1111111111~1111~1rm1'i~11[11111111111 [i '1l1il 111111111 ·ndment No. 2 Registry No. 1036-t-0Z' 

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3 1262 08482 9653 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

CLAY AND SHALE ROOFING 

TILE INDUSTRY 

AS APPROVED ON DECEMBER 7, 1934 

WE DO OUR PART 

0 ~ --. - ' . . . -

U. )EPus, TO. :Y 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

I 

For sale by the Superintendent of Documents, Washington, D. C. - - - - - - - - - Price 5 cecta 

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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.: 50--! 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.: 102S Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky. : 408 Federal Building. 

Memphis, 'l'enn. : 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

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

New York, N. Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa. : 422 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif.: 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 389-Amendment No. 2 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

CLAY AND SHALE ROOFING TILE INDUSTRY 

As Approved on December 7, 1934 

ORDER 

APPROVING AMENDMENT OF Comri· OF FAIR CoMPE'IITION FOR THE CLAY 

AND SHALE ROOFING TILE 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 an amendment to a Code of Fair Competition for the Clay and Shale Roofing 

Tile Industry, and hearings having been duly held thereon and the 

annexed report on said amendment containing findings with respect 

thereto, having been made and directed to the President: 

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

States, the National Industrial Recovery Board, pursuant to authority vested in it by Executive Orders of the President, including 

Executive Order No. 6859, and otherwise, does hereby incorporate 

by reference said annexed report and does find that said amendment 

and the code as constituted after being amended comply in all 

respects with the pertinent provisions and will promote the policies 

and purposes of said title of said act; and does hereby order that 

said amendment 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. 

NATION AL INDUSTRIAL RECOVERY BOARD, 

By W. A. HARRIMAN, Administrative Officer. 

Approval recommended: 

w. P. ELLIS, 

Acting Division Administrator. 

w ASHINGTON, D. c., 

December 7, 1934, 

101788°-1385-66-34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: This is a report on an amendment to the Code 0£ Fair Competition £or the Clay and Shale Roofing Tile Industry, a hearing on 

which amendment was conducted in "\Vashington on the first 0£ 

August, 1934, in accordance with the provisions 0£ the National 

Industrial Recovery Act. 

The modifications of Section 1 0£ Article III, Section 2 0£ Article 

IV, Sections 1 and 4 of Article V, Sections 7 and 10 ( c) 0£ Article 

VI, and Rules 2 and 16 of Article VII were requested by the National 

Recovery Administration. These changes clarify the language and 

make the Code conform more nearly to present policy. 

The modifications of Sect1ons 5 and 11 of Article VI were 

requested by the Industry. These changes eliminate New Mexico 

from the Pacific Coast Region and clarify the powers and duties 0£ 

the Regional Control Committee for this region. 

The addition of Rules 17, 18 and 19 to Article VII was requested 

by the Industry. This addition provides certain fair trade practice 

rules for the Pacific Coast Region which are thought to be necessary 

£or the proper r egulation of the Industry within that Region. 

The addition of the new Sub-Article VII-A was requested by the 

Industry. This Sub-Article provides for the open filing 0£ prices 

in the Pacific Coast Region. 

FINDINGS 

The Deputy Administrator in h1s final report to us on said amendment to said Code having £ound as herein set forth and on the basis 

of all the proceedings in this matter : 

We find that: 

(a) The amendment 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 0£ 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 o-f labor and management under adequate 

governmental sanction and supervision, by eliminating unfair competitive practices, by promoting the fullest possible utilization o-f the 

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

by increasing the consumption o-f industrial and agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards 0£ labor, and by otherwise rehabilitating industry. 

(2) 
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(b) The Code as amended complies in all respects with the pertinent provision of said title of said act, including without limitation 

subsection (a) of section 3, ub ection (a) of section 7 and subsection 

(b) of section 10 thereof. 

( c) The Code empowers the Code Authority to present the aforesaid amendment on behalf of the industry as a whole. 

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

to and will not permit monopolies or monopolistic practices. 

( e) The amendment and the Code as amended are not designed 

to and will not eliminate or oppress small enterprises and will not 

operate to discrin1inate 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 

amendment. 

For these reasons, therefore, we have approved this amendment. 

For the National Industrial Recovery Iloard: 

DECEMBER 7, 1934. 

w. A. HARRIMAN' 

Administrative Officer. 
AMENDMENT TO CODE OF FAIR COMPETITION FOR 

THE CLAY AND SHALE ROOFING TILE INDUSTRY 

Article III, Section 1 is amended by deleting the word" employed,, 

wherever it appears in said section and by inserting in lieu thereof 

the words "permitted to work". 

Article III, Section 1 (b) is a.mended by adding the following 

sentence: "The term 'outside salesman' shall mean and include any 

employee whose principal duties shall consist of soliciting orders 

out ide of sales office, factories, or headquarters." 

Article IV, Section 2 is amended by inserting the word " at :, 

between the -words "than the" where they first appear in said 

section. 

Article V, Section 1 is amended by deleting the word "or" where 

it first appear in said section and by substituting therefor the 

word "nor ". 

Article V, Section 4 is amended by deleting said section and 

inserting in lieu thereof a new Section 4 to read as follows : " No 

employer shall reclassify employees or duties of occupations performed or engage in any other subterfuge so as to defeat the purpose or provisions of the Act or of this Code." 

Article VI, Section 5 is amended by deleting said section anu. 

inserting in lieu thereof a new Section 5 to read as follows : " To 

further eiiectuate the policies of the Act, a Pacific Coast Region, 

comprising the States of California, Washington, Oregon, Idaho, 

Nevada and Arizona is hereby established. A Regional Control 

Committee, consisting of three ( 3) members, shall be elected by a 

fair method approved by the National Industrial Recovery Board, 

by the members of the Industry in the above-named region; provided that no member of the Industry shall be represented by more 

than one ( 1) member on the Regional Control Committee. The 

Code Authority may delegate to such Regional Control Committee 

such powers and duties as may be necessary for the administration 

of this Code in this region, but such delegation shall not relieve 

the Code Authority of its duties or its responsibilities under the 

Code. The National Industrial Recovery Board may appoint from 

one (1) to three (3) members to serve without vote on such Regional Control Committee. Members so appointed shall be given 

notice of, and may sit at all meetings of the Regional Control 

Committee." 

Article VI, Section 7 is amended by deleting said section and substituting in lieu thereof a new Section 7 to read as follows: "In 

order that the Code Authority and the Regional Control Committee 

hereinabove provided for shall at all times be truly representative 

of the Industry and in other respects comply with the provisions of 

the Act, the ;N" ational Industrial Recovery Board may prescribe such 

hearings as it may deem proper; and thereafter if the Board shall 

(4) 
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find that the Code Authority and/ or the Regional Control Committee is not truly representative or does not in other respects comply 

with the provisions of the Act, it may require an appropriate modification of the Code Authority and/ or the Regional Control 

Committee." 

Article VI, Section 10, Subsection ( c) is amended by deleting said 

Subsection ( c) and by substituting in lieu thereof a new Subsection 

( c) to read as follows : " To obtain from members of the Industry 

~uch 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 Industry subject to this Code 

shall furnish such statistical information as the National Industrial 

Recovery Board may deem necessary for the purposes recited in Section 3 (a) of the Act to such Federal and State Agencies as that 

Board may designate; provided that nothing in this Code shall relieve any member of the Industry of any existing obligations to 

furnish reports to any Government agency. No individual report 

shall be disclosed to any other member of the Industry or to any 

other party except to such other Governmental agencies as may be 

directed bv the National Industrial Recovery Board." 

Article VI, Section 11 is amended by deleting said Section 11 and 

by substituting in lieu thereof a new Section 11 and Subsections 11 

(a), 11 (b) and 11 ( c) to read as :follows: " The provisions o:f this 

section shall apply to and affect members o:f the Industry only when 

such members sell or offer to sell the products of the Industry in or 

into the Pacific Coast region. 

(a) Subject to the approval o:f the National Industrial Recovery 

Board, the Regional Control Committee may set up and define districts within the region and may establish District Committees, 

chosen by a :fair method of selection approved by the National Industrial Recovery Board. The Regional Control Committee may 

use such District Committees or other agencies as it deems proper 

for carrying out its administration o:f the Code provided for herein; 

provided that nothing shall relieve the Regional Control Committee 

of its duties and responsibilities under the Code. 

(b) The Regional Control Committee may study conditions in the 

Industry and submit recommendations for a marketing plan which, 

upon approval o:f the National Industrial Recovery Board, shall 

become binding upon all members o:f the Industry as to all sales made 

in or into such region. 

( c) The Regional Control Committee may recommend, :from time 

to time, classifications and standards of quality for the various types 

of products manufactured in the region and, upon approval of the 

National Industrial Recovery Board, a:fter such notice and hearing 

as it may prescribe, such classification and standards shall be adhered 

to by members of the Industry when manufacturing products for 

sale in or into said region. No member of the Industry shall sell, 

or offer for sale as standard products, any products :for which classifications and/ or standards have been established except in accorct.-

ance with such classifications and/or standards, either as a subter:fuge 

to effect a lower price or for any other reason." 

Article VII, Rule 2 is amended by deleting said Rule and substituting in lieu thereof the :following Rule 2: " No member of the 
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Industry shall defame a competitor by falsely imputing to him dishonorable conduct, inability to perform contracts, questionable credit 

standing, or by other :false representations, or by falsely disparaging 

the grade or quality of his goods." 

Article VII, Rule 16 is amended by deleting the word "find" 

and substituting therefor the word "finding". 

Article VII is amended by adding thereto Rules 17, 18 and 19 

to read as :follows : 

"RULE 17. No member of the Industry selling or offering to sell 

in the Pacific Coast Region shall knowingly withhold from or insert 

in any quotation or invoice any statement that makes it inaccurate 

in any material particular. 

" RULE 18. No member of the Industry selling or offering to sell in 

the Pacific Coast Region shall make lump-sum bids on clay and 

shale roofing tile and/or special shapes for the purpose of concealing 

the unit prices on the items contained therein, or guarantee that any 

specific quantities will do the job which are known to be insufficient 

for the purpose. 

"RULE 19. No member of the Industry selling or offering to sell 

in the Pacific Coast Region shall make any bids on clay and shale 

roofing tile in a lump sum or otherwise when its acceptance is contingent upon the acceptance of a bid on any other clay products or 

on any other building material or conunodity." 

Article VII is amended by adding thereto Sub-Article VII-A to 

read as follows: "The provisions of this Sub-Article VII-A shall 

apply to and affect members of the Industry only when such members 

sell or offer to sell the products of the Industry in or into the Pacific 

Coast Region." 

SECTION 1. Each member of the Industry shall file with a confidential and disinterested agent of the Regional Control Committee 

or, if none, then with such an agent designated by the National Industrial Recovery Board, identified list of all of his prices, discounts, rebates, allowances, and all other terms or conditions of sale 

for the Pacific Coast Region (hereinafter in this Article referred 

to as "price terms"), which lists shall completely and accurately 

conform to and represent the individual pricing practices o:£ said 

member. Such lists shall contain the price terms for all such standard products of the Industry as are sold or offered for sale by said 

member, and for such non-standard products of said members as 

shall be designated by the Regional Control Committee. Said price 

terms shall in the first instance be filed within ten 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 revisions, together with th~ 

effective time thereof, shall upon receipt be immediately and simultaneously distributed to all members of the Industry selling or offering to sell within the Pacific Coa t Region and to all of their customers who have applied therefor and have offered to defray the 

cost actually incurred by the Regional Control Committee in the 

preparation and distribution thereof and be available :for innpection 

by any of their customers at the office of such agent. Said lists or 
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revisions or any part thereof c::hall not be made available to any 

person until released to all such member of the Industry and their 

customers, as aforesaid; provided that prices filed in the first instance shall not be relea ed until the expiration of the aforesaid 

ten day period after the effective date of this provision. The Regional Control Committee 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 National Industrial Recovery Board. Upon request, the Regional Control Committee shall furnish to the National Industrial Recovery Board or 

any duly designated agent of the National Industrial Recovery 

Board copies of any such lists or revisions of price terms. 

SECTION 2. When any such member of the Industry has filed any 

revision, such member shall not file a higher price within forty-eight 

(48) hours. 

SECTION 3. No member of the Industry shall sell or offer to sell 

any products of the Industry, for which price terms have been filed 

pursuant to the provisions of this Article, except in accordance with 

such price terms. 

SECTION 4. No member of the Industry 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 Industry to change his price terms by the use of intimidation, coercion, or 

any other influence inconsistent with the maintenance of the free and 

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

.Approved Code No. 389--.Amendment No. 2. 

Registry No. 1036--1--02. 

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