389-A 

, 

Registry No. 313-1-06 

NATIONAL RECOVERY ADMINISTRATION 

CODE 0 ,~., FAIR C·O·MPETITION 

FOR THE 

LUMBER AND TIMBER 

PRODUCTS INDUSTRY 

AS APPROVED ON AUGUST 19, 1933 

BY 

PRESIDENT ROOSEVELT 

WE DO OUR PART 

1. Executive Order 

2. Report of hearing submitted to National Recovery 

Administrator Johnson by Assistant Administrator 

Dudley Cates 

---. Q118.as appr ved by President Roosevelt 

A ~• 

. ... ..... 

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l 1 

L, U. . DEPOMTOWt' _ _:::.::,:..:,.::.;, _ __ ..,_...,.li!NflRD STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the Superintendent of Documents, Washington, D.C. - - - - • - • • Price 5 cents 
I 
EXECUTIVE ORDER 

CODE OF FAIR COMPETITION FOR THE LUMBER AND TIMBER PRODUCTS 

INDUSTRIES 

An application having been du]y made, pursuant to and in full compliance with the provisions of title I of the National Industrial 

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

Fair Competition for the Lumber and Timber Products Industries, 

and hearings having been held thereon and the Administrator having 

rendered his report containing an analysis of the said Code of Fair 

Competition together with his recommendations and findings with 

respect thereto, and the Administrator having found that the said 

Code of Fair Competition complies in all respects with the pertinent 

provisions of title I of said act and that the requirements of clauses 

(1) and (2) of subsection (a) of section 3 of the said act have been met: 

Now therefore, I, FRANKLIN D. RoosEVELT, President of the 

United States, pursuant to the authority vested in me by Title I of 

the National Industrial Recovery Act, approved June 16, 1933, and 

otherwise do adopt and approve the report, recommendations and 

findings of the Administrator and do order that the said Code of Fair 

Competition be and it is hereby approved. 

Approval recommended: 

HUGH S. JOHNSON, 

Administrator. The WHITE HousE, 

August 19, 1933. 

FRANKLIN D. ROOSEVELT. 

• AUGUST 12, 1933 . To: "' THE ADMINISTRATOR, N.R.A. 

From: Dudley Cates, Assistant Administrator. 

I. Preliminary Statement.-! have the honor to subrnit herewith my 

report on the Code of Fair Competition of the Lumber and Timber 

Products Industries, including the hearing thereon. 

There are attached hereto: 

Exhibit 1. The Code as finally proposed. 

Exhibit 2. Certificate of Incorporation and Bylaws of the 

National Lumber Manufacturers' Association. 

Exhibit 3. Certificate of Incorporation of Lumber Code 

Authority. 

Exhibit 4. Notice of hearing. 

Exhibit 5. Statement of procedure. 

Exhibit 6. Economic and statistical analysis of the industry 

and of the Code. 

Exhibit 7. Transcript of the hearing. 

Appendix 1. List of witnesses. 

II. The Code and the Hearing (Uncontroverted matter ornitted).-

The Code as submitted by the industries is summarized as follows, 

with suggested changes in the Code discussed in later sections of this 

report. 

A statement accompanying the Code declares that it was submitted 

in accordance with a resolution dated July 1, 1933, of the Board of 

Directors of the National Lumber Manufacturers' Association, representing more than 70 percent of the output of lumber and timber 

products throughout the United States, concurred in by 45 trade 

associations composed of manufacturers of lumber and timber products and by the single wholesale lumber association and the single 

retail lumber association of national scope. 

ARTICLE I-PURPOSE 

The declared purpose of the adherents to the Code is to reduce 

unemployment in the industries reported, improve standards of 

labor, maintain a reasonable balance between production and consumption, restore prices to levels which will avoid further depletion 

and destruction of capital assets, and to conserve forest resources and 

bring about sustained yield from the forests. 

ARTICLE II-DEFINITIONS 

Paragraph (a) Defines lumber and timber products. 

Paragraph (b) Defines person. 

Paragraph (c) Defines Divisions and Subdivisions. 

(1) 
2 

RTICLE 111-ADMI ISTRATIO 

The applicant organizations propo e to e tabli h a nonprofit corporation nan1 d "Lumber ode Authorit " to a i t the ational 

Reco r dmini tration in admini tering th pro i ion of th t as 

t forth in th ode. Provision i to be mad f r m mb r hip or 

repre entation in th Lumb r Code Authority f r pr s ntati es of 

the ational Recovery Administration and of the principal divisions 

of the industries. Any producer is eligible to full participation in the 

appropriate Division or Subdivision on terms of full equality with 

other participants. Such Authority i intended to have broad administrative powers in giving effect to the provisions of the Act, and of 

the Code, including enforcement of Rules of Fair Trade Practice. 

The Authority is also empowered to designate appropriate agencies 

for applying the Code in each Division and Subdivision of the lumber 

and timber products industries. The Authority is solely vested with 

the power and duty of enforcing the Code. 

ARTICLE IV-CODE REPORTS AND FEES 

The Authority undertakes to obtain and compile adequate information as to the extent of observance of the Code and the results obtained 

under its operation, with power of inspection of pertinent records by 

authorized agents. Adherents to the Code are to share, in proportion 

to production, the necessary expenses of maintaining the Authority 

and its authorized activities. 

ARTICLE V-LABOR PROVISIONS 

Paragraph (a) Assures employees the right to organize and bargain 

collectively through representatives of their own choosing. 

Paragraph (b) Stipulates that membership or nonmembership in a 

particular type of labor organization shall not be a requirement of 

any employee or of any person seeking employment. 

Paragraph (c) Provides that each employer shall comply with 

standards of wages and hours and other conditions of employment 

approved or prescribed by the President. 

Paragraph (d) Prohibits employment of any individual under 18 

years of age, with the exception of boys 16 years of age or over in 

nonhazardous occupations during school vacations, or if there are 

no wage earners 18 years of age or more in the families of such boys. 

ARTICLE VI-HouRs OF LABOR 

Paragraph (a) Lays down general provi ion for permitting certain 

persons under defined conditions to be mployed for lono- r maximum 

hours per week than those prescribed in Paragraph (b). In general, 

Paragraph (b) proposes maximum hour of emplo m nt of 4 hours 

per week for logging in all producing reo-ion and 4 hour per week 

for awmill and other operation , xcept tha a 40-hour we k ro 

propo d for awmill in the northw t and in rtain oth r mins 

a 
3 

ARTICLE VII-MINIMUM w AGES 

Except for a few special situations, a schedule of minimum wages is 

proposed, beginning with 22>~ cents per hour or $10.80 per week of 

48 hours in the South, up to 42}~ cents per hour or $20.40 per week of 

~8 hours in logging camps of the West Coast and Wes tern Pine ·Divisions. 

ARTICLE VIII-CONTROL OF PRODUCTION 

Paragraph (a) Empowers the Authority to make estimates of 

expected consumption of lumber and timber products of each species 

and allocate quotas of production on the basis of such estimates 

among the several Divisions and Subdivisions. Actual quotas among 

Divisions are to be in substantial proportion to production or shipments of each Division during a representative period. Provisions is 

made for flexibility in allocating quotas·, provided modification of 

quotas is warranted. 

Paragraph (b) Provides requisite authority and flexibility to the 

Authority in determining quotas to give effect to the provisions of the 

Code in respect to the conservation and sustained production of 

forest resources. 

Paragraph (c) Provides that quotas for individual operators shall 

be determined by the Divisions and Subdivisions upon an equitable 

basis of allocation, approved by the Authority. Provision is also 

made for modifications in exceptional cases. 

Paragraph (d) Stipulates that a reasonable minimum volume of 

production based on practicable operations for each Division shall 

not be denied to any person within such Division. 

Paragraphs (e), (j), (g), and (h) Set forth various provisions in regard to allotments that must be observed, one of the most important 

of which is that no person shall produce in excess of his quota. 

ARTICLE IX-CosT PROTECTION 

Paragraph (a) Empowers the Authority in its discretion to establish 

minimum prices designed to cover the cost of production in the several 

classifications of lumber and timber products. Such prices shall have 

due regard to the maintenance of free competition among species, 

Divisions and Subdivisions and with the products of other industries. 

Paragraph (b) Stipulates that minimum prices shall not exceed 

cost of production, determined in accordance with a proposed formula. 

Paragraphs (c) to (h), inclusive, contain provisions for special treatment of small mills, for establishment of lower minimum prices for 

products of inferior quality, for maintaining minimum prices as 

established, for establishing the price of imported lumber, for possible 

tariff adjustments, for obtaining information as to competition between 

imported and domestic lumber, and for other purposes. 

ARTICLE X-CONSERVATION AND SUSTAINED PRODUCTION OF FOREST 

RESOURCES 

This article contains a deliberate undertaking by the forestproducts industries in respect of conservation and sustained production of forest resources. It also provides for a conference between 
th cretury of o-ri ultur and th 

purp f d i ino- prn.cti abl me ur 

prod u tion of for t r our 

RTICLE I- p IAL 

appli an in lu trie f r the 

of n r in • nd u taininoREEME T 

This article mbodi the provi ion of ection 4a of the ational 

Indu trial R cover Act. 

RTICLE XII-CA CELATIO OR 10DIFICATIO 

Adju tment of the Code and of rulings i sued under it are to be 

made in conformity with any action by the President under ection 

10 (b) of th ational Indu trial Recovery Act. 

RTICLE XIII-MONOPOLIES 

This article cites that the Code is not designed to promote monopolie and that it shall not be interpreted or administered to suppress 

or oppress small enterprises. 

ARTICLE XIV-DIVISION AND SUBDIVISION CODE PROVISIONS 

This article provides for rules and regulations of Divisions and 

Subdivisions under Schedule A, insofar as not inconsistent with 

this Code. 

ARTICLE XV-VIOLATIONS 

It is declared that violation of this Code and of the Rules of Fair 

Trade Practice is an unfair · method of competition, subjecting the 

offender to the penalties imposed by the National Industrial 

Recovery Act. 

ARTICLE XVI-RULES OF FAIR TRADE PRACTICE 

"The rules of fair trade practice for.the lumber and timber products 

industry, as set forth in Schedule B attached hereto, are specifically 

made a part of this Code." 

ARTICLE XVII-APPEALS 

Appeals may be made to the designated agency of any Division or 

Subdivision, and appeals from the rulings of these agencies may be 

made to the Authority. 

ARTICLE XVIII-EFFECTIVE DATE A 1 D TERM! ATION 

Paragraph (a) Stipulates that the provi ion of the Code a to 

hours and wage shall become effective three day after approval by 

the Pre ident and other pro ision within ten lay after appr Yal 

by the Pre iden t. 

Paragraph (b) Provide that the ode shall terminat on June 16, 

1935, or on such earlier date a the tionul Industrial Re ov ry A t 

may cease to be effective. 
5 

The Code was formulat d by representatiYes of th Lumb r and 

timber products industries during the cours of veral week , with 

unofficial assi tance fr01n repr sentati es of the ationa.l RecoYery 

Administration. It was originall r ubmitt don July 10, 1933, and a 

revised draft, under date of July 28, 1933, giving effect to d irable 

alterations as brought out in the hearings, ha al o been ubrnitted. 

After legal notice of the hearing had been duly publi hed, the hearing opened July 20, 1933, and wa conclud d July 26, 1933. The 

undersigned Assistant Administrator conducted the hearina, , ith the 

assistance of members of the staff of the ational RecoY ry dmini - tration, and in the presence of repre entatives of the Indu trial Ad- visory Board appointed by th Secretary of Commerce, of th Labor 

Advi ory Board appointed by the Secretary of Labor, and of the 

Consunrnrs' Advisory Board appointed by the Admini trator. R presentatives of the Forest Service of the United States Department of 

Agriculture were in attendance for part of the time . Responsible representatives of all of the major divi ions of the 

lumber and timber products industries attended and took part in the 

hearing, and wide public interest was also manifested by the pre ence 

of a large audience and a full press complement. 

To cooperate in giving effect to the provisions of the National Industrial Recovery Act, the lumber and timber products industries 

appointed an Emergency National Committee. This committee was 

in general charge of drafting the Code and of arranging for the wit- nesses who appeared in its support. In addition, many person not 

selected by the Emergency National Committee, who claimed interest 

in the matters under consideration,were heard. Several representatives 

of Labor were heard . By means of questioning all witnesses, the A - sistant Administrator sought to develop the issues clearly in full detail. 

A complete list of \\'1tnesses ~'ith their affiliations is attached a 

Appendix 1. 

All statutory and regulatory requirements were obserYed. 

III. Summary and Conclusions on the Evidence.-l. Hours of Labor 

(Recommended reduction of weekly hours to 40). 

Witnesse stated that the lumber and tin1ber products indu trie 

had been accustomed to operate a comparatively large number of 

hours per week, approximating 60 in the South and 4 in the 1 T orth- west. Accredited representatives of the lumber indu~try in the uth 

stated that they were willing for their region to accept the r ponsi- bility of proposing a week of 48 hours, as con1pared with that of 60 

hours which is cust mary (Sheppard, (2) L-6-108). 

Representatives of the industry in the ~1' est con..,ider d that a ,ve k 

of 48 hours in the woods and 40 hour in the 1nill w, practicabl , with certain reservations to conform to the sea onal char ct r of 

important areas of this region (Greeley (3), C-6-16, h; Nt:a. n (4), 

-4-103 ). Calculations by the outh rn Pine ·o iation indicated that a 

week of 48 hour in the South would pr vide reemployment for 

31,250 wage earner ( h ppard (2) L-7-109). On the ha~i . f •1 

hours in the 1nills and 4 hour in the wood in the ,r t, 1 t w1 

estimated that reemployment would be o-iven t 14,000 \\~ rl~ r 

(Ruegnitz, (2) Q-4-1.51; Greeley, (3) -7-17). Thu the two lh tr1ct 

where the bulk of th industry i located were c tirnnted, on the 

maximum hours proposed by th jndu tries, to pro-, ;de reemployment 

9673-33-2 
6 

f r 45,250 p r on , a uIIDno- no hano- in curr nt part-tim mplo - m nt of worker . n the ba i of th maximum hour p r w k which ar re ommended in thi r port and with output f lumber and timber product , in luding v ood\ ork, timat d a ontinuing to x e d the depres ed 

l -vels of th first month of 1933 by 100 p r ent, a \J a th ase in 

Jun and Jul , it is calculated that additional mplo ment would 

b availabl for ome 114,500 persons. 1 s emplo c in th lumb r 

and timber product indu tries, not including woodwork, wood n 

packag , and mi cellan ou industri s, d clined from 419,084 in 1929 

to approximately 196,500 in 1931, reabsorption of displaced labor 

is of paramount importance. Although employment has increased 

markedly in the several lumber and timber products industries 

during recent months, there was no difference of opinion among 

witnesses that much of the increase bas been due to speculative 

cutting, manufacturing, and purchasing of timber products for the 

purpose of anticipating higher prices (Compton, (1) B-7-14; Greeley, 

(3) D-3-21; 30 and 31). 

During the early months of 1933 the industries as a whole were 

operating at approximately 16 percent of capacity, with average 

hours per week of less than 40. For the months of June and July 

operations were about 31 percent of capacity, with estimated additions to the labor force of 31,767. 1 

After giving due weight to all relevant considerations, the conclusion has been reached that maximum hours of labor of 40 per week 

should be established, both for the South and North, as well as for the 

orthwest, although this represents an average shortening of hours 

of approximately 7, for the South and North as compared with ,{ 3 to 1⁄4 

for the Northwest. There was no discussion at the hearing of the 

economic effects, so far as the South was concerned, of a still further 

shortening of the hours of work to 40 per week, except that a representative of labor advocated a work period of less than 40 hours 

(Green, (3) L-3-66). It is impossible to indicate, therefore, the 

precise results of establishing a 40-hour week in the lumber and 

timber products industries of the South, except that it seems clear 

that corresponding reductions of hours in competing industries will 

be essential if the relative position of the southern lumber industry is 

to be maintained (Sheppard, (2) C-2-130, 140, 141). 

On the assumption that this interindustry competitive equilibrium 

will be maintained, an increase in volume of sales, permitting an increase of about 50 percent over recent rates of production, would be 

necessary to restore employment to as many persons as were occupied 

with lumber and timber products industries in the South during 1929. 

As for the Douglas fir industry, which is the principal alternative 

source of supply in competitive markets to southern soft woods, a 

work week of 40 hours was propo ed in mills and factories (Greeley, 

(3) C-6-16) and 48 hours in logging camps (Reeley, (3) C-4-14). A 

reduction to 40 hours per week in both mills a,nd camps would not 

provide as much reemployment, n a relative ba i , a the same 

chedule when applied to operations in the outh ( heppard, (2) 

P-2-139). 

1 Basis of calculation shown In Economic Report. 
7 

About 65 percent of total lumber production is absorbed by the 

construction industry. Therefore sustained improvement in the 

lumber industry cannot be expected apart from revival of building 

(Greeley, (3) I-7-51; (6) CC-2-160), particularly construction of residences (Compton, (1) B-8-15, 16). Competent testimony indicated 

that a lag of about nine to fourteen months occurs (Compton, (1) 

B-16-23) before definite improvement in building contracts is reflected in sustained increase in output of lumber. The lumber industry is more likely to benefit from increased activity in other industries 

than to be the cause of improvement elsewhere (Sheppard, (2) 

M-1-111). Accordingly, considerable time must elapse before the 

effects on volume of employment can be definitely known as a result 

of establishing a work week of 40 hours. 

2. Exceptions to Forty Hour Maximum Work Week.-Seasonal factors of pronounced character are encountered in certain divisions of 

the timber industry. Fortunately, in the principal producing regions 

seasonal factors are of no great importance. But in the high Sierras 

and other districts of the West (Mason, (4) S-2-101 ), operations are 

impossible during the winter (Johnson, (7) D-1-19), whereas in certain sections of the northern hard and soft wood regions the winter 

is the period of greatest activity in logging (Osborn, (5) P-2-66). 

Operations in some areas must be intensively conducted in those 

seasons of the year· when the condition of the streams makes water 

driving feasible. Moreover, fires, wind storms, and other exceptional 

causes (Fentress, (6) JJ-3-196, 197) often make it necessary to harvest timber with great rapidity if large losses in our timber resources 

are to be avoided. For all of these reasons the testimony was convincing that certain flexibility in the maximum hours of labor per 

week should be introduced, accompanied by adequate restrictions to · prevent such flexibility from being .made the vehicle of abuses (Johnson, (7) C-4-18; Mason, (4) S-4-103). Necessary safeguards are provided (Art. VI, par. (a)) by requiring that average employment in 

any seasonal operation shall not exceed the standard schedule of 

hours during any calendar year. 

Child labor is not a serious problem in the lumber and timber 

products industries. In the Code as submitted they proposed that 

no person under 18 years of age should be employed, with certain 

exceptions, but in order to obtain uniformity in the various industrial 

codes a minirnum age of 16 hR.s been substituted. 

3. Afach-i.ne Honrs.-In contrast with many other industries, only a 

comparatively smal1 number of lumber manufacturing establishments 

operate more than a single shift. Establishments operating more 

than one shift are, however, of considerable importance in volume of 

production (Sheppard, (2) M-3-113; Greeley, (3) C-2-12, 151. 

Under present operating conditions with capacity greatly in exce~s 

even of the accelerated output of recent months, there has been no 

special problem of two or three shift operations, but this is a possibility if maximum hours of employment per week are placed at 40. 

This contingency has been provided for in drafting the Code. Article 

VIII, providing for control of production, at the same time places an 

automatic limitation on the abuses of excessive machine hours. 

It was testified at the hearing that the abuse known as "stretch out" 

is not characteristic of the l~mber and timber products industries 

(Greeley, (3) H-2-40). 
4. 1rage . . - .. \. Y ry high 1 roporti n of the m1 lo in the lurn b0r 

and tim her pr du t indu tri nro cla ifi d a un kill d and mikill <l. F r .-umpk, . 1 p rrent of tot l rnplo. in . nwmill , nan nverag for 192 1930, nd 1932, ur la .ifi la lab rcr b.T 

th nit d tat Bur au f Labor tati b . Du to thi fact 

th indu tries have tend d to pay comparati 1 low wagf rate . Ev n in 192 labor r in outh rn awn1ills r eiv d aw ight d av rag wag rate of 21.9 ent per hour, and thi un ati. factor rate had 

d lin d to 12.6 c nts p r hour in 1932. Te tim n rev aled th 

a t uncling fact that wao- of 5 cents p r hour ha not been unco111-

mon in recent months (Ambrose, (7) J-4-64). W ighted averao-e 

wages in awmill indu trie for the entire Unit d tate in tho e 

ca egorie classified as la borers amounted to 20. 5 cent per hour in 193 2. 

There was uniformity of opinion that wage rate should be incr used 

and gratification that agencies of the governn1ent were prepar d to 

afford encouragement a.nd protection to operators desiring to pay 

hio-her wages (Sheppard, (2) M-7-117; Ambros , (7) I-4-57 and (7) 

J-3-63), against the economic pressure and industrial demoralization 

re ulting from the activities of the small minority who would not 

cooperate in improving wage standards (Sheppard, (2) P-9-146). 

Proposals by the southern lumber industry to increase minimum wage 

to 221~ cents per hour represented an advance of practically 100 

percent from the average of 11.6 cents per hnur (Sheppard, (2) 

M-6-116) and three hundred fifty percent above the minimum wages 

paid in the month of April 1933. This is convincing evidence of the 

industry's desire to contribute toward increasing purchasing po .. wer in 

accordance with the principles of the National Industrial Recovery 

Act. No little apprehension was revealed in the hearing, both by 

advocates and opponents of the Code, in regard to the effects of 

attempting such a large increase in wage rates (Sheppard, (2) P-5-142). 

Disturbance of the interspecies equilibrium between southern pine 

and Douglas fir (Sheppard, (2) P-2-139, 140) was feared, as well as 

adverse effects from increasing the advantage of products of other 

industries which are competitive with lumber and mill products 

(Sheppard, (2) 0-1-129, 130). 

A dilemma is presented in respect to minimum wages in the outh. 

They have been deplorably low. But even so the products of this 

region are in keen con1petition with the products of other regions 

which have paid much higher wages. This competition is always in 

precarious balance. As the proportion of labor costs to total costs 

is higher in the South than with its competitors (Sheppard, (2) 

P-2-139), increase in labor costs tends to disturb this balance. If 

sufficiently disrupted the market for southern woods would be 

decreased, production reduced, and employment necessarily decreased. 

Any rate of wages fixed for the South must ther fore be determined 

with a view to disturbing th competitive balunce as little as po ible. The objective is to increase wages and not decrease employm nt at 

the same time. 

In addition to the very real problems which are .involved b rea on 

of increased wages in the southern pine industry, there are certain 

less important areas uch as the northern and central hard wood 

ubdivisions where difficulty might be cau ed by wage increa 

which might alter int rspeci s equilibriun1 (0 born, (5) R-1-73, 74· 

Townsend, (10) B-492). 
9 

Since hours of en1ployment for persons classified as laborers in 

sawmill occupations had declined to 38.0 per week during 1932, it is 

evident that total earnings, based on a weighted averR.ge of 20 .5 cents 

per hour represente~ inadequate we~kJy in~ome. ~ay rolls for_ the 

entire lun1ber and tnnber products 1ndustnes had, 1n fact, declmed 

from $579,000,000 in 1929 to approximately $110,000,000 2 during 

1932, with the result that an adequate contribution to national purchasing power was not obtained from these industries, which were 

the fourth largest employers of industrial labor (Comptron, (1) 

B-12-19). 

One of the spokes1nen for labor contended that wages should be 

greatlv increased, but he presented no specific evidence (Weaver, 

(5) H~2-37 to 39) as to what increases he considered justifiable nor 

as to how the industries in question could operate if they paid substantially higher rates than those proposed in the Code which was 

presented. 

On the basis of average rates of pay and number of hours of employment per week, average earnings for laborers in sawmills for the 

United States in 1932 had reached the unsatisfactory level of $7. 78. 

Corresponding weekly earnings for laborers in southern sawmills were 

$4. 94. It is true that declining prices of commodities somewhat 

mitigated the effect of these inadequate wages, and on the basis of 

1929 3 prices the average weekly wage for sawmill laborers in the 

United States in May, 1933, would have had the purchasing power of 

$11.19, while that of employees in southern sawmills would have been 

equal to $7 .11. 

There is imperative need that purchasing power derived from the 

lumber industry be incr~ased, and this can be accomplished if the 

industry is enabled to pay and does pay higher wages. Although the 

wage schedules proposed by the southern industry represent an 

important advance over those at present in force, somewhat further 

advances are believed to be justified. After careful consideration 

of the evidence presented in the hearing, as well as that prepared by 

the Division of Planning and Research of the National Recovery 

Administration, it was concluded that wage rates at least equal to 

those paid in 1929 were desirable and possible, provided that 1929 

rates equaled or exceeded 30 cents per hour. However, a large number 

of employees in the lumber and timber products industry, probably 

amounting to 80 percent of the total, received less than 30 cents per 

hour in 1929. -

No group of laborers in logging camps or mills were represented as 

having received less than 20 cents an hour in 1929, and it is recommended that groups which received this inadequate wage should 

have such rate increased by 15 percent with increases on a uniformly 

diminishing scale for each cent per hour between 20 and 30 which 

was received in 1929 by any wage group. Application of this formula 

would establish minimum wages in the lumber industry as 23 cents 

per hour, and this would be the equivalent of 34.74 cents per hour in 

May 1933, on the basis of 1929 prices4 or 62}~ percent in excess of the 

weighted average of wages5 paid to employees classified as laborers 

2 Assuming that 1932 pay rolls declined equally with lumber production as reported by the Census for 

1932. 3 Cost of living 1929= 100. 

' Adjusted to 1929 cost of living=lOO. 6 Also adjusted to the cost of living, 1929. 
10 

in ou b rn a, n1ill in 192 , d tail d ta i tic for 1929 beinO' unuyailabl . 

On th ha i f in r a d lab r co for three important ftv ood 

r O'ion , purcha ing pow r will imn1 diately be in rea ed 32,500,000 

p r annum, a urning lumb r production only at th 1932 olum .

6 

om 5 p r nt of all n1plo e in the lumber and timb r produ t 

indu tri \ ill be dir ctly affect d and b nefited by th r omm nd d 

minimum v ao-e rat , in addition to th 114,5007 who, it i hop d, will 

b add d to th pa~ roll . 5. Labor Organizations.- Labor is not highly organized in the lumb r and timb r product indu tries. The principal ex ption to thi 

gen ral condition is found in the West and orthwe t (Ruegnitz 

(2) -2-163), where the Loyal Legion of Logger and Lumbermen 

(Greeley (3) E-2-24), commonly known as "The Four L" i of coniderable importance. About thirty percent of total employee in th 

r gions where the Four L is established are includ d within it membership (Ruegnitz' letter 8/7 /33). This organization eno-age in 

collective bargaining (Greeley (3) E-2-24) (Ruegnitz (2) S-2-163) on 

behalf of its membership and has been in considerable part re pon ible 

for the fact that wages and working conditions are more favorable in 

the West and Northwest than in other timber producing areas. 

Certain witnesses stated that the Four L was a company union 

(Green (3) 0-4-84; Noral (8) DD-6-163; Haas (5) J-3-44), but the 

representative of the Four L testified that his organization was con- ducted for the benefit of employees, with locals at operations under 

125 different managements, and that in bargaining with employer 

members of the Four L were at liberty to choose nonmembers to 

represent them (Ruegnitz (5) K-1-45). Representatives of the logging and manufacturing industries declared that membership in the 

Four L was not a condition of employment or of preference in the 

territory where the organization is located (Greeley (3) E-2-24). 

6. Cost Protection.-A.n1ple evidence was produced at t,he hearing 

that the industries have operated on an unprofitable basis for several 

years and that they did not share in the years of prosperity terrninatmg in 1929 (Compton (1) B-5-12). Their financial position 9t 

present will not permit the assumption of additional charges unless 

such increased costs as may be assumed can concurrently be recovered 

by equivalent adjustments in prices (Compton (1) B-10-17) for lumber and timber products (8tibolt (4) V-2-116; Mason (4) P-2-88). 

Consequently it was proposed, both in the Code (Art. Ix.) and in 

the hearing (Stibolt (4) V-4-118 to 121), that reasonable osts hould 

be determined and that lumber and timber products hould not be 

sold or offered for sale at prices which did not cov r uch co ts. Public protection against abuse of this power to fix minimum 

prices i essential. This can largely be accomplished by having a 

mathematical formula for determining what con titutes co t prot ction. An additional protection is that of intere .. ted and informed 

buyers. Repre entativ s of th national retail and whole al a ociation are to be member of the Lumber Cod Authorit . Det rmination of prices i required to come b for th Authont in order 

to prevent unJair omp titjon between divi ion as w 11 a in th 

public int r t. R pre ntatives of the Ad.mini trator ar al o to sit 

c Refer to Economic Report. 1 Refer to economic report. 
11 

on the Authority. If in the exercise of their interested and informed 

judgment on prices the retail and wholesale repres('ntatives believe 

unduly high prices are being proposed or are in effect, the Administrator is -instantly informed through his own representatives on the 

Code Authority and has an immediate veto. 

Inasmuch as forests constitute a national asset of the highest importance, they should not be utilized in an improvident manner. 

During recent years, however, restricted markets for timber tracts, 

combined with heavy carrying charges (Compton (1) C-3-26), have 

encouraged uneconomic operations (Greeley (1) H-10-85), to the 

point where timber was converted into lumber and wood products 

in some instances at an actual out-of-pocket operating loss (Mason 

(4) Q-1-91), not to speak of no recovery whatever on the wear and 

tear of plants and equipment. Conversion of timber under such 

conditions always entails waste by forcing the operator to leave 

low-grade logs in the woods and burn low-grade material at the mill 

(Greeley (1) H-10-85) (Denman (Sa)-E-2-22). National interests 

are injured by these. practices (Compton (1) E-2-25), and there is 

no apparent method of terminating such abuses (Stibolt (4) V-1-115) 

except by forbidding the sale of timber products at prices which do 

not cover cost of production (Stibolt (4) W-4-124). Competent witnesses testified that the responsible elements in the lumber and timber products industries deplore the unnecessary destruction of timber 

resources, but that financial pressure and the competition of many 

small producers of timber (Greeley (1) F-3-55), including farmers, 

often without cost records (Sells (6)-T-2-115), prevent the orderly 

harvesting of the nation's forests by those who favor a constructive 

policy. 

In general terms, it can be stated that in past years and especially 

in certain regions, although in a constantly diminishing degree, capital 

has been primarily interested in standing trmber (Fentress (6) 11-2-189; 

(6) LL-1-206; (6) MM-2-212-213), whereas the chief concern of labor 

is in connection with logging and milling operations and the woodworking industries. In view of the primary object of the National 

Industrial Recovery Act to increase employment and purchasing 

power, immediate emphasis has been placed on logging and manufacturing activities in preparing the Code of Fair Competition. This 

does not imply that the rights of owners of standing timber have 

been sacrificed, but for the present they have been subordinated to 

the necessity of placing more men at work at higher wages (Fentress 

(6) MM-2 to 4, 212-14). 

According to a study by the United States Forest Service in 1932 

nearly 41 percent of the standing timber in the United States was 

owned by the Federal, State, and local governments, and 59 percent 

by lumber and timber companies, farmers, and others. Prices for 

timber lands had a rising tendency for several decades, but that 

tendency was interrupted during the nineteen-twenties, and current 

prices are usually far less than those which appear on the books of 

many if not most of these owners (Compton (1) B-11-18; Fentress 

(6) HH-2-185; Greeley (1) F-13-65). 

Because of forced sales of timber tracts for tax purposes (Greeley 

(4) Z-3-138), because of exhaustion of financial resources, and because 

of the uncertain outlook as to timber values, it is difficult to establish 

a current fair value for standing timber (Sheppard (6) FF-4-175 ; 
12 

runnn (511) J- - O). v ral witn e d clar d, how er, that 

d t rminati n f urr nt fair alu can b accompli h d ( heppard 

(6 ) FF-3-174-176; mbro (7) J-1-61; r 1 y (4) Z-1-136). 

It , ould b ontra1 to public poli to p rmit the introduction 

of un f rmula for t protection wbi h would att mpt to re stabli h uch ulu of stumpag a pre ail d during the earl nineteent,v nti , wh n p uk price wer r ached. evertheless, converters 

of tin1ber into u eful product should pay or be paid a fair price for 

the ra n1ateri 1 consumed, whi h in thi a is stumpage. In no 

oth r mann r can the lumber and timb r product industries be 

rehabilitat d and as urance be had that the e indu tries will afford 

regular and in r asing wages to that larg number of per ons who 

look to them for employment. 

"Minimum price" is not an absolute term, but can be calculated 

according to arious formulas which are defensible. There are, however, definite limitations within wbich any specific minimum price 

must be established. The lower limitation would ha e to include 

out-of-pocket operating expenses; the upper limitation would, in addition, include recovery of capital. Profit in no case ·should constitute 

an element of minimum price authorized by governmental authority. 

Little difference of opinion exists as to the elements in a sound 

formula for affording cost protection on such matters as the inclusion 

of wages, materials and supplies, necessary selling expense, overhead, 

insurance, and taxes (Greeley (4) Z-3-138 to 156; Stibolt (4) Y-4-134). 

Interest actually paid should be allowed (Greeley (4) AA-7-145). 

Aside from direct-out-of-pocket costs, which obviously should be 

allowed, important questions of principle arise as to recovery of 

capital and by means of a minimum price assuring ability to meet 

financial obligations. It is clear, however, that if the lumber and timber products industries are to continue as privately owned and operated enterprises, they have to receive a reasonable price for standing 

timber and to amortize the plant and equipment necessary for converting timber into lumber and timber products. These considerations have been kept in mind in preparing the proposed formula for 

cost protection. 

Of some 20,000 sawmills in the United States, more than 15,000 are 

valued at less than $5,000 each (Co1npton (1) B-6-13 ), and a large 

number of farmers sell small quantities of logs to sawmills, or else 

operate sawmills themselves. Total volume of logging and manufacturing operations by farmers is of considerable importance (Townsend 

(10) B-487,488). These farmers and small operators frequently do 

not keep accounts, and even some of the large mills are carrying obsolete and excessive plant and equipment on their books, with corresponding exaggeration of depreciation charges (Sells (6) T-2-115; 

Denman (4) EE-3-159). Adequate, uniform, and realistic accounting, 

particularly among small establishments, is not characteristic of this 

indu try (Town end (10) B-491 ). Although proper charges for depreciation constitute a valid element of cost, this element cannot be included in the proposed cost protection f rmula as applied to the lumb r and timber produ ts industrie until n1ore and better data are 

available. 

Permission t tablish minimun1 price for lumber and timb r 

pr du t i b lieYed to b n es ar to nrnk - po sibl th increased 

wages hedule -v hich ar r comm nd din thi r port. But th neces-
13 

'Sity of devising a cost protection form~a also affords an _opportunity 

to initiate a comprehensive conservat10n and reforestat10n program 

of the widest significance, such as the industries have agreed to undertake in accordance with the stipulations of Article X of the Code. 

7.' Conservation and Sustained Production.-Article X of the Code 

as originally submitted, was redrafted in consultation with the 

Forester of the United States and spokesmen of recognized conservation agencies (Compton (2) J-5-96). The Forester then appea.red at 

the hearing and approved the revised Article X on condition that the 

industries undertake to bring about conservation and reforestation, 

which was agreed to as a binding covenant. This action elicited the 

following statement by Major R. Y. Stuart, Forestor of the United 

States: 

"May I say, Mr. Administrator, in my judgment this article as it 

has been amended to my mind opens up a new era in forestry, forest 

production, forest protection, and we in the Forest Service will very 

eagerly do all that we can not only to cooperate with the industry in 

the performance of its obligations, but also put forth our utmost 

efforts to have the public, particularly the Federal Government, 

expend its cooperative effort to tliat end." (Stuart (2) T-1-115). 

It is gratifying to remark the fact that an issue which has been the ·subject of such prolonged controversy is finally concluded by the 

voluntary action of the lumber interests. After many years of ·studies and conferences, there appears to exist a clear understanding 

between the lumber interests and the Forest Service on the many 

practical problems which are involved in giving effect to the principles 

of conservation, as well as a meeting of minds as to their solution. 

I therefore recommend that the further negotiations and commitments 

provided for in the revised Article X be approved, but on the under- ·standing that in the event this article is not found to be effective, a 

further hearing or hearings may be called to revise it. 

Those who use lumber and timber products should pay for the 

replacement of such products. As one of the factors of minimum 

price, subject to market conditions, it is proposed to include an amount 

adequate to cover the cost of conserving and replacing as much timber 

as is harvested. Estimated additional charges which will have to be 

imposed upon each 1,000 feet of lumber in order to bring about this 

important result are surprisingly small. They have been obtained 

from the Forest Service of the United States Department of Agriculture and appear in detail in the report of the Division of Planning 

and Research. 

For a few of the more important species the increased price for each 

1,000 feet of lumber in order to accomplish full conservation and 

replacement is estimated by the Forest Service as: 25 cents to 45 ·cents for Douglas fir, 75 cents to $1.00 for southern pine, 50 cents for 

,central hardwoods, 25 cents for redwood. If the cost protection 

formula can be utilized for accomplishing the major objectves of ·conservation and reforestation the device will be amply justified. 

8. Production Oontrol.-Evidence presented at the hearing was 

uniformly to the effect that much of the recent increase of activity 

in the lumber and timber products industries, perhaps as much as 

two thirds, represents speculative operations or operations based on 

:Speculative buying (Compton (1) B-7-14: Greeley (3) F-3-30 to 32). 

9673-33-3 
14 

Locrcrincr and awmill activitie hav continued at a low le el for so 

pro ra t d a p riod of tun ( r 1 y (1) F-4-56) and capacity is so 

err atl in xc of ev n th nlarg d op rations of r cent 1nonths 

(F ntr (6) II-3-190) that ontrol of produ tion i imperati e if 

r n w d and a centuat d d moralization of the indu tries and dislo ation of labor ar to b a oid d (Fentr (6) LL-3-20 to 209). 

Th r v u evid n ( tib lt (4) "\i\ -1-121 and 129; al o (5) E-4-20) 

that par icularl r in th a e of lurnb r, demoralized elling b lo, cost 

i pr bable, e-v n wh n th volun1 of production is ontrolled. A 

1 g produ .., nrnny item of lun1b r, some valuable, some nearly 

worthle . Th valuabl mu t carr the nearly w rthle , and a 

balan mu t b truck betw en profit on the on and loss on the 

oth r, if th co t of on r ion i to be recov r d in price ( tibolt 

(4) W-1-121). Individual op rat01: , with def ctive cost-accounting 

~y tem , are not on1petent to det rmine what schedule of price will 

in the long run be equi alent to th ost of manufacture. The 

lmnber op rator without knowledge of his co ts has the power to 

undermine the whole price structure, and his incompetence imperils 

e en th be t inforn1ed of hi competitors. 

pplication of the principle of production control presents many 

difficulties. One of the mo t controversial subjects discussed at the 

hearing was whether control of production would be equitably administered (Fairhur t (8) Z-6-143; Johnson (7) G-7-38; Denman (4) 

FF-4-167). The expei:ience of the Lumber Survey Committee of the 

United States Timber Conservation Board, which has made quantity 

surveys of expected consumption for the past two years, has demonstrated the feasibility of deterniining aggregate quotas for the lumber 

industry as a whole and the Divi ions and Subdivisions thereof. 

Several persons contended that the Administrative machinery 

would inevitably fall into the hands of large operators (Fairhurst (8) 

Z-5-142; Walter Johnson (7) C-3-17). Others recognized that experience would be required to determine aggregate quotas for the lumber 

industry as a whole, which would at the same time maintain a reasonable balance between production and consumption and assure an 

adequate supply of timber products, as well as to make specific allot1nents to the various producing regions and to individual operators 

(Greeley (1) F-10-62 and 64). 

In the draft code as submitted, it is pYoposed that "Quotas for 

persons within respective Division or Subdivisions shall be determined 

by the d ignated agen ies thereof in accordance with an equitable 

ba i 01' method of allocation * * *" appro ed b the administrative organization to be e tabli hed. ague language of this 

haracter is not acceptable. Allotment should be based upon a 

d fl.nit formula compo ed of factors which can be mathematicall 

determined from ascertuina ble fact . The formula hould b uch 

that c ch operator could virtuall. calculate for him elf the allotment 

which h should rec ive. ny oth r arrangement would create 

u pi ion and ontribut to th r alization of that appr hension 

which wa expre s d by vcral witness (W. Johnson (7) E-4-25 

and -7-3 ) who omm nt don th propo al for control of production. 

Pro i ion hould b n1ad for em rg ncy ituation , uch a timber 

aff ct d by fire, wind, and in cct (F ntre (6) JJ-1-195 to 197) . ... \.pp al on allotm nts hould be po ible at r a onable co t and with 

the a urance of prompt de i ion (Gr cl (1) H-5- 0 and 81). 

Full publicity should b pro id d as to th determination of quotas 
15 

and allotments and as to all appeals and decisions thereon. To give 

effect to the foregoing suggestions, an alternative proposal to that 

submitted by the lumber and timber products industries has been 

prepared and is recommended herewith. 

Many persons within the industries desire to place in the Code of 

Fair Co1npetition (Greeley (1) F-9-161 and 162) a provision that 

additional sawmills and wood-working establishments should not be 

permitted in view of the recognized over-capacity which at present 

prevails. After due consideration and in the light of representations 

made by the National Recovery Administration, limitation of new 

capacity is not proposed in the Code. 

In revising the production control proposals which were submitted 

by the industries, attention has been given to the principles outlined 

above. The revised draft provides for mathematical determination 

of production, quotas, for the purpose of balancing consumption and 

production, while assuring adequate supply; it stipulates that all 

producers of lumber and timber products are entitled to and shall 

receive allotments; it provides definite factors which must be given 

consideration in the determination of quotas and allotments, yet 

preserves the principle of self-go·vernment in industry by permitting 

each Division and Subdivision to adjust the several elements of the 

formula to its own peculiar conditions; further flexibility is provided 

in that exceptions are permitted for adequate cause; simple, inexpensive and expeditious methods of appeal are assured to those who 

believe that specific allotments have been inequitable; publicity for all 

official acts is required; finally, it is recognized that improvements in 

constructing and applying the formula can undoubtedly be made in 

the light of experience, and revision is therefore permitted and 

expected. 

Procedure for establishing quotas, as recommended in Article VIII, 

should be based upon that utilized with pronounced success by the 

Lumber Survey Committee of the United States Timber Conservation 

Board. This procedure has the advantage that it can be promptly 

applied on the basis of date already in hand. It is correct in basic 

principle and is subject to further refinement in the light of statistics 

to be made available by the Code provisions and the facilities under 

the Code for analyzing and applying the statistics. 

The central factor in this method is inventories. The right volume 

of stocks adequately to meet the needs of consumption under varying 

conditions of demand is determined from statistical evidence, and pro - duction is regulated to maintain such stocks. This method of han~ 

dling production control has been effectively applied in certain 

important industries. While the language of Article VIII does not 

in terms prescribe such method, it does permit it. 

9 . .i.11onopolies.-The Code as recommended will not result in 

monopolization in the lumber and timber products industrie , nor 

promote monopolistic practices. As stated above, there are now 

some 20,000 sawmills in the United States, of which more than 15,000 

are small enterprises whose mills are valued at less than $5,000 each 

(Compton (1) B-6-13 ). The Code as recommended contemplates 

their continued operation and guarantees free access to the market 

to new enterprises, subject to the same limitations as are applicable 

to those already in the market, namely, that prices shall not be below 

the axerage cost of production as and when determined by the Code 
16 

uth rit. , and pr du tion hall not ex e d the allotment mad by 

uthorit in that Divi~i n r ubdivi. ion in 

" hi h u h n w nt rpri are lo ated. 

Th op ra ti n f the e two limitations i ubj t to uperv-i ion 

whi h will ad quat l af guard th public int r again t monopoli ti practic in unr a onable or unwarranted re tri tion upon ith r 

pric or produ tion poli i . , ubje t to th t·wo lin1itation , the 

ompetitiv forces within th indu try will be in a tive operation, 

with the n ce ary incentive to k ep price rea na ble furni h d by 

th competition f ub titut n1aterial , and th ne ary incentiv 

to obtain maximum production furni hed by he n tant pr sur on 

th indu t1 of carrying charge for stumpage and xce i pr - du tion capacity. In view of the number of operator in the indu try 

there i no danger of domination of prices or pr duction by any ingle 

operator or any group of operators. The ode a recommend d 

protects the mall enterpriser by assuring him a production quota 

and minimum prices that will not be below the ay rage cost of pr - duction in his Divi ion. The numerical superiority in the indu try 

of small enterprises and the form of organization of the ag ncie~ 

of the uthority are in themselves safeguards again t anv oppr iYe 

or discriminatory operation of the Code again t the1n. 

10. Administrative Agency.-The lun1ber and tin1ber product~ 

industries' Code in substantially the form recon1mended in thi 

report would necessitate considerable admini trative machinery for 

its enforcement. The lumber and timber product indu tri are 

prepared to assume the responsibilities of self-go\-ernment (Greeley 

(1) F-14-66), subject to governmental supervision, and they therefore 

propose to create a Lumber Code Authority which hall be a nonprofit corporation with the board of directors con1posed of repre entatives of the several producing regions. Such an Authority should be 

approved only if membership in the component Divisions and uhdivisions in the several producing regions and among the various 

constituent industries shall be open to all loggino- operators and 

manufacturers of timber products on equal and reasonable term . Approximately 73 percent of all lumber and timber product~ is 

included in the membership of the trade association \\·hich would be 

represented in the Lumber Code Authority. This is a high deo-ree 

of organization for any industry. It would therefore eem to be the 

iogical agency to which self-government within the industries h uld 

be entrusted. 

Sufficient provision was not made in Article III a ubmitted, for 

eliminating the abuses which have largely contributed to the pre ent 

un atisfactory state of the timber industrie . The proposed ode 

Authority should be authorized immediately to prohibit trade 

practices which have already been declar d to be unfair by the 

Federal Trade Commission. 

It hould also be empowered to devise and apply fair trade practi e 

regulation , designed to as ure adequate supplie of well-manufactured lumber and timber products at fair price , to contribut to 

con ervation and reforestation, and to enable the industrie"' to 

furni h steady employment at living wage to tho e hundred of 

thou and of employees who look to them for a livelihood. rtain 

s From " Lumber and Timber Information", published by National Lumber Manufacturers Association 
17 

uggested amendments of and additions to Ar~icle III are intended 

to bring about these results. 

Some of the specific fair-practice proposals are not acceptable 

(Gerrity (9) Q-4-251 to 273) (Gillman (9) W-4-274), particularly those 

that deal with retail distribution (Tozzer (10) EE-6-311), and this 

section of the Rules of Fair Trade Practice as submitted by the 

industries is not included in the draft recommended for your approval. 

It should be returned to the industries for revision. As proposed· 

by the industries, retail lumber dealers would in many circumstances 

be given the status of local lumber monopolies to the detriment of the 

public (Gerrity (9) R-2-254). This should not be allowed. It should 

be possible for the industries, in consultation with the wholesale 

and retail distributors of their products, to devise means of assuring 

orderly, fair, and economical distribution, not subject to the objections which have been outlined. They should be required to submit 

revised proposals by January 1, 1934. 

In addition to the Rules of Fair Trade Practice which are applicable 

a.like to all Divisions and Subdivisions, the industries proposed 

numerous exceptions and additions which are intended to apply to 

particular situations. Son1e of t_hese are inconsistent with the general 

Rules of Fair Trade Practice. Need for prompt action in authorizing 

the industries as a whole to adopt their Code and put it into effect 

does not afford sufficient time to harmonize these exceptions and 

additions with the general Rules. 

Consequently, it is recommended that the Rules of Fair Trade 

Practice shall not come into force until November 1, 1933. During 

the intervening period opportunity will be afforded to effect revision, 

satisfactory to the Administrator, in the Rules as proposed by Divisions and Subdivisions and to have them become effective on the 

foregoing date. 

Nevertheless, the time is most opportune for eliminating certain 

unfair methods of competition which have afflicted the lumber 

industry and also for introducing improved standards of production 

and marketing which will be of permanent benefit. Even though 

a small portion of the Rules of Fair Trade Practice, as submitted by 

the industries, is not in such form that it can be recommended for 

immediate approval, a requirement that fully comprehensive rules 

of fair trade practice shall be prepared and put into effect with the 

approval of the Administrator should be one of the conditions of 

authorizing the Code as to hours, wages, cost protection, control of 

production, and other aspects of fair competition. 

Branding or marking of lumber and timber products has been 

officially endorsed by producers, distributors, and consumers for more 

than ten years, and the principle is incorporated in '' American Lum~ 

ber Standards", which establishes the bases of lumber grading. It 

has also received the approval of the United States Timber Con~ 

servation Board, which contains the following statement in its "Conclusions and Recommendations", dated June 8, 1932: 

"Regulations which would require that shipments of lumber and 

timbers in interstate commerce be graded and identified in accordance 

with publicly recognized standards of grading and inspection are 

essential to the protection of the public interest. Unless the industry 
1 

pee lily and effectively n un1c thi re pon ibilit , Federal reo-ulati n .. omparabl t the o- all d 'pur food Ja,v 1nu t be invol-ed." 

The l randin~ r 1n rhnrr f lumb r timb r i lath, hingl .. , and 

fl ring in uch a mann r a~ 1 arl. and p rm n ntl t in ic t (a) 

p ri ; (b) whether th dimun ion i tandard· () o-rad ; and (d) 

dryn , hould b ta li h d a tandard pr:1 ti to th xt 0 nt t1i '.1t 

th practical con ideration .. involv d p~rmit and a on a .. r a n . hl~ · and "·orkable provi i n n b d v lop cl for m hn~ u h pra tic 

eff ctjve. Thi practi e i not propo ed b th indu try in th d 

a pr nt d. The indu tr hould be r quir d t d v lop and 

pr nt a definite plan of marking lumber an ther for t produ t 

and ubmit it to the Pre ident for approval n t la L r th n ,January 1 

1934. 

ertain differences of opinion among produc rn f W v t rn pin _ were set forth at the hearing. group of produc r of w t rn pin 

lumber in California did not feel that they w r properl r r pre ~nted 

by the Western Pine ssociation, asserting that differences of condition in their region called for their recognition as a separ ate diYision 

under the lumber code. Sufficient evidence was not pres 0 nted to indicate that these producers had problems so different in chara ter from 

other establishments in the western pine territory as to ju tify special 

treatment under a separate code. It is believed, however, that the 

group of lumber manufacturers in question, or.o-anized recently under 

the name of the California White and Sugar Pine ssociation, should 

be given appropriate representation in the administration of the Code. 

A group of small mfl.nufacturers of railway ties in the orthwest 

wished to be exempt from certain provisions of the Code, as far as 

concerns the West Coast lumber industry. The representative of 

this group (Fairhurst-(6)-AA-4-150-151) did not offer convincing 

reasons why the standards to be observed by the West Coast industry should not be applicable to the small operators whom he 

represented. 

A group of wood package manufacturers objected at the hearing 

to being included under the wood package division, largely for the 

reason that they preferred to have their o,vn code and consequent direct 

access to the Administrator, instead of through the channel provided in the Lumber and Timber Products Code (Wilson-(9)-B-1-210 ; 

212; 213). No good reason is apparent for excepting this group. 

A somewhat similar situation was shown to exist in the woodworking industries. While 90 percent of the production in those 

industries desire to participate in the present Code of Fair Competition, a few highly specialized wood-working establi hment expre sed 

a wish to submit a separate Code (Smith-(7)-N-4-84). dequate 

grounds for negotiating a separate code for this mall fra tion of the 

woodworking industry were not shown. 

l ertain West Coast operators urged that exports should be exempt 

from production control. The West Coast di trict sbip over half 

of all lumber exported. These exports constituted about 16 percent 

of the entire production of the West Coast di trict in 1929 and about 

18 per ent in 1932. t least 40 percent of all We t Coast mill hare 

in thi business (Greeley-(6)-Y-5-141). No export item can be produced from the log without producing a sub tantia] "side cut". 
19 

On the average the "side cut", which must be sold in the United 

States, is more than one third of the product of the log. Export 

orders do not differ materially in volume, period of negotiation, or 

period of shipment from domestic water-borne business, and no 

greater necessity for separate treatment appears in case of export 

than in case of domestic cargo business. No adequate showing of 

the peculiarity of export business was made to warrant exemption 

from production control. To enable domestic producers to meet 

foreign prices, however, eA'J)Ort business has been exempted in the 

Code, Article IX (a) from the requirement of maintaining costprotection prices. 

In spite of the comparatively high degree of organization and unanimity of opinion in the industries, it is evident that in some of the 

Divisions and Subdivisions proposed to be established under the Code, 

there are a number of substantial, organized, minority groups. These 

should be accorded reasonable and equitable representation in such 

governing body of each Division or Subdivision as may be established. 

While it is proper that minority organizations within a logical competitive industry grouping should not be accorded the status of separate entities, it is not proper that they be denied fair proportionate 

representation in the Division or Subdivision governing body. This 

has been accomplished in the proposed organization of the Lumber 

Code Authority and should be accomplished in the Divisions and 

Subdivisions. 

11. Suggested Conditions of Approval.-The lumber and timber 

products indu~tries clearly desire to cooperate in achieving the purpos·es of the National Industrial Recovery Act. They prepared their 

Code with care and with the intention of increasing emplorment by 

shortening hours, of expanding purchasing power by raising wages, 

and of placing the industry on a sound basis by providing for the 

elimination of trade abuses. These efforts deserve governmental 

support. 

It is my opinion, however, that maximum hours of labor should in 

most instances be somewhat less than those proposed by the industries 

themselves and that wage rates should begin at a somewhat higher 

minimum. I the ref ore recommend a uniform work week of 40 hours 

as a maximum in both camps and mills and a minimum wage schedule 

of 23 cents per hour in the South and 42.% cents an hour in the West 

Coast and western pine areas, with properly adjusted gradations of 

rates for other producing regions. 

Other changes in the proposed Code which I regard as important 

have been discussed in earlier paragraphs, and all proposed changes 

from the Code as submitted by the industries are included in the 

attached draft, which I recommend for your approval. 

12. Findings.-The Assistant Administrator finds that: 

(a) The code of the Lumber and timber products industries as 

recommended complies in all respects with the pertinent provisions of 

Title I of the National Industrial Recovery Act, including, without 

limitation, subsection (a) of Section 7 and subsection (b) of Section 

10 thereof; and 

(b) the National Lumber Manufacturers' Association, which submitted the Code, and the forty-five Divisional associations, listed in 

the letter of transmittal, and concurring in the submission, impose 
20 

no in quitabl r tri tions on m mbership ther in and are truly 

r pr entative of th lmnber and timber products industrie , and 

(c) th od as r c01nmended i not design d to pron1ote monopolies. 

or to liminate or oppr s small enterprisers and will not op rate to 

di criminate ao-ainst them, and will tend to eff ctuate the polic of 

Titl I of the ational Industrial R co er t . 

Re pectfully ubmitt d, 

D DLEY ATES, 

Assi tant Admini trator. 
CODE OF FAIR COMPETITION FOR THE LUMBER AND 

TIMBER PRODUCTS INDUSTRIES 

AS RECOMMENDED BY THE ADMINISTRATOR AUGUST 18, 1933 

Statement in Transmittal 

The National Lumber Manufacturers Association, representing 

manufacturers of lumber and timber products throughout the United 

States, pursuant to the authority of the National Industrial Recovery 

Act and for the purposes of eli1ninating unfair competitive practices, 

reducing and relieving unemployment, improving standards of labor, 

maintaining standards of quality, rehabilitating the lumber and timber products industries, bringing about sustained-yield forest management and permanent sources of employment, conserving natural 

resources, and otherwise effectuating the policy of the Act, hereby 

submits for the approval of the Pre ident the following Code of Fair 

Competition for lumber and timber products industries. 

By resolution of the Board of Directors July 1, 1933. Concurred 

in by the following Associations: 

American Walnut Manufacturers Association, Chicago, Ill. 

Atlantic Millwork Institute, New York, N.Y. 

California Redwood Association, San Francisco, Calif. 

Douglas Fir Door Manufacturers Association, Tacoma, Wash. 

Douglas Fir Plywood Manufacturers Association, Tacoma, Wash. 

Eastern Woodwork Bureau, New York, N.Y. 

Eastern Shook & Wooden Box Mfrs. A sn., Boston, Mass. 

Egg Case Manufacturers Exchange, Chicago, Ill. 

Hardwood Dimension Manufacturers Assn., Louisville, Ky. 

Hardwood Manufacturers Institute, Memphis, Tenn. 

Indiana Hardwood Lumbermen s Assn., Indianapolis, Ind. 

The Mahogany Association, Inc., New York, N.Y. 

Maple Flooring Manufacturers Assn., Chicago, Ill. 

Millwork Cost Bureau, Chicago, Ill. 

National Door Mfrs. Assn., Chicago, Ill. 

National Hardwood Lumber Assn., Chicago, Ill. 

National Oak Flooring Mfrs. Assn., Memphis, Tenn. 

National Federation of Wooden Package Assns., Chicago, Ill. 

National Assn. of Wooden Box Mfrs., Chicago, Ill. 

National Screen Assn., Chicago, Ill. 

National Stained Shingle Assn., St. Paul, Minn. 

National Woodwork Association, Chicago, Ill. 

Northeastern Lumber Mfrs. Assn., New York, N.Y. 

Northern Hemlock & Hardwood Mfrs. Assn., Oshkosh, Wisc. 

Northern Pine Mfrs. Assn., Minneapolis, Minn. 

Pacific Northwest Box Association, Seattle, Wash. 

Pacific Northwest Loggers Association, Seattle, Wash. 

Pacific Veneer Package Association, San Francisco, Calif. 

Plywood Package Institute, New York City. 

Philippine Mahogany Mfrs. Import Assn., Inc., Los Angeles, Calif. 

Southern Cypress Mfrs. Assn., Jacksonville, Fla. 

Southern Pine Association, New Orleans, La. 

Southern Hardwood Box Association, Chicago, 111. 

Southeastern Box & Shook Mfrs. Assn., Charlotte, N.C. 

(21) 

9673-33--4 
22 

y, w York ity. 

d n Bo · Manuf actur r , an 

o iation of W od n Box Manufacturer , 

of 

ati nal- merica.n Whole ale Luml er n., In ., w rk, . Y. 

a.ti nal R tail Lumber Deal rs A n., Wa hington, D.C. 

ODE OF FAIR OMPETITIO 

ART. I. Purpo .-Thi i an undertaking in indu trial If-gov rnment under uch public anction as are ne es ary to carry out in the 

lumber and ti1nber products indu tries the purpo e of the ational 

Indu trial Recov ry ct. It i the declared purpo e of the lumber 

and timber product indu trie ~nd of the adherent to thi od , to 

reduce and relieve unemploynrnnt in 3.id indu trie ; to improve the 

tandards of labor therein; to maintain area onable balance b tween 

the production and the con ump ti on of lumber and timber products; 

to re tore the prices thereof to levels which will avoid the further depletion nd destruction of capital assets; and to conserve forest reources and bring about the sustained production thereof. 

ART. IL Definitions.-(a) "Lun1ber and Timber product " as used 

herein i defined to include (1) log , poles and piling; (2) sawn lumber 

and products of planing mills operated in conjunction vvith sawmill ; 

(3) shingles; (4) woodwork (mill work) including products of planing 

mill operated in conjunction with retail lU1nb r yards; (5) hardwood 

flooring; (6) veneers; (7) plywood; (8) kiln dried hardwood dimen ion; 

(9) lath; (10) sawed boxes, shook and crate ; (11) plywood, veneer 

and wirebound package and container. ; and (12) in re pect of any 

Divi ion or ubdivi ion additional timber product a enumerated in 

chedule A. 

(b) "Per on" as used herein includ , ·without limitation, an individual, firm, partner hip, corporation, a ociation, tru t, tru t , or 

receiver subject to the juri diction of this ode. 

(c) '' Divi ions" and " ubdivision ' as u ed herein r fer to the 

e eral adn1ini trative unit of the lumb r and ti111b r pr duct indu - tries which ar e tabli h d and are defined in chedul h reof. The 

Divi ion and ubclivi ions initially e tabli hed are a follo, , provided, however, that any Divi i n or ubdivi ion, as initially e tabIi hed herein, r as may be tabli hed hereafter, or any ub tantial 

group in uch Divi ion r ubdivi ion of the indu try a her in defined, n1ay b exempted from th pro Yi ion f thi od by the Pre~id<3nt r by the dmini trntor under the pr f rti le ..1. II of 

thi ode: 
Cypress Division. 

Hardwood Division: 

23 

Appalachian and Southern Hardwood Subdivision. 

Mahogany Subdivision. 

Philippine Mahogany Subdivision. 

Walnut Subdivision. 

Northern Hardwood Subdivision. 

North Central Hardwood Subdivision. 

Northeastern Hardwood Subdivision. 

Northern Hemlock Division. 

Northern Pine Division. 

Redwood Division. 

Northeastern Softwood Division. 

Southern Pine Division: 

Southern Rotary Cut Lumber Subdivision. 

West Coast Logging and Lmnber Division: 

Douglas Fir Plywood Subdivision. 

Douglas Fir Door Subdivision. 

Western Pine Division. 

Woodwork Division: 

Stock Manufacturers Subdivision. 

Wholesale Distributors Subdivision. 

Special Woodwork Subdivision. 

Wooden Package Division: 

Sawed Box, Shook, Crate, and Tray Subdivision. 

Plywood Package Subdivision. 

Standard Container Subdivision. 

Pacific Veneer Package Subdivision. 

Egg Case Subdivision. 

Wirebound Package Subdivision. 

Veneer Fruit and Vegetable Package Subdivision. 

Red Cedar Shingle Division: 

Stained Shingle Subdivision. 

Oak Flooring Division. 

Veneer Division. 

Maple Flooring Division. 

Hardwood Dimension Division. 

ART. III. Administration.-(a) The applicant 7 organizations shall, 

with the approval of the President, establish and empower a suitable 

agency named "Lumber Code Authority, Incorporated" hereinafter 

referred to as the Authority to administer this Code in conformity 

with the provisions of the National Industrial Recovery Act under 

the authority of the President. Said agency shall be a body incorporated not for profit. Provision shall· be made for membership of 

representatives of the principal divisions of the industries, and provision shall also be made for three nonvoting members to be appointed 

by and to act as advisory representatives of the President. 

(b) The Authority shall issue and enforce such rules, regulations, 

and interpretations, and impose upon persons subject to the jurisdiction of this Code such restrictions as may be necessary to effectuate 

the purposes and enforce the provisions of this Code. 

(c) The Authority is authorized and instructed, with respect to the 

Rules of Fair Trade Practice set forth in Schedule B attached hereto, 

to devise and apply such further requirements or prohibitions, includ-
24 

1no- unfair trade pra tice , applicabl o the indu trie , which have 

b n p ificall c nd mned by th F -deral Tr d omm1 10n, as 

ma. onduce to the rderl p ration of th lumb r and timb r 

produ t indu trie , not in on i t nt with th pro i ion of the 

r ati nal In<lu trial R ov ry t, and with du con id ration of the 

right of mpl e in said indu tri and of th con umer of the 

produ t of said indu trie . u hr quirement r prohibition , when 

adopt d by th uthority, hall b ubmitt d to the Pre ident for 

approval and if approv d by hiin hall then b d n1 d to b upple111 nt to and am ndm nt of ch dul B of thi od . (d) The uthority may tabli h Divi ion and ubdivi i ns of 

he indu trie and hall d io-nat appropriat acr n ies, and the 

go erning bodie th r of, for he admini trati n of thi Code in ach 

Divi ion and u bdivi ion; the Authority may deleo-ate to said acrencies 

all necessary power and authority for the ad.mini tration of thi Code 

within the Divisions and Subdivisions, including the adoption of 

Divi ion and Subdivision code provisions within the scope f the 

power granted under this Code and not incon i ent with it; but the 

Authority shall reserve the power and duty to enforce the provi ions 

of this Code. The agencies initially so designated and the governing 

bodies thereof are set forth in Schedule A. 

(e) The governing body of the agency of each de ignated Divi ion 

or Subdivision shall be fairly representative of each group, including 

any substantial minority group within the Division or Subdivision, 

clas ified by regions, types of manufacture, or other appropriate 

considerations. The Authority shall have the power and duty to 

establish and maintain the rPpresentative character of such governing 

body and on the failure of any desio-nated agency to be representative, 

as prescribed herein, the Authority shall, unle s the de ignated agency 

shall comply with such instructions as the Authority may give, 

remove such agency and designate or cause to be designated a 

different agency for such Division or Subdivision. (f) The Authority shall coordinate the administration of this Code 

with such codes, if any, as may affect any divi ion or subdivision of 

the lumber and tin1ber products industries or any r lated industry, 

,¥ith a view to promoting joint and harmonious action upon matters 

of common interest; it shall receive, and, if it shall approve, shall 

present for the approval of the President, any proposals for supple- mentary provisions or amendments of this Code or additional odes 

applicable to the lumber and timber products industries or the 

various Divisions and Subdivi ions thereof with re. pect to wages, 

hours, trade practices, or any other matters affecting such industries 

or any Divi ion or Subdivisiqn thereof. Upon approval by the Pre - ident, such supplementary provisions or amendments of thi Code 

or such additional codes shall there 1pon have full force and effect and 

shall be con idered as integral part of this Code. · (g) The Authority hall admit or cause to be admitted to partici- pation in any Divi ion or ubdivi ion to whi h he belong , any 

per on on terms of equality with all other per ons participating 

th 1 in. 

ART. IV. Code Reports and Fees.- In ord r that the Pre ident may 

be inf rmed of th extent of ob rvance of the pro i ion of this Code 

and of the extent to which the d dared policy of the ational Indu - tri al R covery A t a tated herein i being effectuated in the lumber 
25 

and timber products industries, the Authority shall make such 

reports as the Administrator may require, periodically, or as often as 

he may direct, and each person shall make such sworn or unsworn 

reports to the Authority, periodically, or as often as it may direct, 

on wages, hours of labor, conditions of en1ployment, number of 

en1ployees, production, shipments, sales, stocks, prices, and other 

matters pertinent to the purposes of this Code as the Authority may 

require, and each person subject to the jurisdiction of this Code and 

accepting the benefits of the activities of the Authority hereunder 

shall pay to the Authority his proportionate share of the amounts 

necessary to pay the cost of assembly, analysis, and publication of 

such reports and data, and of the maintenance of the said Authority 

and its activities. Said proportionate share shall be based upon 

value of sales or footage of production, as the Authority may prescribe for each Division or Subdivision. The Authority may conduct such investigations as are necessary to discharge its duties 

hereunder. 

ART. V. Labor Provisions.-(a) Employees 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-organization or in other concerted activities for 

the purpose of collective bargaining or other mutual aid or protection. 

(b) 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. 

(c) Employers shall comply with the maximum hours of labor, 

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

or prescribed by the President. 

(d) No individual under 18 years of age shall be employed, except 

that boys 16 years and over may be employed in the Wooden Package 

Division and in nonhazardous occupations during school vacations or 

if there are no wage earners of 18 years or over in their families. 

ART. VI. Hours of Labor.-(a) General Provisions and Exceptions: 

(1) No employee shall be permitted to work for two or more employers for a longer period in any week than specified herein for a single 

employer. 

(2) Exceptions to the standards in respect to maximum hours of 

labor specified herein are authorized as follows: 

A. Executive, supervisory, traveling sales force, and camp cooks. 

B. Regular employment in excess of such standards, for employees, 

such as watchmen, firemen, and repair crews, where required by the 

nature of their work, for not more than 10 percent of the employees in 

any operation, but time and a half shall be paid for weekly overtime. 

C. Temporary employment in case of emergency. 

D. Seasonal Operations.-Seasonal operations are defined as those 

which on account of elevation or other physical conditions or dependence upon climatic factors are ordinarily limited to a period of ten 

months or less of the calendar year. 

The administrative agency of a Division or Subdivision may authorize employment in a seasonal operation for a maximum number of 

hours not exceeding 48 hours in any week, with the exception of parts 

of an operation depending on climatic conditions, such as tream 
26 

drivino- and l d hauling, in whi ha gr ater x b authorized; 

pr vid d, that th av rao- mploym nt in an en onal peration in 

an c l ndar ear hall not . ceed th tandard h dul 

E. 1anufactur r of wood n p kao- f r p ri habl fruit and 

ea- tabl ma b auth riz d b th dmini tr, tiY of th 

"'\ ood n uckao-e Di i ion to depart fro1n th t, ndard h dul of 

maximun1 hour appli able t aid nrnnufa tur r for a p riod not to 

d four , e l for an on crop, when nece ar to furni h packag for any p ri habl rop; provid d that the a rag e1nplo n1 nt 

of an individual in an, ·al ndar y a.r hall not x e d th tandard 

s h dule. 

(b) ubje t t the f reg ino- x ption , the n1aximmn hour of 

employment in the re pective Di i ion and ubdi ision hall be 

40 hours per we k. 

RT. II. jyf-ini mum liVage .-(a) en ral Provi ion : 

(1) The minimum compensation for workers employed on p1 cework or contract basi hall not be less than th minimun1 wag 

her under for the number of hour employed. 

(2) The existing amounts by which minimum wages in the higher 

paid classes, up to workers receiving $30.00 per week exceed minimum 

wage in the lowest paid classes, shall be.maintained. 

(3) Charges to employees for rent, board, medical attendance, and 

other services shall be fair. 

(b) Subject to the foregoing provisions, the minimun1 wage which 

shall be paid by persons under the jurisdiction of this Code shall not 

be less than 40 cents per hour, unless in any Di vision or Subdivision 

of the industries the prevailing hourly rate for the same class of employees on July 15, 1929, as determined by the Admini trator on 

statistical evidence, was less than 40 cents per hour, in which case the 

rate shall not be less than said pre ailing hourly rate so determined, 

plus fifteen percent if said hourly rate on July 1.5, 1929, wa le than 

30 cents per hour, provided, however, that for wages per hour between 20 cents and 29 cents, inclusive, on July 15, 1929, with wages 

of less than 20 cents per hour on that date being con idered as 20 

cents, the percentage of increase shall diminish one and one half 

percent for each cent that wages per hour exceeded 20 cent , in 

accordance with the following schedule: 

Wages per Increase under Wages per hour under hour, July proposed proposed 15, 1929 schedule schedule 

Genis Percent Cents 

20 15 23 

21 13}~ 24 

22 12 24. 5 

23 IO1⁄2 25. 5 

24 9 26 

25 71⁄2 27 

26 6 27. 5 

27 41⁄2 2 

28 3 29 

29 l 1⁄2 29. 5 

30 0 30 
27 

(c) No rmmmum rate of wages for any Division or Subdivision 

shall be less than that proposed for such Division or Subdivision by 

the applicant industries in the Code filed July 10, 1933. 

(d) Minimum rates of wages so determined in the respective 

Divisions and Subdivisions shall be as follows: 

Division Cents per Ilour Division Cents per 

Hour 

Cypress ________ - - - - - - - - - - - - -

Hardwood: 

Appalachian Hardwood ___ _ Southern Hardwood _________ _ Philippine Mahogany ________ _ 

Northern Hardwood: 

Mills & Factories ________ _ Logging _____ ___ ___ _______ __ _ 

North Central Hardwood: 

Mills & Factories ___ _____ _ Logging _____ ___________ _ 

North Eastern Hardwood: 

Mills & Factories ___ _____ _ Logging _______ _________ _ 

Northern Hemlock: 

Mills & Factories __ ____ __ _ Logging ___ ___ _____ _____ _ 

Northern Pine: 

Mills & Factories ________ _ Logging _____ ___________ _ Redwood ______ __ ___________ _ 

North Eastern Softwood: 

Mills & Factories ________ _ Logging __________ __ ____ _ 

Southern Pine _______________ _ 

Southern Rotary Cut ___ . ____ _ 

West Coast: Logging ___________ __ ___ _ 

Lumber Manufacture ____ _ Factories _______________ _ Fir Door .. ________ ______ _ Fir Plywood _____ _______ _ 

Western Pine (Except Arizona, 

New Mexico and Colorado 

South of 38° north latitude): Logging _________ ___ ___ _ _ Mills ___________________ _ 

Factories _________ ______ _ 

Arizona, New Mexico, and Colorado (South of 38° North 

Latitude) _________________ _ 

Red Cedar Shingle ___________ _ Stained Shingle __________ _ 

24 

28. 5 

24 

45 

30 

27 

32. 5 

32. 5 

30 

27 

30 

27 

33 .. 5 

28. 5 

35 

30 

27 

24 

23 

42. 5 

42. 5 

40 

40 

40 

42. 5 

42. 5 

40. 0 

24 

42. 5 

40 

Oak Flooring: 

Appalachian ____________ _ Southern ____ ___________ _ 

Maple Flooring ______________ _ 

Hardwood Dimension: 

Southern Hardwood Area __ Appalachian Hardwood Area ____________ ___ __ _ 

Northern Hardwood Area __ Northeastern Hardwood Area _____________ : ___ _ 

North Central Hard wood Area ___________ ______ _ 

Mahogany Subdivision: 9 

Zone 1, New York City & 

Chicago ______________ _ 

Zone 2, Northern Cities __ _ Zone 3, Northern Rural_ __ Zone 4, Southern Cities ___ _ Zone 5, Southern RuraL __ _ 

Walnut Subdivision: 9 

Zone 1, New York City & 

Chicago _______ _____ __ _ 

Zone 2, Northern Cities __ _ Zone 3, Northern Rural_ __ Zone 4, Southern Cities ___ _ Zone 5, Southern RuraL __ _ 

Veneer Division: 9 

Zone 1, New York City & 

Chicago ______ _____ ___ _ 

Zone 2, Northern Cities __ _ Zone 3, Northern RuraL __ Zone 4, Southern Cities ___ _ Zone 5, Southern Rural_ __ _ 

WOODWORK 

Division A-Stock Manufacturers Subdivision: 

Zone 1 10 ________________ _ 

Zone 2 _________________ _ Zone 3 _________________ _ 

9 Mahogany and Walnut Subdivision and Veneer. Division Zones are as follows: 

New York: Any establishment located within ten miles of the limits of the City of New York. 

Chicago: Any establishment located within ten miles of the limits of the City of Chicago. 

29. 5 

26 

30 

24 

28. 5 

30 

30 

32. 5 

42. 5 

35 

30 

30 

25 

42. 5 

35 

30 

30 

25 

42. 5 

35 

30 

30 

25 

25 

30 

32. 5 

Cities: Communities over 75,000 population, including establishments within ten miles of the city limits. 

Rural: Communities of less than 75,000 population. South: Alabama, Arkansas, Florida, Georgia, Louisiana, Missi sippi, North Carolina, Oklahoma, 

South Carolina, Tennessee, Texas, Virginia. North: Balance of the United States. 10 The Zones and territory under Woodwork are defined as follows: 

Zone #1 includes the states of Florida, Georgia, South Carolina, North Carolina, Virginia, Alabama, 

Tennessee, Mississippi, Louisiana, Arkansas, New Mexico, Arizona and Texas (13 States). 

Zone #2 includes the states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Delaware, District of Columbia, Maryland, West Virginia, Pennsylvania, Ohio, Kentucky, Indiana, Michigan, Illinois, Wisconsin, Minnesota, Iowa, Missouri, Kansas, Oklahoma, 

Nebraska, South Dakota and North Dakota (26 states and District of Columbia). 

Zone #3 includes the states of Oregon, Washington, California, Nevada, Idaho, Utah, Colorado, Wyo- ming and Montana, but excepting western Oregon and Washington, which are included in the code of 

the West Coast Lumbermen's Assn. (9 states). 

Metropolitan New York includes the territory within a 30-mile radius of the City Hall on Manhattan 

Island in the City of New York. 

Chicago includes the territory within the bom ,ds of Cook County, Illinois. 
28 

WOODWORK-continu d WOODWORK-continue 

C nts p r Hour Division Cent per llour 

25 

4 

35 

30 

32. 5 

Divi ion p cial V oodwork 

ubdivisi n: Zone L ________________ _ 

Zone 2: 

iro. . . Cit and 

hi ago __________ _ 

Ea t of Ohi , xcept . . City ______ __ _ Other territory ______ _ Zone 3 _________________ _ 

W ODEN PA KAGE 

25 

50 

4 

30 

32. 5 

Cents per IlourA. awed box hook, ·rat , and tray subdivi ion: 

a. Ea tern hook and Wood n Box group (Maine, a ., t., .. H., Conn., and R.I.)__________________________________ 30 

b. New York, New Jer ey hook group (New York-M trop litan 

ar a) ___ ___________________ ________________ ___ _______ __ 35 

c. South a tern Box & hook group ( a., North & South Carolina, 

Ga., Florida, Ea tern T nn., & Ea tern Ala.) ______________ 23 

d. South rn Hardwood group (Louisiana, Ala., Eastern Texas, 

Arkansas, Southeastern corner Mi souri, Southern end of 

Illinoi , We tern Tennessee & Mi i sippi_ _________________ 23 

e. Northw st Shook group (Wi ., Minn., .Dak., S.Dak., Winnebago Co. , Ill., Northern and Ea tern Iowa, orthern Peninsula 

of Mich.)____________________ ___ _________ __________ ____ 30 

f . Inland Empire group (Montana, Idaho, Eastern Oregon, 

Ea tern and Central Wahington)_____ ________ ____ __ ______ 40 

g. Pacific Wooden Box group (California, Oregon, Utah, Nevada, 

N ew Mexico, Arizona, and Colorado) : 

California, Oregon, Utah, Nevada and Colorado (North of 3 ° 

North Latitude)____ ________ __ ____ _____________ __ ____ _ 40 

New Mexico, Arizona & Colorado (Provisional) (South of 3 ° 

North Latitude) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 23 

h. Pacific Northwest Wooden Box group (We t ern Wa hingtou 

and Western Oregon and Alaska) ______ ___ ___ ___ ______ ____ 40 

i. Northern Box and Shook group (New York, excluding Metropolitan N .Y., New Jersey, excluding Metropolitan .J., 

Delaware, Penna., Ohio, Ind., Southern Peninsula of Mich., 

Illinois except Winnebago Co. and extreme south at mouth of 

Ohio river, Missouri except Southeast corner, Kansas, 

Nebraska, Southern and Western Iowa) ___________________ 30 

j. Southern Box and Shook group: (Maryland, W.Va., and 

Southern Pine and Softwood section of Tenn., ,, e tern Alabama, La., Arkansas, Texas, and Oklahoma)_ _______________ 23 

B. Plywood Package Subdivision: 

(South of Delaware River, the Southern line of Pennsylvania, the 

Ohio River and the Southern line of Missouri, Kan a , Colorado, 

and the Colorado River)_________________________ __ ________ 23 

orth of above line__________ __ __________ ____ ____ ___ _________ 30 

C. Southeastern Veneer Container ubdivision: (Florida, Georgia, Ala- bama) ____ _________ __ _____ _____ ___ _____ ____ ______ ___ _______ _ 23 

D. Pacific Veneer Container Subdivision: (California, Oregon, Wa hing- ton) ________________________________________________________ 40 

E. Egg Ca e ubdivi ion: 

(Florida, Georgia, So. Carolina, No. Carolina, Virginia, Alabama, 

Tennes ee, Mis issippi, Louisiana, Texas, Mar land, W. Virginia, Kentucky, Oklahoma, Arkan a , Southea tern o., and 

Ohio River point ) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 23 

All other t rritory __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ 30 
29 

WOODEN PACKAGE-continued 

DIVISION Cents per Hour 

F. Wirebound Box Subdivision: 

(Florida, Georgia, South Carolina, North Carolina, Virginia, Alabama, Tenn., Miss., La., New Mexico, Ariz., Texas, Maryland, 

W.Va., Ky., Okla., Arkansas, and Ohio River points)____ ______ 23 

All other territory ______________________ ~____________________ 30 

G. Veneer Fruit and Vegetable Package Subdivision: 

Southern Group: (North Carolina, South Carolina, Kentucky, 

Tennessee, Mississippi, Louisiana, Alabama, Texas, Arkansas, 

Georgia, Florida, Virginia, and nine counties Eastern Shore of 

Maryland and Delaware)__ ________________________________ 23 

Northern Group: New York, New Jersey, Midwest, and Michigan groups ___________________________________________________ 30 

In the Wooden Package Division minimum wage rates below those 

shown in the schedule shall be permitted in the case of boys and girls 

less than 20 vears of age, provided that not 1nore than 20 percerit of 

the total number of employees of any one plant shall be so classified; 

and provided further that the differential shall not exceed 3 cents if 

the rate after subtracting the differential is 27 cents or less, but in 

no case shall the differential exceed 5 cents. 

ART. VIII. Control of Production .-(a) To effectuate the declared 

purposes of this Code in respect o.f maintaining a reasonable balance 

between the production and the consumption of lumber and ti1nber 

products and to assure adequate supplies thereof, the Authority 

shall determine, and from time to time revise, not less frequently 

than each three months, estimates of expected consumption, including exports, of lumber and timber products of each Division and Sub,. 

division; and based thereon it is empowered to establish, and from 

time to time revise, production quotas for any Division or Subdivision 

of the lumber and timber products industries. Allotments within 

each Division and Subdivision, for the persons therein, shall be made,. 

subject to the supervision of the Authority, by the agencies designated 

by it. Said quotas as between such Divisions or Subdivisions shall 

be in proportion to the shipments of the products of each during a 

representative recent past period to be dete_rmined by the Authority; 

but the Authority may modify said proportions if warranted by evidence. In case of Divisions or Subdivisions, the raw material of 

which is imported, the quotas and allotments may be in terms of 

imports, so far as may be consistent with the provisions of Section 

7 (a) of the National Industrial Recovery Act. 

(b) Each person in operation shall be entitled to an allotment. 

Each person known to any Division or Subdivision agency to be in 

operation shall be registered by such agency immediately and shall be 

assigned an allotment. The agency shall also immediately give public 

notice reasonably adapted to reach all persons operating or desiring 

to operate, stating the date on which the allotments will be determined; 

and any person desiring to operate who shall give the agency written 

notice of such desire ten days before the allotment date, supported . by acceptable evidence of ability to operate, shall be registered by 

the agency and assigned an allotment. Any person so registered shall 

be deemed an "eligible person" for the purposes of this Article. 

(c) The allotment for each eligible person shall be determined 

from time to time for a specified period not exceeding three (3) 
30 

m nth and, e. ·c pt a ma b p rmi t d und 'r th prov1s10ns of 

section (d) h r f, hall b a follo\v : 

(1 ) That proportion of a sp cifi d percentaa , d t rmined a proid d in tion (d) and ( ) of thi Ar icl of th Divi ion or ubdii ion qu ta which hi gr atest av raa hourl produ tion in the 

hour operated durina any three calendar ar sin D cemb r 31, 

19 • .A, i of th aaaregat of such hourly production of all ligibl person within the Di i ion or ubdi i ion. 

(2) That proportion of a sp citied per entaae, determined a provid d in section (d) and (e) of this Article, of th Divi ion or ubdivision quota which hi great~st average y arly production for any 

tlu e calendar years since .December 31, 1924, is of the aggregate of 

such yearly production of all eligible persons within the Division or 

ubdivi ion. 

(3) That proportion of a specified percentage, determined as provided in sections (d) and (e) of this Article, of the Division or ubdivision quota which the greatest average number of his employees 

during any three calendar years since December 31, 1924, is of the 

aggregate of such number of employees of all eligible persons within 

the Division or Subdivision. 

(4) That proportion of not to exceed ten (10) percent of the Divi-

-sion or Subdivision quota which the amount of taxes paid by him, ·except Federal taxes, taxes on ore, coal, petroleum, ships, retail 

yards, and timber not set apart for the operation, during the next 

preceding calendar year is of the total amount of such taxes paid by 

all eligible persons within the Division or Subdivision. 

(5) That proportion of not to exceed fifteen (15) percent. of the Division or Subdivision quota which the quantity of reserve standing 

timber allocated to his operations within said Division or Subdivi-

-sion, and at the time the allotment is made, owned by him in fee or 

under contract is of the total quantity of such reserve standing timber owned in fee or under contract by all eligible persons within the 

Division or Subdivision. 

(d) (1) Exceptions to or changes in any allotment thus established 

-shall be made only for special, accidental, or extraordinary circum- .stances, or, in any Division or Subdivision, for other factors peculiar 

to a limited group of operations. Exception may be made only on 

application to the designated Division or Subdivision agency by an ,eligible person who must submit evidence in support of his application, and the exception may be granted only upon a published finding .and statement of reasons therefor. 

(2) A person conducting seasonal operations as defined in Article 

VI (a) (2) (D) hereof shall be entitled, on application to his Division ·or Subdivision agency, to produce during his period of operation not •only amounts allotted to him during his period of operation but also 

amounts allotted to him under section (c) hereof since the termination -of his previous operating period. 

(3) In the case of any person (a) who produced during less than 

three calendar years since December 31, 1924, and before December -31, 1930, or (b) who is entitled to an allotment for operation of new, .additional, or restored facilities, which were not in operation for such 

three calendar years, or (c) for whom for any other reason such three 

calendar years are not reasonably representative of his present circum- .stances, his average hourly production, his average yearly production, 
31 

and his average number of employees shall be determined by the 

Division or Subdivision agency on an equivalent basis by comparison 

with substantially equal facilities already established and in like 

regions or conditions. 

(4) On application of a Division or Subdivision, the Authority 

may authorize the allotment of production therein on any one or 

more of the bases provided in subsections (1), (2), and (3) of section 

'(c) hereof in such relative proportions as the Authority may approve; 

-and including or not the bases, or either of them, provided in subsections (4) and (5) of said section (c). 

(e) In the absence of an approved application from any Division or 

Subdivision for the assignment of allotments under the provisions of 

subsection (4) of section (d) hereof, the Authority may direct that 

allotnrnnts within said Division or Subdivision be assigned in accordance with the provisions of section (c) in the following relative proportions: 

Subsection (1), hourly production, 40 percent; 

Subsection (2), yearly production, 30 percent; 

Subsection (3), number of employees, 15 percent; 

Subsection (4), taxes paid, 5 percent; 

Subsection (5), standing timber, 10 percent; 

unless the Division or Subdivision shall elect to accept the average 

relative proportions of the Divisions or Subdivisions whose allotments 

have been theretofore approved. 

(f) The basis for determination of Division and Subdivision quotas 

-and of individual allotments and any revisions thereof, all quotas, all 

allotments, and all appeals therefrom and all decisions on appeals ·shall be published. , (g) Allotments from two or more Divisions or Subdivisions to the 

same person shall be separate and distinct and shall not be interchangeable. Allotments shall not be cumulative except as authorized 

in specific cases under section (d) (I) of this Article, or in cases of 

seasonal operations of a Division or Subdivision under section (d) 

(2) of this Article, and shall not be transferable except as between 

operations under the same ownership within the same Division or 

Subdivision. 

(h) Whenever in the case of any eligible person it shall be necessary, 

in order to accept and execute orders for export, to have an addition 

to his regular allotment, ·provision for such necessary excess shall be 

made by the Division or Subdivision agency, provided that any excess 

above his allotment shall be deducted from his subsequent allotment 

or allotments. 

(i) The Authority may modify, or cause to be modified, production 

quotas and allotments determined hereunder, and the bases therefor, 

in such manner and to such extent as may be necessary to effectuate 

the provisions of the Code in respect of the conservation and sustained 

production of forest resources. Such modification shall not be made -effective prior to the next succeeding allotment date. 

(j) The basis of allotments as provided in sections (c), (d), and (e) 

hereo.f is tentative and is subject to revision. When in the judgment 

of the Authority revision of the bases of allotments is desirable, 

whether by changing the proportions of the factors in determining 

allotments enumerated in Section (c), subsections 1, 2, 3, 4, and 5, of 

this Article, in accordance with the procedure established in sections 
32 

r b the additi n f th r fa t r , on id ration 

hall b ()'iv n t th inrlu 'ion f pra ti abl and quitabl m a ure 

subj t t th appronll of th Pr ident for in r a ing all tm nt f 

p r n wh o t ar b l \\. the w io-ht <l a,· n g d fin din ti n 

n) f .. \.rti 1 L ,.. . 

(k ) Th Auth rity a pr rnptly pra ti ul 1 aft r it a ti n pur- ~unnt t Art. ~.,. h r of. hull . uhmit for th approval of th Pr idcnt 

appr priat han in th ) ba f all trn nt . (1) Ex pt a th rwi provid in e ti n (h) of hi rti 1 , n 

per on shall pro luc r manufa tur lumber r timh r pr du t in .· e of hi all tm nt. lf an. p r on "hall x · d hi allotm nt the 

Divi ion or ubdiYi i n a0 · ncy ·hall climini "h the ub qu nt all tment or allotment of th off nd r in an am unt equal t u h xc 

(m ) The Authority hall i u int rpretati n and hall pr mulo-at 

rule and regulation ne ary for th nfor ement of thi ...\.rticl , t 

preYent ,~a ion and ecur equitable application th re f, and a i0 ·n 

quota to each Divi ion and ubdiYi ion which hall be om ff ctiv 

on the dat pecified by the Authority. Each Divi ion and ubdiYisi n hall a ign allotn1ent to all ligible per .. n effective on the date. specified by the Authority. 

Interim Article.-Pending the ffective date of placing .. \.rticle VIII 

or any part thereof in execution in any Division or ubdivi ion, th 

Authority n1ay authorize the de ignated agency of such Division or 

ubdivision to assign to eligible per on production allotment in 

hours of allowable operation. 

ART. IX. Cost Protection.-(a) \Yhenever and o long as the 

Authority determines that it will contribute toward accomplishment 

of the declared purposes of the Code, and whenever it is satisfied 

that it is able to determine cost of production as defined in thi 

section (a), the Authority i authorized to establish and from time 

to time revise minimum. prices f.o.b. mill, to protect the cost of production of items or classifications of lumber and timber product . uch minimum prices shall be established with due regard to the 

maintenance of free competition among specie , Divisions, and ubdivisions, and with the products of other industries and other countries, and to the encouragement of the use of said products; and except 

for export sales shall be not more than cost of production, determined 

a provided in this section (a), nor less than such cost of production 

after deducting the capital charges specified in items 11 and 12 (b) 

of this section (a). 

The current weighted average cost of production of persons in 

operation in a Division or ubdivision, or where necessary in a group 

of persons within a Division or Subdivision, as defined by the Authority, shall be established by uniform accounting practice~, and hall 

include1. vVage . 2. 11aterials and supplies. 

3. Overhead and admini tration, including trade-a sociation due 

and Code fees. 

4. hipping, including grading and loading. 

5. elling, not including advertising or trad promotion. 

6. Maintenance. 

7. Insurance, including compensation and employee insurance, but 

not including insurance on tanding timber. 
33 

8. Taxes, including taxes on timber tributary to and allocated to 

an existing mill or logging operation, not to exceed a twelve-year 

:Supply therefor. 

9. Interest paid on indebtedness representing plant, facilities, and 

working capital necessary for mills actually operating or capable of ,operating, including mills, equipment, logging facilities, docks, inventory, accounts receivable, and timber tributary to and allocated 

to any existing mill or logging operation, not to exceed a twelve-year 

. upply therefor. 

10. Discounts, claims paid, and losses on trade accounts. 

11. Depreciation: On straight-line method, and based on the fair 

value or the cost, whichever is lower, on operating mills and on mill 

and logging equipment, including mills and equipment capable of 

operation, plus amortiza.tion of investments in logging railroads, <locks, and other logging and plant facilities. 12. Raw material: (a) Logs, flitches, lumber, and other partially 

1nanufactured material purchased, at actual cost, and standing timber 

cut under contract of purchase, at actual cost. (b) Standing timber carried in capital account, cut for operations, at fair current value to be determined by the Administrator, without 

regard to greater original cost, higher book value, or accumulated 

carrying charges. 

13. Conservation and Reforestation: (a) Costs of protection of 

timbered and ,cut-m.~er lands, including fire protection and slash 

disposal, and protection from insects and disease. 

(b) Additiorial costs when incurred under instructions fron1 the 

Authority, in such an amount as is warranted by market conditions, 

to be specifically devoted to timber conservation and reforestation in 

accordance with regulations prescribed by the Authority, up to the 

amount estimated by the Authority to be necessary to reproduce the 

equivalent of the timber converted. 

(b) Until such time as the Authority shall lrn,ve formulated and ·secured the general application by the several Divisions and Subdivisions of nrnthods of accounting by which item l l of section (a) 

hereof may be accul'ately ascertained, said item tnay not be included 

in the deternunation of co t of production for the purposes of this 

Article. · 

(c) Cost of production for each species, determined as provided in 

section (a), including or not including as the case n1ay be, or in whole 

or in part, capital charges for stumpage and depreciation, shall be 

allocated by the Authority to the several items or classifications of 

lumber or other products thereof for which minimun1 prices are established, in proportion to their relative market prices over a representative period. Such allocation may be changed by the Authority fro1n 

time to time as may be found necessary to avoid shortages or excessive 

accumulations, ·within any Division or Subdivision of particular 

items or classifications of lumber and timber products; but the 

weighted average minimum price of all items and classifications for 

each species shall not be more than cost of production as determined 

in section (a) nor less than said cost after deducting the capitai charges 

specified in items 11 and 12 (b) of said section (a). 

(d) In determining minimum prices for any Division or Subdivision 

the Authority shall establish equitable price differentials for products 
34 

b 1 w a cepted stA.ndtud I quality a pr crib cl by th authority, 

uch n~ th pr du t f 1n mall m.i]] . 

( ) _ o p r on hall ell r off r for ale lm 1ber or timber produ t 

upon which rnininuun pri ~ hav be n e ablj h d at pri e I . than 

th o e tablLhcd. _ o p r .. n hall ~ 11 or off r f r al lmnher or 

timber product to \\ h le ale or oth r di tributor who hav'.} b en 

found b T tlte _ dmini trator t haYc vi lat d any of th provi ion of 

the Rul ., of Fair Trade 1 racti e inc l'J orat <l in th.is ode a h clulc B, ex ept upon uch t rm and ondition as the A iministr tor in 

ac conlan e with law hall pre ribe. 

(f) o per on hnll ell or off er for sale non tandard crrade , ize , dimen ion , or clas ifi ation of lumber or timber product for the 

purpo e of ev ding the provi ions of thi Article. 

(g) In the case of imported lumber and timber product , minin1um 

prices for domestic sale shall be determined by the Authority, and 

such minimum prices shall be equivalent to the n1inimum prices 

determined and approved for the same or sim.ilar or competing items, 

grade , sizes, and species of lumber and timber products of dome tic 

production. 

(h) The Authority shall secure current information concerning the 

competition in domestic markets of imported lumber and timber 

products, and if it shall find that such products are being imported 

into the United States in substantial quantities or increasing ratio 

to domestic production and on such terms or under such conditions 

as to render ineffective or seriously to endanger the maintenance of 

this Code, it shall complain to the President pursuant to the provisions of Section 3 (e) of the National Industrial Recovery Act and 

petition for suitable restrictions on the importation of such lumber 

and timber products. 

(i) The Authority shall issue interpretations and shall promulgate 

rules and regulations necessary for the enforcement of this Article,_ 

to prevent evasion and secure equal application thereof. 

(j) Minimum prices established in accordance with the provisionSof this Article shall become effective ten (10) days after publication 

thereof by the Authority. 

ART. X. Con~~ervation and Sustained Production of Forest Resources.-

The applicant industries undertake, in cooperation with public and 

other agencies, to carry out such practicable measures as may benecessary for the declared purposes of this Code in respect of conservation and sustained production of forest resources. The applicant 

industries shall forthwith request a conference with the Secretary of 

Agriculture and such State and other public and other agencies a.s 

he may designate. Said conference shall be requested to make to 

the Secretary of Agriculture recommendations of public measures 

with the request that he transmit them, with his recommendations, 

to the President; and to make recommendations for industrial action 

to the Authority, which shall promptly take such action, and shall 

submit to the President such supplements to this Cod , as it deter-• 

mines to be necessary and feasible to give effect to said declared 

purposes. Such supplements shall provide for the initiation and 

administration of said measures necessarv for the con ervation and 

sustained production of forest resources: by the indu trie within 

each Division, in cooperation with the appropriate Stat and F deral 

authorities. To the extent that said conference may determine that 
35 

said measures require the cooperation of federal, state, or other publicagencies, said measures may to that extent be made contingent upon 

such cooperation of public agencies. 

ART. XI. Special Agreements.-Voluntary agreements, or proposed 

voluntary agreements, between and among persons engaged in the 

logging of timber or the production and distribution of lumber and 

timber products, or between and among organizations or groups in 

the lumber and timber products industries, or in which such persons, 

organizations, or groups propose to participate, proposed to be submitted to the President for approval under Sec. 4 (a) of the National 

Industrial Recovery Act, shall not be in conflict with the provisions 

of this Code or with any approved rule issued thereunder. Such 

agreements or proposed agreements shall be submitted to the Authority and if not disapproved by it within thirty days as being in 

conflict with the provisions of this Code, they may thereafter be submitted to the President for approval; but no person engaged in theproduction and distribution of lumber and timber products shall participate in any such agteement which has been determined by theAuthority to be in conflict with the provisions of this Code. 

ART. XII. Cancellation or Modiji,cation.-(a) The President may 

from time to time cancel or modify any order, approval, license, rule,, 

or regulation issued under Title !""of the National Industrial Recovery 

Act in respect of this Code. 

(b) Any decision, rule, regulation, order, or finding made or courseof action followed pursuant to the provisions of this Code, may becancelled or modified by the Administrator whenever he shall determine such action necessary to effectuate the provisions of Title I of 

the National Industrial Recovery Act. 

ART. XIII. Monopolies.-(a) This Code shall not be construed, interpreted, or applied so as to promote or permit n1onopolies or monopolistic practices, and shall not be availed of for ·that purpose. 

(b) The provisions of this Code shall not be so interpreted or administered as to eliminate or to oppress or to discriminate against 

small enterprises. 

ART. XIV. Division and Subdivision Code Provisions.-Code provisions affecting or pertaining to Divisions and Subdivisions of the 

lumber and timber products industries are contained in Cchedule "A" 

attached hereto, which is specifically made a part of this Code, in 

so far as they relate to description of the respective Divisions and 

Subdivisions, identification of persons and products subject to their 

jurisdiction, and designation of administrative agencies. Additional 

Code provisions affecting or pertaining to Divisions and Subdivisions 

may be filed with the Authority and if not inconsistent with theprovisions of this Code may be recommended by it to the President. 

When approved by the President such provisions shall have the same 

force and effect as any other provisions of this Code. 

ART. XV. Violations.-Violation by any person of any provision of 

this Code or of any rule or regulation issued thereunder and approved 

by the President, or of any agreement entered into by him with the 

Authority so observe and conform to this Code and said rules and 

regulations or by any importer of any agreement entered into by him 

with the said Authority for the restriction of importation of lumber 

and timber products, or any false statement or report made to the 

President or to the Authority or to the governing body or agency of 
36 

an de ignated Di i ion r ubdi i i n, after de i i n by th Adminitrator th reon pur u nt to rti 1 ..1. II of thi od or otherwi e, 

hall con titut an unfair n1eth d of 01upetition, and th off nder 

shall be ubj ct t the p nalti impo d by th ational Industrial 

Re ov ry ct. 

RT. X I. Rule of Fair Trade Practice.-(a) Th Rules of Fair 

Trad Pra ti e for the Lumber and Timber Product Indu tri s, a 

t forth in h dul "B ' atta h d h r to, ar pecifically mad a 

part of thi od . Th uthority hall make such additions to or 

exception from aid Rul , a th agen .i of the r p ctive Divi ions 

or ubdivi ion ma reque t, appli able in the resp ctive Divisions 

and ubdivi ion , provid d th Authority finds aid additions and 

exceptions are not unfair to p r on in oth r Divi ion or Subdivisions 

or their employees, or to con umer , and not in on i tent with the 

other provision of thi Code, or with the ational Industrial Recovery 

Act. pon appro al of such additions and ex eptions by the 

Administrator aid rules shall take precedence in the re pective Divi- sions and ubdivisions in respect of the ubject matter of said addi- tion and exceptions, and shall be effective concurrently with the Rules 

so added or excepted to. 

(b ) The appli ant industries undertake to adopt,apply,and enfor e 

branding or marking or marking of lumber and timber produ t . Subject to section (c) hereof, all timbers, all seasoned lumber except 

factory and shop lumber, all flooring and all shingles and lath shipped 

to markets within the United States, not including export shipments, 

shall be branded by the manufacturer or producer thereof or by his 

agent in such manner as will indicate (1) its species, except as other- wise determin d by the Authority; (2) its grade; (3) whether it i of 

standard or substandard dimensions; (4) whether it is seasoned or 

unseasoned. All shipments except export shipments, by rail or 

water of timber, ]·umber, flooring, shingles, and 1ath shall be accom- panied by a certificata of the originating shipper showing the quantity 

and grade thereof. 

(c) The Authority shall submit to the President, not later than 

January 1, 1934, provisions, including proposed rules and regula- tions, necessary to effectuate the requirements of this Article and to 

establish other desirable certification of products, to prevent evasion 

and to secure equitable application thereof; and the said provisions 

when approved shall be a part of thi Code, or of the Rule of Fair 

Trade Practic , and shall be effective not more than thirtv (30) days 

thereafter. 

ART. XVII. Appeals.-(a) Any interested party shall have the 

right of complaint to the designated agency of any Division or Sub- division and of prompt hearing and decision thereon in respect of 

any decision, rule, regu_ation, order, or finding made by such agency. 

Such complaint must be filed in writing with the said agen y within 

a reasonable period of time after said deci ion, rule, regulation, order, 

or finding i is ued. The decision of aid agen y may be app aled by 

any interested party to the Authority. 

(b) Any intere ted party hall have the right of complaint to the 

Authoritv and of prompt hearing and d i ion th reon, under u h 

rule and regulation a it. hall pr crib , in re p ct of any d cision, 

rule, regulation, order, r finding made by the Authority. 
87 

(c) Any interested party shall have the right of appeal to the 

Administrator of the National Industrial Recovery Act, under such 

rules and regulations as he shall prescribe, in respect of any decision, 

rule regulation, order or finding made by the Authority. 

ART. XVIII. Jurisdiction.-This Code, when approved by the 

President, shall apply to all persons engaged in the lumber and timber 

products industries as defined herein. 

ART. XIX. Effective Date and Termination.-(a) The provisions of 

this Code in respect of maximun1 hours and minimum wages shall be 

in effect beginning three days after its approval by the President; and 

other provisions of the Code, unless specifically provjded otherwise, 

ten days after approval by the President; Schedule B shall be in effect 

at such date as may be specified by the Authority; but not later than 

Noven1ber 1, 1933. 

(b) This Code shall terminate on ,June 16, 1935, or on such earlier 

date as the National Industrial Recovery Act may cea.se to be effectiYe. 

(c) This Code shall continue in effect for a period of si'.: (6) months 

after the date of approval thereof by the President in order to afford 

to the President an opportunity to determine upon the recommendations of his representatives on the Authority, which recommendations 

shall be n1ade periodically or as o_ften as the said representatives deem 

necessary or advisable but in any event not later than six months after 

the date of approval of this Code by the President, whether its provisions will effectuate the purposes of Title I of the National Industrial 

Recovery Act, subject, however, to amendment at any time, as hereinbefore provided, and subject also to the reserved power of the 

President to cancel or modify his approval thereof. This Code shall 

continue in effect after the expiration of said period of six (6) months 

in the absence of the exercise of such reserved right on the part of the 

President. 

SCHEDULE A 

DIVISION AND SUBDIVISION-CODE PROVISIONS 

(Parenthetical references in these Provisions refer to Articles of the Code) 

1. Cypress Di vision. 

2. Hardwood Division: 

3. Appalachian and Southern Hardwood Subdivision. 

4. Mahogany Subdivision. 

5. Philippine Mahogany Subdivision. 

6. Walnut Subdivision. 

7. Northern Hardwood Subdivision. 

8. North Central Hardwood Subdivision. 

9. Northeastern Hardwood Subdivision. 

10. Northern Hemlock Division. 

11. Northern Pine Division. 

12. Redwood Division. 

13. Northeastern Softwood Division. 

14. Southern Pine Division: 

15. Southern Rotary Cut Lumber Subdivision. 

16. West Coast Logging and Lumber Division: 

17. Douglas Fir Plywood Subdivision. 

18. Douglas Fir Door Subdivision. 

19. Western Pine Division. 

20. Woodwork Division: 

21. Stock Manufacturer Subdivision. 

22. Wholesale Distributors Subdivi ion. 

23. Special Woodwork Subdivi ion. 
3 

24. 

25. ubdivi ion. 

26. 

27. 2 . 

29. 

30. 

30a. ubdivi ion. 

31. Red 

32. 

33. 

34. 35. 36. 

1. GrPRE, D1v1 IO , 

Divi ion ( rt. II c) .-The Cypress Di vi ion con i t of producers and man ufactur r of lumber and timber product of Tidewater R d Cypre in th tat 

of Florida, G orgia, Loui iana, and outh Carolina, but doe not includ whit 

and yellow cypr or the mall amount of red cypre produced by hardwood 

mill . Products (Art. II a) .-Lumb r and Timber product under the juri diction of 

thi DiYi ion includ all Tidewater Red Cypres logs, pole , and piling; sawn 

lumber; planing mill product , except tho e of planing mills operated in conjunction ·with retail lumber yards; shingles, flooring, veneers; plywood; lath; 

boxes and crates. 

Administrative Agency (Art. III) .-The Southern Cypress Manufacturers' 

As ociation i de ignated as the agency of the Authority for the administration 

of the Code in thi Di ision. Said As ociation, through its Board of Director , is authorized to make rules and regulations necessary to administer the Code in 

thi Division, and shall designate and authorize such agencies as may be required 

for this purpose. 

2. HARDWOOD DIVISION 

Division (Art. II c).-(a) The Hardwood Division consists of producers, manufacturers, importers, and distributors of hardwood lumber and timber product , in the following Subdivisions: 

Walnut Subdivi ion. 

Southern and Appalachian Hardwood Subdivision. 

North Central Hardwood Subdivision. 

Mahogany Subdivision. 

Northeastern Hardwood Subdivision 

orthern Hardwood Subdivision. 

Philippine Mahogany Subdivi ion. 

(b) Jurisdiction shall also extend to wholesaler , exporters, and distributors of 

such hardwood product to the extent provided for in the Code, in this or any 

Subdivision code provisions, and in the rules of fair trade practice appended in 

Schedule B. 

(c) The territory and person subject to the jurisdiction of the seven ubdivi ions 

shall be defined by the Hard" ood Coordinating Committee hereinafter de ignat d. 

Other SubdiYi ions may be establi hed upon application to the Authority through 

the Hardwood Coordinating Committee. Products ( rt. II a) .-Hardwood logs, awn tic , timber and lumb r, lath, 

dimension cut from the log, and product of 1 laning mill operat din conjunction 

with awmill ; a nd in respect of any ubdivi ion uch additional hardwood timber 

product a it may enumerate. Administrative Agencies (Art. III) .-(a) The dmini trative gencie in the 

re pectiYe ubdivi ion hall be a follow : 

Walnu ubdivi ion, American Walnut Manufacturer oci,1tion. 

out hern and Appalachian Hardwood ubdh·i ion, Hard,Yood Ianufacturer In titute. North Central Hardwo d 

ociation . ubdi i ion , Indiana Hardn·ood Lumb rm n 

Mah ga ny ubdivi i n Mahogany ... orth a t rn Hardn· d ubdivi ion, t u r 

iation . orthea tern Lumber Manufac-
39 

Northern Hardwood Subdivision, Northern Hemlock & Hardwood Manufacturers Association. 

Philippine Mahogany Subdivision, Philippine Mahogany Manufacturers 

Import Association. 

(b) The Hardwood Coordinating Committee, established by the above administrative agencies in conjunction with the National-American Wholesale Lumber 

Association, the National Hardwood Lumber Association, and the National 

Lumber Exporters Association, is designated as the agency of the Authority for 

the administration of the Code in this Division, through and by means of this 

administrative agency herein designated for each Subdivision. 

(c) Said Committee shall issue and enforce such rules, regulations, and interpretations, including trade practices, impose upon persons subject to the jurisdiction of this Division such restrictions and designate such agents and delegate 

such authority to them as may be deemed necessary; but shall reserve the power 

and duty to enforce the provisions of the Code in this Division. The Committee 

may delegate any of its authoirty to its representatives, selected from its membership, or the membership of the Authority, who are hereby empowered to act for 

the Division conclusively in respect of all matters coming before the Authority. 

Such representatives shall constitute the Hardwood Executive Committee. All 

matters of interest to the Division or any Subdivision requiring action by the 

Authority shall fin,t be presented to the Hardwood Executive Committee. 

(d) Each Subdivision shall, under authority of the Hardwood Coordinating 

Committee, select its own administrative agencies. Each Subdivision shall be 

independent and self-governing in respect of all conditions and problems relating 

to the said Subdivision exclusively. Proposals in respect of matters affecting 

more than one Subdivision may be initiated by any Subdivision and shall be 

submitted to the Hardwood Coordinating Committee. 

3. APPALACHIAN AND SOUTHERN HARDWOOD SUBDIVISION 

Subdivision (Art. Ile): This Subdivision consists of producers and manufacturers of hardwood lumber and timber products, but including Appalachian 

hemlock, white pine and spruce, also white and yellow cypress and Southern 

red cedar, within the following states: Texas, Louisiana, Mississippi, Alabama, 

Arkansas, Missouri, Oklahoma, Florida, Georgia, Tennessee, Kentucky, South 

Carolina, North Carolina, Virginia, West Virginia, and Maryland. 

The Appalachian Territory is defined as that part of the Appalachian and 

Southern Hardwood Subdivision within the lines defined as follows: Starting at 

Cincinnati, Ohio, following main line Louisville and Nashville Railroad through 

Louisville, Kentucky, and Nashville, Tennessee, to Tennessee-Alabama state 

line, making the western boundary of the Appalachian territory; thence east on 

Tennessee-Alabama state line to Georgia state line; thence south on AlabamaGeorgia state line to thirty-fourth parallel; thence east on thirty-fourth parallel 

in Georgia to main line Southern Railway, Atlanta to Washington route; and · thence northeast following Southern Railway from this point through South 

Carolina, North Carolina, Virginia, and Maryland to Pennsylvania state line. 

All points on boundary lines are in southern territory. 

Products (Art. Ila) : All lumber and timber products enumerated except: 

poles and piling; products of planing mills not operated in conjunction with 

sawmills; hardwood flooring; veneers; plywood. 

Administrative Agency (Art III): The Hardwood Manufacturers Institute is 

designated as the agency of the Authority and the Hardwood Coordinating 

Committee for the administration of the Code in this Subdivision. Said Institute, through its Board of Directors, is authorized to make rules and regulations 

necessary to administer the Code in this Subdivision and to designate and 

authorize such further agencies as may be required for this purpose. 

4. MAHOGANY SUBDIVISION 

Subdivision (Art. II c): 

The Mahogany Subdivision includes all manufacturers importers, and distributors, including principals, brokers and agents, of mahogany and foreign woods 

as hereinafter defined. 

Species and Products (Art. II a): (a) All species of Mahogany (except woods 

from the Philippine Islands sold under the trade name "Philippine Mahogany"), 

Spanish Cedar, Teak, Ebony, Rosewood, Satinwood, Box Wood, Cocabola, 

Lignum, Vitaw, wood from Australia sold under the trade name" Oriental Wood", 

European Brown and Pollard Oak, all other tropical hardwoods (except from the 
40 

th r f r i n hardwood cu ·tomarilv d cribed as 

rdiuarily E ur pean and anacltan mmercial 

~. PHILIPPI E M AHOG A Y- BDIVISIO 

ubdivision ( rt. II c) .- Th Philippin Ma hogany ubdi i ion in the nited 

tate con i t of manufacturer of lumber and timber product of Philippine 

fahogany and other Philippine hard,rnod , per on exclu iv ly repre enting in 

th nit d t ates manufacturers of uch lumber and timber product in the 

Philippine I lands and all importer of such lumber and timber product . Products (Art. II a) .-Log , lumb r, and timber product of all pecie of hardw d produced in the Philippine I land . Adrninistrative Agency (Art. III) .-The Philippine Mahogany Manufacturers 

Import A ociation is de ignated as the agency of the Authority and the Hardwood 

Coordinating Committee for the admini tration of the Code in this ubdivi ion. 

Said Association, through its Executive Committee, is authorized to make rules 

and regulations necessary to administer the Code in this ubdivision. 

6. WALNUT SUBDIVISIO 

Subdivision (Art. II c) .-The Walnut Subdivi ion consist of producers, manufactur r , and importer of walnut throughout the nited State . Products (Art. II a) .-All walnut lumber, logs, burls, crotches, and awmill 

products regardless of the variety of walnut, except walnut veneers. 

Administrative Agency (Art. III) .-The American Walnut Manufacturers 

A ociation is designated as the agency of the Authority and the Hardwood 

Coordinating Committee for the administration of the Code in this Subdivi ion. 

Said A sociation, through its Executive Committee, is authorized to make rules 

and regulations necessary to administer the Code in this Subdivision, and shall 

designate and authorize such agencies as may be required for this purpose. 

7. NORTHERN HARDWOOD SUBDIVISION 

Subdivision (Art. IIc).-The Northern Hardwood Subdivision consist of producers and manufacturers of lumber and timber products of birch, maple, ash, 

elm, basswood, oak, beech, and other indigenous and related species in Michigan, 

Wi consin, and Minnesota. 

Products (Art. II a) .-All lumber and timber products enumerated exc pt poles 

and piling, woodwork, hardwood flooring, veneers, plywood, and kiln-dried hardwood dimension. 

Administrative Agency (Art. III).-The Northern Hemlock and Hardwood 

Manufacturers Association is designated as the agency of the Authority and of 

the Hard'1-·ood Coordinating Committee for the administration of the Code in 

thi Subdivision . Said As ociation, through its Board of Director , i authorized 

to make rule and regulations neces ary to administer the Code in this ubdivi ion a nd hall de ignate and authorize such agencies a ma be required for 

thi purpo e. 

8. NORTH C E NTRAL HARDWOOD UBDIVI ION 

Division (Art. II c) .- The orth Central Hardwood ubdivision con i t of 

prod ucer and manufactur rs of hardwood lumber and timber products in the 

tate of Ohio, Indiana, and Illinoi . P roducts (Art . II a) .- All lumber and timb r products enumerated except 

p ole ' and piling, producL of planing mills not operated in conjunction with sawmill , hardwood floo ring, veneer , and plywood. 
41 

Admini.·lralil'e Agency (Art. III).--Tl:e Xorth Central ubdivi ion A ociation 

is de ignated as the agency of the Authority and of the Hardwood Coordinating 

Committee for the administration of the Code in this ubdivision. aid A ociation, through its Admini tration Committee, is authorized to make rules and 

regulations necessary to admini ter the Code in this Subdivision, and shall 

de ignate and authorize such further agencies as may be required for thi purpose. 

9. ORTHEASTERN HARDWOOD SUBDIVISION 

ubdivision (Art. II c) .-The ortheastern Hardwood Subdivision consists of 

the producer and manufacturers of hardwood lumber and timber products of 

birch, beech, maple, ash, elm, bas wood, oak, and related species in the ew 

England States, ew York, Pennsylvania, and New Jersey. 

Products (Art. II a) .-All lumber and timber products enumerated except: 

poles and piling, planing-mill products, woodwork, hardwood flooring, veneers, 

plywood, and kiln-dried hardwood dimension. 

Administrative Agency (Art. III) .-The ortheastern Lumber Manufacturers 

Association is designated as the agency of the Authority and of the Hardwood 

Coordinating Committee for the Administration of the Code in this Subdivision. 

Said A sociation, through it Board of Directors, is authorized to make rules and 

regulation necessary to administer the code in thi Subdivision and shall de ignate 

and authorize uch agencies as may be required for this purpose. 

10. NORTHERN HEMLOCK DIVISION 

Division (Art. II c).-The Northern Hemlock Division consists of the producers 

and manufacturers of lumber and timber products of Northern hemlock, tamarack, balsam fir, Norway pine, and white pine in the States of Michigan, Wisconsin, and Minnesota (excepting the producers and manufacturers of orthern pine 

lumber in Minnesota). 

Products (Art. II a) .-All lumber and timber products enumerated except: 

poles and piling, woodwork, hardwood flooring, veneers, plywood, and kiln-dried 

hardwood dimension. 

Administrative Agency (Art. III) .-The Northern Hemlock and Hardwood 

Manufacturers Association is designated as the agency of the Authority for the 

administration of the Code in this Division. Said Association, through 'its 

Board of .Directors, is authorized to make rules and regulations neces ary to 

administer the Code in this Division, and shall designate and authorize such 

agencies as may be required for this purpose. 

11. NORTHERN PI E DIVISION 

Division (Art. II c).-The Northern Pine Division consist of the producers and 

manufacturers of lumber and timber products of white pine, Norway pine, and 

miscellaneous soft"·ood and hard"\\'Ood lumber in the State of Minnesota. 

Products (Art. II a) .-All lumber and timber products enumerated except: 

millwork, hardwood flooring, veneers, plywood, and kiln-dried hardwood dimen- sion. 

Administrative Agency (Art. II) .-The Northern Pine Manufacturers' A sociation is designated as the agency of the Authority for the admini tration of the 

Code in this Division. Said Association, through its Board of Directors, is 

authorized to make rules and regulations necessary to administer the Code thi in 

Division, and shall appoint such agencies as may be necessary for this purpose. 

12. REDWOOD DIVISIO. 

Division (Art. II c).-The Redwood Division consists of producers and manufacturers of lumber and timber products of redwood and intermino-ed species in 

the counties of Del orte, Humboldt, _ 'fendocino, Sonoma, Marin, San Mateo, 

Santa Cruz, and Monterey, in the State of California. 

Products (Art. II a) .-All lumber and timber products, split, sawn, or refined by 

manufacture, except hardwood flooring, veneers, plywood, and kiln-dried hardwood dimension. 

Administrative agency (Art. III) .-The California Redwood Association i de - ignated as the agency of the Authority for the administration of the Code in this 

Divi ion. Said Association, through its Board of Directors, is anthorize<l to 

make rule and regulations neces ary to administer the Code in thi Di,·i ion 

and shall designate such agencies as may be required for thi purpo~e. 
42 

13. ORTHEA TERN OFTW D DI I. IO"l' 

Divi ion ( rt. II c).-The rth a tern ftwood Divi ion on i ts of producers 

and manufactur r of lumber and timb r product of h mlock, pruc , whit 

pine, nnd oth r ftwood in the c England tat , _ w ork, P nn ylvania, 

cw J r y and We t irgm1a. 

Product (. rt. II a).- 11 lumb r and timb r pr duct numerat d e-..;:c pt 

pol and piling, planino--mill product , woodw rk, hardwood flooring, v neer , plyw d, and kiln-dri d hardw od dimen ion. 

Adminiscrative Agency (Ar . III).-The orth a tern Lumb r Manufactur r 

A ciation i de ignated as the agency of the uthority for the admini tration 

of the od in thi Divi ion. Saicl As ociation through it Board of Dir ctor , i authorized to make rules and regulations nece ary to a<lminister the Code in 

thi Divi. ion and , hall designate and aut,hori z nch ag nci , a may be required 

for thi purpo. e. 

14. SOUTHERN PINE DIVISION 

Division (Art. II c) .-The Southern Pine Divi ion con ists of producers and 

manufacturer of lumber and timber products of the various species of outhern 

Pine, in the States of Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, 

Loui iana, Maryland, Mississippi, Mis. ouri, _ orth Carolina, Oklahoma, outh 

Carolina, Tennessee, Texa , Virginia, and West Virginia. 

Prod11cls (Art. IT a).-Sout.hern Pine logs, pole and piling, a,yn lumh r, and 

pro<lucts of planing mill operated in conjunction with awmills, , hingl , lath, 

boxes, and crates. 

Administrative Agency (Art. III).-The Southern Pine As ociation L de ignated 

as the agency of the Authority for the administration of the Code in thi Divi ion. 

Said Association, through its Board of Director., is authorized to make rules 

and regulations necessary to administer the Code in this Division and hall 

designate and authorize such agencies as may be required for thi. purpose. 

15. $ouTHERN ROTARY CuT LUMBER SuBn1v1srox 

Subdivision (Art. II c) .-The Southern Rotary Cut Lum her SubdivLion consi. ts of manufacturer, of pack~ge and box grades of rotary-cut lumber in the 

States of orth Carolina, South Carolina, Georgia, Florida, Alabama, Mi ·si · ippi, 

Louisiana, Tennessee, Arkansas, and Texas. 

Products (Art. II a) .-All lumbP-r manufactured on rotary lathe for ca,e , crates, and fruit and vegetable packages, whether for sale to the manufacturers 

of these products1 or for use by the rotary-cut lumber producer himself in the 

manufacture of such products, or for sale in the open market or to package manufacturers in competition with those who produce olely package grades of rotarycut lumber. 

Administrative Agency (Art. III) .-The Southern Rotary Cut Lumber A ociation is designated as the agency of the Authority for the admini tration of the 

Code in this Subdivision. Said As ociat.ion, through iti,; Executive Committee, i. authorized to make rules and regulation!'; necessary to admini ter the Code in thi. 

Subdivi ion, and shall designate and authorize uch agcncie. a may be required 

for this purpose. 

16. WEST COAST LOGGING A D LUMBJrn DIVISION 

Division (Art. II c).-The West Coast Loggiug and Lumber Division consists 

of producers and manufacturers of lumber and timber products of Dougla Fir, 

Vv'e t Coast Hemlock, Sitka 8pruce, Western Red Cedar, and related sperie in 

Western Ore;gon, ,vestern Washington, and Ala ka. 

Products (Art. II a) .-All lumber and timber produ t Pnumerat d except: 

shingles, woodwork, veneers, ply,.vood, hardwood flooring, and kiln-dried hardwood 

dimen ion. 

A.dm1:nistrative Agencies (Art. III) .-The v_r t oa t Lumbermen' ociation 

and the Pacific .l orthwe t Loggers Association are de ignated a the agen ie of 

the Authoritv for the admini tration of the Code in thi Divi ion. 'aid A so iation, , th rough their r spec ti ve Doa rd of Tru te , ar au thoriz d to mak rul s 

and regulation neces ary to admini ter th od in thi DiYi ion and hal1 

cle igrrnte and authorize such ag nci a, rnav he r quir d for thi. pmpo. . 
17. DOUGLAS FIR PLYWOOD SUBDIVISION 

Subdivision (Art. II c) .-The Douglas Fir Plywood Subdivision consists of 

manufactures of Douglas Fir Veneers and plywood in the States of Oregon and 

Washington. 

Products (Art. II a) .-The following products only shall be under the jurisdiction of this Subdivision, viz: veneers; plywood. 

Administrative agencies (Art. III) .-The Douglas Fir Plywood Manufacturers 

Association, a Branch of the West Coast Lumbermen's Association, is designated 

as the agency of the Authority for the administration of the Code in this Subdivision, under the supervision of the West Coast Lumbermen's Association as 

to maximum hours of larbor, minimum rates of pay, the payment of Code fees 

and submission of Code reports, and any questions of correlation and adjustment 

with other industries included in the West Coast Logging and Lumber Division. 

Subject to such supervision, the said Association, through its Executive Committee, is authorized to make rules and regulations necessary to administer the 

Code in this Subdivision and shall designate and authorize such agencies as may 

be required for this purpose. 

18. DOUGLAS FIR DOOR SUBDIVISION 

Subdivision (Art. II c) .-The Douglas Fir Door Subdivision consists of manufactures of Douglas Fir stock doors i.n the States of Oregon and Washington. 

Products (Art. II a) .-The following products only shall be under the jurisdiction of this Subdivision, viz: Douglas Fir stock doors. 

Administr.ative Agencies (Art. III) .-The Douglas Fir Door Manufacturers 

Association, a branch of the West Coast Lumbermen's Association, is designated 

as the agency of the Authority for the administration of the Code in this Subdivision, under the supervision of the West Coast Lumbermen's Association as 

to maximum hours of labor, minimum rates of pay, the payment of Code fees 

and submission of Code Reports, and any questions of correlation and adjustment with other industries included in the West Coast Logging and Lumber 

Industry Division. Subject to such supervision, the said Association, through 

its Executive Committee, is authorized to make rules and regulations necessary 

to administer the Code in this Subdivision and shall designate and authorize 

such agencies as may be required for this purpose. 

19. WESTERN PINE DIVISION 

Division (Art. II c).-The Western Pine Division consists of producers and 

manufacturers of lumber and timber products of western pines and intermingled 

species in the States of Arizona, California (excepting certain counties which are 

included in the Redwood Division), Colorado, Idaho, Montana, Oregon (excepting certain counties which are included in the West Coast Logging and Lumber 

Di vision), New Mexico, South Dakota, Utah, Washington ( excepting certain 

counties which are included in the West Coast Logging and Lumber Division), 

and Wyo ming. 

Products (Art. II a) .-All lumber and timber products enumerated except 

poles and piling, products of planing mills not operated in conjunction with 

sawmills, shingles, woodwork (mill work), hardwood flooring, veneers, plywood, 

and kiln-dried hardwood dimension. 

Administrative Agency (Art. III) .-The Western Pine Association is designated 

as the agency of the Authority for the administration of the Code in this Division. 

Said Association, through its Board of Directors, is authorized to make rules 

and regulations necessary to administer the Code in this Division, and shall 

designate and authorize such agencies as may be required for this purpose. 

20. WOODWORK DIVISION 

Division (Art. II c) .-(a) The Woodwork Division consists of manufacturers 

whose predominant products are doors, windows, screens, frames, and interior 

trim, which products are similar to and in competition with the products of 

planing mills and sash and door and millwork factories operated in conjunction 

with sawmills; manufacturers whose predominant products are furniture, fixtures, 

refrigerators, automobile bodies, or ecclesiastical furniture or whose predominant 

business is the manufacturing, finishing, and installing in the building of cabinetwork are not included. 
44 

(I) Thr \ nodw rk Di\'i i n i. di\'idcrl f r juri clicii nal and aclmi11i:trative 

purpos -.· into 'ubdi\'i ion a f 11 w : .·•t ck :i\1anufactur r ubdivision. 

\ h I al r Di tributor Subdi i ion. 

peciaJ \ o d, rk ubdivi ion. 

(c) Th t rritory and per on sul j ct t th 

did i n hall b defined by th auencv f th 

ther ubdivi ions mav b establi hed bv th 

approYal of the uth r'ity. · 

j urisdi tion of th ev ral ub• 

Dh·i i n h reinafter de ignat d. u ncy of th Divi ion with the 

(d) Each f the ubdivision hereinabove named and any ubdivi. ion here- after e ·tabli hed under authority of the de ignated agency f the Divi ion may, ubject to the approval of aid agency, de ignate an agency for the admini tra- tion f the Code in such Subdivi ion. Each ubdivi i n hall be independent 

and elf-governing in re pect of all conditions and pr blems relating to the aid 

ubdivi ion exclu ively. Propo al in re pect of matters affecting more than 

one ubdivi i n may be initiated by any Subdivi ion and hall be ubmitted to 

and decided b the designated agency of the Division. The designated agency 

of the Division shall reserve the power and duty to enforce the pr vi ion of the 

Code and the rules and regulations of the Authority and of this Division, includ- ing rules of fair trade practice. 

(e) Each ubdivi ion hereinabove named and each Subdivision hereafter e tab- li hed as hereinabove provided hall have the power and authority to e iabli h 

"ithin the ubdivision groups of manufacturers or di tributors who e condition 

and problem are similar, and may authorize each of said group o e tabli hed 

to designate with the approval of the designated agency of the ubdivi i n it 

own administrative agency and may confer upon the administrative agency f 

any such group such powers and authoritie a it may deem nece ary in order 

to admini ter this Code within said group. 

Products (Art. II a) .-Woodn·ork (mill work) including products of planing 

mills operated in conjunction with retail lumberyards, and excepting Dougl:1. fir 

stock doors. 

Administrative Agency (Art. III).- The Emergency National Committee of the 

Woodwork Division, consisting of the Board of Directors of the ational W dwork As ociation, is designated as the agency of the Authority for the admin- i tration of the Code in this Division. aid Committee is authorized t make 

rules and regulations necessary to administer the Code in thi Divi ion and hall 

designate and authorize such agencies as may be required for this purpo, 

21. STOCK MANUFACTURERS SuBDIVI ION 

Subdivision ( rt. II c) .-The Stock Manufacturers Subdivi ion con ist of 

manufacturers of products listed below: 

Products (Art. II a) .-Stock or tandard doors, windows, creen , frame , trim, and miscellaneou millwork. 

Adminislt'ative Agency (Art. III) .-The Stock ianufacturer 'o rdinating 

Committee, to be compo. ed of fiye per ons elected jointly by rational D or 

l\Ianufacturers Association and T ational Screen . sociation, i de.·iunated a 

the agency of the Authority and of the Emergency ational Committ e of the 

,Yood~·ork Divi ion for the admini tration of the od in thi ubdivi ion. 

aid committee i authorized to make rules and r gulation nece.' ·ary to admini ter the ode in thi Subdivi ion and shall de ignate and authoriz uch ag ncie 

a ~may be required for thi purpose. 

22. WHOLE ALE DISTRIBUTORS , UBDIVI, IO 

ubdivision (Art. II c) .-The Whole ale Di tributor ubdivi ·ion con i t of 

whole. al di. tributor of product li. tecl below: 

Products (.\.rt. II a) .-Door , window , . creen., fram ·, trim, and mi cellaneou 

woodwork. 

Adrnfoi.·trati1 1e ,·1gency (.\.rt. III) .-The Whole::;ale ash and D or A._ ociat ion, 

Chicago, Illinois, i: de. iguated a · the agent of the uth rity and of the Em rg ncy 

aiional 'onnnitt of the vYoodw rk ivision for th admini ·tration of ihe 

ode in thi ·· , 'nbdivi ion. , aid A .. ociation i auth riz cl t make rules ancl regu- lations necc. :ary to a mini -ter the ode in thi · ubclivision and slrnll dc. ·i rnate 

and a11thorize uch agcncie a may be rec1uired for thi' J urpo.- . 
45 

23. SPECIAL WOODWORK SUBDIVISION 

Subdivision (Art. II c) .-The Special Woodwork Subdivision consists of manufacturers of products listed below: 

Products (Art. II a) .-Made-to-order or special woodwork. 

Administrative Agency (Art. III) .-A committee to be selected jointly by Millwork Cost Bureau of Chicago, Illinois; Eastern Millwork Bureau of New York 

City, New York; and Southern Woodwork Association of Knoxville, Tenne see, 

to be known as the Coordinating Committee of the Special Woodwork Subdivision, is designated as the agent of the Authority and of the Emergency 

National Committee of the Woodwork Division for the administration of the 

Code in this Subdivision. The said Committee is authorized to make rules and 

regulations necessary to administer the Code in this Subdivision and shall designate and authorize such agencies as may be required for this purpose. 

24. WOODEN p ACKAGE DIVISION 

Division (Art. II (c)) and Products (Art. II (a)).-The Wooden Package Division consists of manufacturers of wooden shooks, boxes, crates, baskets, hampers, 

and other packages or parts thereof, whether made of sawed lumber, veneer, or 

plywood, either knocked down or put together with nails, wire, or glue, with or 

without iron or wire reinforcement, together with trays and other products 

commonly made in box factorie . Administrative Agency (Art. III).-The National Federation of Wooden Package Associations, a coordinating agency of the Wooden Package Industry Associations, is designated as the agency of the Authority for the administration of 

the Code in this Division. Said National Federation, through its Board of 

Directors (being the Coordinating Committee of the Wooden Package Industry), is authorized to make rules and regulations necessary to administer the Code in 

this Division, and shall designate and authorize such agencies as may be required 

for this purpose. 

(a) For the more effective administration and enforcement of the Code in this 

Division, Subdivisions shall be established as may be necessary to meet the 

requirements of the various groups and classifications of manufacturers included 

therein. 

(b) The follo'11ing Subdivisions are hereby established: 

A. Sawed Box, Shook, Crate, and Tray Subdivision. 

B. Plywood Package Subdivision. 

C. Standard Container Subdivision. 

D. Pacific Veneer Packages Subdivision. 

E. Egg Case Subdivision. 

F. Wirebound Box Subdivision. 

G. Veneer Fruit and Vegetable Package Subdivision. 

(c) Additional Subdivisions of this Division may be established by said 

Coordinating Committee with the approval of the Authority. 

(d) The said Coordinating Committee shall, with the approval of the Authority, 

designate the administrative agency under the Code in each of the foregoing 

Subdivisions and in such additional Subdivisions as may hereafter be established; 

and shall authorize the designated agency in each Subdivision to make such rules 

and regulations and to designate such further agencies as may be required for 

the administration of the Code therein. Each Subdivision shall be independent 

and self-governing in respect of all matters and problems relating to the said 

Subdivision exclusively, under the general direction of the said Coordinating 

Committee. Proposals in respect of matters affecting more than one Subdivision 

may be initiated by any such Subdivision and shall be submitted for consideration 

to the said Coordinating Committee. The designated agency of the Division 

shall reserve the power and duty to enforce the provisions of the Code and the 

rules and regulations of the Authority and of this Division, including rules of 

fair trade practice. 

(e) Subdivision hereinabove named, and each Subdivision hereafter established 

as hereinabove provided, shall have power and authority to establish within the 

Subdivision groups of manufacturers whose conditions and problems are similar, 

and may authorize en.ch of said groups so established to designate with theapproYal 

of the designated agency of the Subdivision its own administrative agency and 

may confer upon the administrative agency of any such group such powers and 

authorities as it may deem necessary in order to administer this Code within 

said group. 
46 

25. AWED-Box, HOOK, CRATE A D TRAY UBDIVI IO 

ubdivi ion (Art. II c) and Product (Art. II a) .-The awed-Box, hook, Crate 

and Tray ubdivi ion of the Wooden Package Divi ion c n i ts of manufacturer , ale ag ncie , di tributors, and the agents or repre entative thereof, f awed 

wooden boxe , hook , crate and tray , whether such containers be in shook or 

in made-up form, including complete boxe , crates and trays, a well as any porti n thereof. 

Administrative Agency (Art. III).-The ational Wooden Box Association, 

through it Board of Governors as its Coordinating Committee, is de ignated a 

the agency of the Authority and of the Coordinating Committee of the Wooden 

Package Division for the administration of the Code in thi ubdivision. Said 

As ociation, through its Coordinating Committee, i authorized to make rules 

and regulations neces ary to administer the Code in this Subdivi ion, and shall 

designate and authorize such agencies as may be required for this purpose. 

26. PLYWOOD PACKAGE SUBDIVISION 

ubdivision (Art. II c) and Products (Art. II a) .-The Plywood Package 

Subdivision consist of manufacturers of plywood packages or containers and of 

flat ply,Yood for package or container purposes located in any part of the United 

States. 

Administrative Agency (Art. III) .-The Plywood Package Institute is designated as the agency of the Authority and of the Coordinating Committee of the 

Wooden Package Division for the administration of the Code in this Subdivision. 

Said Institute, through its Executive Committee, is authorized to make rules 

and regulations necessary to administer the Code in this Subdivision, and shall 

designate and authorize such agencies as may be required for this purpose. 

27. STANDARD CONTAINER SUBDIVISION 

Subdivision (Art. II c) and Products (Art. II a) .-The Southeastern Veneer 

Container Subdivision of the Wooden Package Division consists of manufacturers of veneer fruit and vegetable containers and/or container material in the 

States of Florida, Georgia, and Alabama. 

Administrative Agency (Art. III) .-The Standard Container Manufacturers 

Association is designated as the agency of the Authority and of the Coordinating 

Committee of the Wooden Package Division for the administration of the Code 

in this Subdivision. Such Association, through its Board of Directors, is authorized to make rules and regulations necessary to administer the Code in this 

Subdivision, and shall designate and authorize such agencies as may be required 

for this purpose. 

28. PACIFIC VENEER PAO;KAGE SUBDIVISION 

Subdivision (Art. II c) and Products (Art. II a).-The Pacific Veneer Package 

Subdivision of the Wooden Package Division consists of manufacturers of veneer 

fruit and vegetable containers and package, and parts thereof, in the states of the 

Pacific Slope. 

Administrative Agency (Art. III).-The Pacific Veneer Package Association is 

designated as the agency of the Authority and of the Coordinating Committee 

of the Wooden Package Division for the administration of the Code in this Subdivision. Such Association, through its Board of Directors, is authorized to 

make rules and regulations necessary to administer the Code in this Subdivision 

and shall designate and authorize such agencies as may be required for this purpose. 

29. EGG CASE SUBDIVISION 

Subdivision (Art. II c) and Products (Art. II a).-The Egg Case ubdivi ion 

consist of manufacturers of egg cases or parts thereof of cottonwood, tupelo, 

gum, and other hardwoods. 

Administrative agency (Art. III).-The Egg Case Manufacturers Exchange is 

designated as the agency of the Authority and of the Coordinating Committee 

of the Wooden Package Division for the admini tration of the Code in thi ubdivi ion. aid Exchange, through it Executive Committee, is authorized to 

make rules and regulations nece sary to admini ter the Code in this ubdivi ion, 

and shall de ignate and authorize uch agencies as may be required for this 

purpo e. 
47 

30. WIREBOUND Box SUBDIVISION 

Subdivision (Art. II c) and Products (Art. II a) .-The Wire bound Box Subdivision of the Wooden Package Division consists of manufacturers of wirebound 

boxes and crates in the United States. 

Administrative Agency (Art. III) .-The Wire bound Box Manufacturers Association is designated as the agency of the Authority and of the Coordinating 

Committee of the Wooden Package Division for the administration of the Code 

in this Subdivision. Said Association, through its Board of Governors, is authorized to make rules and regulations necessary to administer the Code in this Subdivision and shall designate and authorize such agencies as may be required for 

this purpose. 

30a. VENEER, FRUIT AND VEGETABLE PAc KAGE DIVISION 

Division (Art. II c) and Products (Art. II a).-The Veneer Fruit and Vegetable 

Package Subdivision consists of manufacturers of wooden boxes, crates, shooks, 

baskets, hampers, trays, and all kinds of wooden veneer packages used in the 

marketing of fresh and perishable fruits and vegetables not included in other 

subdivisions of the Wooden Package Division of this Code. 

Administrative Agency (Art. III) .-The American Veneer Package Association 

is designated as the agency of the Authority and of the Coordinating Committee 

of the Wooden Package Division for the administration of the Code in this Subdivision. Said Association, through its Board of Directors, is authorized to make 

rules and regulations necessary to administer the Code in this Subdivision, and 

shall designate and authorize such agencies as may be required for this purpose. 

31. RED CEDAR SHINGLE DIVISION 

Division (Art. II c) .-The Red Cedar Shingle Division consists of producers 

and manufacturers of Western Red Cedar shingles in Washington and Oregon. 

Products (Art. II a) .-The following products only shall be under the jurisdiction of this Division, viz: Shingles. Administrative Agency (Art. III) .-The Washington and Oregon Shingle 

Association is designated as the agency of the Authority for the administration 

of the Code in this Division. Said Association, through its Board of Trustees, is 

authorized to make rules and regulations necessary to administer the Code in 

this Division and shall designate and authorize such agencies as may be required 

for this purpose. 

32. STAINED SHINGLE SUBDIVISION 

Subdivision (Art. II c).-The Stained Shingle Subdivision consists of persons 

processing, staining, and treating wood shingles in the United States. 

Products (Art. II a) .-The following products only shall be under the jurisdiction of this Subdivision, viz: Shingles (Stained, processed, or treated). 

Administrative Agency (Art. III) .-The National Stained Shingle Association 

is designated as the agency of the Authority for the administration of the Code in 

this Subdivision. The said Association, through its Board of Directors, is authorized to make rules and regulations necessary to administer the Code in this Subdivision and shall designate and authorize such agencies as may be required for 

this purpose. · 

33. OAK FLOORING DIVISION 

Division (Art. II c) .-The Oak Flooring Division consists of producers, manufacturers, and distributors of oak flooring throughout the United States. 

Products (Art. II a) .-All standard items of oak flooring as set forth in the 

Grading Rules and Specifications of the National Oak Flooring Manufacturers 

Association. 

Administrative Agency (Art. III) .-The National Oak Flooring Manufacturers 

Association is designated as the agency of the Authority for the administration of 

the Code in this Division. Said Association, through its Board of Directors, is 

authorized to make rules and regulations necessary to administer the Code of this 

Division and shall designate and authorize such agencies as may be required for 

this purpose. 

34. THE VENEER DIVISION 

Division (Art. II c) .-The Veneer Di vision consists of producers, manufacturers, importers, and distributors of veneers throughout the United States. 
4 

Products (Art. II a) .-All v n er r gardl s of species and origin except: 

Dougla Fir, Western Cedars, Spruce, W stern a1-1d outhern Pines, Hemlock, and 

such hardwood veneers as are manufactured exclusively for crates and other 

containers. 

Administrative Agency (Art. III) .-The Veneer Association is designated as the 

agency of the Authority for the administration of the Code in this Division. 

aid A sociation, through its Board of Dir ctors, is authorized to make rules and 

regulations necessary to administer the Code in this Division and shall designate 

and auth0rize such agencies as may be required for this purpose. 

35. MAPLE, BEECH, AND BIRCH FLOOR! G DIVISION 

Division (Art. II c) .-This Division consists of manufacturers of maple, beech, 

and birch flooring throughout the nited State . Products (Art. II a) .-Hard mapl , beech, and birch flooring. 

Administrative Agency (Art. III) .-The Maple Flooring Manufacturer Association is designated as the agency of the Authority for the administration of 

the Code in this Division, Said Association, through an Executive Committee 

con isting of its President, Vice President, t,vo members appointed by the manufacturers in the northern states and one member appointed by the manufacturers in the Southern States, is authorized to make sales and regulations necessary 

to administer the Code in this Division, and shall designate and authorize such 

agencies as may be required for this purpose. 

36. HARDWOOD DIMENSION DIVISION 

Division (Art. II c) .-The Hardwood Dimension Division con ists of manufacturers of kiln-dried hard" ood dimension stock in three distinct ections as 

follovr : Southeastern-North Carolina, South Carolina, Florida, Georgia, and 

eastern Tennessee; Central-Kentucky and Western Tennessee; SouthwesternMissouri, Arkansas, Louisiana, Mississippi, and Texas. Products (Art. II a).-Kiln-dried hardwood dimension only. 

Administrative Agency (Art. III) .-The Hardwood Dimension Manufacturers 

Association is designated as the agency of the Authority for the administration 

of the Code in this division. This association authorized its Executive Committee to make rules and regulations necessary to administer the Code in this 

division. 

SCHEDULE B 

RuLES OF FAIR TRADE PRACTICE FOR THE LUMBER AND Tn.rn1,,R PnonucTs 

INDU TRIES 

SECTION 1. Definit1·ons.-(a) A manufacturer is a person who operate a mill 

converting logs or lumher into lumber and/or timber products. 

(b) The term "saleR company" u ed in this Code i. a company organized or 

owned by m;;i.nufacturers to sell th()ir ovm or other manufacturers' lumber through 

salaried salesmen, wholesalers, or romruission men. 

(c) A wholesaler is a person actively and continuously engn,ged in buyino-, a - semhling, or rehandling lumber and timber products froni nianufactur r or other 

wholesaler. in quantity lots and selling it principally to wholesal rs, r tailer., 

and recognh;ed wholeRale trade, w!10 maintains a sale organization for this purpose, a sumes credit risks and such other obligation as are in id •nt to the 

tran. portation and di tribution of lumb r and timl er product. . \Yholl'sale 

As embling :md Distributing Yards n,. defined in Divisionnl Rules and Regulations l1all als be clas ·ed as wholesalers. 

(d) A commission man i a person lorat d in the territor:v which lH' n·es 

who r gularly sells in whole ale qu::intiti s for manufacturer:::; or whole.:alcr~ to 

recogniz d wholesale trade and who i paid a tipulated amount, (k11own as a 

cornmi ion) on each in<liYidual sal an<l hold a r lation to the , 11 r similar to 

that of a, alaril'd ale,·rnnn. 

(e) A rPiailrr is one "110 maintain adf" iuat and p rmanent torag and 

handling facilities, a al s organization fo · t.h · consum r trade and ·arrie. a well 

a sorted . tock adapted to the normal n d of the con, um rs in hi. al territory. 

(f) 1 nd ,,strial.-Th t rm "indu tri· l '' a · u eel in th s Rule. include· "oo<l 

fabricators, box and crn.ting manufacturer· and ti.. r., and n er. f lumlwr and 

tin1ber products in part or a11 of th ir manufacturing and .hi1 ping JJr CPs,·c.·. 

fg) An xporter i a 111anufarturer or i:.al rornpan. · or \Yholc.aler "'iih d finite 

fo1eign conncc:tion or stablish ·d a~enciC's, maintainiug a pern1an nt oflice iu 
49 

the U.S.A., continuously selling and shipping lumber and timber products to 

foreign countries (Canada and Mexi<'o excepted) in substantial quantities. 

(h) An importer is a person of any nationality who brings goods, or causes 

.them to be brought, into the United States from any foreign country, whether 

in bond or not, and whether he is already the owner of the goods before they 

arrive or purchases them on delivered terms. 

SEc. 2. Wholesalers.-The lumber wholesaler is an economic factor in the 

distribution of lumber and it is recognized that he is entitled to compensation 

for his distribution services. 

(a) Each Division, and each Subdivision, through its designated agency, shall 

establish for its members and file with the Authority a schedule of maximum 

discounts to be allowed to wholesalers for distribution services. Said discounts 

when approved by the Authority shall remain in effect until changes are approved 

by it. 

(b) As a condition of the grant of wholesale discounts, the wholesaler shall not 

rebate or allow any part of said discount to any customer, or sell or offer to sell 

any item of lumber or timber products under the minimum prices established as 

provided in this Code, except'to another wholesaler or manufacturer; and he shall 

conform to all provisions of this Code, as they apply to him in the sale and 

distribution of each species. 

SEc. 3. Commission men.-The lumber commission man, as an agent of the 

seller, is entitled to compensation (commission) for his distribution services. 

(a) Each Division, and each Subdivision, through its designated agency, shall 

establish for its members and file with the Authority a schedule of maximum 

commissions to be paid to commission men for distribution services. Said commissions when approved by the Authority shall remain in effect until changes 

are approved by it. 

(b) As a condition of the payment to him of commissions, the commission man 

shall not split commissions with any customer nor shall he sell or offer to sell any 

item of lumber and timber products under the minimum prices established as 

provided in this Code, and he shall conform to all provisions of this Code as they 

apply to him in the sale and distribution of each species. 

(c) No manufacturer or wholesaler shall be permitted to have more than one 

commission representative for each species calling on the same trade in the same 

territory. 

SEc. 4. (a) Buyers' agents who act for the purchaser shall not be entitled to 

any discounts or allowances on any lumber or timber products sold to their 

customer stockholders, owners, partners, or parties otherwise interested. 

(b) No manufacturer shall give discounts to others than wholesalers or greate:r 

in amount than those established and filed in accordance with Section 3 (b) of 

these Rules, or commissions to others than commission men or greater than 

those established or filed in accordance with Section 4 (b) of these Rules, and no 

manufacturer shall give allowances of any character otherwise than in accordance with standard terms of sale as set forth in Section 5 of these Rules. 

(c) Direct intermanufacturer purchases or exchanges of stock, between mills 

of the same Division, for the filling of orders sold on a wholesale basis, shall not 

be considered as coming under the provisions of this Code as regards minimum 

prices. 

(d) Contractual relations between a manufacturer and his sales company, 

acting as sales agent or outlet at cost, shall not come under the provisions of 

this Code as to wholesale allowances or commissions, but the sales of any such 

sales company however made shall be in accordance with all provisions of this 

Code. 

SEC. 5. Sales, Orders, and Invoices.-(a) Except for water shipment, where 

the credit risk is satisfactory to the seller, lumber, and timber products sold by 

manufacturers and wholesalers shall not be more liberal to the buyer than as 

follows: 

(1) To retailers-60 days net from date of invoice, or a cash discount of 2% 

of the net amount after deducting actual freight if paid within 5 days after 

arrival of car. 

(2) To wholesalers-SO% of the net amount after deducting estimated freight 

within 15 days from date of invoice, balance less 2% of total net after deducting 

actual freight within 60 days from date of invoice. 

(3) To industrials and buyers not otherwise classified-60 days net from date 

of invoice or a cash discount of 2 % of the net amount after deducting freight if 

paid within 10 days after arrival of car. 

(4) Prepaid freight shall be net and subject to sight draft, or to payment upon receipt of invoice. 
50 

(b) o lumber and timber products on which m1mmum prices have been 

establi bed under this Code shall be sold for less than the aid established prices, 

except when old to wholesalers under provi ions of Section 2. (c) o lumber or timber products shall be sold with any guarantee against 

decline in price before or after delivery. 

(ct) Except for water hipment, manufacturer and whnlf', alers shall not make 

contracts with retailer .. and/or wholesaleri:- for futur shipment to retailer at current prices for shipment over a longer pE>riod than 30 days from date of order. 

Except as specifically authorized by the DiviRion or uh-Division Authority, 

manufacturers and wholesalers shall not make contracts with industrials and/or 

wholesalers for Rhipments to industrials at current prict's for a longer period than 

three months from date of order, except when aid contracts contain a provision 

for a price adju tment to he effective for each ucceeding ninety-day period, 

which revised prices shall be not less than thee tablished minimum prices at the 

time of each adjustment. The foregoing restrictions shall not apply to lumber or 

timber products sold for a specific construction job on a cont,ract not ubject to 

cancellation. Complete specifications covering all orders for rail or wnter shipme11ts shall be furnished to t~e seller within tf'n days from date of order. 

(e) In figuring delivered prices for rail shipment, by adding freight charges to 

mill prices, the seller shall use the established schedule of weights for the species 

sold. 

(f) Prices shown on order and invoice shall not include any manufacturer's 

s::i.les, excise, privilege, or other tax, freight surcharge or charge imposed upon or 

incident to aid transact-ion, or by reason thereof, by any governmental authority 

either by present- or future enactment, and no snch tax, surcharge or charge . hall 

be deductible from invoice by buyer in making remittance to either manufacturer or wholesaler. 

(g) All quotations shall include a definite limit of time for acceptance, but in 

no case shall quotations be for a period longer than 15 days from date of quotation, 

except cm special construction projects. not to exceed 60 days. 

(h) No manufacturer or wholesaler shall make a carload sale that requires 

invoicing and delivery to more than three retailers or more than one stop-over at 

origin and one stop-over at destination. Pool car sales of Jess than J 0,000 feet 

to any one constomer shall be subject to such service charge as may be established 

by each of the several Divisions. Stop-over charges, if any, shall be paid by the 

buyer or buyers in addition to the invoice price. 

(i) Orders and invoices shall show terms of sales, association grade, species, 

quantities, sizes, and price of each item for agreed delivery. In respect to lumber 

and timber products not of American Lumber Standard . ize and/or a sociation 

gra<le both order and invoice shall show the nominal and finished sizes and the 

grade sold by reference to some ·non-association specification on file with the 

Division, or completely i:;tating the specifications. Orders and invoices hall state 

whether the stock is green, air dried, or kiln dried. 

(j) Neither manufacturers nor wholesalers shall place stock in transit via rail. 

either manufacturers nor wholesalers (except such wholesalers as have acquired 

full and unconditional title to the stock prior to shipment) shall place unsold stock 

in transit via water. Neither manufacturers nor wholesalers shall place tock on 

consignment. 

(k) In respect of lumber special nonstandard sizes and grades may be manufactured and sold under special contract, but grade, size, both rough and dre sed, 

and price must be detailed in both order and invoice. The manufacture, purcha e and/or sale of nonstandard sizes, grades, and classification of lumber and 

timber products for the purposes of evading any of the provisions of this Code is 

hereby prohibited. 

E . 6. Grading and I nspection.-(a) In the absence of an express sales agreement all lumber and timber products shall be manufactured and graded in accordance with official published manufacturer a sociation grading and inspection 

rule applicable ther to. In the ab ence of an xpre s ales agr ement, trade 

term , definition , and all other terms, word or phra c , and regulations relating 

to the manufactur , ale, invoicing, and shipment of lumber are under tood to be 

interpreted and applied in accordance with the applicabl provision of the official 

manufacturer a ociation grading rule in effect at the time of sal . (b) Manufacturer and , holesalers hall no alter grade by taking out either 

the poorest or the best material or by adding lower or higher grade material for the 

purpo e of evading the provi ions of the Code. 

(c) If lumber i grade marked or species marked only the standard manufacturers a ociation grade marks and specie mark wherever e tablished shall be 

u ed . 
51 

(d) Manufacturers and wholesalers shall not misbrand or invoice falsely any 

lumber as to quantity, size, grade, origin, species, or condition of dryness. 

(e) Official inspection, when required by either buyer or seller, shall be made 

only by an official inspector of the manufacturers association issuing the official 

grading rules for the species to be inspected, applying the rules agreed to at the 

time of sale, or, in the event of no such agreement, the official manufacturers 

association grading rules and regulations under which the lumber or timber 

products are commonly bought and sold. 

(f) Except for water shipment, as certification of quantity and grade of lumber 

and timber products shipped, an official manufacturers association car card 

(shippers certificate) shall be placed in each car shipped; such certificate shall not 

disclose the name of the originating manufacturer but shall carry such marks or 

number as will enable the Division or Subdivision to trace the shipment. For 

shipments requiring official inspection at point of origin the official certification 

of the manufacturers association inspection agencies shall be furnished. 

(g) All lumber and timber products either rough or dressed manufactured to 

sizes below American Lumber Standards and/or manufacturers association standards sold on standard nominal size shall be branded "sub-standard" and such 

brand shall not be obliterated or removed. 

SEC. 7. Arbitration.-Any dispute between parties coming within the provisions 

of this Code involving $50.00 or more and arising out of transactions in respect to 

the sale of lumber and timber products, except as to grade or tally, may be 

referred to an arbitration committee. For this purpose the disputants agreeing 

to arbitration shall sign an arbitration agreement approved by the Authority for 

which application may be made to any Division. In the event of the failure of 

the disputants to agree as to the arbitration agency the Authority may designate 

an agency to conduct the arbitration. The findings and award of said arbitration 

through said agency shall be final and binding upon both parties. 

SEc. 8. Policing.-The authority shall establish such agencies generally distributed through the United States as it may deem necessary to provide for such 

prompt relaxation of these rules and/or interpretation thereof as may be necessary 

to prevent these rules from promoting monopolies or eliminating or oppressing 

small enterprises or operating to discriminate against them, and shall invest 

such agencies with all power and authority necessary or appropriate to secure 

prompt decision of such questions. 

SEc. 9. Export Business.-These rules shall not apply to export business which 

shall be subject to the supplemental Rules of Fair Trade Practice of each 

Division or Subdivision. 

0 
UNIVERSITY OF FLORIDA 

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