For sale by the Superintendent of Documents, Washington, D.C. Price 5 cent
Approved Code No. 218
Registry No. 1023--19
NATIONAL RECOVERY ADMINISTRATION
CO8DE OF FAIR COM'IPETITIONJ
AS APPROVED ON JANUARY 22, 1934
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
This publication is for sale by the Superintendent of Documents, Governmuent
Printing Office, Washington, D.C., and by district offces of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THIE DEPARTMENT OF COMME~RCE
Atlanta. Ga.: 504 Post Offce Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mlass. : 1801 Customhouse.
Buffalo, N.Y.: Chat~lullr of Commerce Building.
Chanrleston,. S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Clev-elandt, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Buuilding.
Detroit, M~ich.: 801 First National Bank Building.
HEouston, Tex.: Chamber of Clonulnerece Building.
Indianatpolis, Ind.: Chamber of Commerce Building.
Jackzsonville, Fla.: Chln inher of Commerce Building.
K~ansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Callif.: 1163 Bouth Broadway.
Louisville, K~y.: 408 Fe~de~ral Building.
Mem~phis, Tenn.: 229 Federal Building.
Miinuupoli<.lll~ Minn.: 213 F'ederal B3uilding.
New Orleans, La.: Room 225-A, Custombouse.
Newv Yorki, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 ]East Plume Street.
Phi~ndltlll linr. Pa.: 422 Commercial Trust Building
PIittsburgh, Pa.: C~hamber of Commerce Building.
Port~land, Oreg.: 215 Newi Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Custombouse.
Seattle, Wta~sht.: 800 Federal Office Building.
Approved Code No. 218
Registry No. 1023-19
CODE OF FAIR COMPETITION
As Approved on January 22, 1934
Section 2 (c) of AIrticle III, Hours (p. 302), should read as follows:
L"Perlsons enganged in managrerial or executive capacity who r~eceiv-e
not less than TH-IRT1Y-FI[VE DOLLARS ($335.00) per w\~eeki."
U 5 GOVERNMENT PRINTING OFFiCe 19Pr
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in 2011 with funding from
University of Florida, George A. Smathers Libraries with support from LYRASIS and the Sloan~ Foundation
A.Lpproved Code No. 218
CODE OF FAIR COMPETITION
As Approved on January 22, 1934
AQPPR)OVI~NG CODE FO~R FAIR COMPETITION
Aln appjlie.ntion havring~ beent~ dulyv maderlt puzrsuant to alnd in, full
comlplian ce with thle pro'visio~ns of Tit~le I of the Nrtio~nal Inldustrial
Recovery Act, apprlovet d June 16i, 1933, for apprma''';l of a Code of
Fair Compleftiton for the S~late IndZustry, and he~ncings ]having beenl
dulyT beh1~ thereon and thte anrnexed report on. said C'ode, cocntaininlg
findlings w\ith~ rcsp~ect thereto, having been miadle aInd dirtc~tedt to thle
NOWrr, THEREFIiORE, on.behallf of the Presidelnt of the Unitedl
States, I, Hugh1 S. Johnhon, Adminis;tentor,~ for Indusitriall Recovery?,
pursuant to authority rested-) in me by Exec~utive Orders~ of the Presi-
dent, includlinr 1Exe~cutive Order Njo. CGM,3-A, da~tedl Decemlber 30,
1933., and otherwise, do her~eby inlcorpora:te by r~eferecelc said annlexed
repor''t and do findl that said Code c~ompllies~ in all re~pctt s with the
pertinent prIovisions andi will promote thie policy andl purpo~~Se of "aid
Title of said Ac~t; and dlo hiereby ordercl tha~t said ~Codle of Fair Comn-
petitioni be andi it is hlereby appr>Ioved.
HUGH S. JTOHNP;SON.T
AdmIN;fnisraOr' for' Ind~ustr'ial Re.'1Cover.
W\. A~. HAIlnI~nia1
H'IASHINGTON,? I.C., JUN Mlary 9~, 10934.
The? Whliite Hiouse.
SmR: This is a report on t~he Code of Fair Competition for the
Slate Industry, a hearing on wcThich waTs conducted in W~ashington
on the ninth of November, 1!,:0, in accordance with the provisions
of the Natlional Ilndmit rial Rtecovery Act.
PROVISIONlrS OF THIE CODE AS TO WAGES ANrD HIOURS
This Code provilles- for a work week of not more than forty hours,
ave~rag~ed over a six mlont'hs' period, wiith limits of forty-eight hours
for any wee~lk, six days for any -week, a~nd nine hours for any day.
The following exceptions are permitted:
(a) EI~mployees engaged on emerg-ency maintenance and repair
work, but they will receive time and one third for overtime;
(b) Slatelowl:er.-,- shipping clerks, truck drivers, and watchmenlPI 1
wrho are limited to fifty-six hours per week;
(c) Those engaged in managerial or executive capacity, who re-
ceive not less than $30.00 per week~; and
(d) Travelling salesmen.
The maximum hours apply to the total time of each employee,
whether workings for one or several employers.
This Code provides for a minimum wFage of 35 cenlts per hour,
except in Virginia, the only southern state producing slate, where
the minimum is 30 cents. WaVitchmlen are exrcepted, but must be
paid at least $15.00 per wYeek, and with the permission of the~ properly
authorities, handicapped persons may be excepted. Tle~se minanunII1
wagesrc apply whether an employee is compensated on a time rate,
piecework, or other basis. Wages must be paid monthly or oftener
and leav"\ilon, is mlade for equitable readljus~tment of walges above the
No person under eighteenr l years of agre may be employed. Emz-
p3loyers must endeavor to provide continuity of emIIPloymentll and for
the safety and health of their employees.
Leox(IOMIC EFiFECTS OF TH-E CODE
Tlhe value of the! products covered by the Code fell fromt a peak
of over nine million dollars in 1925 to eight and a half in 1929 and
to le~-- than. twvo million dollars in 1932. The Slate Industry is
heavily hul~rdenedl by (depr,1ession, by stagnant construction, b~y severe
losses in past years, and byv rival maiterials. Employment has
droppedr to about half the npeak figure.
D~ue to these, cond~itionls, it is doubtfurl whiethier aioptioni of this
Code will result in a nlarge irnunediate~ increase inl emiploymentnt but
it is hopedl thiat the istabilizingi effect of the? mlarkettinlg provisions
will protect the present two thousawl~ empnloyees and1( with increasln-
ing* bus~iness permit of some ilccncrease
Thc mlinlimumll wagl~,es; are appr~oximatery ly ouble the p11reent mnum-
mni. andl an incIrease in pay3 rolls of 25:'( to 30%j~ is es~timlated~ by
thef .lllsponsors of the Code.
Thle Assistant Deputy Admlinlistrator in hris final report to me on
said Code having foundl as herein set forth andt on thle Unw~is of all
the pr~oceed~ings in. this matter~~~:
(a) Said Code is weli l designed l to promoted the policies andi pur-
poses9 of 'Title I of the Nationall Indullstrial Rcovlery Ac~t, includling
~emlornI of obstruc.tions to thie free flow of interstate~t andi fore~ignl
conun11eree' which. tend to dimi~inish the amount thereof andl will pro-
vide for the gr~relnel -welfare by p~romollting thne o~rganlizaion of
industry for the purpose of cooperative no-tio~n amngni the trad~te
malnagementt under1 ade uate gove~rnmrllenttal sanctionsl and1 super-
vision,ll by (1 elani naut i ng un fair competitive in-a11.t i(e, by pr~omot i ng~ the
fullest pos,ible utilization of the present produlc~tivc~ 1npc~l~city of in-
ductr~ies, by avciding undue Irestrict~io n olf prod-uction (exceprtt as may
be temlporarily requlrired), by incrreasinga the cocl~rnsumption of indutlrl~iall
andl agricultulrar l plrlroutsn through h inr''~l;crasing purchasing~ power, by
I~reucingr and~ re~liev'ing~ unemnploymentlt by improving standrltlds of
labor, and byb ad" otherwise r~ehablilitatingr industry.'
(b) Said Industry normally employi,\S Illntmore than r01).000 anI-
plioyeesi; and is not c~lassi fiedl by me as a major indtustry.'
(c) Th'le Code~t as approvred complliesi in all respe~tcts w~fith1 the
p'ertinernt pr~ovi ions~ of saidi Title of said A~ct, incjuluing~ writhocut
.flmita~tion Subsection (a) of Section 3, Subsection (a) of Siection 7,
and Subsection (b) of S~ection 10 thlereof; and thlat the applicant
association is an induslltrial associatio nl truly Icrepresentatiive of the
afor~esaid indusltlry; andlt that said association illnposes~ no inequitable
restrictions on. admiission to memllber~ship, therecin.
(d) The Code is nort designed to and wFill not p~ermnit monopolies
or monopolistic practices.
(e) 'The Code is not d-esigneda to andi wvill not eliminated or oppress
small enterprises and w~ill not operate to d7i-cr~imilnate against themn.
(f) Thlose e~ngaglted- in other -tops' of the e-~cnomllic: proc~(ess have
not been dlepr~ived of thec r~ighlt to boe heard prior to approval of
For these reasons, thclerefore, I have approved this Code.
Hunt(;1 S. JoI-Ilson,
JANCUAIRY j29, 1!1: .
COD)E OF FAIR COMPETITION
ARTICLE: I POIPO)SE~
To effectuate the policies of T'itle I: of thie NI~ational Industrial Re-
cov-eryS Act and for the purpose of conserving a natural r~esour~ce in
rehabilitatingr the Slate Industry and enabling it to do its part toward
the restoration anrd maninlt~nance of highest practical d~gr~ee of public
welfare, the followctingf provisions are established as a Code of Fair
Competition for that Industtry, and shall be the stand'ards~ of fair
compe~titionl for that Industr~y and binding upon every mlember
SEcTroN 1. Thbe term Slatet Industry or Industry as usetd
herein means and includes the quarrying and selling, thle pr~occssiing
andl selling~ and/or the selling~ by age~n~cis set up and controlled by
a qurrL"''ier or group of qluarriers of slate and slate products (esc~epting~
slate gFrannulets) and su~chT relaltedl branches or subdlivisionsl th~ereozf ns
may from time to time! be included undler' the pr1ovisionsl of this
Code b~y the Pre~sident after such nocticet and hea~ringF as he mary
p)resc r ibe.
SEc. 2. Division)l of Industr~y. The terms Division of Indu~str~y "
or Division shall mean and include the followuing~: ( 1) The Sla~te
Roofing~ Division, which deals with slate used for rc-oofing purposes;
(2) The Structural and Electr~icaul Division, which dea~ils w\ith~ slate
used~ for sitru~c~tur~al and electrical pu~rp~oses; (3) Thle Blatckboardd
Slate Divisionl, which deals with slate usedl~ for black~board~2 pur~poeses
andt also sulch other divisionls as may be hereafter established.
S~c. 3. Regions. Thle term '" Regfion shall melanl and inlcludle
tefollow~in(* areas: (1) Thle? Maine region, which, shall include the
State of Manine; (2) Thle Nfew York-Vfermont reg~ionl, which. .shall
include thre States of Newi~ Yorkr and Vrmlont; (3) The Pennsyl-
v~ania-Mlary3la nd region, which shall inlcludle the ,States of Penlnsyl-
vania andi Marylandt, and (4) The Virginia region, which shall
include thle Starte of V irginia; (5) other regions or areas in wh~ichl
q~uarries are worked or may be hereafter developed shall be included
SEC. 4. 1stictl' Thle ter~m ]Distr~ict hall mieani andi include a
locality in w~hichi one or mor~e quarries are working the same or
adjacent veins producing sulbstantiallyy the samle kind of slate.
SwE(. 5. The t0 ra~ '" employee "! as usedc~ here~tin inchides~~ anyone ex-
cept a mlember of the industry engag;'ed in the Slate Indlustry in anly
capacity receiving compensation for his serv~iices, irrespective of the
nature or mlethlod of paym'llent of suchl compen-ation.on
See:(. 6i. The term employer as used herein inchaksl~~ anyone byr
wThomIY any such employee is compensated or employed.
SE:c. 7. Th'le termn "i member of the industry" includes anyone en-
gaged~L in the Sla~te Indunstry as above defined, either as an cmplol~~yer
or on his or its own behalf.
SEc. 8. The terms "L President "', "A~ct ", anld ("Admi~inijst'ffratr as
used herein shall mean, respectively, the Pr~esidlente of the U~nitedc
States. the Nationazl Ihndustrial Recover~y Act, and the A~dministrator
of said Act.
SEC. 9. Thle terms "~ Code Authority ", "'Division Conunl~ittee~ ", and6
" District and- Regional Committees as used~ herein shall mean the
administrative agnc r gncesetalshd usun t ti Cd
as hereinafter provided.o~aece salse usatt hs~d
SEc. 10. The term1 "L member of the Code '" includes any member of
the Induzstryr wcho shall expressly signify assent to this C~ode.
SECTION 1. AIrXil1mum H~ours. No employee shall be permitted to
wvorkl in (Iseems- of for~ty (40) hours p~er week a~veragedl over any six
(6) months' period, fortly-five (45) hours in any one (1) wveek nine
(9) hours in any one (1) dlay, or six (6) days in any seven (7) day
period except as herein provided.
SEc. 2. Ex-ceptions. These mlaximlum hours: fixed in Section (1)
shall not apply to:
(a) Employrees on tiemergecy? maintenance or emergency repairs
work, involving break-dlowns or protection of life or property, but
such employees shall be paid one and one third (1ys) times the
hourly rates for time in excess of nine (9) hours p~er day or forty-
five (45) hours per w~eek.
(b) Slateloatders, shipping ele~rks1, truck drivers,~ firemen, and
watchmlen, pro~vided~, however, that they shall not be permittedt to
w\orkl in excess of fifty-six (56) hours in any one (1) wFeek.
(c) Persons engagedc~ in managerial or executiv-e capatcity who
receive not less than thirty dollars ($30.00) per week.
(d) Persons engag~el as traveling salesmen.
SE(. 3. ClOmbinedl Time. No employer shall knowingrlyperm~it
any employee to work for any time which when to-ta~ledr with thatC
already performed with another employer o~r emrployers exceeds the
maxilmuml permitted herleini.
ARTICLE IV- --AGES
Seem.lc s 1. M1\ininannll wage~. No employee except watchlmen shall
be pa2id at less than the rate of thirty-five cents (350) an hour,
except that in Viirginia emp~loyees~i may be paid at~not less than the
rate of thirty cenlts (30(r) an h~our.
SEC. 2. Piecework. This article establishes a minim-uml rate of pay
regardllTess of whlether an employee is colupon-ated~lt~ ^on a timne ra;te,
piecew-corIk or other basis.
Se1c. 3. Rendcjustilncent of Wag~es. Unless su~chl runs;lju-tmenclt hasli
already beenl 11nd,1~ Ir'lll.ca.i of ther operat~lionI Of the Presh~lent's Re-
emloymen\'ll~lt Agreemen(.11'1t, t~he waveI rates of all emlployees~ receiving
morel~ than the minimum ra;tes- plresc'ilribe above,\ but bI~ thanI thirty-
five tlollars ( 3.0)prwkhllbeqialradut.
SI-:r. 4. Watchmen. Watchmenl~! shall niot be Ipaid less thoul at a
ra~te of fiftreeni dollnes1' ($15i.00) 1"(''E \\ek.
S~c. 5i. Payment. All wages1 shall be paid in lawful (.urrency('3 or
by nego~ctiable~~ cheekl, at least once.~ a, monthlf. These w-ages shall be!
erXenalt frPOm anyr paymenltslt for pensions, in nrurn-ec'~ or 'l('k benel(fitS,
othcr tha:n those voluntarily paidl hv! the \vagec earners, or Icrjlqu~ire
SEC. 6. Huicanldl~eapp Per~sons.1 A person whose learning~ eque.-ncity
is lim~itedl beenu~se of age or physical or mental hlandicap1 ma~y be em-
p~layed~ on- light work at a wage below the mninimumz establi hedl by
this Codelt if thne employer o~btains fromll the Sta~te Au~thorityv desir-
nated by the United States Department of Labor a certificate author-
izingr his employmlent: at sulch wagesC~ and for slc~h hours a~s shall be
stated` in the cer1tifilncate 1Each employer shall file with thie Crode
Authority a list of all such p~elcc.rlon employedt by h-im.
A-Rrcu;E V-G-CI:ENERAL, LABOH? PROVISIONS
SEiCTION. 1. Riights of L~abor. (a) 1Employees shall have thze right
to organ'"izej and b~argninl collectively through IrI!Iepresentativesr. of their
own choosing, and~ shall be frece from the inlter'fencl''le, restraint, or
coercion of employetrs of labor, or their agents, in the desiglnation of
sulchl represe~t ntattives or in .lelf-organization or in other concerted
activities~ for the purp~oie ~of coclleltive b-argllinling or other mutual
and or protection.
(b) No empllloee andi no one seeking employJmentl shall bere-
quired~ as a co~nditio- n of employmenl~lt to join. any compan1Iy union or to
re r~ain fromll joiningY. Organizing1, or ~ss~istmy~L a Inh~or o~rganization
of hiis own choosing.
(c) Empllloyers shall comlllly with the ma ximumllll hours of labor,
nunununtllll ra:tes of pay, andt other~l conditions of empllloymrent approved,cl
or prescribedt' by the Pretsid~ent.
See.. B.Child Labor.Epoer hl otspyan esn
u~nderi eighteenpl (18) y~ears- of age.
SEC 3 $fteLaw. within each~ state nlo prov,\i-io~ns of this Cotle
shall .-suerletle any laws~ of such state implo1ing more string~ent re-
qu~irementsilt regulating the~ age of erinployeecs, vae, huso ok
o~i health, fire, or grlelnerl worklingl conditionls, than under the Codec.
S1:.4-. Companyl"S Homellts andlt Sto~re. Enipllloyeesi othler than
ma~intenance? or supervisory men'1 or tho(Se ne'(Cessary to prtc~fct. the
pr'opelty' shall nlot be I~required as a co~ndfitionl of empl oymellnt to
live inl homesI~ rentled fromll theC emp11loyer' or to tradelt aIt thle store
sp'ec~ifiedl by the empllloyetr.
SEc. 5. Safety and~ Healthl. Ea;chl employcr will us~e his best en-
decavor to so administer w~orkr in hlis charge'~ as to prov,\ideP a maxi-
mumII1 prlact'icable conltirnuity of empllloyment~' ll of hIjs: empllo!.ees, and
for their safety andi health d~uringl the hlours~ of their empllloymrlent.
SEC. 6. Ree'clalSsifi(. ntion.! N;o employer shall :reeksrsify employees
or duties of occupa,~tions.- performed or engage in any other subter-
fuge for the purpose of defeating the provisions of the Act or of
SEC. 7. ]POSting.-All~1 employers shall post complete copies of this
Code in conspicuous places n(ce s4ible to employees.
ARTICLES VI --MARKLETING PRACTICES
S;ECITION 1. Open Price Policy.--(a) Within twenty (20) dlays-
after approval of the code by the President all memb~lers of the
Indutry~~ shall publish, and from. time to time thtlereafterl, as condi-
tions require, may revise their price lists, including list ~r~ic~es, terms
of! delivery, and cash. discounts, together with trade discount sheets
applying to each class of customer, for each recognized-,st anla rd
classification of slate and slate products which. they offer for sale.
They shall deliver such price lists and trade discuount sheets arid
revisions thereof to thle Slate Industry Code Authority ten (10) thlys
in advance of the effec~tiv-e date thereof, unless the Slate Industry
Code Authority shall authorize a shorter period. Sufficient. copies
of such price lists, and revisions thereof, to.gethler with discount;
sheets and any changes therein, withn notice of effective date specified,
shall be delivered to the C~ode Authority to permit of immlledialte
sending of same to all known Members of the Industi-y, selling the
same slate products, who thereupon may file, if they so desire, revi-
sions of their price list and/or discount sheets to meet the price first
filed which shall become effective upon the date when the revisedcr
price list or discount sheet first filed goes into effect.
(b) No Member of the Inidustry shall sell tlirtc~tly or indirectly
by anly means whatsoever any product of the industry covered by
the provisions of this Article at a price lower or at discounts gr~enter
or on more favorable terms of paymlent than those provided in his
cw ere~cnt price lists a~nd trade discount sheets for respective classes of
Rev(. 2. No Memb~ler of the Indlustr~y shall by means of any secret
retbalte, special discount or by selling or offering for sale nonstandard
grade'lCs, sizes, dlimensions or c~lassiicfitcatin of slate and slate products,
or other means attempt to violate! or evade the terms of the Code ~stt
forth in this Article.
SEc. 3. Liquidation of Stocks. Inventories of slate which must be
liqulida~ted- by any Meml!ber of the Industry may be sold at such prices
as are necessary to move slalte into buyers' hands; however, all such
stocks must be reported to the Slate Industry Code Author~ity and
dlisposed'l of subject to the approval of that Authority.
SEC. 4. hSelling~ Below Cost. (a) Except as specified in Section
3 of this AI~rticle no M/ember of the Industry shall sell or exchanges
any slate or slate products at a price or upon such terms or condi-
tions as will result in the purchas'"er payingD for such productst less thanT
the average district cost of tha~t Meml~berl of th~e InlduStr3'y' district for
(b) The mnethodsrl of determining, and the agCencies who determine,
the average clistr~ict cost shall be establirshed~ by the Code Authority
subject to thec approval of thle Admllinist';frato; but in compull~ltin~ the
avecrage district costs fromll irlilvidualnl membrlll s'S cost I'.recordsl the treats
of at least that 40":. of thle Ml~llembes of thle Imr n trytl~ of each, par~-
ticulllar distr~ic-t hav-ing( thle higrhes~t costs shall be (st.luded.rl 11ltl his
average~Ic district cos~t is ava~:ilablle. no(- Mem~lber of the Indlustry shall
sell or excha't nge~ any p~roduclrt. bellow\\ hli; own lindividlual cost, comn-
pL'ted~ by acount)llling~ methlc.ds establlished~. by the Cath. Aulthority and1(
applrov\edl by the A<1miniiis ~tcrar, exscrlt to meet the compet~citionr of a
Membellt~ r of the Industry hnavi n a lowver cost for the stame prIne' It.
(c) Thelr Codelt Authority shall establish. a unl~ifornll melthol(d of
neonin utal orteInutysubject to the approu\`;l of the~
Administra~torl. Ealch Member~c l of the Indusrltry3 shall use a cost ac-
~oulnt i ng syst~eml of least as d~etailedl as thatc to esnhlished~l by the Codle
~Authrorityv. But the de~tte ~rm ina 1t ion~ of a Member'l~rs ov \e rage~ cost for the
purposes" set forth in Subsc~tionrs (a) and (b) of this :Section .,hall1
not include: cdepree~cintionl interest onl enplital, anrd. reserves\c for con-
ting'elc~ies, or other purproses.
(d) The provisions of this Article shall apply" to all stc~rk4 of
Miembersl of the Indu ltry3 now on hand, as w\ell as to future protdue-
tion, ece-~rpt that all coculntrnt for d'elivery! of slate enlte~red inlto prior
to thec alpprovalu of th~is Co-del by~ the Pre idenrrt shrall be execu~tpl as
per agrrleed ter~ms. unless by! voluntary aIgreemellrnt thle cocntl1tractin
parties set newy termse.
S~E('. 5. Sa~leCS TermnS arol1 Co~I(;uOItion.-- (a) Aill members of th~te In-
dlustryT~1;I .s alel aot andlc mal~intain such unliformll credit and contrnetl\
terms a7nd other unlifor,11! fair, alnd equlitable sales penel'tices~ as estab-
lishled byv the Code Aulthor~ity within the approvl~c, of the Adcminist;tor, tr
(b) Withiln ten (110) dlay after thec e~ffec.ti\-e date of this Cloder.
eac~h M~tllembe of thle Indust~ry shall p~ublishl and file? with the Codle
Authority all quallifientions which have beenl established byS hliml to
dretermnine thle pr~ices~, termsn. or condlcitionsl of sale made applicable
by hlim to the Ili ffelrent classes of his tra de or ('n turners'.-. for11 prodnets'f~
covetredl by thlis Codle. He: shall pul~llishl and file promptlllyf3 withl the
Coder Authority any~ c~hanges madce by him in whc~ quallific~ti ions and
any- add(itionlal quailifienit ions.-
(CI) Each membe~~tr shall tile at such times. in such mannel~?r, adl at
such places u s may1~ ber deiglnate d by~ t~he (codel Aulthor~ity~ the name~~s
andl loca;ti~nss of all d-irecct sales age~nts, bran1Chl offiie conunssli;~on
sale o~f their prodne~~t.
A Codel Auithor~ity is herebyl~3 consrtitulted to admllinlister' thi-( rcode
in ncoldlrdanc writhl the prvcisions~ of thle Act.-
SECTIIox 1. Orga~nizationl and1( Constitiflionl of the CodeC Authoritl'jY.
(n) Thle Code( Aulthorlity Shall co~nsist~ of thel P'''~~rell i tof the
National iClate Assc~riation. fromt time to timel~ inl office. in\-oJ (2)
individuals rornl eachl dlivisionr of theind tryllfl~ ele('tedl byadfo
mlemnbers of the C`ode in each respective livisionl by a I1fai mtod
of select ion nppr~o-edl by) the A~~hnin~istratto B~ut in no eve~nt, o long
as thercle arIe onlyl three (3~) d7i visi ons, shall the dli visionl representallt zt i (s
vania-MIar~yland Region or two (2) fromt the New York-Vermllont
Region1, or one (1) from11 the Maine Region. Whlen maltfters.c pertain-
ing to thle r~oofingr-slate division of the Industry are brought before
the Cod~e Authlority an individual elected by and from the memnberIs
of thze Cfode in thle Virginia Region. shall sit with. the Code Aulthocrity
with full voting power. T'he Administrator, in his liscr~etionl, may
appoint not more thanll three (3) additional members, wiCthou(llt vote, to
represent the Administrator or such groups or inte~restsi as he may~
specify or approve, to ser-ve for terms of twelve months.
(bc) In each region there shall be selccttedl, byT methods approved
byv the Admlinit Iltrao,' suLch regional and district committees as may
be required, to assist thle Codle uAuthorit~y in the administration of thle
Code under suchl regulaltionsl as the Code iAuthority may provide.
(c) The National Slate Association shall: (1) Impose no inequi-
tatble restrictions; on. membership, and (2) submit to the Admlinlis-
t-rator true copies of its articles of association, bylaws, reg-ulations,
andf anly amendments when made thereto, together with such other
information as to mlemlbership, orlganlization, and activities, as the
Admlinistrator mlay deem necessary to effectuate the puxrpose of the
(dl) In order that the Slate Industry Code AIuthorityr shall at all
times be truly representative of the Indcustr~y ancd in other respects
comlply with the provisions of the Act, thne Admlinist rator~ may pro-
vidie suceh hearingbs asF hie mlay dieem proper; and thereafter if hne shall
find that the Slate Industry Code Authority is not truly represen-
t;utivet or does not in other respects compilly with the p,rovisions of
th~e Act, miay requjire~t an appropriate Imodificentioni in the method of
selection of the Slatle Industry Code Authority.
8s(c. 2. Powersl andc Dutiers. Thre Slate Indltustry3 Code Authority
shattll have the following ounties andX powers to the extenlt pcrmnitted
by the Act, subjetrt to the right of the Administrator on, review to
disapprove any action taken by it.
(a) To use such trade associations and3 other ageccics as it deems
properly for the calrrying~ out of any of its activities providted for
herein and to pay such trade a wc(intio ns and ag~enl~cis the cos~it
hereof, provided that nothing herein shall relieve the Code Au-
thority~ of its dulties or r~esponsibilli i t ie under this Code and that
such trade aZsscia2tion2s and agencies shall at aill times be subject
to and comply with provisions hereof.
(b) To obtain from members of the industry such information
andl reports as a rle requliredc for the Administration of thne Clode and
to provide for sulbmissionl by members of such information and
reports as the Admzinistrator mayr deeml necessary for the purposes
reccitedl in Section 3 (a) of the Act, which information and reports
shall be submitted by mem~lbers to such administrative and/or gov-
~r~nm-enlt agencies as the Admnin~istr~ator may designate; provided
that nothing in this Code shall relieve any mlemlber of the indlutry
of any existing~ obligactionsl to fu~rnish reports to any government
a~gency. No ind-ividual reports shall be disclosed to any other mem-
bers of the industry or anly other party except to such governmnental
nr~eencies as may be dlesignnate b~y the Administrator.
v(c) The C~ode Authority may designate a planning board or com-
mIittee whose function and duties shall be the bettermrent of the In-
clust~y, through imnprovementn of condtitiolns w~ithin the Indusltry andt
thrug copeatve ctonwith other industrial groupll~L -nhject to
thle! a pprm-a'l of the Codle A~uthzority.
(d) Thet Codc Aurthor~ity, upon its own initiative, upon~r request of
the Adminis,;tra;tor. or- ulpon1 complaint in wr~itinler by an interested;
party or~ groupllj. may mlake~ sulch inqruir~ies or investigaj os s ayb
necerssary to adminis~te r effectively the prov).11(i1 iOn f thliis (Code.
(c) A(llembersi of the Indusltry shall be enlti~tled to pari'tic~ip~ate in
andi sharle the benefits of thne lc~tivities of the Coelc Au~Ithril ty andr to
par~ticipa't e in the wclrection of th~e nFmembers thereof bly ;eventing to
and~ comply~ing with the I~'llrequirements -of this Codle ;1wlI so taimnll
their r~ean~crable shr11e of the exp~enses of its inlitiationl and admin,
i~strautionl. The rea'~wnablel~~ share of the expen es' of its initiationl andi~
administrantio n shall be dectermlined b~y the Code A\uthority, subject
to r~eview- by the Adlministrator, on the bas~is of volumtlle of busl.-iness;
and/'or such other f::actors as may be dee~medl equitablet to be taken
(f) ALny inltret~ledil party shall have the right of ololpli nint to
the Code Au~thor~it a ndn- a. plr-lrompt. hearng a;1 nd dcci sion th~eretolInl.uner
such. rules and regulations as it shall presFcribe, inl r~esplcrt to any
act of any ag~rent or aIgency' designlate d byr the Code Aulthcr~ity to act
in its b~ehalf.
(gE) Nothingf C'Onta;ined in the Code .,hull be dleemedl to constitute
atny of the members theretof partnlers for an~y purlposei. Na mlemlberl
of the Code shall be liable in any manner to anyone for the act of
anly mlember or agelt, of the, Code Autlhorit~y performed pursu~nnlt to
the povisions of this Codie. N~co member of the Code and no memberllll
or agency of thre Code Authorityr shall be liable to nlanone or in any
malnrner other than as provided in, the act., or in the Code. for any
act performed in accor~dance with, or for any failure to act r~equired.
by, the p-rovisions of the Code.
ASRTICLE VIII.-TRADE FIIcTIcE~s
Thel following prnc~tices constitute unfair m~ethlods- of competition
for members of the Slate Indulstry and arec p~rohlibitedl:
SEcrms 1. False Mlarking or Braning.-The~'lI false markl'lin~ or
bra~ndcing~ of an- product of the Sla~te Ind'ustry~ which has Ilth tend-
ency to mislead or receive customers or p>,lropc~tive on tomers'l',
w~hetherl as to the rrradel, quality, quantity, .illsfubstce, (.lll;churnet, na-
ture, origin, size, finish, or preparatio n of any. prodne~lt of the Slate
Int d u~t r y.
SEC. 2. Tl1srepresentat ion or Fialse or M~isleadling Advrcltisiing.--
The miakingi or causing or k~nowringly permnittingr to be madl e or. pub-
lishe any alsemateiayinaccurate, or dleceptive tatement byp
way of advertlse moenoril otherwise, wh~cther c~oncer~ning the gIrade,.
quality, quantity, substance, character, nature, origin, size, finilsh. or
prepanrationi of any product of the Slate Indulstry or thle credit sterns,
values, policies, or servicess of ainy member of thle Sclate Industry,?
having the tendency or capacityr to miislead or deceive cus~tomerls or
SEC. 3. COrlnmeremi l B3r~ibery.--No member of thec Imllusry.;i shall
giv-e, 'er~mit to be gienl, or directly offer to gvayhn au
for the pulrpose of infiltnening or rewardin g the action of anly em1-
ployeer, agentlf, or` r~epresc~cntative of another in relation to the b~usiness
of the emlplo~yer of such employee, the princ~ipal of such agent or the
represented party, without the: knowledge of such eplol~lyer, prin-
Scipal or party. Cc~lonier~cial briberyJ provisions shall not be con-
struedl to prohibit free and general dlistribl:utionl of articles comm-only
use fr dvetiin ecepc~lt so far as such, articles are actually usedl
for (onneri~ lcial1 br~ibery' aS hereinabove defined. '
S~icr. 4. Interferencelc with Contractual R~latio~ns. M~alic~iously in-
dlucingr or attemnpting; to induce the breach, of an existing oral
or written contract between a compel~titorl and his customer or source
of blo pply, or' interferingff with or obstructing the performance of any
;-uc~h (contr;l.f~.atua duties or services.
Src.. 5. Secret Rebates. The secret payment or allowance of re-
buatelS, refunds, conunlllissions~, credits, or unearned discounts, whecth~er
in the form of money or otherwise, or the secret extension to certain
purr~i'nchaser of special services or privileges not exstenlded to all pur-
chasers on like terms and, conditions.
P11c. 6. De~famation.i The de~famiationl of competitors by falsely
imputing to theml dishonorable conduct, inability to perform con-
tracts, questionable credit standing, or by other false representat~rions
or by the! false disparagementl11 of the grade or quality of their goodts.
SEC. 7. Substitution. The furni-; hing~ of slate not suitable for a
purpose ordered or the shipping of products which do not conform~
to the samples submitted or representations or change in specification
upon which order was placeed, madelt prior to secur~ling the order, with-
out the ctonse~nt of thepur~chasrcl to such substitution.
SEC. 8. Espionage of Compe'ct it ors. Securing confidential infor-
mnation (conlc'erningl~ the business of a compettitor by a false or mis-
leading statemenc~lt or representation, by a false impersonation of onle
in authority, by bribery, or by any other unfair method.
SiEC, 9. Infringement of Patents. Imitating trade mla rks~, trade
names, sl~,~loga 01` other marks of idenrt ific.nt ic n of corn pet it or< and
th~e appropriationl of catalog and advertising forms, constitute a ~vio-
Intioni of this Code.
SE(. 10). To aid and abet the practice known as bid peddlling.":
SEC. 11. CODSigned Goods. Th~e shipping of slate or slate prodl-
ucts on consignment.
SEC. 12. Other Ul-nfair Practices. Nothing in this Code shall Timit
the effect of any adjudication by the Courts or holding by the Fed-
eral TIrade Commnission on complaint, finding, and order, that any
practice or method is unfair, provriding that such adjudication or
holdings is not inlconsi ~tentt with anyT prov~isio l of the Act or of this
SEC., 13. ASL far as possible, employers in the Slate Industry will
promote emnployment~ lt by following the Simnplified Pranctice Recom~-
mlerindtions of the D~eparltmlenlt of Collnun~erc R13-28 on Structural
Slate, R14-28 on Roofing Slate, and R15 on Blackboardc Slate, in
their production and sales promotion efforts and endeacvor to h~ave
specifiers of slate requ~~ire the sizes pr~ovidejd in these r~ecommuen-
SECTION 1. Tlills CO~l 0 mid all tliile rol, liall~is thercerof are expreM~sl
made:1C subljec~t to the r~iglt of the Prle identlt in necordance11:1~ with thle
`provisions of subsrc~tion (b) of Sec~tion 10 of thle Na~tionall Indullstrial
Recover3 AcLt, from timec to timelt to ece~lrl~ or mlodify anyr orderl1
approva'?'l, license, rule, or Iirrgulationr issuacl unrler T~itle I of said Ac~t,
and spec~ific:llly, but. withou~lt limlitaion,~ll to the righ-tt of the Prrsictent
to connc el or modu~ify his appirova;l of this Code or any corall'itionsl u
imposed.icl byl him upon his approvl~c\ n thereof.
IEc. 2. This Code, exscept~l as to prov\isio~ns rqireilc d by the Act, miay
be modr~ifiedl on the basis of exper~'iecil. e or changes in c~ilcrllumstncesi or
suppl.lemlCl ente to meett Inrllketingb needsf of this unitura';l-resoulI~rc indlus-
try, such modlificatio~n to be basetl upon applientionl to the Admlinis-
tr~ator and suchl notice and~ heaIring 0. he shall specify, and to b~etcomle
e~ffective onl apprvc,\ al of the PE-"scidenr~t.
ARTICLE X;~-3IONOPOLIF, s, E-w.(.
N1o p~ovisions~ of this Crode shall be so appliedt as to penu'llit,
monopoly es or mionopolclilc pra;c~tice ,, or to elmiianaite, op~press, or
discr~iinunte agbainist small e~nterprisie s..
ARTICLE XCI-PRICE INCREASES
Whereas the p~olicyS of the Act to inlcrease1; real p~ur~chasingl~ power
wiUl be mladle impossible of (Con1~11nnua;1 tionl if prices of guoods alll
serv\ices~ increase asi r~apidlty as Iwages, it is recognizedt that prli~e
increases sh;~ould be delayed~c and that,~ when rlnnele, the same shoubll,
SO far as c1.lreasonbly pco sible, be limited to actual incIren e in the
Aui: XI:I-E:crive D\ ;ZATE
Th'lis Code shall become effctii ve tenl (10) days~ after its alpproval
by the President.
A~pp~roval Code No1. 218.
R~egistryJ No. 1023-19.
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