Approved Code No. 556 Regi tr y No. 1724- 41 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALE AND RETAIL 

AUTOMOBILE SALES, SUPPLY, REPAIR, 

MAINTENANCE, AND SERVICE 

INDUSTRY IN THE TERRITORY 

U.S. DE 

OF HAWAII 

.$ 

AS APPROVED ON MARCH 26, 193W 

WE DO OUR PAR't 

- ---

' ITED TATES 

GOVER.· 1E ' T PRI "TL G OFFI E 

WASHINGTON : 1935 
'l'his p ubli ·ation i for sale by the Sup riuteoclent of D ocume:,ts. Government 

Printing Office, Wushington, D. C., and by tlle f ollowing N. R. A. offices : 

Atla nta, Ga.: 625 Citizens & Southern Nationa l Ban k Building. 

Baltimore, Md. : 130 Customhou::;e. 

Birmingham, Ala.: 201 Liberty Nationa l Life Building. 

Boston, Mass.: R oom 1200, 80 Federal Street. 

Buffalo, N. Y. : 219 WhHe Building. 

Chicago, Ill.: R oom 204, 400 North Michigan Avenu 

CleYeland, Ohio.: 520 Bulkley Building. 

D a llas, Tex.: 1212 Republic Bank B uilding. 

D atroit, i\lich.: 415 New Federal B uilding. 

Houston, f 'ex. : 403 Milam Building. 

Jacl;:sonvilie, Fla.: 425 UniteL1 8t.t t0s Courthou..:e and P o t Office 

Building. 

L os Angeles. Calif. : 751 Figueroa Street, South. 

L ouisville, K y. : 408 Federal Buildina . 

l\Iin nen polis, Minn.: 900 Roanoke B ui !ding. 

Nash Yill e. T enn.: 415 Cotton States Building. 

Newark, N. J.: 434 Industrial Ofiice Building, 1060 Broad Street. 

New Orleans, La . : 214 Customhouse. 

New York, N. Y.: 45 Broadway. 

Oklahoma City, Okla. : 427 Commerce Exchange Building. 

Philadelphia, Pa.: 933 Commercial Trust Building. 

Pitt burgh, Pa.: 401 Law and Finance Building. 

P ortl a nd, Oreg.: 407 Park Building. 

Providence, R. I.: National Exch a nge Bank B uiltl ing, 17 Exchange 

Street. 

St. L ouis, l\io.: Suite 1220, 506 OliYe Str eet. 

San Francisco, Calif.: Humbolt Bank Buildina, 785 l\Iarkct Street. 

Seattle, Wash.: 1730 Exchange Building. 
Appro ed Code No. 556 

CODE OF FAIR COMPETITION 

FOTI THE 

\VHOLESALE AND RETAIL AUTOMOBILE SALES, 

SUPPLY, REPAIR, MAINTENANCE AND SERVICE 

INDUSTRY IN THE TERRITORY OF HAW All 

As Approved on March 26, 1935 

ORDER 

Arrnon To CoDE OF FAIR Col\IPETITION FOR THE \V HOLE ALE AND RETAIL A TO IOBILE SALES SuPPLY, REPAIR, ~1AIXTENAN E AND SEnYICE lNDu TRY IX THE TERRITORY OF HA ·wAll 

An application ha' ing been duly made pur uant to, and in full 

compliance with the provisions of Title I of the National In lu trial 

Recovery Act approYed June 16 1933 for apprm al of a Code of 

Fair Competition for the '' hole ale and Retail Automobile Sale~ , 

1ppl Repair ~1aintenance and Service Indu try in the T€rritory 

of Hawaii and hearing having been duly held thereon and the 

Deputy Admini trator for Hawaii haYing made and ubmitted to the 

N a ional Indu trial Recovery Board his report on aid Code, containing hi fin lin a with re I ect thereto and the annex d report of 

1 he National Indu trial Reco\ ery Board on aid ode, containing 

finding with re pect th~reto having been made and directed to th 

Pr ident: 

NOW THEREF RE, on behalf f the Pre ident of the Unit ll 

tate the N ati nal In lu trial Recover. Boar l pur uant to author-

} tv t d in it bv Exe utiYe rcl r f the Pre i l nt, including 

E·x utiv rder · . G ~g and otherw·i e · loe hereby incorporat 

1 . refer nee . aid r port f th Depu~..y Admini trator f r H awaii 

an l th ann x d report f th National Indu trial R ecovery Board 

an 1 c1 e. h r 1 y c n ur in ancl a 1opt th fin ling of fa t mal 

th r in an 1 l e find that th aid c1 compli in all r e p t 

with th p rtin nt 1 rm i. i n. a .. l will promote the policy and 1 nrpo .. of Tit] I f th Rational Inclu: trial R c OYer. "" t. ancl rJo .. 

h r by r l r that . aiel l f Fair mp titian 1 e, and it i 

h r h}r a 11'0\·ecl. nl j ·t t th e f 11 ·ing on E~i n : . 

(1) That aU nwml r. f th \Yh le. al & eta1l ut m I d al . , 

npply, R pair ~faint nanr ar;d lTi Indn. try in th r~ it r. ' 

£ Hu waii. a l fine l in th aH1 c1 un ler Arb 1 II. e t1 n 4 

to th xten that the ar naagina in the aid In lu try in the Ter1243630----1603--117----35 (-3) 
54 

riiory of Hawaii, shall be exempt from the provi ions of any other 

Code of Fair Competition to which they might now or might hereafter, but for thi order, be subject; 

(2) That thi Cod shall become effective thirty (30) day from 

the date hereof unle · good can e to the contrary i hown to th 

National Industrial RecoYery Board within twenty-fiye (25) day · 

and the National Indu trial Recovery Board is n a subsequent 

Order staying or modifying this Order of Approval; 

(3) That Article VIII be and it is hereby tayed until further 

order of the National Industrial Recovery Board, pending submission by the Territorial Code Authority of !evidence to show the need 

for the provisions of said Article. 

NATIONAL INDUSTRIAL RECOVERY BOARD, 

By W. A. HARRIMAN, AdministTative Officer. 

Approval recommended: 

BARTON vV. MuRRAY, 

Division Ad1ninistrator. 

'VASIIINGTON' D. c., 

JJ! a?'ch ... 6, 1935. 
REPORT TO TilE PRESIDENT 

'I he PRESIDEXT. 

Th e lrhite Ilouu._ . 

1e of Fair Competition for the 

ales, Supply, H.epair, l\1aintr'-

HO"CRS AXD WAGE 

-four (44) 

ha ll not be permitlollar ) 

than thirty dollars ($30.00) 

paid not less than fourt een 

thrr duties shall be pai(1 not L.. ... 

h·ss tban forty cents (400 per 

:cnts (2.:5¢ ) per hour. 

·"nts (:10 ·) per hour. 
56 

(£) Apprentices hall be paid not less than the following rates: 

1. First three (3) months, ten cents (10¢) per hour. 

2. Second three ( 3) months, fifteen cents ( 15¢) per hour. 

3. Third three (3) months, twenty cents (20¢) per hour. 

4. Fourth three (3) months, twenty-five cents (25¢) per hour. 

5. First six (6) month , second year, thirty cents (30¢) per 

hour.· 

6. Second six (6) month , econd year, thirty-five cents (35¢) 

per hour. 

(g) Beginners and learners engaged in clerical work, sales work 

(except outside salesmen and collectors) or as filling station attendants during the first three (3) months of employment shall be 

paid not less than ten dollars ($10.00) per week. 

(h) Outside salesmen, if on a salary basis, shall be paid not less 

than sixty dollars ($60.00) per month; and, if paid on a commission 

basis, shall be guaranteed a drawing account of not less than fifty 

dollars ($50.00) per month. 

Employees shall be paid not less than one and one-third (Pil) 

times the ree:ular hourly rate of wages for all oYertim work. 

ECONOMIC EFFECT OF THE CODE 

The prorjosed Code will effect a wage incr ease throughout the Industry of approximately thirty-five per cent (3·5 % ). It will also 

bring about a reduction in the hours of labor in the Industry of more 

than twenty per cent (20 % ) as compared with July 1, 1933. 

FINDINGS 

The Deputy Administrator for Hawaii, in a letter addressed to 

the National Industrial Recovery Board, has made a clear detailed 

report of the history of the Industry covered by this Code and of 

the conditions existing in that Industry at the present time. He has 

made lengthy and detailed findings of fact in regard to said Industry. 

The said report of the Deputy Administrator for Hawaii is submitted herewith and is incorporated by reference into this report, and 

the National Industrial Recovery Board does hereby concur in and 

adopts the report submitted. For these reasons this Code has been approved. 

For the National Industrial Recovery Board: 

l\1ARCH 26, 1935 

w. A. HARRIMAN, 

Administ1·ative Officer. 
:B R Til i'.J \ Til L 1 .• .\L 'ALES, 'rP LY, REP \.IR, 

E IX T 'THY 

.r~ TilE 

TERinTOTIY F l-Lo\ WAH 

Ann LE I-P nr 'nE · 

fie tuat the oli ie of Titl I of th .._ ati nal Indu trial 

R v ry Act thi Cod is e tabli hed a a Code f Fair Competition 

for the \Vhol ale and Retail Aut mobil ale Supply Repair, 

~Iaint nance and Service Indu try of the Territory of H.awaii an l 

it provi ion hall be the tandar l of fair competition for u h 

In lu try and be binding upon eYery member thereof. 

ARTICLE II-DEFIKITION 

E TION 1. The term ' Code " as u eLl herein mean the Co l of 

Fair ompetition for this Indu try. 

ECTIO.r 2. The term Territory" as u e l herein mean. the Territor of Hawaii. 

ECTION 3. The term ' Indu try" as u ed herein mean the Vi holeal and retail automobile sale , supply, repair, maintenance and 

ervice Indu try of the Territory of Hawaii. Thi. definition doe 

not include the manufacture of automobile , parts, or tire , or the 

refinino- of petroleum. 

ECTION 4. The term ' ~Iember of the Indu try a u ed herein 

mean any per on ho whole ale or retail new and/ or use l autom bile I arts acce orie , tires, batterie , or other replacement upIIi there£ r · or who rebuild , a emble , renovate , repair , paints 

r trin aut mobile , or any part thereof· or who retail petroleum 

1r du t or other upplie for u e in automobiles; or who eno-aoin th parking or torin · of automobiles · or who in any other mann r ngao·e in any pha e of the automobile in lu try. 1 

E TION . Th t rm per on a u ed herein m an an r in liYidual partn r hip hui orp rati n, tru t buyino· or ellino- lub 

·iati n. 

TI K G. Th term 

rganiz d 1 artner hip. 

' E TION 7. The t rm 

A 1t m bil al an l 

II a' aii. 

hui' a u eel h r in m an. an informally 

n ' a u ed h r in m an The 

s ciation f th T erritor 7 f 

of ora l' approving thi. Code. 

(57) 
58 

SECTION 9. The term "Automobile" a u eel herein means automo- bile , including passenger cars, trucks, bus es and other commercial 

automotive vehicles, for u e on the highways, excluding tractors and 

motor cycles. SECTION 10. The term "County" as used herein means the City 

an l County of Honolulu and/ or the other counties of the Territory 

of Hawaii, a defined in Section 1575 of the Revised Laws of Hawaii 

1925. 

SEcTION 11. The term "Executive" as used herein means one 

who, either for himself or for an employer, is engaged primarily in 

supervi ing employees. 

SECTION 12. The term "employee" as used herein includes any 

and all persons engaged in the Indu try, however compensated, except a member of the Indu try. 

SECTION 13. The term "employer" as used herein includes anyone 

by whom such employee is compensated or employed. 

SECTION 14. The term" Part-time employee" as u eel herein mean 

a person employed in any classification of the Industry less than the 

maximum hours of employment permitted in such cla sification. 

SECTION 15. The term "Impartial Agent" as used herein means a 

confidential aO'ent designated by a Code Authority or the National 

Industrial Recovery Board to serve as its agent in making investigations and reports. 

SECTION 16. The terms" President", "Act", and" Board" as u eel 

herein, mean respectively, the President of the United States, Title 

I of the National Indu trial Recovery Act, and the National Industrial Recovery Board. 

ARTICLE III-HouRs 

SECTION 1. lYiembars of the Industry shall not knowingly permit 

any employee to work for any time which, when added to the time 

spent at work for another employer or employers, exceeds the maximum permitted herein. 

SECTION 2. The weekly wages of all employees receiving more 

than the minimum wages prescribed in this Article shall not bo reduced from the rates existing on July 15, 1933, notwithstanding any 

reduction in the number of working hours of such employees. 

SECTION 3. No employer shall permit an employee to work more 

hours per day or per week than hereinafter provided, except in any 

emergency, and all such emergency work in excess of the pre cribed 

hours shall be considered overtime. 

The following are recognized as holidays: New Year's Day, 'Va hington's Birthday, Memorial Day, Kamehameha Day, Fourth of 

July, Labor Day, Thank giving Day and Christmas, or the days officially designated for the observance thereof. 

(a) No employee, except day watchmen, night watchmen and 

garage floormen, may be permitted to work on holiday , except (1 ) 

filling station employees may be permitted to work not more than 

four (4) hours on such days, and (2) emergency repair work involving breakdowns or prptection of life or property may be permitted, 

providing that such emergency labor performed on the above holidays by any employee, shall be considered overtime. 
5 

ECTIOX 4. No employee shall be permitccl 

forty-four (44) hours in any seYen (7) clay 1 

eight (8) hours in any twenty-four (24) h 

follows: 

(a) Ther 

men and/ or collector ..... 

to work in 

riotl. nor in 

d 

aJ.---

(b) \Yatchmen who perform no other duties shall not be permitted to work more than fifty-six ( 5G) hours in any sev-en (7) day 

period, and thirteen (13) days in any fourteen (14) day period. 

(c) The maximum hours for sales employees, except outside sale;::,-

men and collectors, "·atchmen, who perform other duties, filling station attendants (gas, oil, battery, tire, wash and lubrication serv-ice) 

a rage floormen, janitors, chauffeurs, and d1ivcrs shall be forty-eight 

48) hours per week. 

3ECTION 5. No proprietor, employer, executive, or other employee 

hall work at productive labor more hours per day or per week than 

is permitted under this Code for any employee in the same type of 

work, except as follows: 

(a) A filling station attendant who has no other occupation and 

who is employed as the only worker in a filling station which is not 

operated by, attached to or under the supervision of any other business or department of business, may be permitted to work fifty-two 

(52) hours in any seven (7) days period, but not more than ten (10) 

hours in any one day. 

(b) The hours of such employment may be divided among any 

number of split shifts, provided that the total working time plus 

the intervals between shall not exceed fifteen ( 15) hours in any one 

working day; and further provided that the intervals between shift 

hall in no case be less than two (2) hours each. 

(c) A schedule of hours at which service is available in such filling 

tation shall be posted in a conspicuous place oil the premises, and 

uch schedule shall be approved by the Territorial Code Authority 

and the Board prior to its adoption. 

I 

ARTICLE IV-\V AGE 

(1) first thr 

(2) over thr 

1:?-i:JG0°-lGO:J-117-35-- 2 

hall be paid not le s than Fourteen 

hall be paid not le 

than the followmg 
60 

(f) Apprentices, (Mechanical Department) shall be paid not less 

than the following rates : 

(1) First three months, 10¢ per hour 

(2) Second three months, 15¢ per hour 

(3) Third three months, 20¢ per hour 

( 4) Fourth three months, 25¢ per hour 

( 5) First six months, 2nd year·, 30¢ per hour 

( 6) Second six months, 2nd year, 35¢ per hour 

(g) Beginners and learners el)gaged in clerical work, sales work 

(except outside salesmen and collectors) or as filling station attend- ants, during the first three months of employment shall be paid not 

less than Ten Dollars ($10) per week. 

(h) Outside salesmen and collectors, if on a salary basis, shall be 

paid not less than Sixty Dollars ($60) per month; and if paid on a 

commission basis shall be guaranteed a drawing account of not less 

than Fifty Dollars ($50) per month. 

SECTION 2. Employees shall be paid not less than one and onethird ( 11/3 ) times the regular hourly rate of wages for all overtime 

worked. The regular hourly rate for any employee whose wage is 

paid on a weekly basis shall be the quotient of such employee's weekly 

wage divided by the number of hours regularly worked by such 

employee. 

SECTION 3. No deduction shall be made from the compensation of 

any employee who is paid on other than an hourly basis because of 

his absence from work in the observance of any of the hereinbefore 

mentioned holidays. 

SECTION 4. Part-time employees shall be paid not less than the 

proper proportion of the wage specified for full time in the classifications in which they work. 

ARTICLE v-· GENERAL LABoR AND OTHER PRovrsiONs 

SECTION 1. (a) A person may be employed as an apprentice by 

any member of the Industry at a wage not less than the minimum 

wage prescribed in Section 1 (f) of Article IV if such member shall 

have first obtained from an agency to be designated or established by 

the Secretary of Labor, a certificate permitting such person to be 

employed in conformity with a training program approved by such 

agency, until and unless such certificate is revoked. (b) The term "Apprentice" as used herein shall mean a person of 

at least sixteen (16) years of age who has entered into a written contract with an employer or an association of employers and which 

contract provides for at least two thousand (2,000) hours of reasonably continuous employment for such person, and his participation 

in an approved program of training as hereinabove provided. 

SECTION 2. Demonstrators and necessary transportation for business purposes shall be furnished by the employer, without co t to the 

employee, or the employer shall make a reasonable allowance for such 

demonstrators and business transportation if the employee furnishes 

the same at his own expense. 

SECTION 3. Mechanical shops or departments may employ not more 

than one (1) artisan's helper for each two (2) qualified mechanics 

or artisans employed by such shop or department (except that when 
1 

ginners or learners in other than mechanical departlimited to not more than ten percent (10% ) of the 

£ apprentices shall be filed with 

ompany unwn or 

a labor organization 

yment approve 
62 

SECTION 11. .No person under eighteen (18) years of age shall be 

employed in the Indu try in hazardous occupations. No person 

under sixteen (16) years of age shall be employed in the Industry 

in any capacity. Any employer shall be deemed to have complied 

with this provision as to age if he shall hav~ on file a certificate 

or permit, duly signed by the Authority in the Territory of Hawaii 

empowered to issue employment or age certificates showing that the 

employee is of the required age. Within thirty (30) days after 

the approval of this Code the Territorial Code Authority shall 

furnish to the Board a list of hazardous occupations within the 

meaning of this Section. 

SECTION 12. Employers when furnishing meals or lodging to employees, shall not 11nake more than a reasonable charge against the 

wage or salary of such employee therefor. The maximum amounts 

which may be so charged shall be t~rmin d by the Territorial 

Code Authority, subj ect to the approval of the Board, and upon 

approval of the Board the employer shall be permitted to make 

payroll deductions therefor. No full-time employee, except an 

apprentice during the first year of his apprenticeship, shall be 

eharged more than one-half of his wages for meals and lodging 

and in no event shall he be obligated to accept such perquisites 

in lieu of cash wages or be required to lodge or board with his 

employer as a condition of employment. 

SEcTION 13. No employer shall reclassify employees or duties of 

occupations performed or engage in any other subterfuge so as to 

defeat the purposes or provisions o£ the Act or of this Code. 

SECTION 14. All employers shall post and keep posted copies of 

the Labor provisions of this Code in conspicuous places accessible 

to all employees. Every member of the Industry shall comply with 

all regulations and rules relative to the posting o:f provisions of 

Codes of F air Competition which may be prescribed from time to 

time by the Board. 

SECTION 15. Within three (3) months after the approval of this 

Code, the Territorial Code Authority shall investigate and report to 

the Board a proposed schedule of hours during which the members 

o£ the Industry shall carry on business. Upon approval by the 

Board, such schedule shall become a part of this Code for the Industry in the county concerned. SECTION 16. No provision in this Code shall supersede any Territorial or· F ederal law which imposes on employers more stringent 

requirements as to age of employees, wage , hours of work, or as to 

safety, health, sanitary or general .working conditions, or insurance, 

or fire protection, than are imposed by this Code. 

SECTION 17. No employee shall be discharged, demoted, or otherwise discriminated against by reason of making complaint or giving 

evidence with respect to an alleged violation of any Code. 

ARTICLE VI- ORGANIZATION, PowERS AND DuTIE OF THE CoDE 

AuTHORITY 

SECTION 1. (a) Within sixty (60) days after the effective day of 

this Code there shall he constituted a Territorial Code Authority con- sisting of eight ( 8) members to be elected as follows : 
63 

l ted b. th f th A ociation on 

b th m mb r · of the ociation n the . 

t d by the m mb r of the o iation n he 

d b the memb r of the 

or 
64 

shall uny member of the T rritorial Code Authority, exercising rea- sonable diligence in the n l uct of his duties hereunder, be liable · to anyone for any action or omi sian to a t und r this Code, except 

for his own wilful malfea ance or non-fea ance. SEcTid~ 5. If the Board hall at any time det rmine that any 

action of tho Territorial C cle Authority or any agency thereof may 

be unfair or unjnst or ontrary to the public intere t, the Board may 

require that uch action be su pendecl to affor l an opportunity for 

inve tigabon of the merits of uch action and further on ideration 

by uch Territorial C c1 Authority or agency pending final action 

which hull not be effective unles the Board approve or unles it 

shall fail to disapprove after thirty (30) clays' notice to it of intention to I roceed with uch action in its original or modified form. 

SECTION 6. (a) Subor linate to the Territorial Code Authority 

established in Section 1 of this Article, there shall be constituted 

County Code Authorities for tho e counties of the Territory, where 

in the opinion of the Board, the Territorial Code Authority will 

require assistance of a regional group in its duties of investigation, 

fact-finding, education and re earch. Members of the County Code 

Authorities hall be eleded in a manner. satisfactory to the Board, 

by the Industry at large, in the county where they are to serve and 

shall be truly representative of the Industry in that county. 

(b) In addition to membership on the County Code Authority us 

above provided, 'there may be one ( 1) member, without vote, and 

without expense to the Indu try, to be known as the Admini tration 

member, to be appointed by the Board to erve for su h term as it 

may specify. 

SECTION 7. Pow·ers and Duties.-Subject to such rules and regulations as may be i ued by the Board, the Territorial Code Authority 

shall have the following power and duties, in addition to those 

authorized by other provi ions of the Code. 

(a) To insure the execution of the provisions of this Code and 

to provide for the compliance of the Indu try with the provisions 

of the Act. (b) To adopt by-laws and rules and regulations for its procedure. 

(c.) To obtain from members of the Indu try such information 

and reports a are required for the a lmini tration of the Code. In 

addition to information r equired to be ubmitted to the Territorial 

Code Authority, members of the Ind1rtry subj ect to this Code hall 

furnish uch stati tical information a the Board may deem neces- sary for the purposes recited in Section 3 (a) of the Act to such 

Federal an l Territorial agencies as it may de ignate; provide l that 

nothing in thi Code shall relieve any member of the Indu try of 

any existing obligations to furni h reports to any government agency. 

No individual reports hall be eli clo eel to any other member of the 

Industry or any other party except to uch other governmental 

ag ncies as may be direct d by the Board. 

( l) To use such trade as ... ociations and other ag ncies a it deems 

proper for the carrying out of any of it activities provided for 

herein, provided that nothing herein hall relieve the Territorial 

Code Auth rity of its duties or re ponsibilitie under this Code and 

that uch trade a ociations and agencies shall at all times be subj·ect 

to and comply with the provisions hereof. 
q5 
members of the Indu try in their relations with each other or with 

other industrie ; measures for industrial planning, and stabiliza- tion of employment; and including modifications of this Code which 

shall become effective as part hereof upon approval by the Board 

after uch notice and hearing as it may specify. 

(i) To appoint a Trade Practice Committee which shall meet 

with the Trade Practice Committees appointed under such other 

Codes as may be related to the Industry for the purpose of formulating fair trade practices to govern the relationships between employers under this Code and under such other Codes to the end that 

such fair trade practices may be proposed to the Board as amendments to this Code and such other Codes. 

(j) To provide appropriate facilities for arbitration, and subject 

to the approval of the Board, to prescribe rule of procedure and 

rules to effect com.pliance "ith a wards and determinations. 

SECTION 8. Each member of the Industry shall keep accurate and 

complete records of its transactions in the Indu try whenever such 

records may be required under any of the provisions of this Code, 

and shall furni h accurate reports based upon such records concern- ing any of such activities when required by the Territorial Code 

Authority or the Board. If the Territorial Code Authority or the 

Board shall determine that substantial doubt exists as to the accuracy of any such report, so much of the pertinent books, records and 

papers of such member as may be required for the verification of 

such report may be examined by an impartial agency, agreed upon 

between the Territorial Code Authority and such member, or, in the 

absence of agreement, appointed by the Board. In no case shall the 

facts disclosed by such examination be made available in identifiable form to any competitor, whether on the Territorial Code Authority or otherwise, or be given any other publication, except such 

as may be required for the proper administration or enforcement of 

the provisions of this Code. 

ARTICLE VII- TRADE PRACTICES 

SECTION 1. I naccurate Advertising.-N o member of the Industry 

shall publish advertising, (whether printed, radio, eli play or of any 

other nature) which is misleading or inaccurate in any material 

particular, nor shall any member in any way misrepresent any goods 

(including but without limitation its use, trade-mark, grade, quality, 

quantity, origin, size, ubstance, character, nature, finish, material 

content, or pl""'paration); or credit terms, values, I olicies, services, 

or the nature or form of the busine s conducted. SECTION 2. False Billing.-N o member of the Indu try shall 

knowingly withhold from or insert in any quotation or invoice any 

statement that makes it inaccurate in any material I articular. 

SECTION 3. Inaccurate Labelling.-No member of the Industry 

hall brand or mark or pack any goods in any manner which is in- tended to or loes deceive or mislead purchasers with respect to the 

brand, grade, quality, quantity, origin, size, sub tance, character, 

nature, finish, material content or preparation of such goods. SECTION 4. Defamation.-. No member of the Industry shall defame 

a competitor by falsely imputing to him dishonorable conduct, in-
67 

rf rm c ntra t qu ti nabl cr it tandino-, or by other 

ntati n r by fal ly i parao·ino- th gra e or quality 

to K ('P R Pr01·d.- 1 ailur 

7 (c) an tion f 

to kcc1 

rti 1 \ I 

re or cls 

f thi 
68 

Code, or to pre ent such records for inspection as therein required, 

constitutes an unfair trade practice. 

SECTION 13. llfisuse of BWI.Jing Power.-N o member of the Industry shall extend to an employee or any other person the advantage of his buying power; or grant or offer to grant to any person 

the advantage of another person's buying power, whereby any seller 

of merchandi e or service might be deprived of his legitimate. profit. 

SECTION 14. Lotteries, Prizes, Etc.- No member of the Industry 

shall employ any lottery, prize, wheel of for tune, or other game of 

chance in connection with the sale of any merchandise or service. 

SECTION 15. Absorbing Taxes.-No member of the Indu try shall 

absorb, or offer to absorb, any Territorial or Federal tax intended 

to be paid by the consumer. 

SECTION 16. Coupon B ooks and Sc1·ip.-No member of the Industry shall sell or redeem coupons or scrip of any nature at a discount in connection with the sale of any merchandi e or service. 

SECTION 17. False Claim of MembeTship in Trade Association.- No member of the Industry shall claim, by advertisement or otherwise, that he is a member of a trade association, when he is not in 

f act a member thereof. 

ARTICLE VIII 2-0PEN PRICE FILING, EMERGENCY, AND AccouNTING 

PROVISIONS 

SEcTION 1. Open Price.-(a) Each member of the Industry shall 

file with a confidential and disinterested agent of the Territorial Code 

Authority or, if none, then with such an agent designated by the 

Board, identified lists of all of his prices, discounts, rebates, allowances and all other terms or conditions of sale, hereinafter in this 

Article referred to a "price terms", which lists shall completely 

and accurately conform to and repre ent the individual pricing practices of sail member. Such lists shall contain the price terms f or all 

such products of the Industry as shall be designated by the Code 

Authority. Said price terms shall in the first instance be filed within 

sixty ( 60) day after the effective date of this Code. Price terms 

and revised price terms shall become effective immediately upon 

r eceipt thereof by said agent. Immediately upon receipt thereof, 

E:ai l agent shall by telegraph or other equally prompt means notify 

Ea icl member of the time of such receipt. Such lists and revisions, 

with th.o effective time thereof, shall upon receipt be immediately and 

simultaneously distributed to all members of the Industry and to 

all of their customers who have applied therefor and have offered to 

defray the cost actually incurred by the Territorial Code Authority 

in the preparation and distribution thereof and bo available for inspection by any of their customers at the office of such agent. Sail 

li ts or revi ions or any part thereof shall not be made available to 

any person until relea ed to all members of the Industry and their 

cn tomers, a afore aid; provided, that prices filed in the first instance shall not be released until the expiration of the aforesaid 

~ ~ta:red See paragraph 2 (3) of order approving tbi Code. 
69 

sixty ( 60) day riod aft r th ff tive dat of thi ode. The 

de uthority hall maintain a p rman nt fil of all pric t rms 

fil a h r in pro1 id d an hall not de tr y any part of uch recr l ex pt up n writt n n ent f th Board. Upon r qu t the 

'I rrit rial d A nth rity hall furni. ·h to th Board or any duly 

d i ·nate a nt of th oard copie of any u h li ts or revi 10ns of 

pri t rm . (b) When any member of the Indu try ha filed any revision, such 

member hall not file a higher price within forty-eight ( 48) hours. 

( ) No member of the Indu try shall ell or offer to sell any 

products of the Indu try, for which price terms have been filed 

pur uant to the provi ion of thi Article exc pt in accordance with 

su h price terms. 

(d) No meml or of the Indu try hall enter into any agreement, 

under tandina, combination or conspiracy to fix or maintain price 

t. rm , nor cau e or attempt to cause any member of the Indu try to 

chano·e hi price terms by the use of intimidation, coercion, or any 

oth r influence incon i tent with the maintenanc of the free an l 

open market which it is the purpo e of this Article to create. 

SE TION 2. Costs and PTice Cutting.-The standard of fair competition for the Indu try with reference to pricing practices are 

declared to be a follows: 

(a) \"" ilfully de tructive price cutting is an unfair method of comp tition and i forbidden. Any member of the Indu try or of any 

oth r I ndu try or the customers of either may at any time complain 

to the Code Authority that any filed price con titutes unfair competition as de tructive price cutting, imperiling small enterpri es or 

tending toward monopoly or the impairment or code wages and 

working condition . The Territorial Code Authority shall within 

five ( 5) day afford an opportunity to the member filing the pri e 

to an wer such complaint and --hall within fourteen (14) days make 

a ruling or adjustment thereon. If such ruling is not concurred in 

by either party to the complaint, all paper shall be referred to the 

Re earch and Planning Division of the National Recov ry Admini - tration which hall render a report and recommendation thereon to 

the Board. 

(b) "'\Vhen no declar d em rgency exists a to an. criven pr duct 

ther i to be no fixed n.inimum ba i for pri es. It i intend d that . ound o t timating method hould be u ed and that c n i 1 ration 

.-hould be given to c t in th 1 terminati n of pri ing policie . (c) "'\Vhen an em ro-ency xi ts a to any ·iven produ t ale 

b low the tat l minimum pric of uch pro :tuct, in violati n of 

e tion 3 her f i f rbidd n . .. E Tr ~ 3. E11 ergency P1·ovi io'Yl,t;;.-(a) If th Board aft r inve - ti ·ati n hall at any time fin both ( 1) that an m r · n y ha 

ri n within th Indu. try ad r ely uff ctin . mall nt rpri e r 

wag r lab r c ndition r t nding towur m n p ly or h r 

a cut nditi n whi h t n 1 to defeat the purp f th t · an (2 that th d t rminati n of the tat d minimum pri e for a 

~ p cifi pro u t ' ithin th Indu tr. for a limit d p ri d i n 

·ary mitigat h nditi n c n titutino- u ·h em rg ncy an 

to ffe tuate th purp ·e of the A t the T rritorial o e u hority 
70 

mny cau ~e an in1par ial a (Jency to inve tigate co ts and to recommend 

to the Board a determination of the tated minimum price of the 

product affected by the emerg n y and thereupon the Board may 

proceed to determine u h stated minimum price. 

(b) \\hen the Board hall have determined such stated minimum 

price for a specified produ t f or a stated period, which price shall 

be reasonably ca lculated to mitigate the conditions of uch emergency and to effe tnat the purpo e of the National Indu trial 

Recovery Act, it ball publish uch price. Thereafter, during uch 

ta ted perio l no member of the Ind u try hall sell uch pecifiecl 

product at a net realized price below aid t at ad minimum price and 

any uch sale hall be deemed de tructi-ve price cutting. From time 

to time, the T erritorial Code Authority may recomn1end review or 

reconsideration or the Board may cause anJ determination hereunder to be r eviewed or r econ ider d and appropriate action taken. 

AnTICLE IX-ExronT TRADE 

K o provi ion of thi Code r elating to price or terms of elling, 

shipping, or marketing, shall apply to export trade or sales or shipment for export trade. '· Export Tra le ' shall be defined as in 

the Export Trade Act adopted April 10, 1918. 

\.nTICLE X-JHoDIFICATION 

SECTION 1. Thi Code and all the proYi ion thereof are expre ly 

macla subj ect to the right of the President, in accordance with the 

provisions of subsection (b) of Section 10 of the Act, from time to 

time to cancel or modify any order. approYal, license, rule, or regulation i ued unler Title I of said Act. 

SEcTION 2. Such of the provision of this Code as are not require l 

to be included herein by the Act may, with the approval of the 

Board, be modified or eliminated in such manner as may be indicated 

by the needs of the public, by changes in circumstauces, or by experience. All the provi ions of this Code, unless so modified or eliminrrted, shall remain in effect until June 16, 1935. 

ARTICLE XI-lHoKoroLms, ETc. 

No provision of thi Code shall be o applied as to permit monopolies or monopolistic practice , or to eliminate, oppre s, or lis riminate against small enterprise . 

ARTICLE XII-PnrcE IN REASES 

\Vherea the policy of the Act to incr ea e real purcha. ing po"-er 

will be made more difficult of consummation if prices of good and 

ser-vices increa c as r apidly as wage , it i recognized that price 

increa es, except uch a may be r quired to meet individual cost, 

should be delayed, and when made, uch increase should, so far as 

po ible, be limited to actual additional increases in the eller's 

costs. 
71 

ARTI 'LE .... -III-EFFECTIYE DATE 

:ff tiv thirty ( ) day after the dat 

Appr v d o No. .-6. 

Rerri ·try No. 1724- H . 

of order approving this Code. 

0 


UNIVER SITY OF FLO RIDA 

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