Approved Code No. 409 Registry No. 1630-06 

NATIONAL RECOVERY ADMINISTRATION 

. .,,, 

CODE OF FAIR COMPETITION 

FOR THE 

FLEXIBLE INSULATION 

INDUSTRY 

-~ 

AS APPROVED ON APRIL 30, 1934 

WE DO OUR PART 

.. - ---... 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

\ I 

For aale by the Superintendent of Documents, Washington, D.C. • • • • • - - - Price 5 cents 

✓ 
This puLlkution is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., and by district offices of the Burea11 •Jt 

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, l\lass. : 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.: 801 First National Bank Building. 

Houston, Te::s:.: Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn.: 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

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

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa.: 422 Commercial Trust Building. 

Pittsburgh, Pa. : Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif.: 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Buildin~. 

• 
Approved Code No. 409 

CODE OF FAIR COMPETITION 

FOR THE 

FLEXIBLE INSULATION INDUSTRY 

As Approved on April 30, 1934 

ORDER 

ArrnovING ConE OF FAIR COJ.\fPETITION FOR THE FLEXIBLE INSULATION 

INDUSTRY 

An application having been duly made pursuant to and in full 

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

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

Fair Competition for the Flexible Insulation Industry, and hearings having been duly held thereon and _the annexed report on said 

Code, containing findings with respect thereto, having been made and 

directed to the President: 

NO~T, THEREFORE, on beha1£ of the President of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Order of the 

Pre ident, including Executive Order No. 6543-A, elated December 

30, 1933, and otherwise; do hereby incorporate by reference said 

annexe l report and do find that said Code complies in all re pects 

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

of Fair Competition be and it is hereby approved; provided, howver, that the provisions of Article VIII, Section 2 insofar as they 

prescribe a waiting period between the filing with the Code Authority and the effective date of price lists, as originally filed and/or 

revi eel price li ts or revised terms and conditions of sale, be and 

they hereby are stayed pending my further order. 

Approval r commended: 

A. R. GLANCY 

HUGH S. JOHNSON, 

Ad1ninistrator for Industrial Recovery. 

Division Aclm.,inistrat01·. 

"A~III:N"GTON D.C. 

April 30, 1934. 

55 14°-482-180-34 (507) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The lV hite House. 

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

Flexible In ulation Industry, as revi~ed after a public hearing conducted in Wa hington, D.C., on April 11, 1934, in accordance with 

the provisions of Title I of the National Industrial Recov0 ry Act. 

PROVISIONS AS TO HOURS AND WAGES 

Employee are not permitted to work more than forty hours per 

week or eight hours per day, except as otherwise provided. Employees are not permitted to work more than six days out of any 

seven. 

Hourly and daily limitations do not apply to outside salesmen or 

outside sales service men; or to managers, executives or supervisors 

who receive thirty-five dollars or more per week; or to employees 

engaged in e1nergency work involving breakdowns or the protection of life or property, provided one and one-half times the normal 

rate is paid for hours worked in excess of forty per week or eight 

per day. Employers shall not permit accounting, clerical, office or 

sales employees ( except outside salesmen) to work in excess of forty 

hours per week. 

To meet demands of peak production periods, plant and factory 

employees are permitted to work forty-eight hours per week during 

any twelve weeks in each calendar year, provided one and one-half 

times the normal rate is paid for hours worked in excess of forty 

per week or eight per day. 

Chauffeurs, truckmen, repair and maintenance crews, engineers, 

firemen, electricians and departmental foreman, not exceeding ten 

per cent of an employer's total number of ·plant employees, are permitted a tolerance of ten per cent over their normal hours but in no 

event in excess of forty-eight hours per week, provided time and 

one-half is paid for all hours worked in excess of forty per week 

or eight per day. vVatchmen are not permitted to work more than 

fifty-six hours per week. Tour machine workers engaged in continuous operations may be permitted to work extra hours in order 

to avojd a shut-down caused by the temporary ab ence of a relief 

worker. 

The minimum hourly rate of pay for male employees, except office 

and ales employees, shall be thirty-eight cents per hour. The 

minimum hourly rate for female employees shall be thirty-three 

cents per honr. Female employees performing substantially the 

same work as male employees shall receive the same pay as male 

employees. 

Office, accounting, clerical or sales employees shall receive a mini-

, mum rate of fifteen dollars per week except that office boys and girls, 

(50S) 
509 

not exceeding five percent of an employer' total number of office 

employee , may be paid not le s than eighty per cent of the minimum. 

A minimum rate of pay is established, regardl of whether an 

employee is compen at d on a time rate, piece work or other ba is. 

omp n ation of empl yee receiving more than the minimum hall 

be equitable adju ted and reported to the Code Authority but in no 

vent hall rates of pay be reduced. No person under sixteen years 

of ao-e hall be employed in the Indu try nor any person under 

eighteen years of age in machine operation . 

ECO TOMI EFFECTS OF THE CODE 

Thi is a comparatively new Industry. It suffers direct competition from waste and byproducts of various indu tries. It products 

are in lemancl for building insulation and for industrial u es. Electric refrigerators, refrigerator and pas enger railroad car normally 

account for the largest volume of flexible insulation u eel industrially. 

The very nature of its product tends to classify this Industry as 

a marginal one, which classification can be improved only by scientific re earch and an enlightened public demand. 

The main. ources of demand re ult in periodic fa ctory employrn.ent. 

Fortunately, peaks occur so as to give employment to persons who 

would be otherwise idle, at a compensation greater than they could 

obtain in other lines of work for which they are fitted. The hourly 

provi ions in thi Code are sufficiently flexible to meet the demands 

ofleak production periods. 

s a result of the President's Reemployment Agreement and 

this Code, minimum wages will be increased approximately twentyfive per cent above the 1933 average and will be in excess of minima 

paid by the Industry in 1929. Employment in February, 1934, 

showed an increase of fifteen per cent attributable to the President's 

Reemployment Agreement. 

FINDINGS 

The A ·si tant Deputy Administrator in his final report to me on 

said Code, having found as herein set forth and on the ba is of 

all the proceedings in this matter; 

I find that: 

(a) Said Co le is well de igned to promote the policies and purpose of Title I of the National Indu trial Recovery Act, including 

remoYal of ob truction to the free flow of interstate and foreign 

commerce which tend to diminish the amount thereof and will 

provi le for the general welfare by promoting the organization of 

inclu try for the purpose of cooperative action among the trade 

o-roup by inducing and maintaining united action of labor and 

manao·ern nt under adequate governmental sanctions and superviion by liminating unfair competitive practice , by prorn.oting the 

fulle t po ible utilization of the pre ent productive capacity of 

industri by avoidin undue re triction of production ( except a 

may be temporarily r quired), by increa ing the con um.ption f 

indu trial and agricultural produ ts throuo·h increasino· pur ha ing 

power, by re lucino- and r lieving unemplo ment by improving 

standard of labor, and by otherwise rehabilitating indu try. 
510 

(b) Said Industry normally employs not more than 50,000 employees; and is not classified by me as a major industry. 

( c) The Code as approved complies in all respects with the 

pertinent provisions of said Title of said Act, including without 

limitation Subsection (a) of Section 3, Subsection (a) of Section 7, 

and Subsection (b) of Section 10 thereof; and that the applicant 

a sociation is an industrial association truly representative of the 

aforesaid Industry; and that said association imposes no inequitable 

restrictions on admission to me1nbership therein. 

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

or monopoli tic practices. 

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

small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 

not been deprived of the right to be heard prior to approval of said 

Code. 

For these reasons, therefore, the Code has been approved. 

Respectfully, 

APRIL 30, 1934. 

HUGH s. JOHNSON, 

AdministratoT. 
CODE OF FAIR COlfPETITION FOR THE FLEXIBLE 

IN ULATION INDUSTRY 

ARTICLE I-PURPO ES 

To effectuate the policies 0£ Title I 0£ the National Indu trial 

Recovery Act, thi Code is establi hed as the Code 0£ Fair Competition for the Flexible Insulation Industry, and shall be the standard 

0£ £air competition £or this Industry, and shall be binding upon 

every member thereof. 

AnTICLE II-DEFINITIONS 

The term "Flexible Insulation Industry" or "the Industry" as 

u ed herein includes all individuals, firm , corporations, or other 

forms 0£ enterprises, manufacturing and selling industry products, 

as hereinafter defined, those selling as a manufacturer the entire 

output 0£ a manufacturer 0£ any such products and those manufacturers selling, and billing therefor, industry products manufactured £or them by another, but not including wholesalers and/or 

dealers and/or contractors. 

The term "Industry Products" as used herein includes flexible, 

nonstructural heat and sound insulation products made of fabricated vegetable fibre. Electrical insulation products are definitely 

excluded. 

The term "Member of the Industry " or "Industry Member" includes anyone engaged in the Industry as above defined, either as an 

employer or on his own behalf. 

The term " Employee" as used herein, includes any person engaged in the Indu try, in any capacity, receiving compensation for 

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

compen ation except a member of the Indu try. 

The term "Employer" as used herein includes any person by 

whom any uch employee is compen ated or employed. 

The terms "Pre ident ", "Act" and "Administrator" as used 

herein mean re pectively the President of the United States, Title I 

of the ational Indu trial Rec0very Act, and the Administrator for 

Industrial Recovery. 

ARTICLE III-I-Io Rs oF LABOR 

SECTION 1. o employee hall be permitted to work in exce s o-f 

forty ( 40) hours in any week or eight ( 8) hours in any day except 

as otherwi e provi led in this Article. 

ECTION 2. In order to provide for peak production periods, plant 

an l factory mployees may, durino- any twelve (12) w ek in each 

cal ndar y ar, be permitted to work up to but not in exc of fortyeight ( 4 ) hour in any week, provided, however, that such time 

(511) 
512 

worked in excess of forty ( 40) hours in any such week and/or eight 

( 8) hours in any day by such employees, shall be paid for at not 

le s than one and one-half (11⁄2) times the normal rate of pay. 

SECTION 3. The maximum hours of labor for chauffeurs, truckmen, repair and maintenance crews, engineers, firemen, electricians, 

and departmental foremen shall be ten ( 10) per cent over the hours 

fixed in the foregoing Section 1, provided, however, that the total 

number of such employees who may be worked the maximum hours 

herein established shall not exceed ten ( 10) per cent of the total 

number of plant and factory employees in any plant, and provided, 

that such employees 1nay be permitted to work up to but not in 

excess of forty-eight (48) hours per week during the peak period 

provided in Section 2 hereof and shall receive overtime of at least 

one and one-half (11⁄2) times the normal rat.e for all hours in excess 

of forty (40) per week and/or eight (8) per day. 

SECTION 4. Tour machine workers engaged in continuous process 

operations, may be permitted to work additional hours above the 

number provided in Section 1 of this Article, to avoid a shutdown 

due to the temporary absence of a scheduled relief worker. 

SECTION 5. The maximum hours for watchmen shall be fifty-six 

( 56) hours in any one week. 

SECTION 6. No accounting, clerical, office, or sales employee ( except 

outside salesmen) shall be permitted to work in excess of forty (40) 

hours per week or nine (9) hours per day. A normal day shall not 

exceed eight ( 8) hours. 

SECTION 7. No employee shall be permitted to work in excess of six 

days in any seven-day period. · 

SECTION 8. No employer shall knowingly permit any employee to 

work for any time which, when totaled with that already performed 

for another employer or employers or under another code or codes, 

exceeds the maximum permitted herein. 

SECTION 9. The foregoing limitations on hours and days in this 

'.Article shall not apply to outside salesmen or outside sales service 

men; to employees engaged in executive, managerial or supervisory 

capacity who regularly receive thirty-five (35) dollars per week or 

more; or to employees engaged in emergency work involving breakdowns or the protection of life or property but employees engaged 

in such emergency work shall be compensated by at least one and 

one-half (11⁄2) times the normal rate of pay :for hours worked in 

excess of forty (40) per week and/or eight (8) per day. 

ARTICLE IV- WAGES 

SECTION 1. No male employee shall be paid less than at the rate of 

thirty-eight (38) cents per hour and no female employee shall be 

paid less than at the rate of thirty-three (33) cents per hour, except 

as herein otherwise provided. 

SECTION 2. This Article establishes a minimum rate of pay, regardless of whether an employee is compensated on a time rate, piece 

work or other basi . SECTION 3. An equitable adjustment for employees shall also be 

made as to rates of compensation in excess of minimum rates established in this Article, by all members of the Industry who have not 
513 

heretofor made such an equitable adjustment and in no case hall 

rates be lecrea ed, and within sixty (60) days after the effective 

date hereof each Member of the Indu try shall r port to the ode 

Authority, for ubmis ion to the Administrator, the action taken by 

such member in pur uance of this provision. 

SECTION 4. Female employ es performing substantially the same 

work as male employees shall receive the ame rate of pay as male 

employee . E TION 5. The Code Authority shall within ninety (90) days 

after the ffective date of this Code, file with the Admini trator a 

Ii t and description of all occupations in the Indu try in which both 

n1en and women are employed and also in which women are exclusively employed. 

SECTIO:N 6. The minimum rate of wages for all employees engaged 

in office, accounting, sal or clerical work shall not be less than fifteen ( 15) dollars per week, except as provided in Sections 7 and 8 

of this Article. 

SECTION 7. Office boys and office girls under eighteen years of age 

may be employed at a wage of not less than eighty (80 ) percent of 

the minimum prescribed in Section 6 hereof, provided that not more 

than five (5) percent of all office employees may be paid as office 

boys and girls, except that each employer may employ at least one 

such office boy or office girl. 

SECTION 8. A person whose earning capacity is limited because of 

age or physical or mental handicap may be employed on light work 

at a wage not le s than eighty (80) percent of the minimum e tablished by this Code, but such employees shall not exceed five percent of any employer's total number of employees, provided the employer obtains from the state authority designated by the United 

States Department of Labor a certificate authorizing employment at 

such wages and for such hours as shall be stated in the certificate. 

Such state authority shall be guided by the instructions of the United 

States Department of Labor in issuing such certificate. Each employer shall file with the Code Authority a list of all such persons 

employed by him. 

SECTION 9. Every employer shall agree to make payment of all 

wao-es due in lawful currency or by negotiable check therefor, payable on demand. ,, ages shall be paid at least twice a month. These 

wage shall be exempt from any payment for pensions, in urance, or 

sick henefits other than those voluntarily paid by employees or required by law. Employers or their agent hall not accept, directly 

or indirectly, rebates on such wag0 s or give anything of value nor 

extend any favors to any person for the purpose of influencing rates 

of wages or working conditions of their employees. 

Employers shall ao-ree that the wages for persons employed in 

cl rical or office work or in a managerial or executive capacity who 

earn not less than thirty-five (35) dollars per week shall be paid 

at the end of pay periods not exceeding one month. 

ARTICLE V-GENERAL L BOR PROVISIO s 

SE TIO~ 1. person under sixt n (16) y ars of age shall be 

employe l in any apacity in th Indu try. N per on under eighteen 

(1 ) years of ag hall be mployed in machine operations. 
514 

SECTION 2. (a) Employees shall have the right to organize and 

bargain collectively through representatives 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. 

SECTION 3. No employer shall reclassify employees or duties of 

occupations performed or engage in any other subterfuge for the 

purpose of defeating the purposes or provisions of the Act or of this 

Code. 

SECTION 4. Every employer shall provide for the safety and health 

of employees during the hours and at the places of their employment. 

Standards for saf ety and health shall be submitted by the Code Authority to the Administrator within six months after the effective 

elate of this Code. SECTION 5. No provision in this Code shall supersede any State or 

Federal law which imposes on employers more stringent requirements as to age of employees, wages, hours of work, or as to safety, health, sanitary or general working conditions, or insurance, or fire 

protection, than are imposed by this Code. 

SECTION 6. All employers shall post and keep posted copies of this 

Code in conspicuous places accessible to all employees. Every member of the Industry shall comply with all rules and regulations relative to the posting of provisions of Codes of Fair Competition which 

may from time to time be prescribed by the Administrator. 

SECTION 7. No employee shall be discharged because of making a 

complaint or giving evidence with respect to an alleged violation of 

this Code. 

SECTION 8. No employee now employed at a rate above the minimum shall be discharged and re-employed at a lower rate for the, 

purpose of evading the provisions of this Code. 

ARTICLE VI-AmvnNISTRATION 

SECTION 1. To further effe tuate the policies of the Act, a Code 

Authority is hereby established to cooperate with the Administrator 

in the administration of this Code. The Code Authority shall con- si t of one representative from each member of the Industry who 

shall subscribe to the Code and pay his pro rata share of the expenses of admini tration of this Code. In addition there may be 

not more than three members, without vote and without cost to the 

Inclu try, to be known a Administration :Member or Members, to 

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

may specify. SECTION 2. Each trade or indnstrial association directly or indirectly participating in the selection or activities of the Code Au-
515 

thority, shall (1) impose no inequitable restrictions on membership, 

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

as ociation, bylaws, regulation , and any amendments when mado 

thereto, together with uch other information as to membership, 

organization, and activities as the Administrator may deem necessary to effectuate the purposes of the Act. 

ECTION 3. In order that the Code Authority shall at all times be 

truly representative of the Industry and in other respects comply 

with the provisions of the Act, the Administrator may prescribe 

uch hearings as he may deem proper; and thereafter if he shall 

find that the Code Authority is not truly representative or does not 

in other respects comply with the provisions of the Act, may require an appropriate modification of the Code Authority. 

SECTION 4. Subject to such rules and regulations as may be issued 

by the Administrator, the Code Authority shall have full power 

and authority from time to time to require such reports from members of the Industry with respect to capacity, production orders 

and shipments, persons employed, wage rates, earnings and hours of 

labor, prices, costs and ·other items as may be required to adequately 

administer and enforce the provisions of this Code; to prepare and 

promulgate for the Industry, from time to time, merchandising 

plans or changes in or additions to any such plans which may be 

adopted under this Code containing such provisions as may be necessary or proper to insure fair selling methods by the Industry and 

to prevent unfair competitive practices, subject to the approval of 

the Administrator after such notice and hearing as he may specify; 

and to recommend the standardization of products by the members 

of the Industry. 

SECTION 5. The Code Authority shall also have the power, subject to such rules and regulations as may be issued by the Administrator; 

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

to provide for the compliance of the Industry with the provisions 

of this Code and the Act; 

(b) to adopt bylaws and rules and regulations for its procedure; 

(c) to study the effect of the provisions of this Code upon the Industry and consider proposals for modifications of this Code and 

make recommendations thereon from time to time to the Administrator which modifications shall become effective as part of the Code 

upon approval by the Administrator after such notice and hearing 

as he may specify. 

SECTION 6. In addition to information required to be submitted 

to the Code Authority, all or any of the persons subject to this Code 

shall furnish such statistical information as the Administrator may 

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

to such Federal and State Agencies as the Administrator may designate; and nothing in this Code shall relieve any per on of any exi ting obligation to furnish reports to Government Agencies. 

SECTION 7. In order to assure confidential tr atment of individual 

figures, all reports, data and information which the Code Authority 

is empowered to receive hall be received by an agency appoint d 

by the Code Authority not a memb r of or connected with a member of the Industry. The ao-ency so receivino- any such r port , data 
516 

and information shall keep the same confidential except when requir·ed by the Code Authority or by the Administrator for the proper 

enforcement of this Code. All such reports, data and information 

shall be available at all times to the Administrator. 

SECTION 8. Collu ion between any Indu try member and any such 

confidential agency for the purpose of examining any report or data 

or obtaining any information collected or received by such confidential agency hall be a violation of this Code. 

SECTION 9. The Code Authority may delegate any of its powers 

or functions to committees of its members or to such agencies as it 

may de ignate but the Code Authority shall be responsible for the 

authorized acts of any such committees or agencies. 

SECTION 10. Each member of the Code Authority representing an 

Industry member shall be entitled to cast one vote on all matters 

coming before the Code Authority for consideration, but no manufa.cturing member and the selling agent or selling agents of such 

manufacturing member's products shall in the aggregate have more 

than one vote. Reasonable notice of. all meetings shall be given to 

each member. At any duly called meeting of the Code Authority, a 

two thirds affirmative vote of the voting members present at the 

meeting either in person or by the member's alternate, or by proxy, 

shall be required to make effective any action taken or for the adoption of any resolution except as herein otherwise specifically provided. 

Any member of the Code Authority in his absence may be represented 

by an alternate appointed by him who shall be a person actively connected with the same company with which the member making th'1 

appointment is connected; or by his written proxy. 

SECTION 11. Any interested party shall have the right of complaint 

to the Code Authority and a prompt hearing and decisioh thereon 

under such rules and regulations as it shall prescribe in such cases. 

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. 

SECTION 12. All expenses involved in administering the Code shall 

be determined by the Code Authority, subject to review by the Administrator, and prorated equitably am.ong the members of the Industry who assent to this Code. The pro-ration by the Code Authority of all such expenses shall be determined on the basis of the 

net dollar sales of each member, made in the United States during 

the previous calendar year.· SECTION 13. Nothing contained in this Code shall constitute the 

members of the Code Authority partners for any purpose. Nor shall 

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

one for .any act of any other member, officer, agent, or employee of 

the Code Authority. Nor shall any member of the Code Authority 

exercising reasonable diligence in the cond~ct_ of his duties her~-

under, be liable to any one for any act or omiss10n to act under this 

Code, except for his own wilful misfeasance or nonfeasance. 

SECTION 14. If the Administrator shall at any time determine that 

any action of the Code Authority, or _an_y agency thereof_, !Day be 

unfair or unjust or contra:y to the public interest, the Admimstrator 

may require that such act10n be suspended to afford an opportunity 
517 

for investigation of the merits of such action and further consideration by such Code Authority or agency, pending final action, which 

shall not be effective unle s the Administrator approves or unless he 

shall fail to di apJ?rove after thirty (30) days' notice to him of intention to proceed with such action in its original or modified form. 

ARTICLE VII-CosT AccouNTING FoR '.l:ULA 

SECTION 1. The Code Authority may prescribe a co ting formula 

and methods of estimating, covering cost of industry products sold, 

capable of use by all members of the Industry. After uch formula 

and methods have be.en formulated and approved by the Administrator, full details concerning them shall be made available to all 

members. Thereafter all members shall determine and/or e timate 

costs in accordance with the principles of such methods. 

SECTION 2. No member of the Industry after the adoption by the 

Code Authority and approval by the Administrator of a uniform 

costing formula shall price or sell any industry product below such 

member's cost as determined by such formula except to meet the 

competition of a lower cost producer of industry products, provided, the competitor's price does not violate this Code. 

ARTICLE VIII-PUBLICATION OF PRICE 

SECTION 1. The Code Authority may require the practice of filing 

with the Code Authority or such other agency as it may designate, 

subject to the approval of the Administrator, each member's own 

prices, terms, and conditions of sale of all standard industry products not made to customer's specification, offered for sale by such 

member, except products sold to another member of the Industry. 

When the Code Authority requires such filing of prices, each member of the Industry shall comply with the requirement. . 

SECTION 2. Every member may be required by the Code Authority 

to file notice of any price changes five days prior to the effective 

date. 1 

SEcrrION 3. Such information shall be available to all members 

and to any interested par.ty. 

SECTION 4. Subject to Sections 1, 2, and 3, no member of the Industry shall sell or offer for sale any industry products at a price 

or prices, or upon terms and conditions, other than stated in the 

published price list and the terms and conditions of sale and changes 

thereon or revisions thereof published and filed by such member, 

except to another member of the Industry. 

ARTICLE IX-GENERAL 

SECTION 1. Articles VII and VIII hereof, and any Trade Practice 

Code or Mcrchan li ing Plan hereafter adopted by the Industry, 

with the A 1ministrat r' approval, shall apply to sales for con umpiion in the United ~tates, it posses ions and territories, only. 

SECTION 2. The Code Authority may inve tigate and inform the 

Presi lent or the A lmini trator, on behalf of the Indu try, as to 

1 See paragraph 2 of order approving this Code. 
518 

importations of competitive materials into the United States in substantial quantities or increasing ratios to domestic production, on 

su h terms or under such conditions as to render ineffective or seriously endanger the maintenance of this Code, and such Code Authority shall make complaint to the President or Administrator, on 

behalf of the Indu try, under the provisions of Section 3 (e) of the 

Act with respect thereto. 

ARTICLE X-MODIFICATIONS 

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

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

provisions of subsection (b) of. Section 10 of the Act, from time to 

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

SECTION 2. Such of the provisions of this Code as are not required 

to be included herein by the Act may, with the approval of the 

Administrator, be modified or eliminated in such manner as may be 

indicated by the needs of the public, by changes in circumstances, 

or by experience. All the provisions of this Code, unless so modified or eliminated, shall remain in effect until June 16, 1935. 

SECTION 3. Violation by any member of this Industry of any of 

the provisions of this Code or any rules or regulations issued hereunder, or of any approved amendment hereof, is a violation of this 

Code. 

ARTICLE XI-:rvioNoroLrns 

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. 

ARTICLE XII-PRICE INCREASES 

"'\iVhereas the policy of the Act to increase real purchasing power 

will be made more difficult of consummation if prices of goods and 

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

increases except such as may be required to meet individual cost 

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

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

costs. 

ARTICLE XIII-EFFECTIVE DATE 

This Code shall become effective on the second :Monday after its 

approval by the President. 

Approved Code No. 409. 

Regi try No. 1630-06. 

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