Code of fair competition for the clay drain tile manufacturing industry as approved on March 24, 1934


Material Information

Code of fair competition for the clay drain tile manufacturing industry as approved on March 24, 1934
Physical Description:
p.483-496 : ; 23 cm.
United States -- National Recovery Administration
Supt. of Documents
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Drain-tiles -- Law and legislation -- United States   ( lcsh )
Clay industries -- Law and legislation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
"Approved Code No.364 ; Registry No.1042-04"

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004851308
oclc - 63655119
System ID:

Full Text





I' 'I
Por sale by the Superintendent of Documents, WashibngtnD.C. Price 5 centa

Approved Code No. 384

Registry No. 10432--04



This publication is for sale by the Superintendent of Documents, Government
Printing Offlee, Washington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
Atlanta, Ga.: 504 Post Offtice Building.
Birmingham, AQla.: 257 Federal Building.
Boston, Mass. : 1801 Custoniouse.
Buff~alo, N.YZ.: Chamber of Commerce Buildinzg.
Charleston, 8.C.: Chamber of Commoerce Building.
Chicago, Ill.: Suite 1706, 201 North W~ells Street.
Cleveland, Ohio: Chamber of Commerce.
D~allas, Tex.: Chamber of Commnerce Building.
Detroit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, FIla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimnore Avenue.
Los Anlgeles, Calif.: 1163 South Broadway.
Ltouisv~ille, Ky.: 408 Federal Buildinlg.
1Memphis, Tenn.: 220 Federal Building.
Mvinneapolis, Minn.: 213 Federal Building.
New Orleans, La. i Room 225-A, Custombouse.
New YJork, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philade-lphia, Pa.: -1"2 Commercial Trust Buildinlg.
Pittsburgh, Pa.: Chamber of Commerce Building.
PortlIand, Oreg.: 215 New Post Officee Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customohouse.
S~eattle, WCash.: 809 F'ederal Oflice Building.

Approved Code No. 364



As Approved on fMarch 24, 19341


An application having been d~uly made pursuant to and in. full
compliance with, the provisions of TPitle I. of the National Industrial
3Recovery Act, approved June! 16, 1933, for approval of a Code of
Fair Competition for the Clay Drain Tile Ma~lnufac~turing Industry,
and hearings having been duly held thereon and the annexed report
on said Code, containing ~findings with. reisp~ct, thereto, having bee
made. and directed to the P'resident:
-NOWP THIEREFORE,~I onl behalf of the Presid~ent of the United
States, ZI, Hugh S. Johnson ,Admninistratoo r for Ind~ustr~ial Recovery,
pursuant to authority vested in me by Executive Or~ders of the
President, including Executive Order numbnler 6543--A, dated Decemn-
ber 30, 1933, and otherwise, do her~eby incorporate by reference said
annexed report and do find that said Code complies in all respects
with the pertinent provisions and will promoted the policy and pur-
poses of said Title? of sa7id Act; and do hereby order that said Codle
of Fair Competition be and it is herleby~ apIproved; pr1ovidedl, how-
ever, that the provisions of Article VII, Section 2, insofar as theyS
permit a Regional Comnmitte~e to adopt a plan whlich wouldCI prescribe
a, waiting petriod3 betwenc~r t~he filing wCith the `Reriolnal Committee
and the eff3ctjive date of revised price. lists, discounts or terms and
conditions of sale, be and they are he~reby stayed pendillunlg further
Order either within a per~iod of sixty day-s from the effective lat~e
of this Code or after the completion of a study of open price
associations now being conducted by the Nllational Recovery
Adm7in~istratoo r forl Inldu~strial Recov~ery.
Approval recommended :
A. R. Gr..acY,
DivlisionMZ Admijnisl~torat
111aurchn i94, 1934.
48729"-425--142-34 (4gg)


Thle W1hite rouse.
SIn: Thiis is a report on the Code of Fair Competition for the Clay
Drain. Tile Manufacturing Industryp, a hearing on which was con-
ducted in Washington on the fourth of January 1934 in accordance,
with thne provisions of the, National Indiustrial Recovery Act.

This Code provides that no employee shall be permitted to work
in excess of an average~ of forty (40) hours per week over any sixr (6)
month period, nor in excess of forty-eight (48) hours in any week,
nor in excess of eight (8) hours in any day, except the followmyg:
(a) Managers, executives a~nd techmeal employees, receiving
thirty-five ($t35.00) dollars or more per week, and commercial
traveling salesmen;
(b) Office employees who may not work in excess of forty (40)
hours in any week;
(c) Watchmen, whlo mlay not wRork inl excess of fifty-six (56)
hours in any week;;
(d) Truck drivers, who may not work in excess of an average of
forty (40) hours per week over any four (4) w~eekl period nor in
excess of forty-eight (48) hours in, any week;
(e) ]Employ~ees directly engaged in the continuous dryrin g and
burning processes, who may work not in excess of forty-eight (48)
hours in any week nor eight (8) hours in any day;
(f ) Kiln setters and k~iln drawers, whoe may work: not in excess of
an average of forty (40) hours per week over a six (6) month period
nor forty-eight (48) hours in any week, provided that one and one-
third times the normal rate be paid for time worked in excess of
forty (40) hours in any week.
(g) Employees engaged in emergency repairs, wFho may work not
in excess of an average of forty (40) hours over any six (6) month
period, provided that one and one-third times the~ normal rate be paid
for time worked in exc-ess of forty (40) hours in any week.

T~he Code provides for minimum rates of pay of 35 cents per hour
in the North and 30 cents, f27 cents, 25 cents and 24 cents per hour in
each of four southern zones, the southern rates anld zones colnform-
ing to those provided for in the Code for the Structural Clay Prod-
ucts Manufacturling Industry. It provides for minimum rates of
pay for accounting, clerical and office employees of from $16 per
wrceek to $14 per week, depending upon the size of the city, in the


immediate trade arena of w~hich th~ey a re emplow<1l. and for minimumln
rates of pay~ of $15 ,er w\ecek for wa3tchmen.'l1 It provilles for the
incrcase~ of wn~ses ab~ove the minimum, to preserved equitable tlitefr-
entials, and for report to the Code ~Authority of act ionl takenl with
preference to these adjuistmeints.

AL~pprox-~imately 95%r of the prodluc~t of this industry is sold to the
farmerI and al-pproximatelyy 849~ of it is produce~~d and sold in the
States of Ohio, Illinoc-is, Indiana, 1\fichigan andI lawn;. Because of
the vetrry low p~urcihasing power of the farmer, particularly inr this
section, the industry findrs itself in a desperate condition. Sales have
dropped aboutll 83% in volume and 8:V' in value since th-e year 1990.,
A Ilarge percentage of the indulrstry is banklrupt.
Employment has already beecn spread, in this industry, to the point
he~re avernge timle wi~orkied has been redcedlrcll to ~12 hours per weeck
anld av\erage wveeklyT ealrninr s to $2.40. In the face of an 83%0 de-
cline in prodluction, the number of empllloyees has deccreansed but 25'1',
fromt 3,600 in 1929 to 2.6530 in '10r33. Obvr\iously,the appllication of
the Code will not increase employment. It wil, however, tendlc to
shorten the long idle periods betw-een periods of opleratio~n.
The average mninimumr l wngne rates provided for in the Codle are
75%J higher than the average minimum wagfe rates nowR7 in effect and
are higher than those in effect in 1929. It is only by meanns of a
substantial increase in farm purchasingi n powder that thle .industryfll) will
be enabled to carry this additional burden.

Thle Assistanlt De~puty Adminlilstra;t or, in his final Irepo~r~t to me onl
said Code~, La vingr found as here~tinl set forth and on the basis of all
the proceedingsrr in this mantter;
I find that:
(a) Said Code is well decsignled to promocte the policies and pur-
poses of TCitle I: of~ the National Industr~ial Recovery Act, inc~luling
remlovnl of obstructions to thre free flowm of inlterstate andl fo,~reign
commerce which tend to diminiiish the amnountt therecof and will pro-
vide for the general~l welfare by pr~omotting' the olrganization of indulls-
try for the purpose of cooperative action among the tradce grup,,,
by indlucing~ and maintiningit united action of labor and managre-
men t u nder adequate~ gover~nmIent al sanctions a nd suprvlicr ion, by elim-
insting uinfair compectitivee pIractices, by prc-mostingr the fullest pois-
sible ultilizationl of the present productive capacity of indlustr~ies, by
avoidingi undue restriction of production (except as may be tem-
porarily requiredct), by increasing the consumption of indu~strial and
agrricultural products through inicreasing pur~chasingr poweri, by re-
ducing7 andi relieving unemployment, by improingr standards of
labor, and by otherwise rehanbilitating: industry.
(b) Saidl mdustry normally employs not more than 50,000 em-
ployees; and is not declassified by mie as a major industry.
(c) The Code as approvedl complies in all respects with the per~ti-
nent provisions of said Title of said Act, includlingr without limnita-


tion Subsection (a) of SFwt'ion1 31 l, Sbec:tion. (a) of Section 7, and
~Subsection. (b) of Section 10 thereof ; and that the applicant asso-
ciation is an industrial association truly representative of thte afore-
said industry, anmd that said asisoc~iation imposes no0 inequitable re-
strictions on. admission to membership theremn.
(d) Said Code is not designed to and will not perm~n-it moonopoiesi
or monopolistic practices.
()The Code is not designed to and will not eliminate or oppress
mllenterprises and will not operate to discriminate against them.
(f) Tlhose engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval o~f said
F~or these reasons, therefore, I have approved this Code.
HussH S. JoHNson,
IMARCHC 24, 1934r.

To effectuate the policies of Title I of the National Inrdustrial
Recovery Alct, the following provisions are established as a Code
of Fair Comlpetition for the Clay Drain Tile Mannufactulrin gr IndCus-
tr, and shall be the standard of fair comtitinfrschidsr
and shall be binding upon everymnember th:~~Ero frsc ldsrIr~f.
SECTION 1. The terms Clay Drain Tile MCianufacturing Inldus-
try "), or the industry as used herein means anrd includes the
manufuetur~e for sale of Arain tile, excluding, however, salt glnzed
clay drain tile fabricated inJ v-itrified clay sewer pipe plants by
such manufacturers thereof as have not, pursuant to the provisions
of the Code of 1Fair Competition for the Vitrified Clay Sewer ]Pipe
Mannufactur~ing Industry, elected to operate under this Code in re-
spect to the salt glazed clay drain tile so fabricated.
SEC'TION 2. The te~rm "' drain tile as used herein means a hollow
cylindler of burned clay with strai ght, ends without bell, andl us~ed for
under-drairnage. of land.
SECTION 3. The terml employee as used herein includes anyone
engaged in the industry in any capacity however compensated,~C~
exceptt a member of the industry.
SECTION 4. The term "' employer as used herein includes anyone
by whom sucrh employee is comlpensated~ or employed.
SECTION 5. The termi memberr of the indtu try inclu~de~s anyone
engragdcc in the industry as above defined, either as an emlployer or on
hris owFln behalf.
rSECTION 6. TPhe term plant. as used herein means an E~stab~lisih-
ment enrngaed in the manufacturers of dra~in tile.
SECTION 7. The terms President ", "Act ", and "LAdmrinist rator "",
as ulsed herein shall meanl, respectively, thne President of the UnTlited
States, Title I of the Nlational Industriall Recovery Act, and the
Administrator for Industrial Recovery:.
SECT"ION 8. The term Code Conmmitte "' as u~sed herein means
the committee ap~pointed by the membcr~s of the industry to present
this Code.
SECTIO~N 9. Population for the purpose of thlis Code sharll be deter-
mined by reference to the latest F'ederal Censu~s.
SECTION i. NO employer shall cause or perm'"it any employee to
work in excess of an ave-rage of for~ty (40) hlours per weeck over any
six month period, nor in excess of eighlt (8) hours mn any dlay, nor in
excess of forty-eigrht (48) hours in any week, except that:
(a) Any employee may be permitted to workr in an y day or week
in excess of the maximumi hours above provided in the case of emzer-


agencies requiring protection of life or propertyy, or involving the
rcpair of production facilities, provided thant the total hours worked
shall not average more than 40 hours per weeki over any six-month
period, and provided further that in any such special cases at least
one and onle-third times the normal rate shall be! paid for time wrorkled
in excess of forty (40) h~our~s in any weeck;
(b) Any employee directly engaged in the continuous drying and
burning pro-cesses of the products of this industry may be permitted
to w~ork regularly not in excess of forty-eight (48) hours in any week:
or eight (8) hours in any day;
(c) Kln set ter~s and kiln drawers mnay be permitted to work; not
in excess of an average of forty (40) hours per week over any six
month period, nlor in excess of forty-eight hours in any w-eek~, pro-
vided that at least one and one-third times the normal rate shall be
paid for all time worked in excss of forty (40) hours in anry weetk;
(d) Truck drivers may be permitted to work not inl excess of an
average of forty (40) hours per week over any four week period,
nor in excetss of forty-eight (48) hours inr anyy week
(e) Employ~oees regularly receiving thirty-five dollars ($35.00) or
more per week who are engaged in technical work or mn managerial,
executive or supervisory capacities, and commercial traveling sales-
men, shall not be subject to the limitations of this Ari~cle;
(f) W~atchmen may be permitted to work not in excess of ~fifty-six
(56) hours in any week;
(g) Accounting, clerical, office, service, or sales employees (except
commercial travetling salesmen) may be permcitted to work not m
exceess of forty (40) hours in any weekr.
SECTION 2. N'o employer shall knowingly permit~ any employee to
work for any time which when totaled with that already performed
for another employer or employers exceeds the maximumn hours
permitted herein.
AurciaE IV-WgG~ES
SECTION 1. NO employee, excluding the classes of employees de~-
scribed in Sections 2, 3 and 4 of this Article, shall be paid less than
at the rate of thirty-five cents (35C) per hour, provided, however,
(a) In ABrizona, Arkansas, Kentucky, .New Mlexico, Oklahoma,
and Virginia with the exception of the counties of Arlingtonl, F'air-
fax, Ltoudloun, Clarkre and Frederickz, such minimum rate shall be
thirty (30) cents per hour;
(b) In Northr Carolina, such minimum rate shall be tw~entyv-seven
cents (274) per hour;
()In Tennessee, such minimum rate shall be t wntyr-fiv~e cents
(254) per hour; and
(d In Ailabama, Florida, Georg~ia, ]Louisiana, M~ississippi, South
Carolia and T~exas such minimum. rate shall be twenty-four cents
(244) per hour.
SECTION 2. Atccountinlg, clerical, or offie employees shall nlot be
paid less than at the rate of $1_6.00 per week, in any~T city of 500,000
population or over, or in the immediate trade area of such city;
and not less than at thne rate of $15.50 per weei in any city between
100 000 anid 500,000 population, or in thne inunediate trade area of
such city; and not less than at the rate of $15.00 per week in any


city between 10,000 anid 100,000 population, or in the inunedrciate
trade area of such city; and niot less than at the rate of $14.00 per
week in any other Ilace.
SECTION 3. W~atelnmen shlall be paid not, less than $115.00 per w-eek2.
SECTION 4. A person whose earning capacity is limited because
of age~ or physic:l handicap may3 be emlployed on light wFork at a
wage below- the mlinimnum establlshedl by this Code if the employer'
obtains from th state! authority designalted byr the United States
Department of Labor a certificate authorizing his employment at
sucrh; wages as shall be stated in the certificate. Such authority
shall be guided by the instructions of the United States Depanrtment
of Labor ini issuirw~ certificates to such persons. Each~ emplloyer
shall file with the Ceode Author~ity a list of all such personls employed
by him.
SECTION 5. Th2is article establishes a minimum rante of pay,v regacrrd-
less of whether anl employee is comlpensated onl a timne-rate, piece-
work, or other basis.
SECTION 6. VQgeS above the minimum shall not be dccreas~ed, and
rates of pay in excess of thte. minimum rate her~ein provided shall
be increased to preserve equitable differentials, and mlembler~s of the
industry shall report to the Code Authority the action takien by
them in pursuance of this provision.
SmarCToN 7. Female empvloyees performing substantially the sam
work as male employees shall receive! the same rates of pay as such
male employees.
SECTION 8. An employer shall maake payment of all wages due
in lawfull currency, or by negotiable check therefore payable on de-
mand. Wages shall be exempt from any1 payments for pensions in-
surance, or sick benefits other than those v~oluntarily authorilized by
the employee or required by law. Wages shall be payable at least
semi-mont~hly and salaries at least monthly.
SECTION i. NO person under sixteen years of age shall be emnployed
in the industry, nror any one uner eigheen years of are~ at opera-
tions or occupations hazardous in nature or detrimnental to health.
Each member of the industry shall submit to the Code Aurthlority
within sixty (60) days after the effective date, a list of such opera-
tions or occupations. In any State an emnployer shall be deemed
to have complied wih the provisions of this paragraph if h(et shall
have on file a cert~ifkante or permit duly issued by the authorityS in
such State empowered to issue employment or age certificates or per-
mits showing that the employee is of the required age.
SECTION 2L. Employees shall have the rightt to organize andi bar-
gamn collectively through representatives of their owpn chioosinig, and
shall be free from the interference, restraint, or coercion of employ-
ers of labor, or their age~nts, in the~ de~signation of such representa-
tives, or in self-organization or in other concerted activities for th
purpose of collective bargaining or other mutual aid or protection.
SECTION 3. No employee and no one seeking employment shall be
required as a condition of employment to joini any company union
or to reframn from joining, orgaruzing or assisting a labor orgamiza-
tion of his owfn choosing.


SECTION 4. Employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment,
approve'\~ d or p~vstribedl~e by the President.
EC'TrION 5. No provision of this Code shall supersede any state
or federal law~ imposing more str~ingent requirements on any em-
ployer, regulating the age of employees, wages, hours of work, or
health, fire protection, or general working conditions, than under
this Code.
SECTION 6. Employers shall not reclassify employees or duties of
occupations performed by employees or engage in any other subter-
fuge~ in order to defeat the purposes of this Code or of the Act.
SECTION 7. Each employer shall post in conspicuous places easily
accessible to employees full copies of this Code.
SECTION 8. Every employer shall m~ake reasonable provision for
the safety and health of his employees at the place and during the
hours of their employment. Standards for safety and health shall be
submitted by the Code Authority to the Administrator for approval
within six months after the effective date of this Code.


To further effectuate the policies of the Actl a Code Authority is
hereby constituted for the administration of this Code.
SECTION 1. Fior a period not to exceed thirty days after th~e effective
date hereof the Code Committee shall constitute a temporary Code
Authority until the CTode Authority is elected.
SECTION 2. T'he Code Authnority- shall consist of one representa-
tive from each of the regions established in Section. 5 hereof, or as
may be hereafter established, to be elected by a majority vote of the
members of the industry located in the respective regions, and one
member to be elected from thle industry at large~ by the members
elected from the said regions, to serve for a perlocr of one y~ear.
In addition to the membership above provided, the Admninistrator
may appoint not more than three additional members, without vote,
to serve for a period of one year from the date of appointment.
SECTION 3. In the event of any vacancy in the voting membership
of the Code Authority, the remaining members may designate a mem-
ber (from the region to be represented if the vacancy is that of a
regional member) to serve temporarily until such v~acancyr shall have
been filled, in the manner provided in Section 2 of this Article for
tthe original selection of such menmber, by a special or regular elec-
SECTION 4. Flor the purpose of the elections of the Code Authiority
the temporary Code Authority shall call a meeting of the members
of the industry in each region, as established in Section 5 hereof, upon
ten days' notice sent by registered mail to all members of the indus-
try in ~the respective regions, who may vote in person or by proxry.
At these meetings the members of the industry shall elect the re-
gional Code Committees, as provided in Section 7 hereof.
SECTION 5. The industry shall be divided into the following re-
glons and such regions shall be, within the limitations hereinafter
provided, independent and self-goverming in respect to the admin-
Istration and enforcement of this Code wFPithin such regions:


Region No. 1. LStates of Ohio an~d Michi~ganl;
`Region No. 12. States of Indiana and K~entucky;
Region NIo. 3r. States of Illinois and WC~isconsin;
Region No. 4.~ All States~ Wesct of Mrississippi River, except those
included in Region No. 5;
Region NPJo. 5. States of Washing~ton, Oregon, California, Tdaho,
Neyndn a nd Arizona;
Region No~. 6. Ahll St~ates East. of thne Mlissi~ssippi. ex'ept thlose in-
celudled in. Regions Nos. 1, 2, and 3.
SECTION 6. SuIbj ect to the approval of the Administra;torI the Code
Aulthlority mnay establish1 regions in addition to those hereinabove
etstablishedl and may revise the regions from time to time established
hereunder within th~e consent of a majority of the members of the
industry located in any~ sulch revised region or regions.
SECTIoN rj. The members of the industry located in each region
shall at the meeting called by the temporary Code Aulthority, as
providedd in Section 4 hereof, elect a regonal committee of five (5)
members to serve! for one year w~ithinl suchn region, as above prov~idedl,
and such regional committee shall have the following powers and
duties :
(a) To adopt by-laws and rules and regulations for its procedure
in the administration and enI1forcemnent of the Code in accordance
with the power~s herein granted, adnd to delegate to agencies and
representatives such of its powers and duties as it may deem proper,
provided that nothing heremn shall relieve it of its duties and respon-
sibilities, and that such agencies or representatives shall at all times
be subject to and comply wclith. the provisions of this Code;
(b) Undrer such rules and regulations as may: be prescribed by the
Administrator, (1) to receive complaints of violations of the Code
aganstmemersof he ndutrywithin its region, (2) to make
aginesti ainmes throf ah nd sto seek ajustments of such complaints ;
and (3 to bring to thze attenutioni of the Code Authority', recom-
menda xons and information relative to nadljusted violations;
(c) TPo make recommendations to the Code Au~thority ~concerningf
the operation and functioning of this Code within its region;
(d) To cooperate with andi aid thie Codle Authority in the collec-
tion of reports and assessments for administration expenses and in
effectuating the other powes and duties conferred upon the Code
SECTION 8. Th6 COde A~uthOrity shall have the following powers
and duties, in addition to those elsewhere provided herein;
(a) To adopt by-lawcls anid rules and regulations for its procedure
in the administration andl enforcement of the Code in, accor~dance
with the powers herein granted;
(b) To obtain from memabers of the industry for its use and that
o~f the Administrator such reports as may be required under the! ActG
for the effective administration and en-forcement of the Code; al
individual reports, data, and information obtained from members
of the industry pursuant to this Code, however, shall be! kept. confi-
dential and unless the Admlinistrator shall otherwise require, onlly
general summaries thereof may be published;
(c) Under such rules and regulations as may be prescribed by thle
Administrator, to receive complaints of violations of the Codle from


the Regional Committe~es and to pIake inve~stigations thereof and
seek; adljustne~(nts of such comlplaintt s in accordance with the require-
ments of this Code, and to bring to the attention of the Adminis-
trantor reemlllic nmena tions and information relative to unadjusted
violations ;
(d) To use such trade associations, Regional Committees and
other agernlci and to delegate to them such of its powers and duties,
as it deems proper for the carrying out of any of its activities pro-
vided herein, provided that nothing herein shall relieve thne Code
Authority of its duties or responsibilities under this Code and that
such associations, regional committees aund other Agencies shall at
all times be subject to and comply with the provisions of this Code;
(e) TIlo coordinate the administration. of this Code with such other
codes as mnay be relative hereto or any sub-divisionl hereof and to
delegate to any other administrative authority, with the approval
of the Admimistrator, such powers as will promote joint and
harmonious action. upon matters of common interest;
(f) To hear and to seek to adjust controversies between or
affectingf two or more Regional Committees;
(g) To cooperate with the Administrator in regulatinrg the use of
th3e N.R.AL. Code insignia solely by those employers who have assented
to and are complying with this Code;
(h) To initiate, consider and make recommendations for the
modification or amendment of this Code.
SECTION 9. Each trade or industrial association directly or in-
directly participating in the selection or activities of the Code ~Au-
thority shall (1) impose no inequitable restrictions on m~embershnip
and ()submit to the Administrator true copies of its articles of
association, by-laws, regulations, and anly amendments when made
thereto, together with such other information as to membership,
organization. and activities as the Aidministrator may deem nlecessar~y
to effectuate the purposes of the Act.
SECTION 10. In order that the Code Authority and the RIeg~ional
Committees shall at all times be truly representative of the Industryr
and in other respects comply with the provisions of the ~Act, the
Administrator mnay provide such hearings as he may- deem proper;
and thereafter if he shall find that the Code Authority or any such
Regional Committee is not truly representative or does not in other
respects comply with the pro-visions ofi the Act, may require an ap-
propriate modification. in. the method of selection of the Code
Authority or ainy such Regional Commnittee.
SECTION 11. Members of the Industry shall be entitled to partici-
pate in and share the benefits of the activities of the Code Authority
and the Regional Committees arnd to participate in the selection of
the members thereof by assenting to and complying with the require-
ments of this Code and sustaining their reasonable share of the
expenses of its administration. Suchz reasonable share of the
expenses of administration shall be determined by the Code A~uthor-
ity, subject to review by the Administrator, on the basis of volume
of )business and/or such other factors as may be deemed equitable.
SECTION 12. In1 addition to the information required to be sub-
mitted to the Code Authority, there shall be furnished to State
and F'ederal government agencies such statistical information as
the Administrator may deem necessary for the purposes recited in


Section 8 (a) of the Act, and nothing contained herein shall relieve
any member of the industry of any existingr obligation to furnish
reports to government agencies.
SECTION 13. I~f the Administrator shall deteraine that anyI action
of a Code Authority or any agency thereof mag be ulnfair or unjust
or contary to the public interest, the Admimenltrato~r may reqyuire
that such action be suspended to afford an opportunity for investi-
gattion of the merits of such action and further consideration by
such Code Authorit~y or agency pending final action which shall not
be effectiv-e unless the Admllinistrator approves or unless he shall fai
to disapprove after thirty~ days' notice to hrim of intention to proceed
with such action in its original or modified formi.
SECTION f4. Nothing contained inJ this Code sh~all constitute the
members of the Codle Aulthc-rity or thet Regional Comlmittee~s pairt-
ners for any: purpo e. Nor shall any member of the Code Authority
or a~ny RIegional Comumittee be litb~le in any manner to anyone for
an act of any other members, officer, agent or employee of the Codq
Authority or any: Reg-ionab rl Comitt~ee. Nor shall any member o
the Code ARuthnority be liable to anyh1~'owne for anyf acistio sne or ison
to act under the Code.: except for hsonwlflmsesneo

SECTION~r i. BCCOZLthni andE Coatin~g.-Th~e Code Authtority shall
cause to be formulatedc an accounting system a.nd methods of cost
finding and/or estimating capable. of use by all mnembes of the
industry.= After such systemn and methods have been formulated,
full d~etails c~oncerningr them shall be mnade available to all members.
Thereafter all members shall determine and/or estimated costs inn
accordance with th-Je principles of such methods.
UCpon the approval of such system or maethlod by the Adminis-
trator, no member of the industry shall sell any product of the
industry below his. individual cost thereof, determined pursuant to
the principles of such approved system or :method; except
(a) to meet the competitive price of a product of this industry ofi
similar grad~e andl quality (by pubication whre- required byy a price
publication system adopted pursuant to the provisions of Seetion 2
of this Article); and: except
(b) to meet (without price, publication) the competitive price. of a
product of Another industry in actual competition with such member's
product provided such action be re ported within five~ (5) days after
the quotation is made to the Regional Commlittee of the: region into
which delivery is to be made; and except
(c) to dispose of obsolete or be~low-grade products, upon making,
within 8vre days after sale, a detailed report to the :Regional Com-
mlittee for the region within which delivery is to be made describing
the quantities and grades of such products disposed of and the price
or prices secured therefore ~ and except
(d) under such other circumstances or conditions as the appro-
priate Regional Comlmittee may determine justice requires, provided
t~hat such determination of the Regi onal Cmmittee shall apply to
all members of the industry within the region under similar condi-
tions or circumstances.


SECTION 2. Pr-ice Pucblicati~o~n.-(a.) Any Regional Committee maty,
if it so determines, require that each member of the industry within.
its region shall file with the Commrittee's Secretary a net price list
and/oor a price list and discount sheet individually prepared by him
showing his current prices and/or prices and discounts, and his
terms and conditions o~f sale, including all special discounts, freight
allowances, and terms of payment. Within ten (10) days after
notice of such determination, each such member of th~e induittry shall
complyr therewith. Thre Secretary shall immediately send copies
thnereo~f, and of any revisions therein filed as hereinafter provided, to
all other interested members of the industry, and all such lists and
revisions so filed shall be available to and susDbjiect ait all times to th~e
inspection of purchasers and prospective purchasers.
(b) Each member of thne industry shall be free to change his pub-
lishied prices, discounts or terms and conditions of sale from time to
time, but he shall file such new, amended or revised prices, discounts
or terms and conditions of sale with the Regional C~ommittee of his
region to become effective five (5) days after ~filing thereof, except
that in order to meet the revisions of another member of the indus-
try, any member may file appropriate revisions to become effective
upon the effective date of such other member's revisions, or, if such
other member's revisions have already become effective, to become
effective immediately. All such revisions shall be deemed to be filed
with ]Regional Committees, as hereinabov~e provided, when an ac-
knowledgment by wire or by mail shall have been issued by the
Secretary of such~ Regional Committee, who shall issue such acknowl-
edgment immediately upon receipt of any price list.
(c) Exrcep~t as otherwise in this Section provided, no member of
the industry shall sell directly or indirectly, through anr affiliated
company or otherwise, by any means whatever any products of the
industry at a price lower, or at discounts greater, or on more favor-
able terms and conditions than those provided in his current net
prices and/or price lists and discount sheets, so filed as aforesaid.
Any member of the industry mnay deviate from his published prices,
discounts or terms and conditions of sale when bidding in. competition.
with the products of another industry, but any such deviation shall
be reported forthwith to the Regional Committee for the region into
which delivery is to be made. An "L affiliated company ", for the pur-
pose of this Section means a company the majority of whose vcoting
stock is owned or controlled directly or through any intermediate
agency, by a member of the industry.
(d) A member of the industry, located in a region for which a
price publication plan shall not have been adopted pursuant hereto,
shall not sell any industry product for delivery in any other region,
in which such a plan shall have been adopted, at a net delivered
price lower than the lowest net price published in that region., except
by complying with the price publication plan adopted ;for such other
re ion."
OECTION 3. Productioz.-The present kiiln capacity of thhe industry
shall be registered by the members of the industry with the Code
Authority. The intention of persons engaged or engaging in the
industry to install additional kiln capacity, excepting, however, mod-
1 See paragraph 2 of order approving this Code.


ernization or replacement of: existing calpacity3, or to devote to the
manufacture of dratin tile, kilns not. used, for such pupose during
the four y~ear period endin g Feb ru ary 1, 1934, shall reported to
the Clode Authority. The Code Authority shall make suc recom-
mlendationls with respect ther~eto to the Administrator as it may deem
dlesirable to effectulate the policy of the A~ct.

The following practices constitute unfair methods of competition
for members of the industry and are pIrohibited:
SECTIN 1. Fle Mar~~n~g or BTiarandinrg.-Te false m ar i ng or
brandlinga of any product. of the industry which has the tendency to
.misleadl or deceive customers or prospective curstome~rs, whether as to
the grade, quality, quantity, substance, character, nature, origin, size,
fiih r p7repa"rationl of any product of the industry or oth~erwise.
SECTION 2. Rl/87ltfrrescu.~laO OTfj9 ?@18 FleOr MVISIC.Crlily Aid'U87 4@**
ing.-M-Iakiing or causing or knowingly permitting to be male. or
published any statement or rep~rese~ntat zon by way of advertisement
or ot~herwisec which is falset, inaccurate: or deceptive in any m~ater~ial
particular r, whether concern ing the grade, quality, qua nt~i ty, ubst ance,
character, nature, origin, size, finish, or preparation of any product
of the indust ry, or the credit terms, v~alules, policies, or se~rvices of any
member of the indlustry, or otherwise having thet te~ndency or capac-
ity to mlislead- or deceive customers or prospective customers.
-SECTION 3. Coiln/irRIOPH BIifff~r.-Cdng, permitting to be given,
or directly offering to give, anything of value for thie purpose of in-
flueinmg or rew-arding th~e action of any employee, agent, or rep~re-
sentative of anlothler in relation to the biusinless of the emiploy~er of
such emnployeet the principal of such agent or the represented party,
witout the knlowledgae of such employer, principal or p~arty~. This
provision shall not be construerd to prohibit free and general' distri-
bution of articles commonly used for advertising except so far as such
articles are actually useCd for commllerciall bribery3 as hereinabove
SECTION 4. 111 fferfC''CIC6 '1L'if ~ o7flifCtua RelatiOrc.-Afi~l ilouslg
inducing or alttemp~ting to induce the breach of an existingr oral or
written contract. betweenl a. comp~etitorl and his customers or source of
supply, or inter~ferilgr with or obstl~rutingr the per~formllance of any
such contractual duties or services.
SECTION *). Secret Rebactes.-The secret payment or allowance of
rebates, reflndls? credits, or unearned commissions or discoulnts,
whether in the form of money or otherw-ise, or the secret extension to
certain purchasers of special services or privileges not extended to af
purchasers on like terms and conditions.
SECTION 6. Giring of ?7/288, Or Gifts.-The offering or
giving of prizes, premiums or gifts in connection w-ith the sale of
products, or as an inducement -thereof, by any scheme which involves
bribery, misrepresentation, or fraud.
SECTION 7. Defamtncfion.--The dlefamlation of competitors by falsely
imputing to them dishonorable conduct, inabilityr to perform con-
tracts, questionable credit standing, or by other fase representations
or by the false disparagement of the grade or quality of their goods.


496 3 1262 08486 8677
SECTION 8. TJIIreaf8 Of 1///palOn8.-The publishing or circularizing~
of threats or suits for Infr~ingement of patents or trade marks or o
anly other legal pr~oceed~ings not in good faith, with the tendency or
effect of harassing competitors or intimidalting their customers.
SECTION 9. spilonarlre of Clornpet'it fors.--Securmng confident ial in-
formation conlcerninlg the business of a competitor by a false or mis-
fseadinga ctatemennt or representation, by a false imrpersonattioln of one
in authority, by bribery, or by any other unfair method.
SECTION 10. Acceptance of Beou/rities.-A--~ccepting securities except
at current marketable cash v~alue, in, paymllent for drain tile.
SEOTION 11. Other U-nfa~ir Practices.-Nothing in this Code shall
limit the effect of any adjudication by the Courts or holding by the
Federal Trade Com~mission onl complaint, finding, and order, that
any practice or method is unfair, providing that such adjudication
or holdingl~ is not inconsistent with any provisions of th~e ACct or this
SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of subsection (b) of Section 10 of the Niational IZndustrial
Recovery Act, from time to time~ to cancel or modify any order
approval, license, rule, or regulation issued under Title I of said
Act and specifically, but without limitation, to the right of the
President to cancel or modify his approval of this Code or any
conditions imposed by him upon his approval th~ereof.
SECTON 2. This Code, except as to provrisionls required by the Act,
may be modified on the basis of experience or changes in circum-
stances, such modifications to be based upon application to the
Administrator by the Code Authority and, after such notice and
hearing as hne shall specify, shall become effective as a part of this
Code on his approval thereof.


No provisions of this Code shall be so applied as to permit monop-
otlies or mlonop~olistic practice~s, or to eliminate, oppress, or discrimi-
nate against small enterprises.
W~hezlres 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 incr~eases in the
seller's costs.

This Code shall become effective on the tenth (10th) day after its
approval pursuant to the Act.
Approved Code No. 364.
Retgistry No. 1042-4