NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

ROSIN PITCH 

AND COMPOUNDS INDUSTRY 

AS SUBMITTED ON AUGUST 29, 1933 

REGISTRY No. 622-02 

The Code for the Rosin Pitch and Compounds 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 National Recovery Administration 

as applying to this industry 

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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

W ASIDNGTON : 1933 

For sale by the Superintendent of Documents, Washinjlton, D. . • • • • • • • Pric 5 cents 

v 
CODE CHAIRMAN 

liARHY J. BLANK, Zophar Mills Inc., Brookl,y11, N.Y. 

(Ill 

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CODE OF FAIR COMPETITION FOR THE NATIONAL ASSOCIATION OF RO IN PITCH AND COMPOUNDS MANUFACTURERS 

ARTI LE I- UB II ION OF ODE 

The Ro in Pitch and ompound In u try desire to avail it lf 

f the privilege afforded under Title I of the National Indu rial 

Reco er r Act by ubmitting a Code th acceptance and approval 

of which by the Pre id nt of the Unit d tates i re. pectfully 

reque ed. 

ARTI LE II-PuRPO E 

It i the purpo e of the A ociation through this Code to further 

impro e its ervice to the nation a a whole by insuring fair and 

ad quate wages, by increasing the number of worker employed 

through a re iuction in the hour of ervice, by conforming to uch 

other employment condition a will meet the view of the President 

of the United States, and by eliminating certain competitive practice which have grown up in The Indu try and which are unfair to 

the interests of the public and tho e engaged in the Indu try, 

including its employees. 

Furthermore it is the purpose of this Code to a sure (a) it benefit to all member of the Indu try regardle s of member hip in any 

A ociation provided they bear their equitable share of the expenses 

in olved · (b) that thi Code i not de igned to promote monopolie 

or to eliminate mall enterpri e and will not operate to di criminate 

against them and will tend to effectuate the policy of Title I of the -ational Indu rial Recovery Act; and (c) that member of the 

In u try functioning under thi Code will leal fairly with the public with re pect to the price charaed and th qualjt of th ir 

product . 

ARTI LE III-A THORITY FOR UBl\HS ION 

· h t rm Th n 

in the 1 anufa 

!>12-33 

nta i' of th I urpo e 

\..RTI LE I\ - EFLo. TITI :T 

u 1 h r in m an all p r on nin Pit h an l omr oun l h th r 

(1) 
2 

for sale or for own consumption. The term "Association " herein 

means the National Association of Rosin Pitch and Compounds 

Manufacturers, or their successor or successors. The term "effective 

date" means the fifteenth day after this Code shall have been approved by the President. The term " Trade Sales " as used herein, 

means all sales to distributors, jobbers, and dealers. The term "Industrial Sales" means the sales to all other classes of buyers. 

ARTICLE V-COLLECTIVE BARGAINING 

In accordance with Section 7 (a) of the Act of June 13, 1933, 

known as the National Industrial Recovery Act, it is agreed: (1) 

that employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be 

free from interference, restraint, or coercion of employers of labor 

or their agents, in the designation of such representatives or in selforganization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection; (2) 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 assisting a labor organization of his own 

choosing; and (3) that employers shall comply with the maximum 

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

employment, approved or prescribed by the President. 

It is clearly understood that the foregoing paragraph does not 

impair in any particular the constitutional rights of the employee 

and employer to bargain individually or collectively as may be mutually satisfactory to them; nor does it impair the joint right of 

employer and employee to operate an open shop. 

Nothing in this Code is to prevent the selection, retention, and advancement of employees on the basis of their individual merit, without regard to their affiliation or nonaffiliation with any labor 

organization. 

ARTICLE VI-MINIMUM WAGES AND MAxiMUM HoURs 

(a) Employers in The Industry shall not work any accounting, 

clerical, or office employee in any office, or in any other place or 

manner, more than a maximum week of 40 hours with the right to 

work a maximum week of 48 hours in any 6 weeks within a period 

of 6 months. · 

(b) Employers in The Industry shall not work any factory or mechanical worker or artisan more than a maximum week of 40 hours 

with the right to work a maximum week of 48 hours in any 6 weeks 

within a period of 6 months. 

(c) The maximum hours fixed in the foregoing Paragraphs (a) 

and (b) shall not apply to superintendents, assistant superintendents, 

foremen, engineers, firemen, watchmen, janitors, technical men, or to 

employees on emergency maintenance or repair work; provided that 

the wages paid to employees above excepted for time in excess of the 

maximum shall be at the rate of 1 and 1;3 times their regular compensation, provided further that these maximum hours shall not 

apply to employees in a managerial, executive, or any other capacity 

who receive $35.00 per week or more. 
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(d) Empl y rs in The Indu try hall n t pay an. of h cla 

of empl m n i n l in ara rar h (a) le than 1 .00 r week 

in an ity of ov r 500 0 population, or in he immediate trade area 

f u h i } · n r le than '14. 0 per week in any city of betw en 

2- 0 an -o 0 p pulati n, or in th imm diat trad ar a of uch 

city · n r l than 14. p r week in an ' ity of b we n 2 500 and 

25 000 population or in th imme iat trade area of uch city; and 

in t wn of l than 2 500 populati n mplo er hall increa e all 

wage not les than 20 percent provided that this shall not require 

wage in exce of 12.00 per week. Population for the purpo es of 

thi agreement hall be determined by referenc to the 1930 Federal 

ensu. 

(e) Emplo er in The Indu try hall not pay an employee of the 

cla e m ntioned in Paragraph (b) le han 40 cent per hour unless 

the hourly rate for the arne class of work on July 15, 1929, was less 

than 40 cents per hour, in which latter case not to pay less than the 

hourly rate on July 15 1929, and in no e ent less than 30 cents per 

hour. It is agreed that this para~raph establishes a guaranteed 

minimum rate of pay regardless ot whether the employee is compensated on the basis of a time rate or on piece work performance. 

(f) No person under the age of 16 shall be employed in the 

Industry. 

ARTICLE VII- PRESIDENTIAL AUTHORITY 

In accordance with Section 10 (b) of the National Industrial Recoverv .Act it is agreed that the President may from time to time 

cancel or modify any order, approval, license, rule, or regulation 

issued under Title I thereof. 

ARTICLE VIII-REPORTS 

Each manufacturer in The Indu try shall file at Association Headquarters (location to be determined upon later) such reports as shall 

be required by the President of the United States. 

ARTICLE IX-.ADl\HNISTRATION 

.After this Code hall have been approved by the President of the 

United States, it shall be administered through the .A sociation by 

a board of 5 members to be immediately created and to be known 

as th Ro in Pitch and Compounds Indu tr Recovery Board. ' 

This Board hall be composed of the following member : 1 mem- ber of the General Code ommittee; 4 m mber , one each from the 

North, outh Eas and West. 

No person hall be eligible for member hip on this Board who is 

not directly engaged in th manufacture f products of The In lu - try. Furth rmor no c mpan or group of affiliate companie hall 

have more than one r pr entative on thi Board. Vacan i which 

may ccur in the oard for any rea on hat v r shall be filled by 

a majority vote of the r maining m mb r . Thi Board hall elect 

it ~ n hairman a opt its own rul of procedure appoint uch 

committee a may to it em nee ary from time to time, and may, 

in it ~ judgm nt del gate i au hority to uch c mmitte s. The 
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Board shall promptly file with the National Recovery Administration a copy of its rules and a statement of the procedure which it 

shall have established. 

Any expenses of the Association in carrying out the work of the 

Industrial Recovery Board or any other authorized expenditure 

shall be met by an annual membership fee in the Association. If 

for any reason an eligible manufacturer does not desire to join this 

Association he may, nevertheless, receive all of its benefits, including 

participation in this Code, by paying a fee to its Treasurer equal to 

the dues. The Rosin Pitch and Compounds Industry Recovery 

Board shall have full responsibility for its expenditures within the 

limits of such appropriations as are made from time to time, provided that no traveling or other expenses of Board members shall 

be paid out of the Associations' funds. 

ARTICLE X-MISBRANDING, MISLABELING, AND FALSE ADVERTISING 

Transactions known to the law as misbranding, mislabeling, and 

false advertising are specifically prohibited by this Code, and, after 

the effective date, shall be punishable as a violation thereof in addition to any other penalties imposed by any other law. 

ARTICLE XI-GIFTS TO EMPLOYEES. OF ANOTHER 

It shall be a violation of this Code for any person engaged in 

The Industry to offer or give-or to permit any representative of 

his to offer or give-any commission, gratuity, or other thing of 

substantial value to employees of his customers or prospective customers, except in the case of payments made with the consent of the 

employer for a definite service rendered . 

. ARTICLE XII-STANDARD TERMS OF CASH DISCOUNT 

On and after the effective date the terms granted by manufacturers shall not exceed : Trade Sales Accounts: 1% for cash in 10 

days, net 30 days; Industrial Sales Accounts: 2% for cash in 10 

days, net 30 days; except that the discount to trade sales accounts 

may be extended to the lOth day of the month following purchase 

and the discount to industrial sales accounts may be extended to the 

20th day of the month following purchase to customers who regularly discount in the month following purchase, and provided that 

no discount shall be allowed after the discount date. 

ARTICLE XIII-CONSIGNMENT 

The practice of supplying trade sales accounts on consignment is 

prohibited. This also includes what are commonly known as warehousing arrangements. Every manufacturer who has any such 

consignment stocks in the hands of buyers on the e:ffecti ve date of 

this Code may continue the same but he shall file a detailed list of. 

such accounts with Association Headquarters where reference may 

be made to it at any reasonable time by interested parties. 
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If any manufa tur r fin l i ary to tak · f r l D"itimate cr it rea 

l to i bu hall imm iately rer r 

iation H adquarters. 

ARTICLE XIV-FREE DE L 

ra tok na 

hall b pertance to 

Ex pt a oth rwise pro id d h rein, fr deal in or connect d 

with indu tr product ar prohibited. Fr e deals ' for the purpo e of thi od hall inclu le all form of marketing de ice , whether the full co t thereof or only a part of aid co t i .., borne 

by the manufactur r, whereby the said manufacturer furni hes 

O'OOd of any kind other than such of hi own product as have been 

contracted for on his usual terms to tra le sal customers: Provided 

that the term Free Deal ' hall not apply to the furni hing of 

adverti ing acce sories of small value such as the u ual circulars, 

ample etc. 

Illustrative of the practices which are prohibited are included the 

following : 

(a) Premiums (gifts of unrelated merchandise) such as paints, 

article of furniture, etc. 

(b) Free Goods (extra amounts of one's own products). 

(c) Free samples (But the tenn "Free Deals" does not apply 

to amples given for test purposes). 

ARTI LE XV-COlVIPETITIVE PRICES 

a) Package Ditf 1·entials.-While the ba ic sales price of all 

trade-sales products (and for this purpose a 500-lb. barrel is considered ba ic), is within the control of each manufacturer o far 

as his own goods are concerned, subject only to Section (b) o£ 

this Article, each manufacturer shall adjust the price of products 

marketed in other than 500-lb. barrels in accordance with the standard uniform package differential of 16%%. 

b) elling below Oost.-Products of the Inclu try shall not be 

old at less than cost· which cost shall include the following: 

(1) The ellers total market replacement co t of raw materials 

(based on cost furnished monthly, or oftener if necessary, by authority of the Ro in Pitch and Compound Industry Recovery Board 

thr u h he ociation). 

2) on ainer and/or package . (3) o t of pro ing (a d fined in che lui A h r of ·whi h 

ma a part of thi Code). 

((4) mini tration and o rh ad not I than 10 o r all. 

) Tran rtation charD' if any to le tination. 

AnTI LE XVI- Ol\fPETITIYE RELATI X 

a) Inducing B1·each of ontr·act.- o n1anu actur r eith r lir ly r in ·r tly r throu h hi al n1 n r pr ntati or 

aO' n hall n urage ny .purcha r of th pr lu t of Th Indu try to di reD"ard or fail to li e up to hi c mmitm nt t an th r 

m mb r f the Industry. 
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(b) Disparagement of Oompetitors.-The use or participation in 

the publishing or the disseminating of any false statement, representation, or insinuation which disparages the business of a competitor, or attacks the reputation, goods, prices, credit, service, or 

advertising of any competitor or of any other industry, is an 

unfair and uneconomic practice and is prohibited. 

(c) Underselling Olaims.-The use of or participation in the publishing or the disseminating of any statement or representation 

which lays claim to a policy or continuing practice of generally 

underselling competitors, is an unfair and uneconomic practice and 

is prohjbited. 

(d) Enticing Employees.-Members of The Industry shall recognize the right of employees to use all honorable and reasonable efforts to better their conditions, but shall refrain from directly or 

indirectly soliciting or bidding for the services of an employee, or 

any one associated with another member. Only when such an 

employee takes the initiative shall a member of The Industry have 

the right to negotiate with him about prospective employment. 

ARTIOLE XVII-RETURNED GooDs 

No merchandise shall be returned without first securino- the consent of the manufacturer. On such goods as are accepted for return, 

a reasonable charge shall be made and freight charges must be prepaid by the shipper returning the n1erchandise, except in the case of 

defective products or where in some other way the manufacturer 

may be responsible. 

ARTICLE XVIII-VIOLATIONS 

Each manufacturer in The Industry shall report to Association 

Headquarters any violation of this Code of fair competition which 

may come to his attention. It shall be the duty of Association Headquarters promptly to undertake a preliminary investigation of such 

alleged violations for the purpose of assembling pertinent facts and 

to file a report thereon with the Rosin Pitch and Componds Industry 

Recovery Board. The Board may then appoint a special Arbitration Committee, if the respondent" agrees to abide by this procedure, 

to conduct hearings, in the course of which the Arbitration Committee may examine the books of the respondent in regard to matters 

pertinent to the charge, or it shall delegate this function to an 

independent auditor either at its own instance or at the request of 

the respondent. The Arbitration Committee shall follow the rules 

of procedure recommended by the American Arbitration Association. If the respondent declines to abide by such procedure or if in 

its discretion the Rosin Pitch and Compounds Industry Recovery 

Board deen1s this procedure to be contrary to the best interest of 

The Industry or of the public, then the Board shall file a formal 

complaint with the National Recovery Administration or other constituted Government authority. 
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ARTICLE XIX-AMENDMENTS 

l\1embers of The Industry shall submit desired amendments of 

thi Code to the Rosin Pit h and Compounds Industry Recovery 

Board throu0 h As ociation Headquart rs. By agreement of a 

majority of the Board, an amendment, so recei ed or initiated by the 

Board itself shall be referred to The Industry in the following 

1nanner: tho e members of the Board who represent manufacturers 

from the several sections of the Country shall call meetings of the 

n1anufacturers in their sections. The several Board members shall 

then submit individual report to Association Headquarters, which 

shall collate them and submit a full report to the Board. Thereafter, the Board shall vote on submitting the Amendment to the 

Government and shall so submit it if at least two thirds of the Board 

vote to do so. 
SCHEDULE "A" 

( See Article XV (b) ) 

Cost of proaessing.-Cost of processing shall include a charge for each of the 

following elements of cost: 

Direct labor: Loading, compounding, beating, packing. 

Heat, light, and power. 

Incoming freight. Depreciation of factory buildings and fixtures. 

Depreciation of factory machinery and equipment, kettles, retorts, power 

plant, trucks, furniture, and fixtures. 

Factory Taxes. 

Factory Insurance. 

Interest on capital investment in factory land and buildings or rent where 

the manufacturer does not own the land and buildings. 

Repairs to machinery and equipment, buildings and fixtures, power plant, 

trucks, and furniture and fixtures. 

Salaries of superintendents, foremen, receiving clerks, janitors, elevator operator, night watchmen, and any other nonproductive workmen. 

Salaries of laboratory or other technical men. 

Supplies and sundries. 

General expense in factory, including telephone, telegraph, stationery, etc. 

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UNIVER S IT Y OF FLORIDA 

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