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3 1262 08486 7 489 Registry No. 1042-1-02 

NATIONAL RECOVERY ADMIN! TRATION 

CODE OF FAIR COMPETITION 

FOR THE 

FLOOR AND WALL CLAY TILE 

MANUFACTURING INDUSTRY 

AS APPROVED ON NOVEMBER 4, 1933 

BY 

PRESIDENT ROOSEVELT 

1. Executive Order 

2. Letter of Transmittal 

8. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON 1 1933 

For sale by the Superin tenden t of D<X:uments, Was hi ngton, D.O. • • • • • • • • P rice 5 centa 

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

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

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

Cleveland, Ohio : Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, Mich.: 2213 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

J acksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky. : 408 Federal Building. 

l\Iemphis, Tenn. : 229 Federul 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. 

(U) 
EXECUTIVE ORDER 

ConE OF FAIR Col\!PETITION FOR THE FLOoR AND WALL Cu Y TILE 

MANUFACTURING 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 June 16, 1933, for my approval of a Code 

of Fair CompetitiOn for the Floor and Wall Clay Tile ~Ianufacturing 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 16, 1933, and 

otherwise, do approve the report and recommendations and adopt 

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

of fair competition be and it is hereby approved. 

THE WHITE HousE, 

November 4, 1933. 

Approval recommended: 

J-I UGH S. JOHNSON, 

Administrator. 

19510•----188-1~1----83 

FRANI(LIN D. ROOSEVELT. 

(ill) 
OcTonER 30, 1933. 

The PRESIDENT, 

The White House. 

Sm: This is a report of the hearing on the Code o£ Fair Competition for the Floor and Wall Clay Tile Manufacturing Industry 

in the United States, conducted in Washington on September 27, 

1933, in accordance with the provisions of the National Industrial 

Recovery Act. 

PROVISIONS OF THIS CODE AS TO WAGES AND HOURS 

This code provides for a maximum of forty hours o£ work per 

week, averaged over a one-month period for office and branch warehouse employees and over a six-month period for other employees, 

and a maximum of forty-eight hours in any one week, except as 

follows: 

(a) Executives and supervisory employees receiving $30.00 or 

more per week, outside salesmen and employees engaged in emergency 

maintenance or emergency repair work; 

(b) Engineers, kiln burners, gas producer men, and boiler firemen 

who shall not be permitted to work in excess of forty-two hours per 

week averaged over a six-month period nor in excess of forty-eight 

hours in any one week; 

(c) Watchmen, who shall not be permitted to work in excess of 

ninety-six hours in any two-week period. 

No employee shall be permitted to work more than twelve days in 

any fourteen-day period. 

This code provides for minimum rates of pay of forty cents per 

hour for male and thirt;-two and one half cents per hour :for female 

employees, regardless o whether the compensation is on a time rate, 

piece rate~ or other basis, provided, however, th2...t female employees 

performing substantially the same work as male employees shall 

receive the same rates o£ pay; aRd provided further, that where 

women displace men on the same occupation they shall receive rates 

of pay not lower than those of the men they displace. 

Apprentices and employees physically handicapped may be paid 

not less than 80% of the above minimum wages provided that not 

more than 5% of the total number of employees of any member of the 

industry be included in either g-roup. 

Provision is made for the adJustment of wages above the minimmn 

so as to maintain differentials equal to the average differentials for 

the industry existing on September 1, 1933, unless this should raise 

the rate for an occupation higher than the average for the industry 

existing on July 15, 1929, in which case the latter rate would apply. 

No person under sixteen years of age shall be employed and none 

under eighteen years employed in any hazardous occupation. 

ECONOMIC EFFECTS OF THE CODE 

. According to a survey made by the Tile Manufacturers' Association, there has been a decrease in sales volume in this industry of 

(IV) 
v 

approximately 70% since 1928, and an even greater decrease in gross 

receipts due to the lower prices now prevailing. The number of employees decreased approximately 55% during this period. · Due to the present low volume of business it is doubtful whether 

the adoption of this code would result in a large immediate increase 

in employment. However, it should tend to smooth out the sharp 

seasonal peaks and should result in a rapid spread of employment 

when volume begins to increase. 

The sponsors of the code have estimated an immediate increase 

in employment of 15%, or 350 persons. They have estimated an increase in total wages paid by the industry of 33%, or approximately 

$500,000 per year. 

The minimum wages proposed in the code are approximately 70% 

higher than the average wages now being paid in the lowest-paid 

occupation and from 10% to 15% higher th~n the average wages paid 

in these same occupations in 1928. The lower minimum wage for 

women is in accordance with past practice in this industry. Approximately 33% of the employees are women. 

At the present time this industry is operating at only about 17% 

capacity. The provision in the code requiring the reporting of 

intention to increase present kiln capacity or to install new kiln 

capacity, will tend to discourage further expansion until such time 

as there is a larger volume of business. 

It is hoped that the provisions of this code will tend to stop the 

unreasonable price-cutting, misrepresentation, and other demoralizing practices which apparently exist in this industry at the present 

time. 

FINDINGS 

The Administrator finds that-

(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 7 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 

Floor and Wall Clay Tile Manufacturing Industry; and that-

( c) The Code as recommended 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 polic~ of Title I of the National Industrial Recovery Act. 

It 1s recommended, therefore, that this Code be approved. 

Respectfully, 

HuGHS. JoHNsoN, 

Administrator. 
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CODE OF FAIR COMPETITION FOR THE FLOOR AND 

WALL CLAY TILE MANUFACTURING INDUSTRY 

ARTICLE 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 Floor and Wall Clay Tile Manu£acturin.?' 

Industry, and upon approval by the President shall be the standard 

o£ Fair Competition £or such Industry and shall be binding upon 

every member thereof. 

ARTICLE II-DEFINITIONS 

1. The term "Industry" as used herein includes the manufacture 

and sale by the I?anu£acturer ?f .floor and wall clay tile an.d related 

products, Including, but not hnnted to, bathroom accessones, decorated strips, and similar articles used as part o£ the tiled area. 

2. The term " tile " as used herein includes all kinds o£ glazed 

or unglazed tile used for floor and wall surfacing which are mado 

exclusively £rom clay and/or other ceramic materials and are burned 

in the course o£ manufacture and which in the case o£ glazed tile are 

com posed o£ ceramic body and ceramic glaze. 

3. The term "employee", as used herein, includes anyone engaged 

in the Industry in any capacity receiving compensation £or his services, irrespective o£ the nature or method o£ payment o£ such 

compensation. 

4. The term "employer", as used herein, includes any one by 

whom any such employee is compensated or employed. 

5. The term "Member of the Industry" includes anyone engaged 

in the Industry as above defined either as an employer or on his own 

behalf. 

6. The term "Member of the Code", as used herein, includes any 

member o£ the Industry who shall have become a member o£ the 

Code as hereinafter provided in Article VII. 

7. The term "Association", as used herein, shall mean the Tile 

:rv1anu£acturers' Association. 

8. The term " Board o£ Directors ", as used herein, shall mean the 

Board o£ Directors o£ the Tile Manufacturers' Association. 

9. The term "majorit.Y o£ the members o£ the industry", as used 

herein shall mean a maJority in number o£ members o£ the Industry 

a sembled, either in person or voting by proxy, at a meeting which 

shall have been called by one week's prior notice by telegraph or mail 

a" pro-vided in Section A o£ Article XIII o£ this Cod providing 

uch majority in number also represents a majority o£ the sales 

olume in dollars of the members o£ the Indu try £or the previous 

three years. 

10. The term "majority of the member o£ the code" as used 

herein shall mean a majority in number o£ members o£ the cvde as-
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sembled, either in person or voting by proxy, at a meeting which 

shall have been called by one week, prior notice by telegraph or mail 

as provided in Section A of Article 13 of this code, provided such 

majority in number also represents a majority of the sales volume 

in dollars of the members of the code for the previous three years. 

11. The terms "President", "Act", and "Administrator" as used 

herein shall mean respectively the President of the United States 

the N a tiona! Industrial Recovery Act, and the Administrator of said 

Act. 

ARTICLE III-HoURs 

1. On and after the effective date and except as hereinafter otherwise provided, no employee shall be permitted to work in excess of 

48 hours in any one week nor in excess of 40 hours per week averaged 

over a six ( 6) months' period. 

2. The foregoing provisions shall not apply to engineers, kiln 

burners, gas producer men, and boiler firemen who shall not be permitted to work in excess of 48 hours in any one week nor in excess 

of 42 hours per week averaged over a six (6) months' period; nor 

shall they apply to watchmen, who shall not be permitted to work 

in excess of 96 hours in any period of two weeks. 

3. The maximum hours fixed in the foregoing sections of this 

article shall not apply to office or branch warehouse employees who 

shall not be permitted to work in excess of 48 hours in any one wook 

nor in excess of 40 hours per week averaged over any one ( 1) :nonth 

period. 

4. The maximum hours fixed in the foregoing sections of this 

article, shall not apply to executives and supervisory employees receiving $30.00 or more per week, nor to outside salesmen, nor to employees engaged in emergency maintenance or emergency repair 

work. 

5. No employees shall be J?ermitted to work more than twelve 

(12) days in any fourteen (14) day period. 

6. No employer shall knowingly engage any employee for any 

time which when totalled with that already performed for any other 

employer or employers exceeds the maximum specified in the foregoing sections. 

7. For thB purposes of this Article the remainder of the year 

1933 from and after the effective date of this Code to December 

31, 1933, inclusive, shall constitute the first six months' period. The 

subsequent six months shall begin on January 1st and July 1st, 

respectively, and shall terminate on June 30th and December 31st, 

respectively. 

ARTIOLlll IV-WAGES 

1. No male employee shall be paid at less than the rate of 40¢ per 

hour and no female employee shall be paid at le s than the rate of 

32¥2¢ per hour, provided, however, that female employees performing substantially the same work as male employees during the same 

hours of the day shall receive the same rates of pay as such male 

employees, and provided further that where women displace men on 

the same occupation, they shall receive rates of pay not lower than 

those of the men they displace. 
3 

2. The foregoing prov1 1ons e tabli h a minimum rate of pay 

regardle s of whether an mplo:ee i comp n ated on a time rate, 

piece rate, or an other ba is. 

3. The hourly rate for occupations other than tho e receiving 

the minimum rate herein prescribed, x epting tho e rec iving 35.00 

or more per week, shall maintain th difference in hourly earnings 

between such oc upations which exi ted on September 1, 1933, provided howe\er, that if the foregoing prov] ion raises the hourly 

rate higher than the hourly rate for the same occupations which 

existed on July 15, 1929, the hourly rate in effect on that date shall 

apply but in no event shall this rate be less than specified in Section 

1 of this Article. The a' erage hourly rates of the Industry rather 

than the hourly rate of any individual member of the Industry 

shall be used to determine the July 15, 1929, rate and September 1, 

1933, rate. Within thirty days after the approval of this Code, the 

Code Authority as hereinafter establi hed shall determine and promulgate to members of the Industry the average hourly rates of pay 

existing on July 15, 1929 and September 1, 1933, for occupations 

other than those receiving the minimum wage. 

4. The minimum rates established in the foregoing provisions shall 

not apply to apprentices who shall be paid not less than 80% of 

the minimum rates of pay hereinabove established; provided, however, that the number of such apprentices shall not exceed 5% of 

the total number of employees of any member of the Industry at 

any one time, and provided further, that the period of apprenticeship 

of any employee shall not exceed four weeks. 

5. The minimum rates of pay provided in the foregoing provision 

shall not apply to employees who are physically handicapped; provided, however, that such employees shall not be paid at less than 

80% of the minimum rates hereinabove established, and provided 

further, that the total number of such excepted employees shall not 

exceed five percent of the total number of employees of any member 

of the Industry at any one time. 

ARTICLE V-GENERAL LABOR PROVISIONS 

1. No person under 16 years of age shall be employed in the Industry, nor anyone under 18 years of age at operations or occupations hazardous in nature or detrimental to health. The Code Authority shall ubmit to the Administrator within 30 days after the 

a_pproval of this Code by the President a list of such occupations. 

In any State an employer shall be deemed to have complied with this 

provi ion if he shall have on file a certificate or permit duly issued 

by the authority in such State empowered to issue employment or 

ao-~ certificates or permits, showing that the employee is of the reqmr d age. 

2. Employees hall ha\e the right to oro-anize and bargain collectively through repres ntatives of their own choosing and shall be 

free from the interfercnc , re traint, or coercion of employers of 

labor, or their agen in the le i!Tllation of uch representatives or in 

self-oo-anization or in other cone rted activiti for the purpose of 

eollectiYe bargaining or other mutual aid or protection. 

3. No employ e and no one se king employment shall be required 

as a condition of empl yment to join any company union or to re19310----188-51----33--2 
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frain from joining, organizing, or assisting a labor organization of 

his own choosing, and 

4. Employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions of employment, approved or prescribed by the President. 

5. Within each State this Code shall not supersede any laws of 

such State imposing more stringent requirements on employers regulating the age of employees, wages, hours of work, or health, fire or 

general working conditions than under this Code·. 6. Employers shall not reclassify employees or duties of occupations performed by employees so as to defeat the purposes o:f the Act. 

7. Each employer shall post copies of this Code and the avera~e 

Industry wage rates as promulgated by the Code Authority 1n 

accordance with the provisions of Article 4 hereof conspicuously at 

the place of employment. 

ARTICLE VI 

To effectuate further the policies of the Act1 the Code Authority 

is hereby constituted to cooperate with the Administrator in the 

administration of this Code. 

A. Organization and Constitution of Oode .Authority.-1. The 

Code Authority shall consist. of the Board of Directors and such 

additional number of members of the Industry not members o:f the 

association as may be approved from time to time by the Administrator and as may be elected by fair methods of election to be approved by the Administrator. The Administrator, in his discretion, 

may appoint not more than three additional members without vote 

to represent the Administrator or such other groups or interests as 

may be agreed upon, without expense to the Industry. Such additional members shall serve for terms of from six months to one year, 

or such other terms as the President may designate, which terms shall 

be arranged in such a manner that they do not expire at the same 

time. Such members, together with the Administrator, shall be given 

notice of and may attend all meetings of the Code Authority. 

2. The Association is hereby designated as the agency to conduct 

such election and as the agency to promote the purposes of this 

Code. 

3. Each trade or industrial association directly or indirectly participating in the selection or activities of the Code Authority shall: 

(i) Impose no inequitable restrictions on membership, and 

(ii) 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. 

4. In order that the Code Authority shall at all times be truly 

representative of the Industry and in other respects comply with 

the provisions of the Act, the Administrator may provide such hearings as he may deem proper; and thereafter if he shall find that 

the Code Authority is not truly representative or does not in other 

respects. comply _with. the. provisions of the Act, may require an 

appropnate mod1ficatwn 1n the method of selection of the Code 

Authority. 
5 

B. Powers and Duties of the Code Autho?'ity.-The Code Author. 

ity shall have the followino- dutie and powers to the xtent permitted by the Act and subject to the right of the Admini trator on 

review, to disapprove or modify any action taken by the Code 

Authority pursuant to this Code: 

1. The Code Authority shall be the general planning, coordinatin~ 

and administering agency of this Code. It may make rul s and 

regulations for the administration of this Code. 

2. The Code Authority may designate the As ociation or uch 

other committees or agents and may delegate to them uch of its 

powers and duties as it may deem necessary for the administration 

of this Code, provided, however, that it shall reserve final responsibility with respect to any such delegated powers or duties, and provided further that any statistical information of a confidential character submitted to the Code Authority pursuant to the provisions 

of this Code, shall be submitted to such impartial agency, not connected with or obligated to any member of the Industry, as the Code 

Authority may designate. The Code Authority may designate appropriate governing agencies for districts or divisions of the Industry 

for the administration of this Code. In such districts or divisions 

the Code Authority may delegate to such agencies such of its powers 

and authority as may be necessary for the administration of this 

Code within such districts or divisions, including the right to submit 

to the Administrator recommendations for amendments to this Code, 

applicable only to such districts or divisions within the scope of the 

powers granted under this Code. 

3. The Code Authority shall, upon complaint of interested parties, 

upon request of the Administrator, or upon its own initiative, make 

such inquiry and investigation as to the operation and observance 

of this Code as may be necessary, and shall report the results thereof 

to the Administrator. Any complaint concerning an alleged Yiolation of the Code shall be submitted to the Code Authority in writing 

and by registered mail. The complaint shall contain a complete 

statement of the facts and shall refer specifically to that part of the 

Code which is alleged to have been violated. If it shall appear to 

the Code Authority after investigation that there has been a violation of the Code, a statement of the charges shall be sent by registered mail to the member of the Industry who is alleged to have 

committed the violation. The statement of charges shall fix the time 

and place for a hearing, at which the member of the Industry 

complained of shall be given an opportunity of presenting his 

defense. The Code Authority shall make recommendations to the 

Administrator with respect to such violations. 

4. In order that the President may be informed of the extent o:f 

the ob ervance of the provisions of this Code and of the extent to 

which the declared policy of the National Industrial Recoyery Act 

is being effectuated in the Industry, the Code Authority shall make 

such reports as the A lministrator may require, periodically or as 

often as he may direct; each member of the Industry hall make 

such sworn or unsworn reports to the Code Authority peri. )dically, 

or as it may direct, on wages, hours of labor conditions of employment, number of employees, production, shipments, stocks, prices, 

and other matters pertinent to the proYis.ions of this Code as the 
6 

Code Authority may require for the administration of this Code. 

In addition to the information required to be submitted to the Code 

Authority, members of the Industry shall furnish to Government 

agencies such statistical information as the Administrator may deem 

necessary for the purposes recited in Section 3a of the Act. 

5. Statistical information required by the Code Authority in 

accordance with the provisions of this Code shall be furnished to 

the Code Authority through an impartial agency, as hereinbefore 

provided. Such information shall be deemed confidential and shall 

not be divulged to any member of the Industry except in summary, 

provided, however, that where summary information in effect divulges the identity of individual members of the Industry it shall not 

be revealed to any member of the Industry but shall be made available 

to the Administrator upon request and may be used to facilitate the 

administration of thi" Code. 

6. In order to insure proper protection for the Industry and for 

the employees thereof, the Code Authority shall cause to be made 

such investigations as may be necessary to determine the effect of 

imports upon the Industry and may make such recommendations 

with respect thereto to the President for such action by him pursuant 

to Section 3-e of Title I of the Act as he may deem necessary. 

7. The present kiln capacity of the Industry shall be registered 

by members of the Industry with the Code Authority. The intention to install additional kiln capacity, excepting, however, modernization or replacement of existing capacity, either by members 

of the Industry or ~y those intending to en$age in the Industry, shall 

be reported to the Code Authority. The c:ode Authority shall make 

such recommendations with respect thereto to the Administrator as 

it may deem desirable to effectuate the policy of the Act. 

8. Any interested party shall have the right to complain to the 

Code Authority under such rules and regulations as it may prescribe 

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

of action pursued by the Code Authority, and any interested party 

shall have the right to appeal to the Administrator under such rules 

and regulations as he may prescribe in respect to any decision, rule, 

regulation, or course of action of the Code Authonty pursuant to 

any provision of this Code. 

9. Members of the industry shall be entitled to participate in and 

share the benefits of the activities of the Code Authority and to participate in the selection of the members thereof by assenting to and 

complying with the requirements of this Code and by either becoming 

a member of the Association or by sustaining their reasonable share 

of the expenses of the administration of this Code. The reasonable 

share of the expenses of administration shall be determined by the 

Code Authority, subject to review by the Administrator and shall be 

based upon the amount in dollars of net sales an.d/or such other factors as may be deemed equitable. 

ARTICLE VII 

Any member of the Industry shall be eligible for membershi-p in 

the Code. Any member of the Industry desiring to become a member 

of the Code may do so by signing and delivering to the Code Au· 
7 

thority a letter substantially in th form et forth 1n Sch dule A 

annexed hereto. 

ARTICLE VIII-TRADE PR CTI ES 

1. No member of the Industry shall make, allow, or s ll pro lucts 

of the Industry at a price or di count conditioned on the basis of combined sales or shipments of glazed tile and unglaz cl tile. 

2. No member of the Industry shall make any price di crimination between purcha ers of the same class ; provided, however, that 

nothing herein shall prohibit a difference in price that makes allowance nly for difference of grade, kind, or of transportation charg s. 

3. No member of the Industry shall give or permit secret rebates, 

allowances, refunds, credits, subsidies, or unearned di counts, whether 

in the form of money, material, premiums, advertising, or otherwise, 

or extend to certain purchasers special service or privileges not 

extended to all purchasers under like terms and conditions. 

4. No member of the Industry shall induce or attempt to induce 

by any means any party to a contract with a member of the Industry 

to violate such contract. 

5. No member of the Industry shall make or promise to make, 

either directly or indirectly, to any purchaser or prospective purchaser of any product, or to any officer, employee, agent, or representative of any such purchaser or prospective purchaser, any bribe, 

gratuity, gift, or other payment or remuneration. 

6. No member of the Industry shall defame any competitor by 

falsely imputing to hin1 dishonorable conduct, inability to perform 

contracts1 questionable credit standing, or by other false representations or by the false disparagement of the grade or quality of his 

goods. 

7. No member of the Industry shall sell the products of the Industry on consigrunent. 

8. No member of the Industry shall imitate trade marks, trade 

names or designs of a competitor in such a manner as to mislead 

or deceive customers or prospective customers. 

9. No member of the Industry shall publish or circularize threats 

or suits for infringement of patents or trade marks or of any other 

legal proceedings not in good faith, with the tendency or effect of 

harassing competitors or Intimidating their customers. 

10. No member of the Industry shall withhold from or insert statements on orders or invoice , which makes such record a false or incomplete record, wholly or in part of the transaction or condition 

represented on the face thereof. 

11. No member of the Industry shall guarantee customers or prospective cu tomers against price declines or price advances. 

12. No member of the Indu try shall permit any misrepresentation 

in the sale, offering for sale, bilhng, invoicing, marking, branding or 

labelling of any product or of containers thereo.f nor permit the 

issuance of any grade certificate with the intent or with the effect of 

deceiving customer , architect , competitors, or the public as to quantity, kind, or grad of tile products. 

13. No member of the Indus ry shall make or cause to be made 

lump sum bids or quotations xc pt for specialties of pla tic faience, 
8 

cut ceramic, or other specialties of tile for which prices have not been 

filed with the Code Authority. 

14. No member of the Industry shall deliver two or more grades 

of tile as established pursuant to this Code in the same container. 

15. No member of the Industry shall grant open credit in excess 

of thirty (30) days net after date of shipment, nor in excess of two 

(2) percent cash discount for :payment of invoice within fifteen (15) 

days after date thereof, provrded however, that fifteen (15) additional days open credit may be granted upon shipments to points 

beyond the Rocky Mountains, and provided further that no cash 

discount shall be deducted from prepaid transportation charges, and 

provided further that payment of all invoices dated between and 

including the first and the fifteenth of the month may be accepted 

net on the fifth of the following month, and invoices dated between 

and including the sixteenth and thirty-first of the month, may be 

accepted net on the twentieth of the following month. 

16. No member of the Industry shall accept orders for specific 

jobs until the contract for such specific job has been awarded. 

Orders for specific jobs shall specify the name and location of the 

specific job on which material is to be used, and the quantity required 

within a variation of ten percent (10% ). 

17. No member of the Industry shall accept stock orders for shipments after thirty (30) days from the date of the acceptance of 

such orders except on condition that shipments made after such 

30-day period shall be at the price prevailing on such date. 

18. No member of the Industry shall make quantity surveys or 

perform other estimating services without making reasonable specific charge therefor, provided however, that nothing herein contained shall prevent any member of the industry from making 

setting plans or details of quantities for a job requiring special or 

unusual treatment. 

ARTICLE IX-PUBLISHED PRICES 

A. Each member of the Industry shall use an adequate costaccounting system which shall be at least as complete and detailed 

as the cost-accounting system recommended by the Code Authority 

and approved by the Administrator as hereinafter provided. The 

Code Authority shall recommend for use in the Industry a uniform 

and adequate cost-accounting system which shall be adaptable to 

the cost-accounting procedure and to the business of the Industry. 

Such plan shall specify the factors which shall be included in determining the costs of each member of the Industry. Upon approval 

by the Administrator of such a system of cost accounting for the 

Industry, complete advice concernrng it shall be distributed by the 

Code Authority to all members of the Industry. Thereafter each 

member of the Industry shall file with the Code Authority his costs 

for each product of the Industry offered for sale by him. Thereafter 

no member of the Industry shall initiate a selling price below his 

own cost or sell the products of the industry at such price or upon 

~uch terms or conditions of sale as will result in the purchaser's paymg for such product less than the cost of that member of the Industry 

who has filed with the Code Authority the lowest cost; provided, 
9 

however, that the Code Authority may approve, .-nhjert to review 

by the Admini trator the ale of surplu · tocl s below n h o t 

where necessary to relieve financial em raenci . A lletail d r rd 

of such surplus stocks shall be filed with and h ck d by n h impartial agency as the Code Authority may de ig:1ate at th tim o£ 

application for such approval. 

B. Each member of the Industry shall r ublish and fil with the 

Code Authority within ten days after the effective dat of the ole 

a price list individually prepared by him of all product offered f r 

sale or sold by him and all terms and conditions of sale relating 

thereto. Such price list hall state for each grade and kin l of each 

product sold or offered for sale one price with appropriate eli ·cotmts 

therefrom, if any are allowed, for sales to classified type of buyers; 

provided, however that such discounts shall not exceed fifteen percent. Such price list and terms and conditions of sale so filed with 

the Code Authority shall be open to inspection at all reasonable 

times by any interested party. Revised price lists or revised t rms 

and conditions of sale may be filed from time to time thereafter 

with the Code Authority by any member of the Industry; provided, 

however, that such revisions shall be filed with the Code Authority 

at least ten days in advance of the effective date thereof· and provided further, that any other member of the Industry may file revisions of his price list or terms and conditions of sale to meet the 

revisions first filed which may become effective on the date when the 

revised price list or revised terms and conditions of sale first filed 

shall become effective. 

C. No member of the Industry shall sell or offer for sale any 

product of the Industry at prices lower than the prices noted in its 

price list, or on more favorable terms and conditions of sale, than the 

terms and conditions of sale previously filed by such member with 

the Code Authority in accordance with the provisions of Section B 

of this Article and in effect at the time of such sale. 

D. A member of the Industry may file with the Code Authority a 

price to apply between members of the Industry or other manufacturers us1ng tile as a part of other manufactured articles. 

ARTICLE X-CLASSIFICATION AND STANDARDIZATION OF TILE 

A. All tiles sold or shipped by any member of the Industry shall 

be branded either Standards or Seconds in accordance with the 

minimum grade specifications of Simplified Practice Recommendation R-61-30 as issued by the United States Department of Commerce or as may hereafter be established as standards for the Industry and approved by the Admini trator. Such brands hall be 

indicated plainly and conspicuou ly on each container in such manner as shall be approved by the Code Authority. 

B. The Code Authority may recommend from time to time a 

classification of the various types of tiles manufactured, and upon 

the approval of the majority of the members of the Cole and of 

the Administrator, after such hearing as he may 1 re cribe, such 

classification shall be established a the practice of the Industry 

and no member of the Indu try hall ell or offer for sale products 

for which such classifications have been e tablished except in accord-
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ance with such classifications. The provisiOns of this Section B 

shall not apply to unglazed quarry tile. 

C. No member of the Industry shall sell second-grade tile in an 

amount in excess of thirty-five percent of the total square footage 

of glazed tile sold by him, nor in excess of fifteen percent of the 

total square footage of unglazed tile sold by him, or such other 

reasonable fercentage as may hereafter be decided upon by a 

majority o the Industry, and approved by the Administrator, 

from time to time; provided, however, that the Administrator on 

petition and after such hearing as he may 1?rescribe may modify 

the percentages herein established; and provided further that any 

member of the Code may participate in the provisions of Section D 

hereinafter set forth. The provisions of this Section C shall not 

apply to unglazed quarry tile. 

D. (1) Any member of the Code may exceed the l?ercentages 

specified pursuant to Section C of this Article on conditwn that he 

shall pay to the Treasurer of the Code Authority, as trustee of the 

Tile Industry Fund, as liquidated damages 20 per cent of the 

total sales value of the second-grade tiles sold by him in excess of the 

percentages established pursuant to the aforesaid Section C of this 

Article. 

(2) The liquidated damages referred to in the foregoing subsection shall be based upon the average percentage of seconds sold by 

any member of the Code in excess of the percentages established 

pursuant to Section C of this Article sold for the current calendar 

year or part thereof after the effective date of this Code. Each 

member of the Code shall send to the agency designated by the 

Code Authority a monthly statement stating thereon his square footage over or under the allowed percentage of second-grade tiles for 

the current month, and the Code Authority or such agency as it 

may designate shall send to each member of the Code a monthly 

statement stating thereon his square footage over or under the allowed 

percentage of second-grade tile cumulative to date for the current 

year and the liquidated damages, if any, due thereon. Each member 

of the Code shall within 30 days after receipt of such statement 

pay to the Treasurer of the Code Authortiy as trustee of the Tile 

Industry Fund any liquidated damages due in accordance with such 

statement or the provisions of this Code. 

(3) No member of the Code shall be required to pay liquidated 

damages due for any current month if sufficient credit has accrued 

to his account for sales under the allowed percentage during any 

previous months. 

( 4) Any member of the Code who in earlier months of any current 

year shall have paid liquidated damages which subsequently are offset by a credit due him for the percentage of second-grade tiles subsequently sold below the percentage established pursuant to Section C of this Article, shall ha Ye refunded to him on June 30 and 

December 31 of each year, or as soon thereafter as possible, such 

excess liquidated damages as he shall have paid. 

( 5) All sums due as liquidated damages in accordance with the 

provisions of this Section D of this Article shall be paid into a separate fund to be known as the Tile Industry Fund. The Treasurer 

of the Code Authority as an individual shall be the trustee of the 
11 

Tile Indu try Fund and as such shall place payments for liquidated 

damages recei ed to the credit of such fund and make disburs&-

ment ther from in accordance with the provisions of this Article, 

This Fund shall be maintained as a separate fund from any general 

fund which the Code Authority may establish or maintain. Dis· 

bur ement from aid fund may be made from time to time in such 

manner and for su h purposes as the majority of the members of the 

Code hall determine i provided, however, that at all times a sufficient 

fun shall be maintamed in the said Tile Industry Fund to refund 

any liquidated damages which may have been paid into the afore. 

said fund and which sub equently may become due for refund to 

member of the Code, in accordance with the provisions of subsection 

( 4) of this Section D. 

( 6) The provisions of this Section D may be terminated upon a 

majority vote of the members of the Code. 

E. Offshade Tiles which are so widely different in shade that 

they annot be u ed to fill an order for Standard Grade Tiles of the 

particular color such Offshade Tiles were intended to reproduce, 

shall be old at the manufacturer's published price for Second Grade 

Tiles and shall be calculated as Second Grade Tiles subject to the 

provisions of Sections " C " and " D " of this Article. 

ARTICLE XI-SAMPLES 

No member of the Industry shall furnish samples :free of charge, 

except for a specific job, in excess of two square feet of any one 

color or pattern, excepting, however, Quarry Tiles. Unmounted 

samples furni hed for display purposes in a showroom, architectural, 

home owners' or builders' exhibit, in excess of two square feet of any 

one color or pattern, shall be charged for at the current published 

prices less a discount not exceeding 50%. Tile furnished on mounted 

samples in excess of two square feet of any one color or pattern shall 

be charged for at the current published prices, but the manufacturer 

may bear the cost of mounting such samples and furnishing metal 

angle iron surrounding the panel or such other bracing as is u ed, 

crating and the crate cost. 

ARTICLE XII-DISTRIBUTION 

A. No member of the Industry shall grant discounts from hi pub· 

lished net prices as filed with the Code Authority, except that a discount of not over fifteen percent may be given to merchant tile contractor or to wholesalers. 

B. For the purpo es of this Article a merchant tile contra tor hall 

be defi ed as a concern which: 

( 1) Specializes in the in tallation of, but does not engag in the 

sale of un t tile, bathroom accessories, or other ace sorie Yhicl are 

a part of the tiled area; 

(2) l\faintains an adequate howroom and pla e of bu. in . op n 

to the public during usual bu ines hour , which ·h wroom, if a part 

of a re idence, has an entran e separate from any re idential entrance 

and contain at lea t two hundred ancl fifty (250) squar fe t of floor 

space ancl is equipped with uitable furniture an quipment in ke •p· 

ing with a business office and showroom ; 
I 

' 

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(3) :Maintains display facilities and display cabinets adequate and 

suitable to its business. 

( 4) Who shall have purchased two thousand dollars ($2,000) worth 

of tile, bathroom accessories, or other accessories which are a part 

of the tiled area during the past six semiannual periods, or if in 

business less than the six semiannual periods, then an average of two 

thousand dollars ($2,000) worth of tile, bathroom accessories or other 

accessories which are part of the tiled area for such six-month periods 

or any portion thereof as he has been in the tile contracting business. 

Purchases as set forth in this section shall be construed to mean 

the total amount billed for products delivered during the semiannual 

calendar period or any portion thereof and is not intended to mean 

the value or amount of orders placed. 

C. For the purposes of this Article, a wholesaler shall oo defined 

as a concern which: 

( 1) Specializes in the sale but does not engage in the installation 

of tile, bathroom accessories, marble sills, and other accessories which 

are a part of the tiled area ; 

(2) Maintains a warehouse of adequate size and type suitable for 

its business; 

(3) Maintains at each warehouse display facilities or display cabinets adequate and suitable for the nature of its business; 

( 4) Maintains an average stock of thirty-five thousand (35,000) 

square feet of tile at each warehouse. 

D. The Administrator, either on his own initiative or on :petition, 

and after such hearing as he may prescribe, may modify (or may 

approve the recommendations of a majority of the Industry for the 

modification of) the provisions of Sections B and C of this Article. 

E. Each member of the Industry shall submit to the Code 

Authority a list of persons, firms, or corporations whom such member of the Industry has classified as wholesalers and Merchant Tile 

Contractors. The Code Authority shall investigate such persons, 

firms, or corporations and re:port to members of the Industry whether, 

in its opinion, subject to review by the Administrator, such persons, 

firms, or corporations are entitled to qualify as wholesalers or Merchant Tile Contractors as hereinabove defined. No member of the 

Industry shall thereafter grant wholesalers' or merchant tile contractors discounts to persons, firms, or corporations who have been 

determined in the manner herein set forth to have failed to qualify 

as wholesalers or Merchant Tile Contractors. 

ARTICLE XIII-GENERAL PROVISIONS 

A. Any notice, demand, or request required or permitted to be 

given to or made u.I?on any member of the Industry shall be sufficiently given if mailed, postage prepaid-?. addressed to such ~!ember 

of the Industr_:y at the address of such JYiember of the Industry on 

file with the Code Authority. A waiver in writing signed by any 

Member of the Industry of any such notice, demand, or request and 

delivered to the Code Authority shall be deemed to be the equivalent 

of a notice, demand, or request duly given or made, whether or not 

such waiver was signed and delivered before the time when such 

notice, demand, or request was required or permitted to be given or 

made. 
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B. Nothing contained in this Code shall be deemed to constitute 

the members of the Industry or members of the Code partners for 

any purpose. No member of the Industry and no member of the 

Code shall be liable in any _manner to any one for any act of any 

other member of the Code or member of the Industry or for any 

act of the Code Authority or any a~ent or employee thereof pursuant to this Code. No member ot the Code Authority and no 

agent or employee thereof shall be liable to any one for any action 

or omission to act under this Code except for his wilful misfeasance, 

nonfeasance or dishonesty. Nothing contained in this Code shall be 

deemed to confer upon any one other than a member of the Code 

any right, claim, or demand whatsoever not expressly provided by 

statute against any member of the Code or against any member of 

the Code Authority or any agent or employee thereof. 

C. As soon as a majority composed of seventy-five percent of the 

members of the Industry as embled in person or by proxy at any 

meeting which has been called by a reasonable prior notice shall sign 

and deliver to the Code Authority a letter in substantially the form 

s~t forth in Schedule A annexed hereto, this Code shall constitute a 

binding contract by and among the manufacturers who ha' e signed 

the Code subject, however, to amendment as herein provided. 

D. Nothing contained in this Code, excepting, however, Articles 

II, III, IV, and V of this Code shall be deemed to apply to or affect 

the sale of any product of the Industry for direct shipment in export 

trade within the meaning of the term "export trade", as it is used 

in the Export Trade Act, or unless and to the extent that the Code 

Authority shall otherwise determine, subject to review by the Administrator, to the sale of any product of the Industry for direct shipment to the Philippines, Hawaii, or Porto Rico, or other insular 

possessions of the United States of America. 

ARTICLE XIV-MONOPOLIES 

No provision of this Code shall be so construed or administered as 

to pern1it or promote monopolies or monopolistic practices or to 

eliminate, oppress, or discriminate against small enterprises. 

ARTICLE XV-MonmoATION 

A. This Code and all the provisions thereof are expressly made 

subject to the right of the President, in accordance with the pro- visions of subsection B of Section 10 of the Act, from time to time 

to cancel or modify any order, approval, license, rule, or regulation 

issued under Title I of said Act and specifically, but without limitation, to the right of the President to cancel or modify his approval of 

any provision of this Code or of any condition imposed by him upon 

his approval thereof. 

B. Any decision, rule, regulation, order, or finding made or course 

of action followed, pursuant to this Code, may be canceled or modi- fied by the Administrator whenever he shall determine uch action 

by him to be necessary to effectuate the pro i ions of Title I of 

the Act. 
14 

C. This Code, except as to provisions required by the Act, may 

be modified on the basis of experience or changes in circumstances, 

such modification to be based upon application to the Administrator 

and such notice of hearing as he shall specify, and to become effective on the approval of the President. 

ARTICLE XVI-EFFECTIVE DATE 

This Code shall become effective on the second Monday after its 

approval by the President. 
SCHEDULE A 

FoRM OF LETrER oF AssENT TO THE Comll 

To THE CODE AUTHORITY, 

THE TILE l\lANUF CTURING IND"U STRY, 

19 West 44th Street, New York, New York. 

DEAR Sm: The under igned, desiring to become a signatory of the Code of 

Fair ompetition of the Floor and Wall Clay Tile Manufacturing Industry, a 

copy of which is annexed hereto marked Annex A hereby assents to all of 

the provi ions of said Code (hereinafter referred to as the Code), and effective as of the date on which the Code shall have been approved by the Pre 1-

dent of the United States of America as therein provided, or as of the date 

on which this letter shall have be n delivered, if delivery thereof shall have 

been made subsequent to the date on which the Code shall have been approved 

by aid President as afore. aid, by the signing and deli,Tery of this letter becomes a member of the Code; and effective as afore aid hereby agr es with 

every person, firm, a sociation, and corporation who hall then be or thereafter become a member of the Code that the Code shall constitute a valid and 

binding contract between the undersigned and all uch other member , for a 

period which shall terminate on October 1, 1934, or at such time prior thereto 

as the National Indu trial Recovery Act passed June 16, 1933, is terminated. 

The foregoing time of termination is subject to the right of the undersigned 

to extend such time if agreeable to other signatories of the Code. 

For a ll purpo es of Section A of Article XIII of the Code the address of the 

undersigned, until it shall file with the Code Authority written notice of a 

change of such address, shall be as set forth at the foot of this letter. 

Your very truly, 

--- ---, President. 

(15) 

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