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3 126~ 08486 7612 Registry No. 1002-1-o1 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

ASBESTOS INDUSTRY 

AS APPROVED ON NOVEMBER 1, 1933 

BY 

,. . 0 ~-

PRESIDENT ROOSEVELT 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED .STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For s:~ e by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents 
( 

.. 

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f 

This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., and by district offices of the Bureau of 

Feorign 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, Ill.: Suite 1706, 201 North Wells Street. 

Cleveland, Ohio : Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, Mich.: 2213 First Nation:.tl Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla. : Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore .Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

New Orleans, La.: Room 225-A, Customhouse. 

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa. : 933 Commercial Trust Building. 

Pittsburgh, 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.: 809 Federal Building. 

{ll) 
EXECUTIVE ORDER 

ConE oF FAIR CoMPETITION FOR THE AsBESTOS INDUSTRY 

An application having been duly made, pursuant to and in full 

compliance with the provisions of title I of the National Ind ustrial 

Recovery Act1 approved June 16, 1933, for my approval of a Code of 

Fair Competition for the Asbestos Industry, and hearings having 

been held thereon and the Administrator having rendered his report 

containing an analysis of the said code of fair competition together 

with his recommendations and findings with respect thereto, and the 

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 D. Roosevelt, President of the 

United States, pursuant to the authority vested in me by title I of 

the National Industrial Recovery Act, approved June 1G, 1933, and 

otherwise. do adopt and a.I?prove the report and recommendations, 

and findings of the Administrator and do order that the said code 

of fair competition be and it is hereby approved. 

THE \i\TmTE HousE, 

N ove1nber 1. 1933. 

Approval Recommended: 

HuGHS. JoHNSON, 

Administrator. 

18933°----188-132----33 

FRANKLIN D. ROOSEVELT. 

(ill) 
OCTOBER 27' 1933. 

The PRESIDENT, 

The White House. 

Sm: This is a report of the hearing on the Code o:f Fair Competition for the Asbestos Industry of the United States, conducted in 

'Vashington on October 19, 1933, in accordance with the provisions 

of the National Industrial Recovery Act. 

PROVISIONS FOR HOURS AND WAGES 

Employees in the Asbestos Industry are limited to a work week of 

40 hours, except that to meet emergency production requirements, 48 

hours per week are permitted for six weeks in any six months' period 

with time and one third for overtime over 8 hours per day. Overtime pay has never previously been paid in this Industry, and is here 

provided to restrict overtime work. 

A tolerance of 10 percent over the 40 hours without overtime pay 

is granted to care and maintenance men, watchmen, engineers, and 

shipping employees, but for these classes of employees overtime at 

time and one third is provided for all hours above 44 per week. 

Highly skilled continuous-process workers may be permitted in 

special cases to work up to 48 hours per week where the limiting of 

hours would restrict production. 

Outside salesmen and persons in a mananagerial capacity receiving 

more than $35.00 per week are not limited by the above hours of 

labor, but all office employees receiving less than $35.00 per week are 

limited to a maximum of 48 hours in any week and an average of 40 

hours per week in any six-months' period. 

The minimum wage prescribed for :factory workers is 40 cents an 

hour, except for light work not requiring the strength and skill of 

male labor, where 35 cents per hour may be paid to female employees. 

This is not considered as a discrimination against :female employees, 

and the provision is made that where female employees perform the 

same class of work as male employees they shall receive the same 

rates o:f pay. Office employees shall receive under this Code not less 

than $15.00 per week in cities of over 500,000 population, $14.50 in 

cities over 250,000, and $14.00 in cities under 250,000. 

The Code provides that the wage rates of all employees receiving 

more than the minimum rates shall be equitably readjusted, and that 

there shall be no evasion of the Code by reclassification of the functions of an employee. 

No person under 16 years of age shall be employed in the Industry, 

and no minor under 18 years is to be employed in hazardous occupations. 

ECONOMIC EFFECT OF THE CODE 

Until the passage of the National Recovery Act this Industry had 

never been organized as a unit. The Industry comprises 58 com-

<IV> 
v 

panies operatin$. 71 plants and having a total invested capital above 

$50 000 000. 1ts products are widely used as capital goods in the 

chief ba ic industnes of the country. 

Emplo ment in the Industry in 1929 was about 10,0001 and had 

declined to 59 percent in February 1933. Upon the adoptiOn of the 

40-hour week as prescribed in this Code employment rose to 90 percent of the 1929 level. About 4,000 persons have been reemployed 

under the provisions of this Code. This represents approximately a 

30-percent increase. 

In :May 1933, the average weekly wage in the Industry was $1'7.49. 

Through the operation of the provisions of this Code this average 

was increased to $19.48, or an increase of about 10 percent in spite 

of the shorter work week. 

FINDINGS 

(a) The Code as recommended complies in all respects with the 

pertinent provisions of Title I of the Act, including, without limitation, subsection (a) of Section 1 and subsection (b) of Section 10 

thereof ; and that 

(b) The applicant group imposes no inequitable restrictions on 

admission to membership therein and is truly representative of the 

Asbestos Industry. 

(c) The Code as recom1nended is not designed to promote monopolies or to eliminate or oppress small enterprises and will not operate 

to discriminate against them, and will tend to effectuate the policy 

of Title I of the National Industrial Recovery Act. 

It is recommended, therefore, that this Code be approved. 

Respectfully, 

HuGH S. JoHNsoN, 

A d1ninistrator. 

CODE OF FAIR COMPETITION FOR THE ASBESTOS 

INDUSTRY 

AnTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act the following provisions are submitted as a Code of 

Fair Competition for the Asbestos Industry, and upon approval by 

the President such provisions shall be the standard of fair competition in this Industry. 

ARTICLE II-DEFINITIONS 

Whenever used in this Code or in any schedule or supplement appertaining thereto, the terms enumerated in this Article shall have 

the meanings herein defined unless the context shall otherwise clearly 

indicate. 

SECTION 1. The term '~ the President " means the President of the 

United States of America. 

SEc. 2. The term "the Administrator" means the administrator 

of Title I of the National Industrial Recovery Act and at the time 

in office. 

SEc. 3. The term "the Act" means the National Industrial Recovery Act as approved by the President, June 16, 1933. 

SEc. 4. The term "products" means the products listed in Schedule I hereto attached. 

SEc. 5. The term "the industry" as used herein shall mean and 

include the manufacture and sale by the manufacturer either by himself or by subsidiaries or affiliates of the manufacturer, of the products listed in Schedule I hereof. 

SEc. 6. The term" Division" means a section of the asbestos industr<J comprising a group of manufacturers who manufacture and/or 

sell a group of related products as set forth in Schedule I. A manufacturer who manufactures products in more than one Division shall 

be a member of each such Division. 

SEc. 7. The term "member of the industry" means any person, 

including without limitation any other legal entity, engaged in the 

Asbestos Industry in the United States as defined in Section 5 above. 

SEc. 8. The term " employee " means any person engaged in the 

asbestos industry, as defined in Section 5 above, in any capacity in 

the nature of employee, irrespective of the method of payment of 

his compensation. 

SEc. 9. The term "employer" means anyone by whom such employee is compensated. 

Ec. 10. The term "learner", as used herein, means a person who 

has had no previous experience in the manufacture of asbestos 

products and whose employment as such shall not exceed six weeks. 

(1) 
2 

SEc. 11. The term " the Code " means this Code and all amendments thereof and all schedules and supplements appertaining 

thereto. 

SEc. 12. The term " member of the Code " means any member of 

the Acbestos Industry who shall become a member of the Code as 

hereinafter provided in Section 1 (c) of Article VI. 

SE . 13. The term "the effective date" means the second ~Ionday 

after the Code shall have been approved by the President. 

SEc. 14. The term "the Institute" means the Asbestos Institute, 

an unincorporated association having an office in the City of New 

York, State of New York. 

SEc. 15. The " Southern section " means the States of North Carolina, Tennessee, Arkansas, Oklahoma, Texas, New Mexico, and the 

States south thereof. 

SEc. 16. The "Northern section" means that part of the United 

States not included in the Southern section. 

SEc. 17. Population for the purpose of the Code shall be determined by reference to the 1930 Federal Census. 

ARTICLE III-HoURs OF LABOR 

SECTION 1. Factory employees, mechanical workers, or artisans, 

except as hereinafter provided in sections 2 to 4, inclusive, shall not 

be employed (a) in excess of 40 hours per week, except that to meet 

seasonal requirements or emergencies 48 hours per week for not 

more than 6 weeks in any sjx months' period shall be permitted if 

the average employment over the six months' period is not more 

than 40 hours per week; (b) in excess of 8 hours in any 24-hour 

period, except that to meet seasonal requirements or emergencies 

more than 8 hours may be worked, provided time and one third is 

paid for overtime in any one day. - · SEo. 2. There shall be a tolerance of 10% additional hours for (a) 

employees engaged in the preparation, care, and maintenance of 

plant, machinery, and production facilities, (b) watchmen, firemen~ 

and engineers, and (c) shippers and delivery employees; provided, 

however, that any such work by such employees in excess of an 

average of 44 hours per week over a six weeks' period shall be 

compensated for at the rate of time and one third. 

SEc. 3. The limitation as to hours of labor in any 24 hours shall 

not apply to very special cases where restriction of hours of labor of 

highly skilled workers in continuous processes would unavoidably 

reduce production; provided, however, that employees in such cases 

shall not work more than 48 hours in any one week. 

SEc. 4. The limitation as to hours of labor shall not apply (a) to 

outside sales or sales-service men, technicians (highly skilled factory 

workers are not to be classed as technicians), nor to persons in a 

managerial, executive, or supervisory capacity who receive more than 

$35.00 per week (foremen regularly engaged in manual labor shall 

not be considered to be in such supervisory capacity), nor (b) to 

employees engaged in emergency maintenance or repair work necessary because of breakdowns or involving danger to life and property, providing that such emergency overtime work in excess of 48 

hours in any one week shall be paid for at the rate of time and 

one third. 
3 

SEc. 5. No employer shall work any accountinO', clerical, office, 

inside sales, or other employee not provided for otherwise in this 

Article III who receives less than $35.00 per week, more than an 

average of 40 hours per week during a six-month period, nor more 

than 48 hours per week in any one week. 

EO. 6. No employee shall be permitted to work a total number 

of hours in exce s of the prescribed number, whether employed by 

one or more employers. 

ARTICLE IV-MINIMUM wAGES 

SECTION 1. Except as provided in Sections 2 to 6 below, the mini• 

mum wages that shall be paid to factory workers in the Northern 

section by any employer shall be at the rate of 40 cents per hour or of 

$16.00 per week of 40 hours of labor ; except that for such light work 

as does not usually require the strength and skill of male labor, and 

for which male labor has not been used, the minimum rate paid to 

female employees may be at the rate of 35 cents per hour or at $14.00 

per week of 40 hours o£ labor. 

SEc. 2. In the Southern section the above-mentioned minimum' 

rates shall be 2¥2 cents per hour lower. 

SEc. 3. The above Sections 1 and 2 establish minimum rates of pay, 

regardless of whether the employee is paid a time rate or for piecework performance. . . SEc. 4. The minimum wage that shall be paid by employers to any 

accounting, clerical, office, sales employee in any office, department, or 

establishment, or other employee not provided for otherwise in this 

Article IV, shall be at the following rates in cities of the sizes listed 

below and their immediate trade areas : 

Over 500,000 population, not less than $15.00 per week. 

Between 250,000 and 500,000, not less than $14.50 per week. 

Under 250,000 population, not less than $14.00 per week. 

SEc. 5. No employees in the classes mentioned in Section 4 of this 

article shall have their compensation reduced on account of any reduction in their weekly hours of employment made because of the requirements of Section 5, Article III. 

SEc. 6. The minimum rate of pay paid to office or messenger boys 

and girls and learners (the latter for not over the six weeks' period 

specified in the definition of learners) may, in the case of those members of the Industry where the total of such classes never exceed 

5% o£ their total employees, be 20 % less than the rates specified in 

Sections 1 and 2 above for learners, and Section 4 above for office 

or me senger boys and girls. 

SEc. 7. No distinction in rates shall be made between male and 

female employees where the same class of work is performed, regardle o£ whether compensation is calculated on an hourly weekly, 

month! or piecework basis. 

SEc. 8. Unless such readjustment has already been made because 

of the operation of the President's Reemployment Agreement, the 

wage rates of all employees receivinO' more than the minimum rates 

prescribed above, but less than $35.00 per week, shall be equitably 

readjusted. 

1 933°----188-132----33---2 
4 

SEc. 9. There shall be no evasion of the Code byany employer by 

recla sification of the functions of an employee. An employee shall 

not be included in one of the classifications exempted from the provisions of this Code unless the identical functions were identically 

classified on June 16, 1933. 

ARTICLE V-CHILD LABOR 

No person under 16 years of age shall be employed in the Industry, 

and no person under 18 years of age engaged in unsanitary occu-

,Pations or when operating hazardous manufacturing machinery. 

ARTICLE VI-AnMINISTRA TION 

To further effectuate the policies of the Act, a Code Authority 

is hereby set up to cooperate with the Administrator in the administration of the Code. 

SECTION 1. Organization and constitution of the Code Authority. 

(a ) The Code Authority shall consist of six voting members 

selected as specified in Article VI, Section 1 (e), and such additional 

members, if any, not exceeding three, as shall be appointed by the 

President. Such additional members shall not be vested with voting 

rights. 

(b) For purposes of administering the Code and selecting members of the Code Authority, the Asbestos Industry is divided into 

the following divisions: 

Asbestos Paper and Allied Products Division. 

Asbestos Cement Products Division. 

Asbestos Magnesia Products Division. 

Asbestos Textile Products Division. 

Asbestos Brake-Lining and Related Friction Products Division. 

The products manufactured by members of ea.ch of said Divisions 

are set forth under the designated Divisions in Schedule I hereto 

attached. 

(c) Every member of the Industry shall be eligible to membership in the Code and there shall be no inequitable restrictions upon 

such membership. Any member of the Industry desiring to become 

a member of the Code may do so by signing and delivering to the 

Institute or to the Code Authority a letter substantially in the 

form set forth in Schedule II, annexed hereto. , (d) Every member of the Industry who manufactures one or more 

of the products listed in Schedule I under a designated Division 

shall be a member of such Division. · 

, (e) At least five voting members of the Code Authority shall 

be selected from members of the Code. One voting member shall 

be elected by a two-thirds vote of the members of each Division 

of the Code. A democratic (majority) method of election and term 

of office shall be determined by the members of each Division. The 

sixth voting member shall be elected by a majority vote of the five 

1 so elected. 

(f) The Code Authority shall adopt its own rules of procedure and 

may appoint such officers or agencies as it may deem necessary properly to administer the Code, subject to review by the Administrator. 
It shall delegate to a Sub-Code Authority of each member Division, 

consistinO' of three members elected by each Division, the administration of all articles except III, IV, V, and X of the Code, subject 

to review by the Administrator. All contacts with the Administrator relating to the administration of Article III, IV, V, and X 

of the Code shall be by the Code Authority. 

(g) The members of each Division shall adopt their own rules 

of procedure with respect to administering the Codei not inconsistent 

with the Act or with the Code, subject to review by the Administrator. Each Division may appoint agents, not members of the 

Industry, to investigate complaints of violation of the Code by 

members of the Division under rules which shall not be inconsistent 

with the provisions of the Act or of the Code. 

(h) All members of the Code shall bear their proportionate share 

of the expense of maintenance of the Code Authority and its activities. Such expenses shall be assessed upon an equitable basis (proportionate to dollar sales or vol~me of _productio:r;t as Divisions m_ay 

determine) by the Code Authonty, subJect to reVIew by the Administrator. Assessments shall be paid by members of the Code in the 

manner,and at such times as shall be directed by the Code Authority. 

SEc. 2. The Code Authority shall have the following duties and 

powers to the extent permitted by the Act and subject to review by 

the Administrator. 

(a) With a view to keeping the President and the members of 

the Code informed as to the observance or nonobservance of the 

Code and as to whether the members of the Industry are taking appropriate steps to effectuate the dec~a~ed policy of the f\.ct, the Code 

Authority shall report to the Admirustrator at such times and concerning such conditions in the Industry as he ~ay from t~me to time 

require. Each member of the Industry, subJect to review by the 

Administrator, shall file in such office as the Code Authority may 

designate and at such time, ~n such form. and for such _periods as 

required by the Code Authonty, duly certified reports with respect 

to wages, hours of labor, conditions of employment, number of employees, production, and other ma_tters pertinent to the proper supervision of the Industry as determmed by the Code Authority. Any 

additional special reports required by the Administrator will be 

supplied without expense to the Code Authority. In addition to 

information required to be submitted to the Code Authority, there 

shall be furnished to Government agencies such statistical information as the Administrator may deem necessary for the purposes 

recited in section 3 (a) of the Act. 

(b) All confidential information of any nature so requested shall 

be collected through agents not connected with the Industry, selected 

by the Code Authority, and such information shall be kept confidential by the said agents except when required by the Code Authority 

for the proper administration of the Code. Only such information 

shall be requested by the Code Authority which is appropriate to the 

proper supervision of the Industry or to the administration of the 

Code. 

(c) The Code Authority may designaw a~ents not members of 

the Industry to investigate complaints of violations of the Code. 

The members of the Industry shall facilitate such investigations by 
6 

opening their correspondence, books, and accounts relating to alleged 

violation for examination by such authorized agents and by furnish· 

ing relevant information. All such information shall be kept con· 

fidential by the agents except that in the event of any such viola· 

tion being substantiated, the Code Authority shall be informed 

and may present evidence thereof to the proper department of the 

Government. If, upon such investigation, any complaint of a viola· 

tion of the Code shall be substantiated in any material respect, the 

member of the Code guilty of such violation shall pay the cost of 

the investigation; otherwise the cost shall be borne by the complainant. The guilty member shall be subject to all penalties provided for 

in the Act and if a member of the Code, any other penalties provided 

for by said member's Division of the Code. 

(d) The Code Authority shall study conditions in the Industry 

and, subject to approval by four of its voting members and by a 

three-fourths vote of the Code members of each Division present at 

a meeting expressly called for that purpose, shall make such recom· 

mendations from time to time to the Administrator as it deems desirable to further the policies of the Act, which, upon the approval of 

the President or the Administrator or such other lawful officer as 

may be constituted, shall become a part of the Code and shall have 

full force and effect as provisions hereof. 

SEc. 3. Appeals. 

(a) Any interested par~ shall have the right of complaint to the 

Code Authority or a Sub-Code Authority, and a prompt hearing and 

decision thereon, under such rules and regulations as the Code Authority shall prescribe, in respect to any act of any member of the 

Industry or in respect to any agent or agency designated by the Code 

Authority or Sub-Code Authority to act in its behalf. -

(b) Any interested party shall have the right of appeal to the 

Administrator, under such rules and regulations as he shall prescribe, 

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

by the Code Authority or a Sub-Code Authority. 

(c) Any member of the Industry who promptly files his appeal 

with the Code Authority or Sub-Code Authority and cooperates toward prompt decision thereof and who makes his appeal on the 

grounds that said restrictions or rulings will handicap his legitimate 

methods of operation or distribution tending toward jeopardizing 

his existence, shall not be bound by any restrictions which arise 

from the Merchandising Plan or Rulings of the Sub-Code Authority 

provided for herein in this Article VI, Section 4 (b) but supplemental to and not specifically covered by this Code, until such 

appeal has been heard and finally disposed of. 

SEc. 4. Codes of Ethics and :Merchandising Plans. 

(a) The Code Authority may, with the approval of four of its 

voting members and by a three-fourths vote of the Code members of 

each Division present at ~ meeting expressly called for that purpo e, and subject to review by the Administrator, formulate a Code 

of Ethics for all members of the Industry which will amplify and 

define the provisions of Article VII hereof. 

(b) The members of each Division of the Industry may prepare · Simplification and Standardization Specifications and a Merchandising Plan for such Division, incorporating the merchandising policies best calculated to promote fair competition in such Division. 
7 

Subject to the revi w of the Admini trator, every uch :M r handising Plan or Simplifi ation and tan larclization Specifi ations, when 

approved by thre fourths of the Code m mbers of the Di vi ion and 

filed with the Sub-Code Authority, shall be binding upon all members of the Indu. try who are members of the Division to whi h such 

Merchandising Plan or Specifications apply. ChanO'eS may be made 

in any such Merchandising Plan or Sp2cifications in the ame manner that the originals were established. 

SEc. 5. Any notice, demand, or request reguired or permitted to 

be given to or to be made upon any member of the Industry shall 

be sufficiently given if mailed by registered mail, postage prepaid, 

addre sed to such member of the Industry, at his address on file 

with the Secretary of the Code Authority. 

ARTICLE VII-UNFAIR TRADE PRACTICES 

For the purposes of the Code the :following shall constitute unfair 

trade practices : 

SECTION 1. To invoice fictitiously, ship in excess of quantities invoiced, price at prices for a trade classification to which buyer is not 

properly entitled, permit unwarranted deductions, make fictitious or 

excessive allowances or guarantees. 

SEc. 2. To grant secret rebates in any form, give or sell other 

materials at lower than prevailing prices to influence a sale, give 

improper "cut backs" or rebate to any buyer for stock on hand 

at date of any price decline. 

SEc. 3. To subsidize buyers by special donations, give premiums, 

lavishly entertain a customer or prospectiv-e customer or their employees, split commissions, pay part or all of a customer's or prospective customer's expenses, buy of a customer or prospective customer 

other commodities at higher than prevailing open market prices, 

make improper advertising allowances, give gratuities or make loans 

or otherwise improperly influence business, consign stock or allow 

other than published terms, or fail to prescribe definite terms, or 

makP. improper price-maintenance guarantees. 

SEc. 4. (a) To sell or offer any product with intent to deceive. 

(b) To defame a competitor. 

(c) To purchase a stock of competitor's materials from a customer 

or ;prospective customer. 

(d) To misbrand material or to imitate the trade marks, trade 

names, slogans, or advertising matter of a competitor. 

(e) To improperly entice away a competitor's employees. 

SEc. 5. To sell for export until the buyer has agreed not to resell 

the goods within the United States. 

SEc. 6. Using or employing any unfair trade practice shall be a 

violation of the Code and any member of the Industry who shall 

directly or indirectly through any officer, employee, agent, or representative, knowingly or willfully use or employ any such unfair 

practices shall have violated the Code. 

ARTICLE VIII-PUBLICITY OF PrucEs, TERMs, AND CoNDITIONS F SALE 

The purpose of the following publicity requirements of the Code 

is to insure complete publicity of all prices, terms, and conditions 
8 

of sale to manufacturers and to the trade concerned, and thus to 

promote fair competition. The trade concerned shall be all the trade 

of the member of the Industry directly affected by such prices, terms, 

or conditions of sale in the territory to which the same apply. 

SECTION 1. Each member of the Industry shall have the right individually to establiBh new prices, terms, and conditions of sale from 

time to time not inconsistent with the provisions of the Code. 

SEc. 2. No member of the Industry shall sell, pay a rebate) or 

allow a deduction at any time to any person except upon pnces, 

terms, and conditions of sale then in effect and/or published in such 

manner as may hereinafter be required by the Code. 

SEc. 3. Upon the effective date of the Code every member of a 

Division of the Industry shall forthwith file in the office designated 

for such Division a schedule of his prices, terms, and conditions of 

sale then in effect for distribution to all members of the Division in 

the manner and to the extent determined by the Sub-Code Authority 

of such Division. The members of each Division may determine the 

extent to which such schedules shall be open to inspection by members 

of the trade. 

SEc. 4. In the event of any change being made by a member of the 

Industry in any price, term or condition of sale, he shall, if so 

determined by the members ol the Division of which he is a member, 

do either one or both of the following: 

(a) Immediately publish to ·the trade concerned every such change 

and coincidentally file in the office designated for his Division full 

and complete copies of every such change in price and terms and 

conditions of sale for immediate distribution to the members of the 

Division; or 

(b) File full and complete copies of every contemplated change 

in prices, terms, and conditions of sale in the office designated by his 

Division within such periods as may be designated for such Division 

but not exceeding 5 days in advance of the effective date of such 

chan~e. Copies thereof shall in such cases be immediately filed with 

the ~ub-Code Authority of the Division and then distributed to the 

trade concerned as required by the Division, in the manner provided 

in Article VIII, Section 3. 

""\Vhen a member of the Industry is a member of more than one 

Division the publicity requirements of any Division of which he shall 

be a member shall apply only to changes in prices, terms, and conditions of sale of products listed under such Division in Schedule I of 

the Code. 

Merchandising Plans adopted pursuant to Section 4 of Article 

VI, containing provisions with reference to publicity of prices, 

terms, or conditions of sale, shall be controlling with respect to the 

members of the Division for which any such Merchandising Plan 

may be established, even though such provisions supplement or vary 

the publicity requirements of this Article VIII. 

SEc. 5. After dates to be specified by each Sub-Code Authority 

for its Division, no member of the Division shall sell to any buyer 

for resale more than one small introductory order unless the buyer 

has agreed in writing (1) to make no improper use of the member's 

merchandising plans, prices, terms andjor conditions of sale or 

otherwise misrepresent the policies or products of the member; (2) 
9 

to sell from a list no higher than that from which the products 

were purchased; (3) to observe all of the provisions of this Code 

in ofar as they are applicable. 

ARTICLE IX-SELLING BELOW CosT 

SECTION 1. No member of the Industry shall initiate a price for 

the sale of any product to the trade at a net price after all discounts 

which shall be below the said member's own individual cost. Said 

cost shall be determined in accordance with any uniform cost accounting methods as may be approved by a three-fourths vote of the members of each Division and subject to r eview by the Administrator. 

Each such Division shall by the same method designate the cost 

accounting period to be used from time to time; provided, however 

that any member of the Industry may sell below his own individual 

cost to meet prices established on products of essentially similar 

grade and quality by another member of the Industry. 

SEc. 2. Complaints may be filed with a Subcode Authority against 

any member of its Division of the Industry to the effect that said 

member has made a sale at a price believed to be below said member's current total cost and not to meet existing competition in the 

Industry. Said Subcode Authority may in its discretion investigate 

such complaints, and if it finds that said prices were not made to 

meet existing competition in the industry, it shall designate a firm 

of certified public accountants to investigate whether or not the 

prices complained of were below said member's current total cost in 

conformity with sound accounting practice. The said accountants 

shall report their conclusions to the Subcode Authority without disclosing confidential details, and if the Subcode Authority finds after 

receiving such report, that such member actually sold below his current total cost and not to meet existing competition in the Industry, 

then the cost of the investigation shall be paid by said member if a 

member of the Code, otherwise by the complainant. The guilty 

member shall be subject to all penalties provided for in the Act, and 

if a member of the Code, any other penalties provided for by said 

member's Division of the Code. 

ARTICLE X-LABOR PROVISIONS 

SECTION 1. Employees shall have the right to organize and bargain 

collectively through representatives of their own choosing, and shall 

be free from interference, restraint, or coercion of employers of labor, 

or their agents, in the designation of such representatives or in selforganization or in other concerted activities for the purpose of 

collective bargaining or other mutual aid or protection. 

SEc. 2. 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. 

SEc. 3. Employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions of employment approved 

or prescribed by the President. 

SEc. 4. Within each state this Code shall not supersede any laws 

of such state imposing more stringent requirements on employer 
10 

regulating the age of employees, wages, hours of work, or help, fire, 

or ~eneral working conditions than under this Code. 

SEc. 5. Each employer will make available without charge to his 

employees copies of the Code under which employer is operating. 

ARTICLE XI-GENERAL 

SECTION 1. For the purposes of the Code, all transactions between 

manufacturers who are members of the Industry and their respective 

subsidiaries and affiliates, which shall be defined in the respective 

divisional1 merchandising plans as described in Section 4 (b) of 

Article VI, shall be considered as interdepartmental tran. itctions of 

the manufacturer. No such manufacturer shall sell to such subsidiary or affiliate unless such subsidiary or affiliate shall agTee to and 

does conform to the pertinent provisions of this Code. 

SEc. 2. Nothing contained in the Code shall be construed as prohibiting any member of the Industry from exercising its andjor 

their lawful patent rights or as requiring any member of the Industry 

to do any act in conflict with the terms of any patent licensing 

agreement. 

SEc. 3. Section 4 of Article VI and Articles VII, VIII, and IX of 

the Code shall not apply to products exported from the United 

States. 

SEc. 4. Nothing contained in the Code shall be d€emed to constitute any of the members thereof partners for any purpose. No 

member of the Code shall be liable in any manner by reason of his 

participation therein to anyone for any act of any member or 

agent of the Code Authority. No member of the Code except as 

otherwise provided herein and no member of the Industry or of the 

Code Authority and no agent of the Industry shall be liable to 

anyone or in any manner other than as provided in the Act, or in 

the Code, for any act or failure to act under the Code. 

SEc. 5. Where the costs of executing contracts entered into in the 

Asbestos Industry prior to the effective date are increased by the 

application of the provisions of the Code to the Industry, it is 

equitable and promotive of the purposes of the Act that appropriate 

adjustments of such contracts to reflect such increased costs be 

arrived at by arbitral proceedings or otherwise. The Code Authority 

is constituted an agency to assist in effecting such arbitral proceedings and adjustments. 

SEc. 6. As required by Section 10 (b), Title I of the Act, the 

following provision is contained in the Code: The President may 

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

rule, or regulation issued under this Title. 

SEc. 7. By presenting the Code the members of the Industry 

assenting thereto do not thereby consent to any modification thereof, 

and they reserve the right to object individually or jointly to any 

such modification. 

ARTicLE XII-AMENDMENTS TO THE ConE 

It is contemplated that from time to time supplementary provisions to the Code or additional codes may be submitted for the 

approval of the President to prevent unfair competition in prices or 
11 

other unfair or destructive practices and to effectuate the other 

purposes and policies of Title I of the Act. Such provisions of the 

Code as are not required tq be included therein by the Act, may, with 

the approval of the President, be modified or eliminated if it appears 

that the public needs are not being served thereby, and as changes 

in circumstances or experience may indicate. The provisions of 

the Code shall remain in effect unless and until so modified or 

eliminated, or until the expiration of the Act; namely, June 16, 1935, 

unless sooner terminated in acrordance with law for such case made 

and provided. 
SCHEDULE I 

DIVISIONS OF THE ASBESTOS INDUSTRY .AND PRODUCTS INCLUDED 

1. Asbestos Paper and Allied Products: 

All Asbestos Papers 

All Types of Asbestos Millboard 

Asbestos and Wool Felt Pipe Covering 

Air Cell Pipe Covering 

Asbestos Laminated Pipe Covering 

Pipe Covering Accessories 

Asbestos Insulating Cement 

2. Asbestos Cement Products: 

Asbestos Shingles 

Asbestos Corrugated Lumber 

Asbestos Flat Lumber 

Asbestos Wall board Plain 

Asbestos Board Pre-Decorated 

Impregnated Asbestos Lumber 

Asbestos Encased Insulating Board 

Miscellaneous Molded Products 

3. Asbestos Magnesia PrOflucts : 

85% Magnesia Pipe Covering, Blocks and Cements 

High temperature Insulation, Blocks and Cement 

Insulating Bricks 

Carbonate of Magnesia 

4. Asbestos Textile Products: 

All Types of Asbestos Roving 

All Types of Asbestos Yarn 

All Types of Asbestos Cloth 

All Types of Asbestos Listing 

All Types of Asbestos Tubing 

All Types of Asbestos Cord 

Carded Asbestos Fibre Made from Crude Asbestos 

0. Brake Lining and Related Friction Products: 

Brake Lining and/or Clutch Facings, excepting only friction elements made 

exclusively of metal or wood. 

(12) 

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