Approved Code No. 140 Registry No. 1610-06 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

WATERPROOFING, DAMPPROOFING, 

CAULKING COMPOUNDS, AND 

CONCRETE FLOOR TREATMENTS 

MANUFACTURING INDUSTRY 

AS APPROVED ON NOVEMBER 27, 1933 

BY 

PRESIDENT ROOSEVELT 

f ( 

( 

UL.. - '\ --- · 

.... ----

2. Letter of Transmittal 

3. Code 

! UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the Superintendent of Documents, Washineton, D.C. • • • • • • • - Price 5 eents 

v 
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. 

Dalla , Tex.: Chamber of Commerce Building. 

Detroit, Mich.: 2213 First National Bank Building. 

Houston, Tex.: Chamber of C-ommerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky. : 408 Federal Building. 

Memphi&, 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. : 933 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 Building. 
Approved Code No. 140 

CODE OF FAIR COMPETITION 

FOR THE 

W ATERPRO·OFING, DAMPPROOFING, CAULKING 

COMPOUNDS, AND CONCRETE FLOOR TREATMENTS MANUFACTURING INDUSTRY 

As Approved on November 27, 1933 

BY 

PRESIDENT ROOSEVELT 

Executive Order 

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 a Code of 

Fair Competition for the Waterproofing, Dampproofing, Caulking 

Compounds, and Concrete Floor Treatments Manufacturing Industry, and hearings having been held thereon and the Administrator 

having rendered his report containing an analysis of the said code of 

fair competition, together with his recommendations and findings 

with respect thereto, and the Administrator having found that the 

said 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 the authority vested in me by title I of 

the National Industrial Recovery Act, approved June 16, 1933, and 

otherwise, do approve the report and recommendations and adopt the 

findings of the Administrator, and do order that the said code of 

fair competition be, and it is hereby, approved. 

Approval recommended : 

HuGH S. JoHNSoN, 

Administrator. 

THE WHITE HousE, 

November 27, 1933. 

FRANKLIN D. ROOSEVELT. 

(497) 2B789•-----244-108----33 
NOVEMBER 17' 1933. 

The PRESIDENT, 

The White House. 

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

Waterproofing, Dampproofing, Caulking Compounds, and Concrete 

Floor Treatments :Manufacturing Industry in the United States, as 

revi ed after a hearing conducted in Washington on November 3, 

1933, in accordance with the provisions of the National Industrial 

Recovery Act. 

PROVISIONS OF THIS CODE AS TO WAGES AND HOURS 

Employees hall not work more than forty hours in any one week 

or eight hours in any one day except that employees may work 

a maximum week of forty-eight hours during six weeks within a 

period of six months. 

Factory employees who work more than eight hours a day or more 

than forty hours a week shall be paid at least one and one-half 

times their normal rates of pay. Except in cases of emergency, such 

overtime shall not exceed eight hours in any one week. 

Employees shall not work more than five days a week, except that 

employees may work six days a week during six weeks within a 

period of six m.onths. 

The maximum hours provisions do not apply to employees in 

managerial, executive, or professional capacity who receive regularly 

thirty-five dollars or more per week. 

No employee except outside salesmen shall be paid at less than the 

rate of forty cents per hour. Accounting, clerical, office, or delivery 

employees shall be paid at least fifteen dollars per week. 

To the extent practicable, weekly earnings shall not be decreased, 

though the hours of work may be reduced. Rates of pay for occupations in excess of the minimum shall be increased so as to maintain differences in full-time weekly earnings existing on June 1, 1933. 

Disabled employees, not exceeding in number five percent of any 

employer's total number, shall not be paid less than eighty percent 

of the minimum wages provided. 

ECONOMIC EFFEC'.rS OF THE CODE 

Sixty-hour working weeks which have prevailed in this Industry 

during peak periods in the past will be abolished by this Code. The 

dull-period work weeks will be lengthened, because a larger inventory 

stock must be provided to meet the peak-period demand . 

Though there has been a reduction in the number of working hour , 

because of the increase in the hourly wage rate, the employees' annual 

income will not be reduced. 

(498) 
499 

The number of employees in this Industry will be increased by 

approximately twenty percent. The Industry's pay rolls will be 

increased by approximately twenty to twenty-five percent. 

This Code will eliminate many unfair practices and facilitate the 

rendition of better service by this Industry to the construction industry in the future. A guarantee evil detrimental to the Industry, 

which has prevailed in the past, will be eradicated. 

An effort has been made to synchronize this Code with that of 

the Builders Supplies Trade so that harmonious relations between 

these two industries can be promoted in the future. 

This Code will beneficially affect this Industry, its employees, and 

the public. 

FINDINGS 

The Administrator finds that-

(a) The Code as recommended complies in all respects with the 

pertinent provisions of Title I of the Act, including, without limitation, subsection (a) of Section 7 and subsection (b) of Section 10 

thereof; and that 

(b) The applicant group imposes no inequitable restrictions on 

admission to membership therein and is truly representative of the 

Waterproofing, Dampproofing, Canlking Compounds, and Concrete 

Floor Treatments Manufacturing Industry; and that 

(c) The Code as recommended is not designed to promote monopolies or to eliminate or oppress small enterprises and will not operate 

to discriminate against them and will tend to effectuate the policy of 

Title I of the National Industrial Recovery Act. 

It is recommended, therefore, that this Code be approved. 

Respectfully, 

• 

• 

HuGHS. JoHNsoN, 

Administrator • 
CODE OF FAIR COMPETITION 

FOR THE 

WATERPROOFING, DAMPPROOFING, CAULKING COM- POUNDS, AND CONCRETE FLOOR TREATMENTS 

MANUFACTURING INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

RecoYery Act, the following provisions are established as a Code of 

Fair Competition for the waterproofings, dampproofings, caulking 

compounds, and concrete floor treatments industry, and shall be 

binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

The term "Waterproofings, Dampproofings, Caulking Compounds, and Concrete Floor Treatments Industry ", as used herein, 

includes the manufacturing, selling, and distributing by manufacturers to all classes of trade, and the furnishing by manufacturers 

of sales-engineering services of products known as " waterproofings, 

dampproofings, caulking compounds, concrete floor treatments" plus 

engineering service pertaining. to design, method of installation for 

building maintenance and construction industries, and such branches 

or subdivisions thereof as may from time to time be included under 

the provisions of this Code. 

The term "employee" as used herein includes anyone engaged in 

the industry in any capacity receiving compensation for his services, 

irrespective of the nature or method of payment of such compensation. 

The term "employer" as used herein includes anyone by whom 

any such employee is compensated or employed. 

The term "member of the industry" includes anyone engaged in 

the Industry as above defined, either as an employer or on his own 

behalf. 

The term "Association" as used herein shall mean "The Associated Manufacturers of Waterproofings, Da1npproofings, Caulking 

Compounds, and Concrete Floor Treatments." 

The terms "President" "Act" and "Administrator" as used 

herein shall mean, respectively, ' the ' President of the United States4 the National Industrial Recovery Act, and the Administrator of said 

Act, Title I. 

The term" members of the Code" includes any employer who has 

subscribed to this Code or complied with the provisions of Art. VI, 

paragraph 4. 

ARTICLE III-HoURs 

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

hours in any one (1) week or eight (8) hours in any twenty-four 

(500) 
501 

(24) hour period, provided, however, that any employee may work 

a maximum week of forty -eight ( 48) hours for six ( 6) weeks within 

a period of six (6) months. For the purpose of this section, a 

six (6) months' period shall begin on January 1st and July 1st, 

respectively. 

2. All factory employees who work more than eight hours in any 

twenty-four (24) hours or more than forty ( 40) hours in any seven 

(7) days shall be paid not less than one and one half (11;2) the 

normal rate of pay for said excess. Such overtime shall not exceed 

eight (8) hours in any one (1) week except in cases of emergency 

maintenance or emergency repair work involving breakdowns or 

protection of life or property. . 3. No employee shall be permitted to work more than five (5) 

days in any seven (7) day period, except that employees shall be 

permitted to work six (6) days in any seven (7) day period of six 

(6) weeks within a period of six (6) months. 

4. The maximum hours fixed in the foregoing paragraphs shall 

not apply to employees in a managerial, executive, or other professional capacity who receive in no week less than thirty-five (35) 

dollars. 

ARTICLE IV-W .AGES 

1. No employee shall be paid at less than the rate of forty ( 40) 

cents per hour, except that: 

(a) The provision of this article shall not apply to outside 

salesmen. 

(b) Employers in the Industry, shall not pay any accounting, 

clerical, office, or delivery employee in any office,, or in any other 

place, less than fifteen ( 15) dollars per week. 

2. This Article establishes a minimum rate of pay, regardless of 

whether an employee is compensated on a time rate, piecework, or 

other basis. 

3. Female employees performing substantially the same work as 

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

4. To the extent practicable, weekly earnings shall not be decreased, notwithstanding that hours of work may be reduced and 

rates of pay for occupations in excess of the minimum herein pre-

. scribed shall be increased so as to maintain differences in full-time 

weekly earnings existing on June 1, 1933. 

5. Within thirty (30) days after the effective date of this Code, 

each employer shall report to the Administrator through the Code 

Authority all such readjustments made by him since June 16, 1933; 

provided, however, that these rates shall be subject to readjustment 

by the Administrator if the adjustments made by an employer are 

not suitable in obtaining uniformity for this industry. 

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

physical or mental handicap may be employed on light work at 

a wage below the minimum established by this Code if 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 with the Code Authority a list of all such 

persons employed by him. 
502 

ARTICLE v 

1. No person under sixteen (16) years o£ age shall be employed in 

the industry, nor anyone under eighteen ( 18) years o£ age at operations or occupations hazardous in nature or detrimental to health. 

The Code Authority shall submit to the Administrator a list of such 

occupations, if any. In any State, an employer shall be deemed to 

have complied with this provision if he shall have on file a certificate 

or permit duly issued 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. Employees · hall have the right to organize and bargain collecti\ely 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. 

3. No employee and no one seeking employment shall be required 

as a condition of employment to join any company union, or to 

refrain from joining organizing, or assisting a labor organization 

of his own choosing, and 

4. Employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions of employment, 

approved or prescribed by the President. 

5. Within each State this Code shall not supersede any laws o£ 

such State imposing more stringent requirements of employment 

regulating the age of employees, wages, hours of work, or health, 

fire, or general working conditions than under this Code. 

6. Employers shall not reclassify employees or duties of occupations performed by employees so as to defeat the purposes of the Act. 

7. No employer shall engage any employee for any time, which, 

when totaled with that already performed with another employer, or 

employers, exceeds the maximum permitted herein. 

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

personnel. 

9. No employer shall pay an employee less than for the full schedule daily hours of work for any employment in any one day. If an 

employee is required or permitted to wait for work, he shall be 

paid at his normal rate for such time. No increases in the amount 

of production work shall be required of employees, for the purpose 

of avoiding the benefits to employees prescribed in this Code, in 

respect to wages and hours o£ employn1ent. All new requirements 

shall be reported to the Code Authority. 

10. Every employer shall provide for the health and safety of his 

workmen. He shall comply with all National, State, and local 

ordinances and provisions o£ safety and health; and to protect his 

employees by Workmen's Compensation Insurance, according to the 

amounts required in his State or jurisdiction or the United States 

Employees' Compensation Insurance, if that State has not established a compensation scheme for this Industry. 

11. Each employer shall post in conspicuous places full copies o£ 

this Code. 
503 

ARTICLE VI-ADMINISTRATION 

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

hereby constituted to cooperate with the Administrator in the administration of this Code. 

1. Organization and Oomtitution of Code Authority.-(a) The 

Code Authority shall consist of seven (7) persons who shall be officers or executives of an employer engaged in the Industry, five (5) 

of whom shall be appointed by the Director Association, and two 

(2) of whom shall be appointed by a majority vote of the members 

of the Code who are not members of the Association, present at a 

meeting duly called for that purpose (and for such other business 

as may be found desirable), which meeting shall be held during 

the month of September in each year at the call of the Board of 

Directors of the Association, who shall fix the time and place of 

the meeting. Notice of the time and place of holding said meeting 

shall be sent by registered mail by the Secretary of the Association 

at least ten ( 10) days before the meeting to every member of the 

Code who is not a member of the Association who shall have signified 

his or its intention to participate under this Code, and to all other 

such members in this Industry not a member of the Association whose 

names and addresses are known to the Code Authority. Each person present at the meeting shall cast one vote for the employer he 

represents, but not more than one representative of each employer 

shall vote. Voting by proxy shall be permitted. Until such meeting shall be had, said two members shall be elected by majority 

vote of the nonmembers of the Association by a vote taken by mail 

under conditions made by the Association and approved by the 

Administrator. 

(b) The Administrator may appoint (not to exceed three) additional members, to serve without expense and without vote, to represent the Government. They are to be appointed for terms of from 

six ( 6) months to one ( 1) year, and, if more than one is appointed, 

their terms are to be so arranged that they do not expire at the same 

time. 

(c) 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 Administrator true copies of its articles of association, 

bylaws, regulations, and any amendments when made thereto, together with such other information as to membership, organization, 

and activities as the Administrator may deem necessary to effectuate 

the purposes of the Act. 

(d) 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 provide 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. 

2. The Code Authority shall have the following duties and powers 

to the extent permitted by the Act, subject to the right of the Administrator on review to disapprove or modify any action taken by the 

Code Authority. 
504 

(a) The Code Authority shall be the general planning and fair 

practice agency for the Industry. The Code Authority shall have 

the powers and duties specifically provided herein, shall make such 

reports as the Administrator may require, and in addition thereto 

shall have full power and authority, subject to review by the Administrator, from time to time to require such reports from members 

of the industry with respect to capacity, production and orders for 

shipment, persons employed, wages and hours of labor, prices, costs 

and methods of costing, and other items as may be necessary to advise 

the Administrator adequately in the administration and enforcement 

of the provisions of this Code ; and to provide for the standardization 

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

power and authority to make rules and regulations for its own conduct and the administration of this Code, subject to the approval of 

the Administrator, and to do all things necessary or proper to enable 

the Industry to function under this Code and to give effect to the 

rules, regulations, and conditions herein contained or promulgated 

hereunder, subject, however, to review by the Administrator. 

(b) In order to assure confidential treatment of individual figures, 

all reports, data, and information which the said Code Authority is 

empowered to collect or receive shall be collected or received by an 

agent appointed by the Code Authority, not a member or connected 

with a member of the Industry. The Code Authority shall likewise 

appoint such an agent or agents to make such investigations to the 

extent permitted by the Act on complaints of violation of this Code 

as may be deemed necessary. All reports, data, and information so 

collected or receivedt or so obtained on any such investigation, shall 

be kept confidential by such agent or agents collecting, receiving, or 

obtaining the same, except that any such reports, data, or information shall be available to the Administrator upon demand and except 

that in the event any such reports, data, or information shall substantiate any claimed violation of this Code, then the Code Au+-hority 

shall be informed and may present evidence of any such violation to 

the Administrator. 

3. The Code Authority may delegate any of its powers or functions to subcommittees or to such other agents as it may specifically 

determine, provided, however, that the Code Authority shall not be 

relieved of responsibility with respect to· any such delegated powers 

or functions; that such subcommittees or other agents in the exercise of such delegated powers or functions shall comply with all 

applicable provisions of this Code. 

4. Members of the Industry shall be entitled to participate in and 

share the benefits of the activities of the Code Authority and to 

participate in the selection of the members thereof by assenting to 

and complying with the requirements of this Code and sustaining 

their reasonable share of the expenses of its administration. The 

reasonable share of the expenses of administration shall be determined by the Code AuthorityJ on the basis of volume of business 

or such other factors as may be deemed equitable to be taken into 

consideration. 

5. In addition to the information required to be submitted to the 

Code Authority2 there shall be furnished to governmental agencies 

such statistical Information as the Administrator may deem necessary for the purposes recited in Section 3 (a) of the Act. 
505 

ARTICLE VII-UNIFORM CosT AccouNTING 

1. It is the judgment of this Industry that accurate knowledge of 

costs is indispensable to the proper administration of the provisions 

of this Code. Each manufacturer subject to the jurisdiction of this 

Code may install such simplified uniforn1 system of accounting as 

may be recommended by the Code Authority (or its properly authorized agent). 

2. There shall be no selling below allowable cost. It shall constitute a violation of this Code for any member of the Industry to 

sell below his allowable cost, which " allowable cost" shall be the 

sum of: 

(a) llf aterial 0 osts.-The seller's original cost of material, or if 

replacement be lower, then the replacement cost (based on cost furnished monthly or oftener if necessary by authority of the Code Authority, or its properly authorized agent), and if any materials are 

used for which costs are not furnished monthly or oftener, as herein 

provided, the cost used for such item or items shall be the seller's 

total current delivered replacement cost; plus 

(b) Cost of containers and/ or packages, plus 

(c) Oost of Processing.-To include all direct costs (such as power 

and labor), depreciation figured in accordance with provisions of the 

Federal Income Tax laws, plus a proper proportion of all indirect 

factory expenses (excepting interest on investment), in accordance 

with the share each product should bear, provided that the distribution of indirect factory expense per unit of production shall be on 

the basis of the average rate of utilization of ~lant ~acilities of the 

members of the Association, during the years of 1928 to 1932 inclusive, and provided that such average rate shall not include any plants 

not in operation, plus 

(d) A reasonable percentage to be determined by the Code Authority of the "Manufactured Cost", the sum of (a) plus (b) plus 

(c), provided that taxes, insurance, reserves of any nature, accumulated unearned burden, interest on investment, interest or charges on 

funded or other debt shall not be included under (c) Cost of 

Processing. 

3. In the case of any complaint by an interested party that a manufacturer is violating the above cost provisions, the Code Authority 

shal1l request proof of compliance from the accused manufacturer. 

If the Code Authority or the Administrator is not satisfied by the 

proof furnished by the defendant manufacturer the matter is to be 

referred to the F ederal Trade Commission who shall audit the cost 

accounting of the defendant and review his allocation of burden. 

The report of the Federal Trade Commission regarding the costs of 

the defendant manufacturer shall be final insofar as the Code Authority is concerned, and upon the receipt of such report the Code 

Authority shall act in accordance with theN ational Recovery Act. 

ARTICLE VIII-TRADE PRACTICES 

The following practices constitute unfair methods of competition 

for members of the Industry and are prohibited: 

1. False Marrking or Branding.-The false marking, invoicing, or 

branding of any product of th€ Industry which has the tendency 
506 

to mislead or deceive customers or prospective customers, whether as 

to the grade, qual'ity, quantity, substance, character, nature, origin, 

size, finish, or preparation of any product of the Industry, or 

otherwise. 

2. Misrepresentation or False or Misleading Advertising .-The 

making or causing or knowingly permitting to be made or published 

any false, materially inaccurate, or deceptive statement by way of 

advertisement or otherwise, whether concerning the grade, quality, 

quantity, performance, substance, character, nature, origin, size, finish, or preparation of any product of the Industry, or the credit terms, 

values, policies, or s~rvices of any member of the Industry or otherwise having the tendency or capacity to mislead or deceive customers or prospective customers. 

3. 0 ommercial Bribery.-Directly or indirectly to give or permit 

to be given, or offer to give, money or anything of value to agents, 

employees, or representatives of customers or prospective customers, 

or to agents, employees or representatives of competitors' customers 

or prospective customers, as an inducement to influence their employers or principals to purchase or cont~act to purchase from the 

makers of such gifts or offer, or to influence such employers or principals to refrain from dealing or contracting to deal with competitors. 

4. Interference with Contractual Relations.-Maliciously inducing 

or attempting to induce the breach of an existing oral or written contract between a competitor and his customer or source of supply, 

or interference with or obstructing the performance of any such 

contractural duties or services. 

5. Secret Rebates.-The secret payment or allowance of rebates, 

refunds, commissions,-credits, or unearned discounts, whether in the 

form of money or otherwise, or the secret extension to certain purchasers of special services or privileges not extended to all purchasers 

on like terms and conditions. 

6. Giving of Prizes, Premi'UfffiJJ, or Gifts.-The offering or giving 

of prizes, premiums, or gifts in connection with the sale of products, 

or as an inducement thereto, by any scheme which involves lottery, 

misrepresentation, or fraud. 

7. Threats of Litig{])tion.-The publishing or circularizing of 

threats or suits for infringement of patents or trade marks or of any 

other legal proceedings not in ~ood faith, with the tendency or effect 

of harassing competitors or intimidating their customers. 

8. Espionage of Oompetitors.-Securing confidential information 

concerning the business of a competitor by a false or misleading 

statement or representation, by a false impersonation of one in 

authority, by bribery, or by any other unfair method. 

9. All prices quoted and all sales made shall be upon the basis of 

freight-on-board, either job or factory, as the member of the Industry may elect. 

10. The terms of sale shall uniformly be established at not to 

exceed two percent discount for payment within ten days, or end 

of month, w1th net terms of not to exceed sixty days. 

11. No sales shall be influenced under the guise of reciprocity. 

There shall be no false invoicing of any nature whatsoever and no 

giving of free merchandise. 
507 

12. It shall be proper for any member to invoice its subsidiary 

companies or a fellow member in any manner whatsoever for resale 

but not for contract installation; provided, however, that the parent 

company shall be responsible for the adherence of such sub idiaries 

to the stan lards of fair competition as set up in this C de. Products of the Industry, supplies for contract application to subsidiary 

companies, to fellow members, to contract departments or divisions, 

or in any other manner, shall be supplied subject to all provisions 

of this Code. 

13. The practice of supplying trade sales accounts on c-onsjgnment 

is prohibited. No member of the Industry shall indirectly violate 

this Article by any subterfuge such as that commonly lrnown as 

warehousing arrangements. Every manufacturer who has such consignment stocks in the hands of buyers on the effective date of this 

Code may continue the same but he shall file a detailed list of such 

accounts with the Code Authority where references may be made to 

it at any reasonable time by interested parties. If any manufacturer 

finds it necessary to take over a stock on a consignment basis for 

legitimate credit reasons, he shall be permitted to do so, but shall 

immediately report the circumstances to the Code Authority. No 

merchandise of a liquid chemical nature shall be subject to return 

for credit or exchange, and all other returns must be in unopened 

original containers within thirty days after delivery, prepaid by the 

customer and credit shall be subject to a 10% deduction for handling 

charges. 

14. In addition to warranties implied by law, the manufacturer 

may assume full guarantee for the quality of his products, which 

guarantee shall be limited in amount to the sum of money received 

for such products. But in no event shall the manufacturer issue a 

guarantee covering the performance of the product in work where he 

does not supply the workmanship. 

15. There shall be no deviation for the purposes of influencing 

a customer or prospective customer from the published and previously established specifications and recommendations of a particular member for a particular product. 

16. No member shall agTee or guarantee to furnish sufficient quantities of the materials covered by this code for any building or 

eonstruction operation at a lump sum price. To quote such lump 

sum bid shall constitute an unfair trade practice. 

17. Nothing in this Code shall limit the effect of any adjudication 

by the Courts or holding by one Federal Trade Commission on 

complaint, finding, and order, that any practice or method is unfair, 

providing that such adjudication or holding is not inconsistent with 

any provision of the Act or of this Code. 

ARTICLE IX-MODIFICATION 

1. This Code and all provisions thereof are expressly made subject to the right of the President, in accordance with the provisions 

of subsection (b) of Section 10 of the National Industrial ReC'overy 

~ct, from time to time to cancel or modify any order, approval, 

hcense, rule, or regulation i sued under Title I of said Act and 

specifically, but without limitation, to the right of the President to 
508 

cancel or modify his approval of this Code or any conditions imposed by him upon his approval thereof. 

2. This Code, except as to provisions required by the Act, may 

be modified on the basis of experience or changes in circumstances, 

such modification to be based upon application to the Administrator 

and such notice and hearing as he shall specify, and to become effective on approval by the President. 

ARTICLE X-~10NOPOLIES, ETC. 

No provisions of this Code shall be so a l>Plied as to permit monopolies or monopolistic practices, or to elirmnate, oppress, or discriminate against small enterprises. 

ARTICLE XI-PRICE INCREASES 

Whereas the policy of the Act to increase real purchasing power 

will be made impossible of consummation if prices of goods and services increase as rapidly as wages, it is recognized that price increases 

should be delayed and that, when made, the same should, so far as 

reasonably possible, be limited to actual increases in the seller's costs. 

ARTICLE XII-EFFECTIVE DATE 

This Code shall become effective on the first Monday after ita 

approval by the President. 

Approved Code No. 140 

Registry No. 1610--06 

0 

UNIVERSITY OF FLORIDA 

II I II \\IIIII\\ 11111111 IIIII II Ill\ IIIII\ \IIIII \\\Ill II \Ill IIIII I I 

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