Approved Code No. 308 — Supplement No. 11 Registry No. 908—01 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE SPONGE PREPARING AND WHOLESALING OR WHOLESALING INDUSTRY (A Division of the Fishery Industry) AS APPROVED ON APRIL 27, 1935 WE DO OUR PART UNIV. OF FL LH. UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1935 For sale by the Superintendent of Documents, Washington, D. C. Price 5 cents This publication ih for sale by The yuperintendeiit of Documents, Government Printing Office, Washington, D. C, and by the following N. R. A. offices: Atlanta, Ga. : 625 Citizens & Southern National Bank Building. Baltimore, Md. : 380 Customhouse. Birmingham, Ala. : 201 Libe^rty National Life Building. Boston, Mass.: Room 1200. 80 Federal Street. Buffalo, N. y. : 219 White Building. Chicago, 111. : Room 204, 400 North Michigan Avenue. Cleveland, Ohio: r)20 Bulkley Building. Dallas, Tex. : 1212 Republic Bank Buildiug. Detroit, Mich. : 415 New Federal Buildiug. Houston, Tex. : 403 Milam Building. Jacksonville, Fla. : 425 Uniteil States Courthouse and Post Office Building. Los Angeles, Calif. : 751 Figueroa Street, South. Louisville, Ky. : 408 Federal Building. Minneapolis, Minn. : 900 Roanoke Building. Nashville, Tenn. : 415 Cotton States Building. Newark, N. J. : 434 Indust;-ial Office Building, 1060 Broad Street New Orleans, La.: 214 Customhouse. New York, N. Y. : 45 Broadway. Oklahoma City, Okla. : 427 Commerce Exchange Building. Philadelphia, Pa. : 933 Commercial Trust Building. Pittsburgh, Pa. : 401 Law and Finance Building. Portland, Oreg. : 407 Park Building. Providence, R. I. : National Exchange Bank Building, 17 Exchange Street. St. Louis, Mo. : Suite 1220, 506 Olive Street. San Francisco, Calif. : Huml)olt I'.ank Building, 785 Market Street Seattle, Wash. : 1730 Exchange Building. Approved Code No. 308 — Supplement No. 11 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE SPONGE PREPARING AND WHOLESALING OR WHOLESALING INDUSTRY As Approved on April 27, 1935 ORDER Approving Supplementary Code of Fair Competition for the Sponge Preparing and Wholesaling or Wholesaling Industry A division of the fishery industry An application having been duly made pursuant to and in full compliance with the provisions of Title I of the National Industrial Recovery Act, approved June 16, 1933, for approval of a supple- mentary code of fair competition for the sponge preparing and wholesaling or wholesaling division of the fishery industry, and hearing having been duly held thereon and the annexed report on said code, containing findings with respect thereto, having been made and directed to the President: NOW, THEREFORE, on behalf of the President of the United States, the National Industrial Recovery Board, pursuant to author- ity vested in it by Executive Orders of the President, including Executive Order No. 6859, and otherwise, does hereby incorporate by reference said annexed report and does find that said code com- plies in all respects with the pertinent provisions and will promote the policies and purposes of said title of said act; and does hereby order that said code of fair competition be and it is hereby approved. National Industrial Recovery Board, By W. A. Harriman, Administrative Offioer. Approval recommended : Armin W. Riley, Division Administrator. Washington, D. C, Afril 27, 1935. 132210° 1749-Co 35 (1) REPORT TO THE PRESIDENT The President, The White Hou^e. Sir: This is a report on the Supplement:;) ry Code of Fair Com- petition for the Sponge Preparing and Whole;--aling or Wholesaling Industry (a Division of the Fisliery Industiy), as revised after Public Hearing conducted in AVashington, D. C, on December 17 and 21, 1934, in accordance witli the provisions of the National Industrial Recovery Act. The code is sponsored by the Sponge In- stitute and tlie Florida Si)onge Packers Association, trade associa- tions with their principal offices in Washington, D. C, and Tarpon Springs, Florida, respectively, and by a code committee elected by ballot of the industry, to which committee, with the acquiescence of the incumbent membeis and the National Recovery Administra- tion ^ certain members were added looking to true representation. I. Description of the Indlisi-ry The sponge i)reparing and wholesaling or wholesaling industry in- cludes the washing, cutting, ciii)ping, trinnning. (h\ving, sorting, bleaching, baling, packing, tagging, wrapping, i)ackaging and kin- dred manipulation of sponges, and the wholesaling thereof, except by cleaning supply, paint or hardware dealers, or druggists. The raw supplies for the industry are obtained from fishing ves- sels operating out of Florida ])orts and through im{)ortations from Cuba and the Bahama Islands. Most of the sponges obtained from domestic producers are purcliased through the Tarpon Springs Sponge Exchange at Tarpon Springs, Florida, where the fishermen take their sponges for sale at auction. After the sponges are purchased from the fishermen, they are taken to the packing houses, where they are waslied, trimmed, cut, dried, baled and shipped to the wholesale dealers who are located in the larger cities of the United States. There the sponges may be fui'tlier cleaned, bleached, wrapj)ed, tagged and packageil before shi[)ping to the jobbei's an.d retail dealers. New York City is the princii)al imi)()i't mark'ct. In IDSo about T6 ])er cent of the (juantity of s})onges imported entcM'ed the United States through New York. A large part of the imported sponges is sold in the original package. There are 57 preparing and wholesaling or wliolesaling establish- ments in the industry covered by the crnle. Tliese emjiloy between GOO and 750 wage earners. 'J'lie aggregate volume of sales amounts to from $3,000.(k)0 to $3,500,000 and the invested capital is approxi- mately $1,500,000. II. IjAiiOK Provisions The industry j)ro])()ses that employmeni of (dcrical. accounting and other office employees be r(>stric(<>(l (o 10 houi-s in any wet k', 8 hours in any day. and 6 days in any 7, except that during 5 weeks in any year such employees may be permitted to work 44 hours per weelc, or 9 hours per da}', provided they receive time and one-third the normal rate of pay for all hours worked in excess of 40 per week or 8 per day. Xo other employee shall be permitted to work in excess of 40 hours per week, or 8 hours per day, or 6 days in any 7, with the exception of executive, supervisory and administrative em- ployees who receive $35.00 per week or more; outside salesmen who spend 80 per cent of their time away from the premises of their em- ployer; stationary engineers and stationary firemen, chauffeurs, and deliverymen, provided the}' shall not be permitted to work in excess of 48 hours in any week; employees engaged in emergency mainte- nance and emergency repair work, provided they are paid at least time and one-third the normal rate for hours worked in excess of the maximum established for them; and for not more than 16 weeks in any year employees skilled in bleaching and packing sponges may be permitted to work 48 hours per week, provided they are paid time and one-third the normal rate for hours worked in excess of 40 per Aveek or 8 per day. With respect to wages the industry proposes that no clerical, accounting or other office employee shall be paid less than at the rate of $16.00 per week, except that office boys may be employed at a rate of not less than $14.00 per week. Office boys are limited to 5 2)ercent of all office employees but at least one may be employed. No employee engaged solely in the light work of tagging, packaging, or wrapping shall be paid less than at the rate of $14.00 per week for those who work by the Aveek or 35 cents per hour for those who work by the hour. No other employee shall be paid less than at the rate of $16.00 per week for those who work by the week or 40 cents per hour for those who work by the hour. In addition, the code contains general labor provisions which are intended to be of direct benefit to employees. III. Unfair Methods of Competition The unfair methods of competition provisions of the code include provisions with respect to participation in code and false informa- tion. IV. Findings The Acting Deputy Administrator in his final report to the National Industrial Recovery Board on said code, having found as herein set forth and on the basis of all the proceedings in this matter : The National Industrial Recovery Board finds that: (a) Said code is well designed to promote the policies and pur- poses of Title I of the National Industrial Recovery Act, including removal of obstructions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof, and will pro- vide for the general welfare by promoting the organization of in- dustry for the purpose of cooperative action among trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanctions and supervision, by elimi- nating unfair competitive practices, by promoting the fullest pos- sible utilization of the present productive capacity of industries, by avoiding undue restriction of production (except as may be tem- porarily required), by increasing the consumption of industrial, fishery and agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating industry. (b) Said industry normally employs not more than 50,000 em- ployees; and is not classified by the Board as a major industry. (c) The code as approved complies in all respects witli the perti- nent jjrovisions of Title I of the National Industrial Recover}^ Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7 and Subsection (b) of Section 10 thereof. (d) The applicant groups are truly representative of the industiy. No inequitable restrictions on admission to membership therein are impu-icd by said groups. (e) The code is not designed to and will not permit monopolies or monopolistic practices. (f ) Tlie code is not designed to and will not eliminate or oppress small enterprises and will not operate to discriminate against them. (g) Those engaged in other steps of the economic process whose services and welfare are effected by the code, have not been deprived of the right to be heard prior to approval of said code. For these reasons, therefore, this divisional code has been api)roved. For the National Industrial Recovery Board : W. A. Harkiman, Administrative Officer. April 27, 1935. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE SPONGE PREPARING AND WHOLESALING OR WHOLESALING INDUSTRY A DIVISION OF THE FISHERY INDUSTRY Article I — Purpose Section 1. The National Code of Fair Competition for the Fishery Industry with the exceptions and additions hereinafter specifically enumerated shall constitute the code of fair competition for the sponge preparing and wholesaling or wholesaling division of the fishery industry in accordance with Article VIII, Title C, Section 1 of said national code, and shall be the standard of fair competition for the sponge preparing and wholesaling or wholesaling division of the fishery industry, and shall be binding upon every member thereof. Article II — Definitions Section 1. Wherever a term is used in this divisional code which is defined in said national code, the definition thereof contained in said national code shall, except as herein provided in the case of whole- saling, apply to the sponge preparing and wholesaling or whole- saling division of the fishery industry. As used herein : (a) The term ''sponge preparing and wholesaling or wholesal- ing industry '' or '' sponge industry " means the preparing and whole- saling or wholesaling of sponges. Said term does not include the wholesaling of sponges by cleaning supply, paint or hardware dealers, or druggists. (b) The term "preparing"' means washing, cutting, clipping, trimming, drying, sorting, bleaching, baling, packing, tagging, wrapping, packaging, and kindred operations. (c) The terms " wholesale " and " wholesaling " mean the distribu- tion of sponges, in the natural or any prepared state, to retail outlets whether or not the retail outlets are owned or controlled by the person or enterprise effecting the distribution, hereinafter in this paragraph referred to as the distributor ; and include sales of sponges between or among distributors. Said terms do not inclucle any primary sale, in the natural or any pr(^Dared state, of sponges taken from the water, or taken from the water and prepared, by persons engaged by their own manual labor individually, as partners, or on a '' lay " basis ; and with or without the cooperation in the work of one or more employees compensated on a time or piece rate basis). (d) The term "member of the sponge industry" means any indi- vidual, partnership, association, corporation, or other form of enter- prise engaged in the sponge industry, eitJier as an employer or on his or its own behalf. (5) 6 (e) The term " sponge " means the sheepswool sponge {Il'ifpo- spongia canaliculata gossypina) and other species of Hippospongla^ Euspongia^ Spongia; it shall include also analogous genera used for commercial purposes. (f ) The term " Executive Committee " means a supervisory body provided for in Article VIII. Title C, Section 1, paragraph (e) of said national code, and created pursuant to the provisions of Article VIII, Title B hereof. (g) The term " National Industrial Recovery Board '' means the body established b}' Executive Order No. 6859, dated September 27, 1934, to administer the provisions of Title I of the Act. AirncLE III — Hours of Labor Section 1. The labor hour provisions contained in Article III of said national code shall not apply to the sponge industry, and in lieu thereof the follov.ing shall apply: (a) Nt) clerical, accounting or other office employee siiall be per- mitted to work in excess of forty (40) hours in any week, or eiglit (8) hours in any day, or six (G) days in any seven (7), except that dur- ing five (5) weeks in any year any such employee nu\y be permitted to work not to exceed forty-four (44) hours in any week, or nine (9) hours in any day; Provided however, that time and one-third the normal rate shall be })aid for all hours worked in excess of forty (40) in any week or eight (8) in any day. (b) No other employee shall be permitted to work in excess of forty (40) hours in any week, or eight (8) hours in any day, or six (6) days in any seven (7), with the following exceptions: (1) Executive, supervisory, and aihiiinistrative employees, pro- vided they receive $35.00 per week or more. (2) Outside salesmen who spend at least eighty percent (80%) of their time away from the premises of their employer. (3) Stationary engineers and stationary firemen, chauffeurs, and deliverymen; Pi'or'xicd hoirevei\ that they shall not be i)eruHtted to work in excess of forty-eight (4S) hours in any week. (4) Employees engaged in emergency maintenance and emergency repair work; Provided however, that they shall be paid at least time and one-third the normal rate for hours worked in excess of the maximum establislied herein for them respectively. (5) For not more than sixteen (16) weeks in any year, employees skilled in bleaching and packing may be permitted to woi'k not to exceed forty-eight (48) hours in any week; Provided hoirvver, that they shall i)e paid at least time and one-third the nornuil rate for hotu-s worked in excess of forty (40) in any week or eight (8) in any day. (c) Each em})loyer shall nudvc a montldy report to the Execu- tive Committee having jurisdiction, stating the number of hours worked in excess of the maximum under the provisions of Section 1, pa!agrai)h (b). subparagraphs (4) and (5) of this Article. (d) No emplover shall hnowingly permit any em])loyee to woik for any time which, when added to the time spent at work for an- other member or members of the sj)onge industry or otlierwise, ex- ceeds tlie maximum herein permitted for his occupation. Article IV — Wages Section 1. The labor wage provisions eontaiiied in Article IV ot' said national code shall not apply to the sponge industry, and in lieu thereof the following shall apply : (a) No clerical, accounting or other office emi)loyee shall be paid less than at the rate of $16.00 per week, except that office boys may be employed at a late of not less than $14.00 per week. Office boys in any establishment shall not exceed tive per cent (5%) of all office employees therein, but at least one may be employed. (b) No emploj'ee engaged solely in the light work of tagging, packaging, or wrapping shall be i)aid less than at the rate of $14.00 per week for those who work by tlie week or 35^^ per hour for those who w^ork by the hour. (c) No other employee shall be paid less than at the rate of $16.00 per week for those who Avork by the w^ek or 40^. per hour for those who w^ork by the hour. (d) A person Avhose earning capacity is limited because of age, physical or mental handicap, or other infirmit}', may be employed on light work at a wage below the minimum established by this divisional code, if the employer obtains from the authority desig- nated by the United States Department of Labor a certificate au- thorizing such person's employment at such wages and for such hours as shall be stated in the certificate. Such authority shall be guided by the instructions of the United States Department of Labor in issuing certificates to such persons. Each employer shall file with the Executive Committee having jurisdiction a list of all such persons employed by him, shov\'ing the wages paid to, and the maximum hours of work for, each such employee. (e) Female employeees performing the same duties as male employees shall receive the same rates of pay. (f) In order to maintain fair differentials between employees, and equitable readjustment in rates of pay shall be made in cases of employees who on June 15, 1933, received in excess of the mini- mum rates of pay then prevailing; but in no case as a part of such readjustment shall full time w'eekly wages be reduced. Each Execu- tive Committee, within sixty (60) days after the effective date of this divisional code, shall report to the National Industrial Recovery Board the readjustments made pursuant to the provisions of this paragraph. (g) This divisional code establishes minimum rates of i)ay, and the same shall apply whether the employee be actually compensated on a time rate, piece wx^rk, or other basis. (h) Wages shall be exempt from fines; and from charges and deductions, except charges and deductions for employees' voluntary contributions to insurance, pension or benefit funds, and except charges and deductions required by State legislation enacted for the benefit of employees. Deductions for other purposes may be made only wdien an agreement covering the same is reduced to writing ancl kept on file by the employer, open to the inspection of the Na- tional Industrial Recovery Board. Wages shall be paid at least twice a month, in cash, or by negotiable check paj'able on demand. Article V — General Labor Provisions Section 1. The mandatory chm.'-c^ from Section 7 (a) of the Act and the other general labor provisions contained in Article V of said national code, except Section 8 of said Article V, are specifically incorporated herein by reference and shall apply to the sponge indus- try, and in addition thereto the following shall apply: (a) No person under eighteen (18) years of age shall be employed at operations or occupations which are hazardous in nature or danger- ous to health. Each Executive Committee shall submit to the Na- tional Industrial Recovery Board, within thirty (30) days after the effective date of thi^jiivision.al code, a list of such operations or occupations. (b) Every employer shall provide for the safety and health of employees during the hours and at the places of their em])loyment. Standards for safety and health shall be submitted by the Executive Committees to the National Industrial Recovery Board within three (3) months after the effective date of this divisional code. Article VI — Unfair Methods of Competition Section 1. The imfair methods of competition provisions con- tained in Article VI of said national code shall not apply to the sponge industry, and in lieu thereof the following shall apply : (a) The following practices constitute unfair methods of competi- tion and it shall be a violation of this divisional code for any member of the sponge industry : (1) Participation in Code. — To claim participation in this divi- sional code or said national code w^ithout complying with the provi- sions of this divisional code. (2) False Information. — To report falsely to either Executive Committee on any information required for the administration of this divisional code. Article VII — Information, Books and Records Section 1. — The provisions contained in Article VII of said national code, except those contained in Section 3, shall apply to the sponge industry. Article VIII— Adiministration title a. supervisory bodies Section 1. The provisions contained in Article VIII of said national code shall apply to the sponge industry, except as modifietl in this Article. TITLE B. executive COMMITTEES, SELECTION Section 1. There shall be elected annually by and fi-om the mem- bers of the sjjonge industry within the State of Florida an Executive Committee consisting of live (5) meml)ers to administer this divi- sional code within the confines of said state, subject to rules and regulations pertaining to code administration issued by the National Industrial Kecovery Board; Provided however^ that one (1) .member of said Executive Coniinittee shall be the President of the Florida Sponge Packers Association. The first election shall be called b^^ the Florida Sponge Packers Association within fifteen (15) days after the effective date of this divisional code (if it has not been earlier held), and the Executive Committee elected thereat shall serve until a date not later than one (1) year from the effective date of this divisional code, or for any less period connnensurate with the life of the Act. Subsequent elections shall be called by said Executive Committee. Each member of the sponge industry within the State of Florida shall be entitled to one (1) vote in the election of each member of said Executive Committee, to he cast in person, by prosy or by mail. Section 2. There shall be elected annually by and from the mem- bers of the sponge industry in ]~)lrtces other than the State of Florida an Executive Committee consisting of five (5) members to adminis- ter this divisional code in such places, subject to rules and regula- tions pertaining to code administration issued by the National In- dustrial Eecovery Board: Frovkled liowev€i\ that one (1) member of said Executive Committee shall be the President of the Sponge Institute. The first election shall be called hv the Sponge Institute within fifteen (15) days after the effective date of this divisioiial code (if it has not been earlier held), and the Executive Committee elected thereat shall serve until a date not later than one (1) j^ear from the effective date of this divisional code, or for any less period commensurate with the life of the Act. Subsequent elections shall be called by said Executive Committee. Each member of the sponge industry in such places shall be entitled to one (1) vote in the election of each member of said Executive Committee, to be cast in ]Derson, by proxy or by mail. Section 3. Notice of any Executive Comrnittee election to be held under this divisional code shall be dispatched to each member of the sponge industry entitled to vote thereat at least twenty (20) days in advance of the date of the j^roposed election. Section 4. In addition to membership as above provided, there may be one (1) to three (3) members on each Executive Connnittee to be appointed by the National Industrial Recovery Board, to serve for such periods respectively as the National Industrial Re- covery Board may designate. Administration members shall serve without vote and without expense to the sponge industry. Section 5. Each Executive Committee shall have the same privi- leges and be subject to the same limitations as the National Code Authority has and is subject to in Article VIII, Title A, Sections 2, 3, 4, 5 and 6 of said national code. title c. executi\'e committees, powers and duties Section 1. Subject to rules and regulations pertaining to code ad- ministration issued by the National Industrial Recovery Board, each Executive Committee within its jurisdiction shall supervise the effectuation of the purposes of this divisional code pursuant to the provisions of Article VIII of said national code, and within its jurisdiction is authorized further: (a) To use an Executive Secretary, and such associations and other agencies as it sees fit, for the carrying out of any of its activi- 10 ties hereunder; Proi'klcd however, that nothinir herein shall relieve either Executive Committee of its duties and res})onsibilities under this divisional code, and that the Executive Secretary and such asso- ciations and other agencies shall at all times be subject to and shall comply with the provisions thereof. (b) To make such surveys and investigations as may be necessary to ascertain conditions in the sponge industry and to formulate plans for the effective distribution of the products of the sponge industry, which plans shall be designed to promote stable marketing conditions and standards of quality. This paragraph supersedes Article VIII, Title D, Section 3, paragraph (b) of said national code, the provi- sions of which shall not apjily to the sponge industry. (c) To cooperate with the National Industrial Kecovery Board in regulating the use of any N. R. A. insignia solely by those mem- bers of the sponge industry who are complying with this divisional code and contributing to the expense of the administration of said national code and this divisional code as in said codes provided, unless duly exempted from making 'such contribution. (d) To obtain from members of the sponge industry such informa- tion and reports as are required for the administration of this divi- sional code. If either Executive Committee or the National Indus- trial Recovery Board shall determine that substantial doubt exists as to the accuracy of any information or report supplied or submitted by an}' member of the sponge industry, so much of the pertinent books, records and papers of such member as may be required for the verification of such information or report may l3e examined by an impartial agent agreed upon by the Executive Connnittee having jurisdiction and such member, or, in the absence of agreement between them, appointed by the National Industrial Recovery Board. In no case, shall the facts disclosed by such examination be nuule avail- able in identifiable form to any competitor, whether on either Execu- tive Committee or otherwise, or be given any other ])ublication. except such as may be recpaired for the proper administration or enforcement of the provisions of this divisional code. This paragrai)h supersedes Article VIII, Title D, Section 3, j^aragraph (c) of said national code, the provisions of which shall not apply to the sponge industry. Section 2. The Executive Committee having jurisdiction over the territory outside the State of Florida shall cause to be fornudated methods of cost finding and accounting capable of use by all mem- bers of the sponge industry within said territoi'v. When such cost finding and accounting methods have been fornudated same shall be submitted to the National Industrial Recovery l)oard for review. If approved by the National Industrial Recovery Board, full informa- tion concerning such methods shall be made available to all members of the sponge industry within said territory. Thereafter, each mem- ber of the sponge industry within said territory shall utilize such methods to the extent found practicable. Nothing herein contained shall be construed to permit either Executive Connnittee, or any agent tliereof. or any member of the sponge industry, to suggest unifoi'ui additions, percentages, or dilfei-entials, or other uniform items of cost wiiicli are designed to bring Ml)out arbitrary iinifoi'mity of costs or prices. Section 3. The Executive Connnittee having jurisdiction within the State of Florida sliall within sixty (GO) days after the effective 11 date of this divisional code appoint tbree (o) ineuibers of the spong^e industry within the State of Florida to meet in coninuttee with tliree (3) sponge fishermen and a representative of the Federal Govern- ment to discuss matters looking to the inclusion in tliis divisional code of provisions regulating the purchase of sponges from fishermen, and to make recommendations thereon to each Executive Commit- tee and to the National Industrial Recovery Board, If the sponge fishermen fail within sixty (60) days after the effective date of this divisional code to elect representatives to meet as aforesaid with said members of the sponge industry, the Labor Advisory Board of the National Recovery Administration shall appoint such representatives. The representative of the Federal Government, designated as a mem- ber of the committee provided for in this Section shall be a|)pointed by the National Industrial Recovery Board, to serve for such period as the National Industrial Recovery Board may designate; said rep- resentative shall serve without expense to the sponge industry. Sectiox 4. The provisions of Article VIII, Title D, Section 3, paragraph (a) and of Article VIII, Title D, Section 4 of said national code shall not apj;ly to the sponge industry. Section 5. If the National Industrial Recovery Board shall deter- mine, at any time, that any action of either Executive Committee, or any agency thereof, may be unfair or unjust or contrary to the public interest, the National Industrial Recovery Board may require that such action be suspended pending final action following oppor- tunity for investigation of the merits of the original action and further consideration by the Executive Committee or agency thereof sponsoring same, which final action shall not be effective unless the National Industrial Recovery Board approves or unless it shall fail to disapprove after thirty (30) daj^s' notice to it of intention to proceed with the action in its original or anj'' modified form. This Section supersedes Article VIII, Title H, Section 1 of said national code. TITLE D. EXPENSES Section 1. If the assessments provided for in Article VIII, Title E, Section 1 of said national code shall fail to provide sufficient funds for the proper administration of this divisional code, each member of the sponge industry shall bear his proportionate share of any additional expense, if the National Industrial Recovery Board shall approve an assessment for the same. Section '2. It being found necessary^ in order to support the ad- minislration of this divisional code and to maintain the standards of fair competition established thereunder and to effectuate the policy of the Act, each Executive Committee is authorized : (a) To incur such reasonable obligations as are necessary and proper for the foregoing purposes, and to meet such obligations out of funds which may be raised as hereinafter provided and which shall be held in trust for the purposes of said national code (in accordance with its terms) and this divisional code. (b) To submit to the National Industrial Recovery Board for its approval, subject to such notice and opportunity to be heard as the National Industrial Recovery Board may deem necessary, (1) an itemized budget of its estimated expenses for the administration of 12 this divisional code and of its contribution to the code administration expense of the National Code Authority, and (2) an equitable basis (consistent with said national code) upon which the funds necessary to support such budget shall be contributed by members of the sponge industry. (c) After such budget and basis of contribution have been ap- proved by the National Industrial Recovery Board, to determine and obtain equitable contribution as above set forth by all members of the sponge industry, and to that end, if necessary, to institute legal proceedings therefor in its own name. Section 3. Each member of the sponge industry shall pay his or its equitable contribution to the exj^ense of the administration of said national code and this divisional code as in said codes provided, subject to rules and regulations pertaining thereto issued by the National Industrial Recovery Board. Only those members of the sponge industry complying with this divisional code and contribut- ing to the expense of the administration of said national code and this divisional code as in said codes provided (unless duly exempted from making such contribution) shall be entitled to participate in the selection of members of the Executive Committees or to receive the benefit of any of their voluntary activities or to make use of any emblem or insignia of tlie National Recovery Administration. Section 4. The Executive Committees shall neither incur nor pay any obligation substantially in excess of the amount thereof as esti- mated in their approved budgets, and shall in no event exceed the total amount contained in their approved budgets, except upon ap- proval of the National Industrial Recovery Board ; and no subse- quent budget shall contain any deficiency item for expenditures in excess of prior budget estimates, except those which the National Industrial Recovery Board shall have so approved. Article IX — Modification and Monopolies Section 1. This divisional code and all the provisions thereof ane expressly subject to the right of the President, in accordance with the provisions of Subsection (b) of Section 10 of the Act, from time to time to cancel or modify any order, approval, license, rule, or I'cgulation issued under the Act; and specifically, but without limi- tation, to the right of the President to cancel or modify his approval of this divisional code or any condition im})oscd by him u])on ap- l^roval thereof. The other provisions contained in Articles IX and X of said national code shall apply to the sponge industry whether or not in said Articles of said national code specific reference is made to this divisional code. Article X — Effective Date Section 1. This divisional code shall Ix^come efTective on the sec- ond Monday following its ai)i)roval by the President. Apiirovc'd Code No. 80S — Supploiiioiit No. 11. liegistry No. 908-01. O UNIVERSITY OF FLORIDA 3 1262 08853 8490