UNIVERSITY OF FLORIDA 

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3 1262 08483 0016 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

ASPHALTIC LIMESTONE 

INDUSTRY 

AS SUBMITTED ON AUGUST 22, 1933 

REGISTRY No. 1026-08 

The Code for the Asphaltic Limestone Industry 

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

industry, and none of the provisions contained therein are 

I lo ' 

u. 

to be regarded as having received the approval of 

the National Recovery Administration 

as applying to this industry 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1933 

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

CODE OF FAIR COMPETITION FOR THE ASPHALTIC 

LIMESTONE INDUSTRY 

ARTICLE I-PURPOSE 

SECTION 1. In order to cooperate with the President of the United 

States and to effectuate the policy of Congress as expressed in Title I 

of the National Recovery Act, the Asphaltic Limestone Industry, as 

represented by the National Asphaltic Limestone Association, has 

adopted this code as a means of increasing employment, the establishment of fair and reasonable wages, the reduction of hours of labor, 

the improvement of working conditions, and the prevention of overproduction and of destructive and unfair competitive methods, to the 

end that this industry may be stabilized and placed on a sound basis 

and thereby be enabled to take its proper part in advancing the 

public welfare. 

SEc. 2. The members of theN ational Asphaltic Limestone Association represent a substantial percentage of the producing capacity of 

the asphaltic limestone industry. It will not be the purpose of this 

code to further the establishment of a monopoly nor to eliminate, 

oppress, or discriminate against small industries. 

ARTICLE II-DEFINITIONS 

SECTION 1. As used in this code, the term "producer" is considered 

to be any person, firm, corporation, or association engaged in the 

quarrying, mining, and/or crushing, and/or grinding, and/or processing 

of asphaltic limestone or bituminous limestone for any and all purposes. 

SEc. 2. The term "effective date", as used herein, is defined to be 

the tenth day after this code shall have been approved by the President of the United States. 

SEC. 3. The term " association", as used herein, is defined to be the 

National Asphaltic Limestone Association. 

ARTICLE III-ORGANIZATION AND ADMINISTRATION 

SEcTION 1. Administration.-This Code of Fair Competition shall 

be administered by the National Administrative Committee of the 

National Asphaltic Limestone Association. The provisions for election of the National Administrative Committee are given in the 

Articles of Organization and By-Laws of the Association, which are 

attached hereto as Appendix I. 

SEc. 2. Duties of National Administrative Committee.-This Committee shall be the general planning, coordinating, and administering 

agency for the industry. This Committee is charged with the duty 

of formulating such rules and regulations as may be necessary for 

the administering and enforcement of this code. The Committee 

shall take such steps as, in its judgment, are necessary to full and 

proper administration of this code and shall, upon the complaint of 

8657--33 (1) 
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interested parties, or upon its own initiative, make such inquiry and 

investigation as to the operation of the code as may be necessary. 

The committee may appoint such subcommittees and may designate 

such other agents as it may determine. 

This section shall not be construed as denying the right of 

any producer or producers to appeal to the National Recovery 

Administration. 

SEc. 3. State Administrative Committee.-There shall be organized 

in each producing State a State Administrative Committee which 

committee shall administer the provisions of this Code of Fair Competition in that State, and in the normal market region reached by 

the producers of the State. 

SEc. 4. Duties of State Administrative Committee.-This Committee 

shall serve, under the National Administrative Committee, as a plan- nin~, coordinating, and administrative agency in each marketing 

regwn. 

SEc. 5. Election of State Administrative Committee.-Each producer 

in a producing State shall have the right to name one of its executive 

officers as a member of the State Administrative Committee. 

SEc. 6. Voting by the National Administrative Committee.-Eacb 

member of this Committee shall be entitled to one vote irrespective of 

the amount of production of his own plant or of the State or marketing region which he represents. 

SEc. 7. Voting by State Administrative Committee.-A meeting of 

the State Administrative Committee may be called at the instance of 

producers representing twenty-five percent of the number of companies within the producing State, or producers representing twentyfive percent of the production within the State, or at the call of either 

the Chairman of the State Administrative Committee or of the ~ ational Administrative Committee. At meetings of the State 

Administrative Committee voting shall be by ballot, each member to 

vote in accordance with his average annual production for the three 

preceding years, each to cast one vote for each one thousand tons, or 

major fraction thereof, of asphaltic limestone representing the average 

tonnage which he has manufactured and invoiced during the preceding 

three years. 

SEc. 8. Organization of State Administrative Committee.-At the 

first meeting the committee shall elect from its members a Chairman, 

a Vice Chairman, and a Secretary. These officers shall serve for one 

year, or until their successors are elected. 

SEc. 9. Interregional regulations.-Proposals in respect to interpretation and enforcement of this code affecting more than one 

producing State or marketing region may be made to the National 

Administrative Committee by any State Administrative Committee 

and the decision of the National Administrative Committee shall be 

final. 

SEc. 10. Right of appeal.-Appeal from any decision by a State 

Administrative Committee may be taken to the National Administrative Committee. The decision of the National Administrative 

Comn1ittee shall be final except for appeal to the National Recovery 

Administration. Any producer may exercise the right of appeal, as 

herein provided, from any decision affecting the interests of such 

producer. 
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SEc. 11. Arbitration.-Complaints or controversies, involving labor, 

the consuming interests, or other groups outside of the producing 

industry which cannot be satisfactorily settled by the National Administrative Committee, shall be referred to an Arbitration Board 

composed of equal representation from each of the groups involved 

in the complaint or controversy, together with a neutral arbiter 

selected by the appointed members of the Arbitration Board. 

SEc. 12. Statistics.-All producers shall file with the Association 

such records as may be required by the National Administrative 

Committee regarding hours of labor, rates of wages, production, 

stocks on hand, sales, and such other information as may be necessary 

to accomplish the objective of this code. Such records shall be 

accompanied by affidavits of the producer certifying as to the accuracy thereof. All records so filed with the Association shall be held 

as confidential documents except that they may be available to the 

National Recovery Administration. 

SEc. 13. Administration expense.-All producers subscribing to and 

governed by this code shall -bear their proportionate share of the 

expense incident to the initiating, securing the approval of, and the 

administering of this code. These funds shall be collected through 

the Association. A report of receipts and disbursements shall be 

sent to each producer quarterly. 

ARTICLE IV-HOURS OF LABOR AND RATES OF PAY 

SECTION 1. Labor conditions in accordance with the requirements of 

the National Industrial Recovery Act.-

(a) Employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be 

free from the interference, restraint, or coercion of employers of 

labor, or their agents, in the designation of such representatives or 

in self-organization or in other concerted activities for the purpose 

of collective bargaining or other mutual aid or protection. 

(b) No employee and no one seeking employment shall be required 

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

refrain from joining, organizing, or assisting a labor organization of 

his own choosing. 

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

minimum rates of pay, and other conditions of employment approved 

or prescribed by the President. 

SEc. 2. Hours of Labor.-With the exceptions hereinafter set forth, 

no plant employee shall work more than an average of 35 hours per 

week in the six months' period from February 1 to August 1 or in 

the six months' period from August 1 to February 1. Provided 

further, that no plant employee shall work more than 48 hours in 

any one week nor more than 8 hours in any one day. No accounting 

clerical, or office employees shall work more than 40 hours in any one 

week. Exceptions to the maximum number of working hours outlined herein shall include professional, executive, administrative, or 

supervisory employees; traveling or outside salesmen; emergency 

employment occasioned by breakdowns and other factors beyond 

control; watchmen and employees, not exceeding 10% of the total 

number of employees, required to make it possible for the regular 

production organization to work the full allotted time. 
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SEc. 3. Rates of Pay.-(a) The mm1mum rate of pay per hour 

for unskilled labor in those States in which asphaltic limestone is 

produced shall be as follows: 

State 

Alabama ____ _______ _________ _ 1'exas ____ ____ __ ____ ___ __ _____ _ 

Oklahoma . .. _ . . ____ _______ . __ 

Minimum 

rate 

$0.30 . 30 

. 30 

(b) On the effective date of this code, the wages of all employees 

above the classification of unskilled labor and not otherwise specified 

now receiving less than $35.00 per week, shall be restored to the same 

hourly rate as paid on July 15, 1929, by the asphaltic limestone 

industry in each producing state, or shall be maintained on the same 

hourly rate as was in effect on July 15, 1933, whichever hourly rate 

may be the higher. 

(c) The minimum rate of wage for accounting, clerical, or office 

employees shall be as follows: $15.00 per week in any city of over 

500,000 population, or in the immediate trade area of such city; 

$14.50 per week in any city between 250,000 and 500,000 population, 

or in the immediate trade area of such city; $14.00 per week in any 

city of between 2,500 and 250,000 population, or in the immediate 

trade area of such city, and $12.00 per week in towns of less than 

2,500 population. Population shall be determined by the 1930 

Federal Census. 

(d) Wages shall be paid in lawful money or bankable check at the 

option of the producer. Deductions may be made from pay of 

employees for house rentals, store accounts, and other legitimate 

items. 

SEc. 4. Piece-work.-No piece-work shall be permitted which shall 

decrease the minimum hourly wage or increase the number of hours 

of work per week as provided in this code. 

SEc. 5. Penallabor.-N o penal labor shall be used in the production 

of asphaltic limestone. 

SEc. 6. Child labor.-The minimum age for labor employed in the 

asphaltic limestone industry shall be the legal limit as provided by 

the laws of the state in which the operation is located, but in no case 

shall this age be less than 16 years. 

ARTICLE V-MARKETING PRACTICES 

SEcTION 1. Selling Below Cost.-Sound econon1ic principles require 

the sale of material at such a price, or prices, as will realize to the 

producer the fair average cost of production and sale plus a reasonable margin of profit; and, therefore, no producer shall sell his product below the average annual cost of production and sale based on 

normal market operations for his market area. 

SEc. 2. Uniform Cost Accounting.-The National Administrative 

Cmnmittee shall establish a uniform cost accounting system, and 

each producer shall adhere to the uniform system adopted for this 

industry, to the extent of incorporating in all calculations of cost all 

the elements outlined in the standard cost accounting system. 
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SEc. 3. Determination of Oosts.-Each State Administrative Committee may determine the average production cost for such State, and 

no producer selling his product in that State, or in the market region 

supplied by producers of that State, shall sell below such determined 

cost. The average cost as determined shall be subject to the review 

and approval of the National Administrative Committee. 

SEc. 4. Uniform Terms of Sale.-All quotations and contracts for the 

sale of any product of a producer shall be in writing and shall contain 

a definite statement of price, quantity, terms of payment, time and 

place of delivery, and all other items necessary to form a complete 

understanding. 

SEc. 5. Uniform Credit Practices.-The National Administrative 

Committee may establish uniform credit practices which shall be 

binding upon all producers. 

ARTICLE VI-PLANT CAP A CITY AND NEW PRODUCTION 

SECTION 1. To promote the fullest possible utilization of the present 

excessive production capacity of the industry, and to effectuate the 

other purposes of the National Industrial Recovery Act, before a new 

plant may be established or the producing capacity of an existing 

plant be increased, or an existing plant be removed from one producing 

site to another, formal notice of such intent must be given to the State 

Administrative Committee of the state or market area in which the 

new production capacities are to be located. Upon receipt of such 

notice, the State Administrative Committee shall promptly collect 

complete information concerning the existing production capacity 

in that state and in the adjacent market area. If this investigation 

discloses that such new production capacity will not tend to defeat 

the purposes of the National Industrial Recovery Act as herein set 

forth, then the State Administrative Committee shall grant permission for the proposed increase in production capacity in that state or 

in the adjacent market area. If, however, this investigation discloses that commercial production of asphaltic limestone is economically available in adequate quantity in the market area, and such 

proposed increase in production capacity does tend to defeat the purposes of theN ational Industrial Recovery Act as herein set forth, the 

State Administrative Committee shall then deny permission to 

increase the production capacity in that state or adjacent market 

area, and shall so recommend to the National Administrative Committee. The final decision of the National Administrative Committee shall be binding, except for appeal only to the National 

Recovery Administration. 

SEc. 2. The provisions of Section 1 shall not be construed as preventing a producer established and in operation on July 1, 1933, from 

improving the efficiency of his plant through the installation of new 

machinery or adopting such methods as ·will lower production costs. 

It will be permissible for a producer established and in operation 

prior to July 1, 1933, to move his plant to another quarry site belonging to the same producer, provided that increased production capacity 

in the market region is not developed as a result of such movement. 
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ARTICLE VII-UNFAIR CoMPETITIVE PRACTICES 

SECTION 1. Secret Rebates .-N 0 producer shall make a secret prepayment of transportation charges or permit the payment or allowance 

of secret rebates, refunds, credits or unearned discounts, whether in 

the form of money or otherwise, or the giving of premiums, or extending to certain purchasers special service or privilege not extended to 

all purchasers under like terms and conditions. 

SEc. 2. Interference in Contracts.-No producer shall wilfully interfere with any person, firm, corporation or association by any means 

or device whatsoever, in any existing contract or order between a seller 

and a purchaser in or about the production, manufacture, transportation, purchase, or sale of the product handled by the industry or the 

performance of any contractural duty or service connected therewith, 

destroying or appropriating in whole or in part the patronage, property or business of another engaged in the asphaltic limestone industry. 

SEc. 3. Unfair Sales Promotion.-No producer shaJl attempt to 

capita]ize on or take unfair advantage of legitimate sales promotion 

of his con1petitor. 

SEc. 4. Defamation of Competitor.-No producer shall defame a 

competitor by words or acts, falsely imputing to him dishonorable 

conduct, inability to perform eontracts or questionable credit standing, or by the false disparagement of the grade or quality of hi~ material. 

SEc. 5. Conformity with Specijication Requirements.-No producer 

shall sell or offer for sale any prvduct of the industry with intent to 

deceive customers or prospective customers as to the quality, quantity, 

size, grade, or substance of such product. 

SEc. 6. A1isbranding.-No producer shall mark or brand products 

of the industry for the purpose or with the effect of misleading ordeceiving purchasers with respect to the quality, quantity, size, grade, 

or substance of the materials purchased. 

SEc . 7. Payment of Commission.-N o producer shall pay or promise to pay to any employee of a customer or pro::;pective customer, a 

commission or consideration of any character for the purpose of inducing, or compensating for, a sale. 

SEc. 8. Commercial Bribery.-N o producer shall offer or give commissions, prizes, premiums, gifts, excessive entertainment, or other 

benefits as an act of commercial bribery to anyone in connection with 

the sale, purchase, or use of his products, or as an inducement thereto. 

SEc. 9. Lump-Sum Bidding and Contingent Selling.-(a) No producer shall sell his prod11ct except on a unit-price hasis. 

(b) No producer shall enter in to any con tract for furnishing any 

of his products contingent upon the sale or purchase of any other 

thing, the performance of any other service, or any other contingency 

not appearing in the contract or complying with this code. 

SEc. 10. Antidumping.-No producer shipping his product into 

regions, or subdivisions thereof, outside of the natural market area in 

which his plant is located, shall sell such material below the general 

market price prevailing in the region into which shipments are made. 

SEc. 11. Enticement of Employees.-No producer shall entice employees from a competitor for the purpose of interfering with his 

business. 
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SEc. 12. Accident Prevention.~Every producer shall lend his cooperation and active support to the program of his Association for 

the reduction of accidents in the conduct of his operations. No 

producer shall be permitted to expose his employees to unnecessarily 

dangerous working hazards, and cases of flagrant disregard of the life 

and health of employees shall constitute a violation of this code. 

Every producer shall carry and keep in force adequate Workmen's 

Compensation and Public Liability Insurance. 

SEc. 13. Enforcing Observance by Agents and Distributors.-No producer shall permit his products to be handled by a middleman, salesman, agent, jobber, or distributor standing between producer and 

consumer who violates, in any way, the provisions of this Code of 

Fair Competition. Violation by such middleman, salesman, agent, 

jobber, or distributor shall be considered as a violation of this code 

on the part of the producer whose product is so handled. 

SEc. 14. Observance of Patent Rights.-Producers shall observe all 

patent or trade-mark rights belonging to other producers, and violation of such rights shall be considered as a violation of the provisions 

of this code as well as of the laws of the United States. 

ARTICLE VIII-ENFORCEMENT 

SECTION 1. Any producer shall have the right to bring to the attention of his State Administrative Committee any violation of any 

section of this code. The State Administrative Committee shall 

thereupon undertake such steps as may be necessary to enforce the 

requirements of this code and, if necessary, refer the question in 

dispute to the National Administrative Committee, which shall then 

undertake such steps as may be necessary to correct such unfair 

competitive practice. 

ARTICLE IX-CHANGES IN THE ConE 

SECTION 1. This code and all provisions thereof are expressly made 

subject to the right of the President, in accordance with the provision of Clause 10 (b) of the National Industrial Recovery Act, from 

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

or regulation issued under Title I of said Act, and specifically to the 

right of the President to cancel or modify his approval of this code 

or any conditions imposed by nrm upon his approval thereof. 

SEc. 2. The National Administrative Committee shall, from time 

to time, make such recommendations to the President for changes in 

this code as it shall be authorized to do by a majority of the votes cast 

by the producers engaged in the industry governed by this code, after 

each producer shall have been given a fair opportunity to vote upon 

such change. Such vote may be by letter ballot. 

ARTICLE X 

SECTION 1. This code as approved by the President of the United 

States shall become mandatory upon all producers of asphaltic limestone throughout the United States. 

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