Approved Code No. 350 Registry No. 1039-10 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

TALC AND SOAPSTONE 

INDUSTRY 

AS APPROVED ON MARCH 21, 1934 

WE DO OUR PARl' 

I • , 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

( 

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Printing Office, Wa. hington, D.C., and by district offices of the Bureau of 

Foreign and Dome tic Commerce. 

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/_pproved Code No. 350 

CODE OF FAIR COMPETITION 

FOR THE 

TALC AND SOAPSTONE INDUSTRY 

As Approved on March 21, 1934 

ORDER 

CoDE oFF AIR CoMPETITION FOR THE TALC AND SoAPSTONE INDUSTRY 

An application having been duly made pursuant to and in full compliance with the provisions of Title I of the National Indu trial Recovery Act, approved June 16, 1933, for approval of a Code of Fair 

Competition for the Talc and Soapstone Industry, and hearings having been duly held thereon and the annexed report on said Code, containing findings with respect thereto, having been made and directed 

to the President: 

NOW, THEREFORE, on behalf of the President of the United 

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

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

1933, and otherwise; do hereby incorporate by reference said annexed 

report and do find that said Code complies in all respects with the 

pertinent provisions and will promote the policy and purposes of said 

Title of said Act; and do hereby order that said Code of Fair Competition be and it is hereby approved. 

Approval recommended: 

K. M. SIMPSON, 

HuGH S. JoHNSON, 

Adminisb'ator for Industrial Recorery. 

Division Administrator. 

Washington, D.C., 

MARCH 21, 1934. 

47765°----425-114----34 (287) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

SIR: The original code of Fair Con1petition for the Talc and Soapstone Industry was submitted on August 28th, 1933, by the National 

Association of Talc and Soapstone Producers, an unincorporated 

membership society organized in 1933, representing in excess of 90% 

of the known members of Industry and 90% of the volume of production. Several revisions of the Code were made prior to the Public 

Hearing which was held on November 21, 1933. The Code was 

revised during the recess of this hearing and submitted· in its present 

form for approval. Every person who requested an appearance was 

properly heard in accordance with statutory and regulatory requirements. 

The terms T:~Jc and Soapstone are used jointly in the definition of 

this Industry because Talc is present in. varying amounts in .all true 

substitutes, and because of their physical characteristics they have 

a ommon soapy feel. Talc and Soapstone, strictly spe-aking, are 

hydrated silicates of magnesium in varying proportions. Pyrophillite is also included within the products of Industry. Because of 

its physical characteristics it closely resembles Talc in color, luster 

and feel.and is emp~oyed as ~ .substitute for l?any of its products .. Talc1 1n commercw.l quantities occurs only rn areas of highly crystalline schists and other regional metamorphic rocks, The eonunercial 

deposits are confined chiefly to the Appalachian Mountain areas o£ 

the Atlantic States from New York to Georgia and to the mountainous 

belt of the Pacific Coast, notably in California and Washington. 

The uses of Talc are determined largely by its physical properties. 

Thus, its colloidal nature and its ~igh retention make it valuable as a 

paper filler. It is also used as a filler in paint n,nd other products. 

Its soapy feel and absence of grit render it peculiarly adaptable to the 

manufacture of toilet p·owders and cosmetics. Talc is employed com- mercially in many ways, but because of inherent differences in physical 

and chemical properties material from all deposits cannot be applied 

equally to all uses. 

Ground talc is used extensively as a filler in paint, paper, rubber, 

textiles and various other products. It is also employed for foundry 

facings, lubricants, and various toilet preparations, in cer-amics and 

in glass making, and also as a polishing agent. Large quantities of 

Low grade talc are used in the manufacture of composition roofing. 

Off-color talc is consuined in increasing amounts for rock-dusting 

coal mines. 

Certain grades of talc, because of their electrical resistance, and 

remarkable property of hardening under heat treatment, are used 

in the manufacture of electrical fittings, as bushings, block , tubes, 

disks, etc., and are sold under the trade name of Lava Products. 

Massive talc is also used in the manufacture of crayons and pencils. 

95% of the total talc output is sold in pulverized form. 

(288) 
289 

The pot ntialities f the Indu try ar proportionate to the grade of 

talc produc d and the rates of pay her tofore have b n in the arne 

proportion. The rates of pay which have been paid in the south 

have been as low as 7 7~¢ per hour in th Georgia se tion, and 15¢ 

per hour ha been a con1mon rate of pay in Virginia. 

The Indu try in general may be looked upon as a v ry rrrinor a tivity a evidenced by the fact that in 19 1 there wer 1 3,752 short 

ton , alued at $1, 52,472 produced in the United tate - more 

than half of the value of the talc mined in 1931 was produced in the 

tate of New York. The financial status of the Industry is in a 

most precarious condition. The low wage rates in the South, under 

the terms of this ode, have been increa ed to 25¢ per hour minimum 

for labor above ground, and 30¢ per hour minimum for labor underground; and 35¢ per hour minimum above ground and 40¢ per hour 

minimum underground, in the North. The maximum of 40 hours 

per week as outlined in this Code, and the new minimum rates per 

hour for the Industry, as well as the provision for adjustment of 

wages above the minimum, should result in a further spreading of 

not only the available work among the workers, but al o an increased 

consumer purchasing power. 

ARTICLE I. Purpose.-States the purpose of the Code. 

ARTICLE II. D ifinitions.-Accurately defines specific terms applicable to the Talc and Soapstone Industry as used in this Code. 

ARTICLE III. Hou-rs.-The maximum hours are limited to forty 

hours per week for employees engaged in the mining and processing 

of products and labor incident thereto, except that during six weeks in 

any six month period of any calendar year in order to meet seasonal 

peak demands, employees may be permitted to work not more than 

48 hours per week and not more than eight hours in any one day, with 

the proviso that time and one half shall be paid to any employee so 

employed for hours worked in excess of 40 hours per week or 8 hours 

per day. Office, salaried and other employees not covered by the 

above who receive less than $35.00 per week shall not be permitted 

to work in excess of 40 hours in any one week, except that they may be 

permitted to work 48 hours in any one week in any one month period. 

Watchmen shall be permitted to work either 84 hours in a two week 

period or 56 hours in a one week period, provided, such employees 

shall have at least one day's rest in every seven. Employees engaged 

in an executive, managerial or supervisory capacity who receive not 

less than $35.00 per week, and those engaged in emergency repairs or 

maintenance, where the safety of life, or health, or the protection of 

property demands longer hours, are not subject to hourly limitations. 

o employee shall be permitted to work more than six days in any 

seven day period. 

ARTICLE IV. The minimum wages for employees ngaged in the 

mining and the pro e ing of products or any labor incident th reto 

shall not b paid less than 40¢ per hour underground and 35¢ per hour 

abo ground in the northern zone, and 30¢ per hour underground and 

25¢ p r hour above ground in the southern zone. The minimum 

rat for f n1ale mploy shall O% of th r p tiv minimum 

abov -ground rat for th north rn and southern zon . o per on 

mpl ed in cleri al or offi work hall b paid l than at th rate 

of $1 r.:. 0 p r w ek, x pt that ffi boy and girl and m ng r 

may b paid 0% f th tablL h d minimmn f r ffi mpl T es. 
290 

The established minimum rate of pay for work performed for any pay 

period shall apply, irrespective of whether an employee is actually 

compensated on a time-rate, piecework or other basis. Provision is 

made for the employment of handicapped persons. Provision is also 

made for the adjustment of wages above the minimum fixed in this 

Code if such adjustment has not been 1nade prior to the approval of 

this Code. 

ARTICLE V. General Labor Provisions.-Provides that no employer 

shall employ any person under 16 years of age, and that no person 

under 18 years of age shall be employed except in clerical, office, sales, 

technical and engineering departments. This Article also sets forth 

mandatory provisions respecting the rights of employees to organize 

and bargain collectively. It also provides for matters having to do 

with reclassification of employees, standards for safety and health, the 

observance of state laws and the posting of complete copies of this 

Code so that they are accessible to employees. 

ARTICLE VI. Admim'str·ation.- Establishes a Code Authority consisting of six members to be selected by a fair method of election so as 

to be truly representative of the Industry, subject to the approval of 

the Administrator. In addition to the six members above named there 

may be one or three representatives without vote, and without expense to the Industry, to be appointed by the Administrator for such 

terms as he may specify. In addition to the organization of the Code 

Authority, the powers and duties thereof are outlined in this Article. 

ARTICLE VII. Marketing and Trade Practice Rules .-Sets forth 

Trade Practices for the Industry. 

ARTICLE VIII. Export Trade.-N o provision of this Code relating 

to terms of selling, shipping or marketing shall apply to export trade, 

or sales or shipments for export trade or transactions in the foreign 

commerce of the United States. 

ARTICLE IX. Modijication.- This Code and all the provisions thereof 

are expressly made subject to the right of the President in accordance 

with Sub-section (b) of Section l 0 of the Act, from time to time to 

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

under said Act. 

ARTICLE X. Monopolies.-No provision of this Code shall be so 

applied as to permit monopolies or monopolistic practices or to eliminate, oppress, or discriminate against small enterprises. 

ARTICLE XI. Price Increases.-This Article indicates that the 

increase in selling prices, so far as possible, will be limited to actual 

increases in seller's costs. 

ARTICLE XII. Termination.-This Code and all supplementary 

provisions thereto shall expire on June 16, 1935, or at the earliest 

date prior thereto on which it shall be declared that the emergency 

recognized by Title I of the Act has ended. 

ARTICLE XIII. Effective date.-·This Code shall become effective 

beginning ten days after its approval by the Administrator. 

The 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 rna t ter; 

I find that: 

(a) Said Code is well designed to promote the policies and purposes 

of Title I of the National Industrial Recovery Act, including removal 

of obstructions to the free flow of interstate and foreign commerce 
291 

which trnd to diminish the amount thereof and will provide for the 

general welfare by promoting tho organization of Indu try for the 

purpose of cooperative action among the trade groups, by inducing 

and maintaining united action of labor and management under 

adequate governmental san tions and supervision, by eliminating 

unfair competitive practice , by promoting the fullest po sible utilization of the pre ent productive capacity of industries, by avoiding 

undue restriction of production (except as may be temporarily required), by increasing the con umption of indu trial and aO'ricultural 

products through increasing purchasing power, by reducing and 

relieving unemployn1ent, by improving standards of labor, and by 

otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 employees; and is not classified by me as a major Industry. 

(c) The Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation 

Sub-section (a) of Section 3, Sub-section (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant association 

is an industrial association truly representative of the aforesaid 

Industry, and that said association imposes no inequitable restrictions on admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 

or monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 

small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have not 

been deprived of the right to be heard prior to approval of said Code. 

For these reasons, therefore, this Code has been approved. 

Respectfully, 

MARCH 21, 1934. 

HuGH S. JoHNSON, 

Administrator. 
CODE OF FAIR COMPETITION FOR THE TALC AND 

SOAPSTONE INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I ·of the National Industrial 

Recovery Act, this Code is established as a Code of Fair Competition 

for the Talc and Soapstone Industry, and its provisions are the 

standards of fair competition for such Industry and are binding upon 

every member thereof. 

ARTICLE II- D EFINITIONS 

WhereveT used in this Code or any supplement appertaining thereto} 

the tern1s enmnerated in this AI'ticle shall have the meanings herein 

defined unless the context shall otherwise clearly indicate. 

SECTION 1. The term "President" n1.eans the President of the 

United States of America. . SEcTION 2. The term "Act" means Title I of the National Industrial Recovery Act. SEcTION 3. The term "Administrator" means the Administrator 

for Industrial Recovery. 

SEcTION 4. The term "Tale and Soapstone Industry" or "Industry " as used herein means the mining and/or milling and/or shaping 

and/or sawing of talc and soapstone and/or the original sale of such 

industry products by a member of Industry either by himself or by 

his agent which includes without limitation any person or corporation 

occupying a subsidiary or controlling relationship or one of comn1on, 

mutual or joint mvnership or control with a member of Industry. 

(a) The term "Industry Products" as used herein includes crude 

talc and/or soapstone, crushed talc and/or soapstone, pulverized talc 

and/or soapstone, sawed and fabricated talc and/or soapstone, and 

for the purposes of this Code shall also include like products of 

talcose materials including pyrophyllite. 

SECTION 5. The term "Member of the Industry" includes anyone 

engaged in the Industry either as an employer or on his or its own 

behalf. 

SECTION 6. The term "E1nployee" means and includes anyone 

engaged in the Industry in any capacity receiving compensation for 

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

compensation, except a member of the Industry. 

SECTION 7. The term "Employer" means and includes anyone by 

whom any such employee is employed or compensated. 

SECTION 8. The term "Southern Zone" as used herein shall include 

the States of Virginia, Tennessee, North Carolina, Georgia and 

Alabama. SECTION 9. The term "Northern Zone" as used herein shall include 

all other territory of the United States except as defined in "Southern 

Zone". 

(292) 
293 

SECTION 10. The tenn "A . ociation" as u ed herein means The 

National A o iation of Talc and oap t n Produc rs, an unincorporated membership oci t wh e prin ipal pl ce of business is 

ocated at Chester, V rmont. 

SE TIO 11. Th t rm " e r tary" shall mean the cretaryTrea ureroftheNational ci tionofTal nd oap toneProducers. 

RTI LE III-HouRs OF LABOR 

SECTION 1. ~iaximum Hours.-On and after the eff ctiYe date of 

thi Code, no employ e shall be permitted to work in exce s of forty 

hours in any one week or eight hours in any twenty-four hour period 

except a herein oth rwise provided. A normal work day hall not 

exceed eight hours. 

SEcTIO 2. Hour for Clerical and Office Employees.-On and after 

the effective date of tbis Code, no person employed in clerical or office 

work shall be permitted to work in excess of forty hours in any one 

week, except that during any one week in any one month period uch 

employee shall be permitted to work a maximum of forty-eight hours 

in any such week. A normal work day shall not exceed eight hour . SECTION 3. Exceptions as to Hours.-The limitation as to hours of 

labor as specified in Sections 1, 2 and 4 of this Article III shall not 

apply to the following: 

(a) To employees engaged in emergency maintenance, or emergency 

repair work, involving breakdown or the protection of life or property; 

provided, that in such special cases not less than one and one-half 

times the normal wage rate for any employee so employed shall be 

paid for all hours worked in excess of forty hours in any one week, 

or eight hours in any one day; provided, that this overtime provision 

shall not apply in cases of catastrophies involving loss of life or 

property. Such special cases, however, shall be reported to the 

Code Authority. 

(b) To persons engaged in a managerial, executive or supervisory 

capacity: who receive not less than $35.00 per week in the Northern 

Zone and not less than $30.00 per week in the Southern Zone, and to 

outside sales or serviee men. 

(c) To ·watchmen, who, according to the nature of their respon j_ 

bilities, may be permitted to work not more than eighty-four hours 

in any two week period or fifty-six hours in any one week, provided 

that such employees shall have at least one day's r st in each seven 

day period. 

(d) To emploj ees engaged in the preparation, care and maint nance 

of machinery and production facilities, stock and sbipping clerk , and 

truckmen engaged in out ide delivery- and pick-up service who may 

be granted a tolerance of 10% additwnal hours over the forty hour 

in any one ·week and may be permitted to work not more than fortyfour hour in any one week. 

(e) To production employees, mechanical worker , or arti an wh , during any period in wbich a concentrated demand upon any clivi ion 

of the Indu try hall place an unu ual and temporary burd n for 

pr duction work upon its facilities, or to meet sea onalJ or peak 

requirem nt , or em rgcncie , may be permitted to work n t more 

than f rty-eight hour per week and not more than ight h urs in 

any one da in not more than ix week in ix month of any al ndar 

4776~ ----425-114----34----2 
294 

year, pro·vided that not less than time and one-half the normal rate 

shall be paid to any employee so employed for hours worked in excess 

of forty hours per week, or eight hours per day. All overtime worked 

in such peak periods shall be reported to the Code Authority. 

(f) To skilled workers in continuous processes, the interruption 

of which would unavoidably reduce production because of demands 

inherent and peculiar within the process itself, provided, however, 

that such employees in such cases shall not work more than fortyeight hours in any one week, and provided that in such sp·ecial cases 

at least one and one-half times the nonnal wage rate shall be paid 

to any employee so employed for hours worked above forty hours 

per week. Provided that in cases where an employee is acting in 

temporary relief for a fellow employee in continuous processes the 

overtime provision hereinabove set forth shall not apply. Such 

special cases as set forth hereinabove shall be reported to the Code 

Authority. . 

(g) To hoist men, power house men, or pump men; provided the 

total working hours of such employees shall not exceed forty-eight 

hours in any one week. 

SEcTION 4. Standard Week.-No employee shall be permitted to 

work more than six days in any seven day period. 

SECTION 5. Employment by Several Employers.-No employer shall 

knowingly permit any employee to work for any time which, when 

totalled with that already performed with another employer, or 

employers, in this Industry, or otherwise, exceeds the maximmn 

permitted herein. 

ARTICLE IV-WAGES 

SECTION 1. Minimum Wages.-On and after the effective date of 

this Code, no employee, except as herein otherwise specified, shall be 

paid in any pay J?eriod less than at the rate of 40¢ per hour "tmderground" and 35¢ per hour "above ground" in the Northern Zone 

and 30¢ per hour "underground" and 25¢ per hour "above ground" 

in the Southern Zone. The minimum rates for female employees 

shall be 80% of the above respective minimum "above ground" rates 

for the Northern Zone and Southern Zone. The minimum rates 

herein provided shall be construed as hiring rates applying to totally 

unskilled or common labor. Other classes of labor shall be cornpensated at rates above such minimum. Minimum wages which 

were in effect. prior to date of approval of this Code, which were 

above the minimum specified shall in no case be reduced. 

SECTION 2. Clerical and Office Employees.-N o accounting, clerical, 

sales or service employee working on a weekly basis in any office 

shall be paid less than at the rate of $15.00 per week; provided, however, that office boys and girls and messengers may be paid at a rate 

not less than 80% of such minimum; and provided further that the 

number of such boys and girls and messengers so paid shall constitute 

not more than 5% of the total number of such employees of any office 

of any one employer, but in any case each employer shall be entitled 

to at least one such employee. · SECTION 3. Piecework Compensation-Minimum Wages.-This Article establjshes a minimum rate of pay for any pay period which shall 

apply, irrespective of whether an employee js actually compensated 

on a time-rate, piecework, or other basis. 
295 

SECTION 4. Female Employees.-Female employees performing substantially the same work as male employees shall receive the same 

rate of pay as male employees, and when they displace male employees 

they shall receive the same rate of pay as the men they displace. 

SEcTION 5. Wages Ab01.:e the l\1inimum.-Within 60 days from the 

date of approval of this Code an adjustment of wage above th~ 

minimum provided in this Code shall be made by employers who 

have not heretofore made such adjustment. Such adjustment shall 

mean that differentials in compensation between employees receiving 

the minimum wage and employees above the minimum wage existing 

prior to the date of approval of this Code shall be maintained· provided, however, that in no event shall rates of pay be reduced. Each 

member of the Industry shall make a report of such adjustment 

whether made prior to or subsequent to date of approval of this 

Code, to the Code Authority. 

SECTION 6. Handicapped Persons.-A person whose earning capacity is limited because of age, physical or mental handicap, or other 

infirmity, may be employed on light work at a wage below the minimum established by this Code, if the employer obtains from the state 

authority, designated by the United States Departrnent of Labor, a 

certificate authorizing such person's employment at such wages and 

for such hours as shall be stated in the certificate. Such authority 

shall be guided by the instructions of the United States Department 

of Labor in issuing certificates to suc.h persons. Each employer shall 

file monthly with the Code Authority a list of all such persons employed by him, showing the wages· paid to, and the n1aJ..rimum hours 

of work for such employee. 

SECTION 7. Payment of Wages.-An employer shall make payment 

of all wages in lawful currency or by negotiable check therefor payable 

on demand. These wages shall be exempt from any payments for 

pensions, insurance, or sick benefits other than those voluntarily paid 

by the wage earners, or required by State Laws. Pay periods for 

wages shall be at least semi-monthly, and for salaries at the end of 

every month. Employers shall agree not to withhold wages. 

ARTICLE V-GENERAL LABOR PROVISIONS 

SECTION 1. Child labor.-On and after the effective date of this 

Code, no person under 18 years of age shall be employed in the Talc 

and Soapstone Industry except in clerical, office, sales, service, technical and engineering departments, and no person under 16 years of 

age shall be employed in any capacity. In any state an employer 

shall be deemed to have complied with this provision as to age of 

employees if he shall have on file a certificate or permit duly signed 

by the Authority of such state empowered to issue en1ployment or 

age certificates or permits showing that the employee is of the required 

age. 

SECTION 2. Provisions of the Act.-(a) Employees shall have the 

right to organize and bargain collectively through representatives of 

their own choosing, and shall be free from the interference, restraint, 

or coercion of employers of labor, or their agents, in the designation 

of such representatives or in self-organization, or in other concerted 

activities for the purpose of collective bargaining or other mutual aid 

or protection. 
296 

(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, and 

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

minimum rates of pay, and other conditions of emplovment approved 

or prescribed by the President. "' 

SECTION 3. Reclassification of Employees .-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. Standards for Safety and Health.-Every employer 

shall make reasonable provision for the safety and health of his 

employees at the place and during the hours of their employrnent. 

Standards for safety and health for this Industry shall be submitted 

to the Administrator by the Code Authority within six months after 

approval of this Code. 

SECTION 5. State Laws.-No provision in this Code shall supersede 

any State or Federal Law which imposes on employers more stringent 

requirements as to age of employees, wages, hours of work, or as to 

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

or fire protection, than are imposed by this Code. 

SECTION 6. Posting.- All employers shall post and keep posted 

complete copies of this Code, and all amendments thereto, in con- spicuous places accessible to employees. 

SECTION 7. Company Town and Stores.- Employees other than 

maintenance or supervisory men, or those necessary to protect property, shall not be required as a condition of employment, to live in 

homes rented from the employer. No employee shall be required, 

as a condition of employment, to trade at a store owned or specified 

by an employer. 

ARTICLE VI-ORGANIZATION, PowERS AND DuTIES OF THE ConE 

AuTHORITY 

SECTION 1. Organization and Gonstitution.-A Code Authority to 

administer this Code is hereby constituted and shall consist of six 

members. Five of such members shall be voting members. Two of 

such voting members shall be selected by members of the Industry 

in the Southern zone to represent such zone, and shall be truly repre- sentative of the members of the Industry in such zone. Two such 

voting members shall be selected by members of the Industry in the 

Northern zone by n1embers of the Industry in such zone and shall be 

truly representative of the members of the Industry in such zone. 

One other such member shall be selected by the members of the entire 

Industry, and shall be representative of the Industry as a whole . The Secretary-Treasurer of the National Association of Talc an& 

Soapstone Producers shall be Secretary and a non-voting member of 

the Code Authority. The election of all members to the Code Au- thority shall be by a fair and equitable method of selection to be 

approved by the Administrator. The Code Authority shall make 

investigations as to the functioning and observance of any of the 

provisions of this Code at its own instance or upon the complaint 

of any person affected, and shall report the result thereof to the 

Administra t()r. 
297 

SE"TION 2. In addition to the above men1ber hip th rc ma-: be not 

more than thr e additional member , w-ithout vote and '.-. ithout 

expen e to the Indu try to be appointed by the Admini trator to ~ rYe 

for a si.x month or a twelve month term from date of appointrnent 

he may pecify. 

SECTION 3. Each trade or industrial as ociation dire tly or indi..rcr·tly 

participating in the selection or a tivitie of the ode Authorit hall, 

(1) impose no inequitable restrictions on member hip, a.nd (2) submit 

to the Administrator true copie of its Article of s oci tion, By- La"?.- , Rules and Regulation , and any amendment wh n made 

thereto, together ''-ith u h oth r information a to n1embership, 

organization and a tivities as the Administrator may deem ne e ary 

to effectuate the purposes of the Act. 

SECTION 4. In ord r that the Code Authority hall at all times be 

trulv representative ot the Industry and in other respe ts comply ,\-ith 

the provisions of the Act, the Administrator may pre cribe such 

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

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

respects comply with the provisions of the A t, may require an appropriate modification in the method of selection of the Code Authority. 

SECTIO 5. Members of the Industry shall be entitled to participate 

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

participate in the selection of the members thereof b.v assenting to and 

complying with the requirements of tlils Code and sustaining their 

reasonable share of the expenses of its administration. Such reasonable share of expenses of administration shall be determined by the 

Code Au hority, subject to review by the Administrator, on the basis 

of volume of business and/or such other factors as may b deemed 

equitable. 

SECTION 6. Nothing contained in this Code shall constitute the 

members of the Code Authority partners for any purpose. Nor shall 

any member of the Code Authority be liable in any manner to anyone 

for any act of any other member, officer, agent, or employee of the 

Code Authority. Nor shall any member of the Code Authority, 

exercising reasonable diligence in the conduct of his duties hereunder, 

be liable to anyone for any action or mnis ion to act under this Code, 

except for his own wilful misfeasance or nonfeasance. 

SECTION 7. Powers and Duties.-Subject to such rules and regulation as may be issued by the Administrator, the Code Authority 

shall have the following further power and duties, the .xercise of 

whi b shall be reported to the Administrator and shall e subject 

to his right, on review, to disapprove any action taken by the ode 

Authority. If the Administrator shall determine at any time that 

any a tion of the Code Authority or any agen y thereof may be unfair 

or unjust or contrary to the public interest, the dministrator may 

require that su h a tion be uspended to ufl· rd an opportunit for 

in estigation of the merit f u h a tion and fm·ther on id ration 

by u h de Authmity o1· ao·en y p ndino- fin al a tion wbi h shall 

not be ff ti ve unl s th Admini tra r appr Y · r unl ~ h shall 

fail to di appro e aft r hirt d11 s notice lilm f intc tion t 

pro eed with u h a tion in its origin a 1 or m lifi f rm. 

(a) To in ure th . - cuti n 0f t pr vi i n of bi d nnd pr - vide for he complianc of th Indu try with th pro · i n f he 

Act subj ct t u h rule and regulati ns as th Admini trator may 

prescribe. 
298 

(b) Tc adopt By-Laws and Rules and Regulations for its procedure 

and for the administration and enforcement of the Code. The Code 

Authority shall promptly furnish to the Administrator true copies 

of the By-Laws, Rules and Regulations adopted pursuant to thjs 

paragraph. 

(c) To obtain from members of the Industry through a confidential 

agency such statistical information and reports as are required for the 

administration of the Code and to provide for submission by members 

of the Industry of such statistical information and reports as the 

Administrator may deem necessary for the purposes recited in Section 

3 (a) of the Act, which information and reports shall be submitted by 

members of the Industry to such Federal and State agencies as the 

Administrator may designate; provided, that nothing in this Code 

shall relieve any member of the Industry of any existing obligations 

to furnish reports to any government agency. No individual reports 

shall be disclosed to any other member of the Industry or any other 

party except to such governmental agencies as may be directed by the 

Administrator. . (d) To use such trade associations and other agencies as it deems 

proper for the carrying out of any of its activities provided for herein, 

provided that nothing herein shall relieve the Code Authority of its 

duties or responsibilities under this Code and that such trade associations and agencies shall at all times be subject to and comply with the 

provisions hereof. 

(e) To make recommendations to the Administrator for the coordination of the administration of this Code with such other Codes, if any, 

as may be related to the Industry. 

(f) To cooperate with the Adrninistrator in regulating the use of 

any NRA insignia solely by those members of the Industry who have 

assented to, and are complying with, this Code. 

(g) To recommend to the Administrator further fair trade practice 

provisions to govern members of the Industry in their relations with 

each other or with other Industries, and concerning control of production through voluntary agreement and to recommend to the Administrator measures for Industrial planning, including stabilization 

of employment. 

(h) The Code Authority shall cause to be formulated an accounting 

system and methods of cost finding and/or estimating capable of use 

by all members of the Industry. After such system and methods 

have been formulated, full details concerning them shall be made 

available to all members. Thereafter, all members shall determine 

andjor estimate costs in accordance with the principles of such 

methods. 

ARTICLE VII-MARKETING AND TRADE PRACTICE RuLES 

SECTION 1. Price Schedule.-(a) Each member of the Industry 

within twenty days after the effective date of this Code shall file 

with the Code Authority the price or prices and terms and conditions 

of sale at which he is offering his products for sale, which products are 

in direct or indirect competition with other members of the Industry; 

this original filing to become effective on the date of such filing. 

The Code Authority forthwith on such original filing shall notify all 

known members of the Industry of the contents thereof and shall 
299 

make the same available to the trade. Any member of the Indu try 

desiring to change the price or pri e of hi product and term , nd 

conditions of sale shall notify the ode Auth rity of such intention by 

filing hi revised schedule, which shall become effective immediately 

thereafter and shall be distributed t the known member of the 

Industry and be made available to th trad . (b) Such price schedules shall in lude terms of payment, l ngth of 

bookings, or contracts and f.o.b. point of 01-icrin .. nd such other provisions as may ben ces ary to fully inform the trade of all conditions 

of sal . (c) The Code Authority shall prescribe rules and regul tion proiding for the sale of distress merchancli e, urplus inventories, 

products not up to specification, and to meet the competition of 

other materials competitive with the products of tbis Industry, 

which shall become effective upon approval by t.he Administrator. 

No men1ber of the Industry shall sell any goods of any of the classes 

above described for the purpose of violating the provisions of tbis 

Code or of defeating the purposes of the Act, except in full compliance \vith such rules and regulations. 

SECTION 2. Trade Practice Rules .-The following trade practice 

are declared to constitute methods of unfair competition between 

members of the Industry, and no member of the Industry shall u e 

or engage in any of them1 directly or indirectly, through any officer, 

agent, or employee. Engaging in any one of such trade practices or 

of any other practices which hereafter may be declared to be unfair 

methods of competition by the Code Authority, approved by the 

Administrator, shall be deemed a violation of this Code. 

(a) Failing to file price schedules or changes therein, as reqwred by 

Section 1 of this Article. 

(b) Selling of any Industry product by a Member of the Industry 

at a price below the open, filed or publicly announced price schBdule 

of such member, or to deviate from the conditions of sale contained 

in such schedules filed pursuant to Section 1 of this Article. 

(c) Selling products of the Industry below cost of produc.tion as 

determined pursuant to Sub-Section (h) of Section 7 of Article VI; 

provided, however, that a member of the Industry shall be permitt d 

to file prices and sell at such filed rates in order to meet the filed prices 

of a competitor, and provided further that sales necessary to meet the 

competition of other materials with Talc and oapstone, or ales 

neces ary in order to di pose of distress merchandise, may be made at 

other than filed pri es pursuant to the provi ions of Section 1 (c) of 

this Article VII. Full information concerning uch sales shall be 

reported to the ode Authority and shall be giv n to all member~ of 

the Industry. 

(d) Paying or allowing rebates, refunds, commi ion , redit r 

unearned discounts, wh ther in the form of 1noncy or otherwi , or 

the extens]on of special servic -s or privileg s to ertain pur ha r 

which are not extended to all purchasers under similar cir umstan e , 

for the purpose or ' ith the effect of violating the provi ions of this 

ode. 

(e) Pre-paying fr ight harg s with the int nt or ff t of grantin()' 

discriminatory r dit allowanc . (f) Allowing in any form, adju tm nts, i ount r dits r 

refunds for the purpose or with th ff ct of alt riner retr a tiv 1 the 

price quoted, in such manner a to reat pri di crimina ion. 
300 

(g) Pre-dating or post dating any invoice or sales contract, except 

to conform to a bona fide agreement entered into on the pre-date. 

(h) Repudiating a contract entered into in good faith when the 

purpose or effect of such repudiation is to create an unfair price 

advantage for a member of the Industry. 

(i) Inducing or attempting to induce the breach of an existing 

contract between a competitor and his customer or source of supply; 

or interfering with or obstructing in any manner the performance of 

the contractual duties or services of another. 

(j) Requiring that the purchase or lease of any products or equipment be a prerequisite to the purchase or lease of any other products 

or equipment. 

(k) Procuring, otherwise than with the consent of any member of 

the Industry, any information concerning the business of such member 

which is properly regarded by it as a trade secret or held as confidential 

within its organization, other than information relating to the violation of any provision of this Code. 

(l) Knowingly shipping a lower grade of material than is described 

in the contract or order. 

(m) Deviating from the published and previously established 

specifications, for the purpose of influencing a customer or prospective 

customer. 

(n) Selling through any agent other than an exclusive agent, when 

an exclusive agency exists, without the consent of such exclusive 

agent, or selling or attempting to sell through more than one agent, 

except \vith the full knowledge of each agent. 

(o) 1aking any contract with a purchaser to protect such purchaser against a decline in price. 

(p) Knowingly publishing advertising, whether printed, radio, 

display or otherwise, which is misleading or inaccurate in any material 

particular; or misrepresenting any goods or products of the Industry 

as to use, trade-mark, grade, quality, quantity, origin, size, substance, 

character, nature, finish, material, content, preparation, or making 

any misrepresentation as to credit terms, values, policies, services or 

the nature or form of the business conducted. 

(q) Branding, marking or packing any goods or products in any 

manner, which is intended to or does deceive or mislead purchasers 

with respect to brand, or trade-mark, grade, quality, quantity, origin, 

size, substance, character, nature, finish, material, content, or preparation of such goods or products. 

(r) Knowingly publishing advertising which refers inaccurately in 

any material particular to any competitors or their goods, prices, 

value:3, credit terms, policies or services. 

(s) Knowingly \vithholding from, or inserting in any quotation or 

invoice, any statement which makes it inaccurate in any material 

particular. 

(t) Publishing or circulating unjustified or unwarranted threats of 

legal proceedings, having the effect of harassing competitors or 

intimidating their customers. 

(u) Giving or permitting to be given, or directly offering to give 

anything of 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 agent or the represented party, without the knowledge of such 
301 

employer, prin ipal, or party. Thi omm r ial bribery proVI Ion 

shall not be con tru d to prohibit fr e and g neral di tribution f 

arti 1 commonly u ed for ad erti ing x pt o far as such arti l 

ar actually u ed for omm r i 1 bribery as her inabo ve defi ned. 

ARTI LE VIII-ExPORT TRADE 

No pro\i ion of thi ode relating to terms of lling, shipping, or 

marketing shall apply to .·port trade or ales or hipmcnt for exp rt 

trade, or transactions in the for ign commerce of the United t ate . 

ARTICLE IX- MODIFICATION 

1. This Code and all the provisions thereof are expre sly made ubject to the right of. the President, in accordance with the provi ions f 

sub-section (b) of Section 10 of the Act, from time to time to anc 1 

or modify any order, approval, license, rule, or regulation issued under 

said Act, and specifically, but without limitation, to the right of the 

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

2. Such of the provisions of this Code as are not required to be included therein by the Act may, with the approval of the Administrator 

be amended as provided in Section 3 hereof, in such mann ')r as may 

be indicated by the needs of the public, by changes in circumstances, 

or by experience; all the provisions of this Code, unless so modified or 

eliminated, shall remain in effect until the expiration date of Title I 

of the Act. 

3. An amendment may be proposed by any interested party either 

to the Code Authority or directly by or to the Ad1ninistrator. All 

proposed amendments shall be referred to the Code Authority, who 

shall giv-e members of the Industry an opportunity to be heard 

thereon, and thereafter the Code Authority may make such recommendations thereon as is de med proper, provided, however, that 

when approved by the Administrator as necessary to effectuate the 

policies of the Act, after sueh notice and hearing as he may pre crib , any propo ed amendment shall thereupon become effecti...-e as a part 

of this Code. 

4. The Code Authority may make recommendations for modifications of this Code to the administration which hall become effective 

as a part of this Code, upon approval by the Administrator, after 

such notice and hearing as he may prescribe. 

ARTICLE X - J\1oNOPOLIEs 

No pro vi ion of this Code shall be so applied as to promote monopolies or monopolistic practices, or to eliminate, oppres , or discriminate 

again t small enterprises. 

ARTI LE XI- PRICE INCREA ES 

Wh rea the poli y of the ct to in r a e r al purchasin()' pow r 

will be made more di ult f consummation if prices of good and 

services increase as rapidly as wages, it i r cogniz d that pri increa e xcept such as may be required to meet individual t should 
302 

be delayed, but when made such increases should, so far as possible, 

be limited to actual additional increases in the seller's costs. 

ARTICLE XII-TERMINATION 

This Code and all supplementary provisions thereto shall expire on 

June 16, 1935, or on the earliest date prior thereto on which the 

President shall, by proclamation, or the Congress shall, by joint 

resolution, declare that the emergency recognized by Title I of the 

Act· has ended. 

ARTICLE XIII-EFFECTIVE DATE 

This Code shall become effective beginning ten (10) days after its 

approval by the Administrator. 

Approved Code No. 350. 

Registry No. 1039-10. 

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UNIVERSITY OF FLORIDA 

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