Approved Code No. 359 Registry No. 1637-13 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR . COMPETITION 

FOR THE 

PREFORMED PLASTIC 

PRODUCTS INDUSTRY 

AS APPROVED ON MARCH 23, 1934 

WE DO OUR PART 

U.S. DEPOSiTO.~ 1 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 19-34 

.. 

I I [ 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Pri ce 5 centa 

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. 

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 Baltimore Avenue. 

Los Angeles, 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. 

Phi'ladelphia, Pa. : 422 Commercial Trust Building. Pittsburgh, Pa. : Chamber of Commerce Building. 

Portland, Oreg. : 215 New Post Office Building. 

St. Louis, Mo. : 506 Oliv Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wa. b.: 809 Federal Office Building. 
Approved Code No. 359 

CODE OF FAIR COMPETITION 

FOR THE 

PREFORMED PLASTIC PRODUCTS INDUSTRY 

As Approved on March 23, 1934 

ORDER 

APPROVING ConE OF FAIR COMPETITION FOR THE PREFORMED PLASTIO 

PRODUCTS 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 Preformed Plastic Products Industry, 

and hearings having been duly held thereon and the annexed report 

of 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 the 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 provisions of Article VII, Section 1, insofar as they 

prescribe a waiting period between the filing with the Code Authority and the effective date of revised price lists, terms and conditions 

of sale be, and they are hereby stayed pending my further Order 

either within a period of sixty (60) days from the effective date <?f 

this Code or after the completion of a study of open price associations now being conducted by the National Recovery Administration. 

HUGH s. JOHNSON' 

Administr(J)tor for Industrial, Recovery. 

Approval recommended: 

A. R. GLANCY, 

Division Adniinistrator. 

w ASHINGTON, D.C., 

March f3, 1934. 

48299°-425-133-34 ( 409) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

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

Preformed Plastic Products Industryha hearing on which was con- ducted in Washington on the thirteent of February, 1934, in accord- ance with the provisions of the National Industrial Recovery Act. 

PROVISIONS OF THE CODE AS TO WAGES AND HOURS 

The Code limits the work week to forty (40) hours and to six (6) 

days, and the day to eight (8) hours. Exceptions are allowed tor 

executives and their secretaries receiving thirty-five ($35.00) dollars or more per week, salesmen and watchmen. Thie last are 

limited to fifty-six ( 56) hours. Further exceptions are provided :for 

emergency crews who receive time and one-third :for overtime, and 

for seasonal peaks o:f production the limit is lifted to an average of 

forty ( 40) hours :for six ( 6) weeks, with time and on_e-hal:f for time 

in excess of :forty ( 40) hours per week. 

The Code provides a minimum rate of pay of forty ( 40¢) cents 

per hour for common labor, fourteen ($14.00) dollars to fifteen 

($15.00) dollars per week for office employees ( depending on the 

size o:f the community) and for equitable adjustments of wages 

above the minimum. 

The Code prohibits employment of persons below sixteen (16) 

years of age, or below eighteen ( 18) years in manufacturing operations. Provisions are to be made for the safety and health o:f the 

employees and a report submitted thereon. 

ECONOMIC EFFECTS OF THE CODE 

This is a small indu try, em:ploying in 1933 219 workers as com- pared with 395 in 1929. Their principal product, asphalt expansion joints :for concrete roads, depends :for its ale on the volume of 

construction. 

. With increased purcha, ing power released through the general 

adoption of other codes and various construction programs in progre s timulation in the activity of industries :furnishing the demand 

for products of this industry will automatically act to increase employment here. The forty ( 40) hour provision is in line with provisions in other capital o-oods codes and represents a thirty (30%) 

perc nt reduction from the average hours of 1930. 

pprox·mately sixt -five (65% ) percent of the factory workers 

will b benefitted by the forty ( 40¢) cent minimum wage rate. 

The Industry has been stabilized by agre ments between the patent holder and his licen ees. In anticipation of the expiration of 

(410) 
411 

these agreements the larger companies are commencing a price war 

to the gre&t damage of their smaller competitors, and it is hoped 

that the prompt approval of this Code will ,serve to arrest this destructive competition and preserve the industry. 

FINDINGS 

The Assistant Deputy Administrator in his final report to me on 

said Code having found l'l,,s 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 policie,. and purposes of Title I of the National Indu trial 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 

po,ssible utilization of the present productive capacity of industries, 

by avoiding undue restriction of production ( except as may be temporarily required), by increasing the consumption of industrial and 

agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of 

labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally eu1ploys not more than 50,000 employees; and is not classified by me a,s 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 applicant Association is an industrial association truly representative of the aforesaid Industry; and that said As ociation 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 i;S 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 o.f the economic process have 

not been deprived of the right to be heard prior to appr~val of said 

C d - . -- - o e. 

For these reasons, therefore, I have approved this Code,-provided 

that certain provisions relating to price publication are stayed a,g 

stated in the order. 

Respectfully, 

MARCH 23, 1934. 

HUGH s. JOHNSON' 

Administrator. 
CODE OF FAIR COMPETITION FOR THE PREFORMED 

PLASTIC PRODUCTS INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial Recovery Act, the following provisions are established as a Code of 

Fair Competition for the Preformed Plastic Products Industry, and 

the provisions of this Code shall be the Standard of Fair Competition for such Industry and shall be binding upon every member 

thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term " Products " means preformed expansion 

joints, bituminous expansion joints, rubber expansion joints, fibrous 

expan ion joints, either saturated or unsaturated, cork expansion 

joints, as used in concrete and masonry construction, asphalt plank 

one-half inch or more in thickness, asphalt rail filler, asphalt rail 

cushion, asphalt cable trunking, rubber manhole cushions, asphalt 

or rubber sewer pipe belts, asphalt raggle block , asphalt cant strips 

mi cellaneous asphalt premoulded and/or preformed specialties used 

in con truction projects. 

SECTION 2. The term" Industry", as used herein, includes the busine of manufacturing, and selling by manufacturers and/or selling 

through agencies controlled by said manufacturers, the Products, 

and uch branches of subdivisions thereof a may from time to time 

be included under the provi ions of this Code except that, in the 

case of cork and rubber expansion joints, those portions of the man- ufacturing operations which come under the Cork or Rubber Codes 

are excluded. SECTION 3. The term 'Member of the Indu try ' includes anyone 

engaged in the Industry as above defined either as an employer or 

on his own behalf. 

SECTION 4. The term "Affiliate ' means a corporation of which a 

majority of the outstanding voting capital tock i owned by a mem- ber of the Indu try. 

SECTIO T 5. The term "Employee' ·as u ed herein includes anyone engaged in the Indu try in any capacitv receiving com.pen ation for his service irre pective of the nature or method of payment of uch compen ation, except a member of the Indu try. 

SECTION 6. The term "Employer , a used herein, includes any- · 

one by whom any such employee is compensated or employed. SECTION 7. The t rm "Pre ident" "Act" and "Administrator", 

as u d herein, shall m an r pe tiv ly the Pre ident of the United 

State , Title I of the ational Indu trial Recovery Act and the 

Administrator for Indu tri I Recovery. 

SECTION 8. Population, for the purpo e of this Code, shall be 

determined by reference to th lat t Federal Census. 

(412) 
413 

ARTICLE III-HouRs 

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

forty (40) hours in any seven (7) day period, or eight (8) hours 

in any twenty-four (24) hour period, nor more than six (6) days 

in any seven (7) day period, except that such hourly and daily 

limitations shall not apply to: 

(a) Employees regularly employed in an executive or supervisory 

capacity, or chemists engaged in testing and research, or personal 

secretaries of executives receiving in no week in which they are employed less than Thirty-five Dollars ($35.00) per week. (This exception, however, shall not apply to foremen regularly engaged in 

manual labor.) 

(b) Outside salesmen. 

( c) Employees on emergency maintenance or emerg~ncy repair 

work involving breakdowns or the protection of life or property, 

but in any such special case at lea t one and one-third (11/3 ) times 

the normal rate shall be paid for hours worked in excess of the 

maximum number of hours herein provided. 

( d) Periods of seasonal requirements during which employees 

may be permitted to work in excess of forty ( 40) hours in any ·even 

(7) day period or eight (8) hours in any twenty-four (24) hour 

period provided that during any six (6) weeks' period the number 

of hours of employment shall average not more than forty ( 40) 

hours for any seven (7) day period, nor more than six (6) days in 

any seven (7) day period; and provided, further, that in any such 

cases employees shall be paid not less than one and one-half (11⁄2) 

times the normal rate for all hours worked in excess of forty ( 40) 

hours for any seven (7) day period, or eight (8) hours per day. 

( e) Employees engaged a.s watchmen who may be permitted to 

work not in excess of fifty-six ( 56) hours in any seven (7) day 

period. 

SECTION 2. No employer shall knowingly permit any employee to 

work any time which, when totaled with that already perform.ed with 

another employer or employers, exceeds the maximum specified in 

this Article III. 

ARTICLE rv-vv AGEs 

SECTION 1. No employee shall be paid at less than the rate of 

forty cents ( 40¢) per hour. 

This minimum wage shall apply to common labor or other totally 

unskilled labor. Other classes of labor, including all piece-workers, 

shall be compensated at a rate above this minimum. The above 

minimum rate shall be exempt from any charge and/ or deduction by 

the employer. 

SECTION 2. Accounting, clerical, office, or sales employees ( excluding outside salesmen) in any office, department, or establishment 

shall not be paid less than at the rate of Fifteen Dollars ($15.00) 

per week in any city of 500,000 population or over, or in the immediate trade area of such city; and not less than at the rate of Fourteen 

Dollars and Fifty Cents ($14.50) per week in any city of between 

250,000 and 500,000 population, or in the immediate trade area of 
414 

such city; a.nd not less than at the rate of Fourteen Dollars ($14.00} 

per week in any other place. 

SECTION 3. This Article establishes a minimum 1ate of pay regardless of whether an employee is compensated on a time-rate, 

piece-work, or other basis. 

SECTION 4. Female employees performing sub tantially the same 

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

employees. 

SECTION 5. Employers shall make payments of all wages due in 

lawful currency or by negotiable check therefor payable on demand 

at least twice a month. 

SECTION 6. Employers shall not r educe the rates of wages for 

employees whose rate are now in excess of the minimum rate of 

wages herein provided ( notwithstanding that the number of hours 

worked in such employment may be hereby decreased ) and where 

in any case an employer has not increased the rates of wages for 

such employees prior to the effective date of this Code by an equitable 

readju tment of all such wage rates such employer shall readjust all 

such wage rates. This provision shall be interpreted in the same 

manner that paragraph 7 of the P resident's Reemployment Agreement has been interpreted by the Administrator in Interpretations 

Nos. 1 and 20. 

ARTICLE V-GENERAL LABOR PROVISIONS 

SECTION 1. No persons under 16 years of age shall be employed 

in the Industry nor -anyone under 18 years of age in manufacturing 

operation . 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 is ue employment 

or age certificate or permits hawing that the employee i of the 

required age. 

SE TION 2. Employee shall have the right to organize and bargain 

collectively through representative 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 u h repre entative or 

in elf-organization, or in other concerted acti itie for the purpo e 

of ollectiv bargaining or other mutual aid or protection. 

E TION 3. No employee and no one eking employment hall be 

required a a condition of employment to join any company union 

or to refrain from joining, organizing, or a i ting a labor or~anization of hi own choosing. 

SE TION 4. Employers shall comply with the maximum hour of 

labor minimum rates of pay, and other condition of employment 

approved or pre cribed by the President. 

SE TION 5. Within each State thi Code shall not upersede any 

State or Fe leral law impo ing more strinaent requirements on 

employer regulating the age of employee , wao·es hour of work, 

or health fire, or general working condition than un ler thi Code. 

SECTION 6. Employers hall not recla ify mployees or duties of 

occupations p rformed by employee or engage in any other subterfuge so as to d feat the purposes of the Act. 
415 

SECTION 7. Each employer shall po~t in conspicuous places in each 

department full copies of this Code. 

SECTION 8. 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; the number of such employees 

shall not exceed five per cent ( 5%) of the total number of employees. SECTION 9. Every employer hall make reasonable provision for 

the safety and health of his employees 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 within six months after the effective date of this Code. 

ARTICLE VI-ADMINISTRATION 

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

is hereby established to administer the Code. 

SECTION 1. Organization and Constitution of Code Authority: 

(a) The Code Authority shall consist of three individuals or uch 

number as may from time to time be approved by the Administrator, 

who shall be representatives of the Preformed Plastic Products Industry, to be elected as hereinafter provided. The Administrator, 

in his discretion, may appoint from one to three additional members 

who shall not, however, be vested with voting rights and shall serve 

without expense to the members of the Industry. 

(b) All voting members of the Code Authority shall be elected 

from Members of the Industry and shall be elected by a vote of twothirds of all members of the Industry who are qualified to vote at a 

meeting of the Members of the Industry to be held within ten days 

after the effective date of this Code. ( c) 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 Admini trator may provide such hearings as he may deem proper; and thereafter, if he shall find that 

the Code Authority is not truly repre entative or does not in other 

respects comply with the provisions of the Act, may require an 

appropriate modification in the method of election of the Code 

Authority. 

(d) The Code Authority shall adopt its own rule of procedure 

and may delegate its authority or such part thereof to such agencies 

as it shall select, provided nothing herein shall relieve the Code Authority from its duties or responsibilities under this Code and such 

agencies shall at all times be subject to and comply with the provisions 

thereof. 

( e) 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 by agreeing in writing to comply with the requirements of this 

Code and bearing their proportionate share of the reasonable expense 
416 

of its ad.mini tration. The rea onable share of the expenses of administration hall be determined by the Code Authority. Such 

expenses shall be determined on the basis of volume of business 

and/or such other factors as may be deemed equitable to be taken 

into con ideration. 

SECTION 2. The Code Authority hall have the following additional 

duties and powers to the extent permitted by the Act: 

(a) With a view to keeping the Pre ident and the Members of the 

Industry informed as to the observance or nonobservance of the Code, 

and as to whether Members of the Industry are taking appropriate 

step to effectuate the declared policy of the Act, the Code Authority 

shall: 

Report to the Administrator at such time and concerning such 

conditions in the Industry as the Administrator may from time to 

time require, and every Member of the Industry shall file in the office 

of the Code Authority at such time, in such form, and for such 

periods as required by the Code Authority, duly certified reports 

with re pect to wages, hours of lab9r, conditions of employment, 

number of employees, production, and other matters pertinent to the 

proper supervision of the Indu try as determined by the Code 

Authority. 

(b) In order to assist in making effective the reports from the 

Industry and in eliminating unfair competition, the Code Authority 

shall make studies and investigations for the establishment of classifications and standards of quality for products of the Industry, in 

cooperation with some Federal Government agency or agencies. 

( c) To appoint a trade practice committee which shall meet with 

the trade practice committees appointed under such other codes as 

may be related to the Industry for the purpo e of formulating fair 

trade practices to govern the relationships between production and 

di tribution employers under this Code and under such others to 

the end that such fair trade practices may be proposed to the Administrator as amendments to this Code and such other Codes. 

( d) All confidential information of any nature requested by the 

Code Authority shall be collected by the Code Authority or other 

agency not a member of the Industry selected by the Code Authority, and such information shall be kept confidential except when 

required by the Code Authority for the proper enforcement of the 

Code, and with the further exception that all such information shall 

be fully available to the Administrator. Only such information 

may be so requested by the Code Authority which is appropriate 

to the proper supervision of the Indu try or to the enforcement of 

this Code. 

( e) The Code Authority shall designate an agent or agents, not 

member of the Indu try, to inve tigate complaint of violations of 

the Code, under uch rules and regulation as may be pre cribed 

by the Administrator. 

(f) The members of the Industry hall facilitate all uch investigation by opening their correspondence, books, and accounts relating to alleged violation for examination by uch authorized agent 

and by furnishing relevant information. If, upon investigation any 

complaint of a v10lation of the Code shall be sub tantiated in any 

material respect, the member of the Industry guilty of such violation 
417 

~hall pay. the cost of the investigation ; otherwise the cost of the 

1nvestigat10n shall be borne by the complainant member of the 

Ip.dustry. 

The provisions of this Sub-section (f) of Section 2, Article VI, 

shall apply only to those members of the Industry who agree thereto 

jn writing which agreement shall be separate and apart from the letter of assent referred to and required of the members of the Industry by the provision of Sub-section ( e) of Section 1 of Article VI. 

(g) All such information shall be kept confidential by the agent, 

except ~hat i:J?- th_e event of any such violation being substantiated 

by the 1nvest1gating agency the Code Authority shall be informed 

and shall present evidence thereof to the proper department, agency, 

er judicial branch of the Government. 

SECTION 3. (a) Any interested party shall have the right of complaint to the Code Authority, and a prompt hearing and decision 

shall be made thereon under such rules and regulations as it may 

prescribe, in respect to any act of any agent or agency designated 

by the Code Authority to act in its behalf. 

(b) Any interested party shall have the right of appeal to the 

Administr ator, under such rules and regulations as he shall prescribe, with respect to any decision, rule, regulation, order or finding 

made by the Code Authority. 

SEOTION 4. In addition to information required to be submitted 

to the Code Authority, there shall be furnished to such Federal 

and State Government agencies such statistical information as the 

Administrator may deem nece sary for the purposes recited in 

Section 3 (a ) of the National I ndustrial Recovery Act, provided that 

nothing in the Code shall relieve any member of the Indu try of any 

existing obligation to furnish reports to government agencie . 

SECTION 5. The Code Authority may recommend to the Adminis- trator Amendments and modifications to this Code which shall 

become parts of this Code upon approval of the Administrator after 

such notice and hearing as he shall prescribe. SECTION 6. If the Administrator shall determine that any action of the Code Authority or agency thereof is unfair or unjust 

or contrary to public interest, the Administrator may require that 

such actjon be su pended for a period of not to exceed thirty days 

to afford an opportunity for investigation of the merits of such 

action and further consideration by the Code Authority or agency 

pending final action which 5hall not be effective unless the Administrator approves or unless he shall fail to disapprove after thirty 

days notice to him of intention to proceed with such action in its 

original or modifi~d farm. SEOTION 7. Each trade or Industrial Association directly or indirectly participating in the selection or activities of the Code 

Authority shall ( 1) rm pose no inequitable restrictions on membership, and. (2 ) submit to the Administrator true copies of Articles 

of Association, By-Laws, Regulations, and any amendments when 

made thereto, together with such other information as to its 

membership, organization and activities as the Administrator may 

deem necessary to effectuate the purposes of the Code. 
418 

ARTICLE ' II-PUBLICITY OF PRICES 

SECTION 1. "\Vithin ten (10) days after the effective date hereof 

each member of the Indu try hall publi h to the trade concerned 

and file with the Code Authority his current prices, discounts, 

and other conditions of ale, which hall be uniform throughout the 

United State , and the Code Authority shall cause copies thereof 

to be sent immediately to all members of the Indu try. Revised 

pric , di count , and other conditions of ale shall be filed from 

time to time thereafter with the Code Authority by any member 

of the Industry to become effective upon the date specified therein, 

which hall not be later than ten (10) days after filing, and any 

reduced price or more favorable di counts or other conditions of 

sale shall be filed with the Code Authority ten (10) days in advance 

of the effective date of the lower prices and/or more favorable 

discounts or other conditions of ale unless the Code Authority 

shall authorize a shorter period subject to the approval of the 

Admini trator. Copies of revised price lists and more favorable 

discounts and other conditions of sale with notice of the effective 

date pecified hall immediately be sent by the Code Authority to all 

members of the Industry, who thereupon may file, if they so desire, 

revisions of their price lists and/or discounts and other conditions 

of sale, which shall become effective upon the date when the revised 

price lists and/or discounts and other conditions of sale first filed 

shall go into effect, provided the price li ts and/ or discounts and 

other conditions of sale are not lower or more favorable than the 

revised price lists and/or discounts and other conditions of sale 

fir t filed. 

All changes in prices, terms and conditions of sale shall be published to the trade concerned on or before the effective date of such 

change pur uant to such rules and regulations as may be established 

by the Code Authority.1 

SECTION 2. All price lists or changes in price lists filed with the 

Code Authority and all price lists or changes in price lists forwarded 

by the Code Authority to members of the Indu try shall be forwarded 

by reo-istered mail with a return receipt requested. All prices, terms 

and condition of sale filed with the Code Authority shall be available to all interested persons. 

ARTICLE VIII-PROTECTION OF CusTOMERS 

SEcTio 1. Any member of the Industry who wi hes to protect 

his ?ustomer_ on close~ coi;tracts_~nd quot~tions actually outstanding 

against an increa e in his pubh hed pnces shall conform to the 

rules. e. tablished by the. Code Authority with the approval of the 

Admini trator for granting such protection. 

ECTI_ON 2. _E~ery member of the Industry shall file with the Code 

Authority, within twenty (20) days following a price increa e, a 

complete record of all items involving the protection of cu tamers. 

1 See paragraph 2 of order approving this Code. 
419 

ARTICLE IX-AFFILIATES AND p ATENT RIGHTS 

SEOTION 1. Members of the Industry shall be responsible for the 

observance by their affiliates of all the provisions of Articles III, IV, 

V, VII, VIII, and X of this Code with respect to the production 

and/or sale of the products included in Section 1 of Article II, provided that in the event of provisions of Articles VII and X being 

observed by any such affiliated corporation, then the Member of the 

Industry of which such corporation is an affiliate need not comply 

with the publicity requirements of Article VII with respect to prices, 

terms, and conditions of sale made to such affiliate corporation. 

SECYI'ION 2. Nothing in Articles VI, VII, VIII, IX, X, XI and 

XII of this Code shall be construed as prohibiting any member of 

the Industry from exercising all its and/or their lawful patent rights 

or requiring any member of the Industry to do any act in conflict 

with the terms of any valid patent licensing agreement. 

ARTIOLE X-PUBLICITY OF ThADE CLASSIFICATIONS 

SECTION 1. Within ten (10) days after the effective date of this 

Code, each Member of the Industry shall publish to his trade and 

file. with the Code Authority all classifications which have been established by him to determine the prices, terms or conditions of sale 

made applicable by him to the different classes of his trade, for 

products covered by this Code. He shall publish to the trade and 

file promptly with the Code Authority any changes made by him 

in such classifications and any additional classifications. 

Each member shall file at such times, in such manner, and at such 

places as may be designated by the Code Authority the names and 

locations of his distributors, grouped according to his own stated 

classifications then in effect. The names and locations so filed shall 

be available to the trade and to the 1nembers of the Industry, 

provided, that the name of the manufacturer submitting any such 

names and locations shall not be disclosed without consent except to 

the extent necessary to prevent violation of this Article. 

ARTICLE XI-TRADE PRACTICES 

The following practices constitute unfair methods of competition 

for members of the Industry and are prohibited. 

SECTION 1. False Marking or Brandmg.-The false marking or 

branding of any product of the Industry which has the tendency to 

mislead or deceive customers or prospective customers, whether as 

to the grade, quality, quantity, substance, character, nature, origin, 

si~e, .finish, or preparat10n of any product of the Industry, or otherwise. 

SECTION 2. Misrepresentation or False or Misleading Adverti..~-

ing.-The making or causing or knowingly permitting to be made 

or published any false, materially inaccurate, or deceptive statement 

by way of adv~rtisement, or otherwise, whether co!1c.erni!1g the ~ade, 

quality, quantity, substance, character, nature, origin, size, finish, or • 

preparation of any product of the Industry, or the credit terms, 

values, policies, or services of any member of the Industry, or other-
• 

420 

wi e having the tendency or capacity to mi lead or deceive customers 

or pro pecti ve cu to mer . ECTIO :r 3. 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 repre entative of another in relation to the busin s of the employer of such employee, the principal of such agent 

or the repre ented party, without the knowledge of such employer, 

principal or party. Commercial bribery provisions shall not be 

con trued to prohibit free and general distribution of articles commonly u ed for adverti ing except so far as such articles are actually 

u ed for commercial bribery as hereinabove defined. 

SECTION 4. lnte1'ference 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 interfering with or ob tructing the performance of any 

such contractual duties or services. 

ECTION 5. Giving of Pri'zes, Pre1niu11is, or Gifts.-The offering 

or giving of prizes, premiums, or gifts in connection with the ale of 

products, or as an inducement thereto, by any scheme which involves lottery, misrepresentation, or fraud. 

ECTION 6. Defam,ation.-The defamation of competitors by falsely 

imputing to them dishonorable conduct, inability to perform contracts, questionable credit standing, or by other false representations, or by the false disparagement of the grade or quality of their 

goSods. 7 r1. f L. . . Th bl. 11· . 1 . ECTION . n1~eats o itigation.- e pu 1 1ng or circu arizing of tl)reats or suits for infringement of patent or trade marks, 

or of any other legal proceedings not in good faith, with the tenden y or effect of harassing competitors or intimidating their customers. 

SECTION 8. Espionage of Competitors.-Securing confidential information concerning the business of a competitor by a false or 

mi leading statement or representation, by a fal e imper onation of 

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

ECTION 9. Selling at Less than Published Prices.-The selling of 

any Product to any purchaser thereof at less than the published 

price applicable to such class of purchaser; or to effect a lower price 

by any mean what oever, either directly or indirectly, or by any 

subterfuge, or to use or effect a lower price than that publi hed for 

all cu tomer of the same cla s except as provided in Article VIII. 

E TION 10. S ecret Rebates.-The secret payment or allowance of 

r bate r efund , commi ions, credit , or unearned discounts, whether 

in the form of money or otherwi e, or the ecret extension to certain 

purcha er of pecial rvices or privilege not extended to all purcha ers on like term and condition . 

E TION 11. S elling Below Cost.-The elling of the Product below the manufa turer' individual co t e:x pt to meet any pri e pubIi hed by another manufacturer in accordance with Article VII; in 

meeting th e pri es the manufacturer hall comply with all the 

pr vision of Articl VII . 

ECTION 12. Free Goods, or False Billing.-In any way delivering 

free goods to any ustomer or pro pective customer; or invoicing 
421 

goods to any other person than the person by whom payment is to be 

m~de ;_ or making any fictit~o:us invoice for any shipment; paying a 

price m excess of the prevailing open-market price for any product 

of this Industry; paying for materials of his own manufacture more 

than the original net delivered price thereof. 

SECTION 13. Other Unfair Practices.-Nothing in this Code shall 

limit the effect of any adjudication by the Courts or holding by the 

Federal Trade Commis.sion on complaint, finding, and order, that 

any practice or method is unfair, providing that such adjudication 

or holding is not inconsistent with any provi ion of the Act or of 

this Code. 

ARTICLE XII-SELLING BELOW REA o~ ABLE CosT 

SECTION 1. The Code Authority hall cause to be formulated an 

accounting system and methods of cost finding and/or estimating 

capable of use by all member of the Industry. After .such system 

and methods have been formulated, full details concerning them 

shall be made available to all members. Thereafter all members 

shall determine and/ or estimate cost. in accordance with the principles of such methods. 

SECTION 2. When the Code Authority determines . that an emergency exists in thi,s Industry and that the cau e thereof is destructive price cutting such as to render ineffective or seriously endanger 

the maintenance of the provisions of this Code, the Code Authority 

may cause to be determined the lowe t rea onable cost of the products of this Industry, such determination to be subject to ,such notice 

and hearing as the Administrator may require. The Administrator 

may approve, disapprove, or modify the determination. Thereafter, 

during the period of this emergency, it shall be an unfair trade practice for any member of the Industry to sell or offer to sell any product of the Industry for which the lowe. t reasonable cost ha.s been 

determined at such prices or upon such terms or conditions of sale 

that the buyer will pay less therefor than the lowest reasonable cost 

o.f such products. 

When it appears that conditions have changed, the Code Authority, upon its own initiative, or upon the request of any interested 

party, shall cause the determination to be reviewed. 

ARTICLE XIII- GENERAL 

SECTION 1. Nothing contained 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. officer, agent or employee 

of the Code Authority. Nor shall any member of the Code Author- ity be liable to anyone for any action or omission to act under the 

Code, except for his qwn willful misfea,s~~ce or non-feasance. 

SECTION 2. This Code and all the prov1s10ns thereof are expre ly 

made subject to the right of the Pr_esident, in accordance wi~h the 

provisions of subsect10n (b) of Sect10n 10 of the Act, from time to 

time to cancel or modify any order, approval, license, rule or regulation issued under said Act. 
1111111111l1[1lllmllll1 l1111\i111\1t i1~1il1il 111111111 

422 3 1262 08850 5218 

SECTION 3. This Code, except a.s 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 by the Code Authority, and such notice and hearing as 

he shall specify, and to become effective on approval of the President. 

The provision of this Code sh_all remain in effect until and unless 

modified or eliminated in accordance with the foregoing provisions of 

Section 2 hereof and of this Section 3, or until the expiration of the 

Act, namely, June 16, 1935, or sooner, if the President shall, by proclamation, or Congress shall, by joint resolution, declare the emergency recognized by Section 1, Title I, of the Act, has ended. 

ARTICLE XIV-MONOPOLIES, ETC. 

No provi ions of this Code shall be _so applied as to permit monopolies or monopolistic practices or to eliminate, oppress or discriminate 

against small enterprises. 

ARTICLE XV-INSTALLATION 

Members of the Industry engaged in installation of the products 

or commodities of this Industry shall be governed by the hours, wages 

and other labor provisions of such approved Code for the Construction Industry as may be designated by the Administrator after such 

notice and hearing as he may prescribe. 

ARTICLE XVI-EFFECTIVE DA TE 

This Code shall become effective on the second Monday after its 

approval pur uant to the provisions of the Act. 

Approved Code No. 359. 

Registry No. 1637- 13. 

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