v^ 
 
 Registry No. 406—02 
 
 NATIONAL RECOVERY ADMINISTRATION 
 
 PROPOSED CODE OF FAIR COMPETITION 
 
 FOR THE 
 
 PAPER MANUFACTURING 
 INDUSTRY 
 
 AS SUBMITTED ON JULY 24, 1933 
 
 The Code for the Paper Manufacturing Industry 
 
 in its present form merely reflects the proposal of the above-mentioned 
 
 industry, and none of the provisions contained therein are 
 
 to be regarded as having received the approval of 
 
 the National Recovery Administration 
 
 as applying to this industry 
 
 UNITED STATES 
 
 GOVERNMENT PRINTING OFFICE 
 
 WASHINGTON : 1933 
 
 For sale by the Superintendent of Documents, Washington, D.C. 
 
 Price 5 cents 
 
Submitted by 
 
 NATIONAL PAPERBOARD ASSOCIATION 
 (11) 
 
CODE OF FAIR COMPETITION FOR THE PAPERBOARD 
 PRODUCING INDUSTRY UNDER THE PROVISIONS OF 
 SECTION 3 OF TITLE I OF THE STATUTE ENTITLED "AN 
 ACT TO ENCOURAGE NATIONAL INDUSTRIAL RE- 
 COVERY, TO FOSTER FAIR COMPETITION AND TO 
 PROVIDE FOR THE CONSTRUCTION OF CERTAIN USE- 
 FUL PUBLIC WORKS AND FOR OTHER PURPOSES " 
 
 1. This application is made by the National Paperboard Associa- 
 tion, a trade association, the membership of which consists of a sub- 
 stantial majority in numbers and in volume of the producers of paper 
 board. 
 
 The Committee presenting- this application was duly appointed, 
 and authorized for such purpose, by vote of the industry in open 
 meeting. 
 
 It is the desire of the Xational Paperboard Association and other 
 members of the industry to cooperate with the President of the 
 L^nited States in increasing employment and wages and to take such 
 further steps, subject to the approval of the President, as may be 
 necessary to make possible such increase in employment and wages. 
 
 On JNlay 1, 10;>3, there was delivered to the President a statement 
 offering substantially to reduce hours of labor and to increase em- 
 ployment and wages, and recommending legislation relieving indus- 
 try from the Anti-Trust law3 with lespect to codes or agreements 
 approved by the government, the same to be binding upon all mem- 
 bers of an industry. Such statement included an outline of an in- 
 dustry plan which, except for detail, is the plan set forth in the 
 Competition Section of the annexed code. 
 
 At the time this statement was transmitted to the President, the 
 membership of the National Paperboard Association included over 
 90 percent of the producers of paper board. About a week prior to 
 the enactment of the National IJecovery Act, the following paj^er 
 board producers, constituting about 1-1 percent in volume of the 
 industry, resigned from the Association : 
 
 Southern Kraft Corjo., Panama City, Fla. -Bastrop, La. 
 Bogalusa Paper Co., Inc., Bogalusa, La. 
 Albemarle-Chesapeake Co., Inc., West Point, Va. 
 Longview Fibre Company, Longview, Wash. 
 
 The members of the paper board industry as early as January 
 193?> recognized that great excess capacity and the effort of the in- 
 dividual to operate beyond industry average was resulting in price 
 demoralization and harm to the industry and to the public, and sub- 
 scribed to the principle that each individual operator should carry 
 it,s fair share of the industry burden and that the industry burden, 
 being excess capacity, each individual operator should own, or op- 
 eratively control, excess capacity which was in proportion to the 
 industry excess capacity. 
 
 9447—33 (1) 
 
The members of this industry at such time further subscribed to 
 the principle that individual operators who sought to escape their 
 fair share of the depression burden, should not be permitted so to 
 do except on a basis which would not work injury to employees, to 
 capital invested in the industry, and to the public. 
 
 In formulating the plan set forth in the Competition Section of 
 the annexed code, the industr}^ has taken into consideration the prin- 
 ciple stated and the large cost advantage arising from increased hours 
 of operation. 
 
 It is not desired to control price, to restrict or allocate volume. 
 
 The purpose of the tax of $5.00 per ton individual operation,s in 
 excess of the industry average is to prevent price demoralization. 
 It is true that cost savings due to individual operating periods in 
 excess of industry average may be more than the tax. It is desired 
 to permit progress and volume increase arising from business ability, 
 qualit}^, or other proper means, and it is believed that the annexed 
 code will not operate to preclude such progress by fair means. The 
 tax is intended as a balance against, and a deterrent to, securing in- 
 creased operation beyond that fairly and competitively possible with- 
 out resort to unfair, unreasonable, and demoralizing price cutting. 
 
 It i,s requested that the National Paperboard Association be con- 
 stituted and recognized as the agency, for the purpose of a code 
 covering labor and fair competition for the producers of paper board 
 of all kinds, and that such further action be taken with respect to 
 such code as shall be proper and permitted under the National Indus- 
 trial Recovery Act, and as shall be approved by the President of the 
 United States. 
 
 It is requested that the National Industrial Recovery Administra- 
 tion forthwith approve the labor provisions of the code herewith 
 submitted and that the labor provisions therein set forth shall be 
 applicable to and binding upon all producers of paper board in lieu 
 of the labor provisions set forth in proposed agreements by indi- 
 vidual manufacturers with the President, and that the individual 
 producers of paper board shall, upon such approval by the National 
 Industrial Recovery Administration, be exempted from execution of 
 the agreement proposed by the President, and shall be deemed to be 
 members of the National Recovery Administration. 
 
 Annexed hereto, and marked Exhibit A, is a list of the members of 
 the National Paperboard Association. 
 
 In case this code shall not cover the entire industry and all pro- 
 ducers of paperboard, it is respectfully requested that this applica- 
 tion for a code may be withdrawn. 
 
 Respectfully submitted. 
 
 Jno. L. Barchard, Hummel & Downing Co., 
 
 Milwaukee, Wis. 
 D. H. Patterson, Jr., Fibreboard Products, 
 
 Inc., San Francisco, Calif. 
 William P. Jeffery, Chahnnan, National 
 Paperboard Association, No. 1 Wall St., 
 New York, N.Y. 
 For the Code Committee of the Paper Board Industry. 
 
 Dated July 24, 1933. 
 
Exhibit A — Membees of National PAPOiBOARo Association, July 21, 1933 
 
 Albia Box & Paper Company, Troy, 
 
 N.Y. 
 Alton Box Board & Paper Co., Alton, 
 
 111. 
 American Box Board Co., Grand 
 
 Rapids, Mich. 
 American Coating Mills, Elkhart, Ind. 
 Auglaize Box Board Co., St. Marys, 
 
 Ohio. 
 Ball Brothers Company, Muncie, Ind. 
 Bartgis Brothers Co., Ilchester, Md. 
 Bedford Pulp & Paper Co., Big 
 
 Island, Va. 
 Bicking Paper Mfg. Co., S. Austin, 
 
 Dowuington, Pa. 
 Bird & Sou, Inc., East Walpole, Mass. 
 Bloomer Brothers Co., Newark, N.Y. 
 Carolina Fiber Company, Hartsville, 
 
 S.C. 
 Central Fibre Products Co., Chicago, 
 
 111. 
 Chemical Paper Mfg. Co., Holyoke, 
 
 Mass. 
 Chesapeake Paper Board Co., Balti- 
 more, Md. 
 Clifton Paper Mills, Clifton, N.J. 
 Columbia Box Board Mills, Chatham, 
 
 N.Y. 
 Consolidated Paper Co., Monroe, Mich. 
 Continental Paper Co., Ridgefield 
 
 Park, N.J. 
 Container Corporation of America, 
 
 Chicago, 111. 
 Cornell Wood Products Co., Chicago, 
 
 111. 
 Coshocton Straw Paper Co., Coshoc- 
 ton, Ohio. 
 Davis Paper Company, West Hopkin- 
 
 ton, N.H. 
 Dresden Paper Mills Co., Dresden, 
 
 Ohio. 
 Elk Paper Mfg. Co., Childs, Md. 
 Fairfield Paper Co., Baltimore, Ohio. 
 Federal Paper Board Co., Bogota, 
 
 N.J. 
 Fibreboard Products, Inc., San Fran- 
 cisco, Cal. 
 Fleming & Sons, Inc., Dallas, Texas. 
 Fort Orange Paper Company, Castle- 
 
 tnn on Hudson, N.Y. 
 Franklin Board & Paper Co., Frank- 
 lin, Ohio. 
 Frazer Paper Co., Ltd., Madawaska, 
 
 Me. 
 Robert Gair Co., Inc., New York, N.Y. 
 Gardner-Richardson Co., Middletown, 
 
 Ohio. 
 Hagar Straw Board & Paper Co., Ce- 
 
 darville, Ohio. 
 Halltown Paper Board Co., Halltown. 
 
 W.Va. 
 
 Hinde «& Dauch I'aper Co., Sandusky, 
 Ohio. 
 
 Hummel & Downing Co., Milwaukee, 
 Wis. 
 
 Lawless Bros. Paper Mills, East Roch- 
 ester, N.Y. 
 
 Lawrence Paper Co., Lawrence, Kans. 
 
 Liberty Paperboard Co., Inc., Steuben- 
 ville, Ohio. 
 
 Lydall & Foulds Paper Co., Manches- 
 ter, Conn. 
 
 MacAndrews & Forbes Co., New York, 
 N.Y. 
 
 Mac Sim Bar Paper Co., Otsego, 
 Mich. 
 
 McEwau Brothers, Whippany, N.J. 
 
 Mead Paperboard Corp., New York, 
 N.Y. 
 
 Michigan Carton Co., Battle Creek, 
 Mich. 
 
 Mobile Paper Mills, Mobile, Ala. 
 
 Morris Paper Mills, Chicago, 111. 
 
 Mutual Boxboard Co., Utica, N.Y. 
 
 National Folding Box Co., New Ha- 
 ven, Conn. 
 
 B. F. Nelson Mfg Co., Minneapolis, 
 Minn. 
 
 Newark Boxboard Co., Newark, N.J. 
 
 New Haven Pulp & Board Co., New 
 Haven, Conn. 
 
 Ohio Boxboard Co., Rittman, Ohio. 
 
 Owens-Illinois Glass Co., Toledo, Ohio. 
 
 The Pairpoint Corporation, New Bed- 
 ford, Mass. 
 
 Prairie State Paper Mills, Joliet, 111. 
 
 Penn Fibreboard Corp., New York, 
 N.Y. 
 
 Ravenswood Paper Mill Co., Long 
 Island City, N.Y. 
 
 River Raisin Paper Co., Monroe. Mich. 
 
 Robertson Paper Box Co., Montville, 
 Conn. 
 
 Schmidt & Ault Paper Co., York, Pa. 
 
 The Shenandoah Boxboard Corp., Win- 
 chester, Va. 
 
 Smeallie & Voorhees, Inc., Amsterdam, 
 N.Y. 
 
 W. W. Snyder Mfg. Co., Cohoes, N.Y. 
 
 Sutherland Paper Co., Kalamazoo, 
 Mich. 
 
 Tennessee Paper Mills, Chattanooga, 
 Tenn. 
 
 Terri^ Hnute Paper Co.. Terre Haute, 
 Ind. 
 
 Toronto Paper Mfg. Co., Toronto, 
 Ohio. 
 
 United Paperboard Co., New York, 
 N.Y. 
 
 Upson Company. Lockport, N.Y. 
 
 Waldorf Paper Products Co., St. Paul, 
 Minn. 
 
 (3) 
 
Section I — Labor 
 
 1. Collective haTgaimng. — In conformity with the provisions of 
 Section 7 (a) of the National Industrial Recovery Act, the attitude 
 of this industry with respect to the labor of employees shall be as 
 follows : 
 
 (a) That 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) That no employee and no one seeking employment shall be 
 required as a condition of employment to join any company union 
 or to refrain from joining, organizing, or assisting a labor organiza- 
 tion of his own choosing; and 
 
 (c) That employers shall comply with the maximum hours of 
 labor, minimum rates of pay, and other conditions of employment, 
 approved or prescribed by the President. 
 
 (d) It is clearly understood that the foregoing does not impair 
 in any particular the constitutional rights of the employee and em- 
 ployer to bargain individually or collectively as may be mutually 
 satisfactory to them ; nor does it impair the joint right of emplo^^er 
 and employee to operate an open shop. 
 
 (e) Nothing in this code is to prevent the selection, retenti<m, and 
 advancement of employees on the basis of their individual merit, 
 without regard to their affiliation or nonaffiliation witli any labor 
 organization. 
 
 2. Maximum wovMng hours. — The maximum number of working 
 hous of all employees engaged in the production of paperboard 
 shall be eight hours a day and forty hours per week. Employees 
 may be employed for such additional hours in any week as shall 
 be necessary for maintenance of equipment, provided such additional 
 hours shall be permissible only with respect to employment on equip- 
 ment which is not in operation. 
 
 Such maximum hours of labor shall not apply in cases of emer- 
 gency for protection of property. 
 
 The provisions of this paragraph shall not apply to persons em- 
 ployed outside of the paperboard producing plant or premises, or 
 to foremen, superintendents, managers, officials, and other employees 
 heretofore compensated on a salary or fixed compensation basis. 
 
 3. Mmhnmn compensation. — (a) The minimum wage for all em- 
 ployees subject to the provisions of the foregoing paragraph 2 of 
 this code, who are compensated on a time or piecework basis, shall 
 be not less than 40 cents per hour, except in the case of mills located 
 in the South, the minimum shall be 30 cents per hour. 
 
 For the purpose of this paragraph, the South is defined as the 
 territory in the United States, south of the States of Virginia and 
 
 (4) 
 
Kentucky, and east of the Mississippi River, and incliidinji the entire 
 State of Louisiana. 
 
 (b) The minimum compensation of all other employees of any 
 producer of paperboard in any department or branch of the business 
 shall be : 
 
 Not less than $15.00 per week in any city of over 500,000 popu- 
 lation, or in the immediate trade area of such city ; 
 
 Not less than $14.50 per week in any city of between 250,000 
 and 500,000 population, or in the immediate trade area of such 
 city ; 
 
 Not less than $14.00 per week in any city of between 2,500 and 
 250,000 population, or in the immediate trade area of such city ; 
 
 In towns of less than 2,500 population all wages shall be in- 
 creased by not less than 20 percent, provided that this shall not 
 require wages in excess of $12.00 per week. 
 
 (Population shall be based on the U.S. Census of 1930.) 
 
 (c) No person under 16 j^ears of age shall be employed. 
 
 4. The provisions of Paragraphs 2 and 3 of this Code shall be 
 effective 15 days after approval of this Code or 15 days after the 
 labor provisions hereof shall be in force, whichever is the earlier 
 date. 
 
 Section II — Competition 
 
 5. If the percentage of operation of any producer of paperboard 
 during any three months' period, beginning January 1, 1933, while 
 this Code shall be in effect, shall be in excess of the industry per- 
 centage of operation during the same period, then the paperboard 
 producer operating in excess of the industiy percentage shall be 
 $5.00 per ton for each ton of paperboard produced as a result of 
 operations in excess of the industry percentage. The three months' 
 period shall include the smaller fraction of a week less than or more 
 than an exact three months, in order to avoid fractions of a week. 
 Any fractions of a week shall be added to or deducted from succeed- 
 ing periods as necessary to avoid elimination or duplication of time. 
 
 6. The percentage of oi)eration and the resulting tons upon Avhich 
 such payment shall be based shall be determined as follows : 
 
 (a) The rated inch hours of a paper-board machine shall be the 
 width of the last drier in inches, multiplied for daily rating by 24 
 and for weekly rating by 144. 
 
 (b) The operated inch hours of a paper-board machine shall be 
 the number of hours of operation in any week, commencing Satur- 
 day, 7:00 a.m., multiplied by the width of the last drier in inches. 
 A shut-down of less than three hours shall not be deducted from the 
 period of operation. 
 
 (c) The percentage of operation for any period shall be the rated 
 weekly inch hours multiplied by the number of weeks of the period 
 for which the computation is made, divided into the total inch hours 
 actually operated during the same period. 
 
 (d) The Industry percent of operation shall be the sum of all the 
 rated inch hours divided into the actually operated inch hours of the 
 same machines, for which the audited record of operation is available 
 to the National Paperboard Association. 
 
 (e) For the purpose of determining the tons produced as a result 
 of operations in excess of the industry average, the tons produced per 
 
6 
 
 inch hour during the quarterly period for which the computation is 
 made, shall be deemed to be the same for each inch hour operated 
 during the period. 
 
 (f ) In case any producer of paperboard shall own or control under 
 recognized lease more than one paper-board machine, then the rated 
 inch hours and the inch hours operated of all paper-board machines 
 of such producer shall be combined for the purpose of determining 
 the operated percentage. In the case of a machine having three or 
 less cylinders, other than a machine operated on the production of 
 corrugating materials, which shall not have actually operated at 
 least 25% capacity during any quarterly period, the rated inch hours 
 of such machine shall not be combined with the other inch hours of 
 the owner or lessee thereof, except upon approval of the Board of 
 Appeals referred to in Paragraph 20 hereof, and such Board of Ap- 
 peals is hereby given the power to allow or refuse the combined 
 rating thereof, or to allow partial rating, or to impose terms and 
 condition for combined rating, all as in the opinion of such Board 
 shall be proper, 
 
 7. Notwithstanding the foregoing provisions, any machine which 
 for the period, January 1, 1929, to May 31, 1933, shall have operated 
 in the production of paper board less than 25% of tlie total full- 
 rated inch-hours for such machine, then the rated inch-hours to be 
 allowed for such machine sliall be only fifty percent of the full-rated 
 inch-hours. 
 
 8. Notwithstanding the above ])rovisions, no rated inch-hours shall 
 be allowed for any machine which shall not haA'e operated on the 
 production of paper board during the period, January 1. 1929, to 
 May 31, 1933, and all paper-board ]3roduction from any such ma- 
 chine shall be subject to the tax of $5.00 per ton. 
 
 9. In the case of machines subject to combined rating as provided 
 in subdivision (f ) of Paragraph 6 hereof, the combined, and not the 
 individual machine record for the purposes of full, partial, or no 
 inch-hour rating, shall govern. 
 
 10. In case a paper-board machine is transferred by sale or recog- 
 nized lease, such machine shall have the same rated inch-hours in 
 the hands of the new owner or lessee as it had in the hands of the 
 party transferring same, provided that the rated inch-hours of any 
 machine acquired by sale or lease on or after July 15. 1933. shall not 
 be combinecl with the rated inch-hours of the paper-board producer 
 acquiring same except upon the written approval and consent of the 
 Board of Appeals, and such Board of Appeals is hereby granted 
 the power to exclude from combined rating the rated inch-hours of 
 any such machine so acquired, or to include less than all the inch- 
 hours in combined rating, and to impose such terms and conditions 
 to the granting of combined rating as in the opinion of such Board 
 shall be proper. Such Board in reaching its decision may take into 
 consideration all facts deemed by it to be pertinent, among others 
 the previous operating history of the machine acquired, its produc- 
 tive rate as compared with productive rates of machines with which 
 it is sought to be combined, all as in the opinion of the Board may be 
 necessary to prevent use of rights and privileges granted by sub- 
 division (f) of Paragraph 6 in manner which will, in the opinion 
 of the Board, work hardship on or be unfair to other members of 
 the industry. 
 
11. If a machine be removed from its present location to a new lo- 
 cation in the United States, such removal shall not affect the rated 
 inch-hours otherwise applying to such machine. 
 
 12. No machine shall be included for inch-hour rating which, in 
 the opinion of the Board of Appeals, shall be deemed not to be in 
 condition for inclusion in good faith as an operative unit. 
 
 13. For the purpose of combined rating, a machine once rated shall 
 continue to be rated regardless of condition. The destruction, dis- 
 mantling, or other cause making a machine unfit for operation while 
 included in the combined rating of the owner thereof (not lessee) 
 shall not operate to reduce the rated inch-hours to which such owner 
 shall otherwise be entitled. 
 
 14. No lease made on or after July 15, 1933, will be recognized or 
 change of rated inch-hours made on account thereof unless such 
 lease be for a period of not less than two years, and such lease shall 
 give the lessee the right to operate the paper-board machine and the 
 lessee has, by contract or otherwise, made provision for securing 
 power and other essentials necessary for operation. Leases made 
 prior to July 15, 1933, which shall be for a period of at least six 
 months, shall be recognized and the rated inch-hours of the machines 
 leased shall be transferred to the lessee, but in case any recognized 
 lease made prior to Jul}^ 15, 1933, shall give the lessee the right to 
 renew, such lease shall not be recognized for the renewal period, 
 unless the lessee shall exercise all available renewal options to the 
 extent that the same shall exist as may be necessary to qualify such 
 lease, the same as though it had been made subsequent to July 15, 1933. 
 In case a lease made subsequent to January 1, 1933, and prior to 
 July 15, 1933, shall be for less than two years, then in case a new 
 lease for the same machine shall be made by the same lessee, com- 
 mencing on termination of the existing lease, the term of the original 
 lease shall be counted as part of the term of the new lease for the 
 purposes of this paragraph. A provision in a lease granting right 
 to termination on termination of the Industrial Recovery Act or this 
 Code shall not affect the recognition of such lease. 
 
 15. No increase in rated inch-hours arising from transfers will be 
 recognized prior to 7 : 00 a.m. of the Saturday next following sub- 
 mission of duly executed documents of transfer to the Chairman of 
 the National Paperboard Association or such other person or persons 
 at any time hereafter designated by the Executive Committee of the 
 National Paperboard Association. 
 
 16. If any producer of paper board in any three months' period, 
 beginning January 1, 1933, to December 31, 1933, or in any three 
 months' period of any calendar year thereafter, during which this 
 Code shall be in force, shall operate less than the industry average, 
 such producer shall be entitled to credit for the deficiency with re- 
 spect to operations in future quarters of the same year. 
 
 17. If a ]:)roducer of paper board in any quarter of a calendar year, 
 beginning January 1, 1933, operates in excess of the industry aver- 
 age, so that a tax shall be due and payable hereunder, then such tax 
 shall be refunded to the extent that future operations in such calen- 
 dar year shall be less than the industry average, so that the tax 
 as finally assessed shall be based upon the operations of a complete 
 calendar year. 
 
18. In case any producer of paper board shall fail to comply with 
 the provisions of this Code with respect to the hours of labor and 
 wages, then such member shall pay a sum equivalent to the saving 
 of such member arising from noncompliance, plus fifty percent there- 
 of, provided that nothing herein contained is intended to ])reclude 
 further action by the industry to require compliance with the labor 
 provisions of this Code by application to the President. 
 
 19. Any payments due under Paragraphs 5 and 18 shall be made 
 thirty days following the expiration of each quarter. The first pay- 
 ment due hereunder shall be November 1, 1933, or thirty days from 
 the date this Code is approved by the President, whichever shall be 
 later, based upon operations from April 1 to September 30, 1933. 
 The payment of any balance thereof due on account of operations 
 from January 1, 1933, to March 31, 1933, shall be postponed until 
 January 31, 1934, at which time final settlement shall be made ac- 
 cording to the amount due, based upon operations for the entire 
 calendar year 1933. The tax and payments provided to be j^aid 
 under Paragraphs 5 and 18 hereof shall be paid to the Trustees 
 referred to in Paragraph 21 hereof. 
 
 20. A Board to be known as Board of Appeals is hereby created. 
 Such Board shall consist of three persons. One member of such 
 Board shall be selected by the Administrator appointed by the Presi- 
 dent under the National Recovery Act ; one member shall be selected 
 by the Executive Committee of the National Papei'board Association. 
 The third member, who shall act as Chairman of such Board, shall 
 be selected by the two Board members first appointed. 
 
 Such Board shall act as a board in all matters hereunder, including 
 action as Trustees, and the decision of the majority shall be the 
 decision of the Board. 
 
 In case a member of the Board shall resign or die, his successor 
 shall be appointed in the same manner as herein provided for the 
 original appointment. 
 
 Any member of the Board may be removed without cause by the 
 person or persons who appointed such member. 
 
 The members of the Board as members thereof, and as Trustees. 
 may be paid a compensation, and such compensation shall be in such 
 amount as may be determined by the Executive Committee of the 
 National Paperboard Association. 
 
 The compensation and all expenses of the Board as a Board and 
 as Trustees shall be a charge u])on and paid from any tax monies 
 collected hereunder, but in case tax funds shall be insufficient for 
 the purpose, such compensation and expenses shall be paid by the 
 National Paperboard Association. 
 
 21. In case any member of the industry shall feel that the pro- 
 visions of this Code will work hardship owing to peculiar conditions 
 affecting such member, or by reason of the development of unforeseen 
 conditions, such member may make application in writing to the 
 Board of Appeals and the Chairman of the National Paperboard 
 Association, setting forth the grounds of the complaint and the relief 
 requested. 
 
 The Board of Appeals shall thereupon appoint a time and place to 
 hear such application. 
 
 The Board of Appeals shall be empowered to hear such applica- 
 tion and, after hearing, to grant such relief to the applicant as, in 
 
9 
 
 the opinion of the Board, may be just and fair; provided that the 
 action of the Board of Appeals in connection with labor provisions 
 of this Code shall be deemed recommendations only, and such recom- 
 mendations shall not relieve any member from the labor provisions 
 of this code, except upon the approval of the President. 
 
 Notice of such hearings shall be given by the Board to the ap- 
 plicant and all members of the industry. 
 
 The applicant may present such evidence and facts as to it shall 
 seem appropriate, all as in the judgment of the Board of Appeals 
 are material and relevant. 
 
 The Board of Appeals shall determine its own procedure and shall 
 render its decision in writing, setting forth the facts as found, 
 together with its conclusions. 
 
 The Chairman of the National Paperboard Association shall assist 
 the Board of Appeals in the conduct of the hearings and shall pre- 
 sent further facts on behalf of the applicant and/or the industry 
 and/or any member thereof, as to the Chairman of the Association 
 seems appropriate, provided the same shall, in the opinion of the 
 Board be material and proper. 
 
 The Chairman of the National Paperboard Association may, and 
 upon instructions from the Board of Appeals shall, appoint one or 
 more members of the National Paperboard Association to represent 
 the industry in hearings before the Board of Appeals. 
 
 The Board shall forward to all members of the industry a sum- 
 mary of its decision and a copy of the findings. The complete find- 
 ings'^ and decision of the Board shall be furnished to any member 
 upon request. 
 
 The decision of the Board of Appeals shall be binding upon the 
 applicant and the industrv, provided that nothing herein ccntained 
 shall preclude an applicant from thereafter making ap])lication or 
 such representation to the President as in the opinion of the appli- 
 cant is proper. 
 
 No application shall be made by any member to the President for 
 relief from the terms of this Code until the proceedings set forth in 
 this paragi'aph shall have been taken and complied with. 
 
 22. In case any member or members shall believe that any other 
 member is carrying on business unfairly, improperly, or in a manner 
 prejudicial to the interest of the industry, or in violation of the terms 
 and conditions of this Code, such member may file a com]:)laint with 
 the Board of Appeals. Such complaint shall set forth the action 
 complained of. The Board of Appeals shall thereupon make such 
 investigation as in its opinion is ])roper. granting to the member 
 complained against full op})ortunitv to submit facts and evidence in 
 its behalf. 
 
 If. in the opinion of such Board, the member complained of is 
 conducting business unfairly, improperly, or in violation of the 
 terms of this Code, then such Board is hereby authorized to, and 
 shall, make such representation to the President and request such 
 relief as, in the opinion of the Board, is proper in the premises. 
 
 No member of the industry shall file a complaint or request action 
 by the President against any other member until the proceedings in 
 this paragraph set forth shall have been taken. 
 
 23. The tax and all payments provided herein to be paid (except 
 dues to the National Paperboard Association) shall be paid to the 
 
10 
 
 persons who shall be the Board of Appeals, as Trustees, and the 
 members of such Board as Trustees are hereby granted power to 
 collect the tax and other payments provided to be paid under Sections 
 5 and 18 hereof, and to hold, invest, and pay the proceeds thereof 
 as herein provided. 
 
 Any funds coming into the hands of the Board of Appeals as 
 Trustees shall be invested by the Trustees in securities of the Govern- 
 ment of the United States and not otherwise. 
 
 The Trustees are hereby authorized to collect the income from such 
 funds and to expend the principal and income of such funds for : 
 
 (A) The payment of compensation of the Board of Appeals and 
 expenses of such Board, as a Board and as Trustees, and 
 
 (B) The purchase of paperboard producing plants and machines, 
 paying therefor such amount as in the opinion of the Trustees is 
 l)roper. 
 
 The said Trustees may dismantle or scrap any paperboard ma- 
 chines so acquired by them, and may sell and dispose of the other 
 parts of any such property so acquired at such price and upon such 
 terms and credit as in the discretion and judgment of the Trustees 
 shall be proper. 
 
 The Trustees are authorized to lease paperboard-producing prop- 
 erties, and to pay such rental or consideration therefor as, in the 
 opinion of the Trustees, shall be proper, provided that no lease 
 shall be made which shall extend beyond the period that this Code 
 shall remain in force. 
 
 The purpose in granting such power to lease is to relieve the 
 industry of excess capacity without permanently withdrawing same 
 from the industry. 
 
 It is the further purpose hereof to grant to the Trustees power to 
 assist owners of properties through the period of the depression. 
 
 The Board, in exercising the powers herein granted to purchase 
 and lease, shall give recognition to geographical locations and com- 
 petitive conditions, and shall proceed in a manner as shall, in its 
 opinion, be fair, just, and equitable and to the best interest of the 
 industry as a whole, and in a manner which will avoid special benefit 
 or advantage to any member, group, or subdivision of the industry, 
 without regard to the source of the tax funds. 
 
 The Executive Committee of the National Paperboard Association 
 may ap]Doint an Advisory Committee to cooperate with the Trustees 
 in the selection of properties for ])urchase and lease and the Board of 
 Appeals shall not take action until it shall have afforded full oppor- 
 tunity to the Advisory Committee to submit its recommendations. 
 
 The Trustees in the expenditure of said fund shall advise with the 
 agents of the President authorized to administer the National In- 
 dustrial Recovery Act, and shall not exercise any powers herein 
 granted in a manner which shall be contrary to any orders, regula- 
 tions, or directions of the President. 
 
 If, upon the termination of this Code, any paperboard-producing 
 plants are held by such trustees, such plants shall be disposed of by 
 the Trustees at such prices and upon such terms, at either public 
 or private sale, as in the discretion of the Trustees shall seem proper 
 
 The j)roceeds of such sale, together with any other funds or prop- 
 erty, which shall be or shall come into the hands of the Trustees 
 
11 
 
 liereunder, shall be paid to the National Paperboard Association and 
 become a part of the general funds of such Association. 
 
 24. No member of this industry shall sell its product for more 
 than a fair and reasonable price. 
 
 Each member will, upon request of the Board of Appeals, submit 
 facts as to selling prices, together with costs and all pertinent facts 
 as may be necessary to permit opinion on the part of the Board of 
 Appeals as to the fairness and reasonableness of the prices being 
 charged. 
 
 Whenever, in the opinion of the Board of Appeals, any member is 
 charging prices which are unfair and unreasonable, the Board of 
 Appeals shall report all the facts and circumstances to the President. 
 
 The Board of Appeals shall file such reports and furnish such 
 data to the President as shall be requested by the President. 
 
 Each member shall submit to such rules and regulations in the 
 premises as may be issued by the President. 
 
 25. If the tax of $5.00 per ton referred to in Paragraph 5 hereof is 
 found to be insufficient as a deterrent to unsound merchandising and 
 harmful price demoralization, or if such tax is found to be so large 
 as to constitute a prohibition against operations in excess of industry 
 average, then the amount of the tax may be increased or decreased 
 as may be necessary to make effective the purposes hereof. 
 
 Increase in tax shall be by vote of the producers of paper board 
 subject to this code, who shall be a majority in numbers and volume, 
 but no such increase shall be effective unless the same shall be 
 approved by the Board of Appeals. 
 
 Decrease may be effected by either the Board of Appeals or by 
 vote of the producers of paper board subject to this code, who shall 
 be a majority in numbers and volume. 
 
 " Volume , for the purposes of this paragraph, shall be the total 
 tons produced by the paper-board producers subject to this code 
 during the preceding calendar year. An increase in the tax shall 
 not be made retroactive, but a decrease therein may be made retro- 
 active. 
 
 26. Every jDroducer of paper board shall promptly and correctly 
 furnish each week to the National Paperboard Association, data and 
 information as to its operations, together with all facts as may be 
 necessary hereunder. Full reports as to rated inch hours, and op- 
 erated inch hours of individual paper-board producers, together 
 with the industry average based upon the data so furnished, shall 
 be distributed weekly by the National Paperboard Association to 
 all producers of paper board. All measurements and operating 
 time and records shall be subject to audit by the National Paper- 
 board Association through auditors selected by the Executive Com- 
 mittee of such Association. 
 
 27. Every producer of paper boa,rd, so long as this code remains 
 in force, shall pay as dues to the National Paperboard Association 
 on account of the expenses of such Association, its pro-rata share 
 thereof, computed on a tonnage basis. 
 
 28. Paper board, for the purposes of this code, shall be all paper 
 having a thickness of 12/1000 or more of an inch, and also paper 
 of a lesser thickness known as " lightweight chip ", and also paper 
 of a lesser thickness manufactured for use as corrugating material 
 
V2 
 
 and/or container board, and also specialties not classified as paper 
 according to trade custom. 
 
 29. This code shall include the producers of paper board, which 
 consume the board produced, either as fabricators or otherwise, and 
 is not limited to the producers of paper board produced to be sold 
 as such, 
 
 30. This code shall not apply to the employees or operations m 
 the fabricating of paper board, and fabricating is specifically 
 exempted herefrom, notwithstanding that a producer of paper board 
 may also be a fabricator thereof. 
 
 31. In the case of any machine, the rated inch hours of which 
 shall be recognized and included as a paper-board producing unit 
 hereunder, all of the operating time of such machine shall be in- 
 cluded for the purpose of determining the percentage of operations 
 under this code, irrespective of the product produced, provided such 
 adjustments, rules, or regulations may be made in connection there- 
 with by the Board of Appeals as shall be equitable and proper in 
 the premises. 
 
 32. This code shall inure to the benefit of and be binding upon 
 all producers of paper board. 
 
 33. This code shall be construed according to its intent in order 
 that the purposes hereof may be effective and unfairness and in- 
 justice avoided. 
 
 34. Modifications of this code maj^ be submitted to the President 
 at an}^ time, and from time to time, upon vote of the paper-board 
 producers who shall be a majority in numbers and volume subject 
 hereto, and such modifications, when approved by the President, 
 shall thereupon become a part of this code. 
 
 35. This code may be canceled and terminated at any time, after 
 four months from the date of the api)roval hereof, upon vote of a 
 majority in numbers and volume of the producers of paper board 
 subject hereto, provided no such cancellation shall be effective until 
 notice of cancellation in writing is filed with the National Kecoveiy 
 Administration, signed by duly authorized representatives of the 
 National Paperboard Association, together with written statement 
 by such representatives that the persons voting for such cancellation 
 represent a majority in numbers and volume of paper-board pro- 
 ducers subject hereto, according to knowledge and information of 
 such representatives of the National Paperboard Association, based 
 upon examination of the records and data of the National Paper- 
 board Association. 
 
 36. The President may from time to time cancel or modify this 
 code pursuant to the provisions of subdivision (b) of Section 10 
 of the National Industrial Recovery Act. 
 
 Dated July 24, 1933. 
 
UNIVERSITY OF FLORIDA 
 
 3 1262 08728 7032