Approved Code No. 353 Registry No. 1630-1-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

INSULATION BOARD 

INDUSTRY 

AS APPROVED ON MARCH 22, 1934 

WE ·oo OUR PART 

UNIV. Otr- FL LIi. 

,. I \ 

-5 ... ---

U.I. Dlft09'!TO~Y 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - • • Price 5 cents 
This publication is for sale by the Superintendent of Documents, Government 

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. 

Boston, Mass. : 1801 Customhouse. 

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

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

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

Cleveland, Ohio : Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, Mich.: 801 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla. : Chamber of Commerce Building. 

Kansas City, Mo. : 1028 13'altimore A venue. 

Los Angele~, 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 N~w Post Office Building. 

St. Louis, Mo. : 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 

(n) 
Approved Code No. 353 

CODE OF FAIR COMPETITION 

FOR THE 

INSULATION BOARD INDUSTRY 

As Approved on March 22, 1934 

ORDER 

APPROVING CODE OF FAIR COMPETITION FOR THE INSULATION 

BOARD INDUSTRY 

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 approval of a Code of 

Fair Competition for the Insulation Board 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: 

NOW, THEREFORE, on behalf of the President of the United 

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

pursuant to authority vested in me by Executive Orders of the 

President, including Executive Order No. 6543-A, dated December 

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

annexed report and do find that said Code 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 said Code of 

Fair Competition be and it is hereby approved; provided however 

that the application of Articles III and IV to Hawaii shall be and 

hereby is stayed pending my further order. 

Approval recommended: 

A. R. GLANCY, 

HUGH S. JOHNSON, 

Administrator for I ndustrial Recovery. 

Division Administrator. 

w ASHINGTON, D.C., 

March 22, 1934. 

47885°-425-120-34 (331) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

SIR: This is a report on the Code of Fair Competition for the Insulation Board Industry, as revised after a public hearing conducted in 

Washington on November 9, 1933, in accordance with the provisions 

of the National Industrial Recovery Act. 

PROVISIONS AS TO HOURS AND WAGES 

Employees are not permitted to work more than forty hours a 

week and eight hours a day, with certain exceptions, such as repair 

and maintenance crews, watchmen, tour machine workers to avoid 

shutdowns, and employees engaged in emergency repair work . . Factory employees are permitted to work forty-eight hours a week 

and eight hours a day during twelve weeks of peak production periods 

of each year but one and one-half times the normal rate shall be paid 

for hours worked in excess of forty a week and eight a day. 

Office employees are permitted to work forty hours a week. 

Though eight hours is the daily normal, these employees may be 

permitted to work nine hours a day; hourly limitations do not apply 

to executives, managers or supervisors who receive thirty-five dollars 

or more a week, or to outside salesmen. No employee is permitted 

to work more than six days in any seven-day period. Employers are 

not permitted to work employees time which when totaled with that 

performed for another employer, exceeds the maximum provided by 

this or any code. 

In Hawaii, skilled and semi-skilled employees are permitted to work 

forty-eight hours a week during two three-month periods each year; 

provided, one and one-half the normal rate is paid for hours worked 

in excess of forty a week. 

Except for office and sales employees, the minimum hourly rate of 

pay shall be forty cents in the North, thirty-two and one-half cents 

in the South and twenty-seven and one-half cents in Hawaii. 

A minimum rate of pay is established irrespective of whether an 

employee is compensated on a time rate, piecework, or other basis. 

Compensation of employees receiving more than the minimum shall 

be equitably adjusted but in no event shall rates of pay be reduced. 

Office and sales employees shall receive either fifteen, fourteen and 

one-half, or fourteen dollars a week, depending upon the population 

of the place of their employment. 

Other provisions relate to employment of handicapped persons, 

regular payment of wages, child labor and equality in pay for males 

and females doing the same work. 

(332) 
333 

ECONOMIC EFFECTS OF THIS CODE 

Operating under the President's Reemployment Agreement, the 

wages of 76.1 percent of the industry's employees were raised and the 

industry engaged 2 percent more employees than ever before. Though . operating at 45 percent of capacity, this industry will reemploy all 

former employees. Employment on September 1, 1933, shows an 

increase of approximately 20 percent over the average number 

elllployed during the year 1929. 

A very large percentage of the total number of factory employees 

will be beneficially affected by the proposed minimum rates in the 

Code. 

Average working hours will be reduced 26 percent, or from an 

average of 54.4 per week to slightly more than 40 without materially 

reducing the employees' annual income. The forty-hour limitation 

on the work will mean a 26 percent decrease in hours worked in a week. 

The rates of pay of 60 percent of this industry's employees who are 

unskilled will be greatly increased. The equitable adjustment provision of this Code will effect material increases in the rates of pay 

of skilled employees. 

This Code will eliminate unfair practices and facilitate the rendition of better service by this industry to the construction industry. 

Further increases in employment are contingent upon a return to 

normalcy of residential construction in which the industry's products 

are primarily used. 

FINDINGS 

The Assistant Deputy Administrator in his final report to me on 

said code, having found as herein set forth and on the basis of all the 

proceedings in this matter: 

I find that: 

(a) Said code is well designed to promote the policies and purposes 

of Title I of the National Industrial Recovery Act, including 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 among the trade groups, by inducing 

and maintaining united action of labor and management under adequate governmental sanctions and supervision, by eliminating unfair 

competitive practices, by promoting the fullest possible utilization of 

the present productive capacity of industries, by avoiding undue 

restrictions of production (except as may be temporarily required) 1 

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) 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 applic9.,nt a ociation is 

an industrial association truly representative of the aforesaid Indus-
334 

try; and that said association imposes no inequitable restrictions on 

admission to membership therein. 

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

monopolistic 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, I have approved this code. 

Respectfully, 

MARCH 22, 1934. 

HUGHS. JOHNSON, 

Administrator. 
CODE OF FAIR COMPETITION FOR THE INSULATION 

BOARD INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, this Code is established as a Code of Fair Competition 

for the Insulation Board Industry, shall be the standards of fair competition for such industry and shall be binding upon every member 

thereof. 

ARTICLE II-DEFINITIONS 

The term "Insulation Board Industry" or "the Industry" as used 

herein includes the manufacture and/or sale, by a member of the 

industry within the United States and those of its possessions and 

territories to which the Act applies, of insulation board products 

herein defined as "industry products". 

The term "member of the Industry" or "Industry member" 

includes those manufacturing and selling industry products, those 

selling as manufacturers the entire output of a manufacturer of any 

such products and those manufacturers selling, and billing therefor, 

industry products manufactured for them by another, but not including those recognized by the Industry as wholesalers and/or 

dealers and/or contractors. 

The term "industry products" includes the following insulation 

boards: building board, lath board, sheathing board, sheathing 

plank, tile board, insulating batten strips, bevel lap plank, paper surfaced insulation board, movie board, roof board, industrial board, 

cold storage board; and also panel board, hard board, and quarter 

board. 

The term "Employee" as used herein includes any person engaged 

in any phase of the Industry, however compensated, except a member 

of the industry. · The term "Employer" as used herein includes any one for whose 

benefit such an employee is so engaged. 

The term "President" means the President of the United States. 

The tern1s "Act" and "Administrator" as used herein mean respectively Title I of the National Industrial Recoyery Act, and the 

Administrator for Industrial Recovery. 

Population for the purposes of this Code shall be determined by 

reference to the 1930 Federal Census. 

ARTICLE III 1-HouRs 

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

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

otherwise provided in this Article III. 

1 See paragraph 2 or order approving this Code. 

(335) 
336 

SECTION 2. In order to provide for peak production periods plant 

and factory employees may, during any twelve (12) weeks in each 

calendar year, be permitted to work up to but not in excess of fortyeight (48) hours in any week, or eight (8) hours in any day, provided, 

however, that such time worked in excess of forty (40) hours in any 

such week or eight (8) hours in any day by such employees, shall be · paid for at not less than one and one-half (1}0 times the normal rate 

of pay. 

SECTION 3. The maximum hours of labor for chau:ff eurs, truck.men, 

switching crews, repair and maintenance crews, engineers, firemen, 

electric operators and departmental foremen shall be ten (10) per cent 

over the hours fixed in the foregoing Sections 1 and 2, 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 of the individual 

member of the industry, and provided, further, that in no event shall 

such employees be permitted to work in excess of forty-eight (48) hours 

per week during peak periods and shall receive overtime of at least 

one and one-half (1 }~) times the normal rate for all hours in excess of 

forty (40) hours per week and eight (8) hours per day. 

SECTION 4. (a) Tour machine workers in continuous process operations, may be permitted to work additional hours to avoid a shutdown due to the temporary absence of a scheduled relief worker. 

(b) Tour machine workers may be permitted to work two additional 

hours at the end of a machine run for clean-ups, wash-ups and ordinary 

repairs and adjustments in cases where a machine is shut down for a 

period of not less than twenty-four (24) consecutive hours provided 

one and one half (H~) times the normal rate is paid for such additional 

hours. 

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

(56) hours in any one week. 

SECTION 6. In Hawaii skilled and semi-skilled employees shall be 

permitted to work forty-eight (48) hours a week during two threemonths periods in each calendar year, provided, however, that all 

such time worked in excess of forty (40) hours in any week shall be 

paid for at not less than one and one-half (H~) times the normal rate 

of pay. 

SECTION 7. 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 hours per day. A normal day shall not 

exceed eight hours. 

SECTION 8. No employee shall be permitted to work in excess of 

six days in any seven-day period. 

SECTION 9. 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 marimum permitted herein. 

SECTION 10. The foregoing limitations on hours and days in this 

Article III shall not apply to outside sales or outside sales service 

men; _to employee~ enga~ed in executive~, managerial or supervisory 

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

to employees engaged in emergency work involving break-downs or 

the protection of life or property but employees engaged in such 

emergency work shall be compensated by at least one and one-half 
337 

(1 %) times the normal rate for all work in excess of the norn1al hours 

of forty (40) per week and eight (8) per day, herein provided. 

ARTICLE IV 2-WAGES 

SECTION 1. No employee (excluding accounting, clerical, office and 

sales employees) shall be paid at less than thirty-two and one-half 

(32}~) cents per hour in Virginia, North Carolina, South Carolina, 

Georgia, Florida, Alabama, Mississippi, Arkansas and Louisiana; 

nor in any other state at less than forty (40) cent per hour; nor in 

Hawaii at less than twenty-seven and one-half (27}~) cents per hour. 

This Section establishes a n1inimum rate of pay which shall apply 

irrespective of whether the employee is compensated on a time rate, 

piece-work, or other basis. An equitable adjustment for employees 

will also be made as to rates of compensation in excess of such minimum rate by all members of the Industry who ha e not heretofore 

made such an equitable adjustment and in no case shall rates be 

decreased, and within sixty (60) days after the effective date hereof 

each member of the Industry shall report to the Code Authority, 

for sub1nission to the Administrator, the action taken by such member 

in pursuance of this provision. 

SECTION 2. No accounting, clerical, office or sales employee shall 

be paid at-less than the rate of fifteen (15) dollars per week when 

employed in any city of over 500,000 population or in the immediate 

trade area of any such city; or at less than the rate of fourteen and 

one-half (14}0 dollars per week when employed in any city of between 

250,000 and 500,000 population, or in the immediate trade area of 

any such city; or at less than the rate of fourteen (14) dollars per 

week when employed in any city of less than 250,000 population, 

or in the immediate trade area of any such city. 

SECTION 3. 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 less than eighty (80) per cent of the minimum established by this Code, but such employees shall not exceed five per cent 

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 his 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 4. An employer shall make payment of all wages in lawful 

currency or by negotiable check at regular pay periods. These, ages 

shall be exempt from any payments for pensions, insurance, or sick 

benefits other than those voluntarily made by the employe , or required by state or federal law. The employer shall accept no rebates 

directly or indirectly on such wages. 

SECTION 5. Fe1nale employees perforn1ing substantially the sa1ne 

work as male employees shall receive the sa1ne pay as male en1ployees. 

2 See paragraph 2 of order approving this Code. 

47885°-425-120-34-2 
338 

ARTICLE V-GENERAL LABOR PROVISIONS 

SECTION 1. No person under sixteen (16) years of age shall be 

employed in the Industry. No person under eighteen (18) years of 

age shall be employed in machine operations. 

SECTION 2. In compliance with Section 7 (a) of the Act it is provided (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 designations 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 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 thie 

Code. 

SECTION 4. No provisions of 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 5. Each employer shall keep posted, under such rules as 

the Administrator may prescribe, in conspicuous places at every 

plant or factory in which Industry products are manufactured, copies 

of this Code. 

SECTION 6. Each employer shall provide for the health and safety 

of his workmen at the place and during the hours of their employment. Standards for safety and health shall be submitted by the 

Code Authority to the Administrator for approval before June 1, 1934. 

ARTICLE VI-CosT AccouNTING SYSTEM 

SECTION 1. The Code Authority shall cause to be formulated and 

submitted for the approval of the Administrator, an accounting 

system and methods of cost finding and/or estimating capable of use 

by all members of the industry. After such system and methods have 

been formulated and approved by the Administrator, full details 

concerning them shall be made available to all members. Thereafter 

all members shall determine costs in accordance with the principles 

of such methods. 

SECTION 2. No member of the Industry, after the adoption of said 

uniform cost accounting system, shall price or sell any Industry 

product below such member's allowable cost as determined under 

Section 1 of this Article, except to meet an established market price 

on such product. Established market price on any industry product 

for the purpose of this Section means the price at which any competitor is selling such product. 
339 

ARTICLE VII-PUBLICATION OF PRICE 

SECTION 1. Each member of the Industry shall, within five days 

of the effective date of this Code, publish and file with the Code 

Authority, or such other agency as the Code Authority may designate, complete lists or schedules of prices and terms and conditions 

of sale of all Industry products offered for sale by such member 

except to another member of the Industry, and shall so publish and 

file all subsequent changes therein or revisions thereof, and such price 

lists or schedules and terms and conditions of sale, and changes or 

revisions thereof as aforesaid so filed, shall for the purpose of this 

Code be treated as the published price lists or schedules and terms 

and conditions of sale of the member filing the same, and shall be 

available to each member of the Industry and after the effective 

date thereof to all interested parties. The Code Authority shall 

promptly cause a copy of all such price lists and terms and conditions 

of sale, and all changes therein or revisions thereof, to be sent to 

each member of the Industry. 

SECTION 2. No member of the Industry shall offer for sale, quote 

on or sell any of its industry products at a price or prices or upon 

terms and conditions other than those stated in the published price 

list and the terms and conditions of sale, and changes therein or 

revisions thereof, published and filed by such member, except to 

another member of the Industry. 

SECTION 3. If at anytime hereafter the Administrator shall give 

his approval to the requirement that subsequent changes or revisions 

of any price lists or terms or conditions of sale as provided in Section 1 hereof shall be filed a specific period of time prior to the eff ective date thereof, the Code Authority may provide that all changes 

in such price lists or terms or conditions of sale or revision thereof 

thereafter filed shall be published or filed five days or such other 

period of time as may be approved by the Administrator, prior to 

the effective date of any such subsequent changes or revision, and 

such price lists or schedules and terms and conditions of sale, and 

changes or revisions thereof as aforesaid so filed, shall for the purpose 

of this Code be treated as the published price lists or schedules and 

terms and conditions of sale of the member filing the same, and shall 

be available to each member of the Industry and after the effective 

date thereof to all interested parties. The Code Authority shall 

promptly cause a copy of all such price lists and terms and conditions of sale, and all changes therein or revisions thereof, to be 

sent to each member of the Industry. In the event that any Industry 

member shall not receive sufficient notice of the filing by any other 

Industry member of changes in such other member's prices or terms 

and conditions of sale as will enable such member to meet such 

changes on the effective date thereof, such member may file with 

the appropriate agency such changes in such member's price or 

terms and conditions of sale as may be required to meet the chang s 

filed by such other member. Changes so filed by su h m mber 

shall become effe tive on the same date as the effecti e date for the 

changes of such other member first filin~ as aforesaid, or, if tho e 

changes shall have already b come ffect1 e, then the changes subsequently filed as aforesaid, shall become effective immediately. 
340 

ARTICLE VIII-TRADE PRACTICES 

SECTION 1. A Trade Practice Code for the Industry is attached 

hereto as Exhibit A and made a part hereof. 

SECTION 2. Any deviation from the standards of fair dealing set 

forth in such Trade Practice Code or any amendment thereof shall 

be an act of unfair competition. 

SECTION 3. Articles VI, VII, VIII, hereof and any Trade Practice 

Code or Merchandising Plan adopted by the Industry with the 

approval of the Administrator shall apply to sales for consumption 

in the United States, its possessions and territories only. 

ARTICLE IX-ADMINISTRATION 

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

is hereby set up to cooperate with the Administrator in the administration of this Code. 

SECTION 1. The Code Authority shall consist of one representative 

from each member of the Industry who shall subscribe to the Code 

and sustain his prorata share of the expenses as provided in Section 

6 of this Article IX. In addition, there may be not more than 

three members, without vote and without cost to the Industry, appointed by the Administrator to serve for such periods as the Administrator may designate. 

SECTION 2. 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; subject to approval by the Administrator after such hearing as he may prescribe, 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 adopt~d 

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, and to recommend the standardization 

of products by the members of the Industry. It shall also have power 

and authority to make rules and regulations, consistent with the intent 

of the Act, for its own conduct and subject to the Administrator's 

approval, for the administration of this Code, to cooperate with the 

Administrator and other proper government officials in the enforcement of this Code, and to do all things proper to enable this Industry 

to function under this Code and to give full effect to the rules, regulations, and conditions, herein contained or promulgated hereunder. 

In addition to information required to be submitted to the Code 

Authority, all or any of the persons subject to such Code, agreement, 

or license shall furnish such statistical information as the Administrator may deem necessary for the purposes recited in Section 3 (a) 

of said Act to such Federal and State Agencies as the Administrator 

may designate; and nothing in this Code shall relieve any person of 

any existing obligation to furnish reports to Government agencies. 

In order to assure confidential treatment of individual figures, all 

reports, data and information which the Code Authority is empowered 

to receive shall be received by an agency appointed by the Code Au .. thority, not a member or connected with a member of the Industry9 
341 

or, in the absence of such appointment, the secretary of the Insulation 

Board Institute is hereby appointed the agency to receive the same. 

The agency so receiving any such reports, data and information shall 

keep the same confidential except when required 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. 

Collusion between any Industry 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 

shall constitute unfair competition and shall be a violation of this 

Code. 

SECTION 3. The Code Authority may from time to time appoint a 

committee of not more than five members of the Industry and delegate to any such committee any of the authority herein granted to 

the said Code Authority, including the carrying on of all communications and conferences on behalf of the Code Authority with the President or his agents concerning the approval or amendment of this Code 

or any of its provisions or any other matters relating thereto. Any 

committee so appointed shall exercise the authority specifically delegated to it by the Code Authority in the resolution appointing the 

same. The Code Authority member or members appointed by the 

Administrator shall be an ex-officio member or members, without vote, 

of any committee appointed hereunder. The Code Authority shall 

be responsible for all actions taken by its appointed committees. 

SECTION 4. 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 manufacturing member, a.o.d the selling agent or selling agents, distributor 

or distributors, 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 of the committee. At any 

duly called meeting of the Code Authority a three-fourths affirmative 

vote of the voting members present at the meeting, either in person 

or by the members' alternates, shall be required to make effective 

any action of the Code Authority 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 the appointment is 

connected. A majority of the voting members of the Code Authority 

shall constitute a quorum. 

SECTION 5. Any interested party shall have the right of complaint 

to the Code Authority or proper agency and a prompt hearing and 

decision thereon. Any interested party shall have the right of 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 6. All expenses involved in administering the Code shall 

be determined by the Code Authority, subject to disapproval by the 

AdminiRtrator, and prorated among members of the Indu try who 

expressly assent to the Code. The proration by the Code Authority 

of all such expenses shall be determined by the Code Authority on 

the basis of the aggregate billings on sales for consumption in the 
342 

United States and its possessiuns and territories for the preceding six 

months of all industry products sold by the members of the Industry. 

Billings shall be based on the actual sales price but where board is 

sold at thirty (30) dollars or more per thousand square feet surface 

measurement, it shall be figured as of thirty (30) dollars and where 

sold at sixteen (16) dollars or less per thousand square feet surface 

measurement, it shall be figured as of sixteen (16) dollars. 

SECTION 7. Nothing 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 anyone for any 

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

of the Code Authority exercising diligence in the conduct of his duties 

hereunder be liable to anyone for any act or omission to act under 

this Code except for his own wilful misfeasance or non-feasance. 

SECTION 8. If the Administrator shall determine that any action 

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

or contrary to the public interest, the Administrator may require 

that such action be suspended to afford an opportunity 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 unless the Administrator approves or unless he shall fail 

to disapprove after thirty (30) days' notice to him of intention to 

proceed with such action in its original or modified form. 

SECTION 9. The Code Authority shall have power to propose 

amendments to this Code which shall be effective as a part thereof 

upon the approval of the President or his agents after such notice and 

hearing as he may prescribe. 

SECTION 10. 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 such hearings as he may deem proper; and thereafter if he shall find that the 

Code Authority is not truly representative or does not in other 

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

ARTICLE X-GENERAL 

SECTION 1. There shall be no future amendment of the constitution 

and by-laws of the Insulation Board Institute which will tend to make 

the association not truly representative of the Industry and/or which 

shall impose any inequitable restriction on membership. 

SECTION 2. No provisions of this Code shall be interpreted or applied 

in such manner as to promote or perm.it monopolies or monopolistic 

practices; permit or encourage unfair competition; eliminate or oppress 

small enterprises or discriminate against them. 

SECTION 3. The Code Authority may investigate and inform the 

President or the Administrator, on behalf of the Industry, as to 

importations of competitive articles into the United States and its 

possessions and territories selling on a price basis that undersells 

similar articles of domestic manufacture, and the extent to which 

such underselling shall render ineffective or seriously interfere with 

the maintenance of this Code, and which may be made the basis for 

complaint to the President or the Administrator, on behalf of the 

Industry, under the provisions of the Act with respect thereto. 
343 

SECTION 4. Nothing contained in this Code shall be construed as 

prohibiting any member of the Industry from exercising his lawful 

patent rights or as requiring any member of the Industry to do any 

act in conflict with the terms of any patent licensing or patent sales 

agreement. 

SECTION 5. As required by Section 10 (b) of Title I of the Act, the 

following provision is contained in this Code; The President may, 

from time to time, cancel or modify any order, approval, license, rule 

or regulation issued under said Title. 

SECTION 6. Such of the provisions of this Code as are not required 

to be included herein by the Act may upon submission to the Code 

Authority and approval of the President be modified or eliminated 

as changes in circumstances or experience may indicate. It is contemplated that from time to time supplementary provisions to this 

Code or additional Codes may be submitted for the approval of the 

President, to prevent unfair competition in price and other unfair and 

destructive competitive practices and to effectuate the other purposes 

and policies of Title I of the Act consistent with the provisions hereof 

and any such supplementary provisions or additional codes, after 

submission to the Industry and approval by the President, shall 

become a part of this Code and effective as such. 

SECTION 7. Violation by any member of this Industry of any of 

the provisions of this Code or of any approved amendment hereof is 

an unfair method of competition. 

SECTION 8. This Code and all of the provisions thereof shall cease 

to be in effect on June 16, 1935, or sooner if the President shall by 

proclamation or the Congress shall by joint resolution declare that 

the emergency recognized by Title I of the Act has ended. 

SECTION 9. This Code shall be in effect beginning the second 

Monday after its approval by the President. 

Approved Code No. 353. 

Registry No. 1630-1-02. 
EXHIBIT "A" 

TRADE PRACTICES REGULATIONS 

SECTION 1. Dejinition.-The word "member" as used in this Exhibit "A" 

shall be understood to include any member of the Industry and all officers, emfiloyees, agents, sales agencies and representatives of such member. The word 

'customer" as hereinafter used in these Regulations shall be understood to 

include all purchasers and prospective purchasers of Industry products, the 

officers, employees, agents, and representatives of such purchasers or prospective 

purchasers and any other party in a position to materially influence sales of 

Industry products. 

SECTION 2. Price Discrimination.-N o member shall discriminate in price, 

either directly or indirectly, between different purchasers of commodities, except 

on account of differences in quantity, quality or grade of products sold or the 

making of a reasonable differential in price charged to different classes of trade, 

pr the making of different prices in different markets according to usual distribution of such products prevailing in the trade or Industry; provided, however, that 

nothing herein contained shall prevent the members of the Industry from selecting 

their own customers. No member shall make any discrimination in price by, 

(a) falsely classifying a customer; (b) by pooling shipments or permitting the 

pooling of shipments on specified contracts destined to various purchasers for the 

purpose of reducing prices below the published price for the quantity destined to 

the individual purchaser!· (c) by selling and/or billing any customer on more liberal 

terms than those regular y published by such member; (d) by allowing over-riding 

discounts payable at some future date; (e) by carrying notes for customers without 

charging interest thereon at the rate of 6%per annum. 

SECTION 3. Rebates.-No member shall, directly or indirectly, make or permit 

to be made to any customer any secret rebates; unearned refunds, credits, discounts, commissions, bonuses, or other allowances; or any subsidies of any 

character whatsoever, whether in the form of money; services; excessive allowances for alleged defective merchandise, shortages, adjustments of complaints, 

or returned goods; extension of guarantees to customers against price advances or 

price decline; issuance of credit allowances or refunds on inventory stocks of 

customers because of price changes or otherwise; rendering fictitious invoices or 

making shipme·nts of merchandise in quantities different than shown on the 

invoices; permitting deductions on payment of invoices of items not covered by 

the terms of sale; disposing of material at reduced prices which has been shipped 

to a customer and not paid for; or in any other form or manner whatsoever. 

SECTION 4. Commercial Bribery.-No member of the Industry, 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 ~arty, without the knowledge of such 

employer, principal or party. Commercial bribery provisions 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. 

SECTION 5. Dealings with Customers.-N o member shall knowingly utilize 

trucking facilities (hire or employ truck) either wholly or partly owned by a customer; rent or renew any lease for any part of the premises of a customer or rent 

warehouse space from a customer except in the case of a public warehouse in 

which such customer may have an interest but in which his place of business is 

not located. No member shall warehouse either in his factory, his own or hired 

warehouse for more than thirty (30) days, goods which have been sold to any 

customer, or paid for by any customer. No member shall make any purchases of 

any materials other than industry products from customers at prices in excess of 

prevailing open market prices. No member shall, directly or indirectly, give or 

permit to be given to any customer money, donations of cash, or other things of 

value as inducement to cause any such customer to purchase or contract to purchase industry products from such member or to influence any such customer to 

(344) 
345 

refrain from dealing or contracting to deal with any competitor of such member; 

except usual sales help, members' technical assistance, conventional samples, or 

material for experimental or test purposes. Members shall not furnish material 

at other than published prices or labor for display purposes to cover any part of 

buildings whether such buildings are owned by customers or not. No member 

shall assume any portion of the expenses incurred by a customer in the operation 

of such customer's business, except in the sale and fabrication of hardboard, 

quarterboard and panel board for industrial uses but nothing herein shall prevent 

a member from making an adjustment on a bona fide claim on account of defective 

material. No member shall bear or share in the cost of customer's space advertising; pay for advertising in any customer's house organ or catalog, or in individual customer's publication; assume any credit responsibility for the accounts 

of a customer or guarantee any such account. No member shall for the purpose 

of influencing business encourage or permit lavish entertainment, permit bets or 

any form of gambling, make any loans, make sales of stock or other securities at 

less than the market value thereof, or permit the splitting or otherwise sharing of 

salesmen's commissions or compensation. No member will assume the expense 

of painting signs on customer's place of business advertising manufacturer's 

products except upon presentation of certified invoice from sign painter, in which 

event member is permitted to pay actual cost for such work. The term customer 

as used in this section shall mean an individual or corporation sold as a dealer, 

wholesaler or roofing contractor. 

SECTION 6. Inducing Sales by Other Products.-No member shall sell or offer 

for sale as inducement for the purchase of any industry products any article or 

commodity, whether an industry product or not, at prices below those generally 

quoted by the member for that article or commodity. 

SECTION 7. Defamation of Competitors.-No member shall d fame or disparage 

a competitor, directly or indirectly, by words or acts which misrepresent its 

business integrity, its ability to perform its contracts, its credit standing, its 

p0licies, the grade, quality or quantity of its goods, or the origin of its products. 

SECTION 8. Misrepresentation.-N o member shall sell or offer for sale any 

industry product for the purpose or with the effect of deceiving customers as to 

the quantity, quality, weight, size or grade of such products, or country of origin. SECTION 9. False Branding.-No member shall improperly mark, brand or 

label industry products, or make any misrepresentation in connection with the 

sale of any such products for the purpose or with the effect of misleading or 

deceiving purchasers with respect to the quantity, quality or grade, or the country 

of origin. 

SECTION 10. Standard Forms of Quotations and Contracts.-All quotations shall 

be made in accordance with the terms and conditions set forth in any standard 

forms of quotations adopted at any time by the Code Authority by unanimous 

vote and approved by the Administrator, and all contracts shall be made in 

accordance with the terms and conditions set forth in any standard forms of contract so adopted and approved, and no member shall depart from said standard terms 

and conditions in the making of any quotation or contract in any transaction. 

SECTION 11. Consignments.-No member of the Industry shall ship industry 

products on consignment, except under circumstances to be defined by the Code 

Authority, subject to the approval of the Administrator, where peculiar circumstances of the Industry may require the practice. Distress stocks now on con- signment are not subject to the next to the last clause of Section 3 of this Exhibit. 

This Section 11 shall not apply to hardboard, quarter board and panel board for 

industrial uses. 

SECTION 12. Lump Sum Contracts.-No member shall accept any order for 

contracts of sale at a lump sum where the contract doe not sp cify the exact 

quantity, quality and unit price of the product purchased. SECTION 13. Diversions.-No member shall divert shipments in transit for the 

purpose and with the intent of allowing concessions or reducing prices. 

SECTION 14. Outstanding Obligations.-No member shall sell any indu try 

products at a price or on terms or conditions other than stated in the prices, 

terms and conditions of sale published and filed by such member. The following 

contracts however may be protected at the price at which the contract was taken 

but products sold under such protection shall be applied only on the contract for 

which such protection was given: 

(a) All bona fide contracts for the sale of industry products filed with the Code 

Authority or its designated agents at the time of the first filing of lists or schedules 

of prices and terms or conditions of sale as required by Article VII, Section 1 of 

this Code; 
346 

(b) All existing specific job contracts for roof insulation, industrial contracts, 

and government job contracts, for the sale of industry products at less than the 

member's filed price, provided the contracts, or such details with respect thereto 

as may be requested by the Code Auth0rity, are filed with the Code Authority or 

its designated agent within ten (10) days Rfter the effective date of this Code; 

(c) After the effective date of this Code, all specific roof job contracts closed on 

quotations outstanding prior to the effective date of any price increase filed by 

the member protecting the same and accepted within thirty (30) days (except that 

government jobs may be accepted within sixty (60) days) after such date; and 

industrial contracts for furnishing industry products after the effective date of 

any price increase filed by the member protecting the same but not extending 

beyond the date July 1, 1934, or such other date as may be designated, from time 

to time, by the Code Authority; provided, however, that in all such cases, the 

contract conforms to the prices, terms and conditions of sale filed by such member 

and current at the time the quotation or contract was made; and provided further, that all specific roof job contracts so protected, or such details thereof as 

may be requested by the Code Authority, are filed with said Code Authority or 

its designated agent within ten days after the specified period within which such 

contracts may be accepted, and that all such industrial contracts or details with 

respect thereto are so filed within ten da.ys after the effective date of any such 

price increase. 

0 

u r~IVERSITY O F FLORIDA 

ll I II IIIIII Ill Ill lllll lllll II IIII IIIIII IIII Ill Ill llll llllll Ill I I 

3 1262 08850 2660