Approved Code No. 158 Registry No. 1399-26

NATIONAL RECOVERY ADMINISTRATION

CODE OF FAIR COMPETITION

FOR THE

STONE FINISHING MACHINERY

AND EQUIPMENT INDUSTRY

AS APPROVED ON DECEMBER 15, 1933

BY

PRESIDENT ROOSEVELT

MEMBER

R

U.S.

WE DO OUR PART

1. Executive Order

2. Letter of Transmittal

3. Code

UNjTED STATES

G40VERNME T PRINTING OFFICE

WASHINGTON: 1933

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(n)
Approved Code No. 158

CODE OF FAIR COMPETITION

FOR THE

STONE FINISHING MACHINERY AND

EQUIPMENT INDUSTRY

As Approved on December 15, 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 Stone Finishing Machinery and

Equipment 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, Frankin D. Roosevelt, President of the

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

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

otherwise, do adopt and approve the report and recommendations,

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

of fair competition be and it is hereby approved.

FRANKLIN D. ROOSEVELT.

Approval recommended:

HUGH S. JoHNSON,

Administrator.

Ti WHrrE HousE, December 15, 1933.

____ ____ 3(129) 2600*-244-158--33
DECEMBER 0, 1933.

THE PRESIDENT

The White House.

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

Stone Finishing Machinery and Equipment Industry, the hearing

having been held in Washington, November 20, 1933, in accordance

with the provisions of the National Industrial Recovery Act.

PROVISIONS AS TO HOURS AND WAGES

Factory workers are limited to 8 hours per day and 40 hours per

week, except during peak periods, when they may work not more

than 48 hours per week in any 6 weeks in any 6 months' period.

Time and one half will be paid for all hours in excess of 8 per day

or 40 per week. A tolerance of 10 percent over the 40 hours' maximum is permitted for employees engaged in preparation and care

of plant, machinery, and production facilities, and for stock and

delivery employees for six weeks in any six months' period.

The above limitations as to hours do not apply to employees in

managerial or executive positions, outside service employees, travelling salesmen, or employees engaged in emergency maintenance or

emergency repair work. Outside service employees and emergency

maintenance and emergency repair employees receive time and one

half over 8 hours per day or 40 hours per week.

The minimum wage Vor factory employees is 40 cents per hour.

No distinction in wage rates will 'be made between male and female

employees. Adjustment of wage rates above the minimum will

be made.

A maximum of 40 hours per week is provided for clerical employees and the minimum wage will be in accordance with the President's Reemployment Agreement. Salaries now higher than the

minimum will not be reduced because of the reduction in hours provided in the Code.

Office boys and girls and messengers will be paid at not less than

80% of the minimum for clerical employees, and the number of such

employees, together with apprentices will not exceed 5% of the total

number of employees of any employer.

CHILD LABOR

The minimum age will be 16 years, and no person under 18 will be

engaged in any hazardous occupation.

ECONOMIC EFFECT OF THE CODE

This industry produces stone-sawing machines and other machines

and equipment for finishing granite, marble, and other building stone

(130)
131

after the stone has been freed from the quarry bed. It has suffered

severely from lack of building activity, and its sales are only about

one third of the 1929 total of $6,000,000. However, the industry has

retained 46% of the number of employees it employed in 1929, or a

present total of about 500.

The reduction in the hourly schedule from approximately 50 hours

Per week to 40 hours as provided in the Code increases employment

ess than 5 per cent because of the above-mentioned program of work

sharing, but with any increase in building activity it is expected

that an immediate reemployment of workmen will be effected.

FINDINGS

The Administrator finds that:

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

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

thereof; and that

(b) The applicant group imposes no inequitable restrictions on

admission to membership therein and is truly representative of the

Stone Finishing Machinery and Equipment 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.

Respectfully,

HUGH S. JOHNSON,

Administrator.
CODE OF FAIR COMPETITION

FOR THE

STONE FINISHING MACHINERY AND EQUIPME

INDUSTRY

ARTICLE I-PURPOSE

To effectuate the policies of Title I of the National Indust

R

covery Act, the following provisions are submitted as a 

Fair Competition for the Stone Finishing Machinery and Eq

Industry, and upon approval of the President shall be the s

of fair competition for this Industry.

AIrrICLE II-DEFINITIONS

The following words are used in this Code with the mean

forth:

a. " Stone Finishing Machinery and Equipment Indust

" The Industry " is defined to mean the manufacture for sa

machinery, tools, equipment, accessories, and products applit

the process of finishing granite, marble, and free stones af

stones have been freed from the quarry bed; also applicabl

t

process of finishing precast or artificial stone except such ma

tools, equipment, accessories, and products as are specifici

cluded within any other basic Code of Fair Competition w

h

been or may be approved by the President; also the dre

sharpening of pneumatic and hand chisels, quarry drills, and f

tools exclusively used in processing granite, marble, freesto

artificial stones.

(b) "Association " shall mean Allied Stone Equipment & 

Association.

(c) "Employee "-any person engaged in any phase of th

I

try in any capacity in the nature of employee, irrespective 

t

method of payment of his compensation.

(d) " Employer "-anyone for whose benefit such an emp

i

so engaged.

(e) " Member of the Industry "-any person engaged in th

I

try either as an employer or on his own behalf, who shall be 

to manufacture sories, in this (f) skilled (g) "Apprentice "Act Code. and operations. supplies, and "--The of stoneworking "-a National person wh Industrial is having machinery, (132) being no trained Recovery previous tools, to Act become equipmentexperienccoita
133

(h) " The President "-The President of the United States.

i) "Administrator "-The Administrator of Title I oC the National Industrial Recovery Act.

(j) " Consumer "-A purchaser for actual or direct use.

ARTICLE III-TOURS

(a) No employee, except as hereinafter provided in exceptions, shall be permitted to work in excess of forty (40) hours per week

or in excess of eight (8) hours per day.

(b) Exception: During any period of seasonal or peak demand

any employee described in Paragraph (a) hereof may be permitted

to work not to exceed forty-eight (48) hours per week in any six

(6) weeks in any six (6) months' period, provided that time and

one half shall be paid for all hours worked in excess of eight (8)

hours in any one day or forty (40) hours in any one week.

(c) Exception: There shall be a tolerance of ten (10) percent

additional hours over the forty (40) hours per week for any employee engaged in the preparation, care, and maintenance of plant, machinery, and production facilities, and for stock and shipping

clerks and delivery employees; provided that such tolerance shall

not result in such employees working' in excess of forty-four (44)

hours per week in any six (6) weeks in any six (6) months' period.

(d) Exception: During the period of the day from 6 o'clock

a.m. until starting time of shop operations, and from the closing

hour of shop operations until 6 o'clock p.m. and on Saturday, Sundays, and holidays, factory employees (other then mechanics or

artisans) may be employed as watchmen only, subject to no other

duty during these hours, provided that the combined hours engaged

as factory workers and as watchmen shall not exceed forty-eight

(48) hours in one (1) week of seven (7) days; provided, further, that their regular hourly rate as a factory worker shall be paid for

the hours engaged as watchmen.

(e) Exception: The limitations as to hours of labor shall not

apply to persons in a managerial, executive, or supervisory capacity

who receive more than $35.00 per week; nor to outside service and

installation men, commercial traveling salesmen, or night watchmen;

nor to employees engaged in emergency maintenance or emergency

repair work; provided that employees engaged in outside service or

installation work, or emergency maintenance or emergency repair

work, shall be paid time and one half for all hours worked in excess

of eight (8) hours in any one day or forty (40) hours in any one

week. Night watchmen shall not work regularly in excess of fortynine (49) hours per week.

(f) No employer shall work any accounting, clerical, service, or

sales employee more than forty (40) hours per week on a semiyearly average, nor more than forty-four (44) hours per week in

any two (2) successive weeks.

(g) No employee shall work or knowingly be permitted to work

for a total number of hours in excess of the number of hours prescribed for each day and week, whether employed by one or more

employers.
134

ARTICLE IV--WAGES

(a) Except as otherwise herein provided, the minimum wage that

shall be paid to any employee shall be forty (40) cents per hour.

(b) All employees mentioned in paragraph (f) of Article III

shall be paid at the rate of not less than $15.00 per week in cities

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

city; nor less than $14.50 per week in any city of between 250,000

and 500,00 population or in the immediate trade area of such city;

nor less than $14.00 per week in any city of less than 250,000 population or in the immediate trade area of such city.

(c) No employees of the classes mentioned in paragraph (f) of

Article III now receiving compensation at a rate in excess of the

minimum provided in paragraph (b) of this Article IV, shall have

their weekly compensation reduced on account of any reduction in

the weekly hours of employment to conform with the requirements

of paragraph (f) of Article III.

(d) Apprentices as defined in paragraph (f) of Article II shall,

for the hrst six months of their employment, be paid at not less

than eighty (80) percent of the minimum wage stipulated in paragraph (a) of this Article IV.

(e) Office boys and girls and messengers shall be paid at not less

than eighty (80) percent of the minimum wage stipulated in paragraph (b) of this Article IV.

(f) The total number of apprentices, office boys and girls, and

messengers shall not exceed five (5) percent of the total number of

employees of any one employer, provided, however, that each employer shall be permitted to have at least two office boys or girls or

messengers or apprentices.

(g) Where an employee's earnings on piecework, divided by the

number of hours worked, produce a result under the minimum wage

stipulated in Paragraph (a) of this Article IV, such earnings shall

be so adjusted as to conform with the aforesaid minimum wage.

(h) The hourly wage rate, the base rates for piecework, and salary

of all employees receiving more than the minimum rate or salary

herein provided shall be equitably adjusted if such adjustments

have not already been made.

(i) No distinction in rates shall be made between male and female

employees where the same class of work is performed, regardless of

whether compensation is calculated on an hourly, weekly, monthly, or

piecework basis.

(j) No member of the Industry shall reclassify employees or

duties of occupations performed by employees so as to defeat the

purposes of the Act.

ARTICLE V-GENERAL LABOR PROVISIONS

1. No person under 16 years of age shall be employed in this Industry, and no person under 18 years of age sharl be employed in

any hazardous operation. The Code Authority shall determine within ninety (90) days after the effective (late the hazardous operations

in the Industry and report same to the Administrator.
135

2. Employees shall have the right to organize and bargain collectively through representatives of their ow n ,hoosiug, and shall

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

labor, or their agents in the designation of suich r presentative, or

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

collective bargaining or other mutual aid or prote-tion.

3. No employee and no one seeking employment shall bh required

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

from joining, organizing, or amsisting a labor organization of his

own choosing.

4. Employers shall comply with the iiaxiniun hours of labor

minimum rates of pay, and other conditions of emiployment approved

or prescribed by the President.

5. Within each State, members of the Industry shall comply with

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 under this Code.

G. Within ten days after the effective (late, each employer shall

post and thereafter maintain in conspicuous places, full copes of this

Code and any amendments or modifications which may later be

authorized.

ARTICLE UI-ADMINISTRATION

1. To further effectuate the policies of the Act, a Code Authority is hereby set up to cooperate with the Administrator in the administration of this Code.

2. The Code Authority shall consist of five members of the Stone

Finishing Machinery and Equipment Industry. The Administrator

may appoint one or more additional members to serve without vote.

3. Members of the Code Authority shall be elected at a meeting

of all members of the Industry, such meeting' to be called as soon

as reasonably possible after the approval of tThis Code by the President and before the effective date. The meeting shall be called by

the Allied Stone Equipment & Supply Association and notice thereof

shall be sent by telegraph or registered mail to every known member

of the Industry. The notice shall specifically state that. the vote

at the meeting may be in person or by proxy.

4. The members of the Code Authority shall be elected by vote

of the members of the Industry present in person or by proxy at

such meeting, based upon:

(a) One member by a majority vote of members of the Industry

present in person or by proxy.

(b) Four members by a 51-percent vote of members of the Industry present in person or by proxy, weighted on the basis of one

vote for each $100,000 or fraction thereof of sales of products of

the Industry during the calendar year 1932, as reported to the

Secretary of the Allied Stone Equipment & Supply Association;

provided, however, that each member of the Industry shall have at

least one vote under this Subsection (b).

(c) The result, showing the names of members comprising the

Code Authority, together with its officers, shall be furnished to the

Administrator prior to the effective date.
136

5. Members of the Code Authority to fill vacancies due to death

or resignations or because a member thereof has ceased to be connected with the Industry, shall be elected at meetings of members

of the Industry called by the Code Authority on notice of not less

than ten days by mail to all known members of the Industry. At

such meetings the vote shall be taken in the manner described in

Section 4 (b) of this Article VI.

6. The Code Authority shall have the following duties and powers

to the extent permitted by the Act:

(a) To collect from members of the Industry all data, reports, and statistics when and as required by the President and/or the

Administrator and/or their agent or agents and/or the Code Authority. Such information shall be confidential. Each member shall

send his data to a Neutral Agency designated by the Code Authority,

in a plain envelope contained in an envelope addressed to the Neutral

Agency. This Neutral Agency shall assemble all such data and

present to the Code Authority only the combined totals. Each

member shall retain copies of his own data to be sent direct by him

to the Administrator, if required by the latter. Reports submitted

by the Code Authority to the Administrator shall be in the form

prescribed and/or approved by him.

(b) To represent the Industry in conferring with the President

or his agents with respect to the administration of this Code and

in respect to the Act and any regulation issued thereunder.

(c) To hear and investigate complaints, and attempt to adjust

the same in accordance with law.

(d) To coordinate the administration of this Code with such

Codes, if any, as may be adopted by any subdivision of this Industry,

or any related Industry, with a view to providing joint and harmonious action on all matters of common interest.

(e) To study the trade practice provisions of Article VII hereof

and the operation thereof, and make to the Administrator from time

to time such recommendations as it deems desirable for modification

or addition thereto, which, upon the approval of the President, after

such hearing as he may prescribe, shall become part of this Code

and have full force and effect as provisions hereof.

(f) To make rules and regulations necessary for the Administration of this Code.

(g) In addition to information required to be submitted to the

Code Authority, there shall be furnished to government agencies

such statistical information as the Administrator may deem necessary

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

7. (a) Any member of the Industry is eligible for membership

in the Association and there shall be no inequitable restrictions on

such membership p.

(b) Any member of the Industry may participate in the preparation and any revision of and additions or supplements to this Code

by assuming his share of the responsibility of administering it and

paying ])is proper pro-rata share of the cost of creating and administer-ing it, either by becoming a member of the Association or by

paying his properly share of the costs to the Code Authority. There

shall be no initiation fee for mnenmbrs of the Industry who participate only in the Code and do not become members of the Association.
137

ARTICLE VII-UNFAIR PRACTICES

1. For all purposes of this Code the following acts shall constitute unfair practices and each such act shall be a violation of this

Code:

(a) Inducing or attempting to induce by any means any party to

a contract with a member of the Industry to violate such contract,

with the purpose or effect of unduly hampering, injuring, or embarrassing competitors.

(b) Making false or misleading statements or descriptions, false

advertising, or misbranding products.

(c) Disseminating, publishing, or circulating any false or misleading information relative to any product or price for any product

of any member of the Industry, or the credit standing or ability of

any member thereof to perform any work or manufacture or produce any product, or to the conditions of employment among the

employees of any member thereof, having the tendency or capacity

to mislead or deceive purchasers or prospective purchasers, or the

tendency injuriously to affect the business of competitors.

(d) For the purpose of inducing or influencing a sale, making or

promising to any purchaser or prospective purchaser of any product

of the Industry, or to any officer, employee, agent, or representative

of any such purchaser or prospective purchaser, any bribe, gratuity, gift, or other payment or remuneration, directly or indirectly.

(e) For the purpose of inducing or influencing a sale, direct or

indirect, lavish or excessive entertainment of any purchaser or

prospective purchaser of the products of the Industry.

(f) Obtaining or endeavoring to obtain business by threats or

coercion.

(g) Selling or offering to sell shopworn, obsolete, second-hand, or

rebuilt products of the Industry without filing full description, prices, and terms with the Code Authority not less than two weeks

before such sale or offer for sale, and stating in writing the facts

and reasons for such proposed disposal. The Code Authority shall

promptly notify all competitive members of the Industry of the

description, prices, and terms of such proposed sale.

(h) Selling or offering to sell any product of the Industry made

from any but new material, it beino the intention to prohibit the

sale or offer of sale of any product of the Industry made from material which has theretofore been in use for any purpose whatsoever,

or which has not been purchased by the vendor as new material.

(i) Selling or offering to sell, billing, or charging for any sale

on a quantity basis unless the quantity is definitely specified in the

order and is to be shipped, billed, and charged within ninety (90)

days and paid for in accordance with the established terms of the

vendor.

(j) Guaranteeing against advances and declines in prices, discounts or terms of sale of the products of the, Industry, and giving

notice to customers or prospective customers in advance of the

effective date of such changes in prices, discounts, or terms of sale, as filed with the Code Authority as provided in Section 1 of Article

VIII.
138

(k) Allowing price reductions or rebates to any purchaser on the

basis of combining separate orders.

(1) Accepting or offering to accept old or used products of the

In ustry as payment, in whole or in part, for products of the

Industry.

11m) Consigning products of the Industry to a consumer.

n) Improperly dating any invoice.

o) Changing quotations except for bona fide changes in specifications or to correct bona tide errors.

(p) Storing products of the Industry on the property of any consuier without making reasonable remuneration for such storage.

(q) Selling or offering to sell below individual's cost. The Code

Authority with the approval of the Administrator shall as soon as

reasonably convenient determine a uniform method of cost accounting to be used by all members of the Industry in arriving at cost.

(r) Making or offering to make to a purchaser or prospective

purchaser a guarantee or warranty more liberal than determined

from time to time by the Code Authority and approved by the

Administrator.

(s) Making adjustments other than those which are strictly within

the guarantee offered at the time of sale, except with the approval

of the Code Authority.

ARTICLE III-TERMS AND PRICES

1. Since it has been the generally recognized practice of the

Industry to sell products on the basis of printed net price lists or

price lists with discount sheets, and fixed terms of sale, which are

distributed to the trade, each member of the Industry shall within

fifteen (15) days after the effective date file with the Code Authority

his catalogues or descriptive literature of all his products of the

Industry, with a net price list or a price list and discount sheet as

the case may be, individually prepared by him, showing his current

net prices or prices and discounts, maximum resale discounts and

terms of sale. Sufficient copies and revisions thereof of printed net

price lists or price lists with discount sheets, and fixed terms of sale

shall be furnished to the Code Authority for distribution by it to

the members of the Industry affected thereby.

2. Revised net price lists, or price lists with discount sheets, may

be filed from time to time thereafter with the Code Authority by

any member of the Industry to become effective upon a date specified

by such member of the Industry, which date shall be not less than

five (5) days after the filing of such revised prices at the office of the

Code Authority, and copies thereof, with notice of the effective date

specified, shall be immediately sent to all known members of the

Industry affected thereby, who may file, if they so desire, revisions

of their net price lists or price lists with discounts sheets, which

may take effect upon the date when the revised net price lists or

price lists with discount sheets first filed shall go into effect.

3. If the Code Authority shall determine that any member of the

Industry is not selling his products on the basis of price lists, with

or without discount sheets, with fixed terms of sale, and that a system
139

of selling on net price lists or price lists anId d1i-cotnt sheets should

be put into effect, the Code Authority shall thereupon notify such

member of the Industry and such member of the Indnhstry shall,

within ten (10) days after such notice, file with the Code Authority

net price lists or price lists with discount sheets containing fixed

terms of sale. Such net price lists or price lists with discount sheets

and terms of sale may be revised in the manner hereinabove provided.

4. No member of the Industry shall sell or exchange any product

of the Industry at prices lower or with discounts greater or on more

liberal terms of sale than the schedule of such member on file at

the office of the Code Authority as above provided. Each invoice

shall show in detail the identity of the product and unit price

charged therefor.

5. Each member shall advance, as a matter of record for use of the

membership, credit information the lack of which would otherwise

jeopardize the best interests of the members with certain customers.

(a) Customers' accounts with individual members requiring legal

action for collection and accounts not taken care of for a period of

ninety (90) days which are still being carried on the books of individual members, and in which every reasonable effort has been

made by the member to collect, shall be recorded with a Neutral

Agency designated by the Code Authority and furnished by the

Neutral Agency to other members upon their request.

(b) Customers' accounts not settled due to disputed claims shall

be so recorded with the Neutral Agency, with full information as to

the nature of such dispute.

(c) Any member may request from the Neutral Agency such credit

information as he may desire relative to customers in the trade. If

no such information is on file with the Neutral Agency, the Neutral

Agency shall endeavor to obtain such information from members of

the Industry. Upon receiving such credit information from the

members, the Neutral Agency shall make it available to the inquiring

member and make a record of the data, which record shall be always

open to inspection by the Code Authority and the Administrator.

(d) Any member advancing false or misleading credit information

to the said Neutral Agency regarding any customer shall be guilty of

a violation of this Code.

6. No member of the Industry shall allow more liberal terms than

as follows:

(a) A cash discount not exceeding two percent of the amount of

the invoice if invoice is paid on or before the tenth day of the month

following date of invoice.

(b) The free credit period shall not exceed sixty (60) days from

date of invoice. Interest at the rate of six (6) percent shall be

charged on all invoices remaining unpaid beyond the free credit

period.

ARTCLE IX-GENERAL

1. This code and all the provisions thereof are expressly made subject to the right of the President, in accordance with the provisions

of Section 10 (b) of the Act, from time to time to cancel or modify

any order, approval, license, rule, or regulation issued under Title I
140

of the 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 provisions of this Code as are not required to be included

therein by the Act may, with the approval of the President, be

modified or eliminated as changes in the circumstances or experience may indicate. It is contemplated that from time to time sup- plementary provisions to this Code or additional Codes will be

submitted for the approval of the President to prevent unfair

competition in price and other unfair and destructive competitive

practices and to effectuate the other purposes and policies of Title I of

the Act consistent with the provisions thereof.

. No provision in this Code shall be interpreted or applied in

such manner as to-

(a) Promote monopolies or monopolistic practices.

(b) Premit or encourage unfair competition.

(c) Eliminate or oppress small enterprises.

(d) Discriminate against small enterprises.

4. If any member of this Industry is also a member of any other

Industry, the provisions of this Code shall apply to and affect only

that part of the business and employment of such member of the

Industry which is a part of the Industry covered by this Code.

ARTICLE X-EFFECTIVE DATE OF Tiis CODE

This Code shall be in effect on the eleventh day after its approval

by the President, and shall apply to every person engaged in the

Industry either as an employer or on his own behalf.

Approved Code No. 158.

Registry No. 1399-26.

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