Approved Code No. 389 Registry No. 1036-1-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

CLAY AND SHALE ROOFING 

TILE INDUSTRY 

u 

i 

AS APPROVED ON APRIL 6, 1934. 

WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 193-i 

For lale by the Superintendent of Documents. Washinll:ton, D.C. - - - - - - - - Price 5 cents 
This publication is for sale by t he Superintendent of Documents, Government 

Printing Office, Washington, D .C., and by di trict offices of the Bureau of For- eign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

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Birmingham, Ala.: 257 Federal Building. 

Boston, Mass.: 1801 Customhouse. 

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Detroit, Mich.: 801 First National Bank Building. 

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Memphis, Tenn.: 229 Federal Building. 

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San Francisco, Calif.: 310 Customhouse. 

Seattle, Wash.: 09 Federal Office Building. 
Approved Code No. 389 

CODE OF FAIR COMPETITION 

FOR THE 

CLAY AND SHALE ROOFING TILE INDUSTRY 

As Approved on April 6, 1934 

ORDER 

APPROYIXG ODE OF FAIR CO)IPETITIO:N FOR THE CLAy AXD SHALE 

RooFING TILE INDuSTRY 

An application having been duly made pursuant to and in full 

compliance with the pro vi ion of Title I of tln National Indu trial 

RecoYery Act approved June 16, 1933, for approval of a Code of 

Fair Competition for the Clay and hale Roofing Tile Industry, and 

hearing having been duly held thereon and the annexed report on 

said Code containing finding with re pect ther to, having been 

made and directed to the Pre ident: 

NO\V THEREFORE, on behalf of the Pre ident of the United 

State , I Hugh S. Johnson Admini tr·ator for Indu trial Recovery, 

pur uant to authority ve ted in me by Executiv Order of the 

President includino- Executive Order No. 6543-A dated Dec mber 

30, 1933 and oth rwi e; do hereby incorporate by reference said 

annexed report and do find that said Code complie in all re pects 

with the pertinent provi ion and will promote the policy and pur- po e of aid Title of aid Act; and do hereby order that aid Code 

of Fair ompetition be and it i hereby approved. 

H GH S. JoHx ON 

Admini t?'atm· foJ' I ndust1·ial Recov ry. 

Approval recommended: 

A. R. GLAK Y, 

Dit:i ion Admhd trator. 

\V 'IIIN TOX D. ., April 6 1934. 

61567"--4 2-40-34 (219) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

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

and Shale Roofing Tile Industry as revised after a public hearing 

conducted in Washington, D.C., on January 19, 1934, in accordance 

with the provisions of the National Industrial Recovery Act. 

PROVISIONS AS TO WAGES AND HOURS 

All employees, except persons employed in accounting, clerical, 

office or sales work, or persons whose earning capacity is limited 

because of age, physical or mental handicap, shall be paid a minimum rate of forty cents per hour in all stat es except the following 

where the minimum rates shall be: Washington, Oregon, Idaho, 

California, Nevada, Arizona and New Mexico, thirty-seven and onehalf cents per hour; Kentucky, thirty cents per hour ; North Carolina, twenty-seven cents per hour; Tennessee, South Carolina, Georgia, Alabama, Florida, Texas and Louisiana, twenty-five cents per 

hour. Persons employed in accounting, clerical, office or sales work 

shall be paid at the rate of not less than from fourteen to fifteen 

dollars per week, depending upon the population of the city or town 

in which they work. Persons whose earning capacity is limited 

because of age, physical or mental handicap may be employed on 

light work at a wage below the minimum established by this Code. 

Female employees performing substantially the same work as male 

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

Equitable adjustment of compensation of employees receiving more 

than the minimum rates of pay shall be made by all employers who 

have not heretofore made such adjustments, within sixty days after 

approval of this Code. 

Forty ho Irs shall be the maximum number of working hours for 

any one week or eight hours for any one day except that during any 

three week in any six months' period, forty-eight hours per week 

is permissible. The foregoing limitations shall not apply _to those 

engaged in executive, managerial and supervisory capacities who 

regularly receive thirty-five dollars or more per week, and outside 

salesmen; burner and power plant employees who may be permitted 

to work not more than forty-eight hours in any seven day period; 

night watchmen who may be permitted to work not more than twelve 

hours in any one day or forty-eight hours in any one \veek, or eightyfour hours in any two weeks' period; day watchmen who may be 

permitted to work eight hours in any one day or forty-eight hour · in any one week; employees engaged on emergency maintenance or 

emergency repair work, provided one and one-half times the normal 

rate of pay ·hall be paid for the honrs worked in excess of eight 

hours per day or forty hours per week. 

(220) 
221 

Clay an l hale r ofing tile i us d principally on r sid n . , 

chool hur he r reational public and governmental building . Roofina tile compri nl about thr e per nt of all roofing mat - rial oll. Th Indu try i · highly ea onal and foll ~ buil<.lino· ·ontru tion v ry clo 1 '· P ak bu ·in ,,. ccur lurino· th e ·ond an 

thir l quarter . Production of roofing tile reached a peak in 1926 when the value 

of tile produced wa $7 015,755. There ha been a teady deer a. e in 

production until in 1933 ale amounted to only 15 percent of the 

1926 figure and 26 percent of the 1929 production. In spite of the 

lecrea e in production the number of memb r in the In lu try has 

increased o that pre ent apacity i 22 percent above the 192 figur . 

Competition within the Industry is extremely keen. Tra le practice 

prm isions of the Code are expected to remedy the unfair competition 

that has exi ted in the past within the Indu try. 

According to the Research and Planning Division's re1 ort there 

were, in 1929, one thousand four hundred and sixty-eight wage earnrs employed by the Industry; in 1933, nine hundred and eio·hty-two. 

In order to ab orb all worker engaged in the Indu try in 1929, an 

eighteen hour week would be nece sary. Over 90 percent of the 

member of the Indu try also operate under the approve l code for 

tructural clay products. 

Average hours worked per week in 1929 were fifty; in 1933, twent\ ~ 

even. In 1933, hour were reduced to a low level in order to sprea i 

mployment as far as pos ible. Ten percent of the worker in the 

Industry are un killed an l will be affected by the minimum wage 

provi ion of the ode. Labor co t under the Pre ident Reemployment Agreement increased 18 percent. A further incr ea e in pur-

·hasing power can be expected a the result of the provi ion in the 

Code stating there shall be an equitable adjustment of wage above 

the minimum. 

FINDINGS 

The A i tant Deputy Admini trator in hi final report to me on 

aid Code having found a herein et forth an l on th ba i of all 

the proceeding in thi matter: 

I find that : 

(a) ail ~ le i well design d to prom t the pob ic an l purpo of Titl I of ih National Indu trial R covery \..ct in luclinb 

removal f ob truction to the fr e flow of inter tate and for ign 

ommerc wl ich t end to dimini h the amount ther of an l will pr -

vid for th ; n ral welfare by promoting the organization of indu try for th I urp e of coop rative action among the tra 1 OTOUI . , 

by inducing an lmaintainina unit l a tion of labor and manag m nt 

und r a leqnat gov rnmental an ti n and npervi ion b~y liminating unfair omp titiv practi e by romoting the full s I o ible 

ntilizati n f th I r nt pro lu tiv ~ pa it f indu tri by avoidinO' undu r tri tion of produ tion ( x pt a ma be temporarily 

required) y in r a ·ino· the con umpti n f indu trial an<.l a~ricultural produ t through incr a ing pur ha in<Y power, by r du 'ing 

and reli vina un m loym nt by impr ing tan lar l of labor, and 

by oth rwi e rehabilitating indu try. 
222 

(b) Said Industry normally employs not more than 50,000 

employees; and is not cia ified by me a a major industry. (c) The Code as a pprov d com plies in all re pect with the perti- nent provi ions of said Title of said Act, including without limitation 

Snb ection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the a1 plicant group is an 

industrial group truly representative of the afore aid Industry; and 

that aid group imposes no inequitable re trictions on admission to 

member hip therein. 

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

or monopolistic practices. 

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

small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other st ps of the economic process ha·ve not 

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

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

Respectfully, 

APRIL 6, 1934. 

HuGHS. JonNsoN, 

Administrator. 
CODE OF FAIR CO:MPETITION FOR THE CLAY AND 

HALE ROOFIN TILE INDUSTRY 

ARTICLE I-PURPO E 

To effectuat the policie of Title I of the National In lu trial 

R overy Act the following provisions are e tablishe l as a code 

of fair om petition for the Clay and Shale Roofing Tile Industry, 

and hall b the tan lard of fair competition for uch indu try and 

hall b binding ur on every member thereof. 

ARTICLE II-DEFINITIOX 

1. The term " lay and Shale Roofing Tile Industry" or the 

"Indu try ' as u eel herein is defined to mean the manufacture for 

sale of clay an l hale roofino· tile. 

2. Th term employee ,? a u e 1 herein in ·lude any an l all 

per on engag d in the Indu try, howev r compen ated except a 

member of the Industry. 

3. The term ' employer" a u eel herein in ·ludes anyone by whom 

such employee is compensated or employed. 

4. The term "member of the Industry " includes, but without 

limitation any individual, partner hip, a sociation, corporation, or 

other form of entity engaged in the Industry, either as an employer 

or on hi or it own behalf. 

5. The term ' roofing contra tor " a u eel herein shall mean a 

per on company, or corporation r other entity engaged in contracting with owner , owners' agents, or £reneral contractor for 

roofing material in place on roof to be in talle l by killed tile 

me hani s compen ated on a regular hourly, daily or weekly ba..i . 

6. Th term "Pre ident" 'A-t" and ''Administrator" a u ed 

her in hall mean, r pectively the President of the United State , 

Titl I f the National Indu trial Recovery Act, and the Admini -

trator for Indu trial Recovery under said Act. 

7. The ' Inclu try ommittee ' a u ·eel her in i defin l o m c n 

th committ e ele -ted at a m eting of the la and Shale Roofing 

Til manufacturer, h ld at hica ·o, Illinoi ~ on July 12, 193' . 

. Populati n for the pur1 o e of thi Code hall be d t ~rmin l 

b r f r nee to the 1930 Fe leral en ·u . 

ARTICLE III-HouRS 

E 'TI ~ 1. No employee, excludin 

empl y . , hall b emplo.' cl in x of fort (40) hour in an. 

one w ek or eight ( ) hour in any one lay or m re than ix (G) 

day in any on k exc pt that during an three ( ) w ek in 

any six ( 6) months period mplo rna. b mplo l not m r 

than f rt -eight ( 4 ) hour p r " ek. Th f r aoing limitati n 

shall not apply to: 

(223) 
224 

(a) Those engaged in executive, managerial and supervisory 

capacities who regularly receive thirty-five (35) dollars or more 

per week. 

(b) Ou tsi le salesmen. (c) Burner and power plant employees who may be permitted 

to work no more than forty-eight ( 48) hours in any seven day 

period. 

(d) Night watchmen who may be permitted to work not in 

excess of twelve (12) hours in any day or forty-eight ( 48) hours 

in any week or eighty-four (84) hours in any two (2) weeks' period. 

Day watchmen who may be employed not in excess of eight (8) 

hours in any day or forty-eight ( 48) hours in any week. Watchmen shall not be permitted to work more than six ( 6) days in any 

even (7) day period. 

(e) Employees who are engaged on emergency maintenance or 

emergency repair work involving the breakdown of machinery or 

plant equipment or protection of life or property, provided, one 

and one-half times the normal rate of pay shall be paid for hours 

worked in excess of the maximum hours hereinbefore provided. 

(£) No accounting, clerical or office employee shall be permitted 

to work in excess of forty ( 40) hours per week. 

SECTION 2. An em:{Jloyer shall so administer work in his charge 

as to provide the maxunum continuity of employment practicable for 

his personnel. 

SECTION 3. 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. 

ARTICLE IV-WAGES 

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

forty (40) cents per hour except in the following states where the 

minimum rates shall be as follows: Washington, Oregon, Idaho, 

California, Nevada, Arizona, and New Mexico thirty -seven and 

one-half (371;2) cents; Kentucky thirty (30) cents; North Carolina 

twenty-seven (27) cents; and in the following states, Tennessee, 

South Carolina, Georgia, Alabama, Florida, Texas, and Louisiana 

twenty-five (25) cents per hour. The minimum wage shall apply 

to common labor or totally unskilled labor. Other classes of labor 

hall be compen ated at rates above the minimum. 

SECTION 2. No person e·mployed in accounting, clerical, office, or 

sales work shall be paid less than the rate of fifteen ($15.00) dollars 

per week in any city of 500,000 population or more, or in the immediate trade area of such city; nor less than at the rate of fourteen 

dollars and fifty cents ($14.50) per week in any city of between 

250,000 and 500,000 population, or in the immediate trade area of 

uch city; nor less than at the rate of fourteen ($14.00) dollars per 

week in any city or town of less than 250,000 population. 

SEcTioN 3. This article establishes a minimum rate of pay regardle s of whether an employee is compensated on a time rate, piecework or other basis. 

SECTION 4. Female employees performing substantially the same 

work as male employees shall receive the same rate of pay as 
225 

male employees and where they displace men they shall receive the 

arne rate of earnings as the men they displace. The Code Authority 

hall within ninety clays after the effective date of this Code file with 

the Administrator a description of all occupations in the Industry 

in which both men and women are employed. 

SECTION 5. Equitable adjustment of compensation of employees 

receiving more than the minimum rates of pay herein prescribed 

hall be 1nade by all employers who have not heretofore made such 

adjustments and all employers shall within sixty (60) days after 

approval of this Code, report in full to the Code Authority concerning such adjustments whether made prior to or subsequent to 

uch approval; provided, however, that in no event shall hourly rates 

of pay be reduced. 

SECTION 6. A person whose earning capacity is limited because of 

age, physical or mental handicap, or other infirmity, may be employed on light work at a wage below the n1inimum established by 

this Code, if the employer obtains from the State Authority, designated by the United States Department of Labor, a certificate authorizing such person's employment at such wages and for such hours 

as shall be stated in the certificate. Such authority shall be guided 

by the instructions of the United States Departn1ent of Labor in 

jssuing certificates to such persons. Each employer shall file monthly 

with the Code Authority a list of all such persons employed by him,· 

showing the wages paid to, and the maximum hours of work .for such 

employees. 

SECTION 7. Wages shall be exempt from any deductions for pensions, insurance, or sick benefit other than those voluntarily paid 

by the wage earners or required by law. 

ARTICLE V-GENERAL LABOR PROVISIONS 

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

in the Industry or anyone under eighteen years of age at operations 

or occupations hazardous in nature or cletrim.ental to health. The 

Code Authority shall submit to the Administrator within sixty (60) 

days after the approval of this Code a list of such operations or 

occupations. In any State an employer shall be deemed to have 

complied with this provision if he shall have on file a certificate 

duly issued by the authority empowered to issue employ111ent certifi- cates, showing that the employee is of the required age. 

SECTION 2. In cOinpliance with Section 7 (a) of the .Act, it is 

proYided that: 

(a) Employees shall have the right to organize and bargain collecti-rely through representatiYes of their own choosing, antl ::;hall be 

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

labor, or their agents, in the designation of such representatives or 

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

of collective bargaining or other mutual aid or protection. 

(b) No employee and no one seeking employment shall be require 

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

from joining, organizing, or assisting a labor organization of his own 

choosing. 
226 

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

minimum rates of pay, and other conditions of employment, 

approved or prescribed by the President. 

SEcTION 3. No provision in this Code shall supersede any State or 

F ederal law which imposes more stringent requirements on employers 

as to age of employees, wages, hours of work, or as to safety, health, 

f:a nitary, or other general working conditions, or insurance, or fire 

rrotection, than are imposed by this Code. 

SECTION 4. No employer shall reclassify employees or duties of 

occupations performed for the purposes of defeating the provisions 

of the Act or of this Code. 

SECTION 5. All employers shall comply with the rules and regulations issued from time to time by the Administrator with respect 

to posting notices, bulletins and extracts from this Code. 

SECTION 6. Every employer shall provide for the safety and health 

of his employees at the place and during the hours of their employment. Minimum standards of safety and health shall be submitted 

by the Code Authority to the Administrator for approval within 

four ( 4) months after effective date of this Code. 

SECTION 7. Employees, other than maintenance or supervisory 

men or those necessary to protect property, shall not be required as 

a condition of employment to live in homes rented from the employer 

.or specified by him or his agents. 

ARTICLE VI-ORGANIZATION 

SECTION 1. A Code Authority is hereby constituted to cooperate 

with the Administrator in the administration of this Code. 

SEcTION 2. The Code Authority shall consist of three (3) individuals, or such larger number as may be approved from time to time 

by the Administrator, to be elected from members of the Industry by 

a fair method approved by the Administrator. The members of the 

Code Authority shall serve for a term of one (1) year, and no member 

of the Industry shall have more than one representative on the Code 

Authority. For each member of the Code Authority, an alternate 

shall be chosen to serve in place of the regular member at any hearing 

where the member of the Industry with whom the regular member is 

affiliated is charged with a Code violation. The alternate is to be 

selected from a member of the Industry other than that with which 

the regular member is connected. 

SECTION 3. In addition thereto, there shall be not to exceed three 

(3) member who shall be appointed by the Administrator. The 

members who may be appointed by the Administrator shall be without vote and shall be given notice of and may sit at all meetings of 

the Code Authority. 

SECTION 4. The Industry Committee shall conduct the election of 

the Code Authority. The method of election shall be submitted by 

the Industry Committee to the Administrator within thirty (30) 

days after the effective date of this Code. 'iVithin five ( 5) days after 

the approval of the method of election by the Administrator the "Industry Committee" shall call a meeting of the members of the Indu try to be held "ithin fifteen (15) days after the date of the notice. 

Notice of the time and place of the Industry meeting shall be sent by 
227 

regi tered mail ten (10) ay in advance of uch m eting to all memer f the Indu try. Voting 1nay be by per on, b. proxy or by 1 tt r 

ball t. 

In case of a Yacan y in th member hip of th Co] Authority a 

me ting of the member of the Indu try hall be ailed and held 

within thirty (30) day a"fter uch Yacancy occur . 

'E TI ~ ~ r:::. To fnrtlwr ciT ctua " th, poli i s of he Act th re , hall 

be cst.abli hed in the reaion \\e t of the Ro l y fountain , com1 ris- ing he tates of ,alif rnia. "T < hinoton regon, Idah T e rada, 

rizona and New l\I xi o, a Regional Control ommj t ce con ~ inv 

f three (3) members, to be electe by a fair method, approved by 

the Admirustrator, by the m mbers of the Ind try in the abo e 

name 1 States who assent to thi Code and agree to u tain their 

r a onable share of the xpen e of admini tering this Code. The 

Code Authority hall delegate to such Regional ontrol Commi tee 

such of its pow rs and dutie as may be necessary for the administration of this Code within uch region. 

SE TION 6. Each trade or indu trial association or group directly 

or indirectly participating in the selection or activitie of the Code 

Authority or the Regional Control Committee shall (1) impose no_ 

inequitable restrictions on member hip, and (2) submit to the Administrator true copies of it articles of as ociation, by-laws, regulations, and any amendment when made thereto, together with uch 

other information as to membership, organization, and activitie as 

the Administrator may deem neces ary to effectuate the purpo es of 

the Act. 

SEcTION 7. In order that the Code Authority and the Regional 

Control Committee herein abo' e provided for shall at all time be 

truly representative of the Indu try and in other re pect comply 

with the provisions of the Act, the Admini trator may pro~ide uch 

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

the Code Authority or Regional Control ommittee is not truly 

repre entative or does not in other respects comply with the provisions of the Act may require an appropriate modification in the 

meth c1 of s lection of the Cole Authority or Regional Control 

Committee. 

E TION 8. Members of he I ndu try shall b en iU~d to participat in and share the b nefit of the activitie of the ode Authority 

r Reo·j nal Control Connnitte and to parti ipate in the ele tion 

of the members ther o:f onl by a entino- to an l complying with the 

r quirements of this C le and u ·taining their rea onabl har of 

the c ·p n es of jt admini tration. Such rea onabl bare of the 

xp"n ·e of the ad mini tra tion hall be c1 termined by the ode 

Authorjty; subject to r view by the Aclmini trator, n the ba is f 

YolunH' ot bu in an ljor uch other fa tor a may b de med 

equitabl . 'x: "fl ?{ 9. N thin<r ntain <1 in thi Cod 

men ber of the ode !\..uth 

partner for any purp 

thority or Revional 1 ntr l mmitt e be liaul 

anyone for any act f an other memb r ffi r 

of th ode Authority r aional Control nlllli t 

any m mber of th 1 Anth rity r R •ai nal 
228 

xerc1 mg rea onable diligence in the conduct of the duties hereunder be liable to anyone for any action or omi sion to act under the 

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

SE TION 10. The Code Authority shall have the folowing powers 

and duties to the extent permitted by the Act. 

(a) To execute the provisions of the Code and provide for the compliance of the Industry with the provi ions of the Act. 

(b) To adopt by-laws and rules and regulations for its pro edure 

and for the administration and for facilitating the enforcement of 

the Code in accordance with the powers herein granted, and to ubmit 

the same to the Administrator for his approval together with true 

copies of any amendments or additions when made thereto, minutes 

of the meetings when held, and such other information as to its 

activities as the Admini trator may deem necessary to effect the purposes of the Act. 

(c) To obtain from members of the Industry such information 

and reports a are required for the administration of the Code. No 

individual reports shall be disclosed to any other member of the 

Industry or to any other party except to such governmental agencies 

as may be directed by the Administrator. 

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

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

and to pay such trade associations and agencies the cost thereof, 

provided that nothing herein shall relieve the Code Authority of its 

duties and responsibilities under this Code. (e) To make recommendations to the Administrator for the coordination of the administration of this Code with such other Codes, 

if any, as may be related to the Industry. 

(f) To secure from members of the Industry an equitable and 

proportionate payment of the reasonable expenses of maintaining the 

Code Authority and its activities. (g) To cooperate with the Administrator in regulating the u e of 

the National Recovery Administration Insignia solely by those members of the Industry who have assented to and are complying with 

this Code. 

(h) To recommend to the Admini trator further fair trade practice provisions to govern members of the Industry in their relations 

with each other or with other industries and to recommend to the 

Administrator mea ures for industrial planning including stabilization of employment. · 

( i) To consider proposal for modification or amendments to 

this Code an 1 make recommendations thereon from time to time 

to the Administrator which modifications or amendments shall become effective as part of the Code, upon approval by the Administi·ator after such notice and hearing as he may specify. 

(j) To appoint a trade practice committee which shall meet with 

the trade practice committees appointed under such other codes as 

may be related to the indu try for the J?Urpose of formulating .fair 

trade practices to govern the relationships between production and 

distribution employers under this Code and under such others to 

the end that such fair trade practices may be proposed to the Administrator as amendments to this Code and such other codes. 
229 

SE TION 11. In addition to the information required to b submitt d to the o e Authority all or any of th p r ons subject to 

the od , hall furnish uch tat1 tical information a the Admini - trator ma deem nece ary for the purposes recite l in Section 3 (a) 

of the Act to uch Federal and State agencies a the Adn1ini trator 

may de ic:nat"'; nor shall anything in this Code, relieve any person 

of an exi ting oblio·ation to furnish reports to Government ag ncies. 

SE TIO~ T 12. If the Administrator shall determine that any action 

of the Co 1e Authority or any agency thereof may be unfair or unjust or contrary to the public interest, the Administrator may require that uch action be suspended to afford an opportunity for 

inve tigation of the merits of such action and further consideration 

by such Code Authority or agency pending final action which shall 

not be effecti\e unless the Administrator approves or unle s he shall 

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

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

ARTICLE VII-TRADE PRA TIGES 

General Definition.-For all purposes of the Code, the acts describ d in. this Article shall con titute unfair practice . Any member of the Industry who shall directly or indirectly, through any 

officer, employee, agent or repre entative, knowingly use, employ or 

permit to be employed any o£ such unfair pTactices shall be guilty 

of a violation of the Code. 

RULE 1. Interference with OontJ·actual Relatio11.s.-No member 

of the Indu try shall make any willful attempt to induce a breach 

of any bona fide contract for the sale of roofing tile or to prevent 

the performance of any such contract. 

RULE 2. Defamation.-N o member of the Industry shall cause 

the defamation of a competitor by any false, misleading or deceptive 

act or ·tatement imputing to him an insecure or questionable financial condition or credit standing, or inability to perform contracts; 

or impute to him or to any of his authorized repre entatives dishonorable conduct or lack of business integrity or di parage the 

quality durability, or workmanship of roofing tile manufactured 

by such cou1petitor. 

RULE 3. Tying Oonh·acts.-No member of the Indu try hall 

require any per on engaged in the bu ines of buying and elling, 

or of u ina or in talling roofing tile, as a c ndition of the purcha e by aid per on of roofing tile from uch manufacturer, to 

purchas ·ell, use, or install only roofin tile produced by uch 

1nanufac urer or to induce or attempt to induce any per on to agree 

to refn ·e to purcha e, ell, use, 9r in tall roofino· tile pro lueed by 

other manufacturer . 

RULE 4. Di atfe ·ting 001npetitor Representath·e.·.- To n1 mb r 

of the Indu tr hall indu e or att mpt to indn ·e a ·ale. no· nt f a 

competit r t cea e to represent uch omp titor r a , le. man f 

· a competitor to leave his employ for the purpo of injuring the 

bu in of uch ompetitor. 

RULE 5. eo-ret R ebates.- To m mb r of th Indu tr hall make 

ecret payment or all wane of r bat , refund r lit. unearn d 

di counts or other allowa c , ~·hether in the f nn of m ney or 
230 

gifts or otherwise a a means of effecting or concealing price discrimination or grant to any person engaged in the purchasing, 

selling, or in tailing roofing tile of any special privilege, preference, 

or priority not offered to other persons similarly situated under like 

circumstances. 

RULE 6. Commercial Bribm·y.-. No member of the Industry shall 

give, permit to be given, or directly offer to give, anything of value 

for the purpose of influencing or rewarding the action of any 

employee, agent, or representative of another in relation to the 

bu iness of the employer of such employee, the principal of such 

ao-ent or the represented party without the knowledge of such 

employer, principal or party. Commercial bribery provisions shall 

not be construed to prohibit free and general distribution of articles 

commonly u ed for advertising except so far as such articles are 

actually used for commercial bribery as hereinabove defined. 

RULE 7. lnco1oreot Advertising.-No member of the Industry shall 

publish advertising whether printed, radio display or of any other 

nature, which is misleading or incorrect in any material particular, 

nor shall any member in any way misrepresent any goods, including, 

but without limitation of its use, trade marks, grades, quantities, origin~ substance, character, nature, finish, material contained or 

preparation thereof. 

R uLE 8. I ncorrect 111 arlcing or Branding.-N o member of the 

Industry shall brand ·or mark or pack any goods in any manner 

which is intended to or does deceive or mislead purchasers with 

respect to the brand, grade, quantity, quality, origin, uses, substance, 

character, nature, finish, material content or preparation of such. 

RuLE 9. Financ'ing Roofing Oont1·actors.-No member of the 

Industry shall finance, directly or indirectly, in any manner whatsoever, the operations of a roofing contractor, whether he is an individual, partnership, or a corporation. 

RuLE 10. Consi,qnments.-No member of the Industry shall make 

a hipment of roofing tile on consignment except in special instances 

where permi ion in writing shall be secured from the Code 

Authority. 

RuLE 11. The Code Authority shall cause to be formulated an 

accounting system and methods of cost finding and/ or estimating 

capable of use by all members of the Industry. After such systmn 

and methods ha-ve been formulated and approved by the Administrator, full detail , concerning them shall be made available to all 

member . Thereafter all members shall determine and/ or estimate 

co ts in accordance with the principles of such methods. 

RuLE 12. It shall constitute a violation of this Code for any 

member of the Industry to sell any product at less than his individual co t a defined in this rule, except to meet the competition 

of another producer: whose prices are not in violation of the Code. 

Co t shall include all direct labor cost, direct raw material cost 

(inclusive of tran portation and shrinkage), and a proportionate 

hare of all indirect expense, inclusive of maximum depreciation· 

(on active plants) and depletion allowances both computed according to Federal Income Tax procedure; but cost shall not include 

return on inve ted capital, interest on borrowed capital, developmental expense, selling expense, nor administrative expense. 
231 

RULE 13. Dropped lines, or econds, or inventories which must be 

converted into cash to meet emergency needs may be dispo ed of by 

any member at any price and on any terms and conditions, but only 

if sn h member not le than two (2) weeks before such eli posal, 

has filed with th ode Authority, a statement in writing, setting 

forth the fact of, and r a on for, uch proposed dispo al. 

R LE 14:. Underestimating Quantities.-No member of th Indus- try . hall knowino'ly under timate quantities required for a pe ific 

operation. 

RULE 15. P1·ice Dism·i17&ilnat-ion.-No member of the Indu tr hall 

discriminate in the price of roofing tile products between purchasers 

of the ame cla s, except for difference in grade, quantity, or quality 

of the product sold, or except for difi'erence in cost of elling and/ or 

tran portation or made in aood faith to meet competition. 

RULE 16. Other Unfair TTade Practices.-Nothing in this Code 

shall limit the effect of any adjudication by the courts or holding by 

the Federal Trade Commission on complaint, find, and order, that 

any practice or method is unfair, provided that uch adjudication 

or holding is not inconsistent with any provision of the Act. 

ARTICLE VIII-TERMS OF SALE 

The terms of sale of each member of the Industry, including credit 

terms, shall be uniform to all purchasers of roofing tile similarly 

situated and shall be uniformly enforced; provided that nothing 

herein contained shall prevent any member of the Industry from 

refusing credit to any purchaser of roofing tile or requiring pecial 

terms of payment, where in his judgment such refusal or requirement 

is necessary for the adequate protection of the account; nor shall 

anything herein contained prevent any member of the Indu try 

from using his discretion in the collection of delinquent account . 

ARTICLE IX-QUOTATIONS • 

Quotation made to different roofing contractors based upon the 

same e timate shall be in writing and hall be in all material re pects 

uniform: Pro' ided, that the term of credit may be varied in the 

ca e of any cu tomer to such extent as the member of th Indu ·try 

may deem nece ary for hi protection. 

The . ame rule shall be applicable to reYi eel qu tati n and in 

general uch quotations shall be submitted to all roofing contra tors 

who r iv c1 the orio·inal quotation, but it hall not be con idered a 

violation of thi provi ion to. withhold revi e l qu tations from any 

roofing contra tor who recei red the ori()'inal quotation but who, 

accordin<r to information received by the member of the Inclu try, 

and believe by him t be reliable, i not at the time f the i , uance 

of the revi d quotations, intere ted in recejYing u h quotation or 

who would be unabl to make u ·e of it. 

ARTICLE ..4 ..... -Pnon TI ... 

apacity of th Indu try hall be gi ter d by 

the member f th In lu try with th otl Authority. Th intention of per n eno·ag or int ndino· o ng a in the indu try to 

in tall additional kiln car acity, ex pting how r, m dernizati n 
ll lllllllllm~~rr~~~~~~~ ~~~~~~~~~ 1\1ij~ i~lillllllllll 3 1262 08486 8644 

232 

or replacement of existing capacity, or to devote to the manufacture 

of clay and shale roofing tile kilns not used for such purpose during 

the three year period ending February 1, 1934, shall be reported to 

the Code Authority. The Code Authority shall make such recommendations with respect thereto to the Administrator as it may deem 

desirable to effectuate the policy o£ the Act. 

ARTICLE XI-MomFICA TION 

SECTION 1. This Code and all the provisions thereof are expressly 

made subject to the right o£ the President, in accordance with the 

provisions of sub-section (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 o£ 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. 

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

may be modified on the basis of experience or changes in circumstances, such modification to be based upon application to the Administrator and such notice and hearing as he shall specify, and to become effective upon its approval by the President. 

ARTICLE XII-MONOPOLIES 

No provision of this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. 

ARTICLE XIII-PRICE INCREASES 

Whereas 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 recognized that price 

increases should be delayed and that when made the same should 

so far as reasonably possible, be limited to actual increases in the 

seller's costs. 

ARTICLE XIV-REGISTRATION 

\i\Tithin thirty ( 30) days after the election of the Code Authority 

each member of the Industry shall register with the Code Authority. 

All members of the Industry who engage in the Industry thereafter 

shall likewise register with the Code Authority. 

Registration of a member of the Industry shall include the full 

name and mailing address of the member. The time limit for the 

registration of any member of the Industry may be extended whenever, in the opinion of the Administrator, the time limit as provided 

herein might cause an i.nju tice to any member of the Industry. 

ARTICLE XV-EFFECTIVE DATE 

This Code shall become effective on the second Monday after its 

approval by the Administrator. 

Approved Code No. 389. 

Registry No. 1036-1-02. 

0