V Approved Code No. 275 — Supplement No. 2 Registry No. 699—20 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE CARBON DIOXIDE INDUSTRY (A Division of the Chemical Manufacturing Industry) AS APPROVED ON MAY 4, 1934 WE DO OUR PART UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Superintendent of Documents, Washington, D.C. Price 5 cents This publication is for sale by the Superintendent of Documents, Government Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga. : 504 Post Office Building. Birmingham, Ala. : 257 Federal Building. Boston, Mass. : 1801 Customhouse. Buffalo, N.Y. : Chamber of Commerce Building. Charleston, S.C. : Chamber of Commerce Building. Chicago, 111. : Suite 1706, 201 North Wells Street. Cleveland, Ohio : Chamber of Commerce. Dallas, Tex. : Chamber of Commerce Building. Detroit, Mich. : 801 First National Bank Building. Houston, Tex. : Chamber of Commerce Building. Indianapolis, Ind. : Chamber of Commerce Building. Jacksonville, Fla. : Chamber of Commerce Building. Kansas City, Mo. : 1028 Baltimore Avenue. Los Angeles, Calif. : 1163 South Broadway. Louisville, Ky. : 408 Federal Building. Memphis, Tenn. : 229 Federal Building. Minneapolis, Minn. : 213 Federal Building. New Orleans, La. : Room 225-A, Customhouse. New York, N.Y. : 734 Customhouse. Norfolk, Va. : 406 East Plume Street. Philadelphia, Pa.: 422 Commercial Trust Building. Pittsburgh, Pa.: Chamber of Commerce Building. Portland, Oreg. : 215 New Post Office Building. St. Louis, Mo. : 506 Olive Street. San Francisco, Calif. : 310 Customhouse. Seattle, Wash.: 800 Federal Office Building. Approved Code No. 275 — Supplement No. 2 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE CARBON DIOXIDE INDUSTRY As Approved on May 4, 1934 ORDER Supplementary Code of Fair Competition for the Carbon Dioxide Industry a division of the chemical manufacturing 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- mental Code of Fair Competition for the Carbon Dioxide Industry to the Code of Fair Competition for the Chemical Manufacturing Industry, and hearings having been duly held thereon and the an- nexed report on said Supplemental 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, I, Hugh S. Johnson, Administrator for Industrial Recovery, pursuant to authority vested in me by Executive Orders of the Presi- dent, including Executive Order No. 6513-A, dated December 30, 1933, and otherwise ; do hereby incorporate by reference said annexed report and do find that said Supplemental Code complies in all re- spects with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Supplemental Code of Fair Competition be and it is hereby ap- proved ; provided, however, that the provision of Article IV, Section 4, Contractual Relationship with Jobbers and/or Distributors, shall remain in force only for a period beginning with the effective date of this Code and ending on the last day of the sixth calendar month thereafter unless such period shall be -extended by the Administra- tor; and provided further that the provisions of Article IV, Section 2, insofar as they prescribe a waiting period between the filing with the Code Authority (i.e. actual receipt by the Code Authority) and the effective date of revised price lists or revised terms and conditions of sale be and they are hereby stayed pending my further order. Hugh S. Johnson, Administrator for Industrial Recovery. Approval recommended : George L. Berry, D ivision A dministrator. Washington, D.C. May 4, 1934. 56967° 544-30 34 (1) REPORT TO THE PRESIDENT The President, The White House. Sir : This is a report on the Supplemental Code of Fair Competi- tion for the Carbon Dioxide Industry, a division of the Chemical Manufacturing Industry, the hearing having been conducted thereon in Washington, D.C., February 21, 1934, in accordance with the provisions of Title I of the National Industrial Recovery Act. General Statement The Carbon Dioxide Industry as represented by The Carbon Diox- ide Institute, being truly representative of this Division of the Chemical Manufacturing Industry, has elected to avail itself of the option of submitting a Supplemental Code of Fair Competition as provided for in Articles XI and XII of the Basic Code for the Chemical Manufacturing Industry approved by you on the tenth day of February, 1934. Resume or the Code LABOR PROVISIONS Article I states "All provisions of the Code of Fair Competition for the Chemical Manufacturing Industry, as approved by the President on February 10, 1934, are hereby incorporated by reference as though completely set forth herein." Inasmuch as the Basic Code for the Chemical Manufacturing Industry, of which the Carbon Dioxide Industry is a division, con- tains the labor provisions and as one of the principal objects in having a basic code for the Chemical Manufacturing Industry was to furnish a master code for the entire Industry which covered wages and hours for all chemical products produced by the same company, the labor provisions specified in the Basic Code for the Chemical Manufacturing Industry are those applying to the Division of the Carbon Dioxide Industry. OTHER PROVISIONS Article II gives the necessary definitions applicable to this Division of the Chemical Manufacturing Industry. Although the Basic Code for the Chemical Manufacturing Industry is a code for manu- facturers, this Supplementary Code defines jobbers ami distributors within the metropolitan areas of plant and/or warehouse cities and this limited number of jobbers is bound by the Code to observe certain of the trade practice provisions in the qualified manner as described later in this report. (2) Article III establishes a Code Authority consisting of the Ex- ecutive Committee of The Carbon Dioxide Institute and one member of the Industry elected from those members of the Industry who are not members of The Institute or appointed by the Administrator if they fail to elect not more than three members to represent the Administrator who, however, shall have no vote. Article IV provides the trade practice provisions which shall apply to the Carbon Dioxide Industry. These provisions have been given a great deal of consideration in order that the Industry's re- quirements for eliminating destructive price competition may be adequately met without conflicting with the policies of the various advisory boards of the Administration. In this connection, Section 4 ? Contractural Relationship with Job- bers and/or Distributors, requires that every member of the Indus- try shall enter into a written agreement with his jobbers and/or distributors as previously defined, whereby such jobbers and /or distributors agree to file price schedules in accordance with Sec- tions 1 and 2 of Article IV, and to abide by certain other fair trade practice provisions and it requires that each member of the Industry file a copy of each agreement which he makes with a jobber and/or distributor with the Code Authority. This provision is regarded as essential by the Industry but in view of the reports of the Consumers' Advisory Board and of the Division of Research and Planning, pointing out the possible detriment to the consumer in the application of this provision, the order approving this Supplementary Code contains the following proviso : u * * * provided, however, that Section 4, Article IV, shall remain in force only for a period beginning with the effective date of this Code and ending on the last day of the sixth calendar month thereafter unless such period shall be extended by the Admin- istrator." Findings The Deputy Administrator in his final report to me on said Supplementary Code having found as herein set forth and on the basis of all the proceedings in this matter: I find that : (a) Said Supplementary Code is well designed to promote the policies and purposes 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 provide for the general welfare by promoting the organi- zation of industry for the purposes of cooperative action among the trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanctions and super- vision, by eliminating unfair competitive practices, by promoting the fullest possible utilization of the present productive capacity of industries, by avoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of industrial 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 me as a major industry. (c) The Supplementary Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant institute is an industrial association truly representative of the aforesaid Industry; and that said institute imposes no in- equitable restrictions on admission to membership therein. (d) The Supplementary Code is not designed to and will not permit monopolies or monopolistic practices. (e) The Supplementary Code is not designed to and will not eliminate or oppress small enterprises and will not operate to discriminate against them. (f) Those engaged in other steps of the economic process have not been deprived of the right to be heard prior to approval of said Supplementary Code. For these reasons, therefore, I have approved this Supplementary Code. Respectfully, Hugh S. Johnson, A dministrator. May 4, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE CARBON DIOXIDE INDUSTRY A DIVISION OF THE CHEMICAL MANUFACTURING INDUSTRY Article I — Purposes To effectuate the policies of Title I of the National Industrial Recovery Act, the following provisions are established as a Code of Fair Competition for the Carbon Dioxide Industry, a Division of the Chemical Manufacturing Industry, supplemental to the Chemical Manufacturing Industry Code, and upon approval by the Adminis- trator shall be, in conjunction with the basic code of the Chemical Manufacturing Industry, the standard of fair competition for this Industry. All provisions of the Code of Fair Competition for the Chemical Manufacturing Industry, as approved by the President on February 10, 1934, are hereby incorporated by reference as though completely set forth herein. Article II — Definitions The term " Carbon Dioxide Industry " as used herein means the production or conversion for sale of Carbon Dioxide in all of its physical phases and/or forms. The term " Member of the Industry " includes anyone engaged in the industry as above defined, either as an employer or on his own behalf. The term " jobbers and/or distributors within the metropolitan areas of plant and/or warehouse cities " shall be interpreted to mean any firm, corporation, partnership, association or person who pur- chases Carbon Dioxide from a Member of the Industry, and who resells said Carbon Dioxide to either the wholesale or retail trade located within the metropolitan areas of cities where Members of the Industry maintain plants and/or warehouses. The terms " President ", " Act ", and " Administrator " as used herein shall mean respectively the President of the United States, Title I of the National Industrial Recovery Act, and the Adminis- trator for Industrial Recovery. The term " Institute " as used herein shall mean the Carbon Diox- ide Institute, Inc., a corporation organized and existing pursuant to the Membership Corporation Law of the State of New York, having its office at 75 East 45th Street, New York, N.Y. The " Executive Committee " shall mean the Executive Committee of the Institute, which consists of seven members elected by and from the Board of Directors of said Institute. This Code shall become effective on the tenth day after it shall have been approved by the Administrator. (5) Article III — Administration Section 1. The Executive Committee and one Member of the Industry, who may be elected from those Members of the Industry who are not members of the Institute or appointed by the Adminis- trator if they fail to elect ? is hereby constituted the Code Authority for administering, supervising and promoting the performance and observance of the provisions of this Code. Section 2. The Administrator may name, without compensation from the Industry, not more than three (3) members who shall have the right to attend all meetings of the Code Authority dealing with questions concerning the administration of the Code, but such repre- sentative shall have no vote. Section 3. The Code Authority may use such trade associations and other agencies as it deems proper for the carrying out of any of its activities provided for herein, provided that nothing herein shall relieve the Code Authority of its duties or responsibilities under this Code. Section 4. Members of the Industry shall be entitled to participate in and share benefits of the administration of this Code and in any revisions or additions thereto by assenting to and complying with the requirements of this Code and sustaining their reasonable share of the expenses of its administration, by becoming a member of The Institute, and/or by paying to the Code Authority his pro rata share of the cost of creating and of administering this Code. Such pro rata share of the expenses shall be determined by the Code Authority on the basis of volume of business and/or such other factors as may be deemed equitable, subject to review by the Administrator. Section 5. Each trade or industrial association directly or indi- rectly participating in the selection or activities of the Code Author- ity shall (1) impose no inequitable restrictions on membership, and (2) submit to the Administrator for his approval true copies of its articles of association, by-laws, regulations, and any amendments when made thereto, together with such other information as to membership, organization, and activities as the Administrator may deem necessary to effectuate the purposes of the Act. Section G. In order that the Code Authority shall at all times be truly representative of the Industry and in other respects comply with the provisions of the Code and of the Act, the Administrator may prescribe such hearings as he may deem proper; and thereafter if he shall find that the Code Authority is not truly representative <>r does not in other respects comply with the provisions of the Code and of the Act, may require an appropriate modification in the composi- tion and method of selection of the Code Authority. Section 7. Nothing contained in this Code shall constitute the members of the Code Authority partners for any purpose. Nor shall any member of the Code Authority be liable in any manner to anyone for any act of an}' other member, officer, agent or employee of the Code Authority. Nor shall any member of the Code Authority, exercising reasonable diligence in the conduct of his duties hereunder, lie Liable to anyone for any action or omission to act under this Code, except for his own willful misfeasance or non-feasance. Section 8. The Code Authority shall obtain from members of the Industry such data and statistics, which shall be submitted by each member, upon its request or upon the request of the Administrator, as are required for the administration of this Code, except those in relation to number of employees, hours of labor and rates of pay, which are collected by the Chemical Alliance, Inc., in accordance with Article V, Section (a) of the Code of Fair Competition for the Chemical Manufacturing Industry. The data and statistics called for by the Code Authority which are of a confidential nature shall be collected by a disinterested agency or confidential agent and shall be revealed by such agency or agent only in summary form ; provided that when an alleged violation of any code provision occurs which requires the collection of data and statistics of a confidential nature, the disinterested agency or confidential agent shall reveal the data and statistics furnished by the alleged violator if the alleged viola- tion is sustained or is in doubt. Section 9. If the Administrator shall determine that any action of the Code Authority or any agency thereof may be unfair or unjust or contrary to the public interest, the Administrator may require that such action be suspended to afford an opportunity for investiga- tion of the merits of such action and further consideration by such Code Authority or agency pending final action which shall not be effective unless the Administrator approves or unless he shall fail to disapprove after thirty days' notice to him of intention to proceed with such action in its original or modified form. Article IV — General Trade Practice Provisions Section 1. Price Lists. — Within fifteen days after the effective date of this Code each member of the Industry shall publish and file with the Code Authority, upon forms and under rules and regu- lations prescribed by the Code Authority subject to review by the Administrator, its price lists for Carbon Dioxide. Such price lists shall show the current price per pound, discounts, terms of payment and conditions of sale for Carbon Dioxide, including the terms which apply to cylinders and/or other containers. The Code Au- thority shall immediately send copies thereof to all known members of the Industry in the regions where the aforesaid price lists apply. Section 2. Revised Price Lists. — Revised price lists may be filed from time to time thereafter with the Code Authority by any Mem- ber of the Industry to become effective five (5) days from the date of receipt of the revised price list. A copy of each revised price list, with notice of the effective date thereof, shall be sent promptly by the Code Authority to every known Member of the Industry in the regions where the aforesaid revised price lists apply. Any Member of the Industry may file a new or changed price list to meet the terms of a competitor's price list and to become effective upon the date that the competitor's price list becomes effective if a copy of the new price list is filed with the Code Authority before such effective date. 1 Section 3. Adherence to Price Lists. — No Member of the Industry shall sell, directly or indirectly, by any means whatsoever, Carbon 1 See paragraph 2 of order approving this Code. 8 Dioxide at a price lower or at discounts greater than those published by him nor shall he sell on terms of payment or conditions of sale which differ in any respect from those provided in his current price lists. Section 4. Contractual Relationship ivith Jobbers and/or Dis- tributors. — Every Member of the Industry shall enter into a written agreement with his jobbers and/or distributors within the Metro- politan areas of plant and/or warehouse cities whereby such jobbers and/or distributors agree to file price schedules in accordance with Sections 1 and 2 of Article IV of this Code and to abide by Sections 3, 5, 6, 7 and 8 of Article IV and Section 2 of Article V and Sec- tion 2 of Article VI. The Code Authority shall require each Mem- ber of the Industry to file a copy of each agreement which he may make with a jobber and/or distributor. 2 Section 5. Misrepresentation or False or Misleading Advertis- ing. — To falsely or misleadingly advertise, label or brand any Solid Carbon Dioxide or container of Carbon Dioxide shall be an unfair trade practice. Section 6. False Marking or Branding. — To place deceptive brands or trade marks, or brands or trade marks similar to those of other Members of the Industry on any Solid Carbon Dioxide or any container of Carbon Dioxide shall be an unfair trade practice. Section 7. Interference with Contractual Relations. — To mali- ciously induce or attempt to induce the breach of an existing contract between a competitor and his customer or source of supply or to maliciously interfere with or obstruct the performance of any such contractual duties or services shall be an unfair trade practice. Section 8. Secret Rebates. — No Member of the Industry shall secretly offer to make or make to any customer any payment or allow- ance of a rebate, refund, commission or credit; or give any unearned discount or excess allowances, whether in the form of money or otherwise, except as published in their price list, nor shall a Member of the Industry offer or extend to any customer any special service or privilege not extended to all customers of the same class, for the purpose of influencing a sale. Article V — Solid Carbon Dioxide Section Trade Practices Section 1. Experimental and Development Uses. — No free sample shall be given except that for the purpose of encouraging the devel- opment of new uses commercially a reasonable quantity of Solid Carbon Dioxide may be furnished to a prospective purchaser or sold below the published schedule of prices, provided that such purchaser has not previously purchased Solid Carbon Dioxide commercially for any purpose and further provided that such Member of the In- dustry shall furnish the Code Authority with the name and address of such prospective purchaser, together with information as to the intended use of Solid Carbon Dioxide, the price per pound, dis- counts, terms of payment and conditions of sale applying to such Solid Carbon Dioxide furnished to such prospective purchaser. The information is to he considered as confidential by the Code Authority and shall not he disclosed to any other Member of the Industry. "See paragraph 2 of order approving this Code. Section 2. Misuse of Containers. — To furnish Solid Carbon Diox- ide for use in containers which bear another's identification marks without the permission of such other Member of the Industry evi- denced by a bill of sale, lease or other instrument in writing shall be an unfair trade practice. Article VI — Liquid Carbon Dioxide Section Trade Practices Section 1. Delinquent Cylinder and Container Accounts. — Each Member of the Industry of the Liquid Carbon Dioxide Section shall, once in each period of ninety days, file with the Code Authority a list stating the name and address of each customer who has failed to conform to the terms under which its cylinder property has been furnished to such customer. Section 2. Misuse of Containers. — To fill with ; or use in the trans- portation of, Liquid Carbon Dioxide any container which does not have the official approval which may be required by any Federal, State, Municipal and other Governmental agencies or departments, or those which bear a competitor's identification mark without the permission of such competitor evidenced by a bill of sale, lease or other instrument in writing, shall be an unfair trade practice. Article VII — Modification The President may from time to time cancel or modify any order, approval, license, rule or regulation issued under Title I of the National Industrial Recovery Act. Such of the provisions of this Code as are not required by the National Industrial Recovery Act to be included herein may, with the approval of the Administrator, be modified or eliminated as changed circumstances or experience may dictate. A study of the trade practices of the Carbon Dioxide Industry will be made by the Code Authority with the intention of submitting from time to time amendments to this Code applicable to one or more subdivisions of the Carbon Dioxide Industry. Approved Code No. 275 — Supplement No. 2. Registry 699-20. O UNIVERSITY OF Fl ORIDA 3 1262 08850 4500