Approved Code No. 519 Registry o. 1039- 12 

NATIONAL RECOVERY ADMI ISTRATIO 

CODE OF FAIR COMPETITION 

FOR THE 

NATURAL CLEFT STONE 

INDUSTRY 

AS APPROVED ON SEPTEMBER 11, 1934 

WE DO OUR PART 

UNITED ST ATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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

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

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

and Domestic C.9mmerce. 

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. 

Oharleston, 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. 

D etroit, Mich. : 801 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

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

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa. : 422 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo. : 506 Olive Stre2t. 

San Francisco, Calif.: 310 Custornilo1-1~e. 

Seattle, Wash.: 809 Federal Office liuilcling. 
Approved Code To. 519 

CODE OF FAIR CO PETITION 

FOR THE 

NATURAL CLEFT STONE INDUSTRY 

As Approved on Septembe:r 11, 1934 

ORDER 

APPROTING CooE OF FArn Co~rPETITIOK F OR THE~ AT RAL CLEFT T OXE 

hrn TRY 

An application ha, ing been clul} made pursuant to an l in full 

compliance with the provi ion f Title I of the ational Indu trial 

Recovery Act, approved June 16 1933 for approYal of a ode of 

Fair Competition for the T atural left tone Indu tr and hearing having been duly held thereon and the annexed report on aid 

Code containino- fin ling with r e pect thereto haYing been made and 

directed to the Pre ident: 

row, THEREFORE. on behalf of the Pre ident of the Lnited 

State , I, Hugh S. John on Admini trator for Indu trial Recm·ery, 

pur uant to authorit ve ted in me b Executi, e Order of the Pre ident including E:xecutiYe Order o. 6543-A dated December 30, 

1933 and otherwi e; do hereby incorporate by reference aid annexed report and do find that aid Code complie in all re pect with 

the pertinent provi ions and will promote the policy and purpose of 

said Title of aid Act · and do hereby order that aid Code of Fair 

Competition be and it i hereby approved. Provided, however, that 

the Code Authority hall not later than ninety (90) day after the 

date of thi Order, ubmit to the dmini..,trator further evidence that 

the averaging of hour as provided in Section 1 of Article III is 

nece ary in this Industry. 

H aH S. JoHx ox 

Administrator for Industrial Recovery. 

Approval recommended: 

C. E. AoAl\I 

Division d1nini trato1'. 

w A HIXGTON D. . 

ept mber 11 1934. 

85405°-1181-41-34 (147) 
REPORT T O THE PRESIDENT 

The PRESIDE T, 

The White House. 

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

Natural Cleft tone Industry, whose products are commonly known 

as flagstone. A hearing on this Code was conducted in vVashington, 

D.C. on 1\tiarch 17, 1934, in accordance with the provi ions of the 

National Industrial Recovery Act. 

PROYISIO :rs AS TO HOURS AND WAGES 

The work week is limited to forty hours, averaged over periods of 

three months, with a maximum of forty-eight hours in any one week, 

six days in any one week and eight hours in any twenty-four hour 

period. Exception i n1ade for employees engaged on emergency 

maintenance and repair work, but they mu t be paid one and onehalf times the hourly rate for all overtime. Travelling salesmen 

are also excepted, and managers and executives who receive regularly 

not le s than thirty-five. dollars per week. The work week for watchmen i extended to fifty-six hours. The 1 inimum wage rate is forty cents per hour except in places 

of les than twenty-five hundred population, wher it i et at thirty 

cents per hou_ for the Southea tern, and thirty-0 ight cents per hour 

for the Northeastern region. 

CHILD LABOR 

Child labor is prohibited, the minimum age for all employees 

being set at ighteen y ar . 

ECOXOl\IIC EFFECT OF TIIE GODE 

Like all oth r con truction material the sale of fl a 0 • tone ha been 

o-rea ly curtailed. ccurate 0ta+-istics are not aYailable but it i e timated that t.he Yalu of he product has fallen from a million dollars 

in 192 to one quarter that amount in 1933; an l mployment has 

been cut from slight!} OY r four hundred to a little under half that 

amount in the ame period. ot much increase in emplo ment can 

be expected until a revival of con ruction occur . The propo eel 

wa ·e however, repres nt a marked increase and will re tore the 

1929 level of wage . An a1 pr ciable part of the volume is produced by two or thr e 

man quarries or pit , working on hares. 1uch of this tone i ol l 

for 11hateyer it will bring, corre ponding to v ry low wag rut s. 

It is hoped that the trad practice provi 10ns of he Co le will help 

to eliminate thi situation. 

(148) 
149 

FI:NDIKCS 

The A istant Deputy Admini trator in his final report to me on 

said Co le having foun l as herein set forth and on the ba i of all 

the proceedino- in this matter; 

I find that : 

(a) Said Code i well de igne 1 to promote th policie and purpo es of Title I of the ational Indu trial Recovery ct including 

removal of ob tru tion to the free flow of inter ta te and foreign 

commerce which t end to dimini h the amount thereof and "ill proide for the general welfare by promoting the organization of indu try for the purpo e of cooperati-ve action among trade group by 

inducing and maintaining united action of labor and management 

under adequate go-,ernmental anction and uper,i ion, b eliminating unfair competitive practice , by promotino· the fulle t po ible 

utilization of the pre ent producfr,e apacity of indu trie by avoiding undue re~triction of production ( except a may be temporarily · 

required) by increasin_?" the con un1ption of indu trial and agricultura.1 products through increasing purchasing power by reducing and 

relieving unemployment b~r improving tandard of labor and by 

otherwi e rehabilitating indu try. 

(b) Said Indu try normally employ not more than 50 000 

employee · and i not cla ified by me a a 111.ajor indu tr3. 

( c) The Code a appro-ved complies in all r e pects "ith the pertinent provi ions of aid Title of . aid Act including "ithout limitation Sub ection (a) of Section 3, Sub ection (a) of Section 7, and 

Subsection (b) of Section 10 thereof· and that the applicant association is an industrial a ociation truly repre entative of the aforeaid Indu try· and that aid a ociation impo e no inequitable 

re trictions on admi sion to member hip therein. 

( d) The Code i not de igned to and will not permit monopolies 

or monopolistic practices. 

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

mall enterpri es and will not operate to discriminate against them. 

(f) Tho e engaged in other step of the economic proce shave not 

been deprived of the right to be heard prior to approval of aid Code. 

For the e reasons, therefore, this Code has been approved. 

Respectfully 

Huan S. JoHN ON, 

Ad 11iinistrat or. 

SEPTEMBER 11, 1934. 
CODE OF FAIR COMPETITION FOR THE NATURAL 

CLEFT STONE INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial Recovery Act, this Code is established as a Code of Fair Competition 

for the Natural Cleft Stone Industry and its provisions shall be the 

standards of fair competition for such Industry and be binding upon 

every member thereof. 

ARTICLE II-DEFINITIONS 

Wherever used in this Code or any .., upplement appertaining 

thereto, the terms enumerated in this Articl hall have, the meanings 

herein defined, unless the context shall otherwise clearly indicate. 

SECTION 1. The tenn " Cleft Stone Industry " or "Industry " as 

used herein includes the quarrying of and/ or the assembling of cleft 

stone and the origjnal ale thereof by a producer of cleft stone to a 

consumer or to an assembler directly or indirectly> either by himself 

or his agent, which includes without limitation any person or corporation occupying a sub idiary or controlling relationship or one 

of common, mutual or joint owner hip or control to a lVlember of 

Industry, and/ or the sale of assembled cleft stone by an assembler 

directly or indirectly, either by him ·elf or his agent, which include 

without limitation any per on or corporation occupying a subsidiary 

or controlling relationship or one of common, mutual or joint owners} ip or control to a l\1ember of Industry. 

For the purposes of this Code " Stone Yard " whose principal 

bu iness has to cl with the assembling, rrocessing, fabricating and 

sale of ckft tone hall be )nclude 1 in the Cl ft Stone Indu try. 

SECTIO:N 2. Th term "Member of Indn try " a used herein includes, but without limitation, any individual, partner hip, association, corporation or other form of enterpri ·e engaged in the Industry, either a an employer or on his or its own behalf. 

SECTION 3. The term "Natural Cleft Sto11=e" ( commonly called 

"flagstone") as used herein means any ro k except slate or granite 

having naturL 1 cleavage an l used for paving, curbing, building or 

other con truction purposes. 

SECTION 4. The term" Employee" mean nd jncludes anyone engag d in the Indu try in any capa ity receiving m1:,ensation for 

his services, irrespective of the nature or method of payment of such 

compen ation, except a Member of Industry. 

SECTION 5. The term "Employer" means and include any ne by 

whom any uch employee is employ cl or compen at d. 

SECTION 6. The terms "President", " \.ct", an l "Admini trat r" 

as used herein mvan re p tiv -ly the Presid nt of the United tate3, 

(150) 
151 

Title I of the National Industrial Recovery Act, and the Admin• 

istrator for Indu trial Recovery. 

SECTION 7. The term "Southeastern Region" shall include the 

tates of Alabama, Arkansas, Florida, Georgia, Kentucky, Loui iana, Mis issippi, Jorth Carolina, South Carolina, Tenne see and 

Virginia. 

SECTION 8. The term Northea tern R~ion" shall in lude that 

part of the United States north of the ;::;outhea tern Region and 

ea t of the ~1i i ippi River. 

SECTION 9. The t.erm "Districts ' hall 111ean a ·ection of a region 

in which one or more operating quarries are located as established by 

the Code Authority. 

ARTICLE III-Houns 

SECTION 1. If axim,itm H oit1·s.-N o employee , hall be permitted to 

work in excess of forty ( 40) hour. per week, averaged over three 

(3) month periods (such periods to be the regular quarterly periods 

of each year), or in exce of eight ( ) hour~ in any twenty-four 

(24) hour period, or in excess of forty-eight ( 48) hours in any one 

(1) week, or in excess of six (6) days in any seven (7) day period.1 

SECTIO 2. Exceptions as to H ours.- The maximum provisions as 

specified in Section 1 of thi Article III, shall not apply to the 

following: 

(a) Employees engaged in emergency maintenance or emergency 

repair work, involving breakdown or protection of life or property; 

provided, that in such pecial cases not less than one and one-half 

(11⁄2) times the normal wage rate for any employee so employed 

shall be paid for all hours worked in excess of eight ( 8) hours per 

day or forty-eight ( 48) hours per week. 

(b) Persons engaged in a managerial executive or supervisory 

capacities or in technical work "ho r eceive not less than Thirty-five 

Dollars ($35.00) per week; and to outside sales or sales service 

employees. 

( c) "\iV atchmen, who shall not be permitted to work in exce s of 

fifty-six (56) hours in any one (1) week, or six (6) days in any 

seven (7) day period. 

SECTION 3. E11iployment by Seve1·al E1nJJloyers.- o employer 

shall knowingly permit any employee to work for any time which, 

when totalled with that already performed with another employer 

or employers in this Industry or other trades or industries, exceeds 

the maximum permitted herein. 

SECTION 4. Any i\1ember of Indu try performing any work in the 

Industry, except in an executive, supen isory, managerial or professional capacity, shall conform to the maximum hour provisions in 

this Code. 

ARTICLE IV-WAGES 

SECTION 1. Minimu11i W ages.-N o employee shall be paid in .any 

pay period less than at the rate of 40¢ per hour, except that in towns 

and localities of le s than 2,500 population they shall not be paid 

at less than the rate of 38¢ per hour in the N orthea tern Region nor 

less than at the rate of 30¢ per hour in the Southeastern Region. 

1 See paragraph 2 of order appr oving this Code. 
152 

SECTION 2. Piec/> wo1·k OompensatiOr1r-Minimitm Wages.-This 

Article establishe--- a minimum rate of pay which ~hall apply, irrespective of whether an employee i ac ually compensated on a tim.e 

rate, piece-work, or other basis. 

ECTIO.i.- 3. Tr ag .~ Above the Minim,u1n.-Employers shall not redu ce th 0 rate of wa o-e for emplo ees wh ose rate are in excess of the 

:minimum rate of ,vao-e ( no with tan ding that the number of hours 

work d in ucl emp1 ·m nt may be hereby decrea ed) . Equitable 

ad ju.·tment ~ of wages with re pect to he minimum hall be made 

within thirty (30) days aft r the fie tive date of thi Code by each 

employer who ha ~ not her tofore made such adju tments under the 

National I ndu trial Recm-ery Act. In no e, ent hall hourly rates be 

r educed in making uch adju tm-ent ·. Within ixty (60) da) " after 

the effective date of thi Code each Iember of Indu try shall make a 

report of uch adjustment, whether made prior to or subsequent to 

the date of a pproral of this Code to the Code _ uthorit . . 

SEcTiox 4. Paym, nt of Waqes.-Each employer shall make payment of all waae in lawful currency or by negotiable check therefor, pa able on demand. These wage shall be exempt from any 

payment for pen ion , in ~urance o:r sick benefits other than those 

volun arily paid by the wage earner or required by law. Puy periods 

for wage . hall be at no o-reater interval than every semimonth,. and 

salarie a no greater int rval than every month. o employer hall 

withhold \';ao·e except _ otherwi e provided by law. 

SEcTio~- -. Handicapp d Pe-rs01i .-A per on whose earning cap acit - i limited ecau e of age, phy ical or mental handicap or other 

infirmity may be emplo} ed on light work at a wage below the minimum e tabli hed b thi ode if the employer obtains from the State 

tnthority, de ·iQTiated by the United States Department o:f Labor, a 

certificate authorizing such person' employment a.t such wages and 

for uch hours a hall b stated in the certificate. Such authority 

shall be guided by the in 1,ruction of the T nited States Tupartment 

of Labor in i suing ertificates to such person . Each employer shall 

file with th le uthority a li of all uch per ons employed by 

him, how:ing the ,--i;-ag paid to and the maximum hours of work 

for uch employee. 

~tRTI LE V-GEKERAL LAnon PROYISIONs 

..:,CTiox 1. liild L abor.- o person under eighteen (1 ) year of 

a~e . hall be employe 1 iL the In lu ·try in any capacity. In any 

State an employer h all be deemed to ha e complied with thi pro-

' i ion as to ug if he hall have on file a certificate or p rmit duly 

igned by th uthorit r in uch tate empow r(.)d to i ue employ-

. ment or age rtificate · or permit h ing that the emplo} ee- i of 

th re uire 1 ao-e. I 

ECTIOX ~ - JJroi1 i 0io,1. of tl1 i ct.-(a) Emplo ees shall have the 

ri n-ht o org,m ; an 1 bargain callee i ly throu o·h re pre entati,,es 

of their own h o in · and . hall b fr from th interfer nee, retraint or o r ion of en ployer of labor or th ir ao·ent , in the 

de ·ignation of . uch r Ir ntati, or in elf-organiza ion or in 

other con · rt cl actiYit.i . f r the purp s of collective bargaining 

or other mutual aid or pr t tion. 
153 

(b) o employee and no one eeking employment shall bo requir d as a condition of en ployment to join any company union or 

to refrain from joining organizing r a · isting a labor or 0 ·anization 

of hi own choo in o· and 

( c) Employers ·hall com pl with he maximum hour of labor, minimum rate f pay, and other conditic:l: of employment approved 

or pre cribed by th Pre ident. SECTION 3'. R classification of Eniployec:s.- o employer ..,hall reclassify employee· or dutie · of occupations performed or enga ·e in 

any other subterfuge for the purpo e of defeatino- the provisions of 

the Act or of this ode. 

SE TION 4. Standards for Safety ancl H ealtk.-Every employer 

shall provide for the afety and health of his employ e at the place 

and during the hour of t heir employment. Standard for safety 

and health hall be submitted by the ode Authority to th '\.dministrator for approval within three (3) months after the effective 

date of this Code. 

SECTION 5. tate Laws.- provi ion in this Code hall super ede 

any State or Federal law which impo es on employer 111.ore tringent 

r equirements as to age of employee , wage , hours of "\Tork, or as to 

safety, health sanitary or general working conditions, or insurance, 

or fire protection, than are imposed by this Code. 

SEcTio~ 6. Posting.-All employer hall po t and keep po ted 

complete copies of this Code and all amendments ther to in conspicuous places accessible to employees, and hall comply with all 

rules and r egulations relative to posting which may from time to 

time be prescribed by the Administrator. 

SECTION 7. Dismissal for 001nplaint.-.No employer shall dismiss 

or demote any employee for making a complaint or giving evidence 

with r e pect to an alleged violation of this Code. 

ARTICLE VI-OP.GA.1:rrzATIO Po"\TER , AKD D TIES OF THE ConE 

AUTHORITY 

SECTION 1. Organization and Oonstitution.-(a) A Code Authority 

is hereby e tabli hed consisting of four ( 4) vo,.ing member to be 

selected in the following manner : 

One member hall be the President of the Natural left Stone 

Association from time to time in office : 

One member hall be cho en by aid Association from each of the 

region of the Industry and one member shall be elec,.ed by and 

from non-members of said s ociation. The selection of all members to the Code uthority hall be by a fair and equitable method 

of election to be approved by the dmini trator. In the event that 

tne election of the Associations non-member representative on the 

Code Authority is not made within thirty (30) days after the effective date of thi ode uch member may be elected by the ~ dn1in- i trator. Any vacancy in ,.he Industry member hip of the Coile 

Authority shall be filled for the unexpired term in the same manner 

as the retirino- member wa cho en. 

(b) In eacli region there hall he selected such regional and 

district committee as may be required to a i t the Code Authority 

in the administration of the Code under such regulations as the 
154 

Code Authority may provide, subject to the approval o:f the 

Administrator. 

SECTION 2. In addition to the membership as above provided, there 

may be three (3 ) members, without vote and without compensation 

from the Industry, to be known as Administration members, to be 

appointed by the Administrator to serve for such terms as he may 

specify. SECTION 3. 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 membership, 

and (2) submit to the Administrator true copies of its articles of 

association, by-laws, rules and regulations and any amendments 

when made thereto, too-ether with such other information as to 

membership, organization and activities as the Administrator may 

deem necessary to effectuate the purposes of the Act. 

SECTION 4. In order that the Code Authority shall at all times bo 

truly representative of the Indu3try and in other respects comply 

with the provisions of the Act, the Administrator may prescribe 

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 appropriate modification in the method of selection of such Code 

Authority. 

SECTION 5. Nothing contained in this Code shall constitute the 

members of the Code Authority partners for any purpose. Nor 

shall any member of the Code Authority be liable in any manner 

to anyone for any act of any other member, officer, agent or employee of the Code Authority. Nor shall any member of the Code 

Authority, exercising reasonable diligence in the conduct of his 

duties hereunder, be liable to anyone for any action or omission to 

act under this Code, except for his own wilful malfeasance or 

nonfeasance. 

SECTION 6. If the Administrator shall at any time determine 

that any action of a Code Authority or any agency thereof may 

be unfair or unjust or contrary to the public interest, the Administrator may require that such action be suspended to afford an opportunity for investigation of the merits of such action and further 

consideration by such Code Authority or agency pending final action which shall not be effective unless the Administrator approves 

or unless he shall fail to disapprove after thirty (30) days notice to 

him of intention to proceed with such action in its original or modifi ed form. 

SECTION 7. Powers and Duties.-Subject to such rules and regulations as may be is.sued by the Administrator, and to the extent permitted by the Act, the Code Authority shall have the following 

further powers and duties: 

(a) To insure the execution of the provisions of this Code and 

to provide for the compliance of the Industry with the provisions of 

the Act. 

(b) To adopt By-Law , Rules and Regulations for its p~ocedure 

and for the administration of this Code. The Code Authority shall 

promptly furnish to the Administrator for his approval true copies 

of the By-Laws, Rules and Regulation adopted pur uant to this 

paragraph. 
155 

( c) To obtain from Members of the Indu try such tati tical information and r ports as are required for th a<lmini tration of this 

Code and to I rovide for ubmis ion by members of such stati tical 

information and r eports as the Adrnini trator may d em nece~ ary 

for the purpo es recited in ection 3 (a) of the Act, which information and rep or s hall be submi ·ted by member to such F deral 

and/or State agencies as the A.dmini trator 1nay de ·ignat ; provided, that nothing in this Cod ·ha 11 relieve any 1ember of the 

Industry of any exi ting obliffati ns to furni h r eports to any government agency. No inch ri lual report. ubmitted to the A<lmini ·-

trator and/or such government agencie as the Administrator may 

designate, shall be disclosed to any other :Member of the Indu try 

or any other party except such go, ernment agencies a may he dir ected by the Adrnini trator. 

( d) To u~e uch trade associations and other agencie a it de ms 

proper for the ca rrying out of an r of it. actiYities pr vided for 

herein, provided that nothing herein shall relieve the Code Authority of its duties or re pon ibilities under thic C de and tl at 

such trade as ociations and agencies shall at all time be ubject 

to and comply with the provision hereof. 

( e) To make r ec01nmendati n to the Administrator for the coordination of the administration of this Code with such other Co les 

if any, as may be related to or affect J\1embers of the Industry. · 

SECTION 8. It being found nece~sary to support the aclmini tration 

of this Code in order to maintain the standard of fair con1petition 

e tabli hed by this Code and to effectuate the policy of th 0 Act, the 

Code Authority i authorized: 

(a) To incur such r a onable obligation!:) a.· are nece sary uncl 

proper for the foregoing purpo e · and to meet such oblio·ations out 

of funds which 1nay be rai e 1 as her inaft r provided und which sl all 

be held in tru t for the purpo. ·es of this Co le· 

(b) T o submit to the Administrator for his approval subject to 

such notice and opportunity to be heard a ha may de m neces. ary, 

(1) an itemized budget of it e~timated expenses f or the foregoing 

purpo e , and (2) an 1 uitable ba ·i upon which the funds nece ·sary 

to upport such bndo·ct shall be ontributed by lUembers of the 

Indu try; 

( c) After such bud{)' t ancl bn_i. of contribution ha,e be-en a pproved by the Administrator to determine and secure equitable contribution as aboYe ·et forth by all ·uch 1\1ember of the Industry, an l 

to that encl, if nece ·a ry to institute le,~.ra procee ling therefor 1n it::; 

own name. 

SE 'l'ION 9. Each l\Iemb r of -+-h 0 Industry shall pay his or its 

equitable contribution to the- expens of the maintenanc of the Co e 

Authority determined a hereinaboYe provide l and ubject to rules 

nncl regulation pertaining th reto i~sue by the Admini trator. 

Only Memoors of the Indu try complyina with the Code and con- tribntino- to the expense~ of it r.dmini tration as hereinabove provided (unless luly exempte l from mukin(T. uch contributions) -hall 

be entitled to participate in th election of member of the Co le 

Authority or to receive the b 0 nefits of any of its voluntary activities 

or to make use of any emblem o:r in ignin. of the _ ational Recovery 

Administration. 
156 

SE TION 10. The Code Authority shall neither incur nor pay any 

oblio·ation ubstantiall in e:s:ce s of the amount thereof a. e timated 

in its approved budaet and ·hall in no event exceed the total amount 

contained in the approYed budget except upon approval of the Ad- mini trator; and no ub equent budget hall contain any deficiency 

item for expenditure in exce of prior budg t e timates except those 

which the Admini~trator ·hall have c:o approved. 

E TIOK 11. To recommend to the dmini trator any action or 

mea~ure deemer:1 ad,i able in luding further fair trade practice pro- vi ions to gm-ern Iember of the Indu tr} in their relations with 

each other or with other in lu trie · mea ures for indu trial I lan- nino- and tabilization f employment · and including modifications 

of this Code 11hich hall become effe ti, e a a part hereof upon ap- prm·al b, the Admini trator after uch notice and hearing as he may 

specify. 

E TION 12. To appoint a Trade Practice Committee which shall 

meet with the Trade Practice Committees appointed under uch other 

Code a may be related to the Indu try for the purpo e of formulat- ina fair trade practices to govern th relation hips between employers 

under thi Code and under uch other ode to the end that uch 

fair trade practice ma be propo ed to the Admini trator a amendment to thi Code an 1 such other Codes. ECTIOK 13. To define within region the nece sary di tricts requil'€ l to admini ter this Code and to e tabli h additional region if 

and 11hen quarrie are commercially de eloped therein, ubject to the 

approval of the Admini trator. 

ECTIO , 14. Any int€re ted party hall have the right of complaint 

to the Code Authority and a prompt hearino- and deci ion thereon 

under uch rule and regulations as the Admini trator may prescrib0 in re pect to any act of any agents or agency designated by 

the Code Authority to act in its behalf. 

ARTICLE II-ThADE PRACTI E RULES 

ECTION 1. The following trade practices are declared to con ti- tute unfair methods of com pebtion between Member of the Indu try and no 1ember of the Indu try shall use or eno-age in any 

of them either directly or indirectly through any officer agent or 

employee. Engaging in an one or more of these or any further 

trade practice pro vi ion which hereafter ma be e ta bli hed on recommendation by the ode Authority, appro-,ed by the Adminis- trator after uch hearing a he ma pre cribe, hall be deemed a 

iolation of thi Code: 

(a) No 11:ember of the I ndustry hall knowingly withhold from 

or insert in any quotation or invoice any statement that makes it 

inaccurate in any material particular. 

(b) o :Member of the Industr hall brand, or mark or pack 

any good in any manner which i intended to or does deceive or 

mislead purchasers with re pect to the brand, grade quality quantity origin size sub tance character nature fini h material, content or preparation of uch aood . ( ) To :Member of the Indu tr hall d fam a competitor by 

falsely imputing to him dishonorable conduct, inability t o perform 
157 

contracts, questionable credit standina or by other fal repr entation, or by fals ly di ·paraging th grade or quality of his good . ( d) Knowingly inducing or at+-empting to induce the breach of an 

existing ora,l or written contract between a c mpetitor and his 

cu tomer or ourc of upply, or interfering with or ob tructing the 

performance of any su h contractual duties between a :Member of 

Industry and his u tomer. 

( e) No Member of Industry shall publish or circulate unj u tified 

or unwarran ed threats of legal proceeding which tend to or have 

the effect of hara..,sin~ competitors or intimidating their cu. ·tamer . 

( f) No Member or the Indu try hall secretly offer or make any 

payment or allowance of a rebate, refund, commi sion, credit, unearned di count or exces · allowance whether in the form of money 

or otherwise, nor hall a :Member of the Industry secretly offer or 

extend to any customer any special service or privilege not extended 

to all cu tomer of the same class for the purpose of influencing a 

sale. 

(g) No M mber of the Industry shall give, permit to be given, or 

offer to give anything of value for the purpose of influencing or 

rewardina the action of any emplo3 ee, ag nt, or representative of 

another in relation to the business of the employer 0£ such employee, 

the principal of such ag,ent or the r epresented party, without the 

knowledge of such employer, principal or party. This provision 

shall not be construed to prohibit free and g neral distribution of 

articles commonly us cl for adverti ing except so far as such articles 

are actually u eel for commercial bribery as hereinabove clefinecl. 

(h) No Member of the Indu try shall enga<1e in th practice 

known as "bid peddling", which i defined as gi,ing or attempting 

to give inform:ltion, true or fal e, to a bidder regarding the estimate 

or bid of a competitor in order to gain or give an unfair advantag,:-. 

ARTICLE VIII-1\1.ARKETING PRACTICES 

SECTiON 1. Open Price Policy.-Ea"h l\1ember of the Indu try 

shall file with a confi lential and di interested agent of the Corle 

Authority or if none then ,vi .. h such an agent dn ignated by the 

Administrator, identified li ts of all of hi prices, discounts, rebates, 

allowances, and all other terms or conditions of sale, hereinafter in 

thi Article referred to as 'pri e t rms which lists shall completely 

and accurately conform to an l represent the individual pricing 

j ractices of aid niemb 0 r. Such Ii ts hall contain the price terms 

for all such tandur :l product of the Indu try as are sold or offered 

for sale by aid member and for uch non-standard l?roducts of said 

member as shall b designated by the Code Authority. Said price 

terms hall in the first in -tancc be filed within ten (10) days after the 

date of approval of this proYi ion. Price terms and r e ised price 

term hall become c-ffectiYe immediately upon receipt thereof by 

said agent. Immediately upon r ceipt thereof, saic1 agent shall by 

telegraph, or other equally prompt mu:tns notify said member of 

the time of such receipt. Such lists and revisions, together with 

the effective time thereof, hall upon re"eipt be immediately and 

simultaneously distributed to all Members 0£ the Industry and to 

all of their cu tomers who have applied therefor and have 

offered to defray the cost actually incurred by the Code Authority 
158 

in the preparation and distribution thereof and be available for 

inspection by any of their customers at the office of such agent. 

Said lists or revisions or any part thereof shall not be made available to any person until released to all :Members of the Industry 

and their customers, as aforesaid; provided, that prices filed in the 

first instance shall not be released until the expiration o-f the afore- said ten (10) day period after the approval of this Code. The 

Code Authority shall maintain a permanent file of all price terms 

filed as herein provided, and shall not destroy any part of such 

records except upon written consent of the Administrator. Upon 

reque t the Code Authority shall furnish to the Administrator or 

any duly designated agent of the Adminstrator copies of any such 

lists or revision of price term . 

SECTION 2. VVhen any ]\1ember of the Industry has filed any revision, uch member shall not file a higher price within forty-eight 

( 48) hours. 

SECTION 3. No Member of the Industry shall sell or offer to sell 

any products of the Industry, for which price terms have been filed 

pursuant to the provisions of this Article VIII, except in accordance 

with uch price terms. 

SECTION 4. No Member of the Industry shall enter into any agreement, understanding, combination or conspiracy to fix or maintain 

price terms, nor cause or attempt to cau e any Member of the Industry to change his price terms by the use of intimidation, coercion, or 

any other influence inconsistent with the maintenance of the free 

and open market which it is the purpose of this Article to create. 

SECTION 5. Each Member of the Industry who offers trade discounts to different classes of his trade, shall publish and file with 

the agency de cribed in Section 1 of this Article VIII, within fifteen (15) days after the effective date of this Code and whenever 

thereafter he makes any changes therein, a schedule of the definitions 

and qualifications by which he determines the classification and 

status of a customer in respect to such discounts. But this clause 

shall not be construed to require a classification of customers uniform 

for all Members of the Industry. 

SECTION 6. Members of the Industry who re()"ularly purchase a 

part or all of their requirements of cleft stone from quarriers and 

who publish a chedule of prices which they agree to pay for the 

different classes of the product, shall file such purchase price schedules with the agency de cribed in Section 1 of this Article VIII. 

Any Member of the Industry who sells all of his products to another 

member or members at price not lower than the prices in such a 

member's or members' purcha e price list shall be relieved of the 

requirements under Sections 1, 2 and 4 of this Article VIII. Such 

purchase prices shall not be lower than any emergency minimum cost 

which may be established under Section 8 of this Article VIII for 

the same products and during the ame period. 

SECTION 7. No Member of the Indu try shall, by mean of any 

secret rebate, special di count or by selling or offering for sale nonstandard grade , sizes, dimension or classifications of products, offer 

to, or purchase or sell any Industry product in violation of the applicable price terms or purchase price sch dule. 

SECTION 8. All Members of the Industry hall adopt and maintain 

such uniform bidding practices, credit and terms of payment and 
159 

other uni:form, fair and equitable sales practices as may be established by the Code Au hority with the approval of the Administrator. 

SECTION 9. The tandard of fair competition for the Indu try 

with reference to pricing practice are declared to be a follow~: 

(a) VVil:fully destructive price cutting is an nnfair m thod of ompetition and is forbidden. Any :Member of the InJu try or of any 

other Indu try or the custom rs of eith 0 r may at any time complain 

to the Code Authority that any filed price con titutes unfair competition as destructive price cuttin ·, imperilino" small enterprise or 

ten :ling toward monopoly or the impairment of code wages and 

working condition . The Code Authority shall within five (5) clays 

afford an opportunity to the member filing the price t an ,Yer such 

complaint and shall within fourte€n (14) clay make a ruling or 

adju tment thereon. If such ruling is not concurred in b. · either 

party to the complaint, all papers hall be referred to he Resoarch 

and Planning Division of NRA whi.ch shall render a report and 

recommendation thereon to the Administrator. 

(b) vVhen no declared emer~ency exist as to any given product, 

there is to be no fixed minimum basi for price . It is intended that 

sound co t estimating methods should b u ed and that con ideration 

should be given to co"ts in the determination of pricing policies. 

(c) ""\1/hen an emergency exists a to any giYen product, a]e below 

the stated minimum pi'ice of such product in violation of ection 9 

of this Article VIII, i forbi lden. 

SECTION 10. E1ne1·gency Prov'isions.-(a) If the Administrator, 

after inve tigation shall at any time find both (1) that an emergency 

has arisen within the Indu try adversely affecting small enterprises 

or wages or labor conditions, or tending toward monopoly or other 

acute conditions which t end to defeat th purposes of the ct; and 

(2) that the determination of the stated minimum price for a speci-. fled product within the Indu try for a limited perjod is nece:::.~ary to 

mitio·u.te the condition constituting such emergency and to effectuate 

the purposes of the Act, the Code Authority may cu.u e an impartial 

agency to investiaate co ts and to recommend to the Admini trator a 

determination of the stated minimum pri e of the product affected 

by the emergency and thereupon the Admini.-trator may proceed to 

determine uch stated minimum price. 

(b) , Vhen the Administrator hall have determined such stated 

minimum price for a specified product for a stated period, which 

price hull be rea onably calculated to mitigate the conditions of 

such emerg ncy and to effectn&te the purposes of the ational Industrial Recovery Act, he shall publich such price. Thereafter, during such stated period, no 1\1:ember of the Industry hall . ell such 

specified product at a net realized price below aid stated minimum 

price and anv such '<ale shall be deemed de tructiv-e price cutting. 

From time to time the Code Authority may recommend review or 

recon ideration, or the Administrator may cau e any determinations 

hereunder to be reviewed or recon idered and appropriate action 

taken . 

SECTION 11. Oost Finding.-The Code Authority hall cause to be 

formulated methods of cost finding and accounting capable of u e by 

all Members of th-e Industry and hall submit such method to the 

Administrator for review. If approved by the Administrator, full 
• 

160 

information con"erning such methods shall be made available to 

all 1\1emberc:: of the Industry. Thereafter, each Member of the Industry shall utilize ~uch methods to the extent found practicable. 

N othin_g herein contained shall be construed to permit the Code 

Authority, any agent thereof, or any J\fcmber of the Industry to 

suggest uniform a lclitions~ percentages or differentials or other uniform items of cost which are designed to bring about arbitrary 

uniformity of costs or prices. 

ARTICLE IX-:MomFICATION 

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

made subject to the r1ght of the Pre ·ident, in accordance with the 

provisions of Subsection (b) of Section 10 of the Act, from time 

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

regulation i~sued under Title I of aid Act. 

SECTI N 2. Such of the provi ions of this Code as are not required to be jncludecl herein by the Act may, with the approval 

of the Administrator, h~ modified or elim.inated in such manner as 

may be indic.ated by the needs of the public, by changes in cir cumstances, or by experience. All the provisions of this Code, unless 

so modified or eliminated, shall remain in effect until June 16, 19B5. 

ARTICLE X-:M:oNOPOLIEs 

No provision of this Code shall be so applied as to promote monopolies or monopolistic practices or to eliminate, oppress, or discriminate againc;-t small enterprises. · · 

ARTICLE XI-PRICE INCREASES 

~Thereas the policy of the Act to increase real purchasing power 

will be made more difficult of consummation if prices of goods 

and services increase as rapidly as wages, it is r ecognized that price 

jncreases except such as may be required to meet individual cost 

should be delayed, and when made such increases should, so far as 

possible, be limited to actual additional increases in the seller's 

costs. 

ARTICLE XII-E:FJmCTIVE DATE 

This Code shall become effective ten (10) days after its approval 

by the President. 

Approved Code No. 519. Registry No. 1039-12. 

0