Approved Code No. 321 Registry No. 1630-07 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

ROCK AND SLAG WOOL 

MANUFACTURING INDUSTRY 

AS APPROVED ON MARCH 6, 1934. 

WE DO OUR PART 

fA t 0 ~- ~-:- • ---..... 

. TONY 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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

v 
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Printing Office, Washington, D.C., and by district offices of the Bureau of F oreign 

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Approved Code No. 321 

CODE OF FAIR COMPETITION 

FOR THE 

ROCK AND SLAG WOOL MANUFACTURING 

INDUSTRY 

As Approved on March 6, 1934 

ORDER 

APPROVING CoDE oF F AIR CoMPETITION FOR THE RocK AND SLAG WooL 

MANUFACTURING INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provision of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of a Code of 

Fair Competition for the Rock and Slag \Vooll\1anufacturing Industry, and hearino·s having been duly held thereon and the annexed 

report on said Cfode, containing finding with respect thereto, having 

been made and directed to the President: 

NO,iV, THEREFORE, on behalf of the President of the United 

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

pursuant to authority vested in me by Executive Orders of the President, including Executive Order No. 6543-A, dated December 30, 

1933, and otherwise; do hereby incorporate by reference said annexed report and do find that said Code complies in all re pects 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. 

Approval recommended: "T. A. HARRIMAN' 

H uGH S. JoHN oN, 

AdministTator for I ndustrial Recovery. 

Divi'3ion Ad 1ninistrat or. 

wASHINGTON D.C., 

M a1·ch 6, 1934. 

44403°----425- 34----34 (497) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The lVhite liouse. 

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

Rock and Slag 'Vool Manufa turing Industry as revised after a 

public hearing conducted in "T a hington, D.C., on January 30, 1934, 

in accordance with the prO\ i ion of the National Indu!:>trial 

Recovery Act. 

PROYI IONS A TO WAGE AXD HO"CR " 

All, except office employees, shall be paid a minimum rate of forty 

cents 1 r hour in the northern . ection and thirty-five c nts per hour 

in the . outhern ection. Office employees hall be paid a minimum 

wage of fifteen dollar · per week. Offic boys and girls hall be paid 

not le than eighty percent of thi rate and shall not excee l in 

number five per ent of an employer' total number of office employees. 

Handicapped workers may be employed at wage · below the minimum. Female employee · performing ub!:>tantially the same work 

as male employee. shall receiYe equal pay. Adju tment of wage rates 

above the minimum will be made within ixty days after approval of 

thi · Code. 

Forty hour. hall b th maximum number of " ·orking hour for 

any week and eight hours for any lay except during any six weeks 

in a ·ix month · period forty-eight hour in one week i permi sible. 

Tho ·e engaged in executive managerial or supervisory work (except 

foremen engaged in manual labor) who regularly receive thirtyfive dollars or more per week an 1 outside ·alesmen are excepted 

from this provi ion. Employees engaged solely at maintenance 

and repair work, tru ·kmen, firemen and engineers may work nine 

honr~ a day or forty-ionr hour a week except during any ·ix ''eek 

in a ·ix month · perio 1 fort} -eight hour.· in one week is permis ·ible. 

" ratchmen .. ·hall not be employe l in exce.-. of fifty-six hours in any 

011 week. Office employee , except tho e receiving thirty-five dollar 

per week or more ·hall not be employed in exce s of nine hom·s per 

day or forty hours per week. All emplo:yee. , except office employees 

and watchmen shall be paid at the rate of time and one-half for time 

'vorked in exce. ·. · of forty hours per week or eight hours per day. 

ECOXO:MIC EFFECTS OF THE C DE 

The u ·es for the products of thi Inclu try may be classified into 

tv\·o ma.jor clas e:: industrial in tallation for hot nrface. and dome ti in ulation. There were nine concerns engaged in the manufacture of rock and lag wool in 19:Z9, twenty-eight concerns in 1933. 

Thi increase repre ·ent · u number of mall concern entering the 

field. 

(498) 
499 

The sales for 1933 were eight percent les than 1929 but fifty-five 

percent above 1932. According to the Re earch and Planning Division's report there were, in 1929, three hundred and forty-eight wage 

earner employed by the indu try, in 1933 eight hundred and fiftyfive. This increase was partly due to the increase in the number of 

concerns engaged in the Industry and partly because of the P. R. A. 

Average hours worked per week in 1929 were sixty-one. The 

hourly provision of the Code will reduce the hours worked per week 

by about thirty percent. Should volume of busines increa e, this 

indu try will be able to ab orb worker from other indu tries that 

are not able to reabsorb their entire force. 

Seventy-five percent of the wage earners in this indu try will 

be affected by the n1inimum wage provisions of this Code. For this 

reason, and also the provision that there shall be an equitable adjustment of wages above the minimum, the purchasing power of 

the wage earners in this industry should be materially increased. 

Trade practice provisions of the Code are expected to remedy many 

of the Industry evils that have been prevalent in the past. 

FINDINGS 

The Assistant Deputy Administrator in his final report to me on 

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

the proceedings in this matter: 

I find that: 

(a) Said Code is well designed to promote the policies and purposes of Title I of the National Industrial RecoYery 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 purpo e of cooperative action among the trade 

groups: by inducing and maintaining united action of labor ancl 

management under adequate governmental anctions and super- vision, by eliminating unfair competitive practices, by promoting 

the fulle t possible utilization of the pre ent productive capacity of 

industries, by avoiding undue re triction of production (except a 

may be temporarily required), by increasing the con 'mnption of 

industrial and agricultural products throuo-h increasing purcha ing 

power, by reducing and relieving unemployment, by improving 

tandards of labor, and by otherwi e rehabilitating inlustry. 

(b) Said Industry normally employs not more than 50,000 employee ; and i not cla ified by me a a major indu try. 

(c) The Code as approved complies in all re pect with the pertin nt provi ion of aid Title of aid Act, including without limitation Sub ection (a) of Section 3 Sub ection (a) of ection 7, 

and Sub ectlon (b) of Section 10 thereof · and that the a PIli ant 

a ociation i an indu trial a ociati n truly repre entative of the 

afore aid In lu try; and that aid a ociation impo e no inequitable 

re triction on admi ion to memb r hip ther in. 

(d) The Code i not d ignecl t and will not p rmit monopoli . or monopolistic practice . 

(e) The Cod i not de igned to and will not eliminate or oppre s 

mall enterpri and will not operate to eli riminate again t th m. 
500 

(f) Tho e engaged in other tep of the economic proces have 

not been deprive l of the right to be heard prior to approval of aiel 

Code. 

For these reasons, therefore, I have approYed this Code. 

Respectfully, 

MARCH 6, 1934. 

HucH S. JoHNSON, 

Adm..inistrator. 
CODE OFF AIR COMPETITION FOR THE ROCK AND SLAG 

WOOL MANUFACTURING INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provision are established as a Code 

of Fair Competition for the Rock and Slag Wool l\1anufacturing 

Industry, and 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 " Rock and Slag Wool Indu try" as u ed 

herein includes the manufacturing, the manufacturing and selling 

by a manufacturer, and the selling as or by a manufacturer of the 

products listed in Section 2 of this Article, and such branches or 

subdivi ions of said Industry as may from time to time be included 

under the provisions of this Code. 

SECTION 2. The term " Products", means Rock and Slag Wool 

Blankets, Rock and Slag Wool Pipe Covering, Rock and Slag Wool 

Blocks, Rock and Slag Wool Loose, Rock and Slag Wool Granulated, 

Rock and Slag Wool Home Insulation-Loose, :Modulated, Bat , or 

Roll -Rock and Slag vVool Cements. Other Rock and Slag vV ool 

Products. 

SEcTION 3. The term "employee" as u ed herein in lude anyonB 

engaged in the Indu try in any capacity receiving compensation for 

his services, irrespective of the nature or method of payment of 

such compensation. 

SECTION 4. The term " employer " as used herein includes anyone 

by whom any such employee i compensated or employed. 

SECTION 5. The term "Member of the Indu try" a .. u ed herein 

include anyone engaged in the Indu try a above defined, either 

as an employer or on his own behalf. 

SECTION 6. The term "tra le" as used herein hall mean all chan- nel · of (li. tribt1tj n of the produ t , except member of the indu try. 

SE TION 7. The term "Member of the Code" as u eel herein includes any member of the Indu try who shall expr ly as ent to 

thi ode in accordance with bection 2, paragraph ( ) , Article VI. 

SEcTI N 8. The term " Pr sident ", "Act ', and "A lmini trator" 

a u d herein hall mean re pectively the Pre. ident of the Unit d 

Stat , , Title I of the National Indu trial Recovery Act, and the 

Admini trator for Indu trial Re overy. 

SECTION 9. The t rm "A.· ociation" a u ed h r in mean the 

National A o iation of R k and Sla()' " ool Indu trie , an unincorp rated a ociation. 

E TION 10. Th t rm uth rn Se ti n ' a u. c1 h r in m an 

th tat of North Carolina, T nne c , Ar kan a , 0 klahoma, T xa.::, 

( 01) 
502 

Louisiana, lVfississippi, Alabama, Georgia, South Carolina and 

Florida. 

SECTION 11. The term " Northern Section " as used herein means 

all states of the United States not included in the term "Southern 

Section." 

ARTICLE III-HoURs 

SECTION 1. No employPe, excluding accounting, clerical, and office 

employees, shall be employed in excess of forty ( 40) hours in one 

week, or eight (8) hours in any twenty-four (24) hour period, except 

that during any six (6) weeks in any six (6) months' period employees may be employed not more than forty-eight ( 48) hours per week, 

providing one and one half (11/2 ) times the normal rate of pay shall 

be paid for hours worked in excess of e-ight ( 8) hours per day and 

forty ( 40) hours per 'reek; nor shall they be permitted to work more 

than six (6) clays in any seven (7) day period. The foregoing 

limitations shall not apply to : 

(a) Those employed in executive, managerial, or supervisory work 

''ho regularly receive thirty-five ($35.00) dollars or more per week. 

Foremen engaged in manual labor shall not be considered to be in ·uch supervisory capacity · 

(b) Outside salesmen; 

(c) Employees engaged solely at maintenance and repair work, 

truckmen, firemen and engineers, who may be permitted to work not 

more than nine (9) hours in any one day, or forty-four (44) Iiours 

in any one week. The~e employees may also be permitted to work 

forty-eight ( 48) hours per weelc during any six ( 6) weeks in any 

six (6) months period. One and one-half times the normal rate of 

pay shall be paid for hours worked in excess of eight ( 8) hours per 

day and forty ( 40) hours per week. 

( c1) Employees on emergency maintenance or emergency repair 

work inYoh-ing breakdowns or the protection of life or property, 

but in such special case at least one and one-half (11/2 ) times the 

normal rate shall be paid for hours in excess of forty ( 40) hours per 

"·eek and eight ( 8) hours per day. 

(e) 'Vatchmen, who may be employed not more than fifty-six 

(56) hours in any one (1) week, except watchmen in closed plants 

to vdwm this limitation shall not apply. 

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

employed in excess of an average of forty ( 40) hours a week or nine 

(9) hours per day. Eight hours shall constitute a normal working 

day. 

SEcTION 3. No employer shall knowingly permit any employee to 

work for any time which, when totaled with that already performed 

with another employer or employers exceeds the maximum permitted 

herein. ARTICLE IV-WAGES 

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

forty ( 40) cents per hour in the Northern section or thirty-five (35) 

cents per hour in the Southern section, except that: 

(b) Accounting, clerical, service, sales and office employees may be 

paid at not less than fifteen (15) dollars per week. 
(c) Offi e boy and offic girl. may be paid at not 1 s ·than ie:hty 

( 0) percent of the above pr vi led minimum \Yaae for ac ountinO', 

lerical and office employe ·,pro id 1 that the t tal number of u ·h 

office boy ani girl receiving le than uch minimum wage ·hall 

not exceed in an calendar month mor than five ( 5) percent of he 

total office employees of the employer except that any empl yer may 

n1ploy at lea t tw (2) uch per ons a above provided. 

SEcTION 2. Thi Arti lee tabli hes a minimum rate of pay reo·ardle of whether an emplo ee i ompen at d on a time rate piec -

work, or other ba i . 

ECTI N 3. Female employee · performing sub tantially the ame 

work a. male employee · hall receive the same rates of pay as male 

<:>mployee ·. 

SE TION 4. Eqnitable adjustment of compen ation of employee. 

receiving more than the minimum rate of pay herein pre cribed 

hall be made by all employer who have not heretofor made u h 

a lj u tment · and all e1nr lo er · hall within sixty ( 60) cla3 after 

approval of thi Code, report in full to the Code Authority concerning uch aclju tments whether made prior to or ·ubsequent to uch 

npproval, proYid d however, that in no event shall hourly rates of 

pay be reclu/>ed. 

SECTION 5. A person who e earning capacity i · limited becau e f 

age or phy ical handicap may be employed on light work at a wage 

below the minimum establi. heel by this Code if the employer obtain 

from th State authorit ' designated by the United State Department of Labor a certificate authorizing his employment at uch 

wao·es and for uch hours as ·hall be stated in the certifi ate. Each 

employer hall maintain on file with the Code Authority a lit of all 

such persons employed by him. 

SECTION G. "\Vage · ·hall be e. empt from any payments for penion· in nrance, or ick benefit · other than tho ·e Y luntarily paid by 

the wage earner or required b} law. \Vages hall be paid at lea t 

at the nd of every two-week period, and salarie · at lea t at the 

end of eYery month. 

SECTION 7. The employer or hi agent hall accept no rebates 

directly or indirectly on ·uch wages nor give anything of Yalu or 

cxten 1 fa\'Ol' · to any per ·on for the purpo e of influencing rate · of 

\ rao·e or the \YOrking <.: nclition of his emplO) ees . 

. Ar:TI LE '-GENERAL L ABOR PRO\'I ION 

SEcTION 1. N per on under sixteen (16) years of aO'e hall be 

mployed in the indu try. No per ... on un ler eighteen (18) 3 ar 

of ao· ·hall be emplo re l at operation or occupation which are 

hazarclou · in nature or dangerou. to health. The Code Auth rity 

. hall . ubmit t the A lministrator within nin ty (90) <la a li t 

of uch op ration · r cnpation. . In any State an employer hall 

de mel to have compli 1 with thi provi ion a to aO'e if h hall 

have on fil a c rtificate r permit duly iO'necl by th authority in 

any tate mp werecl to i · ue mployment or aO'e certificat r 

permit. :howina that the en pl . ce i of the r qui ·e l ao· . 

E ·Tio_' 2. In compliance with Se ti n 7 a) of the Act it is 

provid l that-

-1. '-!0:3 ·-42.)- 3-J.-:14-2 
504 

(a ) Employees shall have the right to organize ancl bargain 

collectively th1·ough representati,'es of their O"\Vn choosing, and shall 

be free from ihc interference, restraint, or coercion of employers 

of la bor, or their agents, in the designation of such representatives 

or in self-organization or in other concerted activities for the purpose of collectiYe bargaining or other mutual aiel or protection. (b) No employee and no one seeking employment shall be required as a condition of employment to join any company union or 

refrain from joining: organizing, or assisting a labor organization 

of his OvYn choosing. 

(c ) Employers shall comply with the maximum hours of labor, minimum rates of pay, and other conditions of employment approved 

or prescribed by the President. 

SEcTION 3. No employer shall reclassify employees or duties of 

occupations performed or engage in any other subterfuge for the 

purpose of defeating the purposes or provisions of the Act or of 

this Code. SECTION 4. Every employer shall make reasonable provisions for 

the safety and health of his employees at the place and during the 

hours of their employment. 

SECTION · 5. No provisions in this Code shall supersede any State 

or Federal law which imposes more stringent requirements on 

employers as to age of employees, wages, hours of 'vork, or as to 

safety, sanitary or general working conditions, or insurance or fire 

protection, than are imposed by this Code. 

SECTION. G. Each employer shall post complete copies of the labor 

pro\·i:sions of this Code in conspicuous places accessible to employees. 

ARTICLE YI Ao~nxrwrRATro~-

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

is hereby constituted to cooperate with the Administrator in the 

administration of this Code. 

SECTION. 1. Organization and Constitutiot1 of Code .Autho7·ity.-

( a) The Code Authority shall consist of three (3) indiYiduals, or 

such greater number as may be approYecl from time to time by th€ 

Administrator, to be selected as hereinafter set forth. The Adminish·atOI·, in his discretion, may appoint no more than three (3) 

additiona l members vYithout vote to represent the Administrator 

and without expense to the Industry. 

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

from members of the Code and shall be elected by a Yote of two 

thirds (2;3) of all the members of the Code. 

(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, 

by-laws, regulations, and any amend1nents when made thereto, together with such other information as to membership, organization, 

and activities as the Administrator may deem necessary to effe ctuate the purposes of the Act. 

(d) I n order that the Code Authority shall at all times be truly 

representatiYe of the Industry and in other respects comply with 
v03 

ct, the Administrator may provide snch 

_ may deem proper; and thereafter if he shall find 

that the Code Authority is not truly representatiYc or does not in 

other respects con1ply \Vith the proYi::,ions of the ... \.. ct: may require 

an appropriate nioclification in the method of selection of the Cod 

uthority, provided that no such modification .:;hall permit an~' one 

not a member of the Industry to become a votinrr member of the Code 

... \uthority. 

(e) The Code Authority may ac1opt its own rules of procedur 

and may delegate its authority, or some part thereof, to such 

agencies or committees as it may select, but all contacts with the 

.. \..clministrator shall be by the Code .Authority. 

ECTIOK 2. The Code Authority shall have the following dutie 

and powers to the extent permitted by the Act : 

(a) To make recommendations to the Admini:-;trator for the coordination of the administration of this Code with such other code ..... , 

if any, as may be related to the industry. 

(b) \\-rith a vie\\' to keeping the President and the members of 

the Industry informed as to the obserYance or nonob::,ervance of the 

ode, and as to whether the members of the Industry are taking 

appropriate steps to effectuate the declared policy of the Act, the 

Code Authm·ity shall report to the Administrator at such times and 

oncerning such conditions in the industry as he maY from time to 

time requ1re and each member of the Industry shall file \Yith the 

Code Authority such certified reports with respect to w·ages, hours 

of labor, conditions of employment, number of employees, and other 

matters as may be deemed pertinent by the Code Anthorit~ • or by 

the Administrator, to the proper administration of the Code. 

(c) :Members of the Industry shall be entitled to participate in 

and share the benefits of the actiYities of the Code Authority and 

to participate in the ~ele tion of the members thereof by si'gning 

and cleliYering to the President of the As:;ociation a letter assenting 

LO and agreeing to comply with the r equirements of this Code and ,,ustaining their reasonable share of the expenses of its administration. The reasonrtble share of the expenses of ac1ministration shall 

be determined by the Code Authority on the basis of Yolume of 

business and ' or such other factors as may be deemed equitable to 

be taken into consideration. 

(d) All confidential information of any nature which may b 

reque~tecl by the Code Authority shall be collected through an 

agency or agencies selected by the said Code Authority an\11':,uch information shall be kept confidential by the agency, except when required by the Code Authority for the proper administration of th 

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

fully aYailable to the .Administrator at all tim-. ... 

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

members of the Industry, to inYestigate complaints of Yiolatimy· 

of the Code. The members of the Code shaU facilitate ~nch inves- tigations by producing all pertinent data, including cor re pond ce 

books, and accounts r elating to alleged violations for rxnmination by 

mch authorized agent and by furnishing relevant information. All .mch pertinent information shall b!.' kept confidential by the agent or 
506 

agents except that, in the event of any such violation being substantiated, thP Code Authority shall be informed and may present 

evidence thereof to the Administrator or to such department, agency, 

or judicial branch of the Government, as he may designate. If, 

upon such investigation, any complaint of a violation of the Code 

shall be substantiated in any material respect, the member of the 

Code guilty of such violation shall pay the cost of the investigation, 

otherwise the cost shall be borne by the complainant member of th~ 

Code. 

The provi. ·ion. · of this subcecbon (e) of Section 2 of this Article 

VI hall only apply to those members of the Code who agree thereto 

in writing which hall be separate and apart from the letter of assent 

referred to and re~uired of members of the Code by the provisions 

of subsection (c), Section 2 of this Article VI. 

(f) The Code Authority shall stuiy conditions in the Industry 

and shall make any recommendations from time to time for the 

Administrator which it deems desirable to further the poli ies of 

the Act, inclU<ling, but without limitations: 

Industry :Merchandising Plans 

Simplification and Standardization 

System of Exchange of Credit Information 

Inequalities affecting th tability of the Industry 

The e recommendation. after such notice and hearing as the 

Administrator may specify, hall become effective on approval by 

the Admini t rator or the President, with the same force and effect 

a · if originally made a part hereof. 

(g) The Code Authority f:ihall au e to be formnlatec1 an accounting system and m.othod of cost finding andj or estimatino· capable of 

use by all member· of the industry. After such system and 

1nethods haYe been formulatell, full detail. concernino· them ·hall be 

made available to all member. ·. Thereafter all member.· shall determine andj or estimate costs in accordance with the princ.1ples of uch 

methods. (h) The Code Authority shall make studie with a view to the 

establishment of cla sification. and standard. of quality for products 

of the Indu. -tr:y, in cooperation with some Federal Govornment 

agency or agenc1e . (i) Any member of the industry . ·hall have the right of complaint 

to the Code Authority and a prompt hearing an l decision thereon, 

under such rules and regulations a it shall prescribe, in respect to 

any act of nny agent or agency designated by the Code Authority 

to act in its behalf. 

(j) In addition to the information required to be submittetl to the 

Code Authority: all or any of the persons subject to the Code, agreement, or license shall furnish such stati tical information a the 

Administrator may deem necessary for the purposes recited in Section 3 (a) of the Act to such Federal and State agencie. as the 

Administrator may designate; nor shall anything in any cole, agreement, or licen. e relieve any person of any existing obligation to furnish reports to Government agenciec;:. 

(k) Nothing contained in the Code shall be deemed to con titnte 

any of the member.· ther of partner for any purpose. No member 

of the Code shall be liable in any manner to anyone for any act of 
507 

any member or agent of th Code Authority perf rmed pur uan to 

the proYi ions of this Cole. No member of the Cod an l no member 

r agent of the Code Authority hall be liable to an on or in any 

manner other than a. provided in th Act or in the ode, for any 

act performed in accordance with: or for any failur to a t pursuant 

to the proYi ion of the Code. 

ARTI LE YII-Punu ITY F PRI E , TERMS, A_ ~D oxo1no;-; F .\LE 

ECTIOX 1. \Vithin sev n (7) days aft r th effectiYe lat of thj 

ole ea h m mber of the Indu try ·hall publi h hi pri e ·, term.· an l condition of sale on all pro lucts to hi trade, each cla. of 

tra l being furni heel with the price , term , and ·on lition of . ·al 

affe ting each uch cla of trade in the territory to which u ·h 

price term. , and conditions of :ale apply. Coinciden with .·u ·h 

publi ation, each member of the Indn try hall file with the ode 

Authority and the Code Authority shall immediately li tribute to 

all member of the Industry a ·omplete ·chedule of .·uch pric .-· term. and condition of sale. 

ECTIOX 2. In the event of any hange by any member of the 

Industry in any price, term, or condition of ale, he shall file full 

and complete copie of every change with the Code Authority. All 

such change hall become effective immediately upon such filing unles and until the Code Authority hall de..: i.o-nate period · within 

which any u h changes hall be.come effectiYe ubject to the approval of the Administrator, but in no ca e ·hall any .. uch period 

exceed even days after the date of the filing of the change. Cor ie 

of all change filed shall be immediately distributed by the ode 

Authority to the members of the Industry. On the effective elate 

of any uch change, the industry member shall publi h the ·ame to 

the trade concerned and coincidentally file such information in the 

office de ignatecl by the Code Authority for immediate eli tribution 

by the Code Authority to the members of the Indu try. 

SEcTIOK 3. In the event that any member of the Indn try ·hall 

not receive ufficient notice of the filing by any other memb r of any 

·hange in price or terms an l condition of ·ale a \Yill e-nable the 

member fir t mentioned to meet the said change on the effectiv date 

thereof, such member may file with the Code Authority . uch change 

in hi· price~ , terms, and conditions of sale a may be r qnired to 

meet the change filed by the other member. Chano·e o filed shall 

become effectiYe on the ame date a. the effective date f the chano-e 

of the member fir t filing a · aforesaicl, or if uch change had alrea 1y 

become effectiYe then the change. ub E>quently filed shall b com 

ffective imme liately. 

ECTION 4. No member of th Industry hall ell, I ay a rebate 

r nllo" a cledu tion at any time to any per on oth r than a m mber 

f th In 1ustry except in accor lance with his prices term· and 

con lition · of , al then in ffect an l publi. hed in the manner lecrib c1 herein. Each member of the Indu try hall hav the right, 

individually, to publish new price , t rm , and ondit.i n · of ale, 

from tim to time, as herejn provid d. 
508 

ARTICLE VIII-PUBLICITY oF TRADE QuALIFICATIONs 

SECTION 1. Within seven (7) days after the effective date of this 

Code, and until a merchandising plan shall be approved for the 

Industry, each member of the Industry shall publish to its trade and 

file with the Code Authority all qualifications 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 qualifications and any additional qualifications. 

SEcTION 2. 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 trade who buy at less than his published 

dealer prices, grouped according to his own stated qualifications then 

in effect. The names and locations so filed shall be available to the 

trade and to the members of the Industry, provided that the name 

of the manufacturer submitting any such names and locations shall 

not be disclosed without his consent, except to the extent as may be 

approved by the Administrator. 

ARTICLE IX-TRADE PRACTICES 

The following practices constitute unfair methods of competition 

for members of the Industry and are prohibited: 

1. False Marking or Branding.-The false marking or branding 

of any product of the indu try which has the tendency to mislead 

or deceive customers or prospective customers, whether as to grade, 

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

preparation of any product of the industry, or otherwise. 

2. llfisrepresentation 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, substance, character, nature, origin, size, finish or preparation of any product of the industry, or otherwise, having the tendency 

or capacity to mislead or deceive customers or prospective customers. 

3. Oomn"ercial B1"ibery.-No member of the industry shall give, 

permit to be given, or directly offer to give anything o£ value for 

the purpose of influencing or rewarding the action of any employee, 

agent, or representative of another in relation to the business of the 

employer of such employee, the principal of such aaent, or the represented 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 used 

£or advertising except so far as such articles are actually used for 

commercial bribery as hereinabove defined. 

4. Interference with Oontractwal R elations.-Maliciously inducing 

or attempting to induce the breach of an existing contract between 

a competitor and his customer or source of supply, involving the 

purchase of specific quantities of the product and/ or their component 

parts or materials, or interfering with or obstructing the performance of any such contract. 
509 

5. A:

1 

cr t R 'batec .-The · ret payment or allow an c f rebates, 

refnn l , commi ion. , recht , or 1ncarne l eli ount. whether in the 

form of money or otherwi e, r the . u· t xt n ion t c rtain pnreha ers of special · lTice · or priYilege. · not extended to all pur ha ·er · 

on like t rm · and ondjtion . 

6. Giving of Prize Premiums, or Gifts.-The offering or giYing 

f prize ·. pr miums or gift in onn ·tion with th ale of rrocln ·t , 

or a an in lucem nt ther to, by any . 1 me 'Yhich inYolYe · lott ry, 

1ui repr entation or fraud. 

7. Dcfamation.-The defamation of competitor by fal el~ imputing to them eli. honorable con luct, inability to perform <..:on tract, 

que tionable ere lit tan ling, or by other fal e r presentations or by 

the fal e eli paragement of the grade or quality of their good ·. 

8. Th}'(;ats of L itigation.-The publishing or circularization of 

threats or suit for infringement of patent or trade marlc or of any 

other legal proceedings not in good faith, "·ith the te.n lenc.:y or effect 

of hara ing competitor or intimidating their cu tomer . 

9. Espionag of Competitor .-Securing confidential information 

concerning the bu ·ine .. of a competitor by fal e or misleadino· tatementor repre. entation, by a fal e imper onation of one in authority, 

by bribery, or by any other unfair method. 

10. To sell for export nnle s the buyer ha · agree l not to resell the 

products within the United States. 

11. F~' titious lnvoic·ing.-To invoice fictitiou ·ly, hip in ex e s 

of quanti tie · inYoiced, make fi ctitious allowance or guarantee •. 

12. Oousignment Stocks, etc.-To warehou e with a cu. tomer a 

con ignecl tock, or fail to pre cribe definite term or make guarantees 

again -t price decline. 

13. Other Unfair P1·actices.-Nothing in this ode hall limit the 

effect of any adjudication by the Court or holding by the Federal 

Trade Commi. ion on complaint, finding, and order, that an~· pra -

tice or metlw 1 i unfair proYiding that uch adjudication or holdino· 

is not incon:::;i!:otent with the Act r any p ·ific proYi n of this 

Code. 

AnTICI.E X-SELLIXG BELOW CosT 

E TIO::\' 1. It . hall constitute a violation of thi. Code for anv 

m mber of the Inclu!:-itry to initiate a price or to . ell ~my prodn · at 

a net pric '"hich shall be below the said member : ·direct co ·t." 

uch '' direct co t ' shall include the :um of the follmYing item 

chargeable to the operation of such member's bu ine ~· s in conformity 

with !',OUncl accounting practice, dnring the preceding cal n lar 

month: 

(a) DirN:t ra"· material co. t (in lusiYe of transportation and 

shrinkage), plus 

(h) Direct labor cost, plu, 

( ) :Manufacturing burden (indu i v of pow r an l team, fa tory 

overhead, maintemmee xpen. e on ntiliz l fa tory equipm nt t hnical control, utilized factory warehouse and factory hipping 

charge. ) , plus 

( <1) I~ n~ight allon·ance. ca h lj count, direct . elling expen e, d -

pr iati m and deplPti n allowan in a ·cordance with F deral incom tax regulation 1 rovi 1 l that tax in uran e, re erYe of any 
510 

character, interest on investments, administration expenses, likewise interest charges on funded or other debt, and prior operating 

los es shall not be included in "manufacturing burden" and for the 

purpose of this section direct selling expenses shall include only 

salesmen's compensation plus salesmen's traveling expense; and provided further that any member of the industry may sell below his 

own " direct cost " under the following circumstances : 

(e) To meet competition on prices established on industry products 

of competing grade and quality filed by another member of the 

Industry pursuant to Article VII hereof, and not directly or indirectly instigated by the party desiring to meet such competition, 

or 

(f) To meet competition in violation of this rule concerning which 

he has made complaint to the Code Authority, or any authorized 

agency thereof, but only pending action thereon. 

ARTICLE XI-GENERAL 

·'-SECTION 1. No provision of this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or 

discriminate aaainst small enterprises. 

SECTION 2. Corporations shall be considered to be affiliated to any 

corporate member of the Industry (hereinafter described as "the 

parent corporation") which owns a majority of the outstanding 

voting capital stock of the other. Any such parent corporation shall 

be responsible for the observance by any affiliated corporation of all 

the provisions of Articles III, IV, V, VII, VIII, IX, X, and XI 

of this Code with respect to the production and/ or sale of the products covered by this Code, provided that in the event of the ,I?rovisions 

of Article VII and VIII being observed by any such affiliated corporation of such parent corporation, then the parent corporation need 

not comply with the Publicity requirements of Article VII with respect to prices, terms, and conditions of sale made to such affiliated 

corporation. 

SECTION 3. Nothing contained in this Code shall be construed as 

prohibiting any member of the Industry from exercising all its 

and/ or their lawful patent rights, or as requiring any member of the 

Industry to do any act in conflict with the terms of any valid patent 

licensing agreement. 

SECTION 4. Articles VII, VIII, and X shall not apply to products 

exported from the United States. 

SEcTION 5. Where the cost of executing contracts entered into in 

the Rock and Slag Wool Industries prior to the effective date of this 

Code are increased by the application of the provisions of the Code to 

the Industry, it is equitable and promotive of the purposes of the 

National Industrial Recovery Act that appropriate adjustments of 

such contracts be arrived at to reflect such increased co ts by arbitral 

proceedings or otherwise. The Code Authority is constituted an 

agency to ttssist in effe.cting such arbitral proceedings and 

adjustments. 

SECTION S, Any notice, demand, or request required or permitted 

to be given to or to be made upon any member of the Industry shall 

be sufficiently given if sent by registered mail, postage prepaid, 
511 

adclres eel to such n1ember of the Industry at hi a 1ches on file with 

the ode Authority. 

SECTION 7. If the Allministrator ·hall determin that any a ·tion of 

a Code Authority or agency ther of may be unfair or unjust or contrary to the public intere t, the Admini trator may require that . ·uch 

action be uspended to afford an opportunity for uch inve tigation 

of the merit · of such action and furth r con id ration by uch ocl 

authority or agency pen ling final .action which shall not be effectiYe 

unle the Admini trator approve or unles he shall fail to di.·approYe after thirty clay ' noti e to him of intention to proceed \Yith 

such action in its original or 1noclified form. 

ARTICLE XII-l\1onrFic.A no~ 

SE TION 1. Thi. Co le and all the provision thereof are expre · ·ly 

male ubject to the right of the President, in accordance with the 

proYisions of subsection (b) of Section 10 of the Act, from time to 

time to cancel or modify any order, approval, license, rule, or regulation issued under Title I of said Act. 

SECTION 2. The provisions of the Code shall remain in effect unle 

and until so modified or eliminated, or until the expiration of the 

Act; namely, June 16, 1935, or sooner, if the President shall, by 

proclamation, or Congre · ·hall, by joint resolution, declare the emeraenc:r recognized by Section 1, Title I, of the Act ended. 

ARTICLE XIII-EFFECTIVE DATE 

SECTION 1. Thi Code shall become effective on the second l\1onday 

after its approval by the President. 

Approved Code No. 321. 

Regi ··try No. 1630>--07. 

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UNIVERSITY OF FLORIDA 

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