Registry No. 1637-04 

NATIONAL RECOVERY ADMINISTRATION 

PROP·OSED CODE OF FAIR COMPETITION 

FOR THE 

LAV A MANUFACTURING 

INDUSTRY 

AS SUBMITTED ON AUGUST 30, 1933 

WE DO OUR PART 

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The Code for the Lava Manufacturing Industry 

in its present form merely reflects the proposal of the atiove-mentioned 

industry, and none of the provisions containe~ therein are 

to be regarded as having received the approval of 

the National Recovery Administration 

as applying to this industry 

UNITED STATES 

GOVERNMENT PRINTING .OFFICE 

WASHINGTON : 1933 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents 
SUBMITTED BY 

NATIONAL ASSOCIATION OF LAVA MANUFACTURERS 

(II) 

.. 
AUGUST 30, 1933. 

LETTER OF TRANSMITTAL FROM NATIONAL ASSOCIATION OF LAVA 

MANUFACTURERS 

To ADMINISTRATOR, NATIONAL INDUSTRIAL RECOVERY AcT. 

The production of articles from what is known to the trade as Lava had its 

origin, as regards the United States, in the year 1868. This was the period of 

the development of illuminating gas, and it was found desirable that the flame 

of the gas jet should be regulated by and formed into shape by a noncarbonizing 

burner tip of some noncorrosive mat,erial resistant to heat. It was founcl that 

certain kinds of Steatite, which is a soft mineral, classified as silicate of magnesia, 

could be cut and machined into various size and forms of gas tips, then coming 

into use. These tips were known as "lava" gas tips, perhaps because after the 

tips had been machined and formed in a soft state the material was hardened by 

exposure to heat, at a temperature of approximately 2,000 degrees Fahrenheit. 

The finished product then became very hard and durable, and was eminently 

satisfactory for this purpose. 

With the introduction of the use of electricity in its various forms, a company 

engaged in the manufacture of Lava gas tips found by experiment that the same 

material which was being used in the manufacture of gas tips was capable of 

being used as an electrical insulator, in insulating various metal parts of electrical 

devices. 

Lava as an insulating material must not be confused with or associated with 

other forms of insulating materials. Our product is not suitable for the manufacture of such forms of insulators as knob insulators for telephone and telegraph 

wires or high-tension electric wires; neither is it suitable for cleats and tubes and 

various other forms of wiring insulators, which are manufactured by entirely 

different processes, and entirely different and cheaper materials, such as glass, 

porcelain, bakelite, fibre boards, hard rubber, asbestos, mica, and various other 

forms of insulating materials, none of which have anything whatever in common 

with our product. 

The use of Lava as an insulating material is restricted to small parts which 

are used in the interior construction of certain forms of electrical appliances. 

The production of these factories is not of a character that permits the manufacture of standard articles. The factories operate entirely on orders for special 

parts, no two of which are exactly alike, and all of which are made only after 

receipt of orders for goods exclusively to fit each customer's design. 

1929 conditions cannot be reproduced in 1933 in this particular industry for 

the reason that the bulk of 1929 production was for the then booming radio 

industry. The saturation point in the sale of radio sets has not only been passed 

but even before this occurred the material Lava had been virtually abandoned for 

technical reasons and no new field of comparable volume has been discovered. 

The Lava Industry does not serve the public promiscuously. It makes no 

staple or standardized goods which can be carried in stock. It is therefore helpless as to initiating work for its employees, but, on the other hand, its facilities 

and hours must be flexible enough to serve. swiftly on receipt of actual orders 

which are almost invariably urgent once the customer has settled on design and 

requirement. 

At suitable opportunity the signers will ask special consideration of a reduced 

wage rate for apprentices. 

This code is not designed to promote monopoly, or to eliminate or oppress 

small enterprises, and will not operate to discriminate against them, and will 

tend to effectuate the policy of the title of the ational Industrial Recovery Act. 

Respectfully submitted. 

Attest: 

THE NATIONAL ASSOCIATION OF LAVA MANUFACTURERS, 

By C. S. STEWARD, President. 

(ID) 

R. KIRCHBERGER, 

Secretary. 
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CODE OF FAIR COMPETITION SUBMITTED BY THE NATIONAL ASSOCIATION OF LAVA MANUFACTURERS 

SECTION I 

This code is submitted for and on behalf of manufacturers of Lava 

products constituting one hundred percent of the Lava Industry at 

present existing, hereinafter referred to as the Industry, and who are 

engaged in the manufacture and sale of articles which are known by the 

trade name "Lava." 

SECTION II-DEFINITIONS 

As used herein the term Lava Industry is defined to mean the manufacture, production, and sale in the United States of any or all articles 

the principal ingredient of which is (a) talc, otherwise known as silicate 

of magnesia; (b) silicate of alumina, otherwise known as pyrophyllite; 

(c) or soapstone, for use as an insulating material in the electrical or 

chemical trades, and for use as burner tips for gas, or in burning of oil. 

Every article made and sold by the industry for the purposes enumerated in this section are defined as Lava for the puproses of this 

Code, regardless of whether such article is kilned or is sold in an 

unkilned or soft state. 

SECTION III-LABOR PROVISIONS 

A. As required by Section 7 (a) of Title I of the National Industrial 

Recovery Act the following provisions are conditions of the code: 

(1) 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 selforganization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection; (2) that no 

employee and no one seeking employment shall be required .us 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 (3) that employers shall comply with the maximum hours of 

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

approved or prescribed by the President. 

It is understood that the provisions of subsections (1), (2), and (3) 

of Section 1 of this Article shall not impair in any particular the rights 

of employees to bargain, individually or collectively, as may be mutually satisfactory to them provided they shall otherwise comply with 

the provisions of this code. 

Nothing in the code shall be deemed to prevent the selection, retention, and advancement of employees on the basis of their individual 

merit. 

9107-33 (1) 
2 

B. Prohibition of Child Labor.-On and after the effective date 

employers in the Lava industry hall not employ any minor under the 

age of (16) sixteen year . C. vl age Rates.~The minimum wage for labor shall be not less 

than 30¢ per hour in all territory south of the ~ orthern Boundary of 

Virginia, We t Virginia, Kentucky, and the outhern Boundary of 

Missouri and Kansas, and in all other territory the minimum wage 

rate shall be not less than 37 1⁄2¢ per hour, except that female labor may 

be paid a minimum of not less than 80% of the minimum paid for 

male labor. 

D. Hours of 1,Vork.-The hours of labor in this industry shall not 

exceed 8 hours in any one day and not exceed a total of 40 hours in 

any one week, provided, however, that these limitations hall not 

apply in cases where sea onal or peak demands, unusual and temporary, shall require the operation of the industry a greater number of 

hour than the maximum hours specified herein. 

In case the foregoing su pension of the maximum hours is used by 

any plant in the industry, and in order to effectuate in all respects the 

declared policy of the ational Industrial Recovery Act, each 

employer shall prepare and file with the Executive Committee, 

through the Secretary-Treasurer of the ational Association of Lava 

Manufacturers, on or before the 10th of each month, a statement of 

the additional hours over the maximum herein provided, and the 

number of workmen employed in such seasonal work for the preceding 

month. 

Should the Executive Committee decide that any reports filed by 

a member of the industry indicate a failure to comply with the provisions of this code, the committee shall present the matter to the 

Administrator of the ational Industrial Recovery Act and ask for 

such action as shall be consistent with full compliance with the policy 

of the Act. 

These n1aximum hours shall not apply to tool makers, repair men, 

kiln tenders, watchmen or machine adjusters, or to foremen, superintendents, managers, officials, or other compensated on a regular 

salary ba is; provided, however, that uch regular salary shall not be 

less than $100 per n1onth. 

SECTION IV-PROVISIO s REGARDI JG TRADE PRACTICES 

1. Urijair tfethods of Competition.-The paying of lower wages 

than the minimum wage herein prescribed, or the exaction of the 

hours of labor in exce of the maximum herein pre cribed, shall be 

deemed as unfair methods of competition. 

2. Commercial Bribery.-To gi, e or permit to be given to the agents, 

employee , or repre en.tu.ti, e of cu tomer , or the agents, employees, 

or repre entatives of ompetitor or pro pective custonier , money or 

anything of valu a inducement to au e their employer or principal to purcha e or contra t to purcha e indu try products, or to 

influence uch employer or prin ipal to refrain fron1 dealing or 

contracting to deal with omp ti tor , hall b deemed an unfair method 

of competition. 

3. Rtbate , ub idi , etc.-To mal~ allowance , nch as bonuses, 

rebate , refund , er dit , unearn d di count , or sub idie of any kind, 
3 

whether in the form of money, service, advertising, or otherwise, for 

the purpose of securing business, shall be deemed an unfair method 

of competition. 

:I:·_ Inducing Breach of Contract.-To willfully interfere with any 

existing contract between any other manufacturer and a wholesaler, 

retailer, consumer, or other party, involving or relating to the sale of 

industry products, such interference being for the purpose or with the 

effect of dissipating, destroying, or appropriating, in whole or in part, 

the business represented by such contracts, shall be deemed an unfair 

method of competition. 

5. Defamation of Competitors.-To defame or disparage a competitor, directly or indirectly, by words or acts which untruthfully 

call in question his business integrity, his ability to perform his 

contracts, his credit standing, or the quality of his product, shall be 

deemed an unfair method of competition. 

6. Misrepresentation.-To sell or offer for sale any industry 

product for the purpose of or with the effect of deceiving customers or 

prospective customers as to the quantity, quality, or grade of such 

product, shall be deemed an unfair method of competition. 

7. Consigned Goods.-The shipping of Lava products on consignment shall be deemed an unfair rnethod of competition. 

SECTION V-DESCRIPTION OF INDUSTRY SELF-GOVERNMENT AGENCY 

AND ITS REQUIREMENTS 

The self-governing agency of the industry shall be the Executive 

Committee of the National Association of Lava Manufacturers. 

Any member of the industry shall register any complaint as to the 

violation of any of the provisions of this code with the SecretaryTreasurer of the National Association of Lava Manufacturers, who is 

also Secretary of the Executive Committee. Upon the filing of a 

complaint, the Secretary of the Executive Committee will immediately 

notify the other members of the Executive Committee, who will investigate such complaint and advise the complainant and the defendant of the decision arrived at respecting the complaint. 

Should the decision of the Executive Committee be unacceptable to 

either party, the Executive Committee shall then submit the matter 

in question to the Administrator for an official decision as to the continuance or discontinuance of the alleged violation of the Act. 

Additional Plant Capacity.-ln view of the excess of manufacturing 

capacity over the demand for Lava products even in normal times, 

and the demoralizing effect of this condition on the business and all 

engaged therein, including labor, it shall be an unfair method of competition for any manufacturer during the life of this code to increase the 

aggregate productive capacity of any Lava plant (except process improvements through existing equipment), or for any person, firm or 

corporation to construct any additional Lava plants or kilns, except 

or replacement of existing capacity. 

Nothing in this code shall be construed to apply to a product of 

the American Lava Corporation, known as Alsimag, and containing 

in its composition substantial proportions of other ingredients than 

those enumerated herein. 

Sales Below Cost.-To sell or offer to sell Lava goods at prices 

below the cost of production is a violation of this code. 
UNIVER SITY OF FLO R IDA 

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3 1262 08850 5200 

For the purposes of this code, co t i defined as the total expense 

borne by the manufacturer in producing and selling Lava products. 

In addition to total manufacturing co ts, including depreciation, 

packages, raw materials and tran portation thereof, it shall also 

include adequate allowances for sales, distribution and management 

costs, including promotion, research, advertising, obsolescence, tradeassociation maintenance, interest charges, all contingencies, necessary reserves, a fair return on the capital employed in the business, 

etc., such as are now assumed by the majority of the industry in the 

conduct of its business and is in accordance with thi Code of Fair 

Competition and with the objects of the Act. 

SECTION VI-MANDATORY PRovr IONS OF SECTION 10 (b) OF AcT 

The President may from time to time cancel or modify any order, 

approval, license, rule, or regulation issued under this title; and each 

agreement, code of fair competition, or license approved, prescribed, 

or issued under this title shall contain an express provision to that 

effect. 

SECTIO VII-PROVISIO FOR MODIFICATION 

Application for a change in the provisions of this code may be made 

at any time by any member of the industry, such proposed change to 

be submitted to the Executive Committee of the National Association 

of Lava Manufacturers, through the Secretary-Treasurer of the 

As ociation. 

The Executive Committee shall submit to all members of the 

industry a copy of the proposed modification and it shall require the 

affirmative vote of three fourths of the firms in the industry to approve 

such modification. 

When a proposed modification has received the foregoing approval, 

it will be submitted to the Administrator for approval by the President, and when so approved shall become a part of this code. 

Purpose.-This code is not designed to promote monopoly, or to 

eliminate or oppress small enterprises, and will not operate to discriminate against them, and will tend to effectuate the policy of the 

title of the ational Industrial Recovery Act. 

SECTION VIII-EFFECTIVE DATE 

This code shall become effective for the industry immediately after 

it has been approved by the President of the United States. 

THE NATIONAL AssocrATION OF LAVA MANUFACTURERS, 

By C. s. ' STEWARD, 

P. J. KRUESI, 

R. KrRCHBERGER, 

Code Committee. 

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