Approved Code No. 420 Registry No. 1024-05 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

GYPSUM INDUSTRY 

AS APPROVED ON MAY 7, 1934 

I I I 

WE ·oo OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - Price 5 cents 

v 
This publication is for sa.le 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, Ijll. : 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 ity, Mo.~ 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, l\linn. : 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. 

Pitt burgh, 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. 420 

CODE OF FAIR COMPETITION 

FOR THE 

GYPSUM INDUSTRY 

As Approved an May 7, 1934 

ORDER 

APPROVING CoDE OF FAIR CoMPETITION FOR THE GYPsuM 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 Jtme 16, 1933, for approval of a Code of 

Fair Competition for the Gypsum Industry, and hearings l1aving 

been duly held thereon and the annexed report on said 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 

President, including Executive Order number 6543-A, dated December 30, 1933, and otherwise, do hereby incorporate by reference said 

annexed report and do find that said Code complies in all respects 

with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Code 

of Fair Competition be and it is hereby approved; provided, however, that the provisions of Article VI, Sections 1 and 2, insofar as 

they prescribe a waiting period between the filing with the Code 

Authority and the effective date of revised price lists or chedules 

andjor terms and conditions of sale, be and they are hereby stayed 

pending my further Order either within a period of sixty days 

from the effective date of this Code or after the completion of a 

study of open price associations now being conducted by theN ational 

Recovery Administration; and provided further, that the Code 

Authority shall, not later than ninety days after the date of this 

Order, submit to the Administrator further evidence that the averaging of hours as provided in Section 1 of Article III is necessary in 

this Industry. 

HuGHS. Jo~N. oN, 

Administrator for Industrial Recovery. 

Approval recommended : 

A. R. GLANCY, 

Division Administrator. 

"'VASHINGTON, D.C., 

May 7, 1934. 

57414°--, --544-43----34 (39) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

SIR: This is a report on the Code of Fair Competition for the 

Gypsum Industry, a hearing on which was conducted in Washington on the ninth of January, 1934, in accordance with the provisions 

of the National Industrial Recovery Act. 

HOURS 

This Code provides for a maximum work week of forty ( 40) hours, 

exc-ept that, during peak production periods and -emergencies, employees may be permitted to work forty-eight ( 48) hours in any week 

provided that their hours of work do not average more than forty 

( 40) hours per week during a six month period. It provides for 

the payment of one and one-half (11j2 ) times the normal rate for time 

worked in excess of eight (8) hours in any day. The following are 

excepted: 

(a) Clerical, office, sales service and sales employees, who may be 

permitted to work not more than an average of forty ( 40) hours per 

\veek in any thirty (30) day period, nor more than forty-eight (48) 

hours ~n any week; 

(b) Employees in technical, professional, supervisory, managerial 

or executive capacities, r eceiving mor-e than thirty-five dollars 

($35.00) per week, and outside sales and sales service employees; 

(c) Employees on emergency maintenance or emergency repair 

work who, however, must oo paid one and one-half (11j2 ) times the 

normal rate for time worked in excess of forty ( 40) hours in any 

week or eight (8) hours in any day; 

(d) Watchmen, who may be permitted to work a maximum of 

fif y-six (56) hours in any week; 

(e) Engineers, firemen and pumpmen, who may be permitted to 

work a maximum of forty-eight (48) hours in any week. 

WAGES 

The Code provides for minimum wage rates for clerical, office, 

sales service and sales employees of from fourteen dollars ($14.00) 

to fifteen dollars ($15.00) per week (depending upon the size of the 

cit ' within the trade area of which they are employed), and for 

minimum wage rates for other employees as follows: 

(a) Forty cents ( 40¢) per hour in any city, wherever located, of 

100,000 population or over or in the immediate trade. area of such 

city; 

(b) Forty cents ( 40¢) per hour in the Pacific Coast Territory; 

(c) Thirty cents ( 30¢) per hour in the South; 

(d) Thirty-seven and one-half cents (371j2 ¢) per hour in the 

remainder of the United States. 

(40) 
41 

The rates of wages of employees, receiving more than the minimum 

but not more than thirty-five dollars ($35.00) per we~k, may not be 

reduced, and must be increased by an equitable readjustment, provided this has not already been done prior to the ~:ffective date of 

the Code. 

OTHER LABOR PROVISIONS 

The Code contains provisions, similar to those usually included in 

Codes, governing Child Labor, Infirm and Aged Employee , Reclassification of Employees, Posting of Code, Payment of vVages, 

Safety and Health, and Company Houses and Stores. 

ECONOMIC EFFECTS OF THE CODE 

The volume of sales in this industry has decreased about 75% sinc..:e 

1929. During the same period, the number of employees has 

decreased from 7,016 to 3,251, a decrease of about 54%. 

Practically the entire industry is now operating under the President's Reemployment Agreement and it is not thought that tbA. 

approval of the Code will increase employment or payrolls further, 

until volume of business increases. The. increase in payrolls under 

the President's Reemployment Agreement has apparently been 

about 20% and the increasa in employment probably at least 8%. 

FINDINGS 

The Assistant Deputy Administrator, in his final report to me 

on said Code, having found as herein set forth and on the basis 

of all the proceedings in this matter; 

I find that: 

(a) Said Code is well designed to promote the policies and purpo es 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 organization of 

indu try for the purpose of cooperative action among the trade 

groups, by inducing and maintaining united action of labor and 

management under adequate governmental sanctions and supervi ion, by eliminating unfair competitive practices, by promoting 

the fullest possible utilization of the present productive capacity 

of indu tries, 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 employees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without lin1itation Subsection (a) of Section 3, Subsection (a) of Section 7, 

and Subsection (b) of Section 10 thereof; and that the applicant 

group is an industrial group truly representative of the aforesaid 
42 

industry, and that said group impcses no inequitable restrictions 

on admission to membership therein. 

(d) Said Code is not designed to a.nd will not permit monopolies 

or monopolistic practices. 

(e) The 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 

Code. 

For these reasons, therefore, I have approved this Code. 

Respectfully, 

MAY 7, 1934. 

HuoH S. JoHNSoN, 

Adm.inistratQ/r. 
CODE OF FAIR CO~IPETITION FOR THE GYPSUM: 

INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Indu trial 

Recovery Act, the following provisions are established as a Code of 

Fair Competition for the gypsum industry and shall be the standards of fair competition for this industry, and shall be binding upon 

every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The terms "gypsum industry" and "industry" as used 

herein mean and include the mining and calcining or calcining of 

gypsum, mining, quarrying or recovering natural or synthetic gypsum or gypsite and/ or crushing gyp urn rock or gypsite and/ or manufacturing natural or synthetic gypsum and gypsite products, within 

the United States and its territories and po sess ions. 

SECTION 2. The term "employee" as u ed herein inclu les any person, except a member of the industry, engaged in any phase of the 

industry in any capacity in the nature of employee irre pective of 

the method of payment of his compensation. 

SEcTION 3. The term "employer " as used herein includes any one 

by whom an employee is compensated or employed. 

SECTION 4. The term "member of the industry" include , but 

without limitation, any individual, partnership, association, corporation or other form of enterprise engaged in the industry, either as 

an employer or on his or it own behalf. 

SEcTION 5. The term " Pacific Coast Territory " as used herein 

shall mean that part of the continental United States west of the 

108th longitudinal meridian. 

SEcTioN 6. The term ' Association" as used herein shall mean the 

Gypsum Association, a trade association having its office at 211 'Vest 

'~Tacker Drive, Chicago, Illinois. 

SECTION 7. 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 

Administrator for Industrial Recovery. EcTio~ 8. The term "population" as used herein shall mean 

population ~s determined by the latest Federal Census. 

ARTICLE III-LABOR 

SECTION 1. H oun.-N o employee not elsewhere in this section 

otherwise specifically provide l for or excepted shall be permitted to 

work in excess of forty ( 40) hours in any week except that, during 

peak production periods and emergencies, any such employee may 

(43) 
44 

be permitted to work in excess of such hours but not to exceed fortyeight ( 48) hours in any week; provided, however, that the hours of 

labor for any such employee shall not average more than forty 

(40) hours per week during each six month period from January 1 

to J'une 30, and from July 1 to December 31 in any year. Employees 

covered by this paragraph shall be paid one and one-half (11j2 ) 

times their normal rate for all hours worked in excess of eight (8) 

hours in any day. 

No clerical, office, sales service or sales employee shall be permitted 

to work an average of more than forty ( 40) hours per week in any 

thirty (30) day period, provided that no such employee shall be 

permitted to work more than forty-eight ( 48) hours in any one week. 

The above limitations shall not apply to: 

(a) Employees in a technical, professional, supervisory, managerial, or executive capacity who are compensated on a basis of more 

than $35.00 per week; 

(b) Employees on emergency maintenance or emergency repair 

work involving breakdowns or the protection of life or property but 

in any such case at least one and one-half (11j2 ) times the normal 

rate shall be paid for hours worked in excess of forty ( 40) hours in 

any week, or eight (8) hours in any day; 

(c) Outside sales and/ or sales service men ; 

(d) 'Vatchmen who may be permitted to work a maximum of 

fifty -six (56) hours in any week; 

(e) Engineers, firemen and pumpmen who may be permitted to 

work a maximum of forty-eight ( 48) hours in any week. 

No employer shall knowingly permit any employee to work for 

any time which, when totaled with that already performed with 

another employer or employers, exceeds the maximum permitted 

herein. 1 

SECTION 2. Wages.-

A. No employee not else"" here in this c;:ection otherwise specifically 

provided for or excepted shall be paid at less than the rate of 

(a) 40¢ per hour in any city, wherever located, of 100,000 population or over, or in the im1nediate trade area of such city; 

(b) 40¢ per hour in that part of the continental United States 

west of the 108th longitudinal meridian (defined in this Code as the 

Pacific Coast T erritory) ; 

(c) 371j2¢ per hour in that part of the continental United 

States north of the 38th parallel of latitude and east of the 108th 

longitudinal meridian, including the entire States of Kansas and 

Oklahoma; 

(d) 30¢ per hour in all other parts of the United Stat-es with the 

exception of the States of l{ansas and Oklahoma. 

B. No clerical, office, sales service or sales employees (except outside sales and/ or sales service men) shall be paid at less than the 

rate of: 

(a) $15.00 per week in any city of over 500,000 population or in 

the immediate trade area of such city; 

(b) $14.50 per week in any city between 250,000 and 500,000 

population, or in the immediate trade area of such city; 

(c) $14.00 per week in any other place. 

1 See paragraph 2 of order approving this Code. 
45 

This article establi hes a minimmn rate of pay which shall applv 

irrespective of whether an emplo ee i actually compen ated on a 

time rate, piece-work or other ba i . 

SECTION 3. Wages Abov(l the ~finhnum.-Employers shall not reduce the rates of ~Vage for employees compen ated at rates aboYe 

the minimum (notwith tanding that the number of hour worked in 

such employm nt may be hereby decreased) and where in any ca e 

an employer has not increa eel the rates of wages for such employe s 

prior to the effecti' e date of this Code by an equitable readjustment 

of all such wage rate , such employer hall readjust all such wage 

rates. This provi ion hall be interpreted in the arne manner that 

Paragraph 7 of the President's Reemployment Ao-reement ha been 

interpreted by the Admini trator in Interpretation No . 1 and 20. 

Thi section shall not apply to employee compen. ated at rate aboYe 

$35.00 _per " ek. 

SEcTION 4. Child Labor.- No person under sixteen (16) year of 

age hall be employed in the industry. No person under eighteen (1 ) 

years of age shall be employed on mining, quarrying or milling 

operations. 

SEcTioN 5. Collective Bargai11in,q Etc.-In compliance with Section 7 (a) of the Act, it is provided : 

(a) That emplo) ees 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 emplo) ers of 

labor, or their agents, in the de ignation 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) That no employee and no one seeking employment shall be 

required as a condition of em1loyment to join any company union 

or to refrain from joining organizing or assisting a labor organization of his own choosing· an l 

(c) 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. 

SECTION 6. Reclassification of E1nployees.-N o employer shall reclassify employees or duties of occupations performed or engage in 

any other subterfuge for the purpose of defeating the purposes or 

provisions of the Act or of this Code. 

SECTION 7. State L aws.-N o provision in this Code hall supersede any State or Federal law which imposes on employers more 

stringent requirements as to age of employees wages, hours of work, 

or as to safety, health, sanitary or general working conditions, or 

insurance or fire protection, than are imposed by this Code. 

SECTION 8. Posting.-Each employer shall post copie of the Code 

in accordance with such rules and regulation as the Administrator 

may prescribe. 

SECTION 9. I nfirm and Aged E11~ployees.-A person whose earning 

capacity is limited because of age or physical or mental handicap 

may be employed on light work at a wage below the minimum establi heel by this Code, if the employer obtains from the State authority 

designated by the United States Department of Labor, a certificate 

authorizing his employment at such wages and hours as shall he 

57414°----544-43----34----2 
46 

stated in the certificate. Such authority shall be guided by the instruction of the United States Department of Ln bor in issuing 

certificates to such per ons. Each employer shall file monthly with 

the Cod Authority ali t of all such person employt>d by him, showing the wages paid to and the mnximum hours of work of such 

employee. 

SECTION 10. 0 O?npany H ouseiJ and Sto1·es.-Employee other than 

maintenance or supervi ory Inen, or those neceEsary to protect property, shall not be r quired as a condition of employment to liYe in 

homes r ented from or specified by the employer. 

No m_ployee hall be required as a condition f employment to 

trade at a store owned or spec]fied by an employer. 

SECTIO~ 11. Pay11unt of 1V ag s.-Every employer shall (except 

under circumstances defined by the Code Authority ancl approved 

by the Administrator) make payment of · ll \\ages due in lawful currency r by negotiable check therefor payable on demand. The e 

wao-es shall be exemp t from any deduction for pensions, insurance, 

or sick benefits, other than tho e Yolunhlrily agreed to by the wage 

earner, or required by law. \Vag s shall be payable at least semimonthly, and salaries at least monthly. No employer (except when 

specifically authorized by the employee or except in compliance with 

garnishment or other legal process) hall withhold wages. 

SEcTION 12. Safety and li ealth.-The Code Authority shall study 

conditions relating to safety and health of employees and submit 

to the Administrator standards therefor within a reasonable time 

after having been called f or by him. 

ARTICLE IV-ADMINISTRATION 

SECTION 1. Code Au.thority.-

(a) There shall forthwith be constituted a Code Authority consisting of thirteen (13) persons, twelve (12) of whom shall be the 

Board of Directors of the Association, as such board shall be constituted from time to time, and one (1) of whom shall not be a 

director or memb r of the Association but shall be a member of the 

industry selected by the non-association members of the industry by 

a method of selection approved by the Administrator; provided, 

however, that if at any time any memb r of the industry entitled 

to be upon the Code Authority under the provisions of paragraph (c) 

of this Article, shall not be a member of the Association and its 

Board of Directors or selected as the non-association member of the 

Code Authority, then the membership of the Code Authority is automatically increased to include any such member of the industry. 

Until the non-association member has been selected and qualified the 

Code Authority shall consist of the twelve directors of the association and such of those members of the industry covered by paragraph (c) as are not members of the A sociation and its Board of 

Directors : Provided, however, that the Administrator may appoint 

a non-a sociation member to act until the permanent non-a sociation member ha been selected and. qualified. E ach such member of 

the Code Authority shall be entitled to m~e (1) Yote. 

(b) In addition to membership as above provided, there may be 

not to exceed three (3) members without Yote, to be ar pointed by 

th'- Administrator to serve without cost to the industry. 
47 

(c) The Code Authority and any committee thereof mu t have 

thereon a repre ·entative of each men1ber of th industry pro h1cing 

twenty-five per cent (25%) or more of annual industry tonnage, 

and a representative of one of the members of the indu try having 

its entire plant facilitie in the Pacific Co st Territory ea h uch 

repre entativ to be a person acti n•ly connected with the bu iness 

of such member. Any member of the Code Au hority and of any 

committee thereof may appoint as l is a.lternate any other per on 

acti-vely connected with the bn. ines of any momber of the inclu try. 

No member of the inclu~try . hall ha e more than one repre entative on the Code Authority or any committee thereof, and no alternate shall be onnected with any company already represented on 

the Code Authority or any committee thereof provided that any 

member of the Code Authority may appoint an alternate from his 

own company. 

(d) In order that the Code Authority shall at all times be truly 

representative of the industry and in other respects compl ' with 

the provision of the \ct, the Admini trator may pre cribe uch 

hearing as he may deem proper; and if he shall find that the Code 

Authorit r i not truly representative or does not in other re. pects 

comply with the provisions of the Act, he may require an appropriate modification in the method of election of the Code Authority. 

(e) At any duly called meeting of the Code Authority or of any 

committee thereof a three-quarters affirmative vote of the members 

present ·hall be required to 1nake effective any action of uch Code 

Authority or committee; provided, however, that after the Code 

Authority or any committee thereof shall have taken any action, 

if any three members of the Code Authority or any member or 

member of the industry ha,ing twenty-five per cent (25 7o ) or more 

of the industry tonnage, hall, at the meeting at which the a tion 

was taken, reque t it, the action of the Code Authority shall be 

su penclcd for a term of ten ( 10) days; if, within ·aid ten-day 

term any member or members of the industry havino· twenty-five 

per cent (25%) or more of said indu try tonnage (including he 

tonnage of the member or members fir t r que ting the uspen ion) 

shall in -nTiting call for a vote by tonnage, then such action of the 

Code Authority cr of any uch Committee . hall be and remain 

suspencled for a term of thirty (30) days from the elate such action 

by the Cod uthority or by any such Committee was a lopted. If, 

within aid period of suspension, any member or members of the 

indu try having seYenty per cent (70% ) of the indu try tonnage 

(includino· the tonnage of the member or members having requested 

or joined in the susp nsion) shall object in writing to the Code 

Authority to uch action of the ode Authority or of any such Committee then the same hall becom_e inoperative otherwiEe the same 

hall stand n. the action or the Code Authority or of uch Committee 

from the date of original adoption of such action. At any meeting 

of the ode Authority at 1\l ich any action is taken, an- mem.ber of 

the Code Authority may vote the tonnage of any member of the 

indu try w·ho is not a member of the Code Authority and for whom 

he holds and presents a duly executed power of attorney in form 

pre cribed by the Code Authority. In case at any time the Administrator shall find after consultation with the Code Authority that 
48 

the above proviso operates in such manner that the Code Authority 

can not effectuate the purposes of the Code or of the Act, then after 

such notice and hearing as he may specify, he may require such 

modification in the proviso as he may deem necessary to enable the 

Code Authority to function properly in the administration of the 

Code but such modification shall give effect to a vote by tonnage on 

a basis that the vote of seYenty per cent (70% ) of industry tonnage 

will render any action or proposed action of the Code Authority 

ino~erative. 

(f) Within fifteen (15) days after the effective date hereof, each 

member of the industry shall file with the agency designated by 

the Code Authority in accordance with Section 5 (a) of this Article 

IV, a certified statement of his actual tonnage of calcined gypsum 

including that contained in manufactltred products plus eightyfive per cent ( 85%) of the actual tonnage of rock and other forms 

of raw gypsum sold by each member during the calendar year 

1933. The total of such tonnage so filed shall, for the purposes of 

this section, be the industry tonnage, and the tonnage filed by each 

member shall be the tonnage which such member is entitled to vote 

hereunder or use for the purposes aforesaid during the term of this 

Code, as defined in Article IX, Section 8. 

(g) A majority of the voting members of the Code Authority 

or any Committee thereof shall constitute a quorum. 

SECTION 2. Each trade or industrial .association directly or indirectly participating in the selection or activities of the Code Au- thority 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, 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 3. :Members of the industry shall be entitled to participate 

in and share the benefits of the activities of the Code Authority by 

assenting to and complying with the requirements of this Code and 

sustaining their reasonable share of the expenses of its administration. 

Such reasonable share of the expense of administration shall be determined by the Code Authority, subject to review by the Administrator, 

on the basis of volume of business and/or such other factors as may 

be deemed equitable. . 

SECTION 4. 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 any other member, officer, agent, or employee 

of the Code Authority. Nor shall ani member of the Code Authority, in the conduct of his duties hereunder, be liable to anyone for 

any action or omission to act under this Code, except for his own 

wilful misfeasance. 

SECTION 5. Powers and Duties.-The Code Authority shall have 

the following further powers and duties and in the exercise thereof 

may appoint from time to time agents or committees, every such committee to have not less than five (5) m.embers, provided that such 

agents and committees shall comply with the provisions hereof. 
49 

(a) To colle t from the member. of the industry all lata and 

stati tics which may be properly railed for under this Code. Any 

data andj or statistics of a confid ntial nature hall be collected by a 

firm of accountants or other suitable agency sele ted by the Code 

Authority and not a member or connected with a member of the 

indu try, and hall be kept confidential; provided that any violation 

found to exist shall be reported to the Code Authority and all ·uch 

data and tatistics hall be fully a-vailable at all times to the proper 

governmental officials. 

(b) To repre ent the industry in c nferring -with the Admini -

trator with respect to the application of thi Code and of said Act 

and any regulations i sued thereunder, and, ubject to uch rules 

as the Administrator may pre cribe, hear complaints and if possible, 

adjust the same in accordance with the provi ions hereof, and to 

coordinate the administration of this Code with any Code or Codes 

adopted and approved b3 any other indu try which may aff ct this 

industry, with a view to providing joint and harmoniou. action upon 

all matters of common interest, and to receive and initiate any proposals for supplementary provisions or amendments of thi Code, 

or additional Codes, applicable to the indu try. 

(c) To make rules and regulations for its conduct in the admini - tration of this Code within the scope of it. powers and dutie thereunder; and to cooperate with the Administrator and oth·er proper 

governmental officials in the enforcement of this Code. 

(d) To cooperate with the Administrator in re tricting the u ' eJ 

of the N .R.A. Code Insignia solely to those members of the ind u try 

who are complying with this Code. 

SECTION 6. Pacific Coast 001n1nittee.-Anything in this Code to the 

contrary notwithstanding, any matters at any time pending before 

the Code Authority concerning the administration or enforcement 

of this Code affecting solely the interests of the member. of the 

industry in the Pacific Coast Territory shall be referred for deci. ion 

to a committee of five ( 5) selected by the member of the indus.._ry 

having one or more plants for the manufacture of industry products 

located in such territory, and the Code Authority shall be bound 

by the decision of uch committee and shall take such action thereon 

as may be recommended by such con1mittee, when same hall have 

been approved by at least three-fourths (%,) of the member having 

one or more plants in the Pacific Coast Territory. The representatives of the Administrator appointed to the Code Authority may 

serve in like capacity with respect to the Pacific Coast Committ~e . 

The deci ion of this Committee shall be subject to the provisions 

of Section 7 of this Article IV. 

SE TION 7. Appeal.-. Any intere ted party shall have the right of 

cmnplaint to the Code Authority with respect to any act of any 

agent or committee designated by the Code Authority to act for or 

in it behalf, and a pron1pt hearing and decision shall be had thereon. 

An} intere ted party hall have the right of appeal to the Admini. trator, under such rules and regulations as he shall prescribe, with 

respect to any decision, rule, regulation, order, or finding made by 

the Code Authority. 

Whenever any appeal is taken to the Administrator fr m any 

action of the Code Authority, the Administrator may require that 
50 

such action be suspended :for a period o:f not to exceed thirty (30) 

daYs to afford an opportunity :for investigation o:f the merits of 

such action, and :further co_nsideration by such Code Authority or 

agency pending final action. 

If the Administrator shall determine that any action of the Code 

Authority or any agency thereof be unfair or unjust or contrary to 

the public interest the Administrator may require that such action 

be suspended to afford an opportunity for investigation 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 (30) days' notice to him of intention to proceed with 

such action in its original or modified form. 

ARTICLE V-COSTS 

SECTION 1. Sales Below Oost.-After a definition and schedule of 

cost has been adopted by the Code Authority and approved by the 

Administrator as provided in Section 2 of this Article V, no member 

of the Industry shall price or sell any Industry product below such 

member's cost, as so defined, except to meet a competitive price on 

the same product or except in the introduction of a new industry 

product or except when the necessity of meeti~ the competition of 

a non-indu try product is recognized by the vode Authority and 

npproYed by the Administrator. The Code Authority may consider 

and describe other conditions and circumstances, if any, under which 

members of the industry may sell below such member's cost which 

shall first be submitted to the Administrator for approval. Any 

exceptions permitted by or under this section shall be disclosed to 

and ·hall apply to all members of the industry. 

SEcTION 2. Determination of Oost.-Within ninety (90) days after 

the effective date of this Code, the Code Authority shall prepare a 

definition and schedule of costs for the purposes of this Article V. 

After the same shall have been submitted to the Industry for criticism and suggestions, the same. shall be submitted to the Administrator for his approval. 

Each member of the Industry shall have available records and 

jnformation necessary for determining costs in accordance with such 

definition and schedule irre pective of the member's system or method 

of keeping records. 

For the purposes of this Code, cost of each Industry product shall 

be determined by each member of the Industry by computing according to such definition and schedule the weighted average cost of the 

total production of such product of such member for the twelve (12) 

calendar months precedino- the date of sale of such product. 

The provisions of this Article V shall not apply to those products 

excepted from the provisions of Article VI of this Code. 

ARTICLE VI 2-POBLICATION OF PRICES 

SECTION 1. Prioe Publication.-(a) Each member of the industry 

shall, within ten (10) days after the effective date of this Code, file 

2 See paragraph 2 of order approving this Code. 
51 

with the Code Authority or such agency or agencie as the Code 

Authority may designate, complete li ts or chedule of price and 

terms and conditions of sale of all indu try products offered for sale 

by such member \\hich shall become effectiYe at the expiration of 

such ten-day period; and shall so file all subsequent change therein 

or re' i ion thereof which shall become effective at the times herejnafter provided in Section 2 of thi Article VI. 

(b) Such price lists or schedules and term and condition of sale 

and change or revi ions thereof, so filed as aforesaid shall from 

and after the effective date thoreof, for the purpose of this Code 

be treated as the published price lists or schedules and terms and 

condition of sale of the member filing the same. 

(c) Whenever any price list, schedules, or terms or conditions of 

sale, and change in or revision thereof, has been filed by any member 

in accordance with the provi ions of the preceding paragraphs, the 

Code Authority hall forthwith cause a copy of the same to be sent 

to each member of the industry who produces or sells or desires to 

sell any industry product in the territory as to which the prices 

therein mentioned may apply; and such price lists or schedule and 

term and conditions of sale and changes in or revi ion thereof, 

shall be available after the effective date thereof to the trade and to 

other prospective buyers. 

(d) The Code Authority shall designate the Pacific Coast Committee (established under the provisions of Section 6 of Article IV), 

or such agency as said Committee may select, as its agency for receiving and distributing price lists and schedules and terms and conditions of sale and changes in or revision thereof applicable to ales 

or quotation for ale, for delivery within the Pacific Coast Territory. Such committee or agency shall immediately upon receipt of 

any price lists or schedules and terms and conditions of ale or 

change in or revi ions thereof, send a copy thereof to the Code 

Authority or such agency as the Code Authority shall appoint for 

that purpose. 

(e) Price lists and schedules and terms and conditions of sale 

need not be filed covering ales of industry products by member of 

the industry to other members, except stucco for dry mixing. Price 

li t of pecial products manufactured by not more than three (3) 

members of the industry, when such special products are not used 

in or sold to per on connected with the building indu try and price 

li ts on precast tructural gypsum products not sold to dealers 

(except tandard partition tile), need not be filed. 

SECTION 2. 1Vait-ing Pm·iod.-All changes in or revisions of any 

member price lists or chedules and terms and condition of ale 

·hall be so filed five ( 5) days prior to the effective date thereof and 

shall becon1e effective at the end of aid five ( 5) day unles the 

1nember filing shall cancel the same in writing at any time before 

such effective date; 

Provided ho\\ever that if any member shall recoive notice of the 

filing of change in or revisions of another member's price lists or 

chedules and terms and conditions of sale too late to .file and make 

effective on the same date such changes or revisions in his own price 

lists or schedules and terms and conditions of sale as he desire to 

meet the changes and revisions already filed, then if such member 
52 

shall file his changes or revisions at least twenty-four (24) hours 

before the effective date, the same shall become effective on the effective date of such other member's changes or revisions; 

Provided, further, that during such period of tune as the Administrator shall wholly suspend or eliminate the waiting period in this 

Article, all changes in or revisions of such price lists or schedules 

and t erm. and conditions of sale shall become effective immediately 

upon the filing thereof; or if the Administrator at any time shall 

limit such waiting period to some period of time less than five ( 5) 

days, then the maximum time permissible under such limitation shall 

stand, in lieu of the five ( 5) days above mentioned, as such waiting 

period, and this section, so modified, shall be and remain in full force 

and effect. 

SECTION 3. Sales at Published Prices.-No member of the industry 

shall sell any industry product at a price or prices below, or upon 

terms and conditions more favorable to the buyer than those stated 

in such member's published price lists or schedules and terms and 

conditions of sale then in effect. 

ARTICLE VII-MERCHANDISING PLAN 

The Code Authority shall study marketing conditions and make 

recommendations to the industry for a merchandising plan for the 

sale and distribution of industry products by all members of the 

industry containing such provisions as may be necessary or proper 

to insure fair selling methods by the industry, and to prevent unfair 

competitive practices; which plan after approval by the Administrator may be adopted by any member of the Industry at his voluntary election, and included in the member's terms and conditions of 

sale fixed with the Code Authority; but nothing contained in this 

Article VII or any approval or disapproval by the Administrator 

of any such plan shall either be construed to prevent any member of 

the industry from adopting and using any plan of merchandising 

such member desires and changing and altering the same from time 

to time, or as an approval of any member's plan of merchandising 

except when expressly approved as part of a plan adopted by the 

Code Authority. 

ARTICLE VIII-TRADE PRACTICE RULES 

RuLE 1. Rebates, Subsidies, etc.-No member of the industry shall 

make payment or allowances of rebates, refunds, credits, unearned 

discounts, or other allowances, whether in the form of money or 

gifts or otherwise, as a means of effecting or concealing price discrimination or the extending to certain purchasers of special privileges, including discriminatory allowances for services or other 

thin o-s not extended to all purchasers under like terms and 

conditions. 

Included within the practices prohibited, but not by way of limitation, are price concessions in the furnishing of materials without 

charge, giving of allowances for advertising not actually placed, the 

making of allowances on damaged sacks in excess of their actual 

value, the making of allowances for unsupported claims for damage 
53 

or shortage of goods in transit, the making o:f allowances on unverified complaint of the quality of goods, the rental of warehouse space 

owned or leased by manufacturers to dealers at a rental les than 

what the fair value would be for other similar property in adjacent 

territory. No member shall hereafter rent or lease or extend any 

existing lease for warehouse space. for industry products from lumber 

or building material dealers. 

RuLE 2. Defa1nation of Oompetitors.-No member of the industry 

shall circulate or disseminate false or misleading information by 

words or acts relative to the prices, credit standing business integrity, or ability to perform contracts, of any competitor. 

RULE 3. False Branding.-N o member of the industry shall mark, 

brand or fail to brand products for the purpose or with the effect of 

misleading or deceiving the purchasers with respect to the quantity, 

quality, grade or substance of the goods purchased. 

RULE 4. Imitation of T1·ade M m·k.-N o member of the industry 

shall knowingly imitate or simulate any trade-mark, trade name, 

package, brand or label of a competitor in such degTee a to deceive 

or have the tendency to deceive customers. 

RULE 5. 0 onsignment.-N o member of the industry shall hip 

goods on consignment except under circumstances to be defined by 

the Code Authority, where peculiar circumstances of the industry 

require the practice. Where such exception is made it shall be applicable to all members of the industry under like circum tances and 

conditions. 

RULE 6. SMp1nents without Orders.-N o member of the industry 

shall make shipments, other than those involving mere tran fer of 

materials to manufacturer's warehouses or plants, without in each 

case having an order from a customer for shipment at the time of 

making shipment. 

RULE 7. Failure to State Unit Prioe.-No member of the industry 

shnll submit bids for two or more commodities, one or more of which 

is an indu try product, in which the unit price of each commodity is 

not clearly stated, except in the case of erected jobs including labor 

andjor lump sum bids on fireproofing, acoustical materials or special 

products. 

RuLE 8. Omnbination Sales.-No member of the industry for the 

purpose or with the effect of influencing the sale of industry products 

shall sell or offer for sale other commodities at prices below the 

member's current price for such other commodities. 

RULE 9. Substitution.-N o member of the industry shall market or 

sell a superior product in packages of a lower priced and inferior 

product at prices lower than the published price of such superior 

product. 

RuLE 10. Splitting of Oompensation.-No member of the industry 

shall permit splitting of commissions or other compensation received 

by an employee or agerit of the member with a buyer or with others 

to influence a sale. 

RuLE 11. Oom1nissions.-No member of the industry shall pay 

commissions to one buyer because of purchases made by another 

buyer in the same buyer classification. 

RULE 12. Quantity Saies.-N o member of the industry shall make 

a price for quantities in excess of single carloads lower than the 

single carload price, provided however that this rule shall not apply 
54 

to sales by one member of the industry to another Inember, except 

sales of stucco for dry mixing. 

RULE 13. Pay1nents.-N o member of the industry shall agree at 

the time of sale to accept anything other than cash, negotiable check, 

or customers own interest bearing paper, except at current market 

value, in payment for materials purchased. 

RULE 14. Finanoinq Dealers and Oontractors.-No m.ember of the 

industry, for the purpose of influencing a sale, shall offer, or promise 

to finance or to aid in financing any contractor or any dealer, 

whether directly or indirectly. 

No member of the industry shall assume the cost of or endorse or 

guarantee other bidders' bonds, or in any way relieve other bidders 

of the responsibility for or of the expense of providing such bonds. 

RULE 15. False Olassification.-No member of the industry shall 

falsely classify conunodities for freight purposes different from the 

classification adopted by the carriers, to secure lower freight rates. 

RuLE 16. Protected Oontracts.-All contracts and orders for shipment taken before or after the effective date of this Code may be 

protected at the price at which the contract and/or order was taken; 

and material sold under such protection shall be applied only on the 

contract and/ or order for which the protection was given; provided, 

however, that contracts or oraers for dealers stock (except gypsum 

sold for agricultural purposes) shall not be made or accepted for 

shipment beyond thirty days from date of contract or order. 

RULE 17. Duration of Quotations.-All quotations shall be subject 

to change without notice except for specific building jobs where quotations may be protected against a price increase for not more than 

thirty days, except for Federal Government jobs, for which protection may be given for sixty days. 

RuLE 18. Specific Job Protection.-Each member shall list with 

the Code Authority or its agency within fifteen days after the effective 

date of any price increase all outstanding quotations or commitments 

on specific jobs, made prior to the price increase, naming the job, its 

location, the dealer, the contractor, approximate tonnage, a.nd the 

price quoted. All quotations for specific jobs shall expire thirty days 

(except quotations on Federal Government jobs, which shall expire 

sixty days) after the effective date of any price increase unless during 

that period a firm contract has been made to cover said job. During 

such periods above referred to, any specific job not covered with a 

firm contract shall be open to all members of the industry at the 

same price and under the same terms and conditions as listed with 

the Code Authority by any other member. Within ten days after 

closing of a firm contract on any such specific job, the member of 

the industry shall list with the Code Authority or its agency his 

contract, supported, when requested by the Code Authority, by 

definite informatipn concerning the contract between the dealer and 

contractor or owner as the case may be. All quotations on specific 

jobs shall provide tha.t the quotation shall expire upon the 1naking of 

a contract covering that job. 

RULE 19. Listinq Protected J obs.-Each member of the industry 

shall list with the Code Authority or its agency, within fifteen 

days after the effective date of this Code, all contracts for specific 

jobs in effect on the effective date of this Code and within fifteen 
55 

days after his price increase all contracts for specific jobs in effect 

on the date of his price increase, indicating in each case the amount, 

if any, of tonnage shipped prior to the date of li ting, showing the 

location of the job, name of the dealer, name of the contractor, total 

unshipped tonnage, with such supporting data as the Code Authority 

may request to show the nature of the transaction between dealer 

and contractor and/or owner. 

RULE 20. Specific Job Repm·ts.-Any member of the industry 

listing any specific job contracts shall report to the Code Authority 

or its agency all shipments made thereon as and when the same 

are made and also shall report completion, cancellation or modification of any of his such contracts, and may report information concerning any member's listed jobs. The Code Authority shall 

promptly dis eminate to the members of the indu 'try concerned, all 

such information pertaining to protected jobs. 

Rules 16, 17, 18, 19 and 20 shall not apply to preca t structural 

gypsum products not sold to dealers (except standard partition tile). 

ARTICLE IX-MrscELLANEOus 

SECTION 1. Monopolies mo Monopolistic Practices .-No prov1s1ons 

of this Code shall be interpreted or applied in such manner as to 

permit monopolies or monopolistic practices; permit or encourage 

unfair competition; eliminate or oppress small enterpri e , or eli -

criminate against them. 

SECTION 2. Exports.-Articles V, VI, VII and VIII hereof shall 

not apply to products sold for export outside continental United 

States or for hipment to Panama Canal Zone and Ala ka. 

SEcTION 3. Patents.-Nothing contained in this Code hall be COilstrued a prohibiting any member of the indu try from exercising 

all its and/ or their lawful patent rights, or as requiring any member 

of the industry to do any act in conflict with the terms of a patent 

licensing agreement legally binding upon such member. 

SEcTION 4. Cancellation or M odification.-The President may 

from time to time cancel or modify any order, approval, license, 

rule or r egulation i ued under the Act. 

SECTION 5. Amen(l?nents.-It is contemplated that from time to 

time amendments and modifications or supplementary provisions 

to this Code or additional Code may be submitted for the approval 

of the President to prevent unfair competition .in price or other 

unfair or destructive competitive practice , and to effectuate the other 

purposes and policies of the Act. Such amendments and modifications supplementary provi ions or additional code , after the same 

shall have been submitted to the industry and hall have been approved by a fair repre entation of the industry, may be presented to 

the President by the Code Authority· and upon the approval of the 

President of any such amendment, supplementary provision or 

additional code, after such notice and hearing as he shall specify the 

same shall become a part of this Code and effective as such. 

SECTION 6. Violation.-Violation by any member of this indu try 

of any of the provisions of this code or of any approved amendments hereof, is an unfair method of competition and shall be subject to the penalties prescribed by tpe Act; but nothing herein con-
56 

tained shall be construed to create any liability or penalty for violation of this Code beyond the penalties prescribed by the Act. 

SECTION 7. Approval and T errnination.-This Code shall be in 

effect beginning the second Monday after its approval by the President pursuant to the Act, and shall in any event terminate on June 

16, 1935, or the earliest date prior thereto on which the President 

shall by proclamation or the Congress shall by joint resolution declare that the emergency recognized by Section 1 of the Act has 

ended. 

Approved Code No. 420. 

Registry No. 1024-05. 

0