Approved Code No. 136 Registry No. 1013-05 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

VITRIFIED CLAY SE,VER PIPE 

MANUFACTURING INDUSTRY 

AS APPROVED ON NOVEMBER 27, 1933 

BY 

PRESIDENT ROOSEVELT 

WE DO OUR P/Jll' 

1. Executive Order 

2. Letter of Transmittal 

8. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

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

✓ 
This publication is for sale by the Superintendent of Documents, Government 

:Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign 

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

Charleston, S.C.: Chamb,er of Commerce Building. 

Chicago, Ill.: Suite 1706, 201 North Wells Street. 

Cleveland, Ohio : Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, Mich.: 2213 First National Bank Building. 

Houston, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

New Orleans, La.: Room 225-A, Customhouse. 

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa. : 933 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Building. 
Approved Code No. 136 

CODE OF FAIR COMPETITION 

FOR THE 

VITRIFIED CLAY SEWER PIPE MANUFACTURING 

INDUSTRY 

As Approved on November 27, 1933 

BY 

PRESIDENT ROOSEVELT 

Executive Order 

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

compliance with the provisions of title I of the National Industrial 

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

Fair Competition for the Vitrified Clay Sewer Pipe Manufacturing 

Industry and hearings having been held thereon and the Administrator havinO' 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 o:f 

the said act have been met. -

Now, therefore, I, Franklin D. Roosevelt, President of the United 

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

National Industrial Recovery Act, approved June 16, 1933 and 

otherwise, do hereby adopt and approve the report, recommendations, 

and findings of the Administrator and order that the said Code of 

Fair Competition for the Vitrified Clay Sewer Pipe Manufacturing 

Industry be and it is hereby approved. 

Approval recommended: 

HUGH S. JOHNSON, 

Administrator. 

THE 1V HITE HousE, 

Novembe·r £7, 1933. 

FRANKLIN D. ROOSEVELT. 

(445) 

23785°-244-104-88 
The PRESIDENT, 

NOVEMBER 6, 1933. 

The White H OU)Se. 

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

Vitrified Clay Sewer Pipe Manufacturing Industry in the United 

States, as revised after the hearing conducted in Washington on 

October 30, 1933, in accordance with the provisions of the National 

Industrial Recovery Act. 

PROVISIONS OF THIS CODE AS TO WAGES AND HOURS 

This code provides for a maximum work week of 40 hours, averaged over a thirty-day period, and a maximum work day of eight 

hours for plant employees; and for other employees, a maximum 

work week of forty hours with a ten percent tolerance for emergencies provided that this does not result in an average of more than 

forty hours of work per week in any thirty-day period. The following are excepted : 

(1) Traveling salesmen, employees whose wage is $35.00 or more 

per week and who are engaged in technical work or in managerial, 

executive, or supervisory capacities; 

(2) Watchmen, who are not to be employed in excess of twelve 

hours a day nor more than one hundred and forty-four hours in any 

two-week period ; 

(3) Employees engaged in continuous processes, those whose work 

requires their presence prior to or after the regular hours of operation or those whose work is dependent upon climatic conditions. 

These are not to be employed in excess of forty-eight hours per week; 

( 4) Employees engaged in emergency maintenance or emergency 

repair work due to breakdown or required for the protection of life 

or property, who are to be compensated at the rate of one and one• 

third times the normal rate for time worked over forty-eight hours 

per week averaged over a thirty-day period. 

The employees enumerated in (3) and (4) above may not exceed 

fifteen percent of the total employees in any operating plant. 

The code provides for minimum rates of pay of thirty-seven cents 

per hour in the North and twenty-seven cents per hour 1n the South, 

whether payment be made on a time rate or piece work basis. So 

:far as practicable, earnings are not to be decreased and rates of pay 

in excess of these minima are to be increased so as to preserve equitable differentials. 

The minimum pay for accounting, clerical, and office employees 

is to range from $16.00 to $14.00 per week, depending upon the 

size of the city, in the trade area of which they are employed. 

Watchmen are to be paid not less than $15.00 per week. Aged 

or infirm may be paid not less than eighty percent of the minimum 

(446) 
447 

wages provided for other employees, but these may not exceed five 

percent of the employees in any plant. 

Employment of any ferson under sixteen years of age, or in a 

hazardous occupation, o any person under eighteen years of age, is 

prohibited. 

ECONOMIC EFFECTS OF THE CODE 

According to figures presented at the hearing, the sales for this 

industry ha-ve declined from approximately $19,000,000 in the year 

1928 to an e timated $3,300,000 in the year 1933, a decline of approximately eighty-three percent. The number of employees has decreased from 10,284 in 1928 to 4,349 in 1933, a decrease of approximately fifty-eight percent. 

In the continuous process occupations, a substantial increase in 

employment should result from the code. In the non-continuous 

occupations, the result will be rather a shortening of the lay-off 

period , due to the intermittent type of operation which prevails in 

this industry. 

The minimum wages proposed in the code are from fifty percent 

to sixty percent higher than those in effect in June of this year. 

The proposed southern minimum wage is higher than that in effect 

in that section in 1929. 

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 member hip therein and is truly representati-ve of the 

Vitrified Clay Sewer Pipe Manufacturing Industry; and that 

( c) The Code as recommended is not designed to promote monop• 

olies 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 Reco-very Act. 

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

Respectfully, 

HUGH S. JOHNSON, 

Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

VITRIFIED CLAY SEWER PIPE MANUFACTURING 

INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

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

Fair Competition for the Vitrified Clay Sewer Pipe Manufacturing 

Industry, and upon approval by the President shall be the standard 

of fair competition for such Industry and shall be binding upon 

every member thereof. 

ARTICLE II-DEFINITIONS 

The term "Vitrified Clay Sewer Pipe Manufacturing Industry" 

as used herein includes the manufacture, and sale by the manufacturer, of vitrified clay sewer pipe, clay ring pipe, clay underdrains, 

clay wall coping, clay egment sewer blocks, clay liner plates, clay 

chimney pipe, clay flue lining, salt glazed clay drain tile which is 

fabricated in vitrified clay sewer pipe plants, and such branches and 

subdivisions thereof as may from time to time be included under 

the provisions of this Code; provided, however, that any sewer pipe 

manufacturer may elect to operate under the code of the Drain Tile 

Industry for his drain tile production, upon giving notice in writing 

to the Code Authority of such intention. 

The term " employee " as used herein includes any one engaged 

in the Industry in any capacity receiving compensation for his 

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

compensation. 

The term "employer" as used herein includes any one by whom 

any such employee is compensated or employed. 

"Plant " means any establishment engaged in the manufacture 

of vitrified clay sewer pipe as defined above. 

"Associations" means the regional association, or organizations of 

Regions or Districts set up for the purpose of making effective the 

terms, provisions, and policy of the National Industrial Recovery 

Act. 

The term " member of the Industry " includes any one engaged in 

the Industry as above defined, either as an employer or on his own 

behalf. 

"North" means all territory in the United States except that listed 

below under " South." 

"South" means the following States: Alabama, Arkansas, Florida, 

Georgia, Kentucky, Louisiana, Mississippi, North and South Carolina, Oklahoma, Tennessee, Texas, District o,f Columbia, and 

Virginia. 

(448) 
449 

"Region" means a major territory establi heel with definite boundaries for the purpo e of administering this Code in accor lance with 

powers deleo-ated by the Code Authority. " Di trict l', mean a ubdi vi ion of a Region, with definite boundaries, e tabli heel for the purpo e of admini tering thi Code in 

accordance with power delegated by the Reo-ional Committee. The term "Pre ident" 'Act" and 'Admini trator" as used 

h rein mean, re pecti vely, ' the Presi' dent of the Un~ted State , the 

ational Indu trial Recovery Act, and the Administrator of said 

Act. 

ARTICLE III-HouRs 

Recognizing the importance of achieving the maximum practicable 

stability of employment, members of the Industry establish the 

following provisions : 

1. Except as provided for in subsection 3 below, no employer shall 

cause or permit any plant employee to work at an average of more 

than forty hours per week in any thirty-day period, nor more than 

eight hours in any one day. 

2. Except as provided for in subsection 3 below, no member of the 

Industry shall employ any accounting, clerical, office, service, or sales 

employees, except commercial traveling salesmen, or any other employee not mentioned above for more than forty hours in any one 

week, with a ten percent tolerance for emergencies, provided that in 

no event shall such employment average over forty hours a week in 

a thirty-day period. 

3. The maximum hours of labor provided for in subsections 1 and 

2 of this Article shall not apply to the following: 

(a) Employees whose wage is $35 or more per week and who are 

engaged in technical work or in managerial, executive, or supervisory capacities. 

(b) Employees acting as watchmen, who shall not work in excess 

of twelve hours a day or more than 144 hours in any two-weeks period. 

( c) Employees whose labor requires their presence prior to or 

after the regular hours of operation, whose maximum hours shall 

be forty-eight hours in any one week. 

( d) Employees whose labor is dependent upon climatic conditions, whose maximum hours shall be forty-eight hours in any one 

week. 

( e) Employees engaged in continuous processes, whose maximum 

hours shall be forty-eight hours in any one week. 

(f) Employees engaged in emergency maintenance or emergency 

repair work due to breakdown or required for the protection of life 

or property, who shall be compensated at the rate of one and one 

third times the normal rate for time worked over forty-eight hours 

per week, averaged over a thirty-day period. 

Employees enumerated in items ( c) to ( f), in lusive, shall not 

exceed in number fifteen percent of the total employees in any 

operating individual plant. 

4. No employer shall knowingly engage any employee for any 

time which when totaled with that already performed for other 

employers exceeds the maximum permitted herein. 
450 

ARTICLE IV-WAGES 

1. No employee shall be paid less than thirty-seven cents per hour 

in the North and twenty-seven cents per hour in the South. 

2. This paragraph establishes a guaranteed minimum rate of 

hourly pay regardless of whether the employee is compensated on 

the basis of a time rate or of a piece-work performance for the hours 

worked in any pay period. 

3. To the ex'tent practicable, earnings shall not be decreased and 

rates of pay in excess of the minimum herein prescribed shall be 

increased so as to preserve equitable di:ff erentials. 

4. Female employees performing substantially the same work as 

male employees shall receive the same rates of pay as male employees. 

5. Accounting, clerical, or office employees shall not be paid less 

than the rate of $16.00 per week in any city of 500,000 population 

or over, or in the immediate trade area of such city; and not less 

than $15.50 per week in any city between 100,000 and 500,000 population, or in the immediate trade area of such city; and not less than 

$15.00 per week in any city between 10,000 and 100,000 population, 

.or in the immediate trade area of such city; and not less than $14.00 

per week in any city under 10,000 population. 

6. vVatchmen, in either the plant or the office, shall not receive 

less than $15.00 per week. 

7. Persons whose earning capacity is limited because of physical 

or mental defect, age or other infirmity may be employed on light 

work at not less than 80 percent of the minimum wage set by this 

Code; provided, however, that the total number of such employees 

in any one plant shall not exceed five percent of the total of such 

plant. 

8. All wages shall be paid at least twice a month, and all salaries 

at least once a month, in cash or by negotiable check. Those wages 

shall be free from any deductions for payments for pensions, insurance or sick benefits other than those voluntarily authorized by the 

wage earners or required by State laws. 

9. No employer shall, either in person or through agents, solicit 

or accept rebates, directly or indirectly, on such wages or any other 

consideration of value except work for such wages, and neither shall 

he extend favors or any other consideration to any person for the 

purpose of influencing the wages or working conditions of his 

employees. 

ARTICLE V-GENERAL LABOR PROVISIONS 

1. No person under sixteen years of age shall be employed in the 

:"Industry, nor any one under eighteen years of age at operations or 

occupations hazardous in nature or detrimental to health. Each 

member of the Industry shall submit to the Code Authority before 

January 1, 1934, a list of such operations or occupations. In any 

State an employer shall be deemed to have complied with the provisions of this paragraph if he shall have on file a certificate or permit 

duly issued by the authority in such State empowered to issue 

employment or age certificates or permits showing that the employee 

is of the required age. 
451 

2. Employees shall have the right to organize and bargain collectively through representatives of their own choo ing and shall 

be free from the inter£ rence, restraint or coercion of employers of 

labor, or their aaent , in the de ·io-nation of such r pre entativ or 

in elf-organization or in other conceited. activitie. for the purpo e 

of collectiYe baro·aining or other mutual aid. or protection. 

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

as a condition of mplo} ment to join any ompany union or tor frain 

from joining oro·anizing or as i -ting a labor oraanization of his own 

choosino- · and 

4. Emplo er hall comply with the maximum hours of labor, min- imum rates of pay and other condition of employment, approved or 

pre crib d by the President. 

5. , vithin each State this Code shall not super ede any law of 

uch State impo ino· more tringeut requirement on mployers regulating the age of employees, wages, hours of work or health, fire 

protection, or general working conditions than under this Code. 6. Employer hall not reclassify employees or duties or occupations performed by employees so as to defeat the purpo e of the Act. 

7. Each employer shall post in his plant the wage, hour, and labor 

provisions of this Code. 

8. No employee shall be required a a condition of employment 

to trade at any store specified by the employer. 

ARTICLE VI- A DMINISTRATION 

1. The Indu try shall be divided into four Regions, namely, the 

Ea tern Region the :Middle-Western Region, the outhern Region, 

and the Pacific Coa t Region, re pectively, consisting of the following States: 

(a) Eastern Region.- faine, ew Hampshire Vermont, 11a sa- chu ett, Rhode I land, Connecticut Tew York, Penn ylvania, Tew 

Jersey, Delaware, :Maryland, District of Columbia Virginia, We t 

\ ir ·inia, Ohio, ?-.fichigan, that part of In Eana east of the 86th 

principal meridian, and in ular pos e ion of the United States in 

the Atlantic Ocean. 

(b) ~Jicldle-W estern R egion.-That part of Indiana wet of the 

86th principal m ridian, Illinois ·\Yi con in, 1Iinne ota, Iowa, 11is- . ouri that part of Kentucky f-:onth of the Loui:ville c? Ta. hYille 

Railroad from LouisYill to '\Yinchester and w t of the am railroad from , inchester outh rkansa , Loui iana, orth and S uth 

Dakota, ebra. ka Kansas Oklahoma T :xa Iontana \ yoming, 

Colorado, ew ir xico, tah, and Idaho. 

(c) 01tthe1'n Region.- North arolina South Carolina, Gear ia, 

Fl_orida \..L b::una 11is i, ippi Tenne ee that part of Yentucky not 

inclucl c1 in the fidcUe-,Yestern R gion and the Panama Canal Zone. ( d) Pacific Comst Region.- California, Oregon, \\ a hinoton - vada rizona, la ka, and insular posse ions of the Unit d States 

in th Pa ific Oc an. . 2. o l uthorjty, to be elect cl b the Industry as hereinafter 

provided, i hcreb ' consti ute l as follo s : 

One member fron the Eastern Region 

One m mber from the ficldl -" e tern Region 

On m mber from the outhern Region 

One member from th Pacific Coast Region 

23785°-244-104-33-2 
452 

In addition, th Administrator may in his discretion appoint a 

member, without vote, to represent the Administration, without 

expen e to the Indu try. 

3. Regional Committees. A Regional Committee of not more 

than eight members shall be elected in each Region by a majority vote 

of tl e rnemb rs of the In lustry in the R o-ion. Each Region shall, 

as far a practicable, be self-governing under the provisions of this 

Code, and, to that end, the Code Authority, subject to review and 

modification by the Administrator, shall delegate to each such Regional Committee such of its authority, powers, and duties as may be 

necessary therefor, including the right to submit to the Administrator recommendations for amendments to this Code, applicable 

only to such Regions, within the scope of the powers granted under 

this Code. 

4. The members of the Industry in each Region shall convene, upon 

notice as hereinafter provided, on or before the expiration of one 

month from the effective date of this Code for the purpose of electing 

one member of the Code Authority and also of electing their Regional 

Committee. 

5. District Committees. vVith the approval of its Regional Committee, any group of members of the Industry may establish a subdivision or district for the purposes of effectuating the policies of the 

Act and administering the Code within its district. The members of 

the Indu try within each such district shall appoint a District Committee as a governing body, such committee to have only such powers 

as may be delegated to it by the Regional Committee of its respective 

Region. 

6. The Code Authority shall be charged with the administration of 

this Code throughout the Industry and shall have the following 

duties and powers to the extent permitted by the Act, subject to the 

right of the Administrator on review to disapprove or modify any of 

its orders, rules, regulations, or enactments: 

(a) To obtain from all members of the Industry such sworn or 

unsworn reports, either periodically or intermittently, on wages, 

hour. of labor, conditions of employment, number of employees, production, shipments, sales, stocks, prices, and other matters pertinent 

to the provisions or operation of this Code as it may specify or as the 

Administrator may from time to time require. 

(b) To make such surveys or investigations as may be necessary 

to ascertain conditions in the Industry and the observance or nonobservance of the provisions of this Code. 

(c) To submit to the Administrator from time to time such recommendations concerning: Methods and conditions of trading; the 

promotion of stabilization of the Industry; the prevention and elimination of unfair and destructive competitive prices and practices; 

the gathering and dissemination of credit information so that, during 

the period of emergency, available credit may be adapted to the 

needs of the Indu try con ·idered as a whole and to the needs of 

the small as well as the large unit ; dealing with any inequalities 

that may in any way ari e to endanger the stability of the Industry 

and of production and employment; the regular auditing of tatistical reports, co t , prices, and terms to a ·sure accuracy, prevent 

misrepresentation, and verify the Industry's reports to the Adminis-
453 

tration; such rules and regulations r garding tandardization uniform cost accounting r duction of tyl s an l . ize. an l branding 

of product a may erve the interests of the public and otherwi e 

effectuate the purposes of the Act; and such oth r r commendations 

a may from time to time appear necessary to effectuate the purpo es 

of Title I of the Act, such recommendations, when apr roved by the 

Admini trator, to have the same force and effect a any other provi ion of this Code. 

( d) To regulate, subject to review, modification or di approval 

by the Administrator, the sale of discontinued line off-grade ma-: 

terials, and inventories which must be converted into ca h to meet 

emerg ncy needs, at or below the cost of production, in pecial ca. es 

if the member files adequate proof of necessity, a detailed record 

of such surplus stocks to be filed with and checked by the r espective 

regional or district comn1ittees at the time of application for such 

approval. 

( e) To receive complaints of violations of this Code, make investigations thereof, provide hearings thereon, and adjust such complaints, and bring to the attention of the Administrator for prosecution, recommendations, and other action concerning unadjusted 

violations. 

(£) To coordinate the administration of this Code with such other 

codes, if any, as may be related to the Industry, or any sub livision 

thereof, and to delegate to any other administrative authority, with 

the approval of the Administrator, such powers as will promote. 

joint and harmonious actions upon matters of common intere t. 

7. Each association, as herein defined, or any other trade or industrial association directly or indirectly participating in the selection 

or activities of the Code Authority shall: 

(a) Impose no inequitable restrictions on membership; and 

(b) Submit to the Administrator· true copies of it articles of 

association, bylaws, regulations and any amendment when made 

thereto, together with such other information as to membership, 

organization. and activities as the Administrator may deem necessary to effectuate the purposes of the Act. 

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

representative of the Industry and in other respects comply with 

the provjsions of the Act, the Administrator may provide uch hearings as he may deem proper; and, thereafter, if he hall find that 

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

respects comply with the provisions of the Act may require an 

appropriate modification in the method of selection of the Code 

Authority. 

9. Any decision, rule regulation order, or fin ling made or cour e 

of action follow d, pur uant to this Code, may be cancel d or moclified by the Administrator whenev r he shall determin uch ac i n 

by him to be n c ssary to effectuate the provi i n of Title I f the 

At. 

10. l\f mbers of the Indu try hall be entitl cl to I articipat in, 

and ·hare the b n fit: of the a tfritie of the otle uthority, and 

t participate in the , 1 ction of th member. th reof b: a entin<T 

to an l omplj in()· with th requircmen of thi cl and u faining 

their r asonable share of the e ·p n e of it atlm.inistration. The 
454 

reasonable share 0£ the expenses 0£ administration shall be determin d by the Code Authority, or Regional or District Committees, 

subject to revi w by the Administrator, on the basis 0£ volume of 

busine s and/ or such other £actor as may be deemed equitable to be 

taken into con ideration. " 7here Regional or District Committees 

coll ct such funds, provision hall be made £or the payment 0£ a 

pror ortionate share 0£ the Code Authority's expense as apportioned 

by the Code Authority. 

11. In addition to the information required to be submitted to the 

Code Authority, there shall be furnished to governmental ao-encies 

such tatistical information as the Admini -trator may deem necessary for the purposes recited in Section 3 (a) of the Act. 

12. "\Vhen the Administrator or his duly authorized agent, or the 

Code Authority or its agents, or the Regional Committee or the 

District Committees shall obtain confidential information, it shall 

be a sembled by a disinterested neutral· party who shali keep it confidential except that it may be disclosed upon the lawful demand of 

either House 0£ Congress or lawful committees thereof, or upon demand of any court. Total. or subtotals of any data may be disclosed publicly, providing no individual enterprise supplying such 

information be revealed. Information obtained in the course of investigation shaiil not be disclosed to any members, including those on 

the Code Authority, unless such di clo ure shall be required by the 

Administrator. 

ARTICLE VII-TRADE PRACTICES 

The following practices constitute unfair methods of competition 

for members of the Industry and are prohibited: 

1. The false marking or branding of any product of the Industry 

which has the tendency to mislead or deceive customers or prospective customers, whether as to the gTade, quality, quantity, substance, character, nature, origin, size, finish, or preparation of any 

product of the Industry; or for a manufacturer to ship his products 

under the name of any nonmanufacturing buyer; or delivering 0£ a 

higher priced product when a lower priced product was old and/or 

charged to the customer. 

2. The making or causing or knowingly permitting to be made or 

published, any false, materially inaccurate, or decepbve statement by 

way 0£ advertisement or otherwise, whether concerning the grade, 

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

or preparation of any product of the Industry, or the terms, prices, 

or credit terms, values, policies, or services of any member of the 

Industry, or making misleading guarantees as regards the performance of a manufacturer's products or the structures in which they 

are u eel, or making any guarantees other than standard guarantee 

as adopted by manufacturers of their respective r gions or districts, 

or otherwise having the tendency or capacity to mi lead or deceive 

customers or pro pecti ve customers, or for the purpo e of gaining an 

unfair competitive advantage. 

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

give, money or anything else of value to agents, employees, or representatives of customers or prospective customers, or to agents, employees, or representatives of competitors' customers or prospective 
455 

customers, without the knowledo-e 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 offers 

or to influence such employers or principals to refrain from dealing 

or contracting to deal with competitors. 

4. Maliciously inducing or attempting to induce the breach of an 

existing oral or written contract between a competitor and his customer or source of supply, or interfering with or obstructing the performance of any such contractual duties or services; solicitation by 

a manufacturer or his representative, directly or indirectly, of an 

order for his product with the knowledge that a signed order from 

one in authority has previously been given a competitor, or the 

renewal of sales effort by a competitor on an operation after the 

seller receiving the order has commenced delivery and where differences have arisen resulting in a cessation of deli very, unless the said 

seller has had a reasonable opportunity to adjust such differences; 

or cancellation or repudiation of contracts by either the buyer or 

seller of vitrified clay sewer pipe, except for legal cause, or in accordance with express terms of the contract, or by mutual consent. 

5. The secret payment or allowance of rebates, refunds, commissions, credits, or unearned discounts, whether in the form of money 

or otherwise, or the secret extension to certain purchasers of special 

services or privileges not extended to all purchasers on like terms and 

conditions. 

6. The offering or giving of prizes, premiums, or gifts in connection with the sale of products, or as an inducement thereto, by any 

scheme which involves lottery, misrepresentation, or fraud, unless 

prices published make clear that such prizes, premiums, or gifts will 

be given. 

7. The defamation of competitors by falsely imputing to them dis,. 

honorable conduct, inability to perform contracts, questionable credit 

standing, or by other false representations or by the false disparagement of the grade or quality of their goods. 

8. The publi hing or circularizing of threats of suits for infringement of patents or trade marks or of any other legal proceedings not 

in good faith, with the tendency or effect of harassing competitor or 

intimidating thefr customers. 

9. Securing confidential information concerning the busin~ss of a 

competitor by a false or misleading statement or representation, by a 

fal e impersonation of one in authority, by bribery, or by any other 

unfair method. 

10. The making of installed or lump-sum prices by a manufacturer or his ao-ent, thereby concealing the unit price of the items embraced therein; or guaranteein_g that any pec1fic quantities will do 

the job which are actually insuthcient for the purpose; or the making 

of any bid when its ac eptance is contingent upon the a ceptance of a 

bid n any oth r clay products or other buil ling mat rial or commodities. 

11. Th hipm nt of vitrified clay ew r pipe on con ignn1ent. 

12. The practice of accepting, in payment for vitrified clay e er 

pipe, securitie uch as mortgag , bond , tocks or tax bills or certificates, except at current marketable cash value. 
456 

13. Furnishing any contractor, subcontractor, or agent with a certified bidding check or bidding bond; or directly or indirectly financing such buyers by prepaying freight or otherwise. 14. Delivering by truck or oth rwise of less than carload lots of 

vitrifie l clay sewer pipe at carload prices, or delivering carload 

quantities by truck or otherwise f.o.b. site or -f.o.b. dealer's yard at 

the same or at a lower price than carloads f .o.b. nearest station or 

spur, except when specifically approved by the respective Regional 

or District Committees. 

15. The Regional Committees may make and administer plans, 

subject to review and modification or disapproval thereof by the Administrator, whereby contractors', dealers', or jobbers' discounts will 

not be extended to those who do not perform the functions of contractors, dealers, or jobbers, and for the regulation of commission 

salesmen. 16. Selling below allowable cost, as hereinafter provided, unless 

such selling below allowable cost is approved in writing by the 

proper Regional or District Committee in advance of such sale. 

17. Selling or offering for sale for deliYery in the Industry member's own Region, or any other Region or District, of any vitrified 

clay sewer pipe at less than the producer's allowable cost, plus transportation charged to points of delivery, for the product involved as 

determined in accordance with the principles described in Article 

VIII; provided, however, that any producer may sell at below his 

allowable cost to meet the competition by any other producer whose 

price is not less than his allowable cost. 

18. To fail to comply with any or all of the provisions of Article 

XI and XIII of this Code. 

19. Nothing in this Code shall limit the effect of any adjudication 

by the courts or any holding by the Federal Trade Commission on 

complaint, finding, and order that any practice or method is unfair, 

providing that such adjudication or holding is not inconsistent with 

any provision of the Act or of this Code. 

ARTICLE VIII-SELLING BELOW CosT 

1. Allowable co t in each respective Region or District shall include the following elements: 

Direct labor. 

J\1aterials, at cost. 

Proportionate share of indirect expenses and fixed charges. 

Indirect expen es are to include depreciation and/or depletion, 

computed according to maximum rates allowed to the respective 

members of the Industry by Federal Income Tax Procedure, but to 

exclude the following items : 'Any reserves other than for depreciation and/or depletion. 

Interest paid. 

Executive salaries .in excess of $10,000 per annum for each 

executive. 

Salesmen's salaries and expenses. 

Commissions. 

Advertising. 

Other selling expenses. 
457 

The proportionate part of indirect expenses and fixed charges to 

be induded in allowable cost shall be determined on the :following 

ha is: 

Each member of the Industry shall report to his Regional Committee the :following in:formation covering business transacted in 

the years 1927 to 1932, inclusive, in separate totals for each year: 

Sales in tons and amounts. 

Production in tons. 

Direct labor. 

Material costs. 

Indirect expenses and fixed charges, exclusive of except.ions 

enumerated above. 

From these reports there shall be calculated the average tonnage 

:produced, the average cost of production per ton, and the average 

indirect expenses and fixed charges per ton produced, as defined 

above, :for the one-third part of the Industry which had the lowest 

cost of production per ton for the six-year period; and the resulting 

t1.verage per ton of indirect expenses and fixed charges shall become 

the standard charge o:f burden to be included in production costs for 

the respective Regions or Districts by every producer covered by this 

Code, for the purpose of determining whether or not sales or offers 

o:f sale are made below cost. 

In the case of any complaint by an interested party that a member of the Industry is violating the foregoing cost provision, the 

burden of proof of compliance shall rest upon the ac used member. 

If the Code Authority or the Administrator is not atisfied by the 

proof furni hed by the defendant member, the matter shall be referred to the Federal Trade Commission which may audit the defendant's cost accounting and otherwise review his allocation of 

burden; and the report of that Commission shall be final regarding 

the costs of the defendant member. 

2. For the purpose of adjusting costs in the future in the respective Regions or Districts, a uniform. accounting and cost-finding basis 

shall be formulated for the Industry by the ode Authority and 

applied by each Regional Committee as hereinaboYe provided ubject to review and modification or disapproval by the Administrator. 

ARTICLE IX-1\foDIFIGATION 

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 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 hi approval 

of this Code or any conditions imposed by him upon his approval 

thereof. 

2. This Code, except as to provisions required by the Act, may be 

mo lifi l on the ba is of experience or hang s in circum tances, uch 

modification to be based upon application to the Administrator and 

such notice and hearing as he shall specify, and to become effective 

on approval of the President. . 
458 

ARTICLE X-STANDARDIZATION 

Vitrified clay sewer pipe should be standardized for the elimination 

of unnecessary cost, waste, and loss, and no change in dimensions 

of a. kind likely to upset Industry standards shall be made by any 

manufacturer until after he has filed notice of his intention thereto 

in the office of his Regional Committee. The standards of the American Society for Testing Materials can be a scientific guide with 

reference to sizes and strength, absorption, and other physical 

qualities. · 

ARTICLE XI-TERMS OF SALE, AND CREDITS 

1. The Regional Committer may establish standard terms of sale 

and cash discounts and credit practices which shall be uniform in 

each respective Region and which shall be binding upon all producers, subject to review by the Code Authority and the Administrator. 

2. All quotations and contracts for the sale of vitrified clay sewer 

pipe shall be in writing and shall contain a definite statement of 

prices, quantities, terms of payment, time and place of delivery, and 

all other items necessary to form a complete understanding. 

3. The terms of sale of each member of the Industry, including 

credit terms, , hall be uniform in the Region to all purchasers of the 

same class, and shall be unifo,rmly enforced, provided that nothing 

herein contained shall prevent any member of the Industry from 

refusing credit to any purchaser or requiring special terms of payment when in his judgment such refusal or requirement is necessary 

for the adequate protection of the account. 

4. Members of the Industry may exchange credit information for 

the purpose of eliminating losses to the Industry, and failure to give 

truthfully such credit info,rmation is an unfair method of competition. 

ARTICLE XII-J\!IoNOPOLIES 

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 XIII-PRICE 

1. The Regional or District Committee may require that each member of the Region or District shall file with the Committee's Secretary a net price and/ or a price list or discount sheet individually 

prepared by him showing his current prices and/ or prices and discounts, including all special discounts, freight allowances, and terms 

of payment. The Secretary shall immediately send copies or revisions thereof to all other members o,f the Industry in the Region or 

District. 

2. Each member of the Industry shall be free to change his published prices or conditions and terms of sale :from time to time as 
459 

conditions warrant, but he shall file with his Regional or District 

Committee at lea t five (5) days prior to the effective date thereof 

such new, amended, or revised prices or terms or conditions of sale 

before making any quotation, offering for "'ale, or ale in accordance 

with such re ision · except that the time required for prior filing 

may be shortened to afford opportunity to meet a newly published 

price, or to meet legitimate competition from competitive materials 

other than vitrified clay sewer pipe. Changes of prices or conditions 

and terms of sale shall be deemed to be filed with Regional or District Committees, as hereinabove provided, when an acknowledgment 

by wire, by telegraph, or by mail shall have been issued by the 

secretary of such Regional or District Committees. 

3. No member of the Industry shall sell, directly or indirectly 

through an affiliated company or otherwise, by any means whatever, 

any of the products of the Industry at a price lower, or at discounts 

greater, or on more favorable terms of payment than those provided 

in his current net price and/ or price lists and discount sheets, so filed 

with the Committee as aforesaid; provided, however, that at any time 

any member of the Industry may meet the lawful price of any competitor for products of an equal grade or quality. Any such meeting 

of a lower price must be _reported at once to the Committee. An 

"Affiliated" company for the purpose of this section means a company the majority of whose voting stock is owned or controlled by 

a member of the Industry. 

ARTICLE XIV 

Any notice, demand, or request required or permitted to be given 

to or made on any member of the Industry shall be sufficiently given 

if mailed, postage prepaid, addressed to such member at the address 

of such member on file with the Regional Committee. Notice o:f 

meetings shall be issued by the Secretary of each respective association at least seven days prior to the dates thereof. A waiver in 

writing signed by any member of any such notice, demand, or reque t 

and delivered to the Regional Committee shall be deemed to be the 

equivalent of a notice, demand, or request duly given or made, 

whether or not such waiver was signed and delivered at the time 

such notice, demand, or request was required or permitted to be given 

or made. Any member of the Industry may cast his vote on any subject by written proxy. 

ARTICLE xv 

""Thereas the policy of the Act to increase real purchasing power 

will be made impossible of consummation if prices of goods and 

services increase as rapidly as wages, it is recoQTiized that price increa es, except such as may be required to meet individual cost, 

should be delayed. But when made such increa es should, so far as 

possible, be limited to actual additional increases in sellers' costs. 
460 

ARTICLE XVI 

This Code shall become effective on the second Monday after its 

approval by the President, and such date shall be known as the 

'' effective date" 0£ this Code. 

Approved Code No. 136 

Registry No. 1013-05 

0 

UNIVERSITY OF FLORIDA 

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