Approved Code No. 37-Amendment No. 2 Registry.No. 1013-3-02 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

BUILDERS SUPPLIES TRADE 

AS APPROVED ON OCTOBER 25, 1934 

BY 

· PRESIDENT ROOSEVELT 

WE DO OUR PAR't 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHING TON: 1934 

For sale by the Superintendent of Documents, Wasbinaiton. D. C. - - - - - - - - Price 5 centfl 
This publication is for sale by the Superintendent of Documents, GoYernment 

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

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga. : 504 Post Office Building. 

Birmingham, Ala.: 257 Federal Building. 

Iloston, !\las . : 1801 Customhou~e. 

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, l\Iich.: 801 First National Bank Building. 

Houston, Tex.: Chamber ·of Commerce Building. 

Indianapolis, Ind.: Chnmber of Commerce Building. 

Jack onville, Fla.: .Chamber of Commerce Building. 

Kansas City, l\iio;r: 1028 'Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

l\Iemphis, 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. 

Philaclelphia, Pa.: 422 Commercial Trust Building. 

Pitt burgh, Pa. : Chamber of Commerce Building. 

Portland, Oreg. : 215 'New Post Office Building. 

St. Louis, 1\fo. : 506 Olive Street. 

Snn Francisco, Calif.: 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 37-Amendment No. 2 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

BUILDERS SUPPLIES TRADE 

As Approved on October 25, 1934 

BY 

PRESIDENT ROOSEVELT 

EXECUTIVE ORDER 

AMENDED CODE OF FAIR COMPETITION FOR THE BUILDERS SUPPLIES 

TRADE 

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 approval of an 

amended Code of Fair Competition for the Builders Supplies Trade, 

and hearings having been held thereon and the National Industrial 

Recovery Board having rendered their report containing an analysis 

of the said amended Code of Fair Competition together with their 

recommendations and findings with respect thereto, and the National 

Industrial Recovery Board having found that the said amended 

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 have been 

met: 

NOW THEREFORE, I, Franklin D. Roosevelt, President of the 

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

National Industrial Recovery Act, approved June 16, 1933, do hereby 

incorporate by reference said annexed report and do find that the 

Code as constituted, after being amended, complies in all respects 

with the pertinent provisions and will promote the policy and purposes of said Title of said Act, and do hereby order that the Code 

as amended be and it is hereby approved, and that the previous 

approval of said Code is hereby modified to include an approval of 

said Code in its entirety as amended. 

FRANI{LIN D. ROOSEVELT. 

Approval recommended: 

NATION AL INDUSTRIAL RECOVERY BOARD, 

By G. A. LYNCH, Administrative Officer. 

THE WHITE HousE, 

October 25, 1934. 

93643°-~244-98-34 (1) 
LETTER OF TRANSMITTAL 

The PRESIDENT, 

The White House. 

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

Builders Supplies Trade of the United States, as amended, the hearings having been held in Washington, D. C., on July 26, 1934, and on 

August 9, 1934, in accordance with the policies of the National 

Recovery Administration. 

Your approval of this Code, as amended, will have the effect of 

promulgating a new Code for the Trade, which it is estimated 

employs in excess of 50,000 persons. 

This Code, as amended, is sponsored by the National Federation 

of Builders Supply Associations which is empowered by the Code 

of Fair Competition for the Builders Supplies Trade Industry to 

propose amendments. 

The principal change in this Code, as amended, is the establishment of an open price policy which coincides with the policy or the 

National Recovery Administration. As amended, this Code contains 

a prohibition against the handling of goods which have not been 

purchased from a vendor who does not represent that he is complying with his respective Code of Fair Competition. . The Deputy Administrator in his final report to the National 

Industrial Recovery Board on said amendments to said Code having 

found as herein set forth and on the basis of all the proceedings in 

this matter; 

It finds that: 

(a) The amendments to said Code and the Code as amended are 

well designed to promote the policies and purposes of Title I of the 

National Industrial Recovery Act including the removal of obstructions to the free flow of interstate and foreign commerce which tend 

to diminish the amount thereof, and will provide for the general 

welfare by promoting the organization of industry :for the purpose 

of cooperative action of labor and management under adequate governmental sanction and supervision, by eliminating unfair competitive practice, by promoting the :fullest possible utilization of the 

present productive capacity of industries, by avoiding undue restriction of production ( except as may be temporarily required), by 

increasing the consumption of industrial and agricultural products 

through increasing purchasing power, by reducing and relieving 

unemployment, by improving standards of labor, and by otherwise 

rehabilitating industry. 

(b) The Code as amended complies in all respects with the pertinent provisions of said Title of said Act, including without limitation sub-section (a) of Section 3, sub-section (a) of Section 7 and 

sub-section (b) of Section 10 thereof. 

(2) 
3 

( c) The Code empowers the National Federation of Builders Supplies Associations to present the aforesaid amendments on behalf of 

the Trade as a whole. 

( d) The amendments and the Code as amended are not designed 

to and will not permit monopolies or monopolistic practices. 

( e) The amendments and the Code as amended are 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 

amendments. 

For these reasons, this Code, as amended, is recommended for 

approval. 

For the National Industrial Recovery Board: 

OCTOBER 25, 1934. 

G. A. LYNCH, 

Awministrative Officer. 
AMENDED CODE OF FAIR COMPETITION FOR THE 

'BUILDERS SUPPLIES TRADE 

To effe~t the policies of Title I of the National Industrial Recovery 

Act, this Code is established as a Code of Fair Competition for the 

Builders Supplies Trade and its provisions shall be the standards 

of fair competition for such Trade' and be binding upon every member thereof. 

I. DEFINITIONS 

1. Builders Supplies.-The term "Builders Supplies" as used 

herein is broadly defined as those products used in building and 

construction work and commonly designated as fire resistant. The 

term "Builders Supplies" as used herein specifically comprehends 

the following products: 

Brick l\!Iortars, Casement and Steel Sash, Cement and Cement 

Products, Cement Pipe, Ceramic Tile, Clay Roof Tile, Common 

Brick, Cut Stone, Dampers and Fireplace Accessories, Drain Tile, 

Face Brick, Fire Brick and Clay, Glazed Structural Tile, Gypsum 

Products, I-Iollow Tile, Lime and Lime Products, Mesh Reenforcement, Metal Lath and kindred products, Mineral Aggregates, Mortar 

and Cement Colors, Mold'ing Plasters, Roof and Flooring Slates, 

Sewer Pipe, Flue Lining and other Clay Products, Structural Terra 

Cotta and Waterproofing Compounds. 

2. Member of the T1·ade.-The term "member of the Trade" as 

used herein includes any individual, partnership, association, corporation, or other form of enterprise engaged in the Trade, either 

as an employer or on his or its own behalf. 

3. Volivnta'f'y Agreement Member.-The term "Voluntary Agreement :Member" shall include any member of the Trade who shall 

have become a member of the agTeement as hereinafter provided in 

Article VIII. 

4. Builders supplies trade.-The term "Builders Supplies Trade" 

or "Trade" as used herein includes the selling and/or distributing 

to contractors or consumers of any or all builders supplies hereinabove defined. In the event that the application of this section is 

the subject of a dispute with a member of any other trade or industry 

subject to any other Code of Fair Competition which purports to 

have jurisdiction over the sale of any builders supplies, approvrd 

pursuant to the provisions of the National Recovery Act, this section 

shall not apply to members of such other trade or industry until 

such time as the dispute has been reviewed and determined by the 

procedure established in Article VI, Section 10, Subsection ( c), and 

the finding reached makes this section applicable. 

5. Employee.-The term " employee " as used herein includes any 

and all persons engaged in the Trade, however compensated, except 

a member of the Trade. 

(4) 
5 

6. Employer.-The term " employer " as used herein includes any 

one by whom any such employee is compensated or employed. 

7. Code Authority.-The term" Code Authority" as used throughout this Code refers to the Administrative Committee of this Code 

as established in Article VI hereof. 

8. Federation.-The term "Federation" as _used herein shall mean 

the National Federation of Builders Supply Associations. The 

term "federated group " shall mean any association or group federated with the National Federation of Builders Supply Associations. 

9. President, Act and the Board.-The terms "President", "Act" 

and " Board " as used herein mean respectively, the President of the 

United States, Title I of the National Industrial Recovery Act and 

the National Industrial Recovery Board. 

10. Competitive area.-For the purpose_ of administering this 

Code, a " Competitive Area" is defined as an economic market having such geographical boundaries as shall be accepted and approved 

by a truly representative group of members of the Trade doing 

business therein, but subject to review and approval by the Code 

Authority and to approval by the National Recovery Administration. 

11. Population.-Population for the purpose of this Code shall 

be determined by reference to the ·latest Federal Census. · 

II. RIGHTS OF LABOR 

1. (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. 

(c) Employers shall comply with the maximum hours of labor, 

minimum rates of wages, and other conditions of employment 

approved or prescribed by the President. 

2. An employer shall so administer work in his charge as to provide the maximum practicable continuity of employment for his 

work force. 

III. Houns OF LABOR 

1. No employee shall be permitted to work in excess of forty ( 40) 

hours in any one week, or eight (8) hours in any one day, except as 

herein otherwise provided. 

2. Exceptions as to hours.-(a) The provisions of this Article 

shall not apply to outside salesmen, night and Sunday watchmen, to 

one branch yard manager for each branch yard and to persons employed in a managerial or executive capacity who earn regularly 

thirty-five dollars ($35.00) per week or more. 

(b) Employees of members of the Trade employing not more 

than ,two (2) persons, in towns or places of less than 2,500 population, which towns and _ _places are not part of a large trading area, 

as defined in Article IV, may be permitted to work forty-eight ( 48) 
6 

hours in any one week if at least sixty-six and two-thirds percentage 

of the sales volume of said members of the Trade is to persons 

engaged in agriculture; such employees may be permitted to work 

in excess of forty-eight ( 48) hours in any one week, provided that 

they are paid not less than one and one-half times their normal 

rate of pay for all hours worked in excess of forty-eight ( 48) hours 

in any one week. 

( c) Yard foremen, truck drivers and their helpers may be permitted to work forty-four ( 44) hours in any one week witho11t the 

payment of overtime and may be permitted to work forty-eight ( 48) 

hours in any one week, provided that they are paid not less than one 

and one-half times their normal rate of pay for all hours worked 

in excess of forty-four ( 44) hours in any one week. 

( d) The Code Authority shall submit within thirty ( 30) davs 0f 

the approval of this Code as amended, a report which specjfically 

outlines the possibilities of establishing a daily limitation of hours 

for all classes of employees and of revismg Article III, Section 2 (a) 

and ( c) so that hourly restrictions will apply to the watchmen. al] 

branch yard managers, yard foremen, truck drivers and their helpers. 

3. Stam,dard W eek.-Except as to night and Sundav writ-<'hmen. no 

employee shall be permitted to work more than six ( 6) days in any 

seven (7) day period. 

4. Employment by Several, Employers.-N o employer shall knowingly permit any employee to work for any time which, when added 

to the time spent at work for another employer or employers in this 

Trade or any other trade or industry, exceeds the maximum permitted 

herein. 

IV. RATES OF w AGES 

1. No employee shall be paid in any period less than the minimum 

rates per hour hereinafter set forth, except as herein otherwise pro- . vided; the minimum rate per hour herein provided shall be applicable 

to the immediate trade area of cities as defined by the Chamber of 

Commerce or similar civic body of such cities: 

Region no. 

1 ..... ·-·······-····--··--·-······-·--·-··--··--·-·-·-·-··-··-··--·· 2 ••• ·--······-·-·-·-······--······-··---····---··-··----·········-·· 

3 •• ·-···--------·---····-·-·-·-·-····-·--·--·-----·---·--·------·-·· 4 •••• ·--········-···--·----··---·····--····-···-----··-··-·-·-····-· 

Cities of less .. Cities of than 500,000 Cities or 500,000 population places of 

population and more 75,o09 popu• or more than 75,000 lation or population less 

Cents Cents Cent3 

35 30 25 

40 35 30 

45 40 35 

60 ···---·-···· ··--·---··-· 

2. (a) Region No. 1 includes the States of: Alabama, Georgia, 

Florida, North Carolina, South Carolina, I{entucky, Louisiana. Mississippi, Tennessee, Texas, Virginia, West Virginia, Arkansas, New 

Mexico and Arizona. 

(b) Region No. 2 includes the States of: Delaware, Maryland, 

Colorado, Wyoming, Oklahoma, Utah, Montana, Idaho, Washington, Oregon, Nevada, and Counties of Santa Barbara, Ventura, Los 

Angeles, Orange, San Diego, Imperial and San Benardino of the 

State of California, and the District of Columbia. 
7 

( c) Region No. 3 includes the States of: Illinois, Indiana, Pennsylvania, New Jersey, Nebraska, New York (except New York City), 

Vermont, New Hampshire, Maine, Massachusetts, Connecticut, Rhode 

Island, Minnesota, North Dakota, South Dakota, Iowa, Ohio, Missouri, I(ansas, Wisconsin, Michigan and all counties of California 

not included in Region No. 2. 

( d) Region No. 4 includes the City 0£ New York. 

3. Clerical and office employees subject to the provi ions of Article 

III, Section 2, subsection (b) hereof, shall be paid not less than 

twelve dollars ($12.00) per forty-eight (48) hour week, clerical and 

office employees in cities of 500,000 population or more shall be paid 

not less than at the rate of twenty dollars ($20.00) per week; in 

cities of less than 500,000 population and more than 75,000 population, not less than at the rate of fourteen dollars ($14.00) per week; 

and in cities and places of 75,000 population or less, not less than 

at the rate of twelve dollars ($12.00) per week. Truck drivers in 

cities of 2,500,000 population or more shall be paid not less than at 

the rate of 75 cents per hour. 

4. This Article establishes minimum rate of pay which shall apply, 

irrespective of whether an employee is actually compensated on a 

time rate, piece work or other basis. 

V. GENERAL LABOR AND OTHER PROVISIONS 

1. No person under eighteen (18) years of age shall be employed 

in this Trade, except as office boys, office girls or messengers. No 

person under sixteen (16) years of age shall be employed in this 

Trade in any capacity. In any state an employer shall be deemed 

to have complied with the e provisions as to age, if he shall have on 

file a certificate or permit, duly signed by the Authority in such state 

empowered to issue employment or age certificates or permits 

showing that the employee is of the required age. 

2. Every employer shall provide for the safety and health of 

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

Standards for safety and health shall be submitted by the Code 

Authority to the Board within sixty (GO) days after the effective 

date -hereof, and upon their approval by the Board shall con titute 

integral parts of this Code. 

3. No provisions in this Code shall supersede any State or Federal 

Law which imposes on employers more tringent 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. 

4. All employers shall post and keep po. tecl copies of this Code in 

con picuous places accessible to all employees. Every member of 

the Trade shall comply with all rule an l regulations relative to the 

posting of provisions of Codes of Fair Competition which may from 

time to time be prescribed by the Boar L 

5. No employer shall reclassify employees or dutie of occupation 

performed or engage in any other subterfuae o as to def at the 

purpo es or provisions of the Act or of this Code. 

6. No employer shall di mis or demote any employee for making 

a complaint or giving evidence with re pect to an alleged violation 

of the provisions of this Code. 

93643 °-1244-98-.-34-2 
8 

7. Female employees performing substantially the same work as 

male employees shall receive the same rate of pay as male employees. 

8. A person whose earning capacity is limited because of age or 

physical or mental handicap or other infirmity may be employed on 

light work at a wage below the minimum established by this Code 

jf the employer obtains from the State authority designated by the 

United States Department of Labor a certificate authorizing his 

employment at such wages and for such hours as shall be stated 

in the certificate. Each employer shall file monthly with the Code 

Authority a list of all such persons employed by him, showing the 

wag,2s paid to, and the 1naximum hours of work for such employees. 

VI. ADMINISTRATION 

1. A Code Authority is hereby established consisting of not more 

than nine ( 9) trade members to be selected in the following manner: 

Seven (7) members shall be elected by the Directors of the National 

Federation of Builders Supply Associations with the approval of 

the Board, and two (2) members shall be elected to represent the 

non-members of federated groups. In the event that the non-members of federated groups fail to elect two (2) members to represent 

them, they may be appointed by the National Recovery Administration. 

2. In addition to membership as above provided, there may be 

three (3) members, without vote, to be known as Administration 

members, to be appointed by the Board to serve for such terms as 

the Board may specify. 

3. Each trade or industrial association directly or indirectly participating in the selection or activities of the Code Authority shall 

(1) impose no inequitable restrictions on membership, and (2) submit to the Board true copies o:f its articles of association, by-laws, 

regulations, and any amendments when made thereto, together with 

such other information as to membership, organization, and activities 

as the Board may deem necessary to effectuate the purposes of the 

Act. 

4. In order that the Code Authority shall be at all times truly 

representative of the Trade and in other resrects comply with the 

provisions of the Act, t he Board may prescribe such hearings as it 

n1ay deem proper; and thereafter if it 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 

111odification of the Code Authority. 

5. Nothing contained in this Code shall con titute the members 

of the Code Authority partners for any purpo. e. Nor shall any 

nie.mber of the Code Authority be liable in any manner to anyone 

for any act of any other member, officer, agent or employee of the 

Code Authority. Nor shall any member of the Code Authority, exercising reasonable diligence in the conduct of his duties hereunder, 

be liable to anyone for any action or omission to act under this Code, 

except for his own wilful malfeasance or nonfeasance. 

6. If the Board shall at any time determine that any action of the 

Code Authority or any agency thereof may be unfair or unjust or 

contrary to the public interest, the Board rn.ay require that such 

action be suspended to afford an opportunity for investigation of 
9 

the merits of such action and further consideration by such Code 

Authority or agency pending final action which shall not be effective 

unless the Board approves or unless it shall fail to disapprove after 

thirty (30) days' notice to it of intention to proceed with such action 

in its original or modifie.d form. 

7. Subject to such rules and regulations as may be issued by the 

Board, the Code Authority shall have the following powers and 

duties, in addition to those authorized by other provisions of this 

Code; 

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

provide for the compliance of the Trade with the provisions of the 

Act. 

(b) To adopt by-laws and rules and regulations for its procedure. 

( c) To obtain from members of the Trade such information and 

reports as are required for the administration of the Code. In addition to information required to be submitted to the Code Authority, 

members of the Trade subject to this Code shall furnish such statistical information as the Board may deem necessary for the purposes 

recited in Section 3 (a) of the Act to such Federal and State 

agencies as it may designate; provided that nothing in this Code 

shall relieve any membe.r of the Trade of any existing obligations to 

furnish reports to any Government agency. No individual report 

shall be disclosed to any member of the Trade or any other party 

except to such other governmental agencies as may be directed by 

the Board. 

( d) To use such trade associations and other agencies as it deems 

proper for the carrying out of any of its activities provided for 

herein, provided that nothing herein shall relieve the Code Authority 

of its rights, duties or responsibilities under this Code and that such 

trade associations and agencies shall at all times be subject to and 

comply with the orders of the Code Authority and of the National 

Recovery Administration. 

( e) To make recommendations to the Board for the coordination 

of the administration of this Code and such other Codes, if any, as 

may be related to or affect members of the Trade. 

(f) (1) It being found necessary in order to support the administration of this Code and to maintain the standards of fair competition established hereunder and to effectuate the policy of the Act, the 

Code Authority is authorized: 

(A) To incur such reasonable obligations as are necessary and 

proper for the foregoing purposes, and to meet such obligations out 

of funds ,vhich may be raised as hereinafter provided and which 

shall be held in trust for the purposes of the Code. 

(B) To submit to the Board for its approval, subject to such notice 

and opportunity to be heard as it may deem necessary ( 1) an itemized 

budget of its estimated expenses for the foregoing purposes, and (2) 

an equitable basis upon which the funds necessary to support such 

budget shall be contributed by members of the Trade; 

(C) After such budget and basis of contribution have been 

approved by the Board, to determine and obtain equitable contribution as above set forth by all members of the Trade, and to that end, 

if necessary, to institute legal proceedings therefor in its own name. 
10 

(2) Each member of the Trade shall pay his or its equitable contribution to the expenses of the maintenance of the Code Authority, 

determined as hereinabove provided, and subject to rules and regulations pertaining thereto i sued by the Board. Only members of 

the Trade complying with the Code and contributing to the expenses 

of its administration as hereinabove provided, unle s duly exempted 

from making such contribution , shall be entitled to participate in 

the selection of members of the Code Authority or to receive the 

benefits of any of its voluntary activities or to make use of any 

emblem or insignia of the National Recovery Administration. 

(3) The Code Authority shall neither incur nor pay any obligation substantially in excess of the amount thereof as e timated in its 

approved budget, and shall in no event exceecl the total amount contained in the approved budget, except upon approval of the Board; 

and no subsequent budget shall contain any deficiency item for expenditures substantially in excess of prior budget estimates excepc 

those which the Board shall have so approved. 

(g) To recommen l to the Board any action or mea ures deemed 

advisable, including further fair trade practice provisions to govern 

members of the Trade in their relations with each other or with 

other trades or industries; measures for industrial planning, and 

stabilization of employment; and including modifications of this 

Code which shall become effective as part hereof upon approval by 

the Board after such notice and hearing as it may specify. 

(h) To appoint a Trade Practice Committee which shall meet 

with the Trade Practice Committees appointed under such other 

Codes as may be related to the Trade for the purpose of formula.ting 

fair trade practices to govern the relationships between employers 

under this Code and under such other Codes to the end that such 

fair trade practices may be proposed to the Board as amendments 

to this Code and such other Codes. 

(i) To provide appropriate facilities for arbitrat1;:m, and subject 

to the approval of the Board, to prescribe rules of procedure and 

rules to effect compliance with awards and determinations. 

8. To approve and submit for the approval of the Board, rules 

and regulations proposed by truly representative groups of members 

of the Trade in any competitive areas, provided that such rules and 

regulations are not inconsistent with this Code. Upon approval 

by the Board, after such notice and hearings as it may prescribe, 

such rules and regulations shall constitute integral parts of this Code 

and be binding upon all members of the Trade operating in such 

competitive areas. 

9. (a) For the administration of this Code, in the case of members of the Trade, whether in whole or in part, who are members of 

the National Retail Lumber Dealers Association but who are not 

also members of a federated group of the National Fech ration of 

Builders Supply Associations, the Code Authority shall appoint as 

its agent or representative the same agent or representative as shall 

have been appointed by the Code Authority for the Code of Fair 

Competition for the Retail Lumber, Lumber Products, Building 

Material and Building Specialties Trade for the administration o:f 

the Code of Fair competition for which it is the controlling 

authority. 
li 

(b) When the administration of this Code is delegated by the 

Code Authority of this Code to the agent appointed by the Code 

Authority for the Code of Fair Competition for Retail Dealers in 

Lumber, Lumber Products, Building Material, and Building Specjalties, the pro rata cost of Administration shall be the same as 

for all other dealers in Builders Supplies but shall be paid to the 

last-mentioned Code Authority to be used by them in the Administration of this Code. 

10. (a) To appoint within each federated group, in cooperation 

with the appropriate division under the Code of Fair Competition 

for the Retail Lumber, Lumber Products, Building Material and 

Building Specialties Trade, a joint Explanation Committee, with 

E::qual representation, of such number as may be deemed advisable. 

This Committee shall be empowered to expla1n the provisions of the 

trade practice rules of the Code of Fair Competition for the Retail 

Lumber, Lumber Products, Building Material and Building Specialties Trade and of this Code insofar as such rules affect members of 

the Retail Lumber, Lumber Products, Building Material and Building Spe· ialties Trade and members of the Builders Supplies Trade. 

The explanations of this Joint Committee shall be subject to appeal 

as hereinafter provided. 

(b) The Code Authority shall aJ?point a National Joint Explanation Committee in cooperation w1th the Code Authority for the 

Retail Lumber, Lumber Products, Building Material and Building 

Specialties Trade, with equal representation, of such number as the 

two Code Authorities shall jointly determine. This Committee shall' 

review appeals from the explanations of the Joint Explanation Committees appointed within the federated groups. The findings of such 

N ationa.l Joint Explanation Committee shall be subject to review as 

may be prescribed by the Board in accordance with the law 

( c) In the event of any disputes concerning the jurisdiction of this 

Code, the Code Authority shall appoint a committee to meet with a 

similarly appointed Committee of any related industry or trade, and 

when so meeting to act as a Coordination Board to adjust disputes as 

to the jurisdiction of the respective Codes. Each trade or industry 

shall be equally represented. In addition to the representatives appointed by the respective Code Authorities, each Coordination Board 

may elect one additional member, or, upon failure so to select, one 

additional member may be appointed by the Board, but such member shall have authority to vote only in the event of a tie. A determination of such Coordination Board shall be forwarded immediately to the National Recovery Administration and shall become 

effective upon approval thereby. In the event such Coordination 

Board fails to act or agree, the matter shall be submitted to the 

Board for final determination. 

VII. VoLUNTARY AGREEMENT MEMBER 

Recognizing that the violation by a member of any provision of 

this Code will disrupt the normal course of fair competition in the 

Trade and cause serious damage to others, and that it will be impossible accurately to determine the amount of such damage, it is 

hereby provided that those members who may desire to do so may 
12 

ente~ ~nto an agreement among themselves embodying the following 

prov1s10ns : 

1. Each member violating any provision of this Code shall pay 

to the Treasurer of the Code Authority, as an individual and not as 

Treasurer, in trust, as and for liquidated damages, upon determination of violation by the Board, or any impartial agency or person 

nominated by the Code Authority or designated by the Assenters 

to this agreement and approved by the Board, amounts as set forth 

below: 

(a) For the violation of any wage provision, an amount equal to 

the difference between the wages which have been paid and the 

wages which would have been paid if the member had complied whh 

the applicable provisions of the Code; 

(b) For the violation of any hour provision, an amount equal to 

the wages payable for the overtime at the regular rate payable under 

the terms of the Code, to the employee who worked overtime; 

( c) For the violation of any labor provision of the Code other 

than an hour or wage provision, one hundred dollars; 

( d) For the .violation of any provision of the Code ( other than 

a labor provision) involving a transaction incidental to or connected 

with a sale of any product of the Trade, an amount equal to thirty 

(30) per cent of the actual selling price of the product sold in 

violation of any such provision, or of the price at which the product 

should have been sold under the Code, if determinable, whichever is 

the higher; 

( e) For the violation of any provision of the Code ( other than a 

labor provision) not involving a transaction incidental to or connected with a sale of any product of the Trade, one hundred dollars. 

2. All amounts so paid to or collected by the Treasurer of the Code 

Authority, under the provisions of this Article, shall be applied by 

him as follows: First, if the violation shall have been of a labor 

provision of the Code, equitable distribution of all damages paid 

therefor shall be made among all employees directly affected by such 

violation; second, if the violation shall have been of a code provision 

other than a labor provision, the damages arising therefrom shall be 

utilized to defray proper expenses of code administration, and the 

balance, if any, remaining in the hands of the Treasurer shall be 

distributed semi-annually among members of the Trade who have 

assented hereto and who have not been determined to have been 

guilty of a violation of a code provision during the preceding semiannual period, on the basis of the most recent assessment made 

against members of the Trade for the expense of code administration. 

3. Assent to this Article by any member shall be evidenced by a 

signed statement signifying assent, filed with the Code Authority. 

Failure to assent to this Article shall not deprive any member of any 

other right or privilege under the Code. By so assenting, each 

member agrees with every other member and the Treasurer, individually, ( 1) that violation of a code provision shall breach this 

agreement and shall render the violator liable for the payment of 

liquidated damages as herein provided, (2) all rights and causes of 

action arising hereunder are assigned to the Treasurer, individually 

and in trust, and (3) that the Treasurer, as such assignee and as 

attorney in fact for each assenting member, may take all proper legal 

action concerning q.amages found due hereunder. 
13 

4. The Code Author,ity may waive liability for payment of liquidated damages for any violation it finds to have been innocently 

qlade and re5ulting in no material injury. 

5. The Treasurer of the Code Authority, as an individual, and 

not as 'l'rea.,5urer, by accepting office, accepts the trust established by 

this contract and agrees to perform the duties of Trustee hereunder 

until his successor in office may have been appointed. 

6. ,Nothing contained herein shall be construed or applied to (a) 

deprive any person of any right or right of action arising out of 

this: 1Code, or (b) relieve any member of the Trade from any contractual or legal obligations arising out of this Code or of the Act 

or otherwise; nor shall violation o.f this agreement by an a.ssenting 

member be deemed a violation of the Code, so as to subject the violator to any consequence arising under Section 3 (b), Section 3 ( c), 

or Section 3 ( f) of the National Industrial Recovery Act, nor to 

any criminal prosecution of any kind. 

VIII. AFFrnA VITS OF COMPLIANCE 

- E_ach member of the Trade shall submit to the Code Authority 

o·r· its authorized agent upon demand, but not more frequently than 

mon,thly, a;n affidavit properly executed before a Notary Public, certifying that he has complied with the provisions of this Code setting forth the schedule of rates of wages, hours of labor, and maintenance of all other rules as set forth within this Code. These affidavits shall be filed with the Code Authority and shall be available 

at all times .to the inspection of the N a~ional Industrial Reco_very 

Board. 

IX. · OPEN PRICE, CosTs AND PRICE CUTTING, AND CosT FINDING 

AND ACCOUNTING 

l. Open Price.-( a) Each member o:f the Trade shall file with a 

confidential and disinterested agent of the Code Authority, or if 

none, then with such an agent designated by the Board identified 

lists .of all of his prices, discounts, rebates, allowances, and all other 

terms or conditions of .sale, hereinafter in this article referred to 

as "price terms", which lists shall completely and accurately conform to and represent the individual pricing practices of said member. Such lists shall contain the price terms for all such standard 

products of the Trade as are sold or offered for sale by said member 

and for such non-standard products of said member as shall be 

designated by the Code Authority. Said price terms shall in the 

first instance be filed within ten (10) days after the effective date 

of this provision. Price terms and revised price terms shall become 

effective immediately upon receipt thereof by said agent. Immediately upon receipt thereof, said agent shall by telegraph or other 

equally prompt means notify said member of the time of such receipt. 

Such lists and provisions, together with the effective time thereof, 

shall upon receipt be immediately and simultaneously distributed 

to all members of the Trade and to all of their cu;;tomers who have 

applied therefor and have offered to defray the cost actually incurred 

by the Code Authority in the preparation and distribution thereof 

and be available £or inspection by any of their customers at the 
14 

office of such agent. Said lists or revisions or any part thereof shall 

not be made available to any person until released to all members of 

the Trade and their customers, as aforesaid; provided, that prices 

filed in the first instance shall not be released until the expiration 

of the aforesaid ten (10) day period after the effective date of 

this provision. The Code Authority shall maintain a permanent 

file of all price terms filed as herein provided, and shall not destroy 

any part of such records except upon written consent of the Board. 

Upon request the Code Authority shall furnish to the Board or. any 

duly designated agent of the Board copies of any such lists or 

revisions of price terms. 

(b) vVhen any member of the Trade has filed any revision, such 

member shall not file a higher price within forty-eight ( 48) hours. 

( c) No member of the Trade shall sell or offer to sell any products/ 

services of the Trade for which price terms have been filed pursuant to the provisions of this Article, except · in accordance with 

such price terms. 

( d) No member of the Trade shall enter into any agreement, 

understanding, combination or conspiracy to fix or maintain price 

terms nor cause or attempt to cause any member of the Trade to 

change his price terms by the use of intimidation, coercion2 or any 

other influence inconsistent with the maintenance of the tree and 

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

2. Costs and Price Owting.-(a) The standards of fair competition for the Trade with reference to pricing practices are declared 

to be as follows : 

(1) Wilfully destructive · price cutting is an unfair method of 

competition and is forbidden. Any member of the Trade or of any 

other trade or industry or the customers of either may at any time 

complain to the Code Authority that any filed price constitutes 

unfair competition as destructive price cutting, imperiling small 

enterprise or tending toward monopoly or the impairment of code 

wages and working conditions. The Code Authority shall within 

five ( 5) days afford an opportunity to the member filing the price to 

answer such complaint and shall within fourteen (14) days m=:i,ke a 

ruling or adjustment thereon. If such ruling is not concurred in by 

either party to the complaint, all papers shall be referred to the 

National Recovery Administration and a report thereon shall be 

made to the Board. 

(2) When no declared emergency exists as to any given product, 

there is to be no fixed minimum basis for prices. It is intended that 

sound cost estimating methods should be used and that consideration 

should be given to costs in the determination of pricing policies. 

(3) When a~ emergency exists as to any given product, sale 

below the stated minimum price of such product, in violation of 

Subsection (b) hereof, is forbidden. 

(b) Emergency Provisions : 

(1) If the Board, after investigation shall at any time find both 

(1) that an emergency has arisen within the Trade adversely affecting small enterpri~es or wages or labor conditions, or tending toward 

monopoly or other acute conditions which tend to defeat the purposes of the Act; and (2) that the determination of the stated minimum price for a specified product/service within the Trade for a. 
15 

limited period is necessary to mitigate the conditions constituting 

the emergency and to effectuate the purposes of the Act, the Code 

Authority may cause an impartial agency to investigate costs and 

to recommend to the Board a determination of the stated minimum 

price of the product/service affected by the emergency and thereupon 

the National Indu trial Recovery Board may proceed to determine 

such stated minimum price. 

(2) "\Vhen the Board shall have determined such stated minimum 

priee for a specified product/service for a stated period, which price 

shall be reasonably calculated to mitigate the conditions of such 

emergency and to effectuate the purposes of the National Industrial 

Recovery Act, it shall publish such price. Thereafter, during such 

stated period, no member of the Trade shall sell such specified products at a net realized price beiow said stated minimum price and any 

such sale shall be deemed destructive price cutting. From time to 

time, the Code Authority may recommend review or reconsideration 

or the Board may cause any determinations hereunder to be reviewed 

or recon -idered and appropriate action taken. 

3. Cost Finding amd Accounting.-(a) Cost Finding.-The Code 

Authority . hall cause to be formulated methods of cost finding and 

accounting capable of use by all members of the Trade, and shall 

submit such methods to the Board for review. If approved by the 

Board, full information concerning such methods shall be made 

available to all members of the Trade. Thereafter, each member of 

the Trade shall utilize such methods to the extent found practicable. 

Nothing herein contained shall be construed to permit the Code 

Authority, any agent. thereof, or any member of the Trade to sug.:. 

gest uniform additions, percentages or differentials or other uniform 

items of cost which are designed to bring about arbitrary uniformity of costs or prices. 

X. RULES OF FAIR PRACTICE 

1. No member of the Trade shall secre.tly offer or make any payment or allowance of rebate, refund, commission, credit, unearned 

discount, or excess allowance, whether in the form of money or 

otherwise, nor shall a member of the Trade secretly off er or extend 

to any customer any special service or privilege not extended to all 

customers of the same class, for the purpose of influencing a sale. 

2. Uniform contracts and maximum terms of sale for each competitive area may be established by the Code Authority or its authorized agent after approval thereof by the Board, and any deviation from these contracts or any terms of sale in excess of such 

maximum terms shall constitute an unfair competitive practice. 

3. No member of the Trade shall accept any secret rebate, refund, 

commission, credit, unearned discount, or excess allowance, whether 

in the form of money or otherwise, not extended to all members of 

the Trade of the same class under like terms and conditions. 

4. No member of the Trade shall defame a competitor by falsely 

imputing to him dishonorable business conduct, inability to perform 

contracts, questionable credit standing, or by other false representation, or by falsely disparaging the grade or quality of his goods. 
16 

5. No member of the Trade shall wilfully induce or attempt to 

induce the breach of existing contracts between competitors and 

their customers by any false or deceptive means, or interfere with or 

obstruct the performance of any such contractual duties or services 

by any such means, with the purpose and effect of hampering, injuring or embarrassing competitors in their business. 

6. No member of the Trade -shall give, permit to. be given, or 

directly offer to give, anything of value for the purpose of influencing 

or rewarding the action of any employee, agent, or representative 

of another in relation to the business of the employer of such employee, the principal of such agent or the represented party, without 

knowledge of such employer, principal or party. This provision 

shall not be construed to prohibit free and general distribution of 

articles commonly used for advertising except so far as such articles 

are actually used for commercial bribery as hereinabove defined. 

7. No member of the Trade shall induce a competitor's salesman or 

credit man to leave his employment for the purpose of injuring a 

competitor's business. . 

8. No member of the .Trade shall publish advertising ( whether 

printed, radio, display, or of any other nature) which is misleading 

or inaccurate in any material particular, nor shall any member of the 

Trade in any way misrepresent any builders supp lies ( including, but 

without limitation, its use, trade mark, grade, quantity, quality, 

origin, size, substance, character, nature, finish, material content or 

preparation) OT credit terms, values, · policies, services, or the nature 

or form of the business conducted. 

: 9. No member of the Trade shall agree or guarantee to fu·rnish 

sufficient quantities of builders supplies for any building or construction operation at a lump sum price. 

10. No member of the Trade shall knowingly withhold from or 

insert in any quotation or invoice any statement that makes it inaccurate in any material particular. 

11. No member of the Trade shall publish or circulate unjustified 

or unwarranted threats of legal proceedings which tend to or have 

the effect of harassing competitors or intimidating their customers. 

12. No member of the Trade shall handle any builders supplies 

(1) which either do not comply with any and all standards, including, without limitation, standards as to quality, quantity, size and/or 

performance, as well as any and all labeling requirements, incorporated in the separate approved codes of industries/ trades relating 

to such products as are handled by members of this Trade, or (2) 

which do not bear indication that they are non-standard, when standards have been adopted for the types in question, or (3) which have 

not either been manufactured or sold by a vendor who does not represent that he is in full compliance with the approved code of fair 

competition, applicable to the industry or trade in which the vendor 

is engaged, nor shall any member of the Trade sell or offer to sell 

any goods to any contractor or consumer who has failed to comply 

with his respective code; provided that no member of the Trade, 

exercising due diligence in such handling of builders sup-plies to 

comply with the provision hereof, shall be deemed in v10lation 

hereof. Delivery of a certificate of such vendor that he or it is complying in every particular with the code of fair competition appli-
17 

cable to such vendor, the display of proper N. R. A. insignia or the 

publication in a newspaper or periodical of general criculation of 

such certificate of compli::mce or insignia shall constitute a good and 

sufficient representation of compliance hereunder. 

(a) Upon application, or upon its own motion, the Board may 

grant exceptions or exemptions from l rovisions hereof if it shall 

appear, (1) that the vendor of any such goods or services is not 

subject to a code of fair competition, agreement or license approved 

nnder the A t; or (2) that compliance herewith would create undue 

ha.i;d hip or injustice or w01 ld no'" tend to effectuate the purposes 

of t,his Code or the policy of the Act. 

(b) No member of the Trade ..,hall make or cause to be presented 

or p ublished any such representation which shall be false in any 

material particular. 

XI. l\1oNorouEs 

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. 

XII. EFFECTIVE DA TE 

All prov1s10ns of this Code shall become effective and operative 

ten (10) days after the approval thereof by the President of the 

United States. 

XIII. CHANGES IN THE ConE 

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

subject to the right of the President, in a-ccordance with the provisions of Sub ection (b) of S.ection X 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. 

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

included herein by the Act, may, with the approvaJ of the Board, 

after such notice and hearing as it shall prescribe, be modified or 

eliminated in such manner as may be indicated by the needs of the 

public, by changes in circumstances, or by experience. 

Approved Cocle No. 37-Amendment No. 2. 

Registry No. 1013-3-02. 

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