NEWS EDITION VOL.
12, N o . 4
FEBRUARY
20, 1934
Industrial AND
ENGINEERING
C hemistry VOL. 2 6 , C O N S E C U T I V E PUBLISHED
BY T H E A M E R I C A N
NO. 7
CHEMICAL
H A H R I S O N E . H O W E , EDITOR
SOCIETY
PUBLICATION OFFICE: East on, P a . EDITORIAL OFFICE : Room 706, Mills Building, Washington, T>. C. ADVERTISING DEPARTMENT: 332 West 42nd St., New York, Ν . Υ. TELEPHONE: Bryant 9-4430 SUBSCRIPTION to nonmembers, Industrial and Engineering Chem istry, $7.50 per year. Foreign post age $2.10, except to countries ac cepting mail a t American domestic rates, and to Canada, $0.70. Ana lytical Edition only, $2.00 per year; foreign postage $0.30, Canada, $0.10. News Edition only, $1.50 per year (single copies, 10 cents) ; foreign postage $0.60, Canada, $0.20. Subscriptions, changes of address, and claims for lost copies should be referred t o Charles L . Parsons, Secretary, Mills Build ing, Washington, D . C .
Code for t h e Chemical Manufacturing Industry Approved Merck & Co., Inc. In addition to these members, Ε . Μ. Allen, Mathieson Alkali Works, Inc., Charles Belknap, Merrimac Chemical Co., Inc., and Glenn Haskell, U . S. Industrial Alcohol Co., were requested by t h e code committee t o assist it in i t s negotiations. I cannot let this opportunity pass without bring ing t o t h e attention of &11 members of the industry t h e able, untiring, and farsighted services rendered by these gentlemen t o the chemical interests of this country. I shall o n l y add h o w pleasantly and wholeheartedly all members o f the committee cooperated. General C. C. Williams, division administrator, Major G. L . Berry, division administrator, and their assistants, uniformly and at all times worked with t h e code committee in a spirit of real cooperation and have continually evidenced a real desire t o assist the industry in the solution of its problems. T h e chemical industry w a s particularly fortunate i n that According t o the rulings of the National Recovery Administra Francis P . Garvan consented t o serve as t h e government's indus tion, t h e code will, as from February 20, be binding upon all trial adviser for t h e industry. Mr. Garvan has long been recog members of t h e chemical manufacturing industry w h o produce nized as a true friend of American chemistry. His ability and and/or sell heavy industrial and fine chemicals and their by his vision have played a large part in bringing t h e chemical products. Particular attention is directed to t h e provisions of development of t h e United States t o the high position which i t Article I I dealing with maximum hours of labor; Article III, occupies i n our national economy today. It w a s largely due t o minimum rates of wages; Article IV, child labor; a n d Article his efforts that the chemical code h a s taken its present form a n d VIII, employee organization and bargaining. Under the terms of Article V of the code, the code, will be ad all of us will, I know, wish to acknowledge the debt o f gratitude which w e owe him for this further proof of the service which h e ministered b y the executive committee of the Chemical Alliance. has so ably rendered the whole of t h e chemical industry. This committee is taking definite steps t o provide machinery for the administration of the code, including the collection o f informa tion regarding hours of labor and rates of p a y and the adjustment of a n y complaints that m a y arise. A memorandum on this CODE O F FAIR COMPETITION FOR T H E subject will be sent t o all members of the Chemical Alliance in the CHEMICAL MANUFACTURING INDUSTRY near future. In this connection, it should be pointed out that membership in the alliance is open t o a n y individual firm or T o effectuate the policy of Title I of t h e National Industrial corporation engaged in the manufacture of chemicals in the Recovery Act, the following provisions a r e established as a Code United States, and any company which has n o t yet become a of Fair Competition for the Chemical Manufacturing Industry: member may, if it so desires, secure membership by submitting an application form. There are also certain companies in the ABTICLE I. DEFINITIONS industry who have not y e t consented t o t h e code and any com pany which desires to do so may give its consent to t h e code by (a) T h e term "President" a s used herein means t h e President signing copies of the November 29,1933, revision and accompany of t h e United States. ing a copy of the code with a letter stating that i t is in agreement (p) T h e term "Administrator' ' as used herein means t h e with the changes enumerated above. duly appointed representative of t h e President t o administer t h e On the recommendation of t h e executive committee of the National Industrial Recovery Act. Chemical Alliance, the annual meeting for 1933 was postponed (c) T h e term "chemical industry" as used herein and covered until such time as definite action had been taken o n the code. by this code, shall b e defined t o mean the production and sale b y As t h e code has now been approved, arrangements are being the producer of heavy, industrial, and fine chemicals, and their made t o call the annual meeting in order to elect a board of by-products, unless separate codes not supplementary t o this directors and transact any other necessary business. Notice will code are submitted b y any division or subdivision of this industry be mailed shortly. and approved b y t h e President. Those divisions of the industry desiring to present divisional (d) T h e term "alliance" as used herein means T h e Chemical codes may now avail themselves of the provisions of Articles X I Alliance, Inc., a nonprofit sharing corporation organized and and X I I . existing under the laws of the State of Connecticut. Throughout the entire period spent in drafting t h e code and (e) T h e term "employees" as used herein means all persons negotiating with officials of the NÎRA t h e codé committee has employed in any phase of the chemical industry covered b y this received practically unanimous support and cooperation from all code. the members of the ehemical industry. They have demonstrated (/) T h e term "effective date," a s used herein, means the tenth that they are prepared, when necessary, t o sacrifice individual day after this code has been approved b y the President of t h e interests for the good of the industry a s a whole and t h e furtherUnited States. ance of a plan designed t o bring about better conditions of living to all citizens. ARTICLE I I . H O U R S OF LABOR The members of the code committee of the Chemical Alliance On and after the effective date, no person, including accounting, are Lammot du Pont, E . I. du Pont de Nemours & Co., Inc.; A. K. Hamilton, Franco American Chemical Works; J . W. Mc- clerical, office, and sales employees, employed within t h e chemical industry shall be permitted t o work more than an average of 4 0 Laughlin, Carbide and Carbon Chemicals Corp.; George Merck, P R E S I D E N T R O O S E V E L T o n February 10 approved t h e C o d e
of F a i r Competition for t h e Chemical Manufacturing Indus try, which therefore b e c o m e s effective o n February 2 0 , 1934. T h e code h a s been in preparation for some m o n t h s , during which time there h a v e b e e n a number of revisions, u n c o u n t e d conferences, hearings, and similar forms of a c t i v i t y which necessarily accompany the preparation of such an i m p o r t a n t document. T h e following i s quoted from a letter dated February 13 and signed b y W. B . Bell, president of t h e Chemical Alliance, Inc., and sent to m e m b e r s of the chemical industry.
57
NEWS
58
hours per week during any period of 4 months nor more than 48 hours during any week, but such limitations shall not apply to : (a) Any person employed in an executive, administrative, supervisory and/or technical (not to include skilled operating labor nor nonprofessionally trained, laboratory workers) capacity, or as an outside salesman. (6) Any person employed as repairman, engineer, electrician, loader, truck driver, cleaner, or watchman; provided that, no person specified in this subparagraph (6) shall be permitted t o work during any 3 months' period more than an average of 44 hours per week nor more than 48 hours in a n y one week. (c) Those departments or divisions of the chemical industry i n which season or peak demand places an unusual and temporary requirement for production upon such departments or divisions, except that in such cases no employee shall be permitted to work during any 3 months' period more than a n average of 44 hours per week nor more than 48 hours in a n y one week. (d) Employees engaged on continuous operation at places where adequate supply of qualified labor is not available and cannot reasonably be made available and where restriction of hours of such employees would unavoidably reduce production. I n such cases the average weekly hours m a y not be in excess of 4 8 hours per week and at the end of each calendar month any such employer in the chemical industry shall report t o t h e alliance, i n such detail as may be required by the executive committee or the Administrator, the number of man hours so worked, giving the reasons therefor, and t h e ratio which such man hours bear to the total number of man hours during said month. (e) Cases of emergency, provided that at the end of each calendar month any such employer in the chemical industry shall report t o «the alliance, in such detail as m a y be required by the executive committee or the Administrator, the number of man hours so worked, giving the emergency reasons therefor, and the ratio which such emergency man hours bear t o the total number of man hours during said month. ARTICLE III.
MINIMUM
WAGES
On and after the effective date the minimum wages paid b y any employer in the chemical industry to a n y employee, including accounting, clerical, office, and sales employees, shall be not less than 35 cents per hour when employed i n the Southern District as defined below, nor less than 40 cents per hour when employed elsewhere in the United States; provided, however, that if the hourly rate for the same class of work on July 15, 1929, was less than 35 cents per hour in the Southern District or less than 40 cents per hour elsewhere in the United States, then in that case the minimum wages paid hereunder shall be not less than the hourly rate paid on July 15, 1929, and in no event less than 25 cents per hour in the Southern District and 30 cents per hour elsewhere in the United States; provided, however, t h a t where a state law provides a higher minimum wage, no person employed within that state shall be paid a wage below that required b y such state law. The above provisions shall apply in all cases except that (a) Apprentices and learners for not more than the first six months of employment shall be paid not less than 80 per cent of the minimum wages above provided and the total number of apprentices and learners shall not exceed 5 per cent of the total number of employees employed b y a n y employer subject to this code. (6) Employees who, because of age or infirmities, are employed in such positions as watchmen, gatemen, caretakers, etc., shall be paid not less than 80 per cent of the minimum wages hereinabove provided and the total number of such employees shall not exceed 5 per cent of the total number of employees employed by any employer subject to the code. I n t h e case of any employee whose compensation is paid on other than an hourly basis or 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 determined en an hourly basis. For the purposes of this article "Southern District" shall be defined as that territory south of the States of Maryland, West Virginia, Kentucky, and Missouri, and including the States of Oklahoma and Texas. ARTICLE IV.
C H I L D LABOR
On and after the effective date, n o employer in t h e chemical industry shall employ any person under the age of 16 years; provided, however, that where a state law provides a higher minimum age, no person below the age specified b y such state law shall be employed within that state. ARTICLE V.
Vol. 12, No. 4
EDITION
ADMINISTRATION
The alliance is hereby appointed an agency for the following purposes: (a) To collect from the members of the industry all data and statistics in relation t o number of employees, hours of labor, and rates of pay necessary for the administration of the provisions of this code which may be called for by the Administrator. Any
data and/or statistics of a confidential nature shall be collected and compiled by a firm of certified accountants or other suitable agents selected by the alliance and not a member or connected with a member of the Chemical Alliance. T h e data and/or statistics so collected by such agents shall be furnished to t h e alliance only in combination with other information of t h e same type and in such form as will not disclose the individual data or statistics furnished b y any single employer. N o officer or director of the alliance or a n y other person or agency shall at a n y time have access to, or be furnished in any manner with, any information by said agents which would disclose the individual data or statistics furnished b y a n y single employer. (b) To represent the chemical industry in conferring with the Administrator with respect to the application of this code and of said act, and any regulations issued thereunder, and receive complaints, and if possible adjust the same, and to coordinate the administration of this code with such codes, if any, as m a y affect any subdivision of the chemical industry, with a view to providing joint and harmonious action upon all matters of common interest, and to receive a n y proposals for supplementary provisions or amendments of this code and transmit the same to the Administrator; provided, however, that as regards all matters mentioned in this paragraph (6) said alliance shall not have the power in any w a y to bind the chemical industry or a n y subdivision thereof. (c) The duties of t h e alliance above enumerated shall be performed by its executive committee. The Administrator m a y name three representatives, who, without expense to the alliance or the industry, shall have the right t o attend all meetings of said executive committee dealing with questions concerning the adininistration of this code but such representatives shall have no vote. (d) Nothing contained in this code shall constitute t h e m e m bers of t h e alliance partners for a n y purpose. Nor shall a n y member of the alliance be liable in any manner t o anyone for any act of any other member, officer, agent, or employee of the alliance. Nor shall any member of the alliance exercising reasonable diligence in the conduct of his duties hereunder be liable t o anyone for any actions or omissions to act under this code except for his own wilful misfeasance or nonfeasance. (e) T h e Chemical Alliance shall: (1) Impose no inequitable restrictions on membership and (2) submit to the Administrator true copies of its Articles of Association, By-Laws, regulations, and any amendments when made thereto. ARTICLE
VI
All members of the chemical industry shall be entitled to participate in, and share the benefits of, t h e activities of tne Chemical Alliance b y becoming a member of the alhance, or b y complying with the requirements of this code and sustaining their reasonable share of the expenses of i t s administration. T h e reasonable share of the expenses of administration of each member of the industry shall be determined b y the alliance on the basis of the total number of employees covered b y this code, as provided in the Constitution and By-Laws of the alliance or, subject t o the approval of the Administrator, on such other equitable basis as t h e alliance from time to time may determine. ARTICLE
VII
If any employer in the chemical industry is also an employer in any other industry, the provisions of this code shall apply to, and affect only, t h a t part of t h e business of such employer which is a part of the chemical industry. ARTICLE V I I I .
EMPLOYEE ORGANIZATION ANI> 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 e m ployers of labor, 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) N o employee and no one seeking employment shall be required as a condition of employment t o join a n y company union or to refrain from joining, organizing, or assisting a labor organization 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 t h e President. ARTICLE
IX
In all activities under this code, the peculiar relation of the chemical industry to national defense, national health, national industry, and national agriculture must be constantly borne in mind b y its employers, stockholders, directors, executives, and employees. The present products of this industry should be regarded as only by-products; its main product and purpose the extension of chemical knowledge in the public interest. I t is recognized that the chemical industry, if it is to keep abreast of chemical progress in the world, requires employees capable of
February 20, 1934
INDUSTRIAL
A N D E N G
constant advancement in their technical skill and of high and loyal character. Therefore, conscious of t h e great purpose of the in dustry, by presenting this code the employers in this industry shall not be deemed to have waived any of their constitutional and legal rights t o engage, promote, or release employees, and the members of the industry shall not be deemed to have waived any other constitutional rights. ARTICLE
X
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. ARTICLE X I
Supplementary provisions covering fair trade practice rules, applicable to subdivisions of t h e chemical industry, may from time t o time be submitted by t h e agency designated herein, or b y an agency named b y a n y subdivision, for the approval of the President. Notwithstanding a n y provisions of Article V, or any authority conferred thereby, a n y subdivision shall have the right to, and shall be entitled t o , submit in its own behalf, direct t o the National Recovery Administration, and to administer, such supplementary provisions concerning fair trade practice rules, providing that no such supplementary provisions shall be incon sistent with the purposes and provisions of this code.
N E E R I N G
CHEMISTRY
59
Code of Fair Competition for the Chemical Manufacturing Industry, and hearings having been held thereon and the Administrator having rendered his report containing a n analysis of t h e said Code of Fair Competition together w i t h his recommendations and findings with respect thereto, and t h e Administrator having found that the said Code of Fair Competition complies in all respects with the pertinent provisions of Title I of said act, and that the requirements of clauses (1) and ( 2 ) of subsection (a) of Section 3 of the said act have been met: Now, Therefore, I , Franklin E>. Roosevelt, President of the United States, pursuant to the authority vested in m e by Title I of the National Industrial Recovery Act, approved June 16,1933, and otherwise, do adopt and approve the report, recommendations, and findings of the Administrator, and do order that the said Code of Fair Competition be, and i t is hereby, approved. (Signed) F R A N B X I N D . ROOSEVELT
Approval recommended: (Signed) H U G H S. JOHNSON,
Administrator
T H E WHITE HOUSE
February 10, 1934 CHEMISTS UNDER THE CODES EDITORIALLY in our INDUSTRIAL E D I T I O N and through an-
nouncements in the N E W S E D I T I O N w e have endeavored t o conv e y information to chemists which would help to guide them in a ARTICLE Χ Π proper path among the codes. Notwithstanding t h e informaSubject to t h e approval of t h e President a n y subdivision of tion that has been made available there continues to b e confusion the chemical industry operating under the provisions of this in certain quarters, as evidenced by efforts of some groups to code m a y elect t o sell a n y of i t s products only upon open prices have chemists sign proposed codes and further their adoption. a n d / o r terms and conditions publicly announced by each member Your attention is again called t o t h e report of the Committee of such subdivision. A n y changes i n prices and/or terms and a Code for Chemists, first pi-inted on page 6 of the N E W S conditions b y a n y member of such subdivision shall b e an on EDITION of January 10,1934. Tlais committee was one appointed nounced by such member immediately t o all other members of y a vote of t h e Council at the Chicago meeting and consisted of the subdivision through such agency as the subdivision m a y bCarl S. Miner, chairman, Robert X . Baldwin, Gustavus J. Esselen, determine. Variations from such open and publicly announced Arthur B. Lamb, H. G. Knight, a«nd J. M. Weiss, and reported as prices and/or terms and conditions shall not be allowed. follows: ARTICLE X I I I
B y presenting this code, and the specific provisions of Articles I I and III hereof, those who have assented hereto do not thereby consent t o any modification thereof, except as each shall thereto subsequently agree.
(1) The individual chemist in the SOCIETY in his capacity as a professional man does not have to sign any code. (2) The status under NIRA of the individual chemist who is an employer has not as yet been determined. (3) In view of (1) and (2), there appears to be no reason why t h · SOCIETY should attempt to formulate a code.
ARTICLE X I V
Inquiry a t the headquarters of t h e National Recovery Administration serves t o emphasize that there i s no place for codes such as have recently been printed or circulated in mimeographed form for chemists. A code which pertains t o labor or service only does not come within the meaning of the National Industrial Recovery A c t , and consequently cannot b e accepted b y the N R A . The N R A has recommended that t h e code of fair competition offered by the Consulting Chemists and Chemical Engineers b e withdrawn. This is ttte code submitted last summer. All similar codes have been rejected. It should b e borne in mind t h a t t h e National Industrial Recovery Act authorizes the President to accept codes of fair competition from trade or industrial groups directly representaARTICLB X V tive of the trade or industry concerned. I n interpreting this T h e code shall continue in effect for a period of 9 0 days after provision officials have held t h e trade or industry t o be truly the effective date thereof, subject, however, t o amendment a t represented only when more tHan 5 0 per cent of the groups any time as hereinbefore provided, and also subject to t h e re affected are represented b y those offering the code. Further, served power of the President t o cancel or modify h i s approval t o be defined as an industry or trade, those preparing and proposthereof. T h e code shall continue i n effect after t h e expiration ing a code must be a group representing the interests of both emof said period of 90 days i n the absence of such reserved power o n Eloyees and employers. Conseqjuently, codes recently circulated the part of the President, or i n the absence of the exercise b y ave been p u t forward b y groups which are not qualified t o take members of the alliance of the power which they hereby reserve, action i n such matters. to terminate the code at .any time after the expiration of the said There seems to b e no reason t o modify t h e earlier statements period of 90 days. Such cancellation shall b e proposed b y t h e that chemists who are practicing i n their professional capacity are executive committee of t h e alliance b y vote of the majority of neither required, expected, nor permitted t o have a code and that members thereof a t the time i n office. The proposal t o cancel chemists who are employees in in-dustry are subject t o the code of shall then be submitted t o all members of the Chemical Alliance that industry unless specifically exempt as a class of employees in who shall be given a right to v o t e thereon. If at least two-thirds the codes that have been adopted. of the votes entitled t o b e cast b y t h e members of t h e Chemical Formulation of a code for chemists has been undertaken by Alliance, in accordance with t h e provision of Article VIII, Sec different groups for sundry purposes, in the main i n an effort to tion 5 of the Constitution, and By-Laws of the Chemical Alliance be really helpful, b u t there has evidently been much misundershall be in favor of cancellation, the CEemicalAlliance shall have standing as t o what the codes a r e expected t o accomplish, as well the power, alter service of aEX 1 9 3 3 .
EXECUTIVE ORDER. CODE OF FAIR COMPETITION FOR THE CHEMICAL MANUFACTURING INDUSTRY An application having been duly made, pursuant t o , and in full compliance with, the provisions of Title I of the National Industrial Recovery Act, approved June 1 6 , 1 9 3 3 , for my approval of a
The Subject and Formula
Indexes to Chemical Abstracts f o r the year 1933 are being mailed as N o . 24 of volume 27 (1933) to all 1933 members and subscribers on or about February 2 0 , 1934. Those who expect these indexes are reminded that claims for nonreceipt cannot be honored unless received b y the Secretary of the SOCIETY within 60 days of this date.
