Registry No. 328—04 NATIONAL RECOVERY ADMINISTRATION PROPOSED CODE OF FAIR COMPETITION FOR THE BROOM AND MOP HANDLE MANUFACTURING INDUSTRY AS SUBMITTED ON AUGUST 31, 1933 WE DO OUR PART 03Y The Code for the Broom and Mop Handle 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 HANDLE MANUFACTURERS' ASSOCIATION (ii) PROPOSED CODE OF FAIR TRADE PRACTICE FOR NATIONAL BROOM AND MOP HANDLE INDUSTRY INDER THE PROVISIONS OF THE INDUSTRIAL RECOV- ERY ACT Recognizing the provisions of the Industrial Recovery Act of l ( .'-'»:'.. passed by both Houses of Congress and approved by the Presi- dent of the United State.-. The National Handle Manufacturers Association adopts the following code to effectuate the purposes of the Act. Thi- code is not designed to promote a monopoly or to eliminate, oppress, or discriminate against small enterprises. The National Handle Manufacturers Association is truly represen- tative of thi' Broom and Mop Handle Manufacturing Industry, comprising three distinct groups, west Coast manufacturers of Fir Handles, Northern Manufacturers of Hardwood handles; and South- ern Manufacturers of Pine and Hardwood handles. It represents more than '.hi percent of the total manufacturers of Broom and Mop Handles in the United States and is National in its scope. For the purpose- of brevity the National Handle Manufacturers Association is hereinafter referred to as "The Association" and the code id' Fair Trade Practice for Broom and Mop Handle Man- ufacturing Industry is hereinafter referred to as "National Handle Code." The Association imposes no inequitable restrictions as to member- ship and the scope of its work is in direct relationship to the pur- pose- of the Industrial Recovery Act. The Association recognizes the necessity for the coordination in this code of the various groups, manufacturing handles from dis- tinctly different kinds of wood, and under entirely different condi- tion- a- t<» cost of manufacture and delivery, and further recognizes the necessity for the coordination of its code with the codes of other divisions of the woodworking industry, and with the codes of other industry, thru the Emergency National Committee and such other Government officials or departments, which are established for thi- purpose. The Association is prepared to administer the provisions of the Industrial Recovery Act and sets forth the following method of procedure : (a) It will appoint representatives to General Industry Commit- tee- for purposes of coordination. tin It will appoint a representative committee of manufacturers composed of -± from the west coast. 2 from the Northern and '1 from the Southern to administer the code, and adjust complaints. This committee -hall have full and complete authority to act in all mat- ter- for the association and shall be known as the Control Committee. (c) The Control Committee will set up the necessary physical ma- chinery to administer the code, the expense of which will be appor- tioned to all handle manufacturers in relation to the volume of -ales. 9956 :; ( ] i Article 1 — Minimum Wages The Association hereby fixes a minimum common-labor wage and maximum hours of labor to be the same as fixed by the West Coast Lumber Association, the Northern Hemlock and Hardwood Associa- tion, and the Southern Pine Association and Hardwood Manufac- turers Institute, these rates to be applied in each section as covered by these respective associations; minimum rates for other than com- mon labor shall bear the normal relationship to the common-labor rate, as has been usual and customary in the industry. (a) The rates shall be the minimum paid during the period covered by the Industrial Recovery Act or until such time as the Association shall fix w T ith the approval of the properly designated government officials, or department, and/or the approval of the President of the United States, different minimum wage rates. Article 2 — Working Conditions The Handle Association recognizes and adopts the conditions estab- lished by section 7-a of the Industrial Recovery Act. i.e. — (a) That employees shall have the right to organize and bargain collectively thru representatives of their own choosing and chosen from their own ranks. (b) That no employees and no one seeking employment shall be required as a condition of employment to join any organization or to refrain from joining a labor organization of his own choosing. (c) That all Handle manufacturers shall comply with the maxi- mum hours of labor, minimum rates of pay, and other working con- ditions as set forth in this code and approved by the President of the United States. Article 3 — Price Control (a) In order to effectuate the purposes of the Industrial Recovery Act and the provisions of this code, the Association recognizes the necessity of realizing a fair return for its products, especially if it is to meet the added burdens of cost occasioned by higher priced materials, shorter working hours, and higher wages. (b) To carry thru these provisions, the Association has au- thorized the Control Committee to establish and maintain a minimum price based on cost of production for all kinds, grades, and sizes of handles as manufactured by the Broom and Mop Handle Industry, with the proper and equitable differences, as between various kinds of woods used and conditions under which the different groups of manufacturers operate, said minimum prices to be fixed under the supervision of the proper government officials and with the approval of the President of the United States. (c) These prices as and when fixed or on and after date this code becomes effective all manufacturers will be required to observe these minimum prices on all sales made. All minimum price lists as established shall remain in effect until changed by the Control Com- mittee, with the approval of the President of the United States. (d) The Association authorizes its Control Committee to establish with the Fir Lumber Industry, Yellow Pine Lumber Industry, and Hardwood Lumber [ndustry, a fair and equitable price for Broom and Mop handle blanks of various kinds, sizes, and grades as used in tin- handle industry. (e) To prevent unfair competition in the quotations of prices on a delivered basis, the Association hereby adopts a Table of Standard Weights for each kind and size of handle, which is attached hereto. The freight on all handles sold must be estimated according to the weights shown in this table, and added to the f.o.b. mill minimum prices, provided by this code. Article 4 — Control of Production (a) The Association recognizes those provisions of the Industrial Recovery Act which allow industry to control its production. It recognizes that maximum hours of work, minimum wages, and mini- mum prices cannot be arbitrarily maintained in an industry which produces more than consumption just fies. (1)) The Association hereby authorizes the Control Committee to apportion production among the manufacturers of Broom and Mop handles, upon a basis that takes into full consideration the factors of capacity, past performance, stocks on hand, and contracts for raw material.-. That production may he fairly apportioned ii''-t as be- tween groups making principally handles from the same woods and n iiy. as between plants in each group and in the whole of all groups, the Control Committee is hereby authorized to set up and use such physical machinery as may he accessary to gather needed data on past performances, capacity, etc. It shall constitute an unfair practice for any manufacturer to produce in excess of the quota so apportioned. Production quotas as fixed will remain in force until they are changed by the Control Committee with the approval of the President of the United States. Article 5 — Standardization of Product (a) The Association shall appoint a Committee for the purpose of standardizing insofar as possible, size, grading, rules, size of pack- _ 3, and method of packing, grade marking, and general practices in the industry. The; report of this Committee, after the approval of the members of the Association, shall he attached hereto and be- come a part of this code. Article 6 — Reports (a) Every Manufacturer of handles shall keep the necessary rec- ords to enable him to render such reports as may lie required by the Associat ion. (I>) The following reports -hall he furnished the proper authority as may he selected by the Control Committee for the physical admin- istration of this code, by each manufacturer of handles: 1. A weekly report of production, orders, and shipment-. 2. A monthly report of stocks on hand. 3. A monthly report on Qumber of persons employed, and wage ran- paid, and Dumber of hours worked. (c) In order to assure uniform understanding of the requirements as to various reports and to make sure that reports are made cor- rectly and that other requirements of this code are being complied with, the Association herebj 7 authorizes and directs the Control Com- mittee thru whatever authority the Control Committee may set up for the physical administration of this code, to audit the books and records of each manufacturer in the industry from time to time so far as may be necessary for the purposes in view ; and each manu- facturer is required to make its books and records available for these purposes, and is further required to keep a record of all invoices covering sales in a serial form, with all serial numbers complete, to facilitate the handling of such audit. Article 7 — Trade Ethics (a) The Association recognizes that in addition to all the fore- going code provisions, the maintenance of uniform terms of sale, trade practice, commissions paid, discounts allowed, etc., are vitally necessary. It accordingly has set up and attaches hereto as part of this code certain rules and regulations under the title of " Fair Trade Practices." Article 8 For the administration of this code and the adjustment of com- plaints, the Association appoints the Control Committee composed, as hereinbefore stated, of representatives of the various groups, and the different producing sections, with full authority to make all necessary rules and regulations for the effective administration and enforcement of the provisions of this code. Article 9 Violation by any manufacturer or distributor of Broom and Mop Handles to the trade of any of the provisions of this code or of any approval rule or regulation issued hereunder is an unfair method of competition. Article 10 This code shall be in full force and effect beginning ten days after the approval by the President of the United States or by the ap- proval of any Government official or department that may be desig- nated for this purpose by the President of the United States. In witness whereof, we the undersigned Broom and Mop Handle Manufacturers do hereto subscribe and hereto set our hands and seals this 22nd day of June 1933 at Chicago, Illinois. National Handle Mfgrs. Assn. H. B. White, President, Bogalusa, La. Attest : Frank F. Collins, Secretary, Areola, Illinois. FAIR TRADE PRACTICES IN (ODE OF NATIONAL HANDLE MANU- FACTURERS ASSOCIATION Definitions 1. A Broom ami Mop Handle Manufacturer i^ one who operates a Handle factory with or without a finishing department, making handles from Lumber, saw mill waste, or direct from Logs. 2. A Supply Dealer is one actually, continuously, and principally engaged in the business of buying Broom ami Mop Handles. Broom Corn. Cotton Yarn, and supplies in quantity, handles in carload lots. and resells to the Broom and Mop Manufacturers in small quantities. He carries his own accounts, buying and selling outright. •".. A Handle Commission Man is one who sells handles in carload lot-, or less, for a manufacturer of handles, and who is paid a stipu- lated amount (known as commission) and holds a relation to the seller similar to that of a salaried salesman. 4. A Broom or Mop Manufacturer is one who operates a factory making complete brooms or mops and who purchases handles usually direct from the Handle Manufacturer in carload lots, in some cases in pool cars, and from the Supply Dealer in small quantities usually. Trade Teems 1. Trade Terms, describing grades, grade marking, kind of woods. shall conform to the rules and regulations as set up by the Stand- ardization Committee of the National Handle Manufacturers Association. Prick Discrimination 1. The industry while maintaining absolute freedom in the issuance of price schedules from time to time by any manufacturer, insists that there shall be DO discrimination as between purchases or han- dles, and that all prices published or otherwise circulated to the trade shall truly represent the prices at which sales are made, prices may be changed at any time, but any new prices must be circulated n the same manner as above provided, difference in price due to quality, quantity, <>r grade, credit risk or the cost of selling and transportation are do1 effected hereby. Reba i i> l. The secret rebating in pari or whole of commissions by manu- facturers, supply dealers, or commission men or the allowance of un- earned refunds, deductions, incorrect freight or other credit allow- ance.- are condemned as unfair methods of compel it ion. (5) UNIVERSITY OF FLORIDA lilllllllllilllll 3 1262 08856 0403 Discounts 1. Cash discount of 2 percent (after deduction of freight charges if any) shall be allowed on all sales if paid in 5 days from arrival of car or 60 days net from date of shipments. Contracts 1. Contract sales shall not be made for longer than six months delivery. Sales guaranteed against price decline will be considered unfair competition. Quotations 1. Direct quotations of prices and terms shall be limited to a specific time, and when made should be protected for the period so stated. In absence of such specific time, quotations will be subject to prior sale, and change without notice. Orders 1. Orders shall be given and confirmed in writing, and all condi- tions pertaining to the sales contract shall be embodied therein. Terms or Sale We set forth the following as a definite statement of sales terms and policies to which we will strictly adhere. (A) To all Customers : Freight net payable by buyer. Prices do not include taxes, tolls, or freight surcharges, now or hereafter imposed, and same are for account of buyer. (B) We will not: 1. Give commission or discounts other than set forth in terms of sale, and under item Discounts. 2. Give secret price concessions. 3. Make shipments for storage or consignment except for our own account in regular warehouse storage. 4. Place shipments in transit for future sales, or for sale while in transit. 5. Mislabel any grade of handles, or ship any grade of handle other than as shown on orders, and as invoiced. o