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Registry No. 1003-1-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

ASPHALT SHINGLE 

AND ROOFING INDUSTRY 

AS APPROVED ON NOVEMBER 6, 1933 

BY 

PRESIDENT ROOSEVEL't 

n - WE DO_ OUR PARt 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

U NITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the S uperi n tenden t of Docume n ts, Washington, D.C. - - - - - - - - Price 5 cents 
... 

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

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

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass.: 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commerce Bui!(ling. 

Cha rleston, S.C.: Chamber of Commerce Building. 

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

Cleveland, Ohio : Chamber of Commerce. 

Da llas, Tex. : Chamber of Commerce Building. 

Detroit, l\Iich.: 2213 First National BaQk Building. 

Houston , Tex. : Chamber of Commerce Building. 

India napolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo. : 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louis,·ille, 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 P lume Street. 

Philadelphia, Pa. : 933 Commercial Trust Building. 

Pittsburgh, P a .: Cb ambar of Commerce Building. 

Portland, Oreg. : 215 Jew Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Franci co, Calif. : 310 Customhouse. 

Seattle, Wash. : 809 Federal Building. 

(li) 
L_ 

EXECUTIVE ORDER 

CoDE OF FAIR CoMPETITION 

FOR THF. 

A sPHALT SHINGLE AND RooFING MANUFACTURING INDUSTRY 

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

e;omplia.nce 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 Asphalt Shingle and Roofing Manufacturing 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 r ecommendations 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 sectipn 

3 of the said act have been met: 

NO,V, THEREFORE, I, I1""'ranklin 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 'V HITE HousE, 

N ove1nber 6, 1933. 

Approval recommended: 

HUGH s. JOHNSON' 

Adn~inistrator. 

FRANKLIN D. ROOSEVELT. 

(III) 

I 

19620°----188-167----33 
NOVEMBER 1, 1933. 

THE PRESIDENT' 

The White House. 

SIR: 1. This is a report on the CQde of Fair Competition for the 

Asphalt Shingle and Roofing Manufacturing Industry in the United 

States as revised after the hearing conducted in vVashington on 

September 21, 1933, in accordance with the provisions of theN ational 

Indus trial Recovery Act. 

PROVISIONS OF THE CODE AS TO HOURS, WAGES, AND 

GENERAL LABOR PROVISIONS 

ARTICLt-; III-HouRs 

2. This article provides that no en1ployee shall be permitted to 

work in excess of forty ( 40) hours in any seven (7) day period 

or eight (8) hours in any twenty-four (24) hour period or more 

than six (6) days in any seven (7) day period, except that such 

hourly and daily limitations do not apply to employees engaged in 

professional, executive, administrative or supervisory work who receive compensation in excess of thirty-five ($35.00) dollars per week, 

or· to outside salesmen. Further, such hourly and daily limitations 

do not apply to employees on emergency maintenance or emergency 

repair work involving breakdowns or the protection of life or property. Further, during periods of seasonal peaks, employees may be 

permitted to work in excess of forty ( 40) hours in any seven (7) 

clay period or eight (8) hours in any twenty-four (24) hour period, 

provided that during any thirty (30) day period the number of hours 

of employment averages not more than forty (40) hours in any 

seven (7) day period. 

Employees engaged as watchmen may be permitted to work not 

in excess of fifty-six (56) hours in any seven (7) day period a;nd 

employees engaged solely as firemen in manufacturing operations 

may be permitted to work not in excess of forty-four ( 44) hours in 

any seven (7) day period nor eight (8) hours in any t\\enty-four 

(24) hour period. 

Overtime payment of not less than one and one half (111z ) times 

the normal rate is provided for uch hours worked in excess of the 

maximum number of hours provided by the Code. 

ARTICLE IV-WAGES 

3. The minimum hourly r ate of com pen ation of forty-five ($0.45) 

cents per hour is provi led :for employees in the P acific Coast Section 

and forty ($0.40) cent per hour in the N ort_hern Section and thirtyseven and one half ($0.375) cents per hour In the Southern Section 

except that accounting, clerical, or office employees may be paid at 

(IV) 
v 

not less than the rate of fifteen ($15.00) dollars per week. It is also 

provided that office boys and office girl may be paid not less than 

eighty (80% ) percent of the minimum weekly rate for the accounting, clerical, or office employees, but the total number of such office 

boys and girls paid less than the rate of fifteen ($15.00) dollars per 

week is limited not to exceed three (3% ) percent of the total number 

of accounting, clerical, or office employees employed by any one employer during a calendar month. A minimum wage of thirty-five 

($0.35) cents per hour has been provided for female employees other 

than female accounting, clerical, or office employees, but this provision is not to be considered as a discrimination by reason of sex, and 

in any case where female employees do the same work or perform 

substantially the same duties as male employees the minimum rate 

of pay applicable to male employees is likewise applied to female 

employees. 

This article establishes a minimum rate of pay, regardless of 

whether the employee is compensated on a time rate, piecework, or 

other basis. 

This article also provides for an equitable adjustment of all wage 

rates above the minimum. 

ARTICLE V-GENERAL LABOR PROVISIONS 

4. This article provides that no person under sixteen ( 16) years of 

age shall be employed in the industry, nor anyone under eighteen 

(18) vears of age in manufacturing operations. 

Th:ls article embodies subparagraph (a) of section 7 of title I of 

the National Industrial Recovery Act. 

This article further provides that employers shall not reclassify 

employees or the duties of occupations so as to defeat the purpose 

of the act, and that each employer shall post adequate notices that 

each employee may, at his request, obtain, without charge, a copy of 

the particular code applicable to his work. 

ECONOMIC EFFECT OF THE CODE 

5. The members of this industry manufacture felt base (made of 

organic or inorganic fibres), asphalt shingles, siding and roofings, 

roll roofings (including cap and base sheets and house sheathings), 

starting strips, tarred felt, and asphalt felt. 

The report of the Research and Planning Division indicates that, 

according to the Census of Manufactures, there were eighty-three 

(83) establishments in 1931 manufacturing the products of this industry and in 1933 there were sixty-five (65) establi hments operating 

to a greater or lesser extent. During this interval it is apparent that 

eighteen (18) establishments abandoned operations. The number of 

factory employees as of July 1, 1933, excluding those engaged in the 

tar and felt industry, was 5,702, or about seventy-one (71% ) percent of the 1928 total. The capital investment in this industry has 

shrunk from about sixty-eight ($68,000,000.00) million dollar , as of 

January 1, 1929, to about fifty-seven ($57,000,000.00) million dollars, 

as of January 1, 1933, in accordance with this same report. 

Article III of the code provides for a maximum of forty ( 40) 

hours in any seven (7) day work period. If the 1933 base is used as a 
VI 

level of production (278,000 man-hours), a forty ( 40) hour work 

week should absorb approximately 6,950 employees, or fifteen (15%) 

percent more than the number employed in 1929. 

In accordance with the report of the Research and Planning Division, approximately nineteen (19%) percent of the factory 

employees of thirty-three (33) reporting establishments (reporting 

about fifty (50% ) percent of the total in 1933) received less than 

thirty-five ($0.35) cents per hour. Article IV of the code establishes 

a minimum of forty-five ($0.45) cents per hour in the Pacific coast 

section, forty ($0.40) cents for the northern section and thirty-seven 

and one half ($0.375) cents for the southern section. 

FINDINGS 

The Admini trator finds that : 

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

mandatory 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 

Asphalt Shingle and Roofing 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 policy o:f 

title I of theN ational Industrial Recovery Act. 

It is recommended, therefore, that this code be adopted. 

Respectfully, 

HuGH S. JoHNSoN, 

Administrator. 
CODE OF FAIR COMPETITION FOR THE ASPHALT SHINGLE 

AND ROOFING 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 Asphalt Shingle and Roofing Manufacturing Industry, and upon approval by the President shall be the 

standard of fair competition for such industry and· shall be binding 

upon every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term "industry" as used herein includes the producing in the United States, and the selling by the producer of the 

products or any of them. 

SEc. 2. The term "employee" as used herein includes anyone 

engaged in the industry in any capacity receiving compensation 

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

such compensation. 

SEc. 3. The term "employer " as . used herein includes anyone in 

the industry by whom any such employee is compensated or employed. 

SEc. 4. The term" member of the industry" as used .herein includes 

anyone engaged in the industry as above defined, either as an 

employer or on his own behalf. 

SEc. 5. The term " member of the Code " as used herein includes 

any member of the Industry who shal'l expressly signify assent to 

this Code, in the manner provided in Section 2 (b) of Article VI, 

hereof. 

SEc. 6. The term " products " as used herein means and includes 

felt-base (made of organic or inorganic fibres), asphalt shingles, 

sidings and roofings, roll roofings (including cap and base sheets 

and house sheathing), starting strips, tarred felt, and asphalt felt. 

SEc. 7. The term " trade " as used herein shall mean all channels 

of distribution of the products. 

SEc. 8. The term" the Institute" as used herein means the Asphalt 

Shingle and Roofing Institute. 

SEc. 9. The terms "President", "Act", and "Administrator" as 

used herein shaH mean respectively the President of the United 

States, the National Industrial Recovery Act, and the Administrator 

of Title I of said Act. 

SEc. 10. The term "United States" as used herein means all of 

the territory of the United States of America on the North American Continent and the Territory of Hawaii. 

SEc. 11. The term " Northern Section " as used herein means: 

Maine, New Hampshire, Vermont, JYiassachusetts, Rhode Island, 

(1) 
2 

Maryland, Connecticut, New York, New Jersey, P ennsylvania, Delaware, Virginia, \Vest Virginia, Minnesota, Ohio, I{entucky, Michigan, Indiana, Nebraska, Kansas, 1Visconsin, Illinois, :M_issouri, Iowa, 

North Dakota, South Dakota, the State of Montana, except the 

Counties west of and including Hill, Chouteau, Fergus, Petroleum, 

Mussel Shell, Yellowstone, Stillwater, and Park; the State of Wyoming, except the Counties West of and including Big Horn, Washakio, Hot Springs, Park, Yello\\stone National Park, Teton, Sublette, 

and Albany; and the State of Colorado, except the Counties West 

of and including Rio Blanco, Garfield, Eagle, Lake, Chaffee, Gunnison, Ouray, San Miguel, Dolores, and Montezuma. 

SEc. 12. The term " Southern Section " as used herein means : the 

State of New Mexico, except the Counties of McKinley, Cathon, 

Hidalgo, and Luna; the States of North Carolina, Tennessee, Arkansas, Oklahoma, Texas, and the· States south thereof. 

SEc. 13. The term "Pacific Coast Section" as used herein means 

the territory vV est of the Northern and Southern sections as above 

defined, including the territories of Alaska and Hawaii. 

ARTICLE III- HouRs 

SEcTION 1. No employee shall be permitted to work in excess of 

forty (40) hours in any seven (7) day period, or eight (8) hou rs 

in any twenty-four (24) hour period, nor more than six (6) days in 

any seven (7) day period, except that such hourly and daily limitations shall not apply to: 

(a) Employees engaged in professional, executive, administrative 

or supervisory work who receive compensation exceeding thirty-five 

($35.00) dollars per week, or to outside salesmen; 

(b) Employees on emergency maintenance or emergency repa-ir 

work involving breakdowns or the protection of life or property, 

but jn any such special case at least one and one third (11/3 ) times the 

normal rate shall be paid for hours worked in excess of the maximum 

number of hours herein provided: 

(c) Periods of seasonal requirements during which employees 

may be permitted to work in excess of forty (40) hours in any seven 

(7) day perio 1 or eight (8) hours in any twenty-four (24) hour 

period provided that during any thirty (30) day period the number 

of hours of employment shall average not more than the maximum 

number of hours for uny seven (7) day period herein provided; and 

provided, further, that in any such cases employees shall be paid 

not less than one and one half (11/ 2 ) times the normal rate for any 

such hours worked in excec::s of the maximum number of hours herein 

provided : 

( c1) Employees engaged as watchmen who may be permitted to 

work not in excess of fifty-six (56) hours in any seven (7) day 

period; 

(e) Employees engaged solely as firemen in manufacturing operations who may be permitted to work not in excess of forty-four ( 44) 

hours in any seven (7) day period and not in excess of eight (8) 

hours in any twenty-four (24) hour period. - _ 

SEc. 2. No employer shall knowingly permit an employee to work 

for one or more employers for a total number of hours or days in 

the aggregate exceeding the foregoing limitations. 
3 

ARTICJ,E IV-WAGES 

SECTION 1. Subject to the provisions of Section 3 of this Article 

IV, no employee shall be paid at less than the hourly rate provided 

as follows: 

(a) For employees in the Pacific Coast Section, at $0.45 per hour; 

(b) For employees in the Northern Section, at $0.40 per hour; 

(c) For employees in the Southern Section, at $0.375 per hour; 

except that accounting, clerical, or office employees may be paid at 

not less than the rate of fifteen dollars ($15.00) per week; provided, 

however, that office boys and office girls may be paid not less tb.an 

eighty (80) per cent of such minimum weekly rate, but the total number of such office boys and girls paid at less than the rate of fifteen 

dollars ($15.00) per week by any employer in any calendar month 

shall not exceed three (3) per cent of the total number of such employees employed by any such employer during such calendar 

month. 

SEc. 2. This Article establishes a minimum rate of pay regardless 

of whether an employee is compensated on a time rate, piecework, or 

other basis. 

SEc. 3. The minimum wage which may be paid by employers to 

any female employee, other than female accounting, clerical, or offi ce employees, shall be at the rate of thirty-five cents ($0.35) per 

hour; provided, that this provision shall not in any way be considered 

as a discrimination by reason of sex; and provided, further, where 

in any case female employees do the same work or perform substantially the same duties as male employees the minimum rate of pay 

applicable to male employees shall likewise apply to female employees. 

SEc. 4. Employers shall not reduce the rates of wages for employees 

whose rates are now in excess of the minimum rate of wages he ... ein 

provided (notwithstanding that the number of hours worked in n~h 

employment may be hereby decreased) and where in any case an 

employer has not increased the rates of wages for such employees 

prior to the effective elate of this Code by an equitable readjustment 

of all such wage rates such employer shall readjust all such wage 

rates. This provision shall be interpreted in the same n1.anner that 

paragraph 7 of the President's Reemploy1nent Agreement has been 

interpreted by the Administrator in Interpretations Nos. 1 and 20. 

ARTICLE V-GENERAL LABOR PROVISIONS 

SEcTION 1. No person under sixteen ( 16) years of age . hall be 

employed in the industry, nor anyone under eighteen (18) years of 

age in manufacturing operations. In any State an employer shall 

be deemed to have complied with this provision if he shall have on 

file a certificate duly is ued by the authority empowered to issue 

employment certificates showing that the employee is of the required 

age. 

SEc. 2. Employees shall have the right to organize and bargain 

collectively through representatives of their own choosing, and shall 

be free from the interference, r estraint, or coercion of employers of 
4 

labor, or their agents, in the designation o£ such representatives or 

in self-organization or in other concerted activities £or the purpose 

of collective bargaining or other mutual aid or protection. 

SEc. 3. No employee and no one seeking employment shall be 

required as a condition of employment to join any company union, 

or to refrain from joining, organizing, or assisting a labor organization of his own choosing. 

SEc. 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. 

SEc. 5. Within each State this Code shall not supercede any laws 

of such State imposing more stringent requirements on employers 

regulating the age of employees, w.ages, hours of work, safety or 

health, fire or general working conditions than under this Code. 

SEc. 6. Employers shall not reclassify. employees or duties of occupations performed by employees so as to defeat the purpose of 

the Act. 

SEc. 7. Each employer shall post adequate notices that each employee may, at his request, obtain without charge a copy of the 

particular Code applicable to his work. 

ARTICLE VI-ADMINISTRATION 

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

hereby constituted to cooperate with the Admistrator in the administration of this Code. 

SECTION 1. Organization and constitution of the Code Authority: 

(a) The Code Authority shall consist of five (5) individuals, or 

such other number .as may be approved from time to time by the 

President, to be selected as hereinafter set forth. The President, in 

his discretion, may appoint not more than three (3) additional 

members, without vote and without expense to the industry to represent the President or such groups or interests as he may designate. 

(b) All voting members of the Code Authority shall be selected 

from members of the Code and shall be elected by a two-thirds vote 

of all members of the Code. Three (3) of said members shall be 

selected from members of the Institute and two (2) of said members 

shall be selected from nonmembers of the Institute at the time of the 

approval of the Code by the President. 

(c) 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, 

bylaws, 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 effectuat,e 

the purpose of the Act. , (d) In order that the Code Autqority shall at all times be tru~y . 

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 appropriate 
5 

modification in the method of selection of the Code Authority; provided, that no such modification shall permit ·anyone not a member 

of the industry to become a voting member of the Code Authority. 

(e) The Code Authority may adopt its own rules of procedure and 

may delegate its authority, or some part thereof, to such agencies 

or committees as it may select, but all contac.ts with the Adminisrtator 

shall be by the Code Authority. A committee of three (3) members 

of the Code selected by a mn.j ority vote of the members of the Code 

located in the Pacific Coast Section shall be appointed by the Code 

Authority to administer the provisions of the Code in the Pacific 

Coast Section. 

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

powers to the extent permitted by the Act, subject to the right of 

the Administrator on review to disapprove or modify any action 

taken by the Code Authority: 

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

industry informed as to the observance or nonobservance of the 

Code, and as to whether the m.ei:nbers of the industry are taking 

appropriate steps to effectuate the declared policy of the Act, the 

Code Authority shall report to the Administrator at such times 

and concerning such conditions in the industry as he may from time 

t o time require and each member of the Industry shall file with 

the Code Authority, such certified reports with repect to wages, hours 

of labor, conditions of employment, number of employees, and other 

matters as may be deemed pertinent by the Code Authority, or by 

the Administrator, to the proper administration of the Code. 

(b) :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 signing and 

delivering to the President of the Institute a letter in the form as set 

forth in Schedule "A" annexed hereto and by assenting to and complying with the requirements of this Code and sustaining their 

reasonable share of the expenses of its administration. The reasonable share of the expenses of administration shall be determined by 

the Code Authority on the basis of volume of business and/ or such 

other factors as may be deemed equitable to be taken into 

consideration. - (c) All confidential information of any nature which may be requested by the Code Authority shall be collected through an agency 

or agencies selected by the said Code Authority and such information 

shall be kept confidential by the agency, except \\hen required by 

the Code Authority for the proper administr ation of the Code, and with the further exception that all such information shall be 

fully available to the Administrator at all times. 

(d) The Code Authority shall designate an agent or agents, not 

members of the industry, to investigate com.plaints of violations of 

the Code. The members of the Code shall facilitate such inve tiga- tions by producing all pertinent data including correspondence books 

and accounts relating to alleged violations for examination by such 

authorized agent and by furnishing relevant information. All such · 

pertinent information shall be kept confidential by the agent or 

agents except that, in the event of any such violation being substantiated, the Code Authority shall be informed and may present evi-
6 

dence thereof to the Administrator, or to such department, agency, 

or judicial branch of the Government, as he may designate. If, upon 

such investigation, any complaint of a violation of the Code shall 

be substantiated in any material respect, the member of the Code 

guilty of such violation shall pay the cost of the investigation, otherwise the cost shall be borne by the complainant member of the Code. 

(e) The Code Authority shall make a study of conditions in the 

Industry and may thereafter, from time to time, make such recommendations to the Administrator as it deen1s desirable to further 

the policies of the Act with respect to, but without limitation: 

( i) Uniform cost accounting; 

( ii) Limitation of production; 

(iii) Li1nitation of new equipment; 

( i v) Indus try merchandising plans; 

( v) Simplification and standardization; 

(vi) System of exchange of credit information; 

(vii) Inequalities affecting the stability of the Industry; 

which recommendations, after such notice and hearing as the Administrator may specify, shall become effective on approval by the 

Administrator or the President, with the same force and effect as 

if originally 1nade a part hereof ; provided, however, that no such 

recommendations shall be made by the Code Authority unless and 

until the members of the Code in the Section to which such recommendations are applicable, have assented thereto. Such assent shall 

be by a two thirds vote in either the Northern or Southern Section, 

and by a majority vote in the Pacific Section. 

(f) Any interested party shall have the right of complaint to 

the Code Authority and a prompt hearing and decision thereon, 

under such rules and regulations as it shall prescribe, in respect to 

any act of any agent or agency designated by the Code Authority 

to act in its behalf. 

(g) Any interested party shall have the right to appeal to the 

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

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

by the Code Authority. 

(h) In addition to the information required to be submitted to 

the Code Authority, there shall be furnished to government agencies 

such statistical information as the Administrator may deem necessary 

for the purposes recited in Section 3 (a) of the Act. 

( i) Nothing contained in the Code shall be deemed to constitute 

any of the members thereof partners for any purpose. No member 

of the Code shall be liable in any manner to anyone for the act of 

any member or agent of the Code Authority performed pursuant to 

the provisions of this Code. No member of the Code and no member 

or agency of the Code Authority shall be liable to anyone or in any 

manner other than as provided in the Act, or in the Code, for any act 

performed in accordance with, or for any failure to act required by, 

the provisions of the Code. 

ARTICLE VII-PuBLICITY OF PmcEs, TERl\IS, AND CoNDITIONS oF SALE 

SECTION 1. Within ten (10) days after the effective date of this 

<;Jode each member of the Industry shall publish his prices, terms, 
7 

and conditions of sale on all his products to his trade, each class of 

trade being furnished with the price , terms, and conditions of sale 

affecting each such class of trade in the territory to which such 

prices, terms, and conditions of sale apply. Coincident with such 

publication, each member of the Industry shall file with the Code 

Authority and the Code Authority shall immediately distribute to 

all members of the Industry, a complete schedule_ of such prices, 

terms, and conditions of sale. 

SEc. 2. In the event of any change by any member of the Industry 

in any price, term, or condition of sale, he shall file full and complete 

copies of every such change with the Code Authority within such 

periods as may have been designated by the Code Authority but not 

exceeding five ( 5) days in advance of the effective date of any ~uch 

change. Copies thereof shall be immediately distributed by the Code 

Authority to the members of the Industry. On the effective date of 

any such change, the Industry member shall publish the same to the 

trade concerned and coincidentally file such information in the office 

designated by the Code Authority for immediate distribution by the 

Code Authority io the members of the Industry. 

SEc. 3. No member of the Industry shall sell, pay a rebate, or 

allow a deduction at any time to any person except in accordance 

with his prices, terms, and conditions of ale then in effect and published in the manner described herein. Each member of the Industry 

shall have the right, individually, to publish new price , terms, and 

conditions of sale, from time to time, as herein provided. 

ARTICLE VIII-PUBLICITY oF TR DE QuALIFICATIONS 

SECTION 1. vVithin ten (10) days after the effective date of this 

Code, each member of the Industry shall publish to his trade and 

file with the Code Authority all qualifications which have been 

established by him to determine the prices, term , or conditions of 

sale made applicable by him to the different cla es of his trade, 

for products covered by this Code. H e shall publish to the trade 

and file promptly with the Code Autho·rity any changes made by 

him in such qualifications and any additional qualifications. 

Each member shall file at such times, in such manner and at such 

places as may be designated by the Code Authority, the names and 

locations of hi trade, grouped according to his own stated qualifications then in effect. The names and locations so filed shall be available to the trade and to the members of the Industry, provided, that 

the name of the manufacturer submitting any such names and locations shall not be disclosed without consent except to the extent 

necessary to prevent violations of this Article. 

ARTICLE IX-TRADE PRACTICES 

The following practices constitute unfair methods of competition 

for members of the Industry and are prohibited: 

SECTION 1. False Marking or Branding.-The false marking or 

branding of any product of the Industry which has the tendency 

to mislead or deceive customers or prospective customers, whether 

as to grade, quality, quantity, substance, character, nature, origin, 
8 

size, finish , or preparation of any product of the Industry, or 

otherwise. 

SEc. 2. Misrepresentation 01' False or .. ?l!lisleading Advertising.-

The making or knowingly permitting to be made or published any 

false, materially inaccurate, or deceptive statement by way of advertisement or otherwise, whether concerning the trade, quality, quantity, sub tance, character, nature, origin, size, finish, or preparation 

of any product of the Industry, or the credit terms, v~lues policies, 

or services of any member of the Industry, or otherwise, having the 

tendency or capacity to mislead or deceive customers or prospective 

customers. 

SEc. 3. Oom1nercial B1·ibery.- Directly or indirectly to give or 

permit to be given, or offer to give, money or anything of value to 

agents, employees, or representatives of customers or prospective 

customers, or ·to agents, employees, or representatives of competitors' customers or prospective customers, without the knowledge of 

their employers or principals, as an inducement to influence their 

en1ployers or principals to purchase or contract to purchase from the 

makers of such gift or offer, or to influence such employers or 

principals to refrain from dealing or contracting to deal with 

competitors. 

SEc. 4. I nterf erences with Contractual R elations.- :Maliciously 

inducing or attempting to induce the breach of an existing contraet 

between a competitor and his customer or source of supply, involving 

the purcha e of specific quantities of the products and/ or their component parts or materials, or interfering with or obstructing the 

performance of any such contract. 

SEc. 5. Secret R ebates.- The secret payment or allowance of 

rebates, refunds, commissions, credits, or unearned discounts, whether 

in the form of money or otherwise, or the secret extension to certain 

purchasers of special services or privileges not extended to all purchasers on like terms and conditions. 

SEc. 6. Giving of Prizes, Pre1niums, or Gifts.- The offering or 

giving of prizes, premiums, or gifts in connection with the sale of 

products, or as an inducement thereto, by any scheme which involves 

lottery, misrepresentation, or fraud. 

SEc. 7. Def amation.- The defamation of competitors by falsely 

imputing to them dishonorable conduct, inability to perform contracts, questionable credit standing, or by other false representations 

or by the false disparagement of the grade or quality of their goods. 

SEc. 8. Threats of Litigation.- The publishing or circularizmg of 

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. 

SEc. 9. Espionage of Oompetitors.-Securing confidential information concerning the business of a competitor by fal e or misleading 

statement or r epresentation, by a false impersonation of one in 

authority, by bribery, or by any other unfair method. 

SEc. 10. To sell f or export unless the buyer has agreed not to resell 

the products within the United States. 

SEc. 11. Othe1· Unfai?· Practices.-Nothing 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 
9 

practice or method is unfair, providing that such adjudication or 

hol'ding is not inconsistent with any provision of the Act or of this 

Code. 

ARTICLE X-GENERAL 

SECTION 1. No pro vi ion of this Code hall be so applied as to 

permit monopolies or monopolistic practices, or to eliminate, oppress, 

or discriminate against small enterprises. 

SEc. 2. Corporations shall be considered to be affiliated to any corporate member of the Industry (hereinafter de cribecl a. "the parent 

corporation ") which owns a majority of the outstanding voting capital stock of the other. Any such parent corporation shall be responsible for the observance by any affiliated corporation of all the provisions of Articles ·III, IV, V, VII, VIII, IX, X, and XII of this 

Code with respect to the production and/ or sale of the products 

covered by this Code, provided, that in the event of the provisions 

of Articles VII and VIII being observed by any such affiliated corporation of such parent corporation, then the parent corporation 

need not comply with the Publicity requirements of Article VII with 

respect to prices, term , and conditions of sale made to such affiliated 

corporation. 

SEc. 3. Nothing contained in this Code shall be construed as prohibiting any member of the Industry from exercising all its and/ or 

their existing lawful patent rights, or as requiring any member of 

the Inclu try to do any act in conflict with the terms of any exi ting 

valid patent licensing agreement. 

SEc. 4. Arti~les VII, VIII, and Article XII shall not apply to 

products exported from the United States. 

ARTICLE XI-MoDIFICATION 

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

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

provi ·ions of subsection (b) of Section 10, of the Act, from time to 

time to cancel or modify any order, approval, license, rule, or regnlation issued under Title I of said Act. 

SEc. 2. By presenting this Code the member · of the Industry assenting thereto do not thereby consent to any modification there.qf 

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

modification. 

SEc. 3. The provisions of the Code shall remain in effect unless 

and until so modified or eliminated, or until the expiration of the 

Act; namely, June 16, 1935, or sooner, if the Pre ·ident shall, by 

proclamation, or Congress shall, by joint resolution, declare the 

emergency recognized by Section 1, Title I , of the Act ended. 

ARTICLE XII-SELLING BELow CosT 

SEcTION 1. It shall constitute a violation of this Code for any 

member of the Indu try to sell any product at a net price which shall 

be below the said member's "direct cost." Such "direct cost" shall 

include the sum of the following items chargeable to the operation o:£ 
10 

such member's business in conformity with sound accounting practice, during the preceding calendar month: - - -

(A) Direct raw material cost (inclusive of transportation and 

shrinkage), plus 

(B) Direct labor cost, plus 

(C) :Nian ufacturing burden ( inclusive of. power and steam, factory overhead, maintena:nce expense, technical control, factory warehouse, and factory shipping charges), plus 

(D) Fifteen (15) percent of the "Total Manufactured Cost" 

(i.e., the sum of the items "A" plus "B " plus "C ") ; 

provided that depreciation, taxes, insurance, reserves of ·any character, interest on investment, selling and administrative expenses, and 

prior operating losses, likewise interest charges on funded or other 

debt shall not be included in " Manufacturing Burden "; and provided, further, that any member of the Industry may sell below 

his own " direct cost ;, under the following circumstances: 

(a) to meet competition on prices established on products of competing grade and quality iiled by another member of the Industry 

pursuant to Article VII hereof, and not directly or indirectly investigated by the party desiring to meet such competition, or 

(b) to meet competition in violation of this rule concerning which 

he has made complaint to the Code Authority, or any authorized 

agency thereof, but only pending action thereon. 

ARTICLE XIII-EFFECTIVE DATE 

SECTION 1. This Code shall become effective on the second Monday 

after its approval by the President. · 

ScHEDULE A 

The PRESIDENT, 

Asphalt Shingle and Roofing Institute, 

2 West 45th Street, New York, New Y01·Tc. 

DEAR SIR: The undersigned, desiring to become a member of the Code of 

Fair Competition of the Asphalt Shingle and Roofing Manufacturing Industry, 

a copy of which is annexed hereto marked "A", hereby assents to all of the 

provisions of said Code. 

In consideration of the benefits conferred by such membership the undersigned agrees to become a member of the Code and agrees to be bound by all 

of the provisions thereof, effective as of the date on which the Code shall have 

been approved by the President of the United States, or as of the date on which 

this letter shall have been delivered, if delivery thereof shall have been maJe 

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

the President. 

Very truly yours, 

0