1/ NATIONAL RECOVERY ADMINISTRATION CODE OF FAIR COMPETITION FOR THE LEATHER CLOTH AND LACQUERED FABRICS INDUSTRY AS SUBMITTED ON AUGUST 28, 1933 REGISTRY No. 999—1—02 The Code for the Leather Cloth and Lacquered Fabrics 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 approvaLof the National Recovery Administration as applying to this industry .... u U.S. : 'DRY WE DO OUR PART UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1933 For sale by the Superintendent of Documents, Washington, D.C. Price 5 cents 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/supplementarycod2612unit CODE OF FAIR COMPETITION FOR LEATHER CLOTH AND LACQUERED FABRICS INDUSTRY ADOPTED AT INDUSTRY MEETING, HOTEL COMMODORE, NEW YORK, N.Y., AUGUST 16, 1933 For the purpose of complying with the provisions of Title I of the National Industrial Recovery Act, and effectuating the policy of Congress as declared in said Act, insofar as applies to the within Industry, the following conditions and principles are adopted as a Code of Fair Competition (hereinafter referred to as the "Code"), for the Leather Cloth and Lacquered Fabrics Industry. Article I — Definitions (a) "Act" means National Industrial Recovery Act. (b) "President" means the President of the United States of America. (c) "Administrator" means the duly appointed representative of the President to administer the National Industrial Recovery Act. (d) "Institute" means the Institute of Leather Cloth and Lac- quered Fabrics Manufacturers, 103 Park Avenue, New York City. (e) "The Industry" means and includes the business of manufac- turing and selling all leather cloth and lacquered fabrics or kindred Pyroxylin coated fabrics. (f) "Persons" means natural persons, partnerships, associations, corporations, and trusts, including trustees in bankruptcy and re- ceivers. (g) "Productive Machinery" as used in this Code means coating machines and/or other equipment by which additional weight of Pyroxylin coating is applied, not includirig printing and/or spraying machines. (h) "Effective Date" means the first Monday after the first Tues- day after this Code is duly approved by the President. Article II — Membership Any member of the Industry is eligible for membership in the Institute. The provisions of this Code insofar as provided by the Act shall be applicable to all members of the Industry, and each member thereof shall be responsible for his pro rata share of reason- able costs and expenses for creating and administering this Code. Article III — Hours of Labor, Rates of Pay, Minors, and Other Conditions of Employment Section 1. Hours of Labor. — (a) This section shall be applicable to all employees except salesmen and those occupying executive, admin istrative, supervisory, or technical positions. 8222—33 ( \ ) (b) On and after the effective date, the hours of work for employees, except those enumerated above and hereinafter, shall be limited to a maximum of forty (40) hours per week, except that if for any reason it is necessary to require a greater rate of weekly work for certain employees, this shall be adjusted so that the total time worked per employee in any consecutive period of six (6) months shall not exceed an average of forty (40) hours per week, but no employees shall be employed more than forty-eight (48) hours in any one week. (c) On and after the effective date, the maximum hours of labor of repair shop crews, engineers, firemen, electricians, and watchmen in the Leather Cloth and Lacquered Fabrics Industry shall, except in case of emergency work, be forty (40) hours a week with a tolerance of ten (10) percent. Any emergency time in any mill shall be reported monthly to the Institute. (d) On and after the effective date, the maximum hours of labor for office employees in the Industry shall be on an average of forty (40) hours per week in any consecutive period of six (6) months. Sec. 2. Minimum Wages. — On and after the effective date the min- imum wage that shall be paid by employers in the Leather Cloth and Lacquered Fabrics Industry to any of their employees shall not be less than forty (40) cents per working hour. In the case of any em- ployee whose compensation is based upon a measure other than time, the total compensation paid shall be no less than such employee would be entitled to receive if his compensation were measured by a time rate; but nothing contained in this Section 2 shall be considered as an attempt to set a maximum pay for anyone employed in the Industry. Provided, however, that where a State law specifies a higher minimum wage no member of this Industry shall employ within such State any person at a rate below the wage specified by such State law. Sec. 3. Minor Labor. — On and after the effective date, employers in the Leather Cloth and Lacquered Fabrics Industry shall not employ any person under sixteen (16) years of age. Provided, however, that where a State law specifies a higher minimum age, no member of this Industry shall employ within such State any person below the age specified by such State law. Sec. 4. Employee Organization and Bargaining. — (a) 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 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) No employee, and no one seeking employment in the Industry, shall be required as a condition of employment, to join any company union, or to refrain from joining, organizing, or assisting a labor organ- ization of his own choosing. (c) Employers shall comply with the maximum hours of labor, minimum rates of pay, and other conditions of employment, approved or prescribed by the President. Article IV— Plant-Machine Hours Employers in this Industry shall not operate productive ma- chinery a total of more than two (2) shifts of forty (40) hours each per week, averaged over any consecutive six months' period, but not more than ninety-six (96) hours in any one week. Article V — Administration The Institute is hereby designated the Agency to cooperate with the Administrator in administering, supervising, and promoting the performance of the provisions of this Code by the members of the Industry. Article VI — He ports (a) With a view to keeping the President and the National Re- covery Administration informed as to the observance or nonobserv- ance of this Code, and as to whether the members of the Industry are taking appropriate steps to effectuate the declared policy of the Act, and to provide for making available to the Administration and mem- bers of the Industry information concerning the Industry, each mem- ber of the Industry shall prepare and file with the Secretary of the Institute and to be distributed by the Institute at such times and in such manner as herein or hereafter may be prescribed by the Industry, reports and statistical data covering and relating to the number of persons employed, wage rates, hours of work, plant and machine nour operations, volume of production, volume of sales and/or ship- ments billed, consummated sales, stocks on hand, plant capacity, and productive machinery owned and/or in place, and such other data as may be useful to the Industry which may be specified or required by the Industry, subject to the approval of the Administrator, or by the Administrator. (b) Upon the effective date or at such time thereafter as the Industry may determine, each member of the Industry shall file with the Institute a complete list of those products now covered by the Institute's activities, with a complete description of such goods, including construction, color and finish thereof. And each member of the Industry shall, at such time, file with the Institute price sched- ules, price fists, discount sheets, and/or a list of all prices, currently made, for all classes of customers, covering all such products of the Industry, including therein base prices, net prices, basing points, terms, discounts, allowances and all conditions relating to or in any wise affecting any sale of the same. Whereupon the Institute shall immediately send copies of the same to all members of the Industry who have signed or approved this Code, or who may be subject to this Code and who have so filed with the Institute such schedules, lists, discount sheets or statements of currently made prices. (c) Revised price schedules, lists, discount sheets, and/or statements of current prices or changes therein, may be so filed from time to time thereafter by any member of the Industry to become effective upon the date specified therein, but such schedules, lists, discount sheets and /or statements of current piices or changes therein, shall be fiied with the Institute ten days in advance of the effective date, unless the Industry shall authorize a shorter period. Thereupon copies of all such revised schedules, lists, discount sheets and/or statements of current prices or changes therein, with notice of the effective dates thereof specified, shall be immediately sent by the Institute to all such members of the Industn T , who thereupon may file, if they individually so decide, to be promptly and similarly distributed, revisions of their price schedules, lists, discount sheets and/or state- ments of current prices or changes therein, which shall become effective upon the date when the revised price schedules, lists, dis- count sheets and/or statements of curent prices or changes therein first filed shall go into effect. (d) No member of the Industry shall sell directly or indirectly by any means whatsoever any product of the Industry covered by the provisions of paragraphs (b) and (c) of this Article VI at a price lower, or at discounts greater, or on more favorable terms of payment than those provided in his current price schedules, lists, discount sheets, and/or statements of currently made prices, filed and dis- tributed as herein provided. (e) All reports, statistics, data, and information filed in accordance with the provisions of this Code shall be duly certified, when re- quested by the Institute or the National Recovery Administration, and the same shall be confidential; the individual figures and data filed by each member of the Industry shall be compiled with similar reports and data from the other members of the Industry, and. dis- tributed to members of the Industry in combined totals, except as may be otherwise specified by the Institute. In no event shall the individual reports of volume of production, volume of sales, orders received, unfilled orders, or stocks on hand, be revealed or disclosed by the Secretary of the Institute, except as may be required by the National Recovery Administration for the purpose of facilitating the administration and enforcement of the Act and the provisions of this Code. (f ) Prior to the installation of additional productive machinery by members of the Industry, or persons engaging in this Industry, except for the replacement of similar productive machinery, the Institute may make recommendations to the Administrator that such persons shall first secure certificates from the Administrator that such installation of productive machinery wall be consistent with the effectuating of the policy of the Act during the period of the emer- gency, and also recommendations for the granting or withholding by the Administrator of such certificates if so required by him. Article VII — Trade Practices Upon the effective date of this Code, ethical and commercial prin- ciples and practices as set forth in Exhibit "A" hereto annexed and made a part of this Code, shall be observed as standards for this Industry, and deviation therefrom or violations thereof shall be regarded as a violation of this Code. Article VIII — Verification of Reports — Trade Practices All reports, statistics, data, and information required by this Code to be filed with the Institute and the trade practices set forth in said Exhibit "A" shall be subject to verification and the checking of the books and records of the members of the Industry, by a competent and disinterested person at such time or times, and by such person or persons as may be determined by the Institute. Provided, if it should appear as determined by such disinterested person or persons that the reports, statistics, or data were not filed when and as required by this Code, or were wilfully inaccurate, or that any member of the Industry had indulged in trade practices in violation of this Code, the expense of such verifying work shall be paid to the Institute by the member of the Industry so in default. Article IX — Application If any employer of labor in the Industry is also an employer of labor in any other industry, the provisions of this Code shall apply to and affect only that part of his business which is included in this Industry. Article X — Cancellation or Modification of Government Approval As required by Section 10 (b) of Title I of the Act, the following provisions are contained in this code: The President may from time to time cancel or modify any order, approval, license, rule, or regulation issued under this Title I. Article XI — Amendments Such of the provisions of this Code as are not required to be included therein by the National Industrial Recovery Act may, with the ap- proval of the President, be modified or eliminated as changes in the circumstances or experience may indicate. It is contemplated that from time to time supplementary provisions to this Code, or additional Codes will be submitted for the approval of the President to prevent unfair competition in price and other unfair and destructive competi- tive practices and to effectuate other purposes and policies of Title I of the National Industrial Recovery Act consistent with the provisions thereof. Approved at meeting on August 16th, 1933, attended (in person or by proxy) by the following manufacturers, representing a substantial majority of the industry (estimated at over 90%, both in volume and number): Athol Manufacturing Com- pany. Bowen Mills, Inc. L. E. Carpenter & Co., Inc. L. C. Chase & Company. Coated Textile Mills, Inc. Cotex Corporation. E. I. Du Pont de Nemours & Company. The Federal Leather Com- pany. The Holliston Mills, Inc. The Keratol Company. Leather Finish Fabrics, Inc. The Masland Duraleather Company. The Pantasote Leather Com- pany. The Permatex Fabrics Com- pany. The Standard Textile Prod- ucts Co. Textileather Corporation. The Western Shade Cloth Company. Weymouth Art Leather Com- pany. The Zapon Company. Exhibit "A" TRADE PRACTICES No member of the Industry shall adopt any of the trade practices enumerated in this Exhibit, and the indulgence in any such trade practices shall be regarded as an unfair method of competition, and a violation of this Code: 1. Interference with Existing Contracts. — Knowingly or wilfully in- terfere with an existing contract for the sale and purchase of products of this Industry, nor induce, attempt to induce, or assist a party to break an existing contract for the sale of any products of this Industry. 2. Commercial Bribery. — Offer, give, or pay money or anything of value to anyone in order to induce the sale, purchase, or use of the products of this Industry. 3. Defamation of Competitors. — Wilfully make, cause, or permit to be made or published, any false statements or misrepresentations of or concerning the business, policies, methods, or products of a com- petitor. 4. Enticing Employees. — Employ or entice employees of a compet- itor with the purpose and effect of unduly hampering, injuring, or embarrassing said competitor. 5. Piracy of Trade Marks. — Imitate trade marks, trade names, slogans, or other marks of identification of another member of the Industry. 6. False Advertising. — Make, cause, or permit to be made or pub- lished any false, untrue, or deceptive statement byway of advertising or otherwise, concerning any grade, quality, substance, character, origin, or preparation of any product of this Industry. 7. Misbranding. — Falsely mark or brand packages or products of this Industry, for the purpose or with the effect of misleading or deceiving purchasers or others with respect to quality, quantity, character, grade, or substance thereof. 8. False Invoicing. — Withhold from or insert in invoice facts which would make the invoice a false record wholly or in part of the transac- tion in question, or make any arrangement which would contemplate payment or settlement contrary to the face of the invoice. 9. Post-Date or Pre-Date Contract or Invoice. — Post-date or pre-date contracts or invoices covering products of this Industry. 10. Guaranty Against Price Decline. — Guarantee against price de- cline. 11. Secret Rebates. — Pay or allow secretly, rebates, refunds, com- missions or discounts, whether in the form of money or otherwise. 12. Requirement Contracts. — Accept requirement contracts. All contracts or orders shall be for a definite yardage with not more than a plus or minus tolerance of 10%, and for deliveries within a definite period. 13. Disposition of Non-Prime Materials. — Sell seconds, pound goods, scrap, slow-moving stock, etc., domestically, below his mini- mum price for prime quality in excess of 5% by volume of his sales in any three (3) months. If any manufacturer has an accumulation of more than 5% of such goods, such case shall be referred to the Institute for equitable disposition. All such non-prime material to be plainly described on tags, in acknowledgments of orders, and in invoices therefor. 14. Advertising Allowances. — Make any advertising allowances, directly or indirectly, to any person, or offer free advertising to induce a sale. o UNIVERSITY OF FLORIDA 3 1262 08495 2612