Code of fair competition for the gypsum industry as approved on May 7, 1934


Material Information

Code of fair competition for the gypsum industry as approved on May 7, 1934
Physical Description:
p.39-56 : ; 23 cm.
United States -- National Recovery Administration
Supt. of Documents
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Gypsum industry -- Law and legislation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


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Also available in electronic format.
General Note:
"Approved Code No.420 ; Registry No.1024-05"

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Source Institution:
University of Florida
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aleph - 004851504
oclc - 63655054
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Full Text

Fosr sle by the Superintendent of Documents, Washington, D.C. Price 5 cents

Approved Code No. 420

Registry No. 1024--05









This publication is for sale by the Superintendent of Documents, Government
Printing Oflke, W'ashington, D.C., and by district oilkes of the Bureau of:
Folvign and Domestic Commerce.

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Approved Code No. 420



As Approved on Mlay~ 7, 1934


An application having been duly made purso-;nnt to and in full
comlpiance with the provisions of Title I. of the Nlational Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Gypsumn Industry, and hearings having
been duly held thereon and the annexedl report on said Code, contain-
ing findings with respect thereto, having been made and directed to
the ]Presidenrt:
NOW~, THEEREFORE, on behalf of the ]President of the UnitedX
States, I, Hugh S. Johnson, A~dministrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order number 6543-A, dated Decemb-
berr 30, 1933, and otherwise, do hereby incorporate byT reference said
annexed report and do find that said Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
pose-s of said Title of said Act; and do hereby order that said Code
of Fair Competition be and it is hereby approved; provided, howv-
ever, that thne provisions of Article VI, Sections 1 and 2, insofar as
they prescribe a waiting period between the filing with. the Code
Authority and the effective date of revised price lists or schedules
and/or terms and conditions of sale, be and they are hereby stayed
pending my further Order either within a period of sixty days
from the effective date of this Code or after the completion of a
study of open price associations nowF~ being conducted by t~he National
Recovery Administration; and provided further, that the Code
Authority shall, niot later than ninety days after the date of this
Order, submnit to the A~dministrator further evidence that the averag-
ing of hours as provided in Section 1 of Article III is necessary in
this ICndustry.
Administrrator for Inldustrial Recovery.
Approval recommended :
A. R. GraNcr,
D~iv~is'io Ad~min/istrator.
M2ay 7, 1934.
57414";----544-43--34 (39))


Thie ~T'hite House.
SmR: ~This is a report on the Code of Fair C~ompetit~ion for the
Gypsunm Industryrv a. hearingr on which was conducted in Wa~shing-
ton on the ninth of January, 19341, in accordance with t~he provisions
of the National Industrial Recovery Act.
This Code provides for a maximum work week of forty (40) hours,
except that, during peak production periods and emergencies, em-
plToyees mayu~ be permlitt~ed to work fortyI-eight (48) hours in any week
provided that their hours of work do not average more than forty
(~40) hours per week during a six month period. It provides for
the payment of one and one-half (1Y2) times the normal rate for time
w~orkred in excess of eight (S) hours in any day. The following are
(aL) Clerical, office, sales service and sales employees, who may be
p~ermittedd to work not more than an average of forty (40) hours per
wcreek in anty thirty (30) day period, nor more than forty-eight (48)
hours in any wreek;
(b) Emlploy'ees in technicall. professional, supervisory, managerial
or executives capacities, receiving more than thirty-five dollars
($35.00) per week, and outside sales and sales service employees;
(c) Employlees on emergency maintenance or emergency repair
wocrk who, however, must be paid one andl one-half (1%~) times the
normal rate for time worked in excess of forty (40) hours in any
wPeek or eight (8) hours in any day;
(d) Wt~Tlchmen. who may be permitted to work a maximum of
fifty-isi (56) hours in any week;
(e) Eng~ineers, firemlen and pumpmen, who maLy be permitted to
work a maximll uml of forty-eight (48) hours in any week.
The! Code provides for minimum wage rates for clerical, office
salles service and sales employees of from fourteen dollars ($14.00)
to Fifteen dollars ($;15.00) per week (depending upon the size of the
city. within the tra~de ar~ea of which they are employed), and for
mniiimumi wage rates for other employees as follows:
(a) Fortyv cents (404) per hour in any city, wherever located, of
100,000 population or over or in t~he immediate trade area of such
(b) Eiorty cents (400) per hour in the Pneific Coast Territory;
(c) hirty cents (309) per hour in the South;
()Thirty-seven and one-half cents (371/2) per hour in the
remainder of the United States.

The rates of wages of employees, receiving more! than. the mninilnun
but not more than thirty-five dollars ($35.00) per week~, ma~y not be
reduced, and must be increased byr an equitable readjustment, pro-
vided this has not already been done prior to the effective date of
the Code.

T~he Code contains provisions, similar to those usually included in
Codes, governing Child L~abor, Infirmn and Agfed Employrees, Re-
classification of ]Employees, Posting of Code, Payment of Wa gej,
Safety and H~ealthl, and Company Houses and Stores.

The volume of sales in this industry has dtecrcased- about 75% since
1929. During the same period, the number of employees has
dlecr~easied from 7,016 to 3,251, a decrease of about 54%0.
Practically the entire industry is now operating under the Presi-
dent's Reermployment Agreemenlt and it is not thought that tha
approval of the Code will increase employment or payrolls further,
until vPolume of business increases. The increase in payrolls under
the President's Rteemployment Agreement has apparently been
about 20% and the increase in employment probably at least 8%0.

The A~ssistant Deputy Administrator, in his final report to me
on salid Code, having found as herein set forth and onl the basis
of all the proceedings in this matter;
I: find that :
(a) Said Code is wvell designed to promote the policies and pur-
poses 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'pro-
vide for the general welfare by prom~otilng the organization of
indlustlry for the purpose of cooperative action among the trade
grroups", by inducing and maintaining united action of labor and
managementn under ade~qu~te governmental sanctions and super-
vision, by eliminating unfair competitive practices, by promoting
the fullest possible utilization of the present productive capacity
of ind ustries, by avoiding undue rest rict ion of production (except
as may be temporarily required), by increasing the consumption of
industrial and agricutltural products through increasing purchasing
pow~er, byv redc~i~ng a~ndreylievijng unemployrmenlt, by improvm
standards of labor, and by otherwise rehabili~tatinginuty
(b) Said industry normally employs not more than 50,000 em-
ploy~ees; anld is nlot classified' byT me as a major industry.
(c) The Code as approved complies inr all respects with. the per-
tinent provisions of said T~itle of said Act, including without limi-
tation Sub~sec~tion (a) of Section 3, Subsection (a) of Section 7,
and Sulbsec~tion (b) of Section 10 thetreof ; and that the applicants
group is an industrial group truly representative of tle aforesaid


industry, and thant said group imposes no inequitable restrictions
on admission to membership therein.
(d) Said Code is not dleslgned to and will not permit monopolies
or monopolistic practices.
(e) T'he Code is not dlesignedl to a~nd will not eliminate or oppress
small enterprises and w~ill not operate to discriminate against them.
(f) Those engagred~ in other steps of the economic poeshv
not beec~n deprived of the right to be heard prior to approval of satid
For these reasons, therefore, I have approved this Code.
HowH S. JoHNson,
May 7, 1934.

To effectuate the policies of Title I of the `National Industrial
Recovery Act, the following provisions are established as a Code of
Fair Competition for the gypsum industry and shall be the stand-
ardas of fair competition for this industry, and shall be binding upon
every member thereof.

SECTION 1. The terms "L gypsum industry and industry as used
herein mean and include thre mining and calcining or calcininlg of
gySpsum, mining, qualrry~ing or recovering natural or syn"thetic gyp-
sum or gypsite and/or crushing gyplsum' rockr or gypsite and/or m~an-
uaheturing natural or synthetic gypsum~ and gypsite products, within
the Unitebd States and its territories and pos-sesion~ls.
SECTION 2. Thne term employeee as used hlerein includes any per-
son, except a member of the industry, engagoedl in any phase of the
industry in any capacity in the nature oc f employee irrespective of
the method of payment of his compensation.
SEcnowN 3. The term employer "as used herein includes any one
by whom an employee is compensated or em~ployred.
rSECTION 4. Thne term memberr of the indusrltry includes, but
without limitation, any individual, partne~rship, association, corpora-
tion or other form of enterprise engaged in the industry, either as
an employer or on. his or its own behalf.
SECTION 5. The term P~c~ific Coast T'erritory as used herein
shaUl mean that part of the c,ntinental United Stautes west of the
108thi longitudina~l meridian.
SECTION G. Th~e term "Association as used hlerein shall mean the
Gy'psum Association, a trade association having its office at 211 West
Warcker Drive, Chicago, Illlinois.
SEC'TIO)N 7. The terms Presidlent ", "Ac.t' ndc "Administrator "
as used herein shall mean, respectively, the President of the U~nited
States, Title I of the National Industrial R~ecovery Act, and the
AQdministrator for Industrial Recovery.
SECTION; 8. The termn populationo" as used herein shall mean
population as dleterlminedl by the latest F'ederal Census.

SECTIO)N i. FIO978.- NO employee not elsewhere in this section
otherw-ise specifically provided for or excepted shall be permitted to
work in excess of forty (40) hours in anyJ week except that, during
peakr production periods anld emnergencies, any such employ-ee mnay

b(e permitted to wPork in, excess of such hours but not to exceed forty-
eight (48) hours in any wFeek; provided, however, that the hours of
labor for an such employee shall not average more than forty
(40) hours per week during each six month period from January 1
to June 30, and from July 1 to December 31 in any year. Employees
covered by this paragraph shall be paid one and one-half (1,
times their normal rate for all hours worked in excess of eight (8)
hours in any da~y.
No clerical, office, sales service or sales employee shall be permitted
to work an average, of more than forty (410) hours per week in any
th)irty (30) day period, provided that no such employee shall be
pe~mit~tedl to wFork more than forty-eight (48) hours in any one week.
The abov limlitations shall not applyr to:
(a.) Emnployees in a technical, professional, supervisory, mana-
gerial or executive capacity who are compensated on a basis of more
than $3 5.00j per week;
(b) Emnployees on, emlergency maintenance or emergency repair
work: involving breakdowns or th~e protection of life or property but
in any such case at least one and~ one-half (11,6) times the normal
rate shall be paid for hours worked in excess of forty (410) hours in
any w~eek, or eight (8) hours in any day;
(c) Out~side sales and/'or sales service men;
(d)~ W"atchmen who may be permitted to workr a maximum of
fifty-sixz (56) hours in any week;
(e) Enginieers, firemen and pummnwomybepritdt
wor a axium f frtyeigt (8)hours in any week.
No emplloyer shall knlowingly permit any em ploy~e to work for
any time which, when totaled with that aIlreat y performed with
another employer o~r emlployers, exceeds the maximumi permitted
he rein."
SECTIO $. Il'age.--
AL~. No~ employee n~ot elsew~here in this section otherwise specifically
provided' for or exrcepted, shall be paid at less than the ra.te of
(a) 40$ per hour in any city, w~herever located,! of 100,000i pop~ula-
tion or over, or in thle immediate trade area of such cityS;
(b) 40( per hour in that part of the continental United States
west of the 108th longitudlinal meridian (defined in this Co~de as t~he
Pacific Coast Territory);
(c) 371/24 per hour in that par~t of the continental United
States north of the 38th parallel of Intitude and east of the 108th
longitudinal mieridiazn, including the entire St~ates of Kansas and
Oklahomla ;
(d) 304. per hour in all other parts of thle Unit~ed Sta~tes with th~e
exsceptionl of the States of Ktansas and Oklahoma.
B. No cler~ical, office, sa~lejs service or sales employees (except, out-
side sales and/or sales service men) shall be paid at less than the
ra~te of :
(a.) $15i.00 per week in any city: of over 500.000 population or in
the imlmedliate trade area of such city ;
(b) $14.50 per week in any city between 250,000 and 500,000
population, or in the immediate trade area of such city;
(c) $;14.00 per wleek3 in any other place.
"See paragraph 2 of order approving this Code.

This article establishes a minimlumn rate of pay which shall apply
irrespective of whether ani emlploye~e is actually compensated on a
time rate, piece-work or other bas~is.
SECTION :3. ll'C~r/ S Abople the Mlin/~imuin .-Employers shall not re-
duce the rates of wages for emp~loyees compensated at rates above
the mlinimu~m (notw~ithstandcing tha~t th~e number of hours worked in
such employment may be hereby dlerreasedt) andl where in any case
an emnployer has not increased' the rantes of wages for such emplloyees
prior to thle effective date of this Code by an equitable rendju~stmcnt
of all such wage rates, such emloy~J!e r shall readljust all such wage
rates. This provision shall be initerpretedl in the samne manner that
Praragrphl 7 of the Presidenlt's Reemploymnent At~greemrent has been
interpreter by thie Admninistentor in Interpretations Nos. 1 and 20.
This section shall not apply to emlployees compensa~ted at e~ntes ab~ove
$335.00 pier week.
SECTION 4l. Chnild L~abor.-o person under sixteen (16) Y\enrs of
age shall be employed in the indus~try. Nio perlsonl under eigh~teen (18)
years o~f age shall be emnployed on mining, quarrying or mIilling
SECTION 5. Co7C'jlletic Bargaining~r!, Etc.--In compliance withl Sec-
tion 7 (a) of the Act, it is p~rovided:l
(a) That employees shall have the righlt to organize anzd brgi
collectively through representatives~ of their own chocosing, and hl
be free from the interference, restra~int or coercion of employers of
labor, or their agents, in the designatiori of such representatives or
in self-orgatnization or in o~thecr concerted activities for the purpose
of collective bargaining or other mutual aid or protection;
(b) That no emlployee and no one seeking employment shall be
requ~iredl as a condition of employment to join. any companyT umion
or to refrain from joining, org~anizing~ or assisting a labor orgaani-
zation of his own choosing; andc
(c) That emp-loyers shall c~omiply with thze maximum hours of
labor, minimum rates of pay anld other conditions of employment,
approved or prescribed by the P'resident.
SECTION 6. R8CICa8rifeatfi~ ion of Em ployeet'/s.-NZo employer shall re-
c~lassify employees or duties of occupations performed or engage in
any other subterfuge, for the purpose of defeating the purposes or
provisions of the Act or of this Clode.
SECTION 7. IState Latoe.-Nro prov-ision in this Code shanll super-
sede any State or Federal law which imposes on employers more
stringent requirements as to age of employees, wages, hours of workc,
or as to safety, health, sanitary or general working conditions, or
insurance: or fir~e protection, than. are imposed by this Code.
SECTION s. PO8tingy.--Each employer shatll post copies of th~e Code?
in accordance with such1 rules and regulations as the Administrator
mnay prescribe.
SECTION 9. In frmz and Ag~Ed Em pyloyees.-All person whose ea rning:
capacity is limited because of age or physical or mental handicap,
mayor be employed on light work at a wage below the minimum estab,-
lished by this Code, if thle emnployecr obtains fromt t~he State authority
designated by the UTnited States Department of Labor, a certificate
authorizing his employment at such wages and hours as shall b~e
57414"--544--43~--34 2

stately in the certificate. Such authority shall be gquidled by the in-
strumctions o~f the United Sttats Departmeent of Labor in issuing
certific:!tes toi such pel~ronl Each employer shall file monthly wvith
thec C.od.e Aulthority a list of all such persons emnployved by him, show-
in~g the wvages p~aidl to andi the maximum hours of work of such
SECjlCO.iN 10j. Company~,I HjOulSes alnd S~tolr'S.-Empn lloyees ot her th3an
maintenance or sup~ervisoryv men, or those nececsryn~ to protect prop-
erty. shall no~t be r~equiredi as a condition of employment to liv-e in
hiomes renitedl from or specifiedl byl the empgloyer.
No employee shall be req~cuiredl as a condition of emnplloyment to
trade at aI storet ow~nedl or speccified by an emnployer.
S~cl~rox~ 11. Pa.inunit olf Wa-cges..-Every employer shall exceptt
unercicmsanesdfint-d~ byl the Cod-e Au~thorityr andl app)roedl
by the Admlrin~i-;t ratorl) mak~c paymn t.l~~n of all wag~es due in lawmful cur-
rency~ crb egtale cheek thecrefor payable orn demanlld. These
wages shall beI exemipt frocm anyS deduction fo~r pensions. insurance,
or s~ick b~enlits, other than those vo~lllQlunaily agreed to by the wvage
earner or rquiredby la Wge sha~ll be payab~le at least sem~i-
mnonthlly, andi salaries at least mnonthlyl hNo employer (except when
.pec~if;iedly aunrthlorized- by? the emnploee ori excepjt in compliance with
garnishment or other leganl pjrocess) shall wiithholdl wages.
SECTION 1. 1Yrf~f~ly Ilr N lfn.T//1-The Code Au~th~ority shall st.udyv
conditions relating to safety and health of emplloyees and submit
to the Adm~inistrator tannlards therefor w~ithiin a reasonable time
after having~L beetn called for by him..
SEcTION 1., Colle 1M.lofthJ~.--
(a) There shall forthwith be constituted a Code Authority con-
sistingr of thirteen (1;3) persons, twelve (12) of whoml shlall be the
Boa~rd of Directors of the Associntion, as s~uch board shall be con-
stituted fromn time to time, and one (1) of whomn shall not be a
director or members of the XAsociation7 but shall be a member of the
indlustr~y selectedl by~ the non-anssociatio~n memblnersi of the industry by
a methodl of selection approved by the Admllinistrator; provided,
howeve'tr, that if at any~ timne any m'embrc' of the industry entitled
to be uipon the Corde Autlor~ity under the provilsion7s of paragraph (c)
of this Article, shall not be a miemiber of the Association and its
Board of D~irectors or selected as thet non-assoc-iation memb~-er of thle
Code Aulthority, then thie mem~lbersh ip of the Clode Authority is auto-
mutically increased to include any! such miember of the industry.
UnTitil thec no-n-ass.~ociation member has been selected andl qualifiedl the
Colde AulthoCrity shall1 consist of the twelve directors of the assiocia-
tion andl suclh o~f those members of the industry covered by para-
graplh (C) as~ are no~t memberl~l~ls of the Association andl its Board of
D~irct:crs: Prov)\id~ed, however, thait the Admlinistrantor may appoint
a non-;ls.sociati ol nmemiber to act until the permanent non-a~s~socia-
tionl membell~r hasl b~een selected and.gualifiedl. Each~ such member of
thle Codet A1utho~rity shall be entitledl to one (1) v~ote.
(b) In addlitioni to memberl~rship as above provided. there miay' be
not to exceed three (3:) members w~ithlout v'ote, to be appointed by
the AdministrIatorI to serive without, cost to the industry.

(c)TheCod Auhorty nd any commnttc ee thiereof miust have
thereon a representative of ahmme fteidsr rdcn
twenty-five p~er cent (259b) or mor~e of aInnua~l industry: tonlnag~e ,
and a reprlesentartive of one of ther member!c~ls of thae indulr-try avn
its entire pilnnt facilities in the Plc~ific~ Coast Terrl'litory, eneh such~
represeiintaiv'e to be a p-er~son alctively cronnieCted with the buslinecSS
of sulch~ memiber. Any7~ member1~'1 of the Codelt Authority and of any
committee thereof maiy app~cinit, as his a~lternal~te any other person
actively =olnncted- with the business of any member iof thenct industry.
Nto member of. the indu-ltry3 shall havet morJ1e than onle representa-
tive on the Code Aulthority or. any conlrnittee th,1ereof, and no alter-
nate shall be connected with any company already represented~ on
the Code Aulthor,1ity or anly com~mittte he~lr~eof, provid-ed- tha~t alny
m~embler of the Cod,:e Authority m ay appointd an alte~rna~te fro.m his
own companyy.
(d) Inr ord-er that the Cod1~e Author~ity shall at all times be truly
repl~resentative of the industryl- and in other rerspect~s compllrly with
the provisio-ns of the Act, t'he Adm ini.;trat for ma recibesch
hlearing~s ais he mlay d-eeml In1oper; anda if he shall find thatL thre Codie
Authiorit is n~ot truly r~ep-resentativi\e or doest~ not in other~l resp~ects
c~omplyS with the provisions of the Aict, he? may3 require an appro''-
priate modification in tlhe method of selection of the Cfode Author~lity.
(e) Aqt any duily called mecetinlg of the Code Acuthority or of anly
committee therecof a thrree-quar~ters~ affirmlative vc~te of the mlembers!
present shal-l be r~equired~ to make~t erffectivre any action of such Co~de
Authority or-committee;. provided. hiow~~eve, that after the Code
Authority or any coammittee thereof shllnlhaave takncr any action,
if any three mcnlembes of the Cfode A~uthol~rity or a1ny memble cor
members of the indusltry having~c twenty-five per cnt (f959;) or more
of thle indulstry tonnnce-e shall, at thet meeting aIt which the action
wa~s taken, reInes"~t it;, the action of th~e C'odec Authority shall be
susp'ended for a term of ten (10) da~ys; if, within saidl ten-day
term, any membrrlc or membe~lrls of the industry having twenty-five
per cent (2V'i)r or mnore of safid indlustry tOlnnage~ (IincludCine the
tonnager of thie mlembe~r or memblers first Icrleqetinlgr the suspension)
shall in ~r~itilgr call for a. vote by tonnaige, the~n such action of the
C.ode Author~ity or of anry such Committee shall be and- remain
suspend~ed for a ternm of thlr~tyr i(S) days from tlhe atent such ne~tio~n
by the Code~ Aulthority' or by' any ruchl Comrmittee, was adocpted.. If,
within said period of suspension, any memberr or members of the
ind~ustryv having sevecnty per cent (709f) of the industryS tonnage
(includinT the tonnlage of the memlber or mremberl1s hav~ingr requested
or joinedl in thne !-uspension) shall ob~ject. in wr~iting to the Code
Authotrityl tol iuch nation of thle Codle A~uthorityt l or of any such Com-
mitteec, thien the sa;lel shlall becomiie inoperat~ive, othterwvi e the same
shall standl~ as the action of the Cod~e Authority or of sulch Commn-ittee
fr~om thle rlate of o-1riinal ad~op~tion of luchr action. At any meetings
of thle Code Author~ity ut. which anyl netio~n is taktlen, any m Iembler obf
the Code A~uthority' mayn vote the tonnesr~e of any membercl of the
indlustry1 w~ho is not a mnember of the Code~ Authorityv andl for whiom
he holdls and presenitsi a duly executed pow-er of attorney inl for~m
pr~escribed byr the Code Auth~orit.yr. In. case at any tim~e thle Admin-
istrator shall find after consultation wFith th~e Co~de Authority that

the above proviso operates in such manner that the Code Authority
can not effectuate the purposes of the Code or of the Act, then after
such notice and hearing as he may specify, he may require such
modification in the proviso as he may deem necessary to enable the
Code Author~ity to function properly in the administration of the
Code but such mnodiclintion shall give effect to a vote by tonnage on
a basis that the vote of seventy per cent (70%) of industry tonnage
will render any action or proposed action of the Code Authority
I ROl-e f tilve.
(f) Within fifteen (15) dlays after the effective date hereof, each
member of t~he industry shall file w~ith the agency designated by
the Code Authority in necordance with Section 5 (a) of this Article
IV', a cer~tifiedl statement of his actual tonnage of calcined gypsum
including thant contained iln manufactured products plus einghty-
five per cent (859E) of the actual tonnage of rock and other forms
of r~aw gypsumi sold by each member during the calendar year
1933. The total of such tonnag7e so filed shall, for the purposes of
this section, be theP indulstry tonnage, and the tonnage filed by each
member shall be the tonnage which such member is entitled to vote
hereunder or use for the purposes aforesaid during the term of this
Code, as lefinedl in Article IXY, Section 8.
(g) A manjor~ity of the voting members of the Code Authority
or any? Committee thereof shall constitute a quorumn.
SECTION 2. Each trade or industrial association directly or indi-
rectly par~ticipating in th~e selection or activities of the Code Au-
th~ority. shall (1) impose no inequitable restrictions on member-
ship, and ('2) submit, to the Administratori true copies of its articles
of association, by-lawfs, regulations, and any amendments when
miade thlereto, together with such other information as to member-
ship, organnizationl and activities as the Administrator miay deem
necessary to effectuate the purposes of the Act.
jSECTION ;3. 1\lembers of the industry shall be entitled to participate
in and share t.he benefits of t.he activities of the Code Authorityv by
assenltingto and complying with the requirements of this Code and
susta in ing their reasonable sha re of the expenses of its administration.
Suchl reasonable share of the expense of administration shall be deter-
mlined by thle Code Authority, subject to review by the Administrator,
on the basis of volumne of business and 'or such other factors as may
be deemed equitable.
SECTION 4. Nothing contained in this Cod~e shall constitute the
members of the Code Authority partners for any purpose. Nor shall
any) member of the Code Authority be liable in any manner to
anyone for anly act of a.ny other member, officer, agent, or employee
of t~he Code Authority. Nor shall any member of the Code Author-
ity, in t.he colnduct of his duties hereunder, be liable to anyone for
any action or omission to act under this Code, except for his own
w~ilful miisfeasance.
SECTION 5. Pow~ers and Duties.--The Code Authority shall have
th~e following further powers and duties and in the exercise thereof
mlay appoint, fr~om time t~o time agents or committees, every such com-
mnittee to have not less than five (5) members, provided that such
agents and committees shall comply with the provisions hereof.

(a) To collect from t~he mnemlber~s of the inldus~try all data and
statistics which ma~y be? properlyl called for undrlt 1 this Cod~e. Ainy
data and.?or statistics of a confidiential nature shall be col~l~tecte by a
firmly of accountants or other aluitable agen~lcy! lectedl by the Codie
AutihorityT and not a mlemiber or connected d with a mIember of the
ind~ustry, and shall be kept confidlential; provided that anyT violation
found to exist shall be reported to the Code Authority, and all su;ch-
data an~d statistics shall be fully available~ at all times to the ~lcptrpr
governmental officials.
(b) To represent the indulstry in conlferr~ingr with the Admninlis-
trator w~itlh r~espelt. to the application of this C'ode and of said Act
and anyv regulations issued theretundc- er, and, subject to suchl rules
as the Administra~tor may p~escrribe, hear complaints and, if possible,
adjust the samne in accordanlce with the provisions hereof, and to
coordinate. the admninistratioon of this Code with any Code or Corles
adopted and approved by any other industry which may affect this
industry, with a view to providing joint andl harmlonious action ulponl
all matters of common interests, and to receive and initiate any pro,-
posals for supplemnentary provisions or an~~menanwts of this Code,
or ad'ditionatl Codes, applicable to the industry-.
i(c) To' make rules and regulations for its condrlcuct in thet amnllilis-
tratio~n of this Code within the s~cope of its powers and duties thnere-
un~er; and to cooperate with the Administrator and other 10r'taper
governmental officials in. the enforcement of this Code.
(d) To cooperate with thre Administrator in rest~ic~ting thne useu
of the N.R.A. Code Insignia solely to those mremwbers of the ind t lrl~y
who are comlplyving with this Code.
SEC.IO~N 6. PaClfife Coast Comnimi tfee.--An3t'hing in this Code to the
contrary notw~ithstanding, anyT multtersa at anyr time spending b~eforel
the Code Authority concerning the admi nist ration or e~nforcenwntl1
of this Crode, affecting solely thne inte~rest~s of the memriberl of the
industry in the Pacific Coast Territorry, shall be r~eferrecd for Ilecisionl
to a, committee, of fiveC (5) selectedl by the mlem~bers of the industrily
having one or more plants for the mlanulfacturee of industry produtl~cts
located ih sucht ter~ritor~y, and the: Code Aiuthor~ity shall be boundl~
by the decision of such committee and shall takie such action thereon
as may be recommnended~ by such committee, when samne shall have
been ap~prov'ed by at least thr~ee-fourths (9,*) of the memlbers~ having
one or more plants in the Pacific Coast Territor~y. The represen~ta-
tives of the Admlinistrator appointed to the Code Authlority mnyv
serve~ in likEe capacity~ with respect to the Pacific Coast Committree.
Th~e decisions of this Clommittee shall be subject to the pro.visio~ns
of Section 7 of this Alrticle IVT.
SCEC.TION '7. Aippeal.--Any inrterestedl party shall have the right olf
complllaint to the Code Aiuthor~ity3 withl respect to any act of any
agent or committee dlesignated by the Code Au~thority to tact for or
in its behalf, and a prompt hearings andl decision shall be hadr there~on.
Any inter~estedl party shall have the right of appeal to the Atllinl-
ictr~ator, under suich rules and regulations as he shall prescribe, with
respect to any decision, rule, regulation, order, or findlinga made by
th~e Code Aulthorit~y.
W'henev~er any appeal is taken to the ,Admninistrator from any
actions of the Codre Authority, the Admrinistrator may require that

such action be suspended for a period of not to exceed thirty (30)
daysto ffor anopportunity for investigation of t~he merits of
such~ action, and further consideration by such Code Authority or
agency' pending final act~ion.
If the Adlministrator shall determine that any action of the Code
Authority or any agency thereof he unfair or unjust or contrary to
the purblic interest, the Administr~ator may require that such action
be suspendecd to afford an opportunity for inv-estigation of the merits
of such action anld further consideration by such Code Authority
or agency pending final action which shall not be effective unless
the Adlministratorl app~rovets or unless he shalll fail to disapprove
after thirty (30) das' notice to himi of intention to proceed with
sulch action in its original or modified form.

SEC.TION 1. Xal88 Bc7010 COst.-Arfter a definition and schedule of
cost has been adopted by the Code Authority and approved by t~he
Administratorr as provided in Section 2 of this Article V, no member
of the Industry shall price or sell any Industry product below such
members' cost, as so defined, except to meet a competitive price on
the same product or except in the introduction of a new industry
product or except when the necessity o~f mleetina the competitionr of
a non-industry product is recognized by the eode Authority and
approved by thne Administrator. T'he Code Aiuthor~ity mnay consider
and clescr~ibe other conditions and circum~stances, if anyr, under which
~me~mbers of the industryT may sell below such member's cost which
shall first be submitted to the Admninistrat~or for approval. Any
exlceptions peIrmitted by or under this section shall be disclosed to
and shall apply to all members of thie industry.
SEenowi, 2. Determi~nai on1 of Cost.-Withirn ninety- (90) days after
the effective date of this Code, the Code Aiuthority shall prepare a
decfinlition and schedule of costs for the purposes of this Atrticle V.
After the same shall have been submitted to the Industry for criti-
cism and suggestions, the same, shall be submitted to the Aldminlis-
t~rator for his approval.
Each member of the Industry shall have available records alnd
information necessary for determining costs in accor~dance with such
definition and scheduled, irrespective of the member's system or methlod
of keeping records.
For the p~urposes of this Code, cost of each Indlustryr product shall
be determined by each member of the Industry by computing necor~d-
mng to such definition and schedule the weighted average cost of thle
total production of such. product of such member for the tw~elvre (12)
calendar months precedlncr the date of sale of such product.
The provisions of this Airtile V shall not apply to those products
excepted fromt the provisions of Article V~I of thlis Cod-e.

SECTION 1. Price Pu~blication2.-(a) Each member of the industry
shall, within ten (10) days after the effective date of this Code, file
I See paragaraph 2 of order approvingo this Code.

with the Code Authority or such agency or agencies as the Code
Authorityr may designate, complete lists orr .s~chtdules of prices and
terms and conditions of sale of all induslit~ry products offered for sale
by such member which shall become effective at the expiration of
such ten-dlay period; and shall so file all subsequent changes therein
or revisions thereof which shall become effective at the times here-
inafter provided in S~ection 2 of this Article3 VI.
(b) Such price lists or schledules and terms~ and conditions of sale
andi changes or revisions thereof, so filed as aforesaia, shall, from
and after the effective date thereof, for t~he purposes of this Code
be treated as the published price lists or schedules and terms and
conditions of sale of the member filing the sa me.
(c) W7henever any price list, schedules, or terms~ or conditions of
sale, and change. in or revision thereof, has been filed, by any member
in accordance with the pr~ovisions of the prec~edling paragraphs, the
Code Authority shall forthwith cause a copy of the same to be sent
to each member of the industry who p~r~oduces or sells or desires to
sell any industry product in the terr~itory as to which the prices
therein mentioned may apply; and such p~rlce lists or schedules and
terms and conditions of sale and change in or revisions thereof,
shall be available after the effective date thereof to the trade and to
other prlospective buyers.
(d) The Code Authorit~y Fhall designlate the Pac~ific~ Coast Co~m-
mittee establishedl under tlhe provisions of Section 6 of Article IV),
or such agency as said Committee may select, as its agency for receiv-
ingS and dlistributing price lists and schedules and termsl and condci-
tion of sale and changes in or revisions thereof applicable to sales
or qu~otations for sale, for delivery within the Pacificr Coast Terri-
tory. Such committee or agency shall, immediately upon~ receipt of?
any price lists or schedules and terms anrd coldit~ions of sale or
changes in or revisions thereof, send a copy thereof to the Code
.Authorit~y or su~ch agency as the Code Authorit~y shall appoint for
that purpose.
(e) Price lists and schedulres anld terms and conditions of sale
need not be filed covering sales of industry products by: members of
the industry to other members, except stucco for dry mixing.. Price
lists of sp~ec~ial products mannufneturedc~ by not more than three(3
members of t-he~ industry, whenr suchn special products are not ue
in, o~r sold to persons connected with, the building industry and price
lists on precast structural gypsum products not sold to dealers
exceptt standard panrtition tile), need not be filed.
SCECTION 2. fTajfllig Period.----All changes in or revisions of any
member's price lists or schedules anld terms and conditions of sale
shall be so filed five (5) dayrs prior to the effective date thereof, andl
shall become effective at the end of said five (15) days unless the
member filing shall cancel the same in. wrliting at any time before
such effective date;
Provided~, however, that, if any member shall receive notice of the
filing of changes in or revisions of another member's price lists or
schedules anld terms and conditions of sale too late tio-fle and make
effective on the same da~te such changes or revisions in his own pr~ic~e
lists or sc~hedtules and terms and conditions of sale as he d-esir~es to
meet the changes and revisions already filed, then if such aember

shall file his changes or revisions at least twenty-four (24) hours
before th effective date, t~he same shall become effective on the effee-
tive date of' such ot her member's changes or revisions;i
Provided, further, that during such period of time as the Admin-
istratlor shall wholly suspend or eliminate the waiting period in this
Article, all cha~ngres in or revisions of such price lists or schedules
and~ termis and conditions of sale shall become effective immediately
upon the filing thereof; or if the Administrator at any time shall
limit such waiting period to some period of time less than five (5)
days, thzen the maimuminin timie p~ermissible under such limitation shall
stand, in lieu of the five (5) day~s above mentioned, as such waiting
period, and this section, so mnodified, shalnl be and remain in full force
and effect.
SE~CTIO- N 3. Sales at Pub67~Tieed Prices.--No member of thle industry
shall sell any industry product at a price or prices below, or upon
termlls and conditions more favorable to the buyer thanI those stated
in such member's published price lists or schledules andi sterns andl
cocnditionls of sale then in e~ffecrct.


The Code Authority shall study_ mark~etingr conditions and make
recommendations to the industry for a merchandising plan for the
sale and distribution of industry products by all members of the
indust~ry continir~ng such prfovisions as may be necessary or proper
to insure fair selling methods by the industry, and to prevent unfair
comlpetitive practices; which pa after approval by the Adminis-
trator ma~y be adopted by any member of thie Indlustry at his v~olu~n-
tary election, and~included iln the member's terms andi conditions of
sale fixedl with the Code ~Authority; but nothing contained in this
Article VII or any approval or disapproval by the Administrator
of anty such plan shall either be construed to prevent any member of
the industry from adopting and uigany plan of metrchandisingr
such member desires and changing and altering the .samne from time
to time, or as an approval of any member's plan of merchandising
except when expressly approved as part of a plan adopted by the
Cole ~Authority.

RTTnE 1. Rcibates, Su~bsid~ies, etc.--No member of the industry shall
make payment or allowances of rebates, refunds, credits, unearned
discounts, or other allowalnces, whether inl the form of money or
gifts or otherwise, as a mneans of effecting or concealing price dis-
crimination or the extending to certain purchasers of special privi-
leges, includlingr discriminatory allowances for services or other
things not extended~ to all purchasers under like terms and
Included within the practices prohlibitedl, but not by way of limi-
tation, are price concessions in the furnishing of materials without
chargoe, giving of allowaonces for advertising not actually placed, the
making of allowances on damaged sacks in excess of their actual
value, the making of allowances for unsupported claims for damage

or shortage of goods in transit, the making of allowannces on unveri-
fled complaint of the quality of goods, thle rental of warehouse spncee
ownedi or leased by manufacturers to dealers; at a, rental less than
what the fair value would be for other similar property~ in adjalcent
territory. Nlio member shall hereafter rent or lease or extenld any
exisinglease for warehouse, space for industry products from lumber
or building material dealers.
RUrLE 2. D6/G7ThalOn of Comp/letitor~s.--No memnber1 of the indfustry
shall circulate or disseminate false or mnisleading informant ionl by
wJords or acts r~elative to thne prices, credit standing,rr business integrity,
or ability to p~erformn contracts, of ainy cojmpetitor.
RULE 3. FR 86 eVI Buldi.g-- RO member of the industry shall mar~k,
brand or fail to brand products for the purlposre or with~ the effect of
misleading or deceiving the purchasers with respect to the quantity,
quality, graLde or substance of thie good~s purchased.
RULE 4. IGnzTctON Of fTrd8 ;ZalRX.-RO mlemrbe~r of thte industry
shall knowfingly imlitate or simulate any trande-mark, trade name,
package, brand or label of a competitor in such legirlee. as to ~ec~eive
or have the tendency to deceive customers.
RULE 5. Consj~gi ignent.--No member of the i industry shall ship
goods on consignment except under circums-tance~s to be defined by
the Code Authority, where peculiar cir~cunst~ances of the industry
require the practice. Where such exception is made it shall be appli-
cable to all members of the industry under like circumstances and
Run 6. Shipmn~sts wi2thou~t Orders.--No member of the industry
shall make shipments, other than those involving mere transfer of
materials to manufacturer's warehouses or plants, without in each
case having an order from a customer for shlipment, at the time of
making shipment.
RULE 7. FI/Prrlcl t0 Xtat Cri Pric ? o.R melbter Of the industry
shall submit bids for two or more commodities, one or more of whiich
is an industry product, in which the unit price of each commnodlity is
not clearly stated, except in the case of erected jobs including labor
and/or lump sum bids on fireproofing! acoustical materials or special
pRout.PULE COmlbination Sales.-No mrember of the industry for the
purpose or with the effect, of influencing the sale of indust ry products
shall sell or offer for sale other c~ommlodities at pr~icesj b~elowr the
nmemnber's current pr~ice. for such other commodities.
RULE 9. Xub/filu tiOw.--RtiO meber of the industry shall market or
sell a superior product in packages of a lower priced and inferior
p~rodluct at prices lower than the published price of such superior
prod uct..
RPLE 10. Spitting of Compn~icsation.-N~i o member of the industry
shall permit splitting of commissions or other compensation received
bt:y an employee or agerit of the m~em~ber with a buyer or with others
to influence a sale.
RULE 11. Comm/88/iOtz .-- ROT member of the industry shall pany
commissions to one buyer because of purchases mnade by another
buyer in the same buyer classification.
RULE 12. Quantity Sal~es.--No member of the industry shall make
a price for quantities in excess of single earloads lower than the
single carload price, provided however that this rule shall not apply

to sales by one member of the industry to another member, except
sales of stucco ifor dry mixing.
R~ULEF 13. Paymzents.--No member of t.he industry shall agree at
the time of sale to accept anything other than cash, negotiable check,
or customers own interest bearing paoper, except at current market
value, inl payment for materials purchased.
RULE 14. Financirrc1ng Dealersa and Contlac~torls.-Ni o member of the
industry~, for thre purpose of ilnfluencing a. salep sha~ll offer, or pr~omise
to finance or to aid in financing any contractor or any dealers,
whether directly or indirectly.
Nio mlemlber of the industry shall assume the cost of or endorse or
gruarantee other bidders' bonds, or in any way relieve other bidders
of the responsibility for or of thne expense of providing such bonds.
3RULE 15. False Classiflear.tion .-No member of the industry shall
falsely classify commllodities for freight purposes different from the
alnssification adopted by the carriers, to secure lower freight rates.
RULE 16i. Protectfed Contracts.,-All contracts and orders for ship-
ment taken before or after the effective date of this Code may be
protected at the price at which the contract and/or order was taken;
and material sold under such protection shall be applied onlyr on the
contract and/or order for which th~e prot~ectionl was given; provided,
however, that contracts or orders for dealers stock (except gaypsumn
sold for agricultural purposes) shall not be made or necepted for
shipment, beyond thirty days from date of contract or order.
RLE, 1'7. Dztr140~ Of uOtation8.-All quotations shall be subject
to change without notice except for specific building jobs where quo-
tations may be protected against a price increase for not more than
thirty days, except for Federanl G~overnment jobs, for which protec-
tion may, be given for sixty days.
RULE 18. Xpecl ~fC Job Protection.--Each member shall list with
the Code ~Authority or its agency wFPithin fifteen dlays after the effective
datse ofi anyp~rice increase all outstanding quon~taions~ or commn~inptmet
on spcifi ob, made prior to the price mecrease, naming the job, its
location, the dealer, the contractor, approximate tonnage, and the
price quoted. All quotations for specific jobs. shall expire thirty dlays
(except quotations on Fiederal Government jobs, which shall expire
sixty days) after the effective date of any price mecrease unless during
that period a firm contract has been made to cover saidl job. During
such periods above referred to, any specific job not covered with a
firm contract shall be openr to all members of the industry at the
same price and under the same terms and conditions as listed with
the Code Authority~ by any other member. WVithin t.en days after
closing of a firm contract on anly such specific job, the member of
the industry shall list with the Code Authority or its agency hris
contract, supported, wh]en1 requested by the Codle Authority, by
definite inform~ati~onl concerning the contract between the dealer and
contractor or owner as the case may be. All quotations on specific.
jobs shall provide that the qulotat~ion shall expir~e upon the making of
a contract covering that job.
RULE 19. Listing Protected: Jobs.-E~ach member of the industry
shall list wCith the Code Authority or its agency, within fifteen
days after the effective date of this Code, all contracts for specific
jobs in effect on the effective date of this Code and within fifteen

days after his price increase all contracts for specific. jobs in effect
on the date of his price increase, indicating in. each case the amount,
if any, of tonnage shipped prior to the date of listing. showing the
location of the job, name of the dealer, name of the contractor, total
unshipped tonnage, with such supporting data as the Code Authority
may request to show the nature of the transaction between dealer
and contractor and/or ow~ner.
RULE 20. Specific Job Reports.-~Any member of the industry
listing any specific job contracts shall report to the Code Authority
or its agency all shlipments .made thereon as and when the same
are made! and also shall report comp~letio~n, cancellation, or modifica-
tionl of any of his such conltracets, and may report informnationl con-
cemng any member's listed jobs. The Code Authorit~y shall
promptly disseminate to the members of the industry concerned, all
such information pertaining to protected jobs.
RItules 16, 17, 18, 19 and 120 shall not apply to precast structural
gyps)um' plroucts not sold to dealers exceptt standard partition tile).

SEC"IOCN 1. Monopolies or M~onopolistice PractficeP.--No provisions
of this Code shall be interpreted or applied in such ma~nner as to
permit monopolies or monopolistic practices; permit or encourage
Ilnfair competition; eliminate or oppress small enterprises, or dis-
eriminate against them.
SECTIONJ 2. E~rports.-Artcles V, VI, VII and V71III hereof shall
not apply to products sold for export outside continental U1nitedl
States or for shipment to 1Panamna Canal Z1one and Alaska.
SECTIOIN 3. Paltentis.-N]fothing contained in this Code shall be con-
strued as prohibiting any member of the industry3 from~n exrscrising
all its and /or thleir' lawGIful patent. rights, or as r~equir~ingr any m~emlber
of the industry to do any act in conflict with the terms of a patent
licensing agreement legally bindlinga upon such. member.
rSECTIONr 4. Cancellation or Modc,7;iceation~i .-T"Ihe 1President mnay
fromt time to time calc~el or modify any order, approval, license,
rulle or regulation .issued ulnder the Act.
SECTION~ 5. A inend7/inents.--It is contemplated that from time to
time amlendlments and mrodlifications or supplementaryr provisions
to this Code or addtit~io~na Cod-es may be submitted for the approval
of the President to prevent unfair comnpe~titon~ in price or other
un fa ir or destruct ive c~omp~etit i e pract ices, and to effectuate the other
purposes and policies of the Act. Such amlendmnents and mnodifican-
tions, s;upplemnentaryI provisions or addcitional c~odes. after the samre
shall hav been subm~itted to the industry and shall have been ap-
provedl by a fair representaltionI of t~he industry, may be presentedl to
the Presidlent by the Code Authlority; and uponl the appr~oval of the
President of any such, amendment, upilplementary provisions or
additional codle. after such notice. and hearingr as he shall s~pecify, the
same shall become a piart of this Code and effective as such.
SECTION 6. I'iolation.-VTiolation byod ro any membe r ofe this ndusr
of any of th~e provisions of this cd ro n prvdaed
ments hereof, is an unfair method of competition an~d shall be sub-
ject to the penalties prescribed by the Act; but nothiing herein con1-

1111 11111111111111111111111111111111111111111111111
3 1262 08486 8479

trained shall be construed to create any liability or penalty for viola-
tion of this Code beyondl thie penalties prescribed by ~the Act.
SECTION '7. ppro val~ and Termnlinaction..-This Coeshall be in
effect begrinningr thie second 1110nday after its approval by the Presi-
dent p~ui~rsunt to the Act, and shall in any event terminate on June
16, 1935, or the ear~liest date prior thereto on which the President
shall by proclamation or the C~ongresjs shall by joint resolution de-
clare that the em~ergency recognized by Section 1 of the Act has
Appl~roved Cod'e No. 420.
Registry No. 102M)5~.