Approved Code No. 168 Registry No. 1034- 1-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

REFRACTORIES INDUSTRY 

, t • 

AS APPROVED ON DECEMBER 18, 1933 

BY 

PRESIDENT ROOSEVELT 

Wi DO OUR PART 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHING TON : 1933 

V 

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Approved Code No. 168 

CODE OF FAIR COMPETITION 

FOR THE 

REFRACTORIES INDUSTRY 

As Approved on December 18, 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 Refractories 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 .A.ct have been 

met: 

NOW, TI-IEREFORE, I, Franklin D. Roosevelt, President of the 

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

of the National Industrial Recovery .A.ct, a pp roved 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. 

Approval recommended: 

HUGI-I s. JOHNSON, 

Administrato1·. 

THE vVHITE HousE, 

Deceniber 18, 1933. 

27649°-296- 168-33 

FRANKLIN D. ROOSEVELT. 

(255) 
DECEMBER 5, 1933. 

The PRESIDENT, 

The White Howse. 

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

Refractories Industry, the hearing having been held in Washington 

on the 25th day o:f October in accordance with the provisions o:f the 

National Industrial Recovery Act. 

PROVISIONS AS TO HOURS AND WAGES 

Employment is limited to eight hours per day and :forty hours per 

week to be averaged over a thirty-day period with the exception o:f 

those employees engaged on emergency maintenance and/ or repair 

work or in cases where the reduction o:f hours o:f highly skilled workers and those whose hours o:f labor in out-o:f-door operations are 

affected by inclement weather, would unavoida):lly reduce or delay 

employment of others or cause damage to eqmpment or products. 

These exceptions are limited to ten percent o:f the total number of 

employees of any one plant. Exemptions are made for executives 

and employees in a managerial, advisory, or technical capacity receiving more than thirty-five dollars per week; and watchmen; provided, that watchmen shall not work more than six days nor more 

than fifty-six hours per week. 

Minimum rates of wages of from 40 to 32 cents per hour are established for the various industrial districts of the North with a minimum of 25 cents in the South. Rates below 32 cents will be raised 

by the Industrial Relations Board if the Codes of other comparable 

basic natural resource industries later provide higher rates. 

No differentiation is made between female and male employees; 

no one under eighteen years shall work underground and no one 

under sixteen years shall be em ployed. 

The minimum weekly salary of $15.00 per week is established in 

cities of 500,000 population or over; $14.50 per week in cities of over 

250,000 and not exceeding 500,000, and $14.00 per week in cities of 

less than 250,000. 

ECONOMIC EFFECT OF THE CODE 

Previous to the adoption of the President's Reemployment Agreement this Industry, which includes approximately 350 firms, employed about 15,000 employees whic,h was increased in August 1933 

to app:ro:s:imately 20,000. During the year 1932 the Industry was 

operating at only 15 percent of capacity, which has increased at this 

time to about 20 percent of capacity. Fully 50 percent of the products of the Industry are sold to the iron and steel industry, and the 

prosperity of the Industry depends upon general manufacturing 

conditions. The invested capital of the Industry is about $150,- 000,000, and the Yalue of its products averaged $45,000,000 during 

the past five years. 

(256) 
257 

While the number of employees in the Industry has increased 80 

percent since March 1933 the pay-roll increa e has been 150 percent. 

The schedule of hours represents a drop from an average maximum 

of 60 in 1932 to a maximum of 40 under the Code, which hould provide for a large increase in employment with any upturn of business. Labor costs comprise approximately 70 percent of the total 

cost of production. 

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 (b) 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 

Refractories 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 H. JoHNSON, Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

REFRACTORIES INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

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

Fair Competition for the Refractories Industry and shall be binding 

on every member thereof. 

ARTICLE II-DEFINITIONS 

1. The term "Refractories Industry" as used herein includes the 

mining and/ or producing and/ or manufacturing and/or processing 

of refractories and the selling by miners and/or producers and/or 

manufacturers and/or processors and/or sales agencies other than 

dealers of refractories as herein defined. The products of the 

Industry are as shown in Schedule I hereto attached. 

2. The term "Employee " as used herein includes any person 

engaged in any phase of the Industry in any capacity in the nature 

of employee irrespective of the nature or method of payment of 

his compensation. 3. The term" Employer" as used herein includes anyone for whose 

benefit such an employee is so engaged. 

4. The term "Member of the Industry" includes any producer, 

manufacturer, processor, or employer of labor in the Industry who 

shall be subject to this Code. 

5. The term "Member of the Code" includes any member of this 

I ndustry who shall s~gnify assent to this Code. 

6. The term " Effective date " as used herein means the date this 

Code shall become effective after it shall be approved by the. President of the United States. 7. The tenns "President", "Act", and "Administrator" as used 

herein shall mean respectively: the President of the United States, 

Title I of the National Industrial Recovery Act, and the Administrator for Industrial Recovery of the said Act. 

8. The term " Base Prices " as used herein means the prices for 

those standard products developed and established by custom in the 

industry and/ or the divisions thereof. 

ARTICLE III-PARTICIPATION 

All members of the Refractories Industry may participate in this 

Code and any subsequent addition or revision of the code by accept-

(258) 
259 

ing and paying their proportionate share of the c:o t and responsibility as well as the benefit of such participation by becoming a 

Member of the American Refractories Institute or by paying to the 

American Refractories In ·titute their proportionate share of the 

expense of administering thi Code on the ame ba is as paid by 

members of the Institute, with the exception of the expenses of the 

technical and research work conducted by the Institute at the Mellon 

Institute of Industrial Research at Pittsburgh. All other activities 

of the American Refractories Institute hall be in administering this 

Code of Fair Competition. At each meeting of the Members of 

the Code, or if a vote on any question shall be taken by mail each 

Member thereof shall have as many vote as shall equal the quotient obtained by dividing by 100,000 the aggregate amount in dollars of the invoiced value of the products sold and lelivered by 

such Member during the preceding calendar year. Fractions in 

such quotient shall be disregarded; provided, however, that each 

Member of the Code hall have at least one vote. All questions as 

to the number of votes which each Member of the Code shall be 

entitled to cast shall be determined by the Emergency National 

Committee hereinafter defined. Any person or firm that i a l\1ember of the Code may, and an association or corporation which is 

a l\1ember of the Code shall, vote at meetings of the Ivlembers of 

the Code by proxy in writing duly executed by such Member and 

filed with the Secretary. Any such proxy may be for a specified 

meeting or may b0 a general proxy for any or all meetings that 

may be held until such proxy shall have been revoked by an instrument in writing duly executed by the Member of the Code which 

gave such proxy and filed with the Secretary. No initiation or 

entrance fees shall be charged, but the Emergency National Committee (hereinafter described) shall assess such subscription fees 

or dues as shall be necessary to defray the expenses of the Ameriman Refractories Institute in administering the provisions of this 

Code and in assisting the National Recovery Administration in 

effectuating in the Refractories Industry the purposes and requirements of the National Industrial Recovery Act. 

It shall be the duty of the Emergency National Committee as hereinafter described or any of its duly qualified agents to take such legal 

steps as they may deem necessary to collect from any Member of the 

Code any assessment or dues not paid for a period of thirty (30) 

days after the date on which such assessments or dues became payable. 

ARTICLE IV- HOURS OF LABOR, RATES OF PAY, AND OTHER CONDITIONS 

OF EMPLOYMENT 

A. GENERAL 

1. Pursuant to subsection (a) of Section 7 of the Act and so long 

as the Code shall be in effect, employers shall comply ivith said subsection (a) of Section 7, as follo-ws: 

"(a) That emplo,yees shall have the right to organize and bargain 

collectively thru representatives of their own choosing, and shall be 

free from the interference, restraint, or coercion _of employers of 
260 

labor, or their agents, in the de ·ignation of such representatives or 

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

of collective bargaining or other mutual aid or protection; 

"(b) That no employee and no one seeking employment sh all 

be required u a condition of employment to join any company 

union or to refrain from joining, organizing, or assisting a labor 

organization of his o,,n choosing; and 

" ( c) That employers shall comply with the maximum hours o:f 

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

approved or pre cribed by the President." 

2. No person under sixteen ( 16) years of age shall be employed 

in the Industry; providing, however, that where a state law provides 

a higher minimum age no person below the age specified by such 

state law shall be employed within the state. No person under 

eighteen (18) years of age shall bB employed in any underground 

mining operations of the Industry. 

3. No employer shall recla ify employees or duties of occupations perfonned or engage in any other subterfuge for the purpose 

of defeating the purposes or provisions of the Act or of this Code. 

4. '\Vithin each state this Code shall not supersede any laws of 

such state imposing more stringent requirements on employers regulating the age of employees, wages, hours of work, or health, fire, or general working conditions than under this Code. 

5. Every employer shall make reasonable provisions for the safety 

and health of hi e1nployees at the place and during the hours of 

their employment. 

6. Each employer shall post in conspicuous place , fully accessible, 

full copies of this Artide IV of this Code except that employers 

may post only the wage rates applicable in the district where such 

posting is lone. 

7. There shall be e tabli ·h.od by the Administrator an Industrial 

Relations Board for the Industry consisting of an equal number of 

represe·.1.tatives of employers and employees to deal with all matters 

in the Code relating to labor. "\:Vhere a 1najority agreement cannot 

be reached, the Board shall select an impartial chairman to render a 

decision. The creating and functioning of these Boards, including 

the selection of these representatives of -employees, shall he in accordance with Section 7 of the Ad. If no truly representative labor 

organization exists, the ·employee members of such Board shall be 

,chosen by the Labor AdYisory Board of the N.R.A., and must be 

either an employee in the Industry or some one intimately familiar 

with the Industry. The employer representatives shall be chosen by 

the Emergency National Committee hereinafter defined. The Industrial Relations Board may esta~lish such subsidiary agencies constituted in like manner as it finds necessary. 

n. HOURS OF LABOR 

Iviany of the basic processes in the Industry are of a continuo us 

character and the mining of the raw materials, in 1nany instances, 

is subject to interruption due to in-cle1nent weather.- Consequently 
261 

the strict limitation of hours of labor for each week is impractical, 

but can be averaged over a thirty (30) day period. 

Accordingly, no employer in the Industry shall cause or permit 

any employee to work at an average of more than forty ( 40) hours 

per week in any thirty ( 30) day period, nor more than eight ( 8) 

hours in any one (1) day. 

These maximum hours of labor shall not apply in the case of 

executives, salesmen, or those employed in supervisory capacities 

and in technical work and their respective staffs, Eroviding such 

classes of employees earn not less than thirty-five ($35.00) dollars 

per week, nor in the case of watchmen, provided that watchmen 

shall not work more than fifty-six (56) hours in any one (1) week 

nor more than six (6) da3 sin any seven (7) day period. 

These maximum hours of labor shall also not apply in the case 

of those employed in emergency maintenance or emergency repair 

work involving break-downs or protection of life or property. 

Recognizing that the occasion for emergency maintenance or 

emergency re.pair work is limited to break-downs and protection of 

life or property and in order that it may be properly advised as to 

the extent of the use of this provision as to such classes of work, 

each Member of the Industry shall ;report monthly to the Emergency National Committee the number of hours worked by employees 

engaged in emergency maintenance and/ or emergency repair work 

in excess of the hours stipulated above with the number of employees 

so engaged and the reason for such work. 

The Emergency National Committee shall at all times keep the 

Administrator and the Industrial Relations Board, as set up in Article IV, Section A, Paragraph 7, fully advised as to the extent of use 

of this provision, as to emergency maintenance and/ or emergency 

repair work. 

Nor shall these maximum hours of labor apply to the following: 

1. Employees whose labor requires their presence prior to or after 

the regular hours of operations. 

2. Employees whose labor is dependent upon climatic conditions. 

3. Employees engaged in continuous processes. 4. Employees engaged in work where limitation of hours of work 

per day may operate unfairly again t the employee or may limit 

production and thereby deprive other employees of labor. 

Those employees enumerated in items one to four, inclusive, of 

this paragraph shall be limi'-ed to an average week of forty-eight 

(48) hours in any thirty (30) day period, and their number shall 

not exceed 10% of the total employees in any operating individual 

plant. 

No employer shall knowingly permit any employee to work for 

any time which, when totaled with that already performed with 

another employer or employers, exceeds the maximum permitted 

herein. 

276490°- - 2g6-168-33-2 
262 

C. WAGES 

For the purpose of this Article IV the wage districts and minimum rates for common labor described below have been established : 

Rate ver hour 

Coots 

District No. 1: Maryland, New Jersey, New York, and New England 

States, and Penn ylvania with the exception of Pitt burgh and Salina_ 35 

District No. 2: Pittsburgh and Salina, Pa. and Niles, Ohio____________ 40 

District No. 3: West Virginia, Ohio, and Kentucky, with exception of 

Niles, Cincinnati, and Portsmouth, Ohio, and Ashland and Louisville, Ky ______ ·--------------------------------- ------------------ 32 

District No. 4: Cities of Cincinnati and Portsmouth, Ohio, and Ashland 

and Louisville, Ky________________________________________________ 35 

District No. 5: Alabama, Georgia, Tennessee, South Carolina, North 

Carolina, Florida, Louisiana, and Mississippi______________________ 25 

District No. 6: East Chicago, Indiana, and Joliet, Ill__________________ 37 

District No. 7: Indiana and Illinois, except the cities of East Chicago, Indiana, and Joliet, IlL__________________________________________ _ 35 

District No. 8: 

Missouri District, other than St. Louis and St. Louis County________ 32 

St. Louis and St. Louis County__________________________________ 35 

District No. 9: Texas and Arkansas__________________________________ 25 

District No. 10: Colorado, Utah, Montana and W:rnming________________ 35 

District No. 11: California, Washington and Idaho____________________ 35 

Any other State or States not specifically covered____________________ 35 

Minimum wage rates in Districts Numbers 5 and 9 will be increased by the Industrial Relations Board for the industry as described in Article IV, Section A, Paragraph 7, if the Codes for 

other comparable basic natural resource industries later provide 

higher rates than those herein provided for Districts Numbers 5 

and 9, such increases to become effective upon approval by the 

President after such notice and hearing as he may require. 

It is agreed that these wage rates shall establish a guaranteed 

minimum rate of pay regardless of whether the employee is compensated on the basis of time rate or a piecework performance. 

Until changed by amendment of the Code the minimum rates of 

pay per hour which shall be paid by Members of the Code for 

common labor in the Industry in the respective wage districts 

described above shall be the rates set forth opposite each district 

shown above. r 

None of the Members of the Code shall pay common laborers in 

its employ in the Industry in any such district any rate of pay 

less than the rate specified for such district in the schedule shown 

above. Such rates of pay shall not, however, be understood to be 

the maximum rates of pay for their respective districts. 

No person employed in clerical or office work shall be paid less 

than at the rate of fifteen ($15.00) dollars per week in any city of 

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

nor less than fourteen dollars and fifty cents ($14.50) per week in 
263 

any city between 250,000 and 500,000 population, or in the immediate trade area of such city; nor less than fourteen ($14.00) dollars 

per week in any city of less than 250,000 populatio~. . . . Wage rates for occupations other than those rece1v1ng a m1n1mum 

wao-e herein described, shall at least maintain the difference in earning~ for those occupations existing as of June 1, 1933. To the 

extent practicable, no employer shall reduce the compensation for 

employment in excess of the minimum wages hereby agreed to, notwithstanding that the hours worked in such employment may be 

reduced. 

Factory wages shall be paid at least twice a month in lawful 

currency or by negotiable check. These wages shall be exempt from 

any deductions other than those voluntarily agreed to by the employee or authorized by law. No employee shall be required, as a 

condition of employment, to trade at a store specified by the 

employer. 

ARTICLE V-DIVISIONS OF THE INDUSTRY 

SECTION A. Powers.-For the purposes of administration of this 

Code, the Refractories Industry shall be divided into Divisions as 

set forth below and as shown on the accompanying organization 

chart, as shown in Exhibit A and made a part of this Code. Each 

Division shall designate or establish its own administrative agency 

or agencies. Each such Division shall be independent and selfgoverning in respect to all conditions and problems relating exclusively to the said Division with the exception of such powers as are 

hereinafter delegated to the Emergency National Committee of the 

Refractories Industry (hereinafter described). 

Proposals in respect to matters affecting more than one Division, 

other than amendments to this Code, may be initiated by any Division 

and shall be submitted £or consideration to the said Emergency 

National Committee and its determination shall be binding upon 

said Division and all other Divisions affected thP.rPby. 

The method of selection of any divisional administrative agency 

or agencies may be subject to review and disapproval or modification 

by the Administrator. The Administrator may appoint one member to any Divisional Administrative Agency who shall not have 

voting power, who shall represent the government on such Agency. 

SECTION B. Names of Divisions.-Divisions are hereby established 

as follows: 

Fire Clay Refractories 

Silica Refractories 

Basic Refractories 

High Temperature Bonding Mortars 

Plastic Refractories 

Special Refractories 

Locomotive Arch Refractories 

Suspended Walls and Arches 

Glass House Refractories 

Ladle and Hot Top Refractories 

Sleeve, Nozzle, and Runner Brick and Tuyeres 

Fire Clay Producers 

Other divisions of Refractories and of manufacturers or producers 

of Refractories Products may be established upon application of any 
264 

such group to the Emergency National Committee and subject to 

the approval of the Emergency National Committee (hereinafter 

described), such Divisions to have representation on the Emergency 

National Committee of the Refractories Industry. SECTION C. EweC'U)tive Commiittee.-In order to cooperate with the 

Administrator to effectuate the policies of the National Industrial 

Recovery Act, each of the above Divisions and any others which may 

subsequently be formed within the Refractories Industry shall set 

up an Executive Committee for the purpose of administering the 

provisions of the Code, to secure adherepce thereto, to hear and 

adjust complaints, to consider proposals for amendments and exceptions thereto and otherwise to carry out within the Division the 

purposes of the National Industrial Recovery Act as set forth in 

this Code. Any action taken under this paragraph may be reviewed 

and disapproved by the Administrator. 

The Emergency National Committee (hereinafter described) , in 

order to secure adherence to the policies of the National Industrial 

Recovery Act in cooperation with the Administrator, shall require 

each Division to adopt fair trade practice rules relating to the practices peculiar to that Division. If a Division as named above does 

not adopt such fair trade practice rules or if at any time thereafter 

a Division fails to perform its obligations as provided hereunder, 

the Emergency National Committee of the Refractories Industry 

hereinafter described, subject to the approval of the Administrator, 

is hereby empowered to adopt rules of Fair Trade Practice for the 

Division and may provide for the administration of the Code as if 

said Emergency National Committee were the Executive of the 

Division concerned. Such fair trade practice rules upon approval 

by the President after such notice and hearing as he may require 

shall become a part of this Code and fully effective as such. 

ARTICLE VI-EMERGENCY NATIONAL COMMITTEE 

SECTION A. R epresentation.-There shall be an Emergency National Committee o:f the Refractories Industry of twenty-five or more 

members, to consist of a representative of each Division, selected 

by the said Division, by some fair method, which may be reviewed 

by the Administrator; a representative of the Industry at large, 

who will be the President of the American Refractories Institute; 

and a special representative to be selected by the Industry at large 

for each of the following subjects: Labor, Code of Ethics, Statistical 

and Cost Accounting Data, two (2) Executive Vice-Presidents and 

seven (7) representatives at large. The above Committee will, therefore, consist of the following representatives: 

Fire Clay Refractories. · , 

Silica Refractories. 

Basic Refractories. 

High Temperature Bonding Mortars. 

Plastic Refractories. 

Special Refractories. 

Locomotive Arch Refractories. 

Suspended Walls and Arches. 

Glass House Refractories. 
265 

Ladle and Hot Top Refractories. 

Slee,e ozzle, and Runner Brick and Tuyeres. 

Fire Clay Producers. 

Labor. 

Code o-f Ethics. 

Statistical and Cost Accounting Data. 

Pre ident of the American Refractories Institute and 

Two (2) Executive Vice-Pre idents, Seven (7) representatfres at large. At any meeting of the Emergency J ational Committee, any Member unable to attend such meeting may send a duly accredited alternate to represent him. The alternate must file notice of sucb. 

authority with the Secretary of the meeting before taking part in its 

deliberations. Each member of the Emergency National Committee 

shall have one vote. 

The Admini trator may at his own option appoint not more thun 

three additional members of the Emergency National Committee who 

&hall not have voting power, who shall represent the Government on 

the Emergency National Committee. 

Such member or members of the Industry shall be appointed for 

six months and if more than one is appointed, their terms are to be 

so arranged that they do not expire at the same time. 

Each trade or industrial association directly or indirectly participating in the selection or activities of the Emergency National Committee and Executive Committee shall: (1) Impose no inequitable 

restrictions on membership, and (2) submit to the Administrator 

true copie of its articles of association, bylaws regulations, and any 

amendments when made thereto1 together with such other information as to membership, organization, and activities as the Administrator may deem necessary to effectuate the purpose of the Act. 

In order that the Emergency ational Committee and ExecutiYe 

Committee shall at all time be truly representative of the industry 

and in other respects comply with the provisions of the Act, the 

Administrator may provide such hearing as he may deem proper; 

and thereafter if he shall find that the Emergency National Committee and the Executive Co.mmittees are not truly representative or 

do not in other re pects comply with the provisions of the Act, he 

may require an appropriate modification in the method of selection 

of such committees. 

SECTION B. Powe1·s.-The Emergency National Committee shall 

be the general planning and coordinating agency for the Industry 

in cooperation with the Ad.mini trator. Its Members, selected by 

established Divisions shall be empowered by the said Divisions to 

act for them conclusively in respect to all matters before the Comm:ttee for con ideration and within its jurisdiction. The Committee 

shall have powers and duties as provided herein; and in addition 

thereto, it hall, subject to review and disapproval by the Administrator: 

( 1) from time to time require such reports and information as to 

labor tatistical or co t-accounting data, or any general information 

from divisions and/ or all member thereof as in its judgment may be 

necessary to adYise it adequately of the administration and enforcement of the proYisions of this Code; this information to be collected 
266 

- by such confidential agency as the Emergency National Committee 

may select, and distributed only in summary except that it shall be 

available in full to the Emergency National Committee and the 

Administrator. 

(2) upon complaint of interested parties, or upon its own initiative, make such inquiry and investigation into the operation of the 

Code as may be necessary; and 

(3) make rules and regulations necessary for the administration 

and enforcement of this Code. The Committee may delegate any 

of its authority to the National Control Committee hereinafter 

provided, and may designate such agents as it may require to carry 

out its functions. 

( 4) vVilful failure of any Member of this Code to comply within 

thirty (30) days with any request of the Emergency National Committee or any of its duly qualified agents for any pertinent information as to labor, statistical or cost accounting data, or any general 

.information necessary for the proper administration of this Code 

under the National Industrial Recovery Act shall be considered a 

violation of th.is Code. 

In addition to information required to be submitted to the Emergency National Committee, there shall be furnished to government 

agencies such statistical information as the Administrator may deem 

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

SECTION C. Concerning Prices.-(l) Each Member of the industry shall, within ten days after the effective date of the Code, unless 

this ten-day period is extended by the Emergency National Committee, which is he.reby authorized to make such extension of this 

period as it may deem necessary, file with the American Refractories 

Institute a list showing the minimum base prices for all of its pr0(1-

ucts, and from and after the expiration of such ten days or extension 

thereof such Member shall at all times maintain on file with the 

American Refractories Institute a list showing the minimum base 

prices for all its products and shall not make any change in such 

minimu:..n base prices except as provided in this Section. 

Each such list shall become effective ten days after the date of 

filing such list with the American Refractories Institute, provided, 

however that the first list of minimum base prices filed by any Member of the Industry, as above provided, shall take effect on the date 

of filing thereof. None of the minimum base prices shown in any 

list filed by any i1ember of the Industry as herein provided shall be 

changed except by the filing by such Member with the American 

Refractories Institute, of a new list of its minimum base prices, 

which shall not become effective until ten days after the date on 

which such new price lists shall have been so filed, and not later than 

10 days. . The Emergency National Connnittee shall present to the Administrat~r for his approval after such notice and hearing as he may 

require-

(a) A system of cost finding capable of application by all members of the industry. 

(b) A detJ.nition of the term " representative member " of the 

industry based on investigations by the Emergency National Committee as to the costs, determined by such system, of the members 
267 

of the Industry. In no event shall the term "representative member " be construed in such a manner as to exclude from such classification more than ten percent of the total manufacturers of any 

particular product in any competitive di trict. 

Af~er the determination of individual co t in this manner, the 

Emergency National Com1nittee shall aclvise the members of the 

industry in each competitive district, and as related to each product 

in the industry, the cost of the lowest cost representative member in 

each such district and as related to each product in the Industry and 

no members of the Industry shall ell his products at a price which 

will re ult in the purchaser paying therefor less than the cost of 

the lo-west cost representative member as determined aforesaid. 

The Emergency National Committee shall have power on its own 

initiative, or on the complaint of any Member of the Industry, to 

investigate any minimum base price for any product shown in any 

list filed with the American Refractories Institute by any member 

of the Industry and for th~ purpose of the Investigation thereof to 

require such member to furnish such information concerning the cost 

of manufacturing such product as the Emergency ational Committee shall deem necessary or proper for such purpose. 

If the Emergency National Comn1ittee, after such investigation, 

shall determine that such base price for such product is below the 

cost of the lowest cost representative member manufacturing such 

product in the competitive district of the manufacturer under such 

investigation, and that the maintenance of such base price may 

result in unfair competition in the Industry, the Emergency National Committee shall notify the member under such investigation. If such member, within ten days after such notice, shall 

not file a new list showing a price at least equal to such lowest 

representative member's cost ( which price shall become effective immediately upon filing) the En1ergency National Committee shall 

report the result of its investigation to the proper authority or 

authorities for action. 

A notice of all decisions of the Emergency National Committee 

under this Section, together with the reasons therefor, shall be filed 

with the Administrator. Any member of the Industry affected by 

action of the Committee under this paragraph may appeal to the 

Adn1inistrator, who, after such notice and hearing as may be 

required, may review and disapprove the action of the Em-ergency 

National Committee hereunder. 

(2) The Emergency National Committee shall issue to the Members of this Industry from time to time a schedule of classification 

of Extras to be added to the base prices listed in accordance with 

the provisions of Section (1). The use of such classification shall 

be mandatory upon the Members of the Industry. 

(3) The Emergency National Committee may make such exceptions to the provisions under subheadings (1) and (2) of Section C, 

Article VI, to the extent deemed necessary by them to prevent unfair 

operation of the foregoing provisions in exceptional cases. No person subject to the jurisdiction of this Code shall sell, or offer for sale 

Refractories and/ or Refractories Products at prices less than those 

so filed. Any violation of this provision shall be deemed an unfair 

practice and a violation of this Code. 
268 

( 4) Contracts entered into prior to the passage of the National 

Industrial Recovery Act are not affected by the provisions of this 

Section C of Article VI. 

ARTICLE VII 

TERMS, DISCOUNTS, AND CREDITS 

Terms of sale shall be determined by each division of the industry 

for its respective division ap.d included in its divisional code. 

In soliciting business, no manufacturer shall agree to accept as 

payment securities such as mortgages, bonds, stocks, tax bills, certificates, or any other security except at current marketable cash value. 

REBATES 

The secret payment or allowances of rebates, refunds, commissions, 

or unearned discount, whether in the form of money or otherwise, or 

secretly extending to certain purchasers special prices, services, or 

privileges not extended to all purchasers under like terms and 

conditions is an unfair trade practice. 

Except in the Special Refractories Division, providing any kind of 

free service, such as free truck delivery_ to d_epot or from depot to 

customer's plant, shipping from warehouse at carload prices, crating 

or packing without adequate charge, furnishing unusual engineering 

services gratis is an unfair trade practice. . 

Shipping material in excess of that for which proper charge is 

made or giving away material as samples ( or otherwise) in such 

quantity or manner, or making special allowances under the guise of 

advertising expense as to have the effect of rebating, is an unfair 

trade practice. 

Unwarranted allowances for rejection or -shortage claims by connivance or otherwise, between se1ler and purchaser is an unfair trade 

practice. No allowance shall be made for the return of used sacks 

or other containers used for the shipment of refractories. 

Directly or indirectly to give or permit to be given, or to offer to 

give money or anything of value to agents, employees, or representatives of customers or prospective customers, or to agents, employees, 

or representatives of competitor's customers or prospective customers, 

without the knowledge of their employers or principals, as an inducement to influence their employers or principals to purchase or contract to purchase from the makers of such gift or off er, or to influence 

such employers or principals to refrain from dealing or contracting 

to deal with competitors is an unfair trade practice. The above 

provisions shall not be construed, to prohibit free and general distribution of articles commonly used for advertising except so far as 

such articles are actually used for commercial bribery as hereinabove 

defined. 

Substitution of quality in any manner or specifically invoicing 

lower quality or cull material and shipping higher grade with the 

intent of injluencing the placing of business is an unfair trade 

practice. 
269 

MISBRANDING 

Except in the divisions of Special Refractories, High Temperature Bonding Mortars, Plastic Refractories, and Fire Clay Producers, quality of brands and materials shall be clearly defined 

and expressed by the seller. No recognized grade shall be misbranded or misrepre ented to include it in any lower price classification when in so doing the seller creates discrimination. Where 

a manufacturer is producing a refractory for re ale by a dealer 

under the dealer's trade names, the brands so sold n1ust be identified 

by the manufacturer in the correct quality class. 

Except in the Special Refractories Division, making any sale 

of any product under any description which does not fully describe 

such product in term customarily used in the Industry shall be an 

unfair trade practice. Each manufacturer shall file with the American Refractories Institute a list of his brands classified as to 

quality. Upon complaint of any mem.ber as to misrepresentation 

of quality of any brand so as to classify any brand at lower qualitY, 

than it should properly be, the Emergency National Committe0 

may investigate such brand through the l\1ellon Institute, and if the 

brand in question is found to be 1ni represented as to quality, the 

Emergency National Committee may require the 1nanufacturer to 

properly cla sify such brand. The classification of the American 

Society of Testing l\1aterials shall be used. 

BRANDS AND TRADE l\IARKS 

The imitation of the exclusive trade marks, trade names, slogans, 

or other individual marks of identification of competitiors, having 

the tendency to mislead or deceive purchasers or prospective purcha ers, i an unfair trade practice. 

SERVICE GU ARANT"EES 

(a) Except in the divisions of Special Refractories and Basic 

Refractories, inasmuch as the manufacturer of refractories has no 

control o,er the use of his product, guarantees as to the length 

of service of materials shall constitute an unfair trade practice. 

Nothing in this section shall apply to the introduction of a new 

product during a period of one year from its introduction. 

TYPE AND VALIDITY OF CONTRACT 

(a) The Emergency National Committee shall 1ev.elop and the 

industry shall adopt, in cooperation with buyers, a form of contract 

which will avoid ambiguity, prevent misunderstanding, and protect the rights of both buyer and seller, such form of contract to 

be subject to the approval of the Administrator. 

(b) Contracts are bu ine s obligations which should be performed 

in both letter and spirit. It hall be an unfair trade practice for 

sellers to permit the repu liation of contra t by b1-1yers without 

just cause. 

( c) Contracts hall cover the bona file shipment of material over 

a given fixed period. It hall be an unfair trade practice for seller 
270 

to knowingly enter into a contract which represents such sharp practice on the part of the buyer as either overestimation of requirements in a single contract or pyramiding or duplication of contracts 

or any other means of misrepresentation. 

( d) Maliciously inducing or attempting to induce a buyer to violate a contract with a competitor shall be an unfair trade practice. 

None of the members of the Code shall make any contract of sale 

of any product by the terms of which the shipment of such product 

is not required to be completed before the end of the calendar quarteryear, ending March 31, June 30, September 30, and December 31, 

ending not more than four months after the date of the making of 

such contract. 

This paragraph shall not apply in the case of Special Refractories, 

Glass House Refractories, Fire Clay Producers, and Locomotive 

'.Arch Divisions. 

The post- or pre-dating of any proposal, order, contract, invoice, or 

instrument which has a bearing upon the terms and conditions of 

purchase shall be deemed an unfair trade practice. 

PROPOSALS 

Recognizing that many irregular trade practices are the result 

of oversight as often as intent, a standard proposal or quotation 

form to include the following is recommended: 

Date of shipment. 

Terms. 

F.0.B. point. 

Schedule o:f overages as per classification. 

Method of handling damage claims. 

Limit of time of acceptance of proposal to ten days. 

Seller not responsible for failure or delay in delivery due to 

causes beyond his control, acts of God, etc. 

Any special clause regarding taxes or legislation. 

COMMISSIONS 

Except in the Special Refractories and Suspended Arches and 

Walls Divisions no commission or discount, direct or indirect, shall 

be paid to an engineer, contractor, boiler setter, furnace builder, or 

anyone directly or indirectly connected with any consumer or any 

consumer's organization. 

Except in the Suspended Arches ·and Walls Division, no commissions should be paid to an Agent ( or Dealer) who is controlled 

in whole or in part by any .consumer organization, nor to any 

fictitious Agent ( or Dealer) created for the purpose of passing to 

the c~ns_umer, or to the consumer's friends, all or any part of a 

com.m1ss10n. 

Except in the Suspended Arches and Walls Division, commissions or discounts shall be paid only to regular bona fide Agents 

( or Dealer,s) hereinafter defined on purchases and/or shipments in 

such Dealer's territory. 
271 

DEALERS 

Except in the Fire Clay Producers Division, a Dealer in the Industry is one who has an established place of business where he is 

regularly engaged in selling refractories, and who may or may not 

sell other materials to the public, with adequate refractories stocks 

and facilities to serve the retail trade in a given territory and able 

and willing to perform all functions devolving upon him in securing, 

executing, and delivering orders for such refractories. 

A Dealer may also be an agent of the same manufacturer. 

(a) Discounts to dealers shall be determined by Divisional Codes. 

(b) Except in the Fire Clay Producers Division, no shipments 

shall be made to dealers on consignment, nor shall terms be made 

which will in effect constitute or approximate shipment on consignment. 

( c) Terms of payment to Dealers shall he the same as to consumers. 

AGENTS 

Except in the Fire Clay Producers Division, an Agent in the 

Industry is one who is engaged in selling refractories products ( and 

who may or may not sell other material) to Dealers and/or Con- sumers in a certain prescribed territory. 

An Agent may also be a Dealer of the same manufacturer. 

(a) An Agent may operate on a salary or commission basis, or 

both. 

(b) Nothing in the above shall be considered as preventing a 

manufacturer fr0111 establishing his own warehouse stocks for retail 

distribution by his own employees, such employees to be paid either 

by direct salary or commission. No such warehouse shall be 

established on a consumer's property. 

( c) Except in the High Temperature Bonding Mortar and Plastic Refractories Di visions, terms to Agents shall be the same as to 

Consumers. GE ERA.L PRA.CTICES 

Except in the Special Refractories Di, ision, gauging or grinding 

of products to closer than standard tolerances without adequate 

charge or accepting business under specifications calling for closer 

than the allowable Industry standard tolerances without adequate 

additional charges is an unfair trade practice. 

Furnishing -special containers or special individual formul as without adequate charge is an unfair trade practice. 

Misrepresentation of raw materials or of the source of raw materials is an unfair trade practice. 

Except in Glass House Refractories, Locomotive Arch Refractories, and Fire Clay Producers Divisions, consignment shipments 

shall not be made. 

The purchase of materials not for the purchaser's own u ·e to influence a purchase or an allowance for used materials to influence 

a purchase is an unfair trade practice. 

Except in the case of the Special Refractories Divi ion, any request by a purchaser for specifications <>f standard refractory prod-
272 

ucts other than standard American Society for Testing Materials 

requirements shall be referred to the. Mellon Institute for advice 

before writing such specifications. The . existence of illogical or 

unfair specifications should be reported to the Refractories' Fellowship at the Mellon Institute so that proper steps may be taken to 

have them modified. 

Procuring or divulging otherwise than with the consent of any 

member of the Code, any information concerning the business of 

such member which is properly regarded by it as a trade secret or 

confidential within its organization, other than information relating 

to a violation of any provision of the Code, is an unfair trade 

practice. 

SPECIAL ALLff\V ANCES 

Except in tl-'.e Special Refractories Division, on orders for special 

shapes manufactured but not shipped and which customer desires to 

cancel, and which cannot be sold to another customer, invoice shall 

be rendered customer at full invoice price, less value of bats at a 

price no higher than 50% of the current price of dobies. 

ORDERS FOR SPECIALS 

On orders for specials which are manufactured in accordance 

with customer's instructions-but order held up after material is 

in process of manufacture-customer shall be invoiced for 100% of 

full invoice price of material manufactured if order is not shipped 

within 90 days after date of order, material to be held by manufacturer for customer's account. 

DEFAMATION OF COMPETITOR OR DISPARAGEMENT OF HIS GOODS 

The defamation of a competitor in any manner either by imputing to him dishonorable conduct, inability to perlorm contracts, or 

questionable credit standing or false disparagement of the grade 

or quality of his goods is an unfair trade practice. 

Deliberately misleading promise of delivery that cannot reasonably be fulfilled is an unfair trade practice. 

ENTICEMENT OF EMPLOYEES 

Enticement of employees of competitors with the purpose and 

effect of interfering with their business is an unfair trade practice. We recommend that manufacturers deal frankly and openly 

in instances where employees seek to change from the service of one 

employer to another or where the employer wishes to negotiate for 

the services of another manufacturer's employee. 

EXCEPTIONS 

The E1nergency National Committee may make . whatever exceptions it deems necessary to the provisions of this Article VII to 

prevent its unfair application in special cases. In the event any 

member of the Code petitions the Emergency National Committee 
273 

for exceptions under any of the provisions of this Article VII the 

Emergency National Comn1ittee, or any of its duly qualified agents, 

may suspend such provisions as pertain to su h member tmtil the 

Emergency National Committee acts on such petition and notifies 

the member o:f its decision. The deci ion of the Emergency ational 

Committee on any such decision shall be subject to review, modification, or disapproval by the Administrator. 

ARTICLE VIII-NATIONAL CoNTROL CoM:MITTEE 

The Emergency National Committee of the Refractories Industry 

shall elect from its own membership a National Control Committee 

of not less than three, but not to exceed six members, in addition to 

the President of the American Refractories Institute. The National 

Control Committee shall exercise such authority as may have been 

delegated to it by the said Emergency National Committee. 

All communications and conferences of the Refractories Industry 

with the President or with his agents concerning the approval or 

amendment of this Code or any of its provision , or any matters 

relating thereto, shall be through the said National Control Committee. The National Control Committee shall serve as an executive 

agency for the Emergency National Committee of the Refractories 

Industry, and shall be charged with the enforcen1ent of the provisions of this Code and with the duties, through agents or otherwise, 

of hearing and adjusting complaints, considering proposals for 

amendments and making recommendations thereon, approving recommendations for exceptions to the provisions of this Code, and 

otherwise administering its provisions. Any such action may be 

reviewed and disapproved by the Administrator. Any Division or 

any adherent to the provisions of this Code, or subject to its terms, 

shall have the right of appeal to the Emergency National Committee from deci ions of the National Control Committee, and the 

decision of the said Emergency National Committee on said appeal 

shall be final except that such decision may be subject to review and 

disapproval by the Administrator. 

The Admini trator may appoint one member to the National Control Committee, without voting power, who shall represent the gov• 

ernment on the committee. 

ARTICLE IX-CAPACITY 

Whereas, it i the concensus of opinion in the Industry that until 

such time as a demand for its products cannot adequately be met by 

the fullest possible u e of existing capacities for producing fire clay 

or silica brick and special shapes, such capacities shall not be in• 

creased and no new capacities shall be added. 

Capacity in this Industry shall be defined as those kilns and 

furnaces existing as of the effective date of this Code and as customarily used for burning refractories, whether periodic or tunnel kilns 

and/or furnaces, and owned by persons, partnerships, or corporations who, as· of the effective date of this Code, were definitely established as manufacturers of refractories or as refractories producers. 

Accordingly no member of the Industry and/or no person engaged 

in the Industry shall initiate the construction of any new units or 
274 

increase his capacity of fire clay and silica brick or special shape 

production unless and until he shall have secured :from the Emergency Nation al Committee consent to such increa§.e, as being consistent with effectuating the policy of the Act during the period of 

the emergency. The Emergency National Committee shall promptly 

notify the Administrator of any application for any such consent 

and the Administrator may review, disapprove, or modify the action 

of the Emergency National Committee upon such application and/ or 

at any time may suspend the operation of this Article IX to effectuate the purposes or policy of the Act. 

Nothing in the above shall be interpreted to prevent any Member 

of the Code from replacing present capacity or existing machinery 

for the production of fire clay or silica brick and special shapes with 

new and modern capacity or equipment so long as the total existing 

capacities, us defined aboye in this article, of that Member are not 

increased. The purchase by any one of existing capacity as defined 

above shall not be interpreted as adding to existing capacity. 

ARTICLE X-lVIoNoPoLrns 

( 1) This Code is not designed to promote monopolies and shall 

not be availed of for that purpose. 

(2) The provisions of this Code shall not be so interpTeted or 

administered as to eliminate or oppress small enterprises or to 

discriminate against them. 

ARTICLE XI-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 subsection (b) of Section 10 of the National Industrial 

Recovery Act, 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 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) The Emergency National Committee of the Refractories 

II_1dustry and the National Control Committee shall from time, to 

time make to each Di vision established, or to be established, under 

the provisions of this Code, such recommendations, including recommendations respecting amendments to the Code as may be necessary 

to effectuate within the Refractories Industry or within any Division 

thereof the purpose of the N ationa.l Industrial Recovery Act as 

administered. 

(3) Any action of the Emergency National Committee under any 

or all provisions of the Code may be reviewed and disapproved by 

the Administrator. 

( 4) Amendment of this code may be proposed by any group truly 

representative of the industry or any division thereof, or by any 

established di vision to the Emergency National Committee, or may 

be initiate.cl by the said Committee and after apprqval by the Committee and when approved by the President after such notice and 

hearing as he may prescribe shall be effective. Nothing in this Section 4 shall be construed to prevent any member of the industry from 
275 

petitioning the President to use his powers as outlined in Section 1 

of this Article. ( 5) "\iVhereas the policy of the Act to _increase real purchasing 

power will be made impossible of consummation if prices of com- modities and services increase us rapidly as wages, it is recognized 

that price increases hould be delayed and that when made, the same 

should, so fur as is r asonably possible, be limited to actual increases 

in the seller's costs. 

( 6) No provisions of Articles VI and VII shall have any application to sales or shipments of products of the Industry exported to 

countries or places other than the United States and its territories 

and/ or possessions. 

(7) This Code shall be in effect beginning ten days after its 

approval by the President. 

Approved Code No. 168. Registry No. 1034-1-01. 
SCHEDULE I-DIVIS IONS OF THEJ INDUSTRY AND PRODUCTS 

Sveoial Refr actories .-Fused Alumina, Sillimanite, Mullite, Kaolin, Super Fire 

Brick, Silicon Carbide, Insula ting Refractories, Cast Refractories. 

Basic Refraatories.-Chrome, Magnesite. 

Silica R efractories.-Silica Brick. 

Fire Olay R efractor:es.---Fire Clay Brick. 

S11,spended Arches and TValls.-Sectionally Suspended Refractory Walls and 

.Arches. 

Locomotive Arches.-Locomotiyc Firebox Refractories. 

Plast,ic R efractories.-Plastic Refractory mixtures of all grades. 

High T emperativre .Mortars.-Vlet or Dry High Temperature Mortars of all 

grades. 

Slee'Ges, Nozzles, Runn er Brick, an d Tiiyere Refractories.-Fire Clay Refractories for these uses. Ladle and Hot Top Refraator·ies.-Fire Clay Refractories ,for these purposes. 

Glass House Refraotories.-Specialty products of :fire clay for glass industry. 

Ffre Olay Producers.-Raw and Prepared Refractory Clays. 

(276) 

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