Approved Code No. 109 Registry No. 1037-1-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

CRUSHED STONE, SAND AND 

GRAVEL, AND SLAG INDUSTRY 

AS APPROVED ON NOVEMBER 10, 1933 

BY 

J A '' 

PRESIDENT ROOSEVELr 

WE 00 OUR PART 

1. Executive Order I 

2. Letter of ransmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the Superintendent oi Documents, Washin2ton, D.C. - - - - - - - - Price 5 cents 
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Printing Office, Washington, D.C., and by district offices of the Bureau of 

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DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

Buffalo, N.Y. : Chamber of Commerce Building. 

Charleston, S.C. : Chamber of Commerce Building. 

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

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, Mich.: 2213 First National Bank Building. 

Houston, Tex.: Chamber of Commerce Building. 

Inclianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, l\Io.: 1028 Baltimore Avenue. 

Los Angele;, Calif. : 116~ South Broadway. Lou lsville, Ky.: 408 Federal Building. 

Memphi , Tenn. : 229 F ederal Building. 

l\linn a11olis, l\Iinn. : 213 Felleral Building. 

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

New York, :N.Y.: 734 Customhouse. 

Norfolk, i'a.: 406 East Plume Street. 

Pbiladelphin, Pa.: 933 Commercial Trust Building. 

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Portland, Oreg. : 215 1 Tew Post Ofl:ice Building. 

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San FranC'isco. C~lif.: 310 Customhouse. 

Seattle, wn-h.: 809 Federal Building. 

(Ill 
EXECUTIVE ORDER 

CODE OF FAIR COMPETITION FOR THE CRUSHED STONE, SAND AND 

GRAVEL, AND SLAG INDUSTRIES 

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

compliance with the provisions of title I of the National Industrial 

Recovery Act, approved June 16, 1933, for my approYal of a Code 

of Fair Competition for the Crushed Stone, Sand and Gravel, and 

Slag Industries, 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 recom1nendations and findings with respect thereto, and the Administrator 

having found that the said code of fair competition complies in all 

respects with the pertinent provisions of title I of said act and that 

the requirements of clauses (1) and (2) of subsection (a) of section 3 

of the said act ha Ye been met : 

NO\V: THEREFORE, I, Franklin D. Roosevelt, President of the 

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

the National Industrial Recovery Act, approved June 16, 1933, and 

otherwise, do approve the report and recommendations and adopt 

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

fair competition be and it is hereby approved. 

THE vV HITE HousE, 

...__ N ove1nber 10, 1933. 

Appro-,al recommended : 

HUGH s. JOHNSON' 

Administrator. 

FRA KLIN D. ROOSEVELT. 

(ill) 

201s2°-1ss- 196-33 
The PRESIDENT, 

NOVEMBER 3, 1933. 

The White HoilSe. 

Sm: This is a report on the proposed Code of Fair Competition 

for the Cru hed Stone, Sand and Gravel, and Slag Industries, and on 

the public hearing conducted thereon in 1Vashington, D.C., on Augu t 

28 and 29, 1933, in accordance with the provisions of the National 

Industrial Recovery Act. 

GENERAL STATEMENT 

Crushed stone, sand and gravel, and slag, when grouped together, 

rank high in total value among mineral products in the United 

States, being exceeded in 1931 only by bitmninous coal, anthracite 

coal, and pig iron. In the peak year of 1929 the products of the 

three industries represented a total value of $209,000,000, and some 

40,000 wage earners were employed. The value ( estimated) of these 

products fell off to $90,000,000 in 1932, while the present number of 

workers in the industries is about 50 percent of the number of 1929 

employees. 

HOURS AND WAGES 

A 40-hour week is established, with minimum wages varying from 

40¢ per hour in the northern states to 25¢ per hour in the deep south. 

I n an intermediate zone the minimum is to be 30¢ per hour. 

For certain pecial classes of employees, comparatively few in 

number, a maximum 48-hour week is permitted. All workers paid 

on the hourly basis are to receive time and one third when the 

prescribed weekly maximum hours are exceeded. 

Child labor i. prohibited. That the industries are concerned for 

safety and welfare of all employee is indicated by provisions in the 

Code requiring the development of standards of safety, the carrying of employees' compensation insurance, and the active support of 

accident-prevention programs. 

ECONOMIC EFFECT OF THE CODE 

The crushed stone, sand and gravel, and slag industries have in 

the past lacked any great degree of coordination, although each one 

has had its national trade as ocjation, active in engineering and 

economic research, which ha. been of' benefit, it is believed, not only 

t o the a sociation members, but also to the industries at large and 

to the consuming public. 

In working out this Code, the three industries propose a new form 

of cooperation, which has been expanded to include the producers 

of stone, sand, and gravel from local quarries or wayside pits. The 

inclusion of these local producers, doing business mostly with port-

<rv> 
V 

able machjnery and equipment, has developed sp~cial proble~ns, 

which have been carefully considered from all angles 1n the evolut10n 

of the Code since the public hearing. The industries submitting thi Code have been operating on sched- ules averaging about 48 hours a week, so that with the proposed 

40-hour week, there should be an increase in employment of approximately 20 percent. This by no means bring the industries back to 

the 1929 level of·employment, but to attain uch a level the extensive 

road-building projects now under way must be supplemented by an 

appreciable increase in building construction. 

The Code as proposed is fair to Industry, to Labor, and to the 

Consumer, it is believed, and is thoroughly in accordance with the 

intent and purpose of the National Industrial Recovery Act. 

I find that: 

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

pertinent provisions of Title I of the Act, including without limitation, subsection (a) of Section 7 and subsection (b) of Section 10 

thereof; and that 

(b) The applicant group imposes no inequitable restrictions on admission to membership therein and is truly r epresentative of the 

Crushed Stone, Sand and Gravel, and Slag Industries; 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 

of Title I of the National Industrial Recovery Act. 

Accordingly, I hereby recommend the approval of this proposed 

Code of Fair Competition for the Crushed Stone, Sand and Gravel, 

and Slag Industries. 

Respectfully, 

HuaH S. JOHNSON, 

Administrator. 
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CODE OF FAIR COMPETITION FOR THE CRUSHED STONE, 

SAND AND GRAVEL, AND SLAG INDUSTRIES 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Code 

of Fair Competition for the Crushed Stone Sand a.nd Gravel, and 

Slag Indu tries and for such other Industries as with the approval 

of the Pre ident may be governed by its proYisions, and shall be 

binding upon eYery member thereof. 

ARTICLE II-DEFIX ITIOXS 

SECTION 1. l ndrustries.-The term "indu trie " as used herein 

includes the quarrying, and/ or crushing n.nd/ or processing, and/or 

recovering of stone, sand, gravel, and/ or slag for any or all purposes, 

and the producing and/ or proce sing for any or all purposes of the 

products of such other industries a with the approval of the President may from time to time be governed by the provi ions of this 

Code. 

SEc. 2. E1nployee.-The term "employee " as used herein includes 

any person engaged in the industries in any capacity receiving compensation for his services, irre pective of _ the nature or method of 

such compensation. 

SEc. 3. E11iploye1'.-The term "employer' as used herein includes 

anyone b} whom any such employee is compensated or employed. SEC. 4. '!If em,ber of the l riditstries.-The term "member of the 

industries " as used herein includes anyone engaged in the industries 

as above defined, either as an employer or on his own behalf. 

SEc. 5. Producers.-(a) Crushed Stone P1·oditcer.-The term 

" crushed stone producer " as used herein includes any member of the 

industries engaged in the quarrying, and/ or crushing, and/ or processing of stone for any or all purposes. 

(b) Sand and Gravel Producer.-The term ' sand and gravel producer " as used herein includes any member of the industries engaged in the recovering and/ or processing of sand, and/ or gravel for 

any or all purposes. 

( c) Slag P1·oducer.-The term ' slag producer " as used herein 

includes any member of the indu tries engaged in the recovering 

and/or processing of slag resulting from furnace or smelting operations for any or all purposes. 

( d) Registered Prodiwer.-The term "regi tered producer" as 

used herein includes any producer as above defined, who has assented 

to this Code and has complied with the other provisions of Section 

4 ( c) of Article VI of this Code. 

(1) 
2 

SEc. 6. Region.- The term '·region" as used herein includes any 

one of the seYeral part. · of the United States established as hereinafter et forth in Article VI of this Code. 

SEc. 7. Distl'ict.-The term ' district" as used herein includes any 

subdivision of any region or regions e tabli ·hed as provided for 

hereinafter. 

SEC. 8. Division.-The term "division" as used herein includes 

those members of the industries engaged prim. rily in the production 

of one type or class of industry products, so specialized in nature as 

to warrant the establishment of a division. 

SEc. 9. 111 ark ete1·.-The term "marketer" as used herein includes 

any r egistered producer selling products of the industries in any 

di trict. 

SEc. 10. Eff eetfoe Date.-The term "effective date" as used herein 

shall mean the beginning of the tenth day after the approval of this 

Code by the President. 

SEc. 11. P1·esident, Act, and Adm;i,nist1·ator.-The terms "President," "Act," and "Administrator" as used herein shall mean respectively the President of the United States, the National Industrial 

Recovery Act, and the Administrator of Title I of said Act. 

ARTICLE III-HouRs 

SECTION 1. W 01·king Time.-N o employee, except as set forth in 

this Article and in Article IV, shall be permitted to work in excess 

of forty ( 40) hours in any one week. 

SEc. 2. Exceptions.- The maximum hours specified in Section 1 

of this Article shall not apply to commercial travelling salesmen ; or 

to employees engaged in executive or managerial or clerical capacities who receive not less than $35.00 per week; or to the following 

employees : 

(a) Employees working as crews on floating equipment engaged 

solely in dredging and/ or transportation on navigable waters, provided the Code Authority as set up in Article VI of this Code shall 

prepare and submit, not later than January 1, 1934, a schedule of 

minimum wages and maximum hours for such employees, and upon 

the approval of the Administrator such schedule shall at once become 

effective. (b) Employees engaged in clerical or office work, provided the 

total working hours of such employees shall not exceed forty-two 

-( 42) hours per week averaged over any three ( 3) months in any 

six ( 6) months' period, or six ( 6) days in any one week. 

( c) Employees engaged in outside delivery service, provided the 

total working hours 0£ such employees shall not exceed forty-eight 

( 48 ) hours in any one week. 

( d) Employees engaged in emergency repair work involving 

breakdowns or protection of life or property, comprising not more 

than five ( 5) :percent of the total number of employees, provided 

the total working hours of such employees shall not exceed fortyeight ( 48) hours in any one week. 

( e) Employees engaged as watchmen, provided th.e total working 

hours o-f such employees shall not exceed sixty (60) hours in any 

one week. 
3 

ARTICLE 1v-,v AaEs 

SECTION 1. Rates of Pay.-(a) o employee, except as hereinafter set forth, shall be paid at less than the hourly rates specified 

in the following schedule which is made a part of this Code: 

(1) Alabama, Fl'orida, Georgia, Mis issippi, South Carolina _________________________ $0. 25 

(2) Arizona, Arkan as, K entucky, Louisiana, 

New Mexico, North Carolina, Oklahoma, 

Tennessee, Texas, Virginia, West Virginia east __________________________________ _ 

(3) California, Colorado, Connecticut, District 

of Columbia, Delaware, Idaho, Illinois, 

Indiana, Iowa , Kansas, Maine, ~1:aryland, 

Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New 

Hampshire, New Jersey, New York, North 

Dakota, Ohio including all operations on 

Ohio River, Oregon, Pennsylvania, Rhode 

Island, South Dakota, Utah, Vermont, 

. 30 

'Y ashingtoi:i, West Virginia west, Wisconsin, Wyommg__________________________ . 40 

(b) For the purposes of paragraph (a) of this section, " West Virginia east " shall be the part of West Virginia south and east of a 

straight line drawn between the intersection of the boundaries of 

the states of Kentucky, Virginia, and West Virginia and the point 

farthest south on the western boundary of Maryland; and "West 

Virginia west " shall hB the remainder of the state of West Virginia. 

( c) Employees engaged solely as water boys, comprising not more 

than four (4) percent of the total number of employees, (but in any 

oase there may be at least one water boy) may be paid at not less 

than eighty (80) percent of the hourly wages prescribed herein. 

( d) This section establishes a minimum. rate of pay, regardless o:f 

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

other basis. 

( e) To the extent practicable, weekly earnings shall not be decreased, notwithstanding that hourly work may be reduced, and rates 

of pay for occupations in excess of the minimum herein prescribed 

shall be increased so as to maintain differences in full time weekly 

earnings existing on July 15, 1933. 

(f) No employee working on an hourly basis shall be :paid less 

than one and one third times his hourly rate, for aJl time 1n excess 

of the maximum weekly hours prescribed herein. 

SEo. 2. Salaried Empl01.Jees.-(a) No accounting, clerical, or office 

employee shall be paid less than the rate of $15.00 per week in 

any city of 500,000 or more population, or in the immediate trade 

area of such city; or less than the rate of $14.00 per week in any 

city between 100,000 and 500,000 population, or in the immediate 

trade area of such city; or less than $13.00 per week in any city 

between 2,500 and 100,000 population, or in the immediate trade 

area of such city; or less than $12.00 per week in any city under 

20482°-188-196-33-2 
4 

2,500 population. Population for the purposes of this paragraph 

shall be determined by reference to the 1930 Federal Census. 

(b) No watchman paid on a weekly basis shall be paid at less 

than the rate of $13.00 per week in the States listed in paragraphs 

( 1) and ( 2) of Section 1 (a) of this Article; or at less than the 

rate of $14.00 per week in the States listed in paragraph (3) of 

Section 1 (a) of this Article. 

SEo. 3. Method of Paynient.-(a) An employer shall make payment of all wages due in lawful currency or by negotiable check 

therefor, payable on demand. Wages of employees paid on an 

hourly basis shall be paid at least twice a month and salaries at 

least once a month. These wages shall be exempt from any payments for pensions, insurance, or sick benefits other than those 

voluntarily paid by wage earners. 

(b) The employer or his agents shall accept no rebates, directly or 

indirectly, on such wages nor give anything of value or extend favors 

to any person for the purpose of influencing rates of wages or the 

working conditions of his employees. 

ARTICLE V-LABOR PROVISIONS 

SECTION 1. OMld Laborr.-No person under sixteen (16) years of 

age shall be employed in the industries, or anyone under eighteen 

( 18) years of age at operations or occupations hazardous in nature 

or detriment.al to health. The Code Authority as hereinafter established shall submit to the Administrator not later than January 1, 

1934, a. list of such occupations. In any State an employer shall be 

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

a certificate or pennit duly issued by the authority in such State 

empowered to issue employment or age certificates or permits showing that the employoo is of the required age. 

SEc. 2. Riq.Jds of Labor.-(a) Employees shall have the right to 

organize and bargain collectively through repres·entatives of their 

own choosing and shall be free from the interference, restraint, or 

coercion of employers of labor, or their agents, in the designation 

of such representatives or in self-organization or in other concerted 

activities for the purpose of collective bargaining or other mutual 

aid or protection. 

(b) 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; and 

( c) 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. 3. Labor Proteotion.-(a) Within each State this Code shall 

not supersede any laws of such State imposing more stringent requirements on employers regulating the age of employees, wages, 

hours of work, or health, fire, or general working conditions than 

.prescribed in this Code. 

(b) No employer shall reclassify employees or duties of occupations performed for the purpose of defeating the provisions of the 

Act oi:- of this Code. 
5 

( c) Each employer shall post in conspicuous places full copies of 

this Code. 

( cl) Each employer shall provide for the health and safety of his 

employees while engaged in the discharge of their duties. He shall 

protect his emplo3 ees by workmen's compensation insurance, accord- ing to the amount required in the State of juri diction or the United 

States Emplo3 ees' Compensation Insurance, if that State has not 

established a compensation scheme for these industries. 

SEc. 4. Accident prevention.-Every producer governed by this 

Code shall lend his cooperation and actiYe support to the program 

of his trade association for the reduction of accidents in the conduct 

of his operations. No producer shall be permitted to expose his 

employees to unnecessarily danoerous working hazards and case 0£ 

culpable disregard of the life and health of employees shall constitute 

a violation of this Code. The Code Authority as hereinafter estab- lished shall present to the Adn1ini trator within six months after 

the effective date, such standards of safety as in it judgment will 

further the purposes of thi section. 

SEc. 5. Company famlities.-(a) Employees other than maintenance or supervisory men, or those necessary to protect the property, 

shall not be required, as a condition of employment, to live in homes 

rented from the employer. 

(b) No employee shall be required as a condition of employment, 

to trade at the tore of the employer. 

ARTICLE VI-ADMINISTRATION 

SECTION 1. R egions.-For the purpose of administration of this 

Code, the United Sfates shall be diYicled into sixteen regions as indicated in the following tabulation, which is hereby constituted and 

made a part of this Code. The Code Authority as hereinafter provided may fron1 time to time revi e uch region or regions a:ff ected, 

subject to the approYal of the Administrator. 

Region No. 1.-l\1aine New Hampshire, Vermont, Massachusetts, 

Connecticut, and Rhode I land. 

Region No. 2.- :r ew York. 

Region o. 3.-Pennsylvania, New J ersey, and Delaware. 

Region No. 4.-"\Vest Virginia , Virginia, -Iarylancl, and District of 

Columbia. 

Region No. 5.-South Carolina, Georgia, Alabama, Florida, and 

l\1issi sippi. 

Region o. 6.-North Carolina, Kentucky, and Tennessee. 

Region No. 7.-Arkansas, Loni iana, and Texas. 

Region o. 8.-Ohio. 

Region No. 9.-Illinois and Indiana. 

Region No. 10.-1\Iichigan and "\"\ i consin. 

Region No. 11.-N orth Dakota, South Dakota, and l\1innesota. 

Region Jo. 12.-N ebraska and Iowa. 

Region 1' o. 13.-l(an as 2 l\1is ouri, and Oklahoma. 

Region No. 14.-"\Vyoming, Colorado, New :Mexico, Utah, and 

Arizona. 

Region No. 15.- California and e, ada. 

Region No. 16.-l\1ontana, Washington, Oregon, and Idaho. 
6 

SEC. 2. Districts.-Each region may be divided into subdivisions 

which shall be known as districts, to facilitate local organization, 

to administer this Code and to provide self-determination 0£ local 

issues within the provisions 0£ this Code and subject to the rulings 

0£ the regional committee and/or the Code Authority. Such districts may be established by the marketers in any marketing area 

subject to the approval 0£ the regional committee. vVhen a marketing area is situated in more than one region, a district may be established subject to approval 0£ the regional committees affected. 

SEc. 3. Divisions.-Any group 0£ members 0£ the industries, after 

submitting to the Administrator proof that they represent two thirds 

0£ the production, or two thirds of the producers, of any one type 

or class of industry products, so specialized in nature as to warrant 

the establishment 0£ a division, and that they are primarily engaged 

in the production of such specialized products, may petition the 

Administrator to constitute such members a division of the industries or of any one industry governed by the provisions of this Code. 

Upon such submission of proof and the receipt of such petition, the 

Administrator, after such hearing as he may prescribe, and after 

securing the recommendation of the Code Authority, may designate 

such members and all those in their class a division of the industries. Such members shall be governed by the provisions 0£ this 

Code, with such exceptions as may be approved from time to time 

by the Code Authority and the Administrator. 

SEc. 4. Oomniittees-(a) Oode Authority.-To effectuate the policies 0£ the Act a Code Authority is hereby constituted to cooperate 

with the Administrator in the administration of this Code. The 

Code Authority shall consist of: 

(1) One (1) member representing the crushed stone industry and 

one (1) member representing the sand and gravel industry from each 

region, and also one ( 1) member representing the slag industry from 

each region in which slag is produced. 

(2) Twelve (12) members at large, of whom at least one (1) shall 

be chosen from Regions 1, 2, and 3 as hereinbefore specified; at least 

one (1) from Regions 4, 5, 6, and 7; at least one (1) from Regions 

8, 9, and 10; and at least one (1) from Regions 11, 12, 13, 14, 15, 

and 16. 

(3) The president and one association staff representative to serve 

as ex officio members, 0£ each trade association truly representative 

of any industry that with the approval of the President may from 

time to time be governed by the provisions of this Code. Such associations are hereby initially designated as the National Crushed 

Stone Association, Inc., the National Sand and Gravel Association, 

Inc., and the National Slag Associa.tion, or such successor associations as may be constituted by actio:u 0£ the members thereof. 

( 4) Representatives, selected by an equitable method to be approved by the Administrator, of such industries as with the approval 

of the President may from time to time be governed by the provisions 

of this Co'de. 

( 5) The President may appoint ( from one to three) nonvoting 

members to the Code Authority as representatives of the Government. 

They are to be appointed £or terms of from six months to one year 
7 

and if more than one is appointed, their terms are to be arranged so 

that they do not expire at the same time. 

(b) In order that the Code Authority and/ or the committees estabJished herein hall at all times be truly representative of the industrie · as defined in Article II hereof and of such other industries 

as with the approval of the President may from time to time be governed by the provisions of this Code, 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 and/ or the committees e tablished herein are not 

truly representative or do 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 and/ or such c01nmittees. 

l\/Iembers of the Code Authority representing each region shall be 

elected by the regional committees of their respective regions. The 

elected members and the ex officio members shall elect the twelve 

repre entatives at large. The Chairman of the Code Authority shall 

be selected by the :full Code Authority :from its membership. 

Members o:f the Code Authority shall serve for one (1) year from 

the effective date, or until their successors are elected for a like term. 

( c) ReqiJ8tered Prodlucers.-Any member of the industries as 

defined in Article II hereof, or producers in other industries that 

with the approval of the President may from time to time be governed by the provisions of this Code, shall be entitled to participate 

in and share the benefits of the activities of the Code Authority and 

of other committees established herein and to participate in the 

selection o:f members thereof by assenting to and complying with the 

requirements of this Code and sustaining their reasonable share of 

the expenses of its establishment and administration. The reasonable 

share of these expenses shall be determined by the Code Authority, 

subject to review by ·the Administrator, on the basis of volume of 

business and/or such other factors as may be deemed equitable to be 

taken into consideration. Such a participant in the Code activities 

is hereinafter referred to as a "registered producer." 

( d) Regional Oommittees.-The registered crushed stone, sand 

and gTavel, and sla,g producers in each region in which they are 

producing materials shall elect in the manner prescribed in Section 

7 ( c) of this Article, an even and like number from their respectiv& 

industries consisting of not less than four ( 4) nor more than ten ( 10) 

to the regional committee. The members so elected by each of these 

industries shall elect one ( 1) additional member from each of these 

industries to the regional committee. 

This committee shall be equitably representative of the small, 

intermediate, and large producing companies of each industry within 

the region, with not more than one (1) representative from a single 

company, except that a I?roducer may have more than one (1) but 

not more than three (3) representatives in order to give voting 

parity to the indu try or industries represented by that producer. 

This committee shall also be elected with due regard to representation from each of the states composing the region. 

Members of a regional committee shall serve for one y~,ar frqm 

the effective date, or until their successors are elected for a like term. 
8 

( e) District O onimittees .-The registered crushed stone, sand, and 

gravel, and slag producers in each established district in which they 

are marketing, shall elect, in the manner prescribed in Section 7 ( d) 

of this Article, an even and like number from their respective industries consisting of not less than two (2) nor more than six (6) to 

the district committee. The members so elected by each of these 

industries shall elect one (1) additional member from each of these 

industries to the district committee. 

This committee shall be equitably representative of the small, 

intermediate, and large producing companies marketing within the 

district, with not more than one (1) representative from a single 

company, except that a producer may have more than one (1) but 

not more than three (3) representatives in order to give voting parity 

to the industry or industries represented by that producer or 

producers. 

Members of a district committee shall serve for one year from 

the effective date, or until their successors are elected for a like term. 

(f) Division Oommittee8.-The registered producers in any division shall elect, in the manner prescribed in Section 7 ( e) of this 

Article, a division committee. This committee shall be equitably 

representative of the small, intermediate, and large producers within 

the division, with not more than one (1) representative from a single 

producer. 

l\1embers of a di vision committee shall serve for one ( 1) year from 

the effective date, or until their successors are elected for a like term. 

SEO. 5. Duties of Oommittees.-(a) Duties of Gode Authority.-

The Code Authority shall be the general planning, coordinating, and 

administrative agency for the industries governed by this Code and 

shall adopt such rules and regulations as, in its judgment, and 

subject to modification or disapproval by the Administrator, are 

necessary for the proper administration of the Code. 

, v ithout limiting the foregoing, the Code Authority shall have the 

following specific powers, subject to disapproval or modification by 

the Administrator: 

(1) To obtain from members of the industries, periodically, or 

as often as it may direct, reports on wages, hours of labor, conditions 

of employment, number of employees, production, shipments, sales, 

stocks, prices, and other matters pertinent to the provisions or 

operation of thjs Code, sworn or unsworn as it may specify, or as 

the Administrator may from time to time require. 

(2) To delegate to the regional, district, or division committees 

the authority to collect from n1embers of the industries, in such 

regions, districts, or divisions such information and data as may 

be necessary for such committees properly to administer this Code; 

prov:i.ded, however, that such information and data shall be held 

as confidential information by such committees, except that such 

information and data shall be available to the Code Authority and 

the Administrator. 

(3 ). To delegate to the trade associations of the industries· governed by this Code or to snch subcommittees or such other agents 

or agencies_ as it may designate such of the achninistrative po';ers 

as may tpracticably be performed by them, and properly to com-) 

pensate them therefor; provided, however, that such delegation shall 
9 

not relieve the Code Authority of responsibility, and provided further that in the performance of any such delegated functions, such 

trade associations, subcommittees, or other agents or agencies shall 

comply with all applicable provisions of this Code. 

( 4) To keep accurate records and accounts of the expenses incident to the establishing and administering of this Code, and of 

doing such other things as it may have been, or may be, authorized 

or instructed by the Administrator to do ; and to render from time 

to time such reports to the various coffilnittees and members of 

the industries as may in the judgment of the Code Authority seem 

proper. 

( 5) To provide for the collection at intervals of funds to cover 

these costs and expenses and to designate through what agency and 

in what manner they shall be collected, subject, however, to the 

provisions of Section 4 ( c) of this Article. 

( 6) To collect and furnish to governmental agencies such statistical information as the Administrator may deem nece sary for the 

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

(7) To establish from its own membership an Executive Committee which, in the interim between meetings of the Code Authority, 

shall have all of the powers and authority of the Code Authority. 

This Executive Committee shall consist initially of not more than 

fifteen ( 15) members from the industries governed by this Code, 

and shall be equally and equitably representative of such industries. 

The representatives of the Government appointed as provided in 

paragraph (5) of Section 4 (a) of Article VI of this Code may also 

serve on the Executive Committee. The Code Authority may enlarge the Executive Committee in order to provide for equitable 

representation of such industries as with the approval of the President may from time to time be governed by this Code. The Executive Committee shall refer for hearing and determination questions exclusively affecting any particular industry or industries to the members of the committee repre enting the industry 

or industries, respectively. Snch members shall then act as a subcommittee with power to hear and determine the question under 

consideration for the entire Executive Committee. The members 

of the Executive Committee shall serve until their successors are 

elected. 

(8) To make such inquiries and investigations and to hold such 

hearings as to the operation of this Code upon the complaint of 

interested parties, or upon its own initiative, as may be necessary 

properly to administer the provisions of this Code. (9) To appoint regional committees in any region or regions 

where committees are not elected pursuant to the provi ions of this 

Code within thirty (30 ) days after the effective date. Any regional 

committee thus appointed shall hold office only until a regional committee for that region has been elected and qualified in accordance 

with the provisions of this Code. 

( 10) To establish or designate an agency on planning and fair 

practice which shall cooperate with the Code Authority in developing £air inter and intra trade practices and industrial planning, including the regularization of employment and stabilization of 

employees for the industry. 
10 

(b) Duties of Regional Oommittees.-The regional committees 

shall administer the provisions o:f the Code in their respective regions, J?rovided, however, that their acts be reviewed by the Code 

Authority and subject to its disapproval or modification, and may 

be reviewed and disapproved or modified by the Administrator. 

Each regional committee shall re:fer for hearing and determination 

questions exclusively affecting any particular industry or industries 

to those members of its committee elected thereon by said industry or 

industries respectively. Such members shall then act as a subcommittee with power to hear and determine the question in dispute for 

the entire regional committee subject to the right of appeal as hereinafter set forth. 

The regional committee shall maintain the authoritative list of 

registered producers in each region. Each registered producer shall 

sign a certificate o:f compliance with this Code, and shall report such 

data as to production as may be required by the committee. The 

regional committee shall not continue the name of any producer 

on the list who has failed to pay his proportionate share of the expense incidental to the establishment and administration o:f this Code 

as provided for in Section 4 ( c) o:f this Article. 

( c) Duties of District Oonimittees.-The district committee shall 

administer the provisions of this Code in their districts, provided, 

however, that their acts be reviewed by their respective regional 

committees and subject to their disapproval or modification. The 

acts o:f such district committees may be reviewed and disapproved or 

modified by the Administrator. Each district committee shall refer 

:for hearing and determination, questions exclusively affecting any 

particular industry or industries to those members elected thereon by 

the said particular industry or industries respectively. Such members shall then act as a subcommittee with power to hear and determine the question in dispute for the entire district committee subject 

to the right of appeal as hereinafter set :forth. 

( d) Duties of Division Oommittees.-Each division committee 

shall have power of self-government in respect to all conditions and 

problems relating exclusively to said division. It may establish territorial and other subcommittees, and prescribe such duties, rules, 

and regulations as are deemed necessary to carry out the purposes o:f 

the Act and of this Code. The right of appeal from the decisions 

of a subordinate committee to the next higher committee, to the Code 

Authority and to the Administrator, is hereby established. Furthermore, the Administrator shall have the right directly to review 

and disapprove or modify any action o:f any committee or subcommittee. Any such division committee may present to the Code 

Authority and to the Administrator recommendations designed to 

supplement the provisions o:f this Code, insofar as they relate to the 

members and operation o:f such division. Upon approval by the 

President a:fter such notice and hearing as he may prescribe, such 

recommendations shall have :full :force and effect and shall be considered as an integral part of this Code. 

SEC. 6. Interregional Regw/,a;tions.-Proposals in respect to the 

administra~ion o:f this Code affecting more than one region may be 

made to the Code Authority by the regional committee of any affected 
11 

region, and the de ision o:f the Code Authority shall be conclusive, 

subject, however, to the powers reserved herein to the Administrator. 

EO. 7. Voting-( a) Oommittees.-Each member of the Code Authority, the regional committees, the district committees, the state 

committees, and the division comn1ittees, shall be entitled to one vote 

in the proceedings thereof, and a majority vote shall crov-ern. 

(b) P1,oducers.-Each registered producer as defined in Section 

4 ( c) of this Article shall be entitled to one vote, except as otherwise 

provided in this section; provided any such producer who within 

one year prior to the effective date has sold and shipped the products 

of any or all the indu tries governed by this Code may vote individually and separately as a member of any or all of such industries. 

( c) Meeting and Voting lVithin a Region.-A meeting of producers within a region may be called at the instance of producers 

representing 25 percent of the production within a. region, or repre- senting 25 percent of the number of producers within a region, or 

at the call of either the regional committee or the Code Authority. 

The r egistered ~roducers of each industry shall vote for members 

to represent their industry, as follows: An agreed upon number of 

representatives of each industry shall oo elected by the registered 

producers of the respective industries, each of whom shall have one 

vote irrespective of production. A like number of representatives o:f 

each industry shall be elected by the registered producers of the 

respecti,e indu tries who shall vote in a~ordance with their aYerage 

annual production sold and shipped during the five preceding calen- dar year . In the event a registered producer has not been producing 

material throughout the five preceding calendar years his basis of 

voting shall be determined as the average annual rate of production 

sold and shipped during his period of operation, provided that his 

period of operation has been more than one calendar year. In the 

event that he has operated less than one calendar year then he shall 

be entitl0 d to as many votes a is equal to his production sold and 

shipped in tons or cubic yards according to established practice 

divided by 25,000. Each producer shall ha-ve one vote for each 25,000 

units or major fraction thereof of average annual production sold 

and shipped. The unit in each case shall be in accordance with 

establi hed practice within the region. After the representative of 

each industry have been elected in the manner above set forth they 

shall elect from their industry one additional member. Except for 

the election of the regional committee all of the voting hall be on the 

basis that each registered producer shall have one vote. 

( d) Meeting and Voting lV ithin a Dist-rict.-A meeting within a 

district may be called at the instance of marketers representing 25 

percent of the production sold and shipped within the district or 

repre~enting 25 percent of the number o:f ~roducers marketing within 

the district, or at the call of either the district committee or the regional committee. The marketers of each industry shall vote for 

members who shall represent their industry as follows: An agreedupon number of representatives of each industry shall be elected by 

the marketers of that industry, each of whom shall have one vote 

irrespective of delivered sales. An equal number of the repre entatives of each industry on the district committee shall be elected by 

the marketers of that industry, who shall vote in accordance with 
12 / 

their average annual production sold and shipped "ithin the district 

for the five ~receding calendar years. In the event a marketer has 

not been selhng materials within a district throughout the five preceding calendar years his basis of Yoting shall be determined as the 

average annual production sold and shipped in tons or cubic yards 

during the period he has been ·elling in the district. Each marketer 

shall have one vote for each 25:000 units or major fraction thereof 

of average annual sales. The unit in each case shall be in accordance 

with established practice within the district. After the representatives of each industry have been elected in the manner herein set 

forth they shall el'ect from their indu try one additional member. 

Except for the election of the district committee, all of the voting 

shall be on the basis that each marketer shall have one vote. 

( e) M eetvng and Voting Within a Division.-A meeting within a 

division may be called at the instance of producers representing 

twenty-five (25) percent of the production, or representing twentyfive (25) percent of the producers within the division, or at the call 

of the Code Authority. The registered producers shall Yote for 

members of the committee to represent their division, in such number 

and upon such equitable basis as may be approved by the 

Administrator. 

SEc. 8. Right of Appeal.-Appeal from any decision by a district 

committee may be taken to the regional committee or committees 

of the region or regions in which such district is located. Appeal 

:from any decision by a regional or division committee may be taken 

to the Code Authority or its accredited representative. The decision of the Code Authority or its accredited representative shall be 

final_ except for appeal to the Administrator. Any producer may 

exercise the right of appeal as herein provided from any decision 

affecting the interests of such producer. Questions on original hearing or an appeal exclusively affecting any particular industry shall 

in every instance be referred for hearing and determination to those 

members of the committee elected thereon by said particular industry 

or industries, respectively- SEc. }}. Arbitration.-Complaints or controversies, involving labor, 

the consuming interests, or groups outside of the industries which 

cannot be satisfactorily settled by the Code Authority may, with the 

consent of the interested parties, be referred to an arbitration board 

composed of equal representation from each of the gToups involved 

in the complaint or controversy, together with a neutral arbiter 

selected by the appointed members of the arbitration board. The 

decision of the arbitration board shall be final. 

SEc. 10. Adm,inutration Expenses.-All of the costs and expenses 

of establishing and administering this Code shall be borne by the 

registered producers in the industries governed by this Code. It is 

hereby agreed by and between such producers, and each for himself 

and with the Code Authority, that' each such producer shall pay at 

the time required such assessments covering the aforesaid cost as 

n1ay be required by the Code Authority. The Code Authority may 

appoint such a.gents or agencies as it may designate for the collection 

of these assessments. These costs as herein ref erred to shall be 

equitably di~tributed among the registered producers -in the various 

industries by the Code Authority, in conformity with Section 4 ( c) 

of this Article. 
13 

SEc. 11. T1·ade Association.-Each trade or induutrial as ociation 

directly or indirectly participating in the selection or activitie of 

the Code Authority shall: ( 1) Impose no inequitable re triction on 

member ·hip; and (2) submit to the Administrator true copies of its 

article of association, bylaws, regulations, and any amendments 

when made thereto, together with such other information as to membershi1, organization, and activities as the Administrator may deem 

necessary to e:ff ectuate the purposes of the Act. 

ARTICLE VII-TIU..DE PRACTICES 

SECTION 1. Unfai1· Methods.-The following practices constitute unfair methods of competition for n1e1nbers of the industries and are 

prohibited. 

(a) Secret Rebates.-To make secret prepayment of transportation 

charges or permit the payment or allowance of secret rebates, refunds, credits, or unearned discounts, whether in the form of money 

or otherwise, or extending to certain purchasers special service or 

privilege not extended to all purchasers under like terms and 

conditions. 

(b) Oontra,et lnterference.- To interfere wilfully with anyone by 

any means or device whatsoever, in any existin~ contract or order 

between a seller and a purchaser in or concerning the production, 

manufacture, transportation, purchase, or sale of any indu try product or the performance of any contractual duty or service connected 

therewith, with the intent and/or effect of thereby destroying or 

appropriating in whole or in part the property or business of another 

engaged in the industries governed by this Code. 

( c) Defamation.-To defame a competitor by words or acts, falsely 

imputing to him dishonorable conduct, inability to perform contracts 

or quest10nable credit standing, or by the false disparagement o:f the 

grade or quality o:f his material. 

( d) Misrepresent{J)tion.-To sel1 or offer for sale any industry 

product in such manner as knowingly to deceive purchasers or prospective purchasers as to the quality, quantity, size, grade, or substance 

of such product. 

( e) l!,f isbranding.-To mark or brand any product of the industry 

for the purpose or with the etfect of misleading or deceiving purcha ers with respect to the quality, quantity, size, grade, or substance 

of such product. 

(f) Oommercial Bribery.- To offer or give comrmss10ns, prizes, 

gifts, excessive entertainment, or other benefits as an act of commercial bribery to anyone in connection with the sale, purchase, or use 

of any industry product, or as an inducement thereto. 

(g) Lu1np-Sum Bidding.- To sell any industry product except on 

a unit-price basis. 

(h) Oontingent Selling.- To enter into any agreement for furnishing any industry product contingent upon the sale or purchase 

of any other product or ser-vice, or other contingency not appearing 

in the contract. 

(i) J obbers and Distributors.-Since the great volume of industry 

products is sold by producers direct to consumers no producer indirectly shall viol'ate this Code by disposing of his industry products 
14 

through a middleman whom he controls by stock ownership or other-. 

wise and who does not adhere to the standards of fair competition 

established in this Code. 

SEc. 2. 0 ost Deter1nination.-( a) Within 120 days after the effective date, the Code Authority shall establish, subject to the approval 

of the Administrator, a standard uniform accounting and costing 

system for each industry governed by the provisions of this Code. 

(b) "\Vhen approved by the Administrator :full information concerning such uniform standard systems shall be distributed by the 

Code Authority to all members of the industries. Thereafter each 

member shall adhere to the standard uniform system for the industry 

or industries in which he is engaged to the extent of incorporating 

in his calculations of cost all of the elements prescribed by such 

system. 

( c) Any district committee may, if it so elects, and subject to the 

approval of its regional committee and the Code Authority, adopt 

for the producers selling within that district, the open-price policy 

prescribed in paragraphs ( d) and ( e) of this section. 

( cl) No producer sellino- within a district described in paragraph 

( c) of this section shall sell any product at less than his prime plant 

cost thereof, plus ten (10) percent. Such cost shall be computed in 

accorda:p_ce with the standard uni£ orm accounting and costing system 

for the industry in which the producer is engaged and shall iJ?-clude 

all items of cost exclusive of return on capital invested, interest on 

borrowed capital, depreciation, depletion, administration, selling 

costs, and reserves. 

(e) In any district where the open-price policy is adopted each 

producer selling within the district shall file with the district committee not less than five ( 5) days in advance of the effective date 

thereof, all prices, terms, and conditions of sale, which shall be f.o.b. 

plant, or delivered, or both, as may be directed by the district committee. Such prices, terms, and conditions of sale shall continue in 

effect until other prices, terms, and conditions of sale have been duly 

filed as herein provided. The district committee shall immediately 

cause copies of all such prices, terms, and conditions of sale filed with 

it to be distributed amon~ the producers selling within the district, 

and to be made aYailable tor public information. 

No provision contained herein shall be construed as preventing 

any producer selling within a district from meeting, as of their 

effective date, the prices, terms, and conditions of sale, filed as herein 

provided by any other producer. 

Except as provided in the foregoing no producer selling within 

a district shall deviate from the prices, terms, and conditions of sale 

filed by him as herein provided. · 

SEc. 3. Uniform Terms of Sale.-In each region, district, or division, the regi.onal, district, or divi3ion committee, as the case may be, 

may establish, subject to the approval of the Administrator, terms 

of sale uniform within each region, district, or division. Such terms 

shall be binding upon all producers selling in that region, district, 

or di Yision. 

SEc. 4. Uniform Credit Practices.-In each region, district, or 

division, the regional, district, or division committee, a~ the came may 

be, may establish, subject to the approval of the Administrator, 
15 

credit practices uniform within such region, district, or di vision. 

Such practices hall be binding upon all producers selling in that 

region, district, or division. 

EC. 5. Plant Capacity and New P1'oduction.-(a) To promote the 

fullest pos ible utilization of the pre ent productive capacity of the 

industries governed by thi Code, to curb uneconomic overproduction 

in the various region herein e tablished, and otherwi e to effectuate 

the purposes of the Act there shall hB elected in each state, as hereinafter provided, a tandino- committee which shall survey it State 

to ascertain the avail1able sources of supply of the products of these 

industries within the State, the capacity of existing production facilities and the relation between exi ting capacity and the actual and 

potential demand in such state. This committee shall be known as 

the state committee and shall consist of three (3) stationary-plant 

producers and three (3) portable-plant producers, together with one 

(1) additional member who shall be elected by these six and may be 

chosen from outside the industries. The six representative members of the committee shaU be regi tered producers as defined in Article II of this Code and shall be elected at the time of the election 

of the regional committee of the region in which the state is located. 

Members of a state committee shall serve for one year from the effective date or until their successors are elected fo1: a like term. The 

representatives of the stationary-plant producers shall be el'ected by 

a majority of the registered stationary-plant producers voting and 

the representatives of the portable-plant producers shall be elected 

by a majority of the regi tered portable-plant producers voting. The 

survey and findings reported by each of these committees shall be 

filed with the appropriate regional committee, which shall transmit 

a copy thereof to the Code Authority and to the Administrator. 

(b) If in the judgment of such a state committee, its survey and 

findings warrant such action, it may after due notice and hearing 

determine and define the areas, if any within its state in which an 

ample supply of the products of the inclustries goYerned by this Code 

is economically a.vailable from exi ting production facilities. The 

minutes of such hearing2 together with the findings of the state committee and a map showing accurately the boundaries of such areas, 

shall be filed by each state committee with the appropriate regional 

committee, which shall transmit a copy thereof to the Code Authority 

and the Administrator and, moreover, a copy of the map, together 

with a summary of the comnuttee's findings, shall be mailed to each 

registered producer within the region a.nd to all governmental 

authorities who may properly be interested therein. The Administrator shall r eview said data and examine said map, and if he shall 

find that in the area or areas shown on such ma.p an ample supply 

of the products of the industries governed by this Code is in fact 

economically available from existing production facilities such area 

or areas shall be established as "permissive areas" and subject to 

the provisions contained in the remaining paragraphs of this section. 

( c) If any state committee so recommend, the regional committee 

shall require, subject to review and disapproval by the Administrator, that before a new plant is installed or the producing capacity 

of an existing plant increased within any permissive area, notice 

of such intent shall be filed with the regional committee of the 
16 

region in which such action is contemplated. Upon receipt of such 

notice the regional committee shall refer it to the state committee 

or committees in which such permissive area. may be located, who 

shall collect promptly and with diligence full information concernjng existing production capacity in that area. If, in the judgment 

of the state committee, these data disclose that such new capacity 

will not tend to defeat the J?Urposes of the Act as herein set forth, 

the regional committee within fifteen (15) days after the receipt of 

such notice shall grant permission for the proposed increase in 

capacity. If, however, in the judgment of the state committee these 

data disclose that within the said area an ample supply of the products of the industries governed by this Code is economically available and that such proposed increase in capacity does tend to defeat 

the purposes of the Act by further increasing overproduction or 

otherwise, it shall be the duty of the regional committee within 

fifteen (15) days after the receiJ?t of such notice to recommend to 

the Code Authority that permission to increase the production 

capacity in that area be denied. The decision 0£ tl1e Code Authority 

shall be final except as it may be modified or revised by the 

Administrator. 

( d) The Administrator upon notice to the Code Authority or the 

regional committee directly involved may at any time suspend the 

provisions of paragraph ( c) of this Section. 

( e) Neither the provisions of this Section nor any recommendation 

adopted by the Administrator pursuant thereto shall be construed 

as preventing any producer from improving the efficiency of his 

plant through the installation of new equipment or adopting any 

methods designed to lower production costs. 

(f) The provisions of this Section shall remain in effect for a 

period of one (1) year after the effective date and thereafter until 

production in the industries governed by this Code shall reach 

seventy (70) percent of the available production capacity. 

ARTICLE VIII-MODIFICATION 

~ECTION 1. otatutory P,rovisions.-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 Sect.ion 

10 of the Act, from time to time to cancel or modify any order, 

approval, license, rule, or regulation issued under Title I of the 

Act and specifically, but without limitations, 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. 

SEC. 2. Amendments.-This Code, except as to provisions required 

by the Act, may be modified on the basis of experience or changes 

in circumstances, such modification to be based upon application to 

the Administrator and such notice 'and hearing as he shall specify, 

and to become effective on approval of the President. 

ARTICLE IX-MONOPOLIES 

No provision of this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate 

against small enterprises. 
17 

ARTICLE X-PrucE I :rcREASEs 

Whereas the policy of the Act to increase real purchasing power 

will be made impo sibl of con mmnation if price of goods and 

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

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

so far as reasonably pos.jble, be limited to actual increases in the 

seller's co 

ARTICLE XI-EFFECTIVE DATE 

This Code hall become effective on the beginning of the tenth day 

after its approval by the President. 

0 
UNIVERSITY OF FLORIDA 

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