UNIVERSITY OF FLORIDA 3 1262 08486 7596 Registry No. 1013—06 NATIONAL RECOVERY ADMINISTRATION PROPOSED CODE OF FAIR COMPETITION FOR THE DRY GROUND MICA INDUSTRY AS SUBMITTED ON AUGUST 31, 1933 The Code for the Dry Ground Mica 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 DRY GROUND MICA ASSOCIATION CODE OF FAIR COMPETITION AND DECLARATION OF POLICY ADOPTED BY THE DRY GROUND MICA ASSOCIATION Section I. In order to cooperate fully with the United States Government to overcome the present national emergency, the Dry Ground Mica Association, as the national association of the Dry Ground Mica Industry, devoted entirely to promoting fair competi- tion in this industry, hereby declares its support of the objectives of the National Industrial Recovery Act. The term Dry Ground Mica as used hereinafter includes: (1) Dry Ground Mica produced by the grinding of Shop or Scrap Mica, (2) Dry Ground Mica Schist, and (3) Underground Mica Screenings from China Clay Washings. As applied to this industry, these objectives are: a. To remove obstructions to the free flow of the aforesaid prod- ucts in interstate commerce which tend to diminish the amount thereof. b. To promote the organization of the entire industry for the purpose of cooperative action ir the said industry and of cooperation by this association with such other divisions of this industry as may be necessary for the purposes of the national emergency. c. To induce and maintain united action of labor and management in the said industry, and where necessary, with other allied indus- tries, under such governmental sanction and supervision as may be promulgated under the National Industrial Recovery Act. d. To eliminate unfair competitive practices in this industry. e. To reduce and relieve unemployment in this industry. f . To improve standards of labor in this industry and in the allied subdivisions of these industries, and otherwise to rehabilitate the said industry. Administrative Agency Sec. II. A. To effectuate the policy of this Code, the officers of this association are hereby authorized, with the approval and under the direction of the Board of Directors, to establish agencies to collect and compile such information as they may deem necessary, to employ an administrator, and to levy yearly dues of one hundred dollars ($100.00) per member, payable semiannually in advance, and to make additional assessments against the members, each mem- ber to be assessed his pro-rata share, such money to be used for the carrying out and enforcing jf this Code among all members of the industry. Each member is to be assessed one and one half percent (l 1 /2% ) of his gross sales, payable monthly to the administrator. If, in the judgment of the Board of Directors, tJais amount does not prove 9466—33 (1) sufficient, additional pro-rata assessments may be levied. In the event that at the end of any six months' period there remains a surplus in the treasury of the association refunds may be made to the members in proportion to their assessments, upon order of the Board of Directors, the respective amounts thereof to be determined by the administrator. B. The Board of Directors of the Association may delegate any of its functions and powers under this Code to such members, com- mittees, or agencies, as it may designate or appoint. C. This Code shall cease to be in effect, and any agency established hereunder shall cease to exist, at the expiration of two years after the date of the enactment of the National Industrial Recovery Act, or sooner, if the President of the United States shall, by proclama- tion, declare that the emergency recognized by Section I of the National Industrial Recovery Act has ended. Any provision for the continuance of parts of this Code after its discontinuance by the national law, shall be made by voluntary agreement of such members of this association as may wish to continue them under any form of association that they may elect. Membership or the Dry Ground Mioa Association Sec. III. A. The association does not intend to impose any in- equitable restrictions on admission to membership therein, and, in order to be truly representative of the industry, will invite all manu- facturers of Dry Ground Mica and all new manufacturers as they come into existence, to join the association. B. The articles of the Code in Section V below are designed to prevent monopoly and to prevent the elimination or oppression of small enterprises in the said industry, and will not operate to dis- criminate against them and will tend to effectuate the declaration of policy of this Code. This association will accept and abide by and carry out such conditions (including requirements for the mak- ing of reports and the keeping of accounts) for the protection of customers, consumers, competitors, employees, and others, and in furtherance of the public interest, and such exceptions to and ex- emptions from the provisions of this Code as the President of the United States, or his duly authorized agent or administrator, deems necessary to effectuate the policies of the government. Violations of the Code Sec. IV. Ten days after the President of the United States or his duly authorized agent or administrator shall have approved this Code, the provisions of this Code shall be the standards of fair competition of the Dry Ground Mica Industry. Any violation of such standards in any transaction in or affecting interstate commerce in said products shall be deemed an unfair method of competition in commerce within the meaning of the Federal Trade Commission Act as amended. Any violation of any provision of this Code shall be reported by any member of this association. Such violation shall be investigated by the administrator of this association, who shall report to the Board of Directors of the association with a recom- mendation as to the innocence or guilt of the party or parties in- volved and as to the penalty to be imposed. If the Board of Direc- tors of the association decide that a violation has occurred, the said Board of Directors may set a penalty or penalties equal to 50% of the amount of the transaction involved, the violation to be based on the list price last filed by the violator or violators. When there occurs a violation of this Code which does not involve a sale or other measurable matter of dollars and cents, the Board of Direc- tors shall impose a suitable penalty. Expenses of investigating a violation or violations shall be added to the penalties assessed. AH penalties and assessments shall be payable to the treasurer of the Institute and used to defray its expenses of operation. All penal- ties shall include the expenses of investigating the violation or viola- tions. If the penalty is accepted by the guilty party and paid to the treasurer of this association, the matter shall end forthwith. If, after a fair hearing and a decision, supported by a majority vote of the Board of Directors, the violator of the Code shall not promptly accept and pay the penalty imposed, the administrator shall report the violator to the President of the United States or to his duly authorized agent or administrator, or directly to a district attorney of the United States or to a United States District Court, as pro- vided in Section VII of the National Industrial Recovery Act. Articles of Code Sec. V. A. Cooperation between employer and employee. Recog- nizing the stability of reasonable profit can come only from increased purchasing power of the great majority of our domestic population, and since wage- workers make up that great majority, this association will first aim its cooperative work at increasing employment, raising wages, and improving conditions of labor in the Dry Ground Mica Industry. Therefore : a. Employees of every manufacturer of Dry Ground Mica 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 -organiza- tion or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection ; b. No employee or no one seeking employment shall be required by any manufacturer of Dry Ground Mica as a condition of employ- ment to join any company union or to refrain from joining, organ- izing, or assisting a labor organization of his own choosing; c. All manufacturers of the above-named products shall comply with the maximum hours of labor, minimum rate of pay, and other conditions of employment approved or prescribed by the President. d. On and after the effective date, employers in the Dry Ground Mica Industry shall not operate on a schedule of hours of labor for their employees — except repair shop crews, engineers, electricians, firemen, sales, office and supervisory staff, shipping, watching, and outside crews and cleaners — in excess of 40 hours per week which shall be the standard maximum hours per week. However, in view of weather conditions which usually influence the closing of plants during a few weeks of rainy weather, an em- ployer may, with the consent of the administrator of this association increase the weekly hours of labor during certain periods, provided that in no case shall any laborer, other than those included in the exceptions hereinabove named, be permitted to work more than a total of 1,040 hours during either the six months' period beginning February 1 and ending July 31, or the six months' period beginning August 1 and ending January 31 of any one year. e. The minimum rate of pay in the said industry shall be 30$ per hour unless the hourly rate for the same class of work on July 15, 1929, was less than 30$ per hour, in which latter case the minimum rate shall not be less than the hourly rate paid on July 15, 1929, and in no event less than 25$ per hour. f. No minor under the age of sixteen (16) years shall be em- ployed in the Dry Ground Mica Industry. B. Cooperation between competitors. 1. Fair price scale, a. In order to be able to shorten hours, establish standard maximum hours of work lower than present hours, and pay higher wages than at present in the above-named industry, it will be necessary to charge a price for the products which will cover all these costs and provide a reasonable profit. b. To ascertain these costs, a uniform, accurate cost-accounting system is necessary, and every manufacturer of Dry Ground Mica shall use an accounting system and a costing system which is to be prepared by the administrator of this association. No manufacturer shall sell or exchange any products of his manufacture at a price, or upon such terms or conditions that will result in the customer paying for the goods received, less than the cost to the seller, deter- mined in accordance with the uniform and standard method of cost- ing hereinabove prescribed, provided, however, that inventories which must be converted into cash to meet emergency needs may be disposed of in such manner and on such terms and conditions as the administrator may approve, and as are necessary to move such prod- ucts into buyer's hands. Each manufacturer of Dry Ground Mica shall immediately upon adoption of this Code by a majority of the industry, file with the administrator of this association a complete price list individually prepared by him, showing his current prices and terms of payment, and the administrator shall immediately send copies thereof to all known manufacturers of Dry Ground Mica by telegram. Revised price lists may be filed from time to time thereafter with the administrator of this association by any manufacturer of Dry Ground Mica, to become effective ten days after filing and copies thereof, with notice of the effective date specified, shall be immedi- ately sent to all known manufacturers of such product who thereupon may file, if they so desire, revisions of their price lists which shall become effective upon the date when the revised price list first filed shall go into effect. The administrator of this association shall call for monthly cost reports from all manufacturers of Dry Ground Mica for the purpose of making regular periodic comparisons of all elements of cost among the various manufacturers with a view of reducing such cost, espe- cially for those whose costs may be unusually high. c. Every manufacturer of Dry Ground Mica shall send to the administrator of this association a duplicate copy of each invoice of sale and of any contract entered into for the sale of any of his products. d. Prices on above-named products are made by some manufac- turers themselves and in some cases by their selling agents. Prices, as referred to in this Code, are those prices made for the manufac- turer's product by himself or by his agent. e. Carload lot prices shall apply only upon single shipments. When, however, goods are moved by truck, 24 hours may be allowed for completing a delivery of a carload. f. All bags filled with mica are to be billed at a uniform price, according to size. The prices thereof are to be included in the price list to be filed with the administrator. g. Each manufacturer is to establish a uniform cash discount which is also to be included in the price list to be filed with the adminis- trator. h. All deviations from standards of prices shown in these price lists, or all deviations from standards adopted by the association, shall be reported promptly and voluntarily by each manufacturer of Dry Ground Mica to the administrator of this association. Each manufacturer shall reply promptly and accurately to any inquiries by the administrator as to any of his prices, terms, standards, or any trade practices having a bearing on prices. i. In order to have stability of prices, it is necessary to prevent over-production. To prevent over-production, supply and demand of above-named products must be known and kept in equilibrium. This requires at least monthly statistical information covering the whole industry regarding supply and demand of above-named prod- ucts in the hands of importers and domestic producers, selling agents, nnd other distributors. Totals of this statistical information, with- out the possibility of any one concern's figures being revealed to other members of the industry, shall be made available to the entire industry. To prevent over-production, there is also required a con- trol of production by a fair quota system, but this association be- lieves in first trying out the effects of complete current knowledge of supply and demand, to ascertain whether, with such knowledge generally available to all importers and manufacturers, over-produc- tion cannot be sufficiently controlled. Thereafter, the administra- trator of this association will gather and compile from all importers and manufacturers and other sources, and distribute to the members of this association, complete current information on the supply and demand of the above-named products. j. Members shall file with the administrator of this Institute, upon his demand, reports covering employment, hours, wages, stocks, ship- ments, orders, and other facts to be used for statistical purposes, but never so used as to reveal the figures of any one member. Unfair Trade Practices Sec. VI. The following trade abuses and nuisances are unfair and uneconomic, or both, and are prohibited and must be discontinued upon order of the Board of Directors of this association, conveyed to all manufacturers of Dry Ground Mica. 1. The defamation of competitors by falsely imputing to them dishonorable contracts, inability to perform contracts, questionable credit standing, or by false representation or false disparagement of the grade or equality of their goods, with the tendency and capacity to mislead or deceive purchasers, or prospective purchasers, is an unfair trade practice. 2. Indirectly or directly to give or permit to be given, or offer to give, money or anything of value to agents, employees, or representa- tives of customers or prospective customers, or to agents, employees, or representatives of competitors' customers or prospective customers, without the knowledge of their employers or principals, as an in- ducement to influence their employers or principals' purchase or con- tract to purchase any of above-named products from the nature of such gifts or offer, or to influence such employers or principals to re- strain from dealing or from attempting to deal with competitors, is an unfair-trade practice. 3. Maliciously inducing or attempting to induce the breach of exist- ing contract between competitors and/or customers by any false or deceptive means whatsoever, or interfering with or obstructing the performance of any such contractual duties, or services by any such means, with the purpose and effect of unduly hampering, injuring, or embarrassing competitors in their business, is an unfair-trade practice. 4. Maliciously enticing away the employees of competitors with the purpose and effect of unduly hampering, injuring, or embar- rassing competitors in their business, is an unfair-trade practice. 5. Labor under insanitary or other conditions to be agreed upon by the Board of Directors of this association as undesirable, or for longer working hours per week than the maximum to be adopted by the association, or at lower wages than the minimum wages adopted for the Dry Ground Mica Industry are hereby prohibited. Support or This Institute Sec. VII. Inasmuch as the work of the Dry Ground Mica Associa- tion under this Code will be of great benefit to the entire Dry Ground Mica Industry and will contribute to the relief of the national eco- nomic emergency, all manufacturers of any of the above-named prod- ucts, whether they are members of the association or not, shall con- tribute to the financial support of the association on a fair propor- tionate basis as hereinabove provided. All manufacturers of any of the above-named products shall be invited to become members of the Dry Ground Mica Association and they may remain as members as long as they perform the obligations laid down by this Code. The utmost endeavors of the association will be used to induce all manu- facturers of any above-named products to become members of the association but if any manufacturer of any above-named products refuses or fails to become a member of the association, all of the pro- visions and penalties shall be applied to that manufacturer, just as if he were a member of this association. In case any manufacturer of any of the above-named products should not join this association within 30 days after having received such an invitation, application will be made by this association to the President of the United States, or his duly authorized agent or administrator, to compel such manufacturer to join the association and to contribute his proportionate share to the financial support of the association under its rules and regulations, or else be subject to the penalties provided under Section IV-B of the National Industrial Recovery Act. Each corporation, partnership, or individual, doing business as a separate firm, shall have one vote in the affairs of this association. This Code of fair competition shall be considered to be the repre- sentation of the views of the Dry Ground Mica Industry when it shall have been signed by three firms manufacturing the above- named products. This Code of fair competition is to be in effect and become opera- tive ten days after approval by the President of the United States or his regularly authorized representative. The Dry Ground Mica Association is hereby designated as the agency to conduct all negotiations with the National Recovery Administration and to enforce the provisions of this Code. The Board of Directors of the Dry Ground Mica Association is hereby designated as a standing Committee to represent this Indus- try in all negotiations with the National Recovery Administration. We, the undersigned manufacturers of Dry Ground Mica, hereby subscribe to the above code of the Dry Ground Mica Industry. August 10, 1933. o Digitized by the Internet Archive in 2011 with funding from University of Florida, George A. Smathers Libraries with support from LYRASIS and the Sloan Foundation http://www.archive.org/details/proposedcodeoffa7596unit