Approved Code No. 375 Registry No. 1036-05 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

ROOFING GRANULE 

MANUFACTURING AND 

DISTRIBUTING INDUSTRY 

AS APPROVED ON MARCH 31, 1934 

, /o • 0-

WE ·oo OUR PARt 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

{ 

( \ 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 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, l\Iass. : 1801 Customhouse. 

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

Charleston, S.C.: Chamber of Commerce Building. 

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

CleYeland, Ohio : Chamber of Commerce. 

Dallus, Tex.: Chamber of Commerce Building. 

Detroit, Mich. : 801 First Ne: tional Bank Building. Houston, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltia1ore 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. 

Philaclelphi , Pa.: 422 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Buildiug. 

Portland, Oreg.: 215 New Post Office Building. 

St. Loui<:, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seuttle, 'Vasb.: 809 Federal Office Building. 
Approved Code No. 375 

CODE OF FAIR COMPETITION 

FOR THE 

ROOFING GRANULE MANUFACTURING AND 

DISTRIBUTING INDUSTRY 

As Approved on March 31, 1934 

ORDER 

APPROVING CoDE OF F .AIR Col\IIPETITION FOR THE RooFING GRANULE 

MANUFACTURING AND DISTRIBUTING INDUSTRY 

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 approval of a Code of 

Fair Competition for the Roofing Granule Manufacturing and Distributing Industry, and hearings having been duly held thereon and 

the annexed report on said Code, containing findings with respect 

thereto, having been made and directed to the President: 

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

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

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

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

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

pertinent provisions and will promote the policy and purposes of said 

Title of said Act; and do hereby order that said Code of Fair 

Competition be and it is hereby approved. 

HuGH S. JoHNSoN, 

Administrator for Industrial Recovery. 

Approval recommended. 

A. R. GLANCY, 

Division Admitnistrator. 

w .ASHINGTON, D.C., 

March 31, 1934. 

50360°- 482-3-34 (11) 
REPORT TO TI-!E PRESIDE1_IT 

The Pr~SIDENT, 

The TVkite House. 

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

Roofing Granule :Manufacturing and Distributing Inc.lu try, as revi ed after a public hearing conducted in \Vashington, D.C., on 

December 19, 1933, in accordance with the provisions of Title I of 

the National Industrial Recovery Act. 

PROYISI NS AS TO HO RS AND WAGES 

Employees are not permitted to work more than forty hours per 

week or eight hours per day, except as otherwise proYicled. 

I-Iourly limitations do not apply to employees engaged in chemical 

control, managers, executives or supervisors, who receive more than 

thirty-five dollars per week; or to outside salesmen or custodians of 

clo eel plants. Hourly limitations do not apply to employee engaged in enlergency work involving br akclowns or the protection of life or property, provided one and one-l nlf times the normal rate is paid for 

hour::; worked in excess of forty per -n·eek or eigh~- per clay. 

To meet peak production periods, employees are permitted to 

work fifty hours in exce s of their normal ~naximum during any 

half calendar year, provided one and one-half time · the normal rato 

is paid for hours worked in exces of forty per week or eight per 

day. 

"\Vatchmen are permitted to work fifty-six hours per week. 

The maximum hours permitted en1ployees eno·agecl in continuous 

kiln processe are forty-eight per week or nine and one-half per day. 

During the absence of a schedule relief worker~ however, these employees are permitted to 1vork ei ·ht additional hours per week provided the working hour for any four-week period do not exceed 

one hundred and ninety-two and provided that one and one-half 

times the normal rate is paid for all hours worked in excess of the 

normal number. 

Employees are not permitted to work more than six days out of 

any se1·en. 

The minimum hourly rate for ull employees, except office and 

sales employees, shall b thirty-~eyen and one-half cents in the North 

and thirty-two and one-half cents ,in the South. 

Office, serYice or sales employees shall receiYe a minimum rate of 

fifteen dollars per week except that office boys and girls, not exceeding five percent of an employer's total number, may be paid not less 

than eighty percent of the minimum .. 

Regardless of "hether an employee is compensated on a time rate, 

piece work "or other basis, a minimum rate of pay is established. 

(12) 
13 

Compensation of employees receiving more than the minimum 

shall be equitably adjusted and reported to the Code Authority but 

in no event shall rates of pay be reduced. 

Female employees performing substantially the same work as male 

employees shall receive the same rate of pay as male employees. No one under sixteen years of age shall be em played in the industry nor anyone under eighteen years of age in manufacturing or 

mining operations. 

ECONOMIC EFFECTS OF THE CODE 

Since the indu try product is a building material, the present de- mand is required for replacements rather than for new residential 

construction. 

The forty-hour weekly maximum provided by this Code will eliminate the fifty-five and sixty-hour work weeks which prevailed in 

1929. The flexibility which the Code permits is necessary because 

eighty percent of the employees' work is done out of doors. 

The majority of the Industry's employees are unskilled laborers 

who will be beneficially affected by the hourly minimum of thirtytwo and one-half cents in the South. This will more than restore 

1929 equivalent earnings. The minimum hourly rate of thirty-seven 

and one-half cents in the North will practically restore 1929 

equivalent wages. 

FINDINGS 

The Assistant Deputy Administrator in his final report to me on 

said Code, having found as herein set forth and on the basis of all 

the proceedings in this matter; 

I find that: 

(a) Said Code is well designed to pron'lote the policies and purposes 

of Title I of the National Industrial Recovery Act, including removal of obstructions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof and will provide 

for the general welfare by promoting the organization of industry 

for the purpose of cooperative action among the trade groups, by inducing and maintaining united action of labor and management 

under adequate governmental sanctions and supervision, by eliminating unfair competitive practices, by promoting the fullest possible 

utilization of the present productive capacity of industries, by avoiding undue restriction of production (except as may be temporarily 

required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing and 

relieving unemployment, by improving standards of labor, and by 

otherwise rehabilitating industry. 

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

(c) The Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and 

Subsection (b) of Section 10 thereof; and that the applicant association is an industrial association truly representative of the afore-
14 

said Industry; and that said association imposes no inequitable 

restrictions on admission to membership therein. 

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

or monopolistic practices. 

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

small ent rprise and will not operate to discriminate against them. 

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

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

Code. 

For these reasons, therefore, I have approved this Code. 

Respectfully, 

l\fARCH 31, 1934. 

I-IuaH S. JoHNSON, 

AdministTator. 
CODE OF FAIR COMPETITION FOR THE ROOFING 

GRANULE MANUFACTURING AND DISTRIBUTING 

INDUSTRY 

AETICLE I-PURPOSES 

To effectuate the policie of Title I of the National Industrial 

Recovery Act, the following provisions are established as the Code 

of Fair Competition for the Roofing Granule Manufacturing and 

Distributing Industry, and shall be the standard of fair competition 

for this Industry, and shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

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

mining, manufacturing, selling and/or distributing by a member of 

the Industry of the products of the Roofing Granule Manufacturing 

Industry, as such products are herein defined. 

SECTION 2. The term "employee" as used herein includes all 

persons engaged in the Industry, however compensated, except a 

me1nber of the Industry. 

SEcTION 3. The term "employer" as u. eel herein includes anyone 

in the Industry by whom any such employee is compensated or 

employed. 

SECTION-4. The term "member of the Industry" includes anyone 

engaged in the Industry as above defined, either as an employer or 

on his own behalf. 

SE TION 5. The term "member of the Code" as used herein 

includes any member of the Industry who shall expressly signify 

assent to this Code. 

SECTION 6. The term "products ' as used herein mean and includes all granules and/ or fines used for roofing purposes, regardless 

of methods of grinding, crushing, coloring, or otherwise preparing 

slate, stone quartz, clay, or other base material of such granules 

and/ or fines for roofing purposes. 

SECTION 7. The tenn "Association" as used herein means the 

Roofing Granule Manufacturers Association. 

SECTION 8. The terms " President ", "Act ", and "Administrator " 

as used herein shall mean respectively, the President of the United 

State . Title I of the National Industrial Recovery Act, and the 

Administrator for Industrial Recovery under said Act. 

SECTION 9. The term "Southern Section" as used herein means 

the States of Alabama, Arizona, Arkansas, Florida, Georgia, Louisiana Mississippi, New Mexico South Carolina, Tennessee, Texas, and 

Virginia. 

SECTION 10. The term " Northern Section " a used herein means 

all of the states north and west of the states enumerated in Section 

9 hereof. 

(15) 
16 

ARTICLE III-I-Iouns 

SECTION 1. No employees shall be permitted to work in excess of 

forty ( 4:0) hours in any 'veek, or eight hours in any twenty-four 

(24) hour period, ,,~ith the exceptions specifically provided in this 

Article: 

(a) Th maximum limitations on hours and days in this Article 

III shall not apply to employees engaged in chemjcal control, executive, managerial or supervisory work who receive compensation exceeding thirty-five (35) dollars per week, or out ide salesmen. Employee engaged in emergency w·ork involving breakdowns or the 

protection of life or property \vho may be permitted to work hours 

in excess of the maxinuun provided in Section 1, but in any such 

special case at least one and one-half ( 1lj2 ) times the normal rate 

shall be paid for hours worked in such excess. (b) Employ es engaged solely as custodians at plants not 

operating. 

(c) En ployee. engaged as watchmen shall be permitted to work 

a maximum of fifty-six (5G) hours in any week. 

( c1) Employees engaged in continuous kiln-drying and kiln-burning processes shall be permitted to work not more than forty-eight 

( 48) honrs in any week, or nine and one-half (91j2 ) hours per day 

except that when a scheduled relief worker is not available, . uch 

employee.· n1ay be permitted to work eight hours in excess of such 

maximum weeld3 limit, pro\'ided they are paid at least one and onehalf (11j2 ) times their normal rate for such extra hours ancl that 

such overtim" is reported to tho Code Authority and provided further that such employees hall not be permitted to work in excess 

of one hundred and ninety-two (192) hours in any four-weeks 

per]ocl. 

SEcTION 2. (a) During periods of seasonal requirements emplovees 

shall be permitted to work in excess of forty ( 40) houn in any week 

or eight hours in any hYenty-four (24) hour period, provided that 

no en1ployee hall be pern1ittecl to work in excess of fifty (50) hours 

of orertime during ei her semi- ~ :nnual period, J annar,Y 1st to June 

30th or July 1st to December 31st, inclusive; and provided further 

that all such overtime, above forty ( 40) hours per week or eight 

hour. per day, be com pen ated by at least one and o 1e-hal (1VJ 

times the normal rate; and provided further that all such overtime 

shall be reported to the Code Authority at the expiration of each 

si. (G) months period. 

SECTION 3. No employer hall knowingly permit any employee 

to work for one or more employers in this Industry for a total 

numb r o:f hours or clays ex:ceedino· the foregoing limitations. 

SECTION 4. No employee shall be permitted to 11ork in excess of 

six clays in any seYen day period.' 

AnTICLE IV-\V AGES 

SECTION 1. No employee shall be paid at less than the hourly 

rate of . 

(a) Thirty-hvo and one-half (32·¥2) cents per hour in the Southern Section. 
17 

(b) Thirty- even and one-half 37lf2) cent per hour in the Northern Section. 

SE TIO:N 2. No ffice, clerical, accountin enTice or sales employee 

shall be paid at le ... s than the minimum rate of fifteen (15) dollars 

per week, except that office boy and girls may be permitted to 

"'\York for n t le than eighty (80) per ent of the above minim.um 

-n-age; provided, how· ever that the total number of such employees 

shall not exceed fiye percent of an employer · total numb r of office 

empl yees; and furth r provi led that each employer shall be perInittecl at least one such junior employee. 

SECTION 3. This Article establi he a minimum rate of pay regarclles · of wh th r an employee is compensated on a time rate piecework, or other b:1si ·. 

SECTION 4. Equitable adju tment of compen ation of employees 

receiving more than the n1.inimum rates of pay herein pre:crib c1 

shall be made b all mplo rers who haYe not l eretofore made uch 

adju tments, and all employer~ shall within sixty (60) days after 

appro,·al of this Code, or within uch further time a may be allowed 

by the Aclmini trator report in full to the Code Auth rity concerning uch adju tments whether made prior to or sub eqnent to such 

approval, provided, howeYer, that in no event ·hall hourly rates of 

pay be reduc d . 

SECTION . Female emplo3 ees performing the same work a male 

employee hall receive the same rate of pay as male employees. 

ARTICLE ' - GENEn L LanoR PRonsro ... -s 

SE TION 1. No person under ixteen (16) years of age shall be 

employed in the Industr nor anyone under eighteen ( 18) 'ears of 

age in manufacturing or mining operation·. In an T tate an 

employer shall be deemed to have complied with this proYision if 

he shall ha-ve on file a certificate duly is ned by the antl.1ority empowered to i sue employment certificate ...,howing that the employee i. of 

the. age re 1uired. SEcTio ... T 2. Ever3 employer hall provir:le for the afety ancl health 

of his employees at the place and during the hourN of their employment. tandards for safety and health shall be submitted by the 

Code Authority to th Admini trator within i.:s: months after the 

effective date of thi Code. 

SECTION 3. Emplo3 ees hall have the right to organize and bar~ain 

collectiYely through representatives of their own ·hoo ing, and hall 

be free from the interfer nc , e~traint, or oercion of employers of 

labor, or t heir agents, in the designation of such r epre entative or 

in self-oro·anization or in other concerted activitie for the purpose 

of collective bargaining or other mutual aid or protection. 

SECTION 4. No employee and no one seeking employment shall be 

r equired a a condition of employment to join any c01npany union, 

or to refrain from joining organizing or a si ting a labor organization of his own choosing. 

SE TION 5. Employers shall comply with the maximum hours of 

labor, minimum rates of pay and other conditions of employment 

approved or prescribed by the President. 
18 

SECTION 6. Within each State this Code shall not supersede any 

Federal or State laws imposing more stringent requirements on employers regulating the age of employees, wages, hours of work, safety 

or health, fire or general working conditions than under this Code. 

SEcTION 7. Employers shall not reclassify en1ployees or duties of 

occupations performed by employees or engage in any other subterfuge so as to defeat the purposes of the Act or of this Code. 

SECTION 8. Official copies of labor provisions of this Code snall be 

kept conspicuously posted at all times in each shop, establishment, or · separate unit, where easily accessible to all employees. 

SECTION 9. A person whose earning capacity is limited because of 

age or physical or mental handicap may be employed on light work 

at a wage below the minimum wage established by this Code if the 

employer obtains from the State authority designated by the United 

States Department of Labor a certificate authorizing his employment at such wages as may be stated in the certificate. Such authority shall be guided by instructions of the United States Department 

of Labor in issuing certificates to such persons. Each employer 

shall file with the Code Authority a list of such persons employed 

by him. Such employees shall not constitute more than five percent 

of any employer's total number of plant employees. 

SECTION 10. An employer shall make payment of all wages due in 

lawful currency or by negotiable check therefor, payable on demand. 

Wages shall be paid at regular intervals. These wages hall be exempt from any payments for pensions, insuranc·e, or sick benefits 

other than those voluntarily paid by the wage earners or those deductions required by law. The employer or his agents shall accept 

no rebates directly or indirectly on such wages nor give anything 

of value or extend favors to any persons for the purpose of influencing rates of wages or the working conditions of his employees. 

SECTION 11. An employer shall so admin~ster work in his charge 

as to provide a maximum practicable continuity of employment for 

his personnel. 

ARTICLE VI-ADMINISTRATION 

SECTION 1. To further effectuate the policies of the Act, a Code 

Authority is hereby constituted to cooperate with the Administrator 

in the administration of this Code. 

SECTION 2. (a) The Code Authority shall consist of five individuals. In addition there may be not more than three members, without vote and without cost to the Industry, appointed by the 

Administrator to serve for such periods as he may designate. 

(b) If, in any case, by reason of conditions peculiar to the Industry, selection by the Industry of members of the Code A.uthority 

representing the Industry is impossible, they may be app01nted by 

the President or his agent. , . . SECTION 3. All voting members of the Code Anthonty shall be · elected from the Industry in a fair and equitable manner subject to 

the approval of the Administrator. The As ociation is hereby designated as the agency to conduct such election. In order for any 

election of the Code Authority to be valid, it shall be necessary that 

at le&St two-thirds of the members of the Code cast a vote at such 

election. 
19 

SECTION 4. T he A· ociation shall ( 1) impo e no inequitable re-

'~ tri tion.· on member hip and 2) ubmit to the \.dministrator true 

co pi s of its arti les of association (which also con. titnte it, bylaw ) , regulation·, ancl an. amencln ent when made thereto, t gether 

with uch other information a· to membership, organization and 

activitie as tho Admini trator may deem n ne sary to effectuate the 

purpo e of the Act. 

SECTION 5. In order that the Co e Authorit r shall at all time ~ b 

truly repre entative f the Inclu try and in other re ~ pcct comply 

with the provision~ of the Act, the Administrator may provide such 

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

the Cod Authority i not truly reprc ·entatiY or does not in other 

re pects comply with the proYi ions of the Act, may require an appropriate modification in the method of selection of the Code Authority; provid d that no uc 1 modification shall permit an:vone not 

a member of the Indu try to become a Yoting member of the Co l 

Authority. 

SEcTio.~::r 6. The Cod Authority ma' adopt it. own b.'-law regulations and rule of procedure · it m y delegate its authority to . uch 

agencie or committee. as it may select. 

SECTION 7. Tho Code Authority hall be respon ible for all authorized acts of its appointed agencie or committees. 

SECTIO ... y 8. 1Vith a. \iew to keeping the Pre iclent and the member 

of the Industn informed a to the ob:;ervance or non-ob. ervance of 

the Code, and as to whether the members of the Inclu try are taki 1g 

appropriate step to effe tuate the declared policy of the Act, the 

Code Authority shall report to the A lministrator upon his reque ·t 

concerning condition in the Industry and each member of the 

Industry sh ll file with the Code Authority reports with re pect 

to wage , hours of labor conditions of employment, number of 

employee , and oth r matters. SECTIOX. 9. ~fe nber of the Inlustrv shall be entitled to nar- • l 

ticipate in and hare t he benefits of the activities of th Cod 

Authority and to participate in the election of the members thereof 

by expre c:ly signif:> ing as. ent to the C de and sta inin~ their 

reasonable share of the expen e of adm · nistration. The rea onable 

hare of the expcn e . of administration shall be determined by the 

Code Authorit}, subject to eli approvnl by the Administrator, on the 

basis of Yolume of busine s an l other equitable factor . 

SEcTION 10. All confidential information of any natur \Yhich 

may be r eque ted by the Cod Authority hall b colle ·ted throug:h 

an agency selected by the ode Authority and such information 

shall be kept confidential by the ag·ency except when required by 

the Cod Authorit ' for the prop"r administration of the Code, 

and with the further exception that all such information hall be 

fully available to the Admini trator at all time. . Collu ion by any 

Indu try member with any confidential ag ncy f tho Code Authority shall constitute a violation of this Code. 

SE TION 11. The Code Authority may hear complaints and nttempt to adjust the same under such r ules and reo·ubtion a"' may 

be pre cribed by the Admini trator. 

SECTIO~ 12. Nothing contained in thi · Cod . hall constit ute the 

member of the od Authority partners for any purp o~e nor shall 
20 

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

one for any act of any other member, officer, aaent or employee of 

the Code Authority1 nor shall any member of the Code Authority, 

exercising reasonable diligence in the conduct of his duties hereunder, be liable to anyone for any action or omission to act under 

this Code, except for his own willful misfeasance or non-feasance. 

SECTION 13. Any interested party shall have the right of complaint to the Code Authority and a prompt hearing and decision 

thereon, under such rules and regulations as it shall prescribe, in 

respect to any act of any agency designated by the Code Authority 

to act in its behalf. 

SECTION 14. Any interested party shall have the right to appeal 

to the Administrator, under such rules and regulations as he may 

prescribe, with respect to any decision, rule, regulation, order, or 

finding made by the Code Authority. 

SECTION 15. In addition to information required to be submitted 

to the Code Authority, all or any of the persons subject to this Code 

shall furnish such statistical information as the Administrator may 

deem necessary for the purposes recited in Section 3 (a) of said 

Act to such Government agencies as the Administrator may designate; nor shall anything in this Code, relieve any persons of any 

existing obligation to furnish reports to Government agencies. 

SECTION 16. The Code Authority shall have the power to make 

recon1mendations as to modification or amendment of this Code 

to the Administrator, which modification or amendment shall 

become effective as part of this Code upon approval by the Administrator after such notice and hearing as he may specify. 

SECTION 17. If the Administrator shall determine that any action 

of the Code Authority or any agency thereof may be unfair or 

unjust or contrary to the public interest, the Administrator may 

require that such action be suspended to afford an opportunity for 

investigation of the merits of such action and further consideration 

by such Code Authority or agency pending final action, which shall 

not be effective unless the Administrator approves or unless he shall 

fail to disapprove after thirty (30) days' notice to him of intention 

to proceed with such action in its original or modified form. 

ARTICLE VII-PuBLICITY oF PRICEs, TERMS, AND CoNDITIONS OF SAI.JE 

SECTION 1. Each member of the Industry shall within ten (10) 

days after the effective date hereof file with the Code Authority 

printed price lists showing current prices, discounts, terms of paynlent, freight allowances, etc., on all 1ndustry products and the 

Code Authority shall immediately send copies thereof to ·1ll members 

of the Industry. Prices may b.e revised from time to time thereafter 

by filing with the Code Authority copies of revised price lists. All 

price lists shall become effective when filed with the Code Authority 

and shall be available to all interested parties. At the same time 

that copies of price lists are sent to the Code Authority, each member of the Industry shall mail copies of his price lists and revisions 

thereof to all his customers. · SECTION 2. If at anytime hereafter the Administrator shall give 

his approval to the requirement that subsequent changes or revisions 
:I 

' 

I 

21 

o:f any price li ts or term. or conditions of ale as provide 1 in Section 

1 hereof hall be filed a .'pacific perio l of tim'-' prior to the effective 

date thereof, the Cocl Anth rity may provide that all changes in 

such I rice li ts or t rms or concli ions of sale or revi ion thereof 

thereafter filed ·hall be publi heel or filed fiye days prior to the 

affective cla} of any such sub ·equent chang or revision. Such price 

li ts or schedule.· and term and conditions of sale and change or 

re ision thereof a · aforesaid so filed, hall for the purpo of this 

Code b treated a · the publi heel price lists or chedules and terms 

and. condition of sa le of the memb r filing the same, and hall be 

aYailabl to each member of the Indu try an l after the effective late 

thereof to su h of th trade a to which the ame may b applicable. 

The Code Authority ·hall promptly cau e a copy of all such price 

li ts and term. and conditi ns of ale, and all chanO'es therein or 

revi ion th r o , to be ent to each 1~ ember of the fur:lu try. In the 

eY nt that any Indu try me1nber c:hall not r eceiv sufficient notice 

of the filing by • ny other Indu try n e11ber of changes in ·uch other 

member's price or terms an l conditions of ale a "ill ena bl such 

member to meet sur-h changes on the effectiYe date th reo£, ·uch 

member may file with the Code uthority such ch .. ng s in ·uch 

member's price or terms an l condi ion of ale a may be r quired 

to meet the changes file 1 by uch other member. Chan ·es so filed 

by nch member shall become effect.iYe on the same elate (, the effe -

ti\ e date for the changes of such other member firs,._ filing as aforeaid or, if tho ·e change shall have already become effective, then 

the change. ·ub ··eqnently filed as afore aiel, shall become effective 

immediately. 

ECTIOX 3. No member of the Indu try shall s ll directly or indirectl. any product of the Industry at a lower pri.c or at eli count 

greater or on more f~xorable tenn of payment than tho e provided 

in his urrent price lists, filed in accordance "ith the foregoing 

l_,l'OV1Sl011 . 

SECTI "N -±. \Yhen a member of the Industry offer· to ell and/ or 

sells non-indn try and industry products together to the ame en -

tomer he ·hall quote and/ or i1woicc ·eparate price on inclu try and 

no 1-inclustry product.·, and the combined lump mn price shall not 

be le than the sum of the current market price · of the separate 

products. 

ECTIOX 5. No member of ihc In 1ustr·y ~hall give or accept . ecret 

payment or allowanc{\ of r ebates refunds, or unnaTne 1 di ·count. 

whether in the form of money or otherwi e r extend to eertain purchaser special serYice · or pri Yileges not extended to all purcha ·ers. 

ARTICLE VIII-T~ \.DE PRACTICE 

SECTIO.r,. 1. No membe1· of the Industry haH giYe, permit to be 

given or Erectly offer to give, anything f value for the purpo ·e of 

influe1~ci11g or re1-rarcl~no· the ~ction of any employee agent or representati-ve of an ther In relatiOn to the bu ·ines of the employer of 

such employee, the principal of such agent or the represented party 

with?ut th~ knowledg:e .of ·uch employer, principal or party. Com~ mercia! br1 bery prov~ 10n · sha~l not be construed to prohibit free 

and general d1 tr1but10:a of articles commonly u eel for advertising 
22 

except so far as such articles are actually used for commercial bribery 

as hereinabove defined. 

SECTION 2. No member of the Industry shall engage in any misrepresentation concerning industry products-direct or implied. 

SECTION 3. No member of the Industry shall make an invoice or 

contract for industry products which is a false record of a transaction. 

SECTION 4. No member of the Industry shall induce or attempt to 

induce the cancellation of an order for industry products or the 

breach of a contract between a competitor and his customer or 

distributor. 

SECTION 5. The following practices constitute unfair methods of 

competition for members of the Industry and are prohibited. 

(a) Defa1nation.-The defa1nation of a competitor by falsely imputing to him dishonorable business conduct, inability to perform 

contracts, questionable credit standing, or by other false representations regarding his busines conduct, or by the false disparagement 

of the grade or quality of his goods. 

(b) Threats of Litigation.-The publishing 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 con1petitors or intimidating their customers. 

(c) Esp ionaqe of Oorrn.petitors.-Securing confidential information 

concerning the business of a competitor by a false or misleading 

statement or representation, by a false impersonation of one in 

authority, by bribery, or by any other unfair methods. 

SECTION 6. Other Unfair Practices.-N othing in this Code shall 

limit the effect of any adjudication by the Courts or 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 IX-GENERAL 

SEcTION 1. 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. 

SECTION 2. Corporations shall be considered to be affiliated with 

any corporate member of the Industry (herein described as the 

"parent corporation") which own a majority of the outstanding 

voting capital stock of the other. In the event of the provisions of 

Article VII being observed by any such affiliated corporation of 

such parent corporation, then the parent corporation need not comply with the requirements of Article VII in respect to prices, terms, 

and conditions of sale where such sales are made to such affiliated 

corporation. 

SECTION 3. Articles VII and XI shall not apply to products exported from the United States. . 

SEcTION 4. Nothing contained in this Code shall qe construed as 

prohibiting any member of the Industry from exercising all its lawful patent rights, or a requiring any member of the Industry to do 

any act in conflict with the terms of any valid patent licensing 

agreement. 
j 

I 

I 

I 

23 

ARTICLE ~10DIFICATION 

SECTION 1. Thi Code and all the provi ions thereof are expressly 

made ubject to the right of the Pre i lent, in accordance with the 

provisions of sub ection (b) of Section 10 of the Act, from time 

to time to cancel or modify any order, approYal, license, rule or 

regulation issued under Title I of said A t. 

SECTION 2. This Code, except a to provisions required by the 

Act may be modified on the ba is of experience or changes in circmnstance"", such modifications to be based upon application to the 

Administrator and such notice and hear~ng as he shall specify, and 

to become effective on approYal of the Presir:lent. 

SEcTioN 3. The prm i ion of this Code shall remain in effect 

unless an l until so modified or eliminated, or until the expiration of 

the Act namely J nne 1G, 1935 or ooner if the President shall by 

proclamation or Congress by joint resolution declare the emergency 

recognized by Section 1, Title I of the Act ended. 

ARTICLE XI-SELLL -:--a BELow Cosrr 

SECTION 1. I t shall con titute a \iolatiqn of this Code for any 

1nember of the Industry to sell any industry products at less than 

his allowable osts, except to meet the competition of another nv"mber of the Indn try. SECTION 2. Allowable costs shall include all direct labor cost, direct raw material cost (inclusive of transportation and shrinkage ) 

and a proportionate shar e of all indirect expenses, inclusiYe of depreciation and depletion allowances computed according to income 

t ax procedure· but allowable costs shall not include return on in- Yested capital, intere t on borrowed capital, developm_ental expense, 

selling expense nor adn1ini~truti ' e e:s:pen e. 

ARTICLE XII-SELLIKG BELOW Rusox ABLE CosT 

SECTION 1. When the Code Authority cletern1ines that an emergency e:xic::ts in this I ndustry and that the cnu thereof is destructiYe 

price-cuttjng such us to render ineffectiYe or eriously endanger the 

maintenance of the provisi_ons of thi Code the. Code Authority may 

cause to be letermined the lowest rea onable cost of the products of 

this Industry, such determination to c ubject to such notice and 

hearing as the Administrator may r er1uire. The Administrator may 

approve1 eli approve, or modify the determination. Thereafter, 

during the period of the emergency, it shall be an unfair trade practice for any member of the Industry to sell or offer to sell any 

products of the I ndu try for which the lowe t rea onable cost has 

been determined at uch prices or upon such terms or conditions of 

sale that the buyer will pay less therefor than the lowest reasonable 

co t of such product . SECTION 2. \Vhen it appears that condition have changed, the 

Code Authority, upon its O\Vn initiative or upon the request of any 

interested party, shall cause the determination to be reviewed. 
llllllllll~l~i~l~l~lii fl ~ll[illl~lllij~ ililllillllllll 

24 3 1262 08486 8891 

ARTICLE XIII-PrucE I NCREASES 

SECTI N 1. Whereas the policy of the Act to increase real purchasing power will be made more difficult of consummation if prices of 

goods and ervices increase as rapidly as wages, it is recognized that 

price increa es except such as may be required to meet individual 

cost hould be delayed. But when made such increases should so 

far as pos ible be limited to actual additional increases in the seller's 

co ts. 

ARTICLE XIV-EFFECTIVE DATE 

SECTION 1. This Code shall become effective on the second Monday 

after its approval by the President. 

Approved Code No. 375. 

Registry No. 1036-05. 

0