Registry No. 1702—19 
 
 NATIONAL RECOVERY ADMINISTRATION 
 
 PROPOSED CODE OF FAIR COMPETITION 
 
 FOR THE 
 
 MOUNTERS AND FINISHERS 
 INDUSTRY 
 
 AS SUBMITTED ON AUGUST 28, 1933 
 
 UNIV. OP FiwikfcouRPArtr 
 
 .S. DEPOSITORY 
 
 The Code for the Mounters and Finishers 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 
 
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/proposedcodeoffa8482unit 
 
CODE OF FAIR COMPETITION SUBMITTED BY THE ASSO- 
 CIATION OF MOUNTERS AND FINISHERS, INC. 
 
 Article I — Description of the Business 
 
 The Association of Mounters and Finishers, Inc., represents that 
 branch of the Graphic Arts industry engaged in the business of 
 mounting, and/or die cutting and/or easeling and/or finishing of all 
 types of mounted cardboard window and other advertising displays. 
 
 Article II — Purpose 
 
 To effectuate the policy of Title I of the National Industrial Re- 
 covery Act, during the period of emergency, by increasing employ- 
 ment, establishing fair and adequate wages, effecting the necessary 
 reduction in hours of employment, improving the standards of labor, 
 eliminating competitive practices destructive to the best interests of 
 the public, employees, and employers, relieving the disastrous effects 
 of overcapacity, restoring the income of the enterprises within the 
 industry to levels which will make it possible to pay such prescribed 
 and adequate wages and avoid the further depletion and destruction 
 of capital assets, the following provisions are established as a code of 
 fair competition for the Association of Mounters and Finishers, Inc. 
 
 Article III — Participation 
 
 Membership in the Association of Mounters and Finishers, Inc., 
 and participation in this code and any subsequent revision of or addi- 
 tion to, shall be open to any member of the industry. There are no 
 initiation or entrance fees and no restrictions on the qualifications for 
 membership, other than each member agrees to abide by the pro- 
 visions of the code, the Constitution and By-Laws of the Associa- 
 tion, the code of uniform terms and conditions for quotations and 
 sales, and be responsible for his proportionate share of the expense of 
 the Association necessary for the administration of the code and any 
 other activities which may be agreed upon by a majority vote of the 
 membership. 
 
 Article IV — Administration 
 
 A. The Association of Mounters and Finishers, Inc., is hereby 
 designated as the agency for administering and supervising the per- 
 formance of the provisions of this code by the members of the 
 industry. 
 
 B. The administrators of this code shall be the Association of 
 Mounters and Finishers, Inc. The Business Manager of the Asso- 
 ciation shall act as the unrestricted agent of the Association and 
 have the right to make such audits of records, collect such reports, 
 statistics, and other information as may be necessary to carry out 
 the provisions of this code. All such data are to be kept confidential, 
 
 8930—33 (1) 
 
and they shall not be divulged to any member except in summary 
 but shall be given to the President of the United States upon request 
 or to support the provisions of this code. The Business Manager of 
 the Association shall also make such investigations and shall file 
 such complaints as are necessary under the provisions of this code. 
 
 C. The Board of Directors of the Association shall supervise 
 the activities of the Association under this act and shall be directly 
 responsible for the administration of the provisions of this code. 
 The Board of Directors may delegate this authority to either the 
 Business Manager of the Association or to an Executive Committee 
 of their own choosing. 
 
 D. The Board of Directors or their delegated representatives 
 together with such individuals as may be named by the President 
 of the United States shall constitute the Planning and Advisory 
 Committee of the industry. 
 
 E. Violations by any member of the Association, or by any business 
 entity eligible to membership in the Association, of the provisions 
 of this code, is and shall be an unfair method of competition, and as 
 such, subject to the penalties provided by the Recovery Act. 
 
 For purposes of self-government of conditions not deemed 
 to warrant invoking the aid and assistance of the authorities and 
 penalties prescribed in the Recovery Act, a majority of the parties 
 signatory hereto may from time to time establish taxes and/or 
 penalties and provision for the payment thereof, for violation of 
 this code. 
 
 In the event the Administrator of this code deems violations to be 
 of such moment as to justify the attention of the authorities and 
 penalties prescribed in the Recovery Act, the Administrator or 
 Business Manager of the Association shall make complaint and invoke 
 the aid and assistance of the authorities and penalties prescribed in 
 the Recovery Act. 
 
 Article V— Labor Provisions 
 
 General. — A. As provided in Section 7 (a) of Title 1 of the National 
 Recovery Act, the following provisions are conditions of this code: 
 
 1. 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 purposes 
 of collective bargaining or other mutual aid or protection. 
 
 2. 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 organization 
 of his own choosing; and 
 
 3. 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. 
 
 B. It is clearly understood that the foregoing paragraph does not 
 impair in any particular the constitutional rights of the employees 
 and employer to bargnin individually or collectively as may be mu- 
 tually satisfactory to them; nor does it impair the joint right of em- 
 ployer and employee to operate an open shop. 
 
C. Nothing in this code is to prevent the selection, retention, and 
 advancement of employees on the basis of their individual merit, 
 without regard to their affiliation or nonaffiliation with any labor 
 organization. 
 
 D. No employer in the industry shall employ any person under the 
 age of sixteen (16) years. 
 
 Hours of Work. — A. It is agreed that the maximum number of work- 
 ing hours for all employees in the industry, including office help, shall 
 not be in excess of forty (40) hours in any one week, and that the 
 working days in the week shall be limited to five, Monday to Friday, 
 inclusive. No establishment in the industry shall open for the 
 transaction of any business or any manufacturing operation on Satur- 
 day or Sunday. 
 
 r* B. Repair crews, machinists, and electricians are excepted from 
 this provision when necessary to keep the plant in operation. This 
 provision shall not apply to executives, supervising staffs, watchmen, 
 or janitors. 
 
 C. When necessaiy, due to the special character of any mechanical 
 work, overtime shall be permitted; but no employees performing 
 mechanical operations shall work more than eight hours overtime 
 in any one week, and no employee shall work more than 1,040 hours 
 in any consecutive 26 weeks, including overtime. 
 
 Labor Rates. — A. It is agreed that the minimum rates of pay for the 
 industry shall be as follows: 
 
 Male Help, forty (40) cents per hour. 
 Female Help, thirty-five (35) cents per hour. 
 
 B. As soon as practicable, a job classification for the industry shall 
 be worked out and minimum rates for each job classification shall be 
 fixed. 
 
 C. Where work is performed on other than hourly rates, such as 
 piecework, etc., it is agreed that such rates shall also be increased 
 proportionately so that the same earnings can be secured in the 
 forty-hour week as are now secured under the present hours of work 
 and that the same minimum rates of pay per hour shall apply to 
 this classification of labor as have been established for hourly 
 employees. 
 
 D. Hours worked in excess of the maximum of forty (40) in any 
 one week by employees who are on hourly rates shall be paid at the 
 rate of time and one third. 
 
 E. No home work shall be allowed. All labor shall be performed 
 in the member's plant, but no work shall be done in any unsanitary 
 buildings or buildings unsafe on account of fire risks. 
 
 Article VI — Production and Capacity 
 
 A. Until such time as the demand for the products of the industry 
 cannot be adequately met by the fullest possible use of the existing 
 equipment, and until the code is amended to permit it, none of the 
 members of the code shall install any additional equipment except 
 as such equipment is needed to replace worn or obsolete equipment. 
 Nothing in the foregoing, however, is to be construed as prohibiting 
 improvements from being made on present equipment. No member 
 may establish a factory branch for the purpose of mounting, die 
 
cutting, and finishing in any city or within the radius of 100 miles 
 of such city where a factory of a present member is now located. 
 
 B. It is recommended that the President of the United States 
 require that, prior to the purchase and installation of productive 
 machinery by persons (whether individuals, copartnerships, or cor- 
 porations) not presently engaged in this industry, such persons shall 
 be required to secure from the President, certificates that such pur- 
 chase or installation is consistent with effectuating the policy of the 
 National Industrial Recovery Act during the emergency period stated 
 therein. 
 
 C. We agree that so long as the industry is operating below 80% 
 of capacity (the present level is under 40% of actual capacity), 
 that the principle of sharing business equitably between the various 
 plants in the industry must be recognized. To carry out this prin- 
 ciple we agree that the Business Manager of the Association shall 
 have the right to assign to each active factor in the industry a certain 
 percentage of the available business to which it is entitled, this per- 
 centage giving due consideration to the physical capacity, past per- 
 formances and any other factors which may be felt to have a bearing 
 on the equitableness of each position, recognizing to a reasonable 
 extent the greater difficulties met by the smaller plants working on a 
 curtailed basis. 
 
 D. If any member finds itself unwilling to accept the percentage of 
 business which has been assigned to it by the Business Manager; 
 the question at issue shall be referred to a Board of Arbitration, one 
 member of which shall be appointed by the Board of Directors, one 
 member by the company which finds itself unwilling to accept the 
 position assigned by the Business Manager, and the third member 
 appointed by the two arbitrators provided for above. The findings 
 of this Arbitration Board shall be final and binding upon both parties. 
 
 E. Each member of the Association agrees to limit its sales and 
 production to its own relative position as determined by the principles 
 outlined above. 
 
 Article VII — Trade Practices 
 
 A. To carry out the provisions as outlined above, and also to secure 
 the objectives as set forth in the National Industrial Recovery Act, 
 it becomes necessary to conduct our industry in an orderly manner 
 and to maintain fair competitive practices which will not be inimical 
 to the interests of the public, the employer or the employees. It is 
 agreed that the participants in this code shall abide by and live up 
 to the Constitution and By-Laws of the Association of Mounters and 
 Finishers, Inc., and the codes of trade practices which may be adopted 
 from time to time by the majority vote of the Association. 
 
 B. It is agreed that every member of the Association shall use an 
 adequate cost system and one which will be prescribed by the Associa- 
 tion. Basic principles for comparative and uniform cost accounting 
 will be adopted by the Association as soon as is practicable, and when 
 adopted will be used as a basis for determining minimum selling prices 
 for the products of the industry. Pending the adoption of such uni- 
 form cost accounting principles, the minimum selling prices of the 
 
 f>rincipal products of the industry shall be based on the present know- 
 edge of costs. 
 
C. It shall be an unfair method of competition for any person in 
 this industry to sell his products below actual cost. In the absence 
 of correct and reliable information as to costs each person shall con- 
 sider as his cost the cost found by the Business Manager to represent 
 average industry costs and published as such. All concerns in the 
 industry shall furnish to the Business Manager in confidence all 
 essential information which may be required pertaining to the deter- 
 mination of their costs according to a formula to be furnished by him ; 
 and such information shall be subject to verification. 
 
 The quotation by any manufacturer of any price lower or higher 
 than the price based upon actual costs, or the sale of any commodity 
 at a price lower or higher than that based upon actual costs shall 
 constitute an unfair trade practice. 
 
 D. To secure the effective general distribution of business in ac- 
 cordance with the principles outlined in Article VI, Section B, it is 
 agreed that in the event that any member becomes materially out 
 of line with his recognized position in the industry that the Board 
 of Directors, through the Business Manager, may direct a course of 
 procedure to be followed by such companies in order to bring about 
 an equitable distribution of the available business, and it is agreed 
 that this course of action will be followed by each member so affected. 
 
 E. It is agreed that each member of the industry will submit to 
 the Business Manager at the end of each year a balance sheet and 
 profit and loss statement, certified by an officer of the company, so 
 that a combined balance sheet and profit and loss statement of the 
 industry may be submitted to the President of the United States, as 
 a check on the prices received and as an indication of the industry 
 to be reasonable in its purpose. 
 
 F. Any secret rebate or credit, extra cash discount, the shipping of 
 a greater quantity of product than is billed, or any other secret 
 practice which tends to lower the recognized price on the part of any 
 manufacturer or his agent is hereby condemned and shall constitute 
 an unfair trade practice. 
 
 G. It is agreed that the wilful interference by any person, firm, 
 corporation, or association, by any means or device whatsoever, with 
 any existing contract or order between a seller and a purchaser, in or 
 about the production, manufacture, transportation, purchase or sale 
 of any product handled by the industry, or the performance of any 
 contractual duty or service connected therewith, such interference 
 being for the purpose or with the effect of dissipating, destroying, or 
 appropriating, in whole or ; n part, the patronage, property, or business 
 of another engaged in such industry is condemned as an unfair trade 
 practice. 
 
 H. The circularization of threats of suit for infringement of patents 
 or trade marks among customers of a competitor, not made in good 
 faith and for the purpose of harassing and intimidating customers, 
 is condemned as an unfair trade practice. 
 
 I. It is agreed that no member of this code shall at any time use 
 any methods or means of enticing employees from the employment 
 of any other member of this code and before hiring any employees 
 who have previously been in the employ of another member, the com- 
 pany about to employ such a person will invite a full exchange of 
 facts concerning such person about to be employed from the members 
 in whose employ such a person may have been. 
 
6 
 
 J. All patents or patents applied for, of design or construction, 
 now existing or hereafter applied for, shall be filed in the business 
 office of the Association and shall be available for reference to any 
 member of the Association. It shall be construed that the filing of 
 such patent is notification of the existence of such patent or design. 
 Permission for use of such a patent may be open to any member in 
 the industry on application to the owner thereof and upon agreement 
 with the said owner upon terms or payment of royalties. The use 
 of such patents or patents applied for by any member without con- 
 forming to this procedure shall constitute an unfair trade practice. 
 
 K. The attached specific conditions and terms of quotations and 
 sales, set forth in Appendix A shall constitute provisions of this code. 
 
 Article VIII — Penalties and Damages 
 
 A. Any violations of any provisions of the code by any member 
 of the Industry shall constitute a violation of the code by such 
 member. 
 
 B. Recognizing that the violation by any member of the Code of 
 any provision of Article VII, Sections C, D, F, G, H, and K shall 
 disrupt the normal course of fair competition in the industry and 
 cause damage to any other member or members of the Code, and 
 that it will be impossible fairly to assess the amount of such damage 
 to any member of the Code; it is hereby agreed by and among all 
 members of the Code that each member of the Code which shall 
 violate any such provision shall pay to the Treasurer, as an indi- 
 vidual and not as the Treasurer of the Association, in trust, as and 
 for liquidated damages, a sum not to exceed 25% of the net billing 
 price for that project or projects. 
 
 C. Unless otherwise provided for in Section B, the Board of Direc- 
 tors of the Industry shall, upon complaint of any member of the Code, 
 determine whether such other violations have in fact been made and 
 shall assess as liquidated damages a fine against the violator in an 
 amount which, in their opinion, represents damages to the Code or 
 any member thereof. Such penalties and damages, however, can 
 only be assessed by a vote of five out of six of the Board of Directors 
 of the Association. In the event that a violator of the Code shall be 
 one of the members of the Board of Directors, a vote of four of the 
 five remaining directors shall be required. 
 
 Such members shall become liable to pay the Treasurer of the 
 Association as an individual and not as Treasurer of the Association, 
 in trust, liquidated damages for such unfair practices in the amount and 
 at the time established by the Board of Directors of the Association. 
 
 D. The amounts so paid to or collected by the Treasurer under this 
 Article shall be held and disposed of by him as part of the funds col- 
 lected under the Code, and each member of the Code not guilty of the 
 unfair practice in respect of which any such amounts shall have been 
 paid or collected, shall be credited with its pro rata share of such 
 amount on account of any and/or assessments due or to become due 
 from such member under the Code. Such pro rata share shall be 
 computed on the same basis as the last previous assessment made 
 against each member on account of the expense of administering the 
 Code. 
 
E. Anything in the Code to the contrary notwithstanding, the 
 Board of Directors of the Association by the affirmative vote of five 
 out of six of the Board may waive any liability for liquidated damages 
 imposed by or pursuant to any provisions of the Code for any viola- 
 tions of any provisions thereof. If in its discretion it shall decide 
 that such violation was innocently made, then the collection of such 
 damages will not to any material extent tend to effectuate the policy 
 of Title I of the National Industrial Recovery Act. 
 
 Article IX — General 
 
 A. No provision in this code shall be interpreted or applied in such 
 a manner as to — 
 
 a. Promote monopolies. 
 
 b. Promote or encourage unfair competition. 
 
 c. Eliminate or oppress small enterprise. 
 
 d. Discriminate against small enterprise. 
 
 B. The President of the United States may from time to time 
 cancel or modify any order, approval, license, rule, or regulation issued 
 under this title; and each agreement, code of fair competition, or 
 license approved, prescribed, or issued under this title shall contain 
 an express provision to that effect. 
 
 C. Amendments to tins code may be proposed by any member of 
 the Association, and such amendments when adopted by a majority 
 vote of the Association shall become effective if, and when, approved 
 thereafter by the President of the United States. 
 
 D. This code shall become effective on September 1st, 1933, or if 
 it has not been approved by that date, it will become effective five 
 (5) days after it has been approved by the President of the United 
 States. 
 
APPENDIX A OF THE GENERAL CODE 
 Uniform Conditions and General Specifications of Quotations and Sales- 
 conditions 
 
 1. Owing to uncertain market conditions this quotation is made subject to 
 immediate acceptance. In accepting this quotation you shall give us a written 
 order showing specifications and price. 
 
 2. All prices are based upon continuous and uninterrupted production and 
 delivery of the entire order, unless quotation states otherwise. 
 
 3. We assume that shipment is to be made to one point in packing units con- 
 venient to us. An extra charge will be made for split shipments and special 
 packings unless so covered in our quotation. 
 
 4. Instructions for immediate shipment are to be given us on all merchandise. 
 Unless otherwise agreed in the quotation, it is understood that all merchandise will 
 be shipped within 45 days from receipt of prints, otherwise we will place in a 
 public warehouse at your risk and expense any merchandise left on hand after 
 that time, and such merchandise will be packed bulk in cases and billed for such 
 packing, unless other definite packing instructions are provided. 
 
 5. The percentage of overrun must be specified in your written order and our 
 obligation is limited to the amount specified. 
 
 6. We reserve the right to a 5 percent spoilage on your prints on runs of 1,000 
 sheets or more, 10 percent on smaller quantities. 
 
 7. All prints are to be delivered, f.o.b. our factory, not later than 60 days after 
 placing your order. We assume it to be satisfactory to you to place in immediate 
 production ALL prints or other materials when received by us. 
 
 8. Any material furnished by you, other than actual prints, will be accepted by 
 us only at such times as we specify. 
 
 9. All materials furnished by you are held at your risk, and we assume no 
 responsibility for loss or damage by fire, water, or any cause beyond our control. 
 
 10. Mounting of varnished sheets involves an additional charge. 
 
 11. Should you specify finished samples for your approval, it is understood 
 that we will be required to furnish no more than three, one of which is to be 
 returned to us with your O.K. thereon. 
 
 12. All dies are to be furnished by us and remain our exclusive property. At 
 our discretion dies will be destroyed after six months' time. 
 
 13. Terms are net cash, no discount. 
 
 14. All merchandise is sold f.o.b. our city or cars. 
 
 15. All charges for prepaid transportation items will be payable upon presenta- 
 tion of our invoice. 
 
 GENERAL SPECIFICATIONS 
 
 A. For best mounting results we require the use of 80 to 90 lb. if coated paper 
 and 70 to 80 lb. if offset or machine-finish paper, basis 25 x 38, grain all one way. 
 
 B. When received by us, prints must be flat, free from wrinkles and folds, 
 and the ink must be thoroughly dry and firm. All prints are to be delivered in 
 cases or on skids properly protected with contents properly marked. 
 
 C. Due to the impossibility of manufacturing mounting board to exact caliper, 
 a variation of 5% in thickness must be allowed. 
 
 D. We require that you confer with us regarding layout and all other details. 
 Advance planning will insure economy, prompt service, and satisfactory results.. 
 
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UNIVERSITY OF FLORIDA 
 
 3 1262 08853 8482