Approved Code No. 364 Registry No. 1042-04 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

CLAY DRAIN TILE 

MANUFACTURING INDUSTRY 

AS APPROVED ON MARCH 24, 1934 

WE DO OUR PART 

1 

, • . 0 -: -- --

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent or Documents, Washington, D.C. - - - - - - - • Price 5 cents 
This publication is for sale by the Superintendent of Documents, Government 

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

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga. : 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Custombouse. 

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.: 801 Fir t National 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. 

Louisvill , 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.: 422 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Franci co, Calif. : 310 Customhouse. 

Seattl , Wash.: 809 Federal Office Building. 
Approved Code No. 364 

CODE OF FAIR COMPETITION 

FOR THE 

CLAY DRAIN TILE MANUFACTURING INDUSTRY 

As Approved on March 24, 1934 

ORDER 

APPRO"VING ConE oF FAIR CoMPETITION FOR THE CLAY DRAIN TILE 

:MANUFACTURING INDU TRY 

An application having been duly made pur uant to and in full 

compliance with the provisions of Title I of the National Indu trial 

Recovery Act, approved June 16, 1933, for approval of a Code of 

Fair Competition for the Clay Drain Tile :Manufacturing Industry, 

and hearings having been duly held thereon and the annexed report 

on said Code, containing findings with respect thereto, having been 

made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 

States, I, Hugh S. John on, Admini trator for Industrial Recover , 

pursuant to authority vested in me by Executive Orders of the 

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

annexed report and do find that said Code complie"' in all respects 

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

of Fair Competition be and it is hereby approved; provided, however, that the provi ions of Article VII, Section 2 in ofar a th y 

permit a Regional Committee to adopt a plan which -would 1 re cribe 

a waiting period between the filing with the Regional Comm.ittee 

and the effective date of revi eel price li ts eli counts or terms and 

r.ondition of sale, be and they are hereby tayed pending my further 

Order either within a period of ixty da s from the effective date 

of this Code or after the completion of a study of open price 

associations now being conducted by the National Recovery 

Administration. 

HuGH S. JoHN oN, 

Ad1ninistrator for I ndustrial Recove1--y. 

Approval recon1mended : 

A. R. GL T Y, 

Dimi8ion Adndnist?'ator. 

WA HI TGTON, D .. , 

M areA 924, 1934. 

48729°----425-142----34 (483) 
REPORT TO THE PRESIDENT 

The PREsiDENT, 

The White Howe. 

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

Drain Tile Manufacturing Industry, a hearing on which was conducted in Washington on the fourth of January 1934 in accordance 

with the provisions of the National Industrial Recovery Act. 

HOURS 

This Code provides that no employee shall be permitted to work 

in excess of an average of forty ( 40) hours per week over any six ( 6) 

month period, nor in excess of forty-eight ( 48) hours in any week, 

nor in excess of eight (8) hours in any day, except the following: 

(a) Managers, executives and technical employees, receiving 

thirty-five ($35.00) dollars or more per week, and commercial 

traveling salesmen ; 

(b) Office employees who may not work in excess of forty ( 40) 

hours in any week; 

(c) vVatchmen, who may not work in excess of fifty-six (56) 

hours in any week; 

(d) Truck drivers, who may not work in excess of an average of 

forty ( 40) hours per week over any four ( 4) week period nor in 

excess of forty-eight (48) hours in any week; 

(e) Employees directly engaged in the continuous drying and 

burning processes, who may work not in excess of forty-eight ( 48) 

hours in any week nor eight (8) hours in any day; 

(f) Kiln setters and kiln drawers, who may work not in excess of 

an average of forty ( 40) hours per week over a six ( 6) month period 

nor forty-eight ( 48) hours in any week, provided that one and onethird times the normal rate be paid for time worked in excess of 

forty ( 40) hours in any week. 

(g) Employees engaged in emergency repairs, who may work not 

in excess of an average of forty (40) hours over any six (6) month 

period, provided that one and one-third times the normal rate be paid 

for time worked in excess of forty ( 40) hours in any week. 

WAGES 

The Code provides for minimum rates of pay of 35 cents per hour 

in the North and 30 cents, 27 cents, 25 cents and 24 cents per hour in 

each of four southern zones, the southern rates and zones conforming to those provided for in the Code for the Structural Clay Products Manufacturing Industry. It provides for minimum rates of 

pay for accounting, clerical and office employees of from $16 per 

week to $14 per week, ·depending upon the size of the city, in the 

(484) 
4 5 

immediate trade ar a of whi ·h they arc mpl yccl, an 1 f r mmunum 

rat of pay of $15 p r 'iV k for watchmen. It proYi 1 . f r he 

incr a f wages ab V th minimum, to pr ' rY quitabl cliff rential , an l :for r p rt t th l Authority f a tion tak n with 

ref r n to th . a j u tm nts. 

EFFE T OF THE CODE 

AI pr product f thi. in lu try i oll to the 

farmer and approximat l} 4% of it i pro lu d an old in the 

tat of Ohio Illin i In liana l\1i higan an l Iowa. B au of 

th v r r low purcha ing power of the farmer, particularly in this 

ection the indu try find it elf in a lesperat on<lition. al s have 

lropped about 83% in volume and 85% in value ·in e the year 1929. 

A laro-e percentage of the indu try is bankrupt. 

Employment has alr a ly been pre a l, in thi in lu try, to th point 

where aYerao-e tim.e worked ha been reduced to 12 hour per week 

an l average weekly earning to $~.40. In the face of an 83% decline in production the numb r of employee has decrea eel but .... , 

from 3.600 in 1929 to 2.6-o in 1933. ObYiously, th aprlication of 

the Cole will not incr a e employment. It will howeYer, ten l to 

shorten the long idle periods between periods of operation. 

The av rao·e minimum wage rates proYided for in the Cod are 

75% hio·her than the aYerage minimum wage rates now in effe t and 

are hio·her than those in effect in 1929. It i only b mean of a 

sub tantial increa e in farm purchasing pmver that the indu try will 

be enabled to carry this additional burden. 

FI~DINGS 

The A. sistant D puty A lministrator, in his final report to me on 

said Cole, having foun l a her in set forth and on the ba i of all 

the proceedings in this matter · 

I find that: 

(a) aid Code i well de io-n eel to promote the poli i and pur- pose of Title I of th National Indu. trial Recoyer. Act, inclubng 

remo'i al of ob trnction to the free flow of int r tate and for io-n 

commerce whi h ten l t limini h the amount thereof and will provide f r the general w lfare by promoting the organization of inlu -

try for the purpo e of ooperative action among the tra le ar ups, 

by in ln ing and maintaining united action of labor an l manag - ment un ler ad quate o·overnmental sanctions an l upervi. ion, by liminatino· unfair com] etitiYe pra tices, by 1 r m ting th full t I o -

sible utilization of th 1 r nt procluctiv car a ity of in lu trie , by 

avoi lin a undue re tri tion of production ( x 1 t a may e t mporaril. r quirccl) by in r a ino- the on umption of in lu trial an 

agri ultural proclu t thr ugh increa ino- pnrcha ino- I ow r b} r -

lucino· and reli ving unem1l yment by imr roYina tan iar of 

la or· an l by otherwi r habilitating indu tr .. 

(b) aid indu try normally emplo} s not more than ~o 0 0 cmpl y . ; and is not la ifi l by me a a major indu tr .. 

(c) Th ode a appr " u mpli in all r p wi h th I rtinent pr vi ions of ai Title of said Act, including with ut limita-
486 

tion Subsection (a) of Section 3, Subsection (a) of Section 7, and 

Subsection (b) of Section 10 thereof; and that the applicant association is an industrial association truly representative of the a.foresaid industry, and that said association impo es no inequitable restrictions on admission to membership therein. 

(d) Said Code is not designed to and will not permit monopolies 

or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 

small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have not 

been deprived of the right to be heard prior to approval of said 

Code. 

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

Respectfully, 

MARCH 24, 1934. 

HUGH s. JOHNSON' 

Administrator. 
CODE OF FAIR C0l\1PETITION FOR THE CLAY DRAIN 

TILE :MANUF A TURING I NDUSTRY 

AnTI LE I-PURPO E 

To effectuate the policies of Title I of the N ati.onal In ustrial 

Recovery Act, the following provisions are established as a Code 

of Fair Competition for the Clay Drain Tile Manufacturing Indus- try, and shall be the standard of fair competition for su h industry 

and shall be binding upon every member there f. 

ARTICLE II-DEFINITIONS 

SECTION 1. The terms "Clay Drain Tile l\lanufacturing Industry ', or "the industry " as used herein means and includes the 

manufacture for sale of drain tile, excluding, however, salt glazed 

clay drain tile fabricated in vitrified clay sewer pipe plants by 

such manufacturers thereof as have not, pursuant to the provisions 

of the Code of Fair Competition for the Vitrified Clay Sewer Pipe 

Manufacturing Industry, elected to operate under this Code in respect to the salt glazed clay drain tile so fabricated. 

SECTION 2. The term " drain tile " as used herein mean a hollow 

cylinder of burned clay with straight ends without bell, and used for 

under-drainage of land. · 

SECTION 3. The term "employee" as used herein includes anyone 

engaged in the industry in any capacity however compensated, 

except a member of the industry. 

SECTION 4. The term "employer" as used herein include anyone 

by whom such employee is compensated or employed. 

SECTION 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. SECTIO~ 6. The term "plant" as used herein means an e tabli hment engaged in the manufacture of drain tile. 

SECTION 7. The terms ' President", "Act", and 'Administrator", 

as u od herein shall mean respectively, the Pre ident of the United 

tate , Title I of the National Industrial Recovery Act, and the 

Aclmini trator for Industrial Recovery. 

SEcTio~ 8. The term ' Code Committee ' a used herein means 

the committee appointed by the members of the indu try to present 

this Code. 

SEcTION 9. Population for the purpo e of this Code hall be determined by reference to the latest Federal Cen us. 

ARTICLE III-Ho R 

SECTION 1. No mployer shall cau e or permit any mployee to 

work in exce of an a verao- of forty ( 40) hour p r week o er any 

six month peri d nor in exce of eicrht ( ) hours in any day, nor in 

exce s of forty- ight ( 4 ) hour in any week, x pt that: 

(a) Any employ e may be permitted to work in any day r w ek 

in exce of th maximum hour abo e pro ide in the ca of mer-

(4 7) 
488 

gencie requiring protection of life or prop rty, or involving the 

repair of production facilities, provided that the total hours worked 

shall not average more than 40 hours per week over any six-month 

period, and provided further that in any such special ca es at least 

one and one-third times the normal rate hall be paid for time worked 

in excess of forty ( 40) hours in any week; 

(b) Any employee directly engaged in the continuous drying and 

burning processes of the products of this industry may be permitted 

to work regularly not in excess of forty-eight (48) hours in any week 

or eio-ht (8) hours in any day; 

(c) Kiln setters and kiln drawers may be permitted to work not 

in exces of an average of forty ( 40) hours per week over any six 

month period, nor in excess of forty-eight hours in any week, provided that at least one and one-third times the normal rate shall be 

paid for all time worked in excess of forty ( 40) hours in any week; 

(d) Truck drivers may be p-ermitted to work not in excess of an 

average of forty (40) hours per week over any four week period, 

nor in excess of forty-eight ( 48) hours in any week; 

(e) Employees regularly receiving thirty-five dollars ($35.00) or 

more I?er week who are engaged in technical work or in managerial, 

executive or supervisory capacities, and commercial traveling salesmen, shall not be subject to the limitations of this Article; 

(f) Watchmen may be permitted to work not in excess of fifty-six 

(56) hours in any week; 

(g) Accounting, clerical, office, service, or sales employees ( exce:pt 

commercial traveling salesmen) may be permitted to work not In 

excess of forty ( 40) hours in any week. 

SECTION 2. No employer shall knowingly permit any employee to 

work for any time which when totaled with that already performed 

for another employer or employers exceeds the maximum hours 

permitted herein. 

ARTICLE IV-WAGES 

SECTION 1. No employee, excluding the classes of employees described in Sections 2, 3 and 4 of this Article, shall be paid less than 

at the rate of thirty-five cents (35¢) per hour, provided, however, 

that: 

(a) In Arizona, Arkansas, Kentucky, New :Mexico, Oklahoma, 

and Virginia with the exception of the counties of Arlington, Fairfax, Loudoun, Clarke and Frederick, such minimum rate shall be 

thirty ( 30) cents per hour; 

(b) In North Carolina, such minimum rate shall be twenty-seven 

cents (27¢) per hour; 

(c) In Tennessee, such minimum rate shall be twenty-five cents 

( 25¢) per hour ; and 

(d) In Alabama, Florida, Georgia, Louisiana, Mis is ippi, South 

Carolina and Texas such minimum rate shall be twenty-four cents 

(24¢) per hour. 

SECTION 2. Accounting, clerical, or office employees shall not be 

paid less than at the rate of $16.00 per week, in any city of 500,000 

populatjon or over, or in the immediate trade area of such city; 

and not less than at the rate of $15.50 per week in any city between 

100,000 and 500,000 population, or in the immediate trade area of 

such city; and not less than at the rate of $15.00 per week in any 
489 

city betw en 10,000 anl 100 000 population or in h imm diate 

trade ar a of uch city; and not le s than at the rate of $14.00 per 

we k in any other plac . 

, E TIO :r 3. \Vatchmen hall b paid not less than $15.00 p r ""eek. 

ECTION 4. A p r ·on who-e earning capacity is limite l because 

aae or phy ical handi ap may be mployed on liaht work at a 

wage below the minimun1 e tabhshed by thi o e if the mployer · 

obtain from the tate authority d signated by the United tates 

Departm nt of Labor a certificate authorizing his employment at 

such wages as shall be stated in the certificate. Su h authority 

hall be guided by the instruction of the United tat . Department 

of Labor in is uing certificates to uch persons. Each employer 

shall file with the Code Authority a li t of all such per ons employed 

by him. 

SECTIO 5. Thi article e tablishe a minimum rate of pay, r ga.rdless of whether an employee is compensated on a time-rate, piecework, or other basis. 

SEcTION 6. \V ages above the minimum shall not be decrea ed, and 

rate of pay in excess of the minimum rate herein provided shall 

be incr a d to preserve equitable differentials, and member of the 

industry shall report to the Code Authority the action taken by 

them in pursuance of this provision. 

SEcTION 7. Female employees performing substantially the same 

work as male employees shall receive the same rates of pay as such 

male employees. 

SECTION 8. An employer shall make payment of all wages due 

in lawful currency, or by negotiable check therefor payable on demand. Wages shall be exempt from any payments for pensions, insurance, or sick benefits other than those voluntarily authorized by 

the employee or required by law. Wages shall be payable at least 

semi-monthly and salaries at lea: t monthly. · 

ARTI LE V-GENERAL LABOR PROVISIONS 

SECTION 1. No person under ixteen year of age shall be n1ployed 

in the industry, nor any one under eighteen years of age at operation or occupations hazardous in nature or detrimental to health. 

Each member of the in lu try shall submit to the Code Authority 

within sixty (60) days after the effective date, a li t of uch operations or occupations. In any State an employer hall be dee1ned 

to have complied with the provi ions of this paragraph if he shall 

have on file a certificate or permit duly is ned by the authority in 

such State empowered to is ue employment or age certificate or permit showing that the employee is of the required age. 

SEcTION 2. Employ es shall have the right to organize an l bargain collectiv ly through repre entativ s of their own choosing and 

·hall be free from the interf renee, restraint, or coer i n of employer of labor, or their ag nts, in the designation of such repr ntati e , or in self-organization or in oth r concerted activities for the 

purpo e of collective bargaining or other mutual aid or pr t tion. 

SECTION 3. No employee and no one eelring employment . hall be 

r quirecl a a conditi n of empl ment to join any company union 

or to r frain from joining organizing or a sisting a labor organization of hi own cho ing. 
490 

SECTION 4. Employers shall comply with the maximum hours of 

labor, minimum rates of pay, and other conditions of employment, 

approved or pre cribed by the President. 

SECTION 5. No provision of this Code shall super.sede any state 

or federal law imposing more stringent requirements on any employer, regulating the age of employees, wages, hours of work, or 

health, fire protection, or general working conditions, than under 

this Code. 

SECTION 6. Employers shall not reclassify employees or duties of 

occupations performed by employees or engage in any other subterfuge in order to defeat the purposes of this Code or of the Act. 

SECTION 7. Each employer shall post in conspicuous places easily 

acce sible to employees full copies of this Code. 

SECTION 8. Every employer shall make reasonable provision for 

the safety and health of his employees at the place and during the 

hours of their employment. Standards for safety and health shall be 

submitted by the Code Authority to the Administrator for approval 

within six months after the effective date of this Code. 

ARTICLE VI-ADMINISTRATION 

To further effectuate the policies of the Act1 a Code Authority is 

hereby constituted for the administration of this Code. 

SECTION 1. For a period not to exceed thirty days after the effective 

date hereof the Code Committee shall constitute a temporary Code 

Authority until the Code Authority is elected. 

SEcTION 2. The Code Authority shall consist of one representative from each of the regions established in Section 5 hereof, or as 

may be hereafter established, to be elected by a majority vote of the 

members of the industry located in the respective regions, and one 

member to be elected from the industry at larg-e~ by the n1embers 

elected from the said regions, to serve for a periOd of one year. 

In addition to the membership above provided, the_ Administrator 

1nay appoint not more than three additional members, without vote, 

to serve for a period of one year from the date of appointment. 

SEcTION 3. In the event of any vacancy in the voting membership 

of the Code Authority, the remaining members may designate a member (from the region to be represented if the vacancy is that of a 

regional member) to serve temporarily until such vacancy shall have 

been filled, in the manner provided in Section 2 of this Article for 

the original selection of such inember, by a special or regular election. 

SECTION 4. For the purpose of the election of the Code Authority 

the temporary Code Authority shall call a meeting of the members 

of the industry in each region, as established in Section 5 hereof, upon 

ten days' notice sent by registered mail to all members of the industry in the respective regions, who may vote in person or by proxy. 

At these meetings the members of the industry shall elect the reg-ional Code Committees, as provided in Section 7 hereof. 

SECTION 5 .. The industry shall be divided into the following regions and such regions shall be, within the limitations hereinafter 

provided, independent and self-governing in respect to the admin- istration and enforcement of this Code within such regions: 
491 

R gion No. 1. Stat s of Ohio an l Mi higan; 

R o-ion No. 2. tate of Indiana and l{entu ky; 

Region No. 3. tate of Illinoi and Wiscon in; 

Region No. 4. All tat Wet of :Mississippi Riv r, exc pt those 

in lu led in Region N . 5; 

Region No. 5. Stat f " 1 a hingt n, Oregon, California, Idaho, 

Neva 1a nn Arizona · Region No. 6. All tat East of the Mis issippi ex ept those includ din Region No . 1, 2, and 3. 

SECTION 6. Subject to the approval of the Administrator, the Code 

Authority may e tablish region in addition to those h reinabove 

e tabli heel and may r vi e the r gions from time to time established 

hereunder with the con ent of a majority o1 the members of the 

indu try located in any such revised region or region . SE TION 7. The members of the industry lo ated in each region 

·hall1 at the meeting called by the temporary Code Authority, as 

pro·\lded in Section 4 hereof, elect a regional committee of five ( 5) 

members to serve for one year within such region as above provided, 

and uch regional committee shall have the following powers and 

dutie : 

(a) To adopt by-laws and rules and regulations for its procedure 

in the administration and enforcement of the Code in accordance 

with the powers herein granted, and to delegate to agencies and 

repre entatives such of its _powers and duties as it may deem proper, 

provided that nothing herein shall relieve it of its duties and responsibilities, and that such agencies or representatives shall at all times 

be subject to and comply with the provisions of this Code; 

(b) Under such rules and regulations as may be prescribed by the 

Administrator, (1) to receive complaints of violations of the Code 

against members of the industry within its region, (2) to make 

investigations thereof and to seek adjustments of such complaints; 

and (3) to bring to the attention of the Code Authority, recommendatiOns and information relative to unadjusted violations; 

(c) To make recommendations to the Code Authority concerning 

the operation and functioning of this Code within its region; 

(d) To cooperate with and aid the Code Authority in the collection of reports and assessments for administration expenses and in 

effectuating the other powers and duties conferred upon the Code 

Authority. 

SECTION 8. The Code Authority shall have the following powers 

and duties i~ addition to those elsewhere provided herein; 

(a) To adopt by-laws and rules and regulations for its procedure 

in the administration and enforcement of the Code in accordance 

with the powers herein granted; 

(b) To obtain from members of the industry for its use and that 

of the Administrator uch rel?orts as may be required under the A t 

for th effective admini tratwn and enforcement of the Code· all 

individual reports, data and information obtained from m rub r 

of the indu try pursuant to this Code, however, shall be k pt c nfidential and unless the Admini trator shall otherwise r quire, only 

general ummaries thereof may be published; 

(c) Und r such rules and reo-ulations as may be prescrib db .. the 

Administrator, to receive omplaints of violatiOns of the Code from 
492 

nhe ~g nal Committees ancl to Jnake investigations thereof and 

seek adjustments of such complaints in accordance with the requirements of this Code, and to bring to the attention of the Administrator recommendations and information relative to unadjusted 

violations; 

(d) To u e such trade a sociations, Regional Committees and 

other agencies and to delegate to them such of its powers and duties, 

as it deems proper for the carrying out of any of its activities provided herein, provided that nothing herein shall relieve the Code 

Authority of its duties or re ponsibilities under this Code and that 

such associations, regional committees and other Agencies shall at 

all times be subject to and comply with the provisions of this Code; 

(e) To coordinate the administration of this Code with such other 

codes as may be relative hereto or any sub-division hereof and to 

delegate to any other administrative authority, with the approval 

of the Administrator, such powers as will promote joint and 

harmonious action upon matters of common interest; 

(f) To hear and to seek to adjust controversies between or 

affecting two or more Regional Committees ; 

(g) To cooperate with the Administrator in regulating the use of 

the N.R.A. Code insignia solely by those employers who have assented 

to and are complying with this Code; 

(h) To initiate, consider and make recommendations for the 

modification or amendment of this Code. 

SECTION 9. Each trade or industrial association directly or indirectly participating in the selection or activities of the Code Authority shall (1) impose no inequitable restrictions on membership1 and (2) submit to the Administrator true copies of its articles ot 

association, by-laws, regulations, and any amendments when made 

thereto, together with such other information as to membership, 

organization and activities as the Administrator may deem necessary 

to effectuate the purposes of the Act. 

SECTION 10. In order that the Code Authority and the Regional 

Committees 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 or any such 

Regional Committee is not truly representative or does not in other 

respects comply with the provisions of the Act, may require an appropriate modification in the method of selection of the Code 

Authority or any such Regional Committee. . .. SECTION 11. Members of the Industry shall be entitled to participate in and share the benefits of the activities of the Code Authority 

and the Regional Committees and to participate in the selection of 

the members thereof by assenting to and complying with the requirements of this Code and sustaining their reasonable share of the 

expenses of its administration. Such reasonable share of the 

expenses of administration shall be determined by the Code Authority, subject to review by the Administrator, on the basis of v_olume 

of business and/ or such other factors as may be deemed eqmtable. 

SECTION 12. In addition to the information required to be submitted to the Code Authority, there shall be furnished to State 

and Federal government agencies such statistical information as 

the Administrator may deem necessary for the purposes recited in 
493 

S tion 3 (a) of th Act and nothing contain d h r in hall relieve 

any memb r of th indu try of any xi. tin obliaation to furnish 

report to governm nt ag n ie . ECTIO .. T 13. If th .._ mini trat r hall d termine that any action 

f a ode Authority r any agency there f may be unfair or 1njust 

or contrary to the publi interet, the Administrat r may r quire 

that such a tion b u p nd d to afford an opportunity for in e tigation of the meri of uch a ion and furth r con ideration by 

uch o e Authori y or ao-en pending final action which hall not 

be ffecti · unle. the A ln1ini trator approve or tmle he hall fail 

to di approve after thirt day ' notice to him of intention to proceed 

'Yith uch a tion in it original or modified form. SECTIO.~. 14. thino- contained in this Code shall onstitute the 

m mbers of the Col Authority or the Regional Committees partners for any purpo e. Nor shall any member of the ode Authority 

or any Regional Committee be liable in any manner to anyone for 

any act of any other member, officer, agent or employee of the Cod~ 

Authority or any Regional Committee. Nor shall any member of 

the Code Authority be liabl to anyone for any action or omission 

to act under the Code. except for his own willful mi f a ance or 

non-fea ance. 

ARTI LE VII-A 0 N TING PRI E PUBLICATION .AND PRODUCTION 

ECTION 1. Accounting an(l Oo ting.-The Code Authority shall 

cause to be fo::.·mulated an accounting system and methods of cost 

finding an l/ or estimating capable of u e by all members of the 

indu try. After such ystem and methods have been formulated, 

full detail concerning them shall be made available to all members. 

Thereafter all members shall determine and/or e timate costs in 

accordance TI"ith the principles of such methods. 

Upon the approval of such sy tern or method by the Administrator, no member of the indu ry hall sell any product of the 

indu try b low his individual co t thereof, determined pursuant to 

the principle of uch approved system or method· except 

(a) to meet the competitive price of a product of this indu try of 

similar grade and quality (by publication where required by a price 

publication sy tem a lopted pursuant to the provi ion of Section 2 

of thi Article) ; and except 

(b) to meet (without price publication) the competitive price of a 

product oi another indu try in actual competition with uch member's 

product provided such action be reported within five ( 5) days after 

the quotation is made to the Regional Committee of the region into 

which delivery is to be made; and except · (c) to di po e of ob olete or below-grad products upon making, 

within five days after sale a detail d report to the R gional Committee for the region within hich delivery is to b made describing 

the quantities and grades of such products disposed of and the price 

r prices cured therefor; and ex ept 

(d) under such other circumstances or conditions as the appropriate Regional ommittee may determine _justice requires provided 

that uch determination of the Regional Committ e hall apply to 

all members of the indu try within the region under imilar ndition or circumstance . 
494 

SEcTION 2. Price Publication.-( a) Any Regional Committee may, 

if it so determines, require that each member of the industry within 

its region shall file with the Committee~s Secretary a net price list 

and/or a price list and discount sheet individually prepared by him 

showing his current prices and/ or prices and discounts, and his 

terms and conditions of sale, including all special discounts, freight 

allowances, and terms of payment. vVithin ten (10) days after 

notice of such determination, each such member of the industry shall 

comply therewith. The Secretary shall immediately send copies 

thereof, and of any revisions therein filed as hereinafter provided, to 

all other interested members of the industry, and all such lists and 

revisions so filed shall be available to and subject at all times to the 

inspection of purchasers and prospective purchasers. 

(b) Each member of the industry shall be free to change his published prices, discounts or terms and conditions of sale from time to 

time, but he shall file such new, amended or revised prices, discounts 

or terms and conditions of sale with the Regional Committee of his 

region to become effective five (5) days after filing thereof, except 

that in order to meet the revisions of another member of the industry, any member may file appropriate revisions to become effective 

upon the effective date of such other member's revisions, or, if such 

other member's revisions have already become effective, to become 

effective immediately. All such revisions shall be deemed to be filed 

with Regional Committees, as hereinabove provided, when an acknowledgment by wire or by 1nail shall have been issued by the 

Secretary of such Regional Committee, who shall issue such acknowledgment immediately upon receipt of any price list. 

(c) Except as otherwise in this Section provided, no member of 

the industry shall sell directly or indirectly, through an affiliated 

company or otherwise, by any means whatever any products of the 

industry at a price lower, or at discounts greater, or on more favorable terms and conditions than those provided in his current net 

prices and/or price lists and discount sheets, so filed as aforesaid. 

Any member of the industry may deviate from his published prices, 

discounts or terms and conditions of sale when bidding in competition 

with the products of another industry, but any such deviation shall 

be reported forthwith to the Regional Committee for the region into 

which delivery is to be made. An "affiliated company", for the purpose of this Section means a company the majority of whose voting 

stock is owned or controlled directly or through any intermediate 

agency, by a member of the industry. 

(d) A member of the industry, located in a region for which a 

price publication p~an shall not have been adopted pursuant hereto, 

shall not sell any industry product for delivery in any other region, 

in which such a plan shall have been adopted, at a net delivered 

price lower than the lowest net price published in that region, except 

by complying with the price publication plan adopted for such other 

region. 1 

SECTION 3. Production.-The present kiln capacity of the jndustry 

shall be registered by the members of the industry with the Code 

Authority. The intention of persons engaged or engaging in the 

industry to install additional kiln capacity, excepting, however, mod1 See paragraph 2 of order approving this Code. 
495 

ernization or replacement of exi ting capacity or to devote to the 

manufa ture of drain til , kilns not u ed for such purpose during 

the four year period ending February 1, 1934, shall be reported to 

the Code Authority. The Code Authority shall make such recommencla ion with re pect thereto to the Admini trator a it may deem 

d irable to effec nate the policy of the Act. 

ARTI LE VIII-TRADE PRACTICES 

The followinO' practice constitute unfair methods of competition 

for members of the industry and are prohibited : ' 

E TION 1. False Marking or Branding.-The :false marking or 

branding of any product of the indu try which has th tendency to 

mislead or leceive customer or prospective customer , whether as to 

the grade, quality, quantity substance, character, nature, origin, size, 

finish, or preparation o:f any product of the indu try or otherwise. 

SECTION 2. Mis1·epresentation or False or Misleading Advertising.-Making or causing or knowingly permitting to be made or 

published any statement or representation by way o:f advertisement 

or otherwise "hich is false, inaccurate or deceptive in any material 

particular, whether concerning the grade, quality, quantity, ub tance, 

character, nature, origin, size, finish, or preparation of any product 

of the industry, or the credit terms, values, policies, or services of any 

member of the industry, or otherwise having the tendency or capacity to mislead or deceive customers or prospective customers. 

SECTION 3. Oo17vmerdaJl Bribery.-Giving, permitting to be given, 

or directly offering to give, anything of value :for the purpo e of influencing or rewarding the action of any employee, agent, or representatiYe o:f another in relation to the business of the employer of 

such employee, the principal of such agent or the represented party, 

without the knowledge o:f such employer, principal or party. This 

provision hall not be con trued to prohibit :free and general' distribution of article commonly used :for advertising except so :far as uch 

articles are actually u ed :for commercial bribery a hereinabove 

defined. 

SE TION 4. Interf erence with Contractual Relations.-l\1aliciou ly 

inducing or attempting to induce the breach of an exi ting oral or 

written contract between a competitor and his customer or source of 

supply, or interfering with or ob tructing the performance of any 

such contractual duties or services. 

SEcTiox 5. Secret R ebates.-The ecret payment or allowance of 

rebates refunds credits, or unearned commission or eli counts, 

whether in the form of money or otherwise or the secret extension to 

certain purchaser of special ervices or privileges not extended to al'l 

purcha ers on like term and condition . SE TION 6. Giving of Prizes, Premiwms, 01' Gifts.-The offering or 

gi ing of prize premiums or gifts in connection with the sale of 

products, o1· as an inducement thereof, by any cheme which invol es 

bribery, mi repre entation, or fraud. 

SECTION 7. Defamwtion.-The defamation of competitors by fal ely 

imputing to th m dishonorable condu t inability to perform contra t , que tionable credit tanding or by other fal e representations 

or by the fal e eli paragement of the grade or quality of their goods. 
Ill II 111111/@lilfllil!i't~lllilflllililijl] ill! fill IIIII II 

496 3 1262 08486 8677 

SEcTioN 8. ThTeats of Litigations.-The publishing or circularizing 

of threats or suits for ~nfringement 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. 

SECTION 9. Espionage of Oompetitors.-Securing confidential information concerning the business of a competitor by a false or misreadin~ statem(;nt or representation, by a false impersonation of one 

In aut11ority, by bribery, or by any other unfair method. 

SECTION 10. Acceptance of Securities.-Accepting securities except 

at current marketable cash value, in payment for drain tile. 

SEOTION 11. Other U-nfair Practices.-N othing in this Code shall 

limit the effect of any adjudication by the Courts or holding by the 

Federal Trade Commission on complaint, finding, and order, that 

any practice or method is unfair, providing that such adjudication 

or holding is not inconsistent with any provisions of the Act or this 

Code. 

ARTICLE IX-MomFIOATION 

SECTION 1. This Code and all the provisions thereof are expressly 

made subject to the right of the President, in accordance with the 

provisions of subsection (b) of Section 10 of the National Industrial 

Recovery 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 this Code or any 

conditions imposed by him upon his approval thereof. 

SECTION 2. This Code, except as to provisions required by the Act, 

may be modified on the basis of experience or changes in circumstances, such modifications to be based upon application to the 

Administrator by the Code Authority and, after such notice and 

hearing as he shall specify, shall become effective as a part of this 

Code on his approval thereof. 

ARTICLE X-MONOPOLIES, ETC. 

No provisions of this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. 

ARTICLE XI-PRICE INCREASES 

Whereas the policy of the Act to increase real purchasing power 

will be made impossible of consummation if prices of goods and 

services increase as rapidly as wages, it is recognized that price 

increases should be delayed and that, when made, the same should, 

so far as reasonably possible, be lilni'ted to actual increases in the 

seller's costs. 

ARTIOLE XII-EFFECTIVE DATE 

This Code shall become effective on the tenth (lOth) day after its 

approval pursuant to the Act. 

Approved Code No. 364. 

Registry No. 1042--04. 

0