unfair trade 

practice. 
6 

(5) Terms of Sale, Pr ·ce Lists 

(a) The indu try pprov s the practice of each individual member 

of the industry individually publishing and irculating to the pur- chasing tra,de its own price lists. 

(b) The industry approves !ihe practice of making the terms of 

sale a part of all publi heel price schedule . 

(6) False Inro?·ces 

Withholding from or in erting in the invojce tatements which make 

the invoice a fal e record, wholly or in part, of the transaction 

repr ented on the face thereof, is condemned by the industry. 

(7) Secret RebateL 

The seeret payment or allowance of rebate , refund , eo1nmi 10n 

or unearn d eli. count , whether in form of money or oth rwi , or 

e retly extending t c rtain purcha ers pecial serYi e r privileg ' 

not extended to all purcha ors, under lik term and condition. with 

the intent and with the effect of injuring a competitor and where tb 

eff ct may be to sub tantially lessen competition or tend to reate a 

monopoly or to unreasonably restrain trade, i an unfair trade 

practice. 

(8) Defamation 

The defa1nation of con1pet.itor by fal ely imputing to them eli - honorable conduct, inability to perform contract , que tionable 

credit tanding, or by other false representation , or th false eli - paragement of the grade or quality of their boods with th t ndenc. 

and capacity to mislead or decei e pur ha er or pr pectiv pur- chasers, is an unfair trade practic 

(9) Sale b low co t 

Th selling of · od b low co t with he inten an with the ff t 

of injuring a comp titor and where the eff ct may b to ub tantiall~ 

l en con1petition or tend to cr at a 1nonopol. or t unr a onabl 

re train trade, i an unfair trad practic . 

(1 0) SenYic charges 
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(11) Custom reclaiming for individuals 

The reclaiming of crank-case drainings by any reclaiming plant 

either commercial or custom, for any jobber, service station owner, 

individual or group of individuals, who furnish their own drainings, 

whether drainings are collected in one location or tank, or in a series 

of locations or tanks, from which all or any portion of oil reclaimed is 

to be sold or offered for sale directly or indirectly is an unfair trade 

practice. 

(12) INTERFERENCE WITH CONTRACTS 

Willfully inducing or attempting to induce the breach of existing contracts between competitors and their customers by any false or 

deceptive rneans whatsoever, or interfering with or obstructing the 

performance of any such contractual duties or services by any such 

means, with the purpose and effect of unduly harnpering, injuring, or 

en1barrassing competitors in their business, is an unfair trade practice. 

(13) ESPIONAGE 

Securing information from competitors concerning their businesses 

by false or misleading statements or representations or by false 

impersonations of one in authority and the wrongful use thereof to 

unduly hinder or stifle the competition of such competitors, is an ·unfair trade practice. 

The Emergency National Cmnmittee may authorize any one division to adopt fair trade practice rules relating to the practices peculiar 

-to that division. 

ARTICLE VII-STATISTICS 

In order to provide data necessary for the administration of the 

National Industrial Recovery Act, the men1bers of the Oil Reclaiming industry shall furnish, and the Emergency National Committee 

shall gather, statistical information from all members of the industry, 

as follows: (a) Capacity; (b) Production orders, and shipments during 

the month; (c) Unfilled orders and inventories (raw and finished) on 

hand at the end of the month; (d) Number of persons employed, wage 

rates, earnings, and hours worked; (e) Accounts receivable at the end 

of the month; (f) Price, costs; (g) and other iterns at the option of 

the industry. 

ARTICLE VIII-NATIONAL CoNTROL CoMMITTEE 

The Emergency National Committee of the Oil Reclaiming industry shall appoint from its own membership a National Control Committee of three (3) members. TheN ational Control Committee shall 

exercise such authority as may have been delegated to it by the said 

Emergency National Comrnittee. All communications and conferences of the Oil Reclaiming industry 

with the President or with his agents concerning the approval or 

amendment of this code, or any of its provisions, or any matters 

relating thereto, shall be through the said National Control Committee. The National Control Committee shall serve as an executive agency for the Emergency National Committee of the Oil 
8 

Reclaiming industry, and shall be charged with the enforcement of 

the provisions of this code and with the duties, through agents or 

otherwise, of hearing and adjusting complaints, considering proposals 

for amendments and making recommendations thereon, approving 

recommendations for exceptions to the provisions of this code, and 

otherwise administering its provisions. Any division or any adherent 

to the provisions of this code or subject to its terms shall have the 

right of appeal to the Emergency National Committee from decisions 

of the National Control Committee, and the decision of the aid 

Emergency National Committee on said appeal shall be final. 

The function of this committee shall be the general planning and 

coordinating for the Oil Reclaiming industry, and the cooperation with 

similar boards of other industries, to the end of effecting a balanced 

national economy. 

ARTICLE IX-GENERAL 

1. No provision in this code shall be interpreted or applied in such 

a manner as toa. Promote Monopolies. 

b. Permit or encourage unfair competition. 

c. Eliminate or oppress small enterprise; or 

d. Discriminate against small enterprises. 

2. This code, or any of its provisions, may be cancelled or Inodi:fied, 

and any approved rule issued thereunder shall be ineffective to the· extent necessary to conform to any action by the President under 

Section 10 (b) of the National Industrial Act. 

3. The Emergency National Committee of the Oil Reclainung industry and the National Control Committee shall from tim to tim 

make to each division established, or to be establi hed, under the 

provisions of this code, such recommendation , including amendments 

of the code, as in their judgment will aid the effecti e admini tration 

of this code or may be necessary to effectuate within the Oil Reclaiming industry or within any division thereof the purpose of the ation l 

Industrial Recovery Act as administer d. 

4. Amendn1ent to this code may be propo eel by an tabli heel 

division to the Emergency National Committ e or rna T b initiated 

by it, and when approved by the President hall b ffective. 

5. Violation by any producer of the Oil R claiming inclu tr of an. 

provi ions of thi cod , or any approved rul i ned th r und r, i an 

unfair Inethod of con1petition. 

6. In order to avoid undue delay in n1akin0' efi ti re thr urrhout 

th Oil Reclaiming indu try tlu code of fair om petition, th f llowinO' 

pro i ion ar adopt d, and other provi ion of th cl in nilict 

ther with ar su pend d until uch tin1 .. th m fO' n y ... ,. ati nal 

om1nitt e hall det nnin that th purpo f th • rti l htn l n 

ac 01npli heel: 

A. Ea h e tabli h d clivi ion hall ubmit a pr mptl:v 

t the Em rg n y Tntional onunitt , n c mpl t diYi i n nd in 

conf rmity v-tith th g n ral 1 roYi i n f thi d . uch liYi ·i nnl 

de, if f und u tantiall t r 111 th 1 m·J o f th ·a ti< nal 

l , hall ac ept l pr Yi i nally . th 1..m J'O' n y • Tnti nnl 

mmitt an l it imm lin.t nf r m nt t uth riz d. Th 1 m r-

' ti nnl mmitt hall th r up n I ro d a rnpi lly ~ pn -
9 

ticable to make such adjustments of and coordination between the 

provisions in respect of hours, wages, productions, and costs of several 

divisional codes as may be necessary to bring them into conformity 

with the provisions of the National Code by: 

1. Consultation a.nd negotiation between the divisions affected. 

2. By its own findings after full consideration of all factors 

involved. 

B. If any division fails to submit within a reasonable time code 

provisions as provided in subsection (a) of this article, and if in the 

judgment of the Emergency National Committee such failure is 

unduly delaying the effective operation of this code, the said committee is authorized to act as divisional agency for said division and 

to submit on its behalf the necessary code provisions which, upon 

approval by the President, shall be effective until the said division 

shall have submitted satisfactory code provisions. 

7. This code shall be in effect beginning ten days after its approval 

by the President. 

8. The President may, from time to time, cancel or modify any 

order, approval, license, rule or regulation issued under title I of the 

National Industrial Recovery Act. 

9. Such of the provisions of this code as are not required to be 

included therein by the National Industrial Recovery Act may, with 

the approval of the President, be modified or eliminated, if it appears 

that the public needs are not being served thereby and as change in 

circumstances or experience may indicate. They shall remain in 

effect unless and until so modified or eliminated, or until the expiration of the act. It is contemplated that from time to time supplementary provisions to this code, or additional codes, will be submitted 

for the approval of the President to prevent unfair competition in 

price and other unfair and destructive competitive practices and to 

effectuate the other purposes and policies of Title I of the National 

Industrial Recovery Act and which shall not conflict with the 

provisions hereof. 

10. If any provision of this code is declared invalid or unenforceable, the remaining provisions shall nevertheless continue in full 

force and effect the same as if they had been separately presented 

for approval and approved by the President. 

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UNIVERSITY OF FLORIDA 

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3 1262 08852 5786