Appro-ved Code No. 128 Registry No.1010-1-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR TH-E 

CEMENT INDUSTRY 

AS APPROVED ON NOVEMBER 27, 1933 

BY 

PRESIDENT ROOSEVELT 

W& DO OUR PART 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICB 

WASHINGTON 11933 

For sale by the Superin tendent or Documents, Washington, D.C. - - - - - - - - Price 5 cents 

J 
This publication ls !or 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 

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Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

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ew York, N.Y.: 734 Customhouse. 

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Pittsburgh, Pa. : Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif.: 310 Customhouse. 

Seattle, Wash.: 809 Federal Building. 
Approved Code No. 128 

CODE OF FAIR COl\'lPETITION 

FOR THE 

CEMENT INDUSTRY 

As Approved on November 27, 1933 

BY 

PRESIDENT ROOSEVELT 

Executive Order 

An application having been duly made, pursuant to and in full 

compliance with the provisions of title I of the National Industrial 

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

Fair Competition for the Cement Industry, and hearings having 

been held thereon and the Administrator having rendered his report 

containing an analysis of the said code of fair competition together 

with his recommendations and findings with respect thereto, and the 

Administrator having found that the said code of fair competition 

complies in all respects with the pertinent provisions of title I of 

said act and that the requirements of clauses (1) and (2) of subsection (a) of section 3 of the said act have been met : 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 

United States, pursuant to the authority vested in me by title I of 

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

otherwise, do approve the report and recommendations and adopt the 

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

competition be and it is hereby approved. 

Approval recommended: 

H U GH s. JOHNSON' 

Adrninistrator. 

THE WHITE H ou sE, 

FRANKLIN D. ROOSEVELT. 

N ove1nbe1· t 7, 1933. 

(325) 

23777 °-- 244-96-33 
NOVEMBER 3, 1933. 

The PRESIDENT, 

The lV hite House. 

Sm: A proposed Code of Fair Competition for the Cement Industry was submitted to the Administrator on July 19, 1933, by the 

Cement Institute. The hearing was conducted in Washington on 

September 15, 1933. The Code was revised during the recess of the 

hearing and is submitted in its present form for approval. Every 

person who requested an appearance was properly heard in accordance with statutory and regulatory requirements. 

Provisions of Code as to Wages and H owrs.-Hours of employment 

are permitted to be flexible over any half calendar year, but are not 

permitted to be in excess of an average of more than thirty-six (36) 

hours per week during this period, nor more than eight (8) hours 

in any one day. The maximum hours of work are limited to fortytwo ( 42) hours per week for employees other than clerical and office 

employees who are limited to forty (40) hours per week. Employees engaged in the work of packing and shipping are limited to 

ten (10) hours in any one day and thirty-six (36) hours per week 

averaged over any half calendar year. 

The following are exeml?ted from the preceding provisions: 

(a) Employees engaged in executive, administrative, technical and 

sales staff work, and employees in supervisory capacities. 

(b) Employees engaged in emergency work involving breakdowns 

or protection of life or property. 

No evasion of this Code by reclassification of workers is permitted. 

Minimum wages are established in twelve geographical districts 

as defined by the Bureau of Mines. In two Southern districts a minimum hourly rate of thirty (30) cents per hour is established. In a 

portion of two districts a minimum of thirty-seven (37) cents, and in 

a portion of one district a minimum of thirty-eight (38) cents. In 

all other districts a minimum of forty ( 40) cents is established. 

The above minimum rates are excepted only when the rate :for 

the same class of work on July 15, 1929, was less than :forty (40) 

cents per hour, in which case the hourly rate shall be not less than 

the hourly rate on July 15, 1929, and in no event less than thirty 

(30) cents per hour. 

No minor under the age of s~xteen (16) years shall be employed 

and no minor under the age of eighteen (18) years shall be employed 

in any hazardous occupation. 

EcoNoMro EFFECT OF THE ConE 

Comparison of the production of Portland Cement in the years 

1928 and 1932, shows a decline of 54%. Comparison of number of 

per ons employed by the Industry shows a decrease from 34,244 

employees in 1928, to 11,941 in February 1933, or a decline in 

employment of 68.8%. It is estimated that based on employment 

in 1932, the adoption of the average thirty-six {36) hour week as 

(326) 
327 

proposed in the Code will cause absorption by the Industry of 

5,618 additional workers and a payroll increase 0£ approximately 

40%. 

The approval 0£ this Code is expected to: 

(1) Stabilize the Industry ang prevent economic disturbance due 

to price wars. 

(2) Protect dealers and the consumer against undue monopolistic 

tendencies 0£ the Industry. 

(3) Preclude the possibility of uncontrolled abuses due to the 

multiple basing system. 

FINDINGS 

The Administrator finds that-

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

pertinent provisions of Title I of the Act1 including, without limitation, subsection (a) of Section 7 and subsection (b) of Section 10 

thereof; and that 

(b) The applicant group imposes no inequitable restrictions on 

admission to membership therein and is truly representative 0£ the 

Cement Industry; and that 

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

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

of Title I of the National Industrial Recovery Act. 

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

R~spectf ally, 

HUGH S. JOHNSON, 

Admilnistrat01'. 
CODE OF FAIR COMPETITION 

FOR THE 

CEMENT INDUSTRY 

ARTICLE I-PURPOSE 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are submitted as a Code of 

Fair Competition for the Portland Cement Industry, and upon approval by the President shall be the standard of fair competition for 

such industry, and shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

1. The term " Portland Cement Industry " as used herein includes 

the manufacture and sale by manufacturers of Portland Cement. 

2. The term "employee" as used herein includes anyone engaged 

in the Portland Cement Industry, in any capacity, receiving compen ation for his services, irrespective of the nature or method of 

payment of such compen ation. 

3. The term "employer" includes any enterprise by whom any 

such employee is compensated or employed. 

4. The term " member of the industry " as used herein includes any 

enterprise engaged in the industry as above defined. 

5. The term "district" as used herein means the geographical 

producing district as now or hereafter designated by the United 

State Bureau of :Mines or other Governmental Agency, or as may 

hereafter be determined by the Code Authority. 

6. The term "productive capacity" as used herein shall mean the 

productive capacity of the industry as determined by the United 

States Bureau of Mines. 

7. The term " Institute " as used herein shall mean The Cement 

Institute. 

8. The term " Board " as used herein shall mean the Board of 

Trustees of The Cement Institute. 

9. The term" plant" as used herein shall mean a P ortland Cement 

Manufacturing Plant. . 

10. The terms "President" and "Act" and "Administrator" as 

used herein, shall mean respectively the President of the United 

States, the National Industrial Recovery Act, a1: rl the Arlministrator 

of said Act. 

(328) 
329 

ARTICLE III-LABOR 

A. General.-1. Pursuant to subsection (a) o:f Section 7 o:f the 

Act, and so long as this Code shall be in effect : 

(a) Employees shall have the right to oirganize 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 sel:f-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 o,:f labor, 

minimum rates of pay, and other conditions of employment, approved 

or prescribed by the President. 

2. No person under 16 years of age shall be employed, and no 

person under 18 years of age shall be employed in any hazardous 

occupation, in the industry. 

3. Within each State, no provisions of this Code shall supersede 

any laws of such State imposing more stringent requirements, regulating the age of employees, wages, hours of work, or health, fire, or 

general working conditions, than are imposed under this Code. 

4. Emplo,yers shall not reclassify employees or duties or occupations performed by employees to defeat the purposes o:f the Act. 

B. H ours.-1. Except as hereinafter otherwise provided, on and 

u:fter effective date no employee shall work or be permitted to work 

in excess of forty-two ( 42) hours in any one week or eight ( 8) hours 

in any one day; nor more than thirty-six (36) hours per week averaged over any half calendar year, excepting, however (a) employees 

engaged in emergency maintenance and repair work involving breakdowns or protection of life and property, and (b) employees in packing and shipping departments, who shall not, however, work more 

than ten (10) hours in any one day or thirty-six (36) hours per 

week averaged over any half calendar year. If any employee on an 

hourly rate works in excess of 36 hours per week averaged over any 

half calendar year the wages paid :for such excess shall be at the rate 

of not less than one and one third ( 11/3 ) times the regular hourly 

rate. 

2. No clerical or office emplo~ee shall work or be permitted to 

work in excess of :forty ( 40) hours in any one week. 

3. The maximum hours specified in the :foregoing sections of this 

Article shall not apply to executive, administrative, supervisory, or 

technical employees who are paid thirty-five ($35) dollars or more 

per week, nor to sales staff employees. 

4. No employee shall be permitted to work for a total number 

o:f hours in excess of the maximum hours specified in the :foregoing 

sections of this Article whether employed by one or more employers. 

0. Wages.-1. Except as hereinafter otherwise provided, no employee shall be paid at less than the hourly rates specified for each 
830 

of the twelve geographical districts as set forth 1n exhibit "A" of 

this _Code, as follows: 

Minimum 

District Number: Wage per Hour 

1---------------------------------------------------------------- 40¢ 

3________________________________________________________________ 2---------------------------------------------------------------- 40¢ 40¢ 

4________________________________________________________________ 40¢ 

5 :mzcept (a)____________________________________________________ 40¢ 

(a) Jefferson and Meade Counties, Ky______________________ 38¢ 

6--------------------------------------------------------------- 30¢ 7 Except (a) and (b)____________________________________________ 40¢ 

(a) St. Louis Co., Minn___________________________________ 37¢ 

(b) Ralls County, Mo______________________________________ 37 ¢ 

8----------- -------- -------------------------------------------- 40¢ 

9---------------------------------------------------------------- 30¢ 10________________________________________________________________ 40¢ 11________________________________________________________________ 40¢ 

12______________ _______ ___________________________________________ 40¢ 

2. When the hourly rate for the same class of work on July 15, 

1929, was less than 40 cents per hour, employers shall not pay less 

than the hourly rate on said date and in no event le s than 30 cents 

per hour. 

3. Untrained labor for a period not exceeding three (3) months 

and employees who by r eason of old age or physical infirmities are 

not capable of normal productive effort shall be paid not less than 

80 percent of the minimum wage rates, but the total number thereof 

at any one plant shall not exceed 5 percent of the total number of 

employees engaged by any employer in any one plant at any one time. 

4. The foregoing provisions of this section established a minimum 

rate of pay regardless of whether an employee is compensated on a 

time rate, piece rate, or other basis. The rates of pay hereinbefore 

provided shall not be understood to be the maximum rates of pay 

for the respective districts. 

5. The amounts by which wages in the higher paid classes of employees have exceeded wages in the lower paid classes of employees, 

shall be maintained, having in view long-standing wage differentials. 

6. Female employees shall not be employed after 6: 00 p.m. 

7. Each employer shall post at a conspicuous place at each plant 

the minimum wages and maximum hours under this Code. 

ARTICLE IV-ADMINISTRATION 

To effectuate further th~ policy of the Act a Code Authority is 

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

A. Organiz{J)tion mnd Oonstituti()'ll, of the Oode A1utlwrity.-The 

Code Authority shall consist of seven individuals, or such other 

larger number as may be approved from time to time by the Administrator, to be selected as hereinafter set forth. The President, in his 

discretion, may appoint not more than three additional members 

without vote to represent the Administrator. 

1. The Board shall elect the Code Authority. The persons so 

elected shall, subject to changes at any time by the Board·, serve on 

such Code Authority for such term as the Board shall determine. 

The Board shall be made up as follows: 

(a) One member to be chosen from each district. 
331 

(b) Trustees at Large, not to exceed seven (7) in number, shall be 

chosen by those members of the Board who repre ent the cement 

districts. 

( c) The Presj dent, the Vice Presidents, and the Treasurer of the 

I nstitute shall be ex-officio members of the Board with-full power to 

vote. 

The members of the Board to repre ·ent the cem0 nt districts shall 

be elected by the members of the industry who participate in the 

activities of th° Code uthority, as pro, ided in Section B, sub- section 8 b~low, in the respective districts by a majority vote of 

such mcmb~rs in each such district to serve for the term of one year 

and until their successors a.re elected and have qualified, and the 

members of the Board, so elected, shall elect the Trustees at Large; 

provided, however, that any member of the Board elected to repre- sent any cement district may be recalled by a majority vote of the 

members of the industry in any such cement district in the event of 

the change in status of such Trustee or if, for any other reason, any 

such Trustee is not considered to be representative of the members 

or the industry in such district and, in the event of such recall, such 

members shall elect, by a majority vote, a Trustee to fill the unex- pired ter 1 of the Trustee who has been recalled; a majority of the 

members of the Board shall have like power with respect to any 

Trustee at Large. 

In the event of a vacancy in the Board, such vacancy shall be 

filled :for the unexpired term of the Trustee- whose vacancy is to be 

filled in the same manner as such Trustee was elected a member of the 

Board. 

In the event of the inability of any Trustee elected to represent a 

cement district, or of any Trustee at Large to attend any meeting 

of the Board or of the Institute or of any committee or committees 

thereof, the members of the industry in such district, with respect 

to Trustee representing cement districts and the other Trustees at 

Large, with respect to any such Trustee at Large, shall have the 

right, from time to time as the occasion may require, to elect an 

Alternate Trustee to attend any such meeting or meetings who shall 

have such authority to represent the members of such district or to 

act as Trustee at Large as may be prescribed by such members or 

by such other Trustees at Larae. ""\Vithin the limits of the authority 

conferred upon him, as herein provided, any such Alternate Trustee 

shall have the right to vote and to act in all respects in the place 

of th 1ember of the Board whose place he fills. 

2. The Institute or its succes:ors or any trade or industrial association participating in the selection or activities of the Code 

Authority, shall: 

(1) Impose no inequitable restrictions on membership; 

(2) Submit to the Administrator true copies of its Articles of 

Association, By-Laws, Regulations and any amendments when 

made thereto, together with any other information relating to mem- bership, organization, and activities as the A 1ministrator may deem 

necessary to effectuate the purposes of the Act. 

3. In order that the Code Authority shall at all times be truly 

repre._entative of the industry, and in other respects comply with 

23777°-244-96-33-2 
332 

the provisions of the Act, the Administrator shall provide such 

hearings as he may deem proper; thereafter if he shall find that the 

Code Authority is not truly representative, or does not in other 

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

appropriate modification in the method of selection of the Code 

Authority. 

B. Powers and Duties of the Code Authority.-In addition to the 

powers and duties herein specifically conferred upon the Code Authority, it shall have the following duties and powers to the extent 

permitted by the Act and subject to the right of the Administrator 

by review to disapprove or modify a.ny action taken by the Code 

Authority pursuant to this Code. 

1. The Code Authority shall be the general planning, coordinating_, 

and admini tering agency of this Code. It may make such rules and 

regulations as may be necessary for the conduct of its business in the 

administration of this Code. 

2. The Code Authority may designate the Institute or such other 

committees or agents, and may delegate to them such of its powers 

as it may deem necessary :for the administration of this Code; provided, however, that the Code Authority shall not be relieved of final 

responsibility with respect to any such delegated lowers. 

3. The Code Authority shall, upon complaint o interested parties, 

upon request of the Administrator, or upon its own initiative, make 

such inquiry and inve tigation as to the operation and observance of 

this Code as may be necessary and report the results thereof to the 

Administrator f r such action by him as may be in accordance with 

law. 

4. o member of the Cocle Authority or of any committee designated by it hall participate as such member in a proceeding in which 

he is interested, either as complainant or as respondent, or in which 

he is in any other manner directly interested; and in the event of any 

such disqualification, the remaining members of such Code Authority 

or committee shall certify such disqualification, together with the reason~ therefor to the President of the Institute, who shall promptly 

designate a per on to sit as a special member of such Code Authority 

or committee for the purposes of any such proceedings; provided 

however, that any such special member so appointed shall be selected 

from the same group of the industry as is represel'.ted by the member 

whom he replaces. 5. In order that the President may be informed of the extent of 

the observance of the provisions of this Code and of the extent to 

which the declared policies of the National Industrial Recovery Act 

are being effectuated in the industry, the Code Authority and members of the industry shall make such reports as the Administrator 

may require periodically or as often as he may direct. Each member 

of the indu try shall make such sworn or unsworn reports to the 

Code Authority or to such agency as it may designate as to wages, 

hours of labor, number of employees, and such other matters as the 

Code Authority may require for the administration of this Code; 

provided, however, that any information furnished hereunder of a 

confidential nature a between competitor in the industry shall not 

be a Tailable to competitors nor publi heel in such f orm as shall reveal 

the iclenti y of any member of the industry furnishing such reports. 
333 

In addition to the information required to be submitted to the 

Code Authority, there shall be furnished to governmental agencies, 

such statistical information as the Administrator may deem necessary 

for the purposes recited in Section 3 (a) of the Act. 

6. Any interested party shall have the right to complain to the 

Code Authority under such rules and regulation as it may prescribe 

in respect of any rule, regulation, order or finding made or course 

of action pursued by the Code Authority, and any interested party 

shall have the right to appeal to the Administrator under such rules 

and regulations as he may ~rescribe in respect to any decision, rule, 

regulation or course of act10n of the Code Authority, pursuant to 

any provision of this Code. 

7. The Code Authority and/or the Board may, from time to time, 

make such recommendations to the President as it may deem advis- able or necessary to effectuate the policy of the Act and to develop 

and maintain conditions of fair competition in the Industry; and 

any modification or additions to this Code recommended by the 

Code Authority and/or the Board shall, upon approval by the Presi- dent, become part of and shall have the sa1ne force and effect as 

other provisions of this Code. 

• 8. Any member of the Industry shall be entitled to participate in 

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

to participate in the selection of the members thereof by assenting 

to and complying with the requirements of this Code and by either 

paying his reasonabl share of the expenses of its administration 

or by becoming a member of the Institute. The reasonable share of 

expenses of administration shall be determined by the Code Author- ity subject to review by the Administrator on the basis of volume 

of business and/or such other factors as may be deemed equitable 

to be taken into consideration. 

ARTICLE V-SAFETY w ORK 

As an evidence of the general attitude of the industry toward its 

employees, the industry points with pride to its achievements in the 

field of safety. For many years the industry has . occupied the 

premier posit10n in safety accomplishments. It has been regarded 

as an exemplar in safety technic; it received the Joseph A. Holmes 

awards for the years 1930 and 1932, which is more notable because 

during those declining and depression years, great difficulties were 

experienced in maintaining normal safety morale in plant organizations. Such results, in the opinion of the industry, can be attained 

only by the cooperative effort of constructive management and satisfied, intelligent employees. The safety movement in the industry is 

conducted by, and for many years has been one of the constructive 

activities of, the Portland Cement Association, an organization of 

the indu try which is devoted to research, education and improve- ment and extension of the use of concrete. So far as practicable, 

the safety movement will be continued. 

ARTICLE VI- PLAN FOR SHARING AVAILABLE BUSINESS 

1. The Board is hereb:, authorized to formulate a plan or plans, within thirty (30) days after the effective date of this Code, unless 
334 

such time shall be extended by the Administrator, for the equitable 

allocation of available business among all members of the industry or 

among members of the industry operating in one or more Districts, 

and for the control of cement inventory and to submit the same either 

to a meeting of all members of the industry or to meetings of members in the Districts affected, as the Board may determine, for approval, modification or rejection. Each member of the industry 

shall be entitled to receive notice of any such plan and to participate 

in any meeting or meetings of all members of the industry or of 

members in the District in which such member operates and, further, 

shall have the right to appear before the Board at any meeting at 

which any such plan is being considered for the purpose of presenting any facts or arguments relative thereto. 

When any such plan shall have been formulated by the Board, the 

Code Authority shall present the same to the Administrator for consideration and the Code Authority shall represent the industry and 

the Board in conference with the Administrator with respect to any 

such plan; pro,vid~d, however, that as regards any such plan the 

Code Authority shall have only such power to bind the industry or 

any subdivision thereof as shall have been conferred upon it by majority vote of the industry or of any subdivision thereof, and each • 

member shall have the right to present his objections, if any, to the 

Administrator. The Code Authority shall collect and present to the 

Administrator such data and statistics as may be required in connec- tion with any such plan together with a statement of the names of 

those me1nbers of the industry that approve and of those that disapprove such plan in whole or in part. 

2. Any such plan shall be based on the following principles : 

(a) It shall be fair and its benefits shall be equitably apportioned 

to all plants. 

(b) It shall give due consideration to all pertinent factors including demonstrated productive capacity based on the clinker and/or 

cement production performance of non-obsolete plants and equipment. 

( c) It shall in no way reduce the total production of all plants 

below what is necessary amply to supply demand. 

( d) It shall not promote monopoly or monopolistic practices or 

oppress small enterprises. 

ARTICLE VII-INCREASE IN PRODUCTIVE CAPACITY 

Prior to the construction or operation of a new plant, or the increase in the productive capacity of an existing one, or the movement of all or part of such a plant from one place to another, The 

Cement Institute, on receipt of such information, shall promptly 

collect complete information concerning existing productive capacity 

in the area in which the proposed new plant is to be located, too-ether 

with data concerning consumption of cement in that area. rt' these 

data disclose that such new plant will result in further increa in O' 

the problem of over-production or over-capacity in such area, Th~ 

Cement I nstitute may petition the President to prohibit the con- struction, or operation, of the proposed new plant, or the increa e 

in manufacturing capacities of such existing plants. The provi ions 
335 

hereof shall not be construed to prevent the modernization of existing 

plants to improYe quality of product and/or operating efficiency. 

The Board may study the problem of permanent excess of productiYe capacity in any area and may from time to time prepare and 

submit to the Administrat' r for consideration plans for the closing 

down or amortization of the less economical plants. 

ARTICLE VIII-CosT PROTECTION 

1. It shall be an unfair method of competition for any member of 

the industry to sell or offer to sell cement at less than his expenses of 

manufacture, provided, however, that any member of the industry 

may sell or offer to sell cement at below his own expenses to meet the 

competition of any other member of the industry whose price is not 

less than the expenses of manufacturing of such other member. 

Manufacturing expenses as used herein, shall include all direct 

labor and material ( which do not greatly vary per unit of production with volume of output), at cost or market whichever is lower, plus a proportionate share of all indirect. expenses, inclusive of maximum depreciation and/or depletion allowances computed according 

to Federal Income Tax procedure, but exclusive of any capital 

reserves, for purposes other than depreciation and/or depletion, and 

exclusive of interest paid and development expenses. Provided, that 

the distribution of such indirect expenses per unit of product produced shall be on the basis of an average rate of utilization of plant 

facilities by efficient producers. 

Unless and/or until some other formula is submitted to, and 

approved by the Administrator, the average rate of utilization of 

plant facilities shall be determined as follows, to wit: 

Each member of the industry shall send to an impartial agency 

appointed by The Institute, a consolidated income-tax return for 

that portion ( or all) of his operations, devoted to the manufacture 

of Portland Cement for each of the years 1927-1932, or such other 

period as, upon presentation of official data, may be determined to 

be fair and as will better effectuate the purpose hereof and be approved by the Administrator, together with a record of physical 

production, productive capacity, and sales in each of these years. 

From these reports will be calculated the average rate of utilization of productive capacity by the one third (1/2) portion of the 

industry which reported the lowest average per unit cost of 

production for such period. 

This percentage of productive capacity ( rather than full capacity) 

shall become standa.rd for the distribution of indirect expenses and 

fixed charges for the purpose of determining the per unit manufacturing expenses, by every member of the industry. 

2. In case of any complaint that a member of the industry has 

violated the above provisions of this Code, the Code Authority shall 

give to such member of the industry not more than seven (7) days, 

or such other reasonable time as may be fixed by the Code Authority, 

in which to present evidence of its compliance with the foregoing 

provisions. If the Code Authority is not satisfied by the proof fur- nished by such member, the matter shall be promptly referred to the 

Administrator who shall immediately select a certified public ac-
336 

countant to examine the cost accounting of the member of the industry complained against and notify such member of the selection 

made and reque t the consent of such member to the examination of 

its cost accounting by the certified public accountant so selected. If 

such member shall not, within two (2) days after receipt of notice 

from the Administrator as above provided, furnish to the Administrator written consent to such examination or shall not thereafter 

make available to such certified public accountant all books and records necessary to complete the examination of the co t accounting of 

such member of the industry then, and in either event, the Administrator shall forthwith refer the matter to the Federal Trade Commission which shall audit the cost accounting of such member of the 

industry and report to the Administrator who may transmit a copy 

of such report to the Code Authority and to the member of the industry complained against,, with the least practicable delay. In the 

event that the member of the industry complained against shall con- sent to the examination of its cost accounting by the certified public 

accountant elected by the Administrator after such accountant shall 

complete his report, such accountant shall report his findings to the 

Administrator and transmit a copy thereof to the Code Authority 

and to the member of the industry complained ao·ainst. If, in the 

opinion of the Administrator, the report of such accountant shall 

sustain the contention of the Code Authority but is not acceptable 

to the member of the industry complained against, then the matter 

shall be referred by the Administrator to the Federal Trade Commis- sion, as above pro\ided. The decision of the Administrator on the 

report of the accountant selected by him or on the report of the 

F ederal Trade Commission shall be final regarding the costs of the 

member of the industry complained against. 

3. Uniform Oost Accournting.-The Code Authority shall prepare 

and adopt for general use throughout the industry, and submit to 

the Admini trator for approval within thirty (30) days of the effective date hereof, a standard method or system of uniform cost 

accounting which shall specify all items and include all elements of 

manufacturers cost. When so prepared, adopted, and approved, 

all members of the industry shall apply the principles and include all 

the elements thereof in determining their respective costs. 

ARTICLE IX-OPEN PRICE-MARKET STABILIZATION 

1. Each member of the industry shall file its prices and all terms 

and condition of sale with the Code Authority within five (5) days 

nfter the effective date of this Code and make same public by broadcast quotation to the trade, so that competitors, the trade, and the 

buying public may at all tin1es have accurate information relati e 

thereto, and no member of the industry shall deviate therefrom 

except in the manner hereinafter provided. 

2. ny member of the industry may from time to time change or 

revi e its prices by filing notice thereof with _the Code Authority; 

and no member of the in lustry shall anticipate, by quotation sale, 

contract, or otherwise, any change or revi ion until after the same 

shall have been on file at least five (5) day at the office of the Code 
337 

Authority. At the expiration of such five ( 5) day period the said 

changes or revisions may, unless the effective date thereof shall be 

extended, be made effective, and thereupon shall b 0 made public in 

the manner provided in Section 1 hereof. 3. Any meml>er of the industry may meet the prices, terms: and 

conditions of sale, establishe 1 by the uboYe methoJ, as of their effectiYe date, and no member of the industry shall deviate from the 

prices, terms, and condition of sale, o established, except in the 

manner aboYe tatecl, and all members mee ing su h changes shall 

make same publi c in the man ner provided in Section 1 hereof. 

4. lllanner of Proceclw·e on Price Changes.-(a) (1) Declines shall 

be retroactive on all shipments made within five ( 5) calendar days 

before the effective date thereof. 

(2) Advances shall be made effective five (5) calendar days after 

expiration of the notice period and the trade shall be given such 

notice. 

(b) During the five ( 5) days prior to the effective date of an 

advance current market orders may be booked at the prior price for 

shipment not more than 15 days from the date the advance becomes 

effectiYe. 

( c) Each specific work quotation shall contain a provision permitting withdrawal on five days' notice. 

( d) After an advance in price all outstanding quotations on work 

for which bids have been opened, which quotations extend longer 

than fifteen days from the effective date of the new price, shall be 

withdrawn or revised to expire on such fifteenth day. 

( e) All quotations at the prior price, made during the five-day 

notice period shall be confined to jobs on which bids are to be opened 

prior to ten days from the effective date of the new price. Such 

quotations ma r be closed by contract not later than fifteen days from 

the effective date of the new price. 

(f) All quotations outstanding on jobs on which bids are to be 

opened later than ten days from the eff ectiYe date of the new price 

shall be withdrawn, anJ any quotations made on such jobs during 

the five-day-notice period shall be at the new price. 

5. If the Code Authority has reasonable cause to believe, and the 

member filing sanie shall have been so notified, that any price filed at 

its office, as above provided, represents a price made pursuant to a 

violation of any provision of this Code, the Code Authority may, by 

notice to such member, extend the effective date of such price for 

a period of not more than ten ( 10) days in order that investigation 

may be made by the Code Authority pursuant to the provi ions of 

Section 2, Article VIII. 

ARTICLE X -U NF AIR Col\IPETITION 

For the purposes of this Code, the following acts shall constitute 

unfair trade practices and a violation of this Code : 

1. Making or promising any bribe, gratuity, gift, or other remuneration, not filed and published in accordance with Article IX 

hereof, directly or indirectly to any purchaser or prospective purchaser or to any officer, employee, or representative thereof, for the 

purpose or with the effect of making a sale of cement; imitating any 
338 

brand or trademark used by any competitor; inducing or attempting 

to induce in any manner the violation of any existing future sales 

order or future sales contract, or other existing contract between a 

me~ber of the indu_stry and his customer, with the pur~ose or. effect 

of inducing or causing a breach of any such contract; circulating or 

disseminating false or misleading information by words or acts relative to the prices, credit standing, business integrity, or ability to 

perform contracts, of any competitor or the grade, quality, count, 

character, nature, origin, manufacture, weight, or preparation of his 

products. 2. To compensate salesmen in any manner other than upon a fixed 

salary and full-time basis. 

3. To divert or permit purchasers or users of cement to divert 

shipments of cement from one destination to another destination, 

the result of which will enable the purchaser or user to secure 

cement at less than the member of the industry's published market 

price at the point of final destination. 

4. The following practices, undertaken for the purpose or with 

the effect, directly or indirectly, of furthering the sale or use of a 

particular brand of cement shall constitute unfair trade practices 

and a violation of this Code: 

(a) Except with permission of the Code Authorhy ( and such 

permission, when given, shall apply to all companies in the marketing area affected ) the purchase by any member of the industry, 

of bonds, or other securities, issued for the financing of constructive 

work, either in the name of the member of the industry, its subsidiaries, or of individuals, or officers, connected therewith, or the 

acceptance of such bonds, or other securities, in payment, wholly or 

in part, for cement, or the advance, loan, or payinent of any monies 

by a member of the industry for the purpose of inducing the purchase of cement, or to assume cost of Bidders' Bonds or to endorse 

or guarantee or in any way relieve a Bidder of the responsibility 

f or or the expense of providing such bonds, unless such conditions 

shall have been filed and published in accordance with Article IX. 

(b) For the purpose or with the effect of evading the provisions 

of Article IX of this Code, the purchase of fuel or other supplies, 

either directly or indirectly, or in the name of the company, or its 

subsidiaries, or of individuals, or officers connected therewith at 

prices above the market price thereof at the time of purchase. 

( c) To make or permit to be made, either directly or indirectly, 

any secret payment or allowance of rebates, refunds, commissions, credits,.or unearned discounts in the form of money or otherwise, 

or to secretly extend to certain purchasers special services or privileges not extended to all purchasers on like term and conditions. 

( d ) The. prepayment of transportation charges on shipments consigned to other than the member of the industry itself, except in the 

case of railroad freight charges to stations to which regulations require prepayment from any shipping point, or the payment of demurrage charges by any member of the industry on uch shipment ; 

provided, howeYer, that the foregoing provision, except as to demurrage char,ges, shall not apply to shipments purcha~ed directly by 

and consigned to departments of the United States or State Govern-
339 

ments, unless such conditions shall have been filed and published 

in accordance with Article IX. 

(e) Knowingly diverting or permitting to be diverted to other uses, 

cement shipped for a specific work project nor knowingly shipping 

on a specific work order or contract, an amount of cement in excess 

of the actual needs of such work. 

(f) To entice maliciously the employees of a competitor with the 

intent or effect of interfering with the conduct of the business of 

such competitor. 

(g) Knowingly to ship cement by any transportation agency which, 

for the purpose or with the effect of inducing or influencing the sale 

or purchase of cement, makes payments or concessions by rebates or 

otherwise. 

(h) The payment, or offer to pay, directly or indirectly, any advertising expenses of purchasers or users of cement. 

(i) Lavish, excessive, or undignified entertainment of purchasers 

or users of cement, or others connected therewith; donating funds, 

or providing banquets or other similar lavish entertainment for purchasers or users, or associations thereof; giving or offering to give 

premiums, personal gifts, gifts of cement, or gifts of any other commodity of substantial value to purchasers or users of cement. 

(j) The sale by any member of the industry, directly or indirectly, 

of any commodity at a discriminatory price. 

(k) Services to purchasers or users are proper under fair competition, if confined within the limits of advice and consultation. 

The furnishing of articles or facilities of a definite physical nature, 

whether by way of loan, lease, gift, or otherwise, resulting in monetary benefit to purchasers or users is discriminatory and shall constitute unfair competition. 

( 1) No member of the industry shall maliciously refuse to sell to, 

or maliciously interfere with the business. of, dealers or users of 

portland cement purchased from a competitor, for the purpose of 

interfering with the conduct of the business of such competitor. 

ARTICLE XI-METHOD OF SELLING AND MARKETING CEMENT 

The Code Authority may, after the approval of the Administrator 

has been secured, authorize and approve such exceptions to or modifications of any of the following provisions as it may see fit for ali 

members of the industry in the marketing fl,rea affected. 

No member of the industry shall discriminate in prices, terms, 

and conditions of sale at the same time and place of delivery between 

purchasers or users of cement in the same class and similarly 

situ:ited. 

1. Except a otherwise specified, portland cement shall be marketed in each community through the building material dealers 

regularly serving such community. 

2. Except as otherwise specified, the following buyers shall be 

sold direct by members of the industry at the same price and under 

the same terms and conditions of sales as to dealers : 

United States Government. 

State Governments, Counties, and Parishes when properly authorized to purchase cement for public improvements or maintenance. 
840 

Contractors doing any of the foregoing classes of work, except 

where uch work is located entirely within cities, towns, or villages. 

Railroads filing tariffs with State r Interstate Commission , 

and contractors doing work for such railroads. 

Owners or contractors buying for power deYelopment, flood control, and water-supply projects that do not require dealer service. 

Concrete Products ~1anufacturers, including block, tile, roofing, 

pipe, piling, and all other precast concrete units when for their own 

manufacturing operations, but not for resale. 

Commercial concrete mixing plants for their own processing operations but not for resale. 

3. befini ion of a dealer: A cement dealer as u ed herein is one 

who has an established place of business where he is regularly 

engaged in selling portland cement and other building materials to 

the public, with facilities to serve the retail trade in a given territory and able and willing to perform all functions devolving upon 

him in securing, performing, and protecting contracts for the 

deliYery of portland cement for specific work on his account . .LT o memb r of the industry shall pay to any dealer any commissions or other remunerations for the sale of such member's cement. 

4. Cement hall be marketed on the basis of a barrel, weighing 378 

pound net; and hall be deli-vered in th following manner : 

(a) In cloth or pa per sacks, four ( 4) sacks of 9-:1: pounds net each 

con. titute a barrel, or 

(b) In bulk computed on weights on scales at the plants or en 

route. 

5. Cement sh::tll be marketed either on current or n1arket orders for 

deliYery within fifteen da~· , or on orders or contracts for future 

deliYery beyond fifteen days. 

Orders entered for fifteen days' shipment shall be subject to 

shipment on the fifteenth day without notice to the purchaser. 

Quotations on current orders shall be for immediate acceptance. 

ement purchased for deliYery beyond fifteen days from date of 

purcha e shall be sold either to cover "specific work" or for period 

r equirements. 

ti. Application of Exhibits B and C. The bookina of either specific work orders or period requirement contracts from the ,, arious 

groups of purchasers listed in sections 1 and 2 of this article shall 

be as follows : 

(a) nited State Gozernment: Sell under contracts for delivery 

p eriods as specified in formal requests for bids. 

(b) States: Projects on which con trnction contracts are a warded. 

Sell under specific work contracts. Such contracts shall be closed 

only after definite award of construction contracts. On reque t 

from States for cement price on su h projects, the prices quoted 

shall be not higher than the prices in effect fifteen days prior to the 

date on which such States receive construction bids and such prices 

shall be good for acceptance within fifteen days after such date for 

receiving construction bids. 

Purchases for use by tate Forces : If any department of the 

State undertakes construction work conforming to the general definition of a specific work project, sell under specific work contract. For 
341 

r equiremepts of the character of repairs and maintenance, sell under 

calendar quarterly contracts. 

( c) Counties, Parishes, and Cities: Sell on calendar quarterly requirement contracts. 

( d) Railroads : Sell on calendar quarterly basis for general requirements. Specific jobs requiring extended delivery may be sold 

under the plan outlined below for SJ?ecific work contracts, provided 

the jobs are covered by appropriations, plans prepared and it is 

possible to definitely check the job for location and quantity. Contracts for such specific job shall be limited to shipment for such work 

only and shall be closed for a period of not to exceed one year from 

date of contract. Cement u.-.:ider such specific job contracts shall not 

be shipped to any town other than that provided in the contract nor 

shall it be diverted for use in general repair or maintenance work. 

( e) Owners and Industrials: This title includes industrial projects 

and owners thereof, such as coal companies, manufacturing companies, street railways, packing houses, stockyards, cemeteries, light 

and power companies, and all public utilities except railroads having 

published ta~iffs and recognized by public service commissions as 

common carriers. 

Sell for fifteen days' shipment only, on current or market orders; 

when work is done by the owner or industrial specific contracts shall 

not be made; when an owner or industrial awards a specific job to a 

contractor and the contractor buys the cement requirements, specific 

work contract shall be closed provided the job may be checked 

definitely as to location and quantity. 

(f) Conduit construction or repair work by public utilities shall 

not be sold for extended delivery but shall be sold for fifteen day 

shipment only on current or market orders. 

(g) Speculative residential work shall be sold for current delivery 

only. Any project involving more than one residence for one owner 

constitutes a speculative operation. 

(h) Products Manufacturers: (1) Manufacturers of blocks, tile, 

roofing, and all Products manuf.acturers not included in (2) below, 

shall be sold on calendar quarterly contract'3. 

(2) Pipe manufacturers and concrete pile manufacturers: For 

specific jobs which can be definitely checked £or quantity and location, sales shall be made on specific contract basis. In general such 

specific contracts shall be confined to public work awarded by contract 

where the cement requirements can be accurately figured. 

An order held by a pipe manufacturer for the year's requirements 

of a city, county, state, industrial, or contractor shall not constitute 

a specific job. Such orders as well as general requirements of the 

plant shall be sold only on calendar quarterly contracts. 

( i) Commercial Concrete Mixing Plants: Shall be sold for fifteen 

days delivery or for specific job requirements as herein provided; but 

shall not be sold for general or period requirements. 

7. Tim.e of closing calendar requirement contracts. Contracts for 

any quarter shall be quoted or closed not earlier than the first day 

of the last month of the preceding quarter. 

The basis of a contract ( except on sales direct from member of the 

industry to user) shall be a binding order placed by the user with a 

dealer and a corresponding order placed by the dealer with the 

member of the industry. 
342 

8. Time and Manner of Closing Specific Work Orders .. When a 

contractor has an order with a building material dealer for a specific 

work project, the member of the industry shall book from the dealer 

a purchase order for the required amount of cement to be invoiced 

at the member's market price at time of shipments. This order shall 

be binding on both parties. The parties shall agree in this order that 

if the member's price should advance, a specific work contract shall 

be entered into at the price prevailing prior to such advance, for 

the quantity of cement then required to complete the project. The 

dealer shall furnish the member of the industry, as the basis for 

such contract, his record of the amount of cement delivered to the 

contractor prior to the advance in price, tog~ther with a verified 

written estimate from a responsible representative of the contractor 

of the amount of cement still required to complete the work. 

Specific work orders at prices prior to an advance in prices, but 

ciosed during the period immediately following an advance, as described in paragraph 8, shall be covered immediately by specific work 

contracts, but such contracts shall be supported by the dealer's record 

of prior deliveries and the contractor's written estimate of requirements as above stated. 

9. The provisions of this Article XI are designed to meet present 

industrial and social conditions as they relate to the cement industry. But the Administrator and the Code Authority with the 

approval of the Administrator reserve the right from time to time, 

and after such hearing as they or either of them may deem necessary, 

to modify the foregoing provisions of this Article as conditions and 

circumstances may indicate to be necessary to effectuate the policy 

and provisions of the Act. 

ARTICLE XII-TERMS AND CONDITIONS OF SALE 

1. All future sales orders and future sales contracts for the sale 

of portland cement shall contain a definite statement of pricei quantities, terms of payment, time and place of delivery, and al other 

terms of sale necessary to form a complete and unambiguous contract. 

2. No member of the industry shall substitute for a contract or 

purchase order already executed and in force, a new contract or 

purchase order for the same requirements at a lower price or on 

more favorable terms to the purchaser than are contained in the 

original contract or purchase order. 

3. Attached hereto and marked Exhibits B and C are forms of 

future specific sales orders, and contracts, the provisions, terms, and 

conditions of which have been agreed to by members of the industry 

as representing in substance the best practices within the industry. 

4. Terms of payment shall be as follows: A cash discount of not 

in excess of 10¢ per barrel may be deducted from invoices paid in 

full within fifteen days from date of issue. Invoices not discounted 

are payable net thirty days from date of issue. 

(a) Where purchases involve frequent shipments, a plan of semimonthly remittance, based on a fifteen-day average, may be used as 

follows: 

All invoices dated from first day of month to fifteenth day of 

month, inclusive, to be paid by the 22d of that month; and all in-
343 

voices dated 16th to 31st, inclusive, to be paid by the 7th day of the 

following month. 

(b) Cash discount shall not be allowed if remittance is forwarded 

after the expiration of the 15-day veriod, or semimonthly period; 

or if deduction is made in the remittance for cloth sacks to be returned or in transit and not yet credited; or if the remittance consists in whole or in part of notes, trade acceptances, scrip, warrants 

(whether interest bearing or not), or any medium other than ca h 

or bankable check for the full amount of the invoices upon which 

cash discount is deducted. 

( c) The postmark date at point of mailing shall determine the 

date of remittance. 

( d) No unearned discounts shall be allowed. 

5. Package charges and allowances: . (a) When cement is shipped in cloth or paper sacks the price 

shall include H1e member of the industry's published deposit or leasing charges for cloth sacks or the sellin~ charge for pa per sacks and 

payment of such charges shall be required at the same time as the 

cement. 

(b) vVhen used cloth sacks are returned empty t.o the member o.f 

the industry the credit or allowance shall at all times be in accordance with the member's published terms and conditions of sale. 

6. Invoices: Invoices shall be dated as of the date of shipment 

(provided where special and unusual conditions prevail, the members 

of the industry in the district or districts concerned, may, subj ect 

to the approval of the Code Authority, change this provision to conform to such special and unusual conditions) and shall contain full 

information as to price, quantity, kind of package, terms of payment, place of deliveries, routing, amount of freight allowed, and 

any other data necessary to show fully all conditions entering into 

the sale. Any deviation or concession from these conditions is an 

unfair practice. 

ARTICLE XIII-STANDARDIZATION OF PRODUCTS 

1. All Portland Cement marketed by members of the industry 

shall comply with the standard specifications for Portland Cement 

of the American Society for Testing Materials and the American 

Standards Association, and/or the Federal Specification Board. 

Members of the industry may sell cement under modified Portland 

Cement specifications that are designed to meet special or unusual 

conditions not adequately or v.roperly covered by the specifications 

hereinabove referred to, provided, however, that the pnce at which 

such modified Portland Cements are sold shall be filed with the Code 

Authority. 

2. Every member of the industry shall guarantee his products to 

comply with all of the conditions of the specifications under which 

they are sold, but shall not be responsible for the improper use of 

cements and therefore shall not guarantee finished work, nor shall 

the member of the industry be responsible for condition of product 

after delivery. 

3. No member of the industry shall pay or absorb, directly or 

indirectly. any charge for inspection or tests made by or on behalf 

of the purchaser to detennine compliance with specifications therefor. 
344: 

ARTICLE XIV 

It is the concen us of opinion of the industry that each member 

thereof should bear his proportionate share of the burden of the 

cost of constructive cooperative activities approved and supported 

by the majority of the Industry and whose benefits are common to 

all manufacturers. 

ARTICLE xv 

Nothing in this Code contained, excepting, however, the provi ions 

of Article III, shall be deemed to apply to or affect the sale by any 

member of the industry of any products of the industry for direct 

shipment in export trade. 

ARTICLE XVI-MODIFICATION .. 1. This Code and all the provisions thereof are expressly made 

subject to the right of the President, in accordance with the provisions of subsection (b) of Section 10 of N.I.R.A. from time to time 

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

issued under Title I of said Act and specifically but without limita- tion to the right of the President to cancel or modify his approval 

of any provision of this Code or any conditions imposed by him upon 

his approval thereof. 

2. Whene,er the Administrator shall determine such action by him 

to be necessary to effectuate the policy of the Act, he may modify or 

cancel any action pursuant to this Code by any agency established 

thereunder. 

3. Except as to the provisions required by the Act, this Code may 

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

such modifications to be based upon application to the Administrator, on such notice and hearing as he shall specify and to become 

effective on approval by the President. 

ARTICLE XVII-l!oNOPOLIES 

No provi ion of this Code shall be so construed or applied as to 

permit or promote monopoly or monopolistic practice or to eliminate, oppre s, or discriminate against small enterprises. 

ARTICLE XVIII-EFFECTIVE DATE 

The effective date of the Code shall be ten days after approval 

thereof by the President. 

Approved Code No. 128. 

Registry No. 1010-1-02. 
EXHIBIT A 

DISTRICTS 

The twelve (12) geographical districts as described by the United States 

Bureau of Mines are as follows: 

District' No. 1-Eastern Pennsylvania, New Jersey, Maryland. 

No. 2--New York, Maine. 

No. 3-Westerr. Pennsylvania, Ohio, West Virginia. 

No. 4-Micbigan. 

No. 5-Wisconsin, Illinois, Indiana, Kentucky. 

No. 6-Virginia, Tennessee, Alabama, Georgia, Florida, Louisiana. 

No. 7-Eastern Missouri, Iowa, Minnesota, South Dakota. 

No. 8-Western Missouri, Nebraska, Kansas, Oklahoma, Arkansas. 

No. 9-Texas. 

No. 10-Colorado, Montana, Utah, Wyoming, Idaho. 

No. 11-California. 

No.12--Oregon, Washington. 

(345) 
EXHIBIT B 

( Specific sales order) 

To _____ ________________________ _ 

Name and Adllres of Cement Corn any 

,Ye ha ,e Gld to ____________________ _____ Contractor_ ___________________ _ 

Barrels of (Brand) ---------------- - P ortland Cement for_ _______________ _ (l•raction or a 11) 

______________ of his r equirements on the following specific work awarded him: 

( Character, descrip tion, and location of work, and name of owner) 

We hereby place with you our order for the above quantity of (Brand) ____ __ _____ ____ _ P ortland Cement, to be packed in __________________ (sacks), 

for u e on the aboYe work, at your prevailing market price at time of shipment, 

subj ect to the conclitiow stated on both sides hereof. 

,Ye will de ire deli, ry made, as the work require , upon our instructions in 

earl< ad lot.::, F.O.D. cars ______________________ deliverie to be complete prior 

tO-------- ------------· 

It i exvr ,~l~ under tood and agreed: 

1. That if .r u advance your market price prior to tlte completion of shipment · on this order, you will. 'Vithin ten (10) day of the effective da te of such 

advance. t>nttr into y1,ur standard form of specific work contract -with us, at 

t he 11rit:e prior to s ·11 adn:rnce, for the quantity of cement that may at that 

da te be requ ired for the completion of the -work covered by this order. - · That a.· a ba is for such specifi c.: work contract, we will supply you with 

our rec()rd of cewent delivered to the contractor prior to the time of your 

adv: nee in pri<:e, together with a written estimate frum the contr-actor, or a 

r e tn:nsiule employ P of the contractor, of the quality of cement then required 

to <:omple e the wurk. 

Signed·------------------------

Date· -------------------------- .A_,·cepted: 

Cement Company. 

(Offi c~r) 

D~te · ------------------------

Tcn1ts of Payment.-On approved credit net cash 30 day , from date of invoice, or 10 cent p~r b,urel discount f or cash in 15 day from date of invoice. 

If n t any tim ~ the financial responsibility of Buyer become:s impaired or 

m ,s: tbf.tct1Jry to eller, it reserves the right to require payments in a d,·ance or 

satis,<1ttory ·ecurity or guarantee that inYoice will be promptly paid when due. 

If .Bc1yer fail· to comply with terms of payment, or with any of the other 

tenL:-:; uf ::;.1le, Seller reserve the right to cancel unfilled portion of this order, 

witL iut u dee, Buyer remaining liable for all unpaid accounts. No wai er of 

SUl'.h right llall be im1,lietl from any failure by Seller to exercise the sarne. 

Packugc.-Clo 1.ll . ac:k.::- bearing Seller's brands, in which ement herein contracted fl r i 11ach.u1. are tlle property of eller and are for a period of 00 days 

from tile delivery by Seller f the said cement, leased by it to Buyer at a charge 

of 10 cents eaLh, ,...-hich charge is included in price for cement packed in cloth 

sucks and \\ bi<:b ha1 ge Buyer agree to pay at same time and on ame terms 

as 1>a~·m •nt for cement is made. Bu~·er ag!·e.:s within 90 days of delivery of the cement to deliver to Seller, 

the vwner. at it neare t plant, frei ht charg s collect, a provided by railr ad 

cla. sifications and tariffs, pruperly bundled and so marked as to in ure complete 

id(.;lltification. the cloth ack · bearing Seller's brands, in which the aid cement 

is 1i:1 ck, c1. and eller agr e to refund to Buyer 10 cent for each said cloth 

sack o deli, red in good c:undition, ubject to Seller's count and in..:pection, and 

to a ·ume L·eight charge th reon. If for any reason freight charg~s (per 

r ailroad tar;ff ) are prepaid, they will be refunded by ell r upon presentation 

of Railroad Company's receipted freight bill or bill of lading. 

(346) 
347 

For useless cloth sacks which have been wet, no refund wlll be made. 

Cloth sacks bearing other than Seller's brands will be held by Seller for 80 

days subject to Buyer's order. 

In the event that any of the said empty cloth sacks bearing Seller's brands 

are sold or otherwise disposed of by Buyer to any. person other than Seller, 

the ownPr. Buyer agrees to pay Seller, as liquidated damages, 10 cents for each 

cloth sack so sold or disposed of. 

If during the life of this order. Seller shall change its present charge for the 

lease of cloth sacks. or the liquidated damages, or both, it is expressly agreed 

that the said amount or amounts in the preceding paragraphs shall be <.:hanged 

accordingly, and the gross price specified herein for cement packed in cloth 

sa ·ks shall be changed in accordance with the change in charge for lease of 

cloth sacks. 

Price on cement packed in paper bags includes the paper bags, which are not 

returnable. Shipments in paper bags are made at Buyer's risk of breakage 

and resultant loss of cement. 

(If cement company requires a deposit for cloth sacks, instead of leasing 

them, the fo llowing clauses are suggested) : 

Package.-Tb.e cloth sacks, beanug :::;eller's brand, containing the cement 

are n0t sold, but remain the property of Seller. Buyer agrees to return said 

cloth sacks, properly bundled and marked so as to secure complete identification, to Seller's nearest mill, within ninety (90) days from the date shipment 

of cement has been made. 

Seller agrees to refund to Buyer the deposit of ten cents for each cloth sack 

so returned. This deposit has been included in the price herein stated and 

Buyer agrees to include it when payment for the cement is made. 

It is, however, expressly understood that such cloth sacks must be delivered 

to Seller's mill in good condition and will be subject to mill count and inspection, and that no refund wUl be made for useless cloth sack , nor for cloth 

sacks not of Seller's brand. Such cloth sack , if received, will be held by Seller 

for thirty ( 30) days subject to Buyer's order and risk. 

Seller agrees to pay carrier's freight charges on r eturned empty cloth sacks 

of Seller's brand after delivery to its nearest mill or to refund Buyer for freight 

charges prepaid on such shipments upon presentation of original bill of lading 

properly executed or original receipted freight bill. 

If Seller shall change its present depo. it required for cloth sacks, it is 

expressly agreed that the said amounts in the preceding paragraphs shall 

be changed accordingly and the gross price specified herein for cement packed 

in cloth sacks shall be changed in accordance with the change of deposit 

req uired. 

Price on cement packed in paper bags includes the paper bags whi h are 

not retumable. Shipments in paper bags are made at Buyer's risk of breakage 

and resultant loss of cement. 

Claim,s.-Olaims for loss or damage will not be considered unless supported 

by seal record and railroad agent's acknowledgment on freight bill. Freight 

overcharge claims must be accompanied by original receipted freight bill. 

Time of delivery.-Buyer ·shall give Seller shipping instructions in writing 

a reasonable time before shipment are to be made. If Buyer fails to order 

shipment within the time specified Seller shall have the right to extend the 

time for delivery of such cement, but shall not be obligated to do so, except 

at its option. 

The Seller reserves the right to select the route and method by which ship- ments shall be forwarded, but no Seller can be required to favor any one route 

or method of transportation as against another by any joint action of the 

members of the industry or the Code Authority. Transportation charges per 

tariff applying from shipping point to place of delivery for route and method 

of shipment used, will be paid by the Buyer for the account of the Seller. 

Seller shall not be liable to Buyer for any delays in manufacturing, shipping, 

or delivering said cement, caused by fire, strikes, lockouts, differences with 

workmen, accidents, war, insurrection, inability to secure cars, coal, or other 

material, governmental interference or regulation, delays in transportation or 

contingencies beyond Seller's control; and during the time of such delays Seller 

shall have the right to pro rate among its various customers such cement as 

it may be able to manufacture and ship. 

Specifications.-The cement shipped under this order shall conform to the 

present standard specifications for Portland Cement of the American Society 
348 

for Testing Materials and the American Standards Association and/or the 

Federal Specification Board, and no other warranty is made in respect thereof. 

Seller having no control over the use of cement will not, therefore, guarantee 

fini hed work in which it is u ed, nor shall the Seller be responsible for the 

condition of cement after delivery to Buyer. Any charges incident to inspection or tests made by or on behalf of Buyer to determine compliance with 

specifications shall be paid by Buyer. 

Seller's prevailing market price may be advanced by the amount of any 

increase in freight rates and/or any additional Government tax on freight 

and/or the amount of any tax on sales or contracts of sale effective after the 

date h reof without imposing on Buyer the obligation to enter into Seller's 

standard form of specific work contract, as provided in paragraph 1 hereof. 
EXHIBIT 0 

(Form of future specific sales contract) 

Agreement made this ______________ day of _______________________ 193 __ , 

between ------------------------------ Cement Company, hereinafter called 

Seller and------------------------------ of------------------------------

hereinafter called Buyer: 

Seller hereby sells and agrees to furnish and deliver and Buyer hereby buys 

and agrees to receive and pay for Portland Cement in the quantity and on the 

terms and conditions hereinafter and on the back hereof set forth. 

Description and qua.ntity.-The purpose of this contract is to cover the pur• 

chase and sale of all the Portland Cement required to complete the work 

hereinbefore described, whether more or less than the quantity stated herein. 

Buyer represents that the aforesaid number of barrels of cement will be used 

in the construction of the above-described work and agrees that no portion of 

such cement will be used for any other purpose without the written consent 

of Seller. If any of the cement shipped hereunder is reconsigned or diverted 

by Buyer from the place of delivery specified herein or used for any other 

purpose, Seller may cancel this contract and refuse to ship any more cement 

and Buyer agrees to pay Seller's mnrket price at the place of final destination 

for such cement as has been diverted by Buyer from the place of delivery 

specified herein or has been used by Buyer for any other purpose than the 

purpose above specified ; Buyer remaining liable for all unpaid accounts. 

Place of delvvery.-F.0.B ________________________________________________ _ 

Time of delivery.-Prior to---------------------------------------------- as required by the progress of the work. Buyer shall give Seller shipping 

instructions in writing a reasonable time before shipments are to be made. 

If Buyer fails to order shipment within the time specified Seller shall have the 

right to extend the time for delivery of such cement, but shall not be obligated 

to do so, except at its option. 

Price.-

P er standard barrel, in cloth sacks ____________________ $--------------

Per standard b::i.rrel, in paper bags _____________________ $--------------

Per standard barrel, in bulk __________________________ $--------------

Price includes freight at present rates and will be increased by the amount of 

any increase in freight rate and/ or any additional Government tax on freight 

and/ or by the amount of any tax on sales or contracts of sale effectiYe during 

the life of this contract. All shipments made on this contract will be at the 

current destination price of Seller on the date of shipment, if this price is 

below the contract destination price mentioned herein. 

Terms of payment.-On approved credit net cash 30 days from date of invoice, or 10 cents per barrel discount for cash in 15 days from date of invoice. 

If at any time the financial responsibility of Buyer becomes impaired or unsatisfactory to Seller, it reserves the right to require payments in advance or 

satisfactory security or guarantee that invoices will be promptly paid when due. 

If buyer fails to comply with terms of payment, or with any of the other terms 

of sale, Seller reserves the right to cancel unfilled portion of this, contract, without notice, Buyer remaining liable for all unpaid accounts. No waiver of such 

right shall be imr lied from any failure by Seller to exercise the same. 

Thi.· contract is not assignable by Buyer without the consent of Seller in 

writing. 

_________________________________________________ CEMENT COMPANY. 

By _______________________ ______ _ By ________________________________ _ 

(Buyer) ( Seller) 

Package.-Cloth sacks bearing Seller's brands, in which cement herein contracted for is packed, are the property of Seller and are for a period of 90 

days from the delivery by Seller of the said cement, leased by it to Buyer at a 

charge of 10 cents each, which charge is included in price of cement packed in 

(349) 
350 

cloth sacks and which charge Buyer agrees to pay at same time and on same 

terms as payment for cement is made. 

Buyer agrees within 90 days of delivery of the cement to deliver to Seller, 

the owner, at its nearest plant, freight charges collect, as provided by railroad 

classifications and tariffs, properly bundled and so marked as to insure complete identification, the cloth sacks bearing Seller's brands, in which the said 

cement is packed, and Seller agrees to refund to Buyer 10 cents for each said 

cloth sack so delivered in good condition subject to its count and inspection, 

and to assume freight charges thereon. If for any reason freight charges 

(per railroad tariffs) are prepaid, they will be refunded by Seller upon presentation of Railroad Company's receipted freight bill or bill of lading. 

For useless cloth sacks which have been wet, no refund will be made. Cloth 

sack bearing other than Seller's, brands will be held by Seller for 30 days subj ect 

to Buyer's order. 

In the event that any of the said empty cloth sacks bearing Seller's brands 

are sold or otherwise disposed of by Buyer to any person other than Seller,· the owner, Buyer, agrees to pay Seller, as liquidated damages, 10 cents for 

each cloth sack so sold or disposed of. 

If during the life of this contract, Seller shall change its present charge for 

the lease of cloth sacks, or the liquidated damages, or both, it is expressly 

agreed that the said amount or amounts in the preceding paragraphs shall be 

changed accordingly, and the gross price specified herein for cement packed in 

cloth sacks shall be changed in accordance with the change in charge for lease 

of cloth sacks. 

Price on cement packed in paper bags includes the paper bags, which are not 

returnable. Shipments in paper bags are made at Buyer's risk of breakage 

and resultant loss of cement. 

(If cement company requires a deposit for cloth sacks, instead of leasing 

them, the following clauses are suggested) : 

Packa.ge.-The cloth sacks, bearing Seller's brand, containing the cement are 

not sold, but remain the property of Seller. Buyer agrees to return said cloth 

sacks, properly bundled and marked so as to insure complete identification, to 

Seller's nearest mill, within ninety (90) days from the date of shipment of 

eement has been made. 

Seller agrees to refund to Buyer the deposit of ten cents for each cloth sack 

so returned. This deposit has been included in the price herein stated and 

Buyer agrees to include it when payment for the cement is made. 

It is, however, expressly understood that such cloth sacks must be delivered 

to Seller's mill in good condition and will be subject to mill count and inspection, and that no r efund will be made for useless cloth sacks nor for cloth 

sacks not of Seller's brand. Such cloth sacks, if received, will be held l:>y 

Seller for thirty (30) days subject to Buyer's order and risk. 

Seller agrees to pay carrier's freight charges on returned empty cloth sacks 

of Seller's brand after delivery to its nearest mill or to refund Buyer for 

freight charges prepaid on such shipments upon presentation of original bill 

of lading properly executed or original receipted freight bill. 

If Seller shall change its present deposit required for cloth sacks, it is expressly agreed that the said amounts in the preceding paragraphs shall be 

changed accordingly and the gross price specified herein for cement packed in 

cloth sacks sball be changed in accordance with the change of deposit required. 

Price on c ment packed in paper bags includes the paper bags which are not 

returnable. Shipments in paper bags are made at Buyer's risk of breakage and 

resultant loss of cement. 

Clairns.-Claims for loss or damage will not be considered unless supported 

by seal record and railroad agent' acknowledgement on freight bill. Freight 

overcharge claims must be accompanied by original receipted freight bill. 

The Seller r esen -es the right to select the route and method by ,-..-hicb shipments shall be forwa rded, l.luit no Seller can be r equired to favor any one route 

or method of transportation as against another by any joint action of the members of the industry or the Code Authority. Transportation charges per tariff 

applying from hipping point to place of delivery for route and method of bipment used, will be paid by the Buyer for the ace uot of tbe Seller. 

Spccifi,cntions.-Tbe cement shipped under this contract hall conform to the 

present .tarn1arc1 specification for Portland Cement of the American Society 

for Te ting l\Iat.erials and the American tanc.lards A sociation and/or the 

Feueral Specifications Board, and no other Warranty is made in respect thereof. 
351 

Seller having no control over the use of cement will not, therefore, guarantee 

finished work in which it is used, nor shall the Seller be responsible for the 

condition of cement after deliYery to Buyer. Any charges incident to inspection 

or tests made by or on behalf of Buyer to determine compliance with specifications hall be paid by Buyer. 

Seller shall not be liable to Buyer for any delays in manufacturing, shipping, 

or delivering , aid cement, ca useu by fire, strikes, lockou,ts, differences with 

workmen, accidents, war, in urrection, inability to secure cars, coal, or other 

material, governmental interference or regulation, delays in transportation, or 

contingencies beyond Seller's control; ancl during the time of such delays Seller 

shall have the right to prorate among its Yaricu customers such cement as it 

may be able to manufacture and ship. 

Seller shall have the right, but ·hall not be obligated, to ship from any plant 

other than the one normally up]Jlying the delivery point specified herein. 

Bulk cement.-Shipments of bulk cement shall be invoiced and coll~ted for 

on a ba sis of track scale weights nearest to point of origin. 

0 


UNIVERSITY OF FLORIDA 

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