Approved Code No. 296 Registry No. 407-07 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

FLUTED CUP, PAN LINER 

AND LACE PAPER 

INDUSTRY 

AS APPROVED ON FEBRUARY 17, 1934 

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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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This publication is for sale by the Superintendent of Docum nts, Government 

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Approved Code No. 296 

CODE OF FAIR COMPETITION 

FOR THE 

FLUTED CUP, PAN LINER AND LACE PAPER 

INDUSTRY 

As Approved 011 February 17, 1934 

ORDER 

APPROVING CoDE OF FAIR COMPETITION FOR THE FLUTED Cup, 

PAN LINER AND LACE p APER INDUSTRY 

An application having been duly 1nade pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

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

Fair Competition for the Fluted Cup, Pan Liner and Lace Paper 

Industry, and hearings having been duly held thereon and the annexed 

report on said Code, containing findings with respect thereto, having 

been made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the 

President, including Executive Order No. 6543-A, dated December 

30, 1933, and otherwise; do hereby incorporate by reference said 

annexed report and do find that said Code co1nplies in all respects 

with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Code 

of Fair Competition be and it is hereby approved; provided, however, 

that the provisions of Article VI, Sections 2 to 9 inclusive, insofar 

as they prescribe a waiting period between the filing with the Code 

Authority (i.e. actual receipt by the Code Authority) and the effective 

date of revised price lists or revised terms and conditions of sale be 

and they are hereby stayed pending my further order; provided 

further, that within ninety days I may direct that there be a further 

hearing on such of the provisions of said Code as I may designate, 

and that any order which I may make after such hearing shall have 

the effect of a condition on the approval of •said Code. 

• 

Approval recommended. 

GEO. L. BERRY, 

HUGH S. JOHNSON, 

Administrator for Industrial Recovery. 

Division Administrator. 

WASHINGTON, D. c., 

February 17, 1934. 

41086°-376-111-34 (175) 
REPORT TO THE PRESIDENT 

THE PRESIDENT, 

The TI hite House. 

SIR: This is a report of the hearing on th Code of Fair Competition for the Fluted Cup, Pan Liner and Lace Paper Industry, con- ducted in Washin()'ton on November 2, 1933, in accordance with the 

provisions of Title I of the ational Industrial Recovery Act. 

HO RS AND WAGE 

This Code provides a standard 40 hour week for factory workers 

with a weekly tolerance of eight hours to be paid for as overtime. 

The usual exceptions are made in regard to non-productive employees. 

Office employees are limited to an average of 40 hours per we k over 

an eight week period. 

The minimum wage rate for hourly paid employee i 3 ¢ p r hour 

for males and 30¢ per hour for females. Office employee \.vill re eiYe 

a minimum wage of $15.00 per week. 

OPEN PRICE PLAN 

An open price plan of selling is provided, and elling belo cost, 

except to meet competition, is prohibited. 

OTHER PROVISIO S 

Provision is made for furnishing the Admini trator with su h 

statistical data as he may require. 

ECO OMIC EFFECT OF THE CODE 

The Industry mployed in 1929 approximnt 1 T 550 p r on and in 

the second quart r of 1933 approximat ly 737 per. on . a tor mploye worked an averacr of about 4 hour p r ,v ek in both Jun 

1929, and Jun , 1933. Th eff of the ode will h t mpl . nb ut 

140 additional p r ons. 

Th total incr n in 

and u ldi ional emplo 

about 2 %. 

I 'DI . 

rn r in hi final rep rt 

t f rth n d n th b fl si 

ati nallrn.lu triflR 

th fr fl w f int 

17 ') 
177 

which tend to djmfoish the amount thereof and will provide for the 

general welfare by promoting the organization of industry for the 

purpose of cooperative action among the trade groups, by inducing and 

maintaining united action of labor and management under adequate 

governmental sanctions and suvervision, by eliminating unfair competitive practices, by promoting the fullest possible utilization of the 

present productive capacity of industries, by avoiding undue restriction of production (except as may be temporarily required), by 

increasing the consumption of industrial and agricultural products 

through increasing purchasing power, by reducing and relieving 

unemployment, by improving standards of labor, and by otherwise 

rehabilitating 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 as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation 

Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection 

(b) of Section 10 thereof; and that the applicant association is an 

industrial association truly representative of the aforesaid industry; 

and that said association imposes no inequitable restrictions on 

admission to membership therein. 

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

monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 

small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have not 

been deprived of the right to be heard prior to approval of said Code. 

For these reasons this Code has been approved. 

Respectfully, 

FEBRUARY 17, 1934. 

HUGH S. JOHNSON, 

Administrator. 
CODE OF FAIR COMPETITION FOR THE FLUTED CUP, 

PAN LINER AND LACE PAPER INDUSTRY 

To effectuate the policies of Title I of the National Industrial Recovery Act, the following is hereby established as a Code of Fair Competition for the above named Industry and shall be binding on every 

member thereof. 

ARTICLE I-DEFINITIONS 

The following words are used in this Code with th meaning herein 

set forth: 

"Industry "-The manufacture of: 

(a) Fluted paper products, such as, baking cups, eclair cases, finger 

bowl liners, sundae dish liners, manicure bowl liners, barber cups, biscuit cups, butter chips and pan liners. 

(b) Fluted candy cups from paper and other materials. 

(c) Flat paper pan liners. 

(d) Lace, linen, die-cut, perforated or embossed paper produ ts, 

such as, doilies, box strips, candy box mats, shelf paper. 

(e) Paper chop holders and paper skewers. 

"Member"-A natural person, partnership, corporation, a iation, trust, trustee, trustee in bankruptcy, receiver, or other form of 

enterprise, engaged in such Industry. 

"Act "-Title I of the ational Industrial Recovery Act. 

"Administrator"-The Administrator for Indu trial R o er 

under Title I in the Act. 

ARTICLE II-ORGANIZATIO, A D ADl\UNISTRATION 

omn1ittee and on 

d 

r -

(17 ) 
179 

action of the Code Authority, or any agency thereof, may be unfair 

or unjust or contrary to the public interest, the Administrator may 

require that such action be suspended to afford an opportunity for 

investigation of the merits of such action and further consideration by 

the Code Authority or agency pending final action which shall not be 

effective unless the Administrator approves or unless he shall fail to 

disapprove after thirty days notice to him of intention to proceed 

with such action in its original or modified form. 5. The expenses of administering this Code shall be borne pro 

rata, in accordance with a formula to be adopted by the Code Authority, by all members of the Industry who accept the benefit of the 

services of the Code Authority or otherwise assent to this Code. 

6. The Code Authority shall have power to investigate alleged 

violations of this Code and acts or courses of conduct by any member 

which are or appear to be contrary to the policy of the Act or which 

tend or may tend to render ineffective this Code and to report the 

same with recommendations to the Administrator. 

7. The Code Authority is hereby constituted the agency to endeavor to effect, by arbitral proceedings or otherwise, adjustments 

of contracts entered into by members of the Industry, where the 

cost of executing such contracts is increased through the application 

of the provisions of the Act or of this Code. 

ARTICLE III-HouRs OF LABOR 

1. Employees in the Industry shall not be required or permitted 

to work hours in excess of the limits prescribed in the following 

schedules: 

SCHEDULE OF WORKING HOURS 

(a) Watchmen: Fifty-six (56) hours in any one week, but not more 

than six (6) days in any seven (7) day period; or fifty-six (56) hours in 

any one week but not more than eight (8) hours in any one day. 

(b) Chauffeurs, truckdrivers, and their helpers: One hundred 

eighty (180) hours in any period of four (4) consecutive weeks, provided, however, that time worked in excess of nine (9) hours in any 

one day or forty-five (45) hours in any one week shall be paid for as 

not less than time and one-third. 

(c) Engineers, firemen, electricians, filter plant employees, electric 

and hydro-electric operators: One hundred sixty-eight (168) hours in 

any period of four (4) consecutive weeks, provided, however, that 

time worked in excess of nine (9) hours in any one day or forty-five 

(45) hours in any one week shall be paid for as not less than time 

and one-third. 

(d) All other laborers, mechanical workers or artisans employed in 

any plant, mill or factory or on work connected with the operation of 

such plant, mill or factory: Eight (8) hours in any day and forty (40) 

hours in any one week, provided, however, that these maximum limits 

may be exceeded for any reason at any time provided that all time 

worked in excess of the maximum prescribed shall be paid for as not 

less than time and one-third, and provided, further, that no employee 

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

hours in any one week. 

(e) Employees regularly engaged in a managerial or executive 

capacity and their personal secretaries, foremen and supervisors, 
180 

receiving thirty-five ($35.00) dollars or more per week, and outside 

salesmen: No limitation. 

(f) All other employees: Forty-eight (48) hours in any one week 

but not to exceed three hundred twenty (320) hours in any period of 

eight (8) consecutive weeks. 

2. No limitation contained in said schedule shall apply to employees 

of any class when engaged in emergency repairs or emergency main- tenance work occasioned by breakdowns or involving protection of 

life or property, provided, however, that all time worked in excess 

of the limitations prescribed in said schedule shall be paid for as not 

less than time and one-third. 

3. No employer shall knowingly permit any employee to work for 

any time which, when totaled with that already performed with another employer or employer in this Industry, exce d the maximum 

permitted herein . 4. o female employee as included under paragraph (d) of Section 

1 of thi Article shall be required or permitted to work between the 

hours of 7 p. n1. and 7 a. m. 

5. No employee as included under paragraph (d) of Section 1 of 

thi Arti le hall be required or permitted to work more than six (6) 

day in any seven (7) consecutive days. 

ARTICLE IV-WAGES 
181 

7. A person whose earning capacity is limited because of age or 

physical or mental handicap may be employed on light work at a 

wage of not less than 80% of the minimum prescribed by this Code, 

provided the State Authority or other agency designated by the 

United States Department of Labor shall have issued a certificate 

authorizing his employment on such b.asis. Each member shall file 

with the Code Authority a list of all such persons employed bJ him. 

The provision of this Section requiring a certificate of authority shall 

not become effective until sixty (60) days after the effective date of 

this Code. 

ARTICLE V-GENERAL LABOR PROVISIONS 

1. No person under sixteen (16) years of age shall be employed in 

the Industry. No person under eighteen (18) years of age shall be 

employed at operations or occupations which are hazardous in nature 

or dangerous to health. The Code Authority shall submit to the 

Administrator within sixty (60) days after the eff ctive date of this 

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

employer shall be deemed to have complied with this provision as to 

age if he shall have on file a certificate or permit duly signed by the 

authority in such State empowered to issue employment or age certificates or permits, showing that the employee is of the required age. 

2. Employees shall have the right to organize and bargain collectively through representatives of their o,vn 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-organization or in other concerted activities for the purpose of 

collective bargaining or other mutual aid or protection. 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. 

Employers shall comply with the maximum hours of labor, minimum 

rates of pay, and other conditions of employment, approved or prescribed by the President. 

3. No provision of this Code shall supersede any State or Federal 

law which imposes on employers more stringent requirements 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. 

4 .. No employer shall reclassify employees or duties of occupations 

performed or engage in any other subterfuge for the purpose of defeating the purposes or provisions of the Act or of this Code. 

5. All employers shall post copies of Articles III, IV and V of this 

Code in conspicuous places accessible to employees. 

6. Every employer shall make reasonable provisions for the safety 

and health of his employees at the place and during the hours of their 

employment. Standards for safety and health shall be submitted 

by the Code Authority to the Administrator within six (6) months 

after the effective date of this Code. 

7. The Code Authority shall make a study of conditions in the 

Industry to determine the feasibility of the adoption of a shorter 

working week and shall, within three (3) months after the effective 

date of this Code, make a report of its findings to the Administrator. 

The Code Authority shall also submit to the Administrator within 
182 

sh (6) months after the effective date of this Code, a plan for the 

stabilization and regulation of employment. 

8. The n1anufacture or partial manufacture of any product of the 

Industry in homes shall be prohibited. 

ARTICLE VI-AccouNTING--SELLING 

1. The Code Authority shall, as soon as practicable, formulate a 

standard method of accounting and costing for the Industry and 

submit the same to the Administrator. When it shall have been 

approved by the Administrator, every member shall use an accounting 

and costing system which conforms to the principles of, and is at 

least as detailed and complete as, such standard method. 

2. The Code Authority may from time to time determine that an 

open price plan of selling such product or products of the Industry 

as it shall specify shall be put into effect on such date as it shall fix. 

Notice of such determination shall be announced to a11 known members 

of the Industry who manufacture such products not less than thirty 

(30) days prior to the date so fixed. 

3. At least ten (10) days prior to such date, every such member 

shall file with the Code Authority a schedule of prices and terms of 

sale for all such products or, in the alternative, shall be deemed to 

have filed a schedule conforming in respect to price and terms of sale 

with the schedule at any tinie on file which states the lowest price 

and the most favorable terms. 

4. All such schedules shall be in such form as the Code Authority 

shall prescribe and shall contain all information necessary to permit 

any interested person to determine the exact net price per unit after 

all discounts or other deductions have been made, whether pertaining 

to a single order, a commitment for future delivery, or a contract. All 

such original schedules shall become effective on the date fixed b the 

Code Authority as provided in Section 2 hereof. 

5. A revised schedule or schedules, or a new schedule or schedules, 

or a notice of withdrawal of a schedule previously fil d, ma be filed 

by a member with the Code Authority at any tim , provided, however, that any member who withdraws a schedule without sub tituting 

a new schedule therefor shall be deemed to have filed a schedul onforming in respect to price and t rms of sale v.rith the sch dule at any 

time thereafter on file which states the lowest pri e and the most 

favorable terms. Any schedule or notice filed hereund r hall b me 

eff ctive ten (10) days after the date of filing, provid d, h we r, that 

an increased price may become eff ctive at u h earlier date a the 

member filing the ame hall fix. 

6. Th ode Authority shall promptly upply all m mber 

Indu try who manufa ture any par i ular produ t ,,-ith pi f all 

s hedul , r i ed h dul , and n ti of "Tithdrawal, whi h p rtuin 

to su h produ t. Imm diat 1 upon r ipt f inf rmati n r I tiv 

h withdrawal of a pri f r any pr du t, an m mb r ma fil 

n i of withdrawal f hi own pri f r h m pr du t ff tiY 

a f th san1e date a th no i f wi hdrawal f u h th r n1 mb r. 

Immedi t 1 on r ipt f inf rmL i n that h dul th n n file 

ha. b n r i d r h t a n w h d ul ha b n fil d nn m m r 

m( y file r vi d h dul nf rn1ing a t pri nd t rm t the 

sch dule of su h oth r n1 1nb r, and ff iv nth 11 d t , r he 
183 

may notify the Code Authority that he adopts as his own the schedule 

of such other member. In the latter event, he shall be d emed to 

have filed a revised schedule conforming to the revised schedule of 

such other member. 

7. o such schedule of prices and terms of sale filed b. an member, 

or in effect at any time, shall be such as to permit the sale of any 

product at less that the cost thereof to such member determined in 

the manner provided in Section 11 hereof, provided, however, that 

any member may by notice to the Code Authority adopt as his own a 

lower price filed by another designated member. Such adoption shall 

become automatically void upon the withdrawal or revision upward 

of the price adopted. 

8. o member who shall have filed a price, or adopted as his o-wn 

a price filed by another member for any product of the Industry, shall 

sell such product for le s than such price or upon terms or conditions 

more favorable than stated in such price schedule. No member who 

shall have failed to file a price for any product for which the open 

price plan is in effect, shall sell such product at a lower price or on 

terms more favorable than the lowest price and most favorable terms 

stated in a.n.y price schedule for such product then on file. 

9. The Code Authority shall furnish at cost to any non-member requesting them, copies of any price schedules which have been filed 

with it. Such price schedules shall be made available to non-members 

at the same time that they are sent to members. 1 

10. o member shall ell any product of the Industry for which no 

open price plan is in effect at less than the cost thereof to such member, 

determined as provided in Section 11 hereof, except to meet the price 

of a competitor whose price does not violate such Section. 

11. Cost, for the purposes of this Article, shall be determined 

pursuant to the method of accounting and costing pres ribed as provided in Section 1 hereof as soon as such method is adopted, and approved, and theretofore pur uant to the method employed by such 

member subject to such preliminary rules as the Code Authority hall 

from time to time prescribe with the approval of the Administrator. 

12. For the purpose of determining whether Section 7 and 10 

hereof have been complied with, every member shall upon the request 

of the Code Authority furnish a d ignated agency of the Code 

Authority in respect to closed tran actions only, with complete information in regard to any quotation, order, contract, or sale of any 

prodttct of the Industry, including information as to specifications, 

quantities, price, conditions of storage, ran portation er delivery, 

terms of billing, cash or trade discounts allowed and oth r pertinent 

facts relating to such quotation, contract or sale. 

13. othing herein contained shall be construed to prevent the 

di position of distress merchandise required to be sold to liquidate a 

defunct or insolvent busine~s or of di continued lines, damaged goods 

or seconds, in such manner, at such price and on such terms and 

conditions as the Code Authority and the Administrator may appro,e. 

14. Nothing herein contained shall be construed to prevent the 

fulfillment of a bona fide contract existing on the effective date of this 

Code. 

1 See paragraph 2 of order approving this Code. 
184 

ARTICLE VII-REPORTS AND STATISTICS 

1. Each member shall prepare and file with an impartial agent 

designated by the Code Authority at such times and in such manner 

as it may prescribe, such statistics, data and information relating to 

plant capacity, volume of production, volume of sales in units and 

dollars, orders received, unfilled orders, stocks on hand, inventory 

both raw and finished, number of employees, ,vage rates, employee 

earnings, hours of work and other matters, as the Code Authority or 

the Administrator may from time to time require. Any or all information so furnished by any member shall be subject to checking for 

the purpose of verification by an examination of the books, accounts 

and records of such member by any disinterested accountant or 

accountants or other qualified person or persons designated by the 

Code Authority. 

2. Except as otherwise provided in the Act, or in this Code, all 

statistics, data and information filed or required in accordance with 

the provisions of this Code shall be confidential and the statistics, 

data and information of one member shall not be revealed to another 

member. No such data or information shall be published except in 

combination with other similar data and in such a manner as to avoid 

the disclosure of confidential information. The Code Authority shall 

arrange in such manner as it may determine for the current publication 

of industry statistics to members. 

3. The Code Authority shall make such reports to the Administrator as he may from time to time require. 

4. In addition to information required to be submitted to the Code 

Authority there shall be furnished to Government Agencies such 

statistical information as the Administrator may deem necessary for 

the purposes recited in Section 3 (a) of the Act. Nothing contained 

in this Code shall relieve any member of any existing obligations to 

furnish reports to any Government Agency. 

ARTICLE VIII-MoNOPOLIES 

1. No provision of this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppr s or di criminate 

against small enterprises. 

ARTICLE IX- R ECOMME DATIO s 

I. The ode Authority may, from time to tim , pr n to the 

Ad.mini trator recomm nda,tjons based on condition in the Indu try 

which will tend to effectuate the operation f thi od and th policy of the Act, and in particular along the followin lin :-

(a) For the establi hment of additional rul of air Trad Practi sf r th Indu try and for the modi:fi ati n fit Trad 

and the enforcem nt th reof. 

(b) For th tabli hment f plan t equalize pr du ti n with d - mand, that th int r t f th Indu t nnd th publi ma b 

pr p rly r d. (c) 1 r dealing wi h an oth r in qu li . that mu ari t 

ger the tabilit of th nd 1stry and of pr du ti n nnd mpl 
185 

(d) For an increase or decrease in the number of Industry members 

of the Code Authority and/or for a change in the method of choo ing 

such members. 

2. For the purpose of assisting the Code Authorities of the Pape.r 

Manufacturing and/or Converting Industries in the adjustment of all 

labor disputes and labor complaints arising within such Industries, 

the Code Authority shall consider the advisability of creating a Joint 

Industrial Relations Board for such Industries and shall report it~ 

recommendations to the Administrator. 

3. Recommendations made pursuant to Sections 1 and 2 hereof 

when approved by the Administrator shall have the ame forc e and 

effect as other provisions of this Code. 

ARTICL E X-TRADE PRACTICES 

1. The following are hereby constituted Trade Practices for the 

Industry and failure to comply with the provisions thereof shall be a 

violation of this Code: 

(a) Members of the Industry shall not practice deception in regard 

to that which is sold or its selling price by false or misleading de ·cription, statement, record, or undisclosed consideration. 

(b) Members shall refrain from dumping, deferred deliYery, extension of stated credit and secret rebates. 

(c) Members shall not wilfully injure by falsely defaming a competitor's goods, credit, or ability to perform his contract . (d) Members shall not ·wilfully induce or attempt to induce the 

breach of a competitor's contract. 

(e) No member shall give, permit to be given, or directly offer to 

give, anything of value for the pw·pose of influencing or rewarding the 

action of any employee, agent or representative of another in rela ion 

to the business of the employer of such employee, the principal of 

such agent or the represented party, without the knowledge of such 

employer, principal or party. The foregoing provisions shall not be 

construed to prohibit free and general distribution of articles comn10nly used for advertising except so far as such articles are actually 

used for commercial bribery as herein defined. 

(f) No member of the Industry shall ship goods on consignment, 

except under circumstances to be defined by the Code Authority 

where peculiar circumstances of the Industry re.quire the practice. 

ARTICLE XI-GENERAL PROVISIONS 

1. If any member is also a member of another industry, the provisions of this Code shall apply to and affect only that part of his 

business which is included in this Industry. 

2. Any work or process incidental to and carri d on by a member at 

his plant as a part of the manufacture of any product of the Industry, 

shall be regarded as a part of this Industry. 

3. Such of the provisions of this Code as are not required to be 

included therein by the Act, may, with the approval of the Administrator, be modified and eliminated as changes in circumstance or 

experience may indicate. 

4. This Code and all the proYisions thereof are expressly made subject to the right of the President, in accordance ,~.rith the provisions of 
186 

Section 10 (b) of the Act, from time to time to cancel or modify any 

order, approval, license, rule or regulation, issued 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 imposed by him upon his approval thereof. 

5. This Code shall become effective on the second 11onday after the 

date upon which it shall be approved by the Presichmt of the United 

States. 

Approved Code No. 296. 

Registry No. 407-07. 

0 

UNIVERSITY OF FLORIDA 

II I II IIIIII Ill Ill lllll lllll II IIII IIIIII Ill lllll II IIIII IIIII Ill I I 

3 1262 08852 5794