Approved Code No. 138 Registry No. 1013--4
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPPETITION
VITRIFIED CLAY SWEWE PIPE
AS APPROVED ON NOVEMBER 27, 1933
fee WEo DO UR PARY~
1. Executive Order
2. Letter of Transmittal
GOVERNMENT PRINTING OFFICE
For sale by the Superintendent of Documecnts. Wasblsago, D.C. - Prtee I cent1
This publication is for sale by the Superintendent of Documnents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THE) DEPARTMENT OF COWMMERCEC
Actlanta, Ga.: 504 Post Office Building.
Birminghamn, Ala.: 257 Federal Bfuilding.
Boston, Mass. : 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: ChambJer of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North W~ells Street.
Cleveland, Ohio: Chamber of Commerce.
D~allals, Tex;.: Chamber of Commerce Building.
Detroit, Mich.: 2213 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerlcet Building.
Kansas City, Mlio.: 1028 B3altimore Avenue.
Ltos A8ngeles, Calif.: 1163 South Broadway.
Louisville, Kiy.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Miiinn.: 213 Federal Building.
New Orleans, L~a.: ]Roomn 225-A, Customhouse.
New York, N.`Y.: 734 Customhouse.
Norfolk, V~a.: 408 East Plume Street.
Philadelphia, Pa.: 938 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Comzmerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 508 Olive Street..
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 F'ederal Building,
Approved Code No. 186
CODE OF FAIRI[ COMPETITION
VIT RIFID C LAY S]EIWE1R, PIPE MSIANUIFACTURIN
As AQpprov~ed on Novrember 27, 1933
An application having been dully made, pursuant to andl in. full
compliance with the provisions of tiitle I of the National Indlustrial
Recovery Act, approved June 16, 1933, for my approval of a Code of
Fair Competition for the Vitrified Clay SewTer Pipe Mannufacturing
Industry and hearings having been held thereon. and the Admin-
istrator hraing rendered his report containing anl analysis of the
said code of fair competition, together with~ his recommendations
and findings with respect thereto, and the Administrator having
found that the said code of fair competition complies in all respects
with the pertinent provisions of title I of said act and that the
requirements of clauses (1) and (2) of subsection (a) of section 3 of
the said act have been met.
Now, therefore, I, Franklin D. Roosevelt, President of the U7nited
States, pursuant to the authority rested in me by title I: of the
National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do hereby adopt and approve the report, recommenndatons,
and findings of the Administrator and order that the said Code of
Fair Competition for the Vitrified Clay Sewer Pipe Ma~nufacturing
Industry be and it. is hereby approved.
FRANKLIN D. ROOSEVELT.
Approval recommended :
HUGH S. JoHNSON,
THE TYHITE IIOUE,
November 7Y, 1933.
ThePREIDETNOVEMBIER 6, .1933.
TheR White Howes.
SmR: This is a report on the Code of F~air Competition for the
V;Titrified Clay Sewer Pipe 1Manufacturing Industry in the United
states, as revised after the hearing conducted in Washington on
October 30, 1933, in accordance with the provisions of the National
Industrial Recovery Atct.
PROVISIONS OF THI~s COD3E: AS TO WAGES AND HOTRLS
This code provides for a maximum work week of 40 hours, aver-
aged over a thirty-day period, and a maximnum work dayg of eight
hours for plant employees; and for other employees, a mnaximlum
work week of forty hours, with a ten percent tolerance for emner-
ge~ncies provided that this does3 not result in an average of more than
oryhours of work per week in any thirty-day period. The fol-
lowing are excepted:
(1) Traveling salesmen, employees whose wage is $35.00 or more
per week and wcho are engaged in technical work or in managerial,
executive, or supervisory capacities;
(2) W7atchmen, who are not to be employed in excess of twelve
hours a day nor more than. one hundred and forty-four hours in any
(3) Emnployees engaged in continuous processes, those whnose~ wGork
requires their presence prior to or after the regular hours of operat-
tion or those whose work is dependent upon climatic conditions.
These are not to be employed in excess of forty-eight hours per week;
(4) ]Employees engaged in emergency maintenance or emergency
repair work due to breakdown or required for the protection of life
or property, who are to be compensated at the rate of one and one-
third times the normal rate for time worked over forty-eight hours
per week averaged over a thirty-day period.
The employees enumerated in (3) and (4) above may not exceed
fifteen. percent of the total employees in any operating plant.
The code provides for minimum rates of pay of thirt-seven cents
per hour in the North and twenty-seven cents per hour mn the South,
whether payment be made on a time rate or piece, work basis. So
far as practicable, earnings are not to be decreased and rates of pay
in excess of these minima are to be increased so as to preserve equl-
The minimum pay for accounting, clerical, and offce employees
is to range from $16j.00 to $14.00 per week, depending upon the
size of the city, in. the trade area of wC1hich they are employed.
WVatchmen are to be paid not less than. $15.00 per week. Agred
or infirm may be paid not less than. eighty percent of the minimum
wages provided for other employees, but these may nrot exceed five
percent of the employees in anyJ plant.
Employmnent of any person under sixteen years of age, or in a
hauzardous occupation, of any person under eighteen y~ear~s of age, is
ECONO~II C EFFECTS OF THEF CODE
According to figures presented at the hearing, the sales for this
industry have declined from approximately $19,000,000 in the year
1928 to an e-st imatedl $3,300,000 in the year 19i33, a decline of approxi-
mately eighty-three percent. TPhe number of employees has de-
creased from 10,284 in 1928 to 4,349 in 1933, a decrease of approxi-
mately fifty-eight percent.
In the continuous process occupations, a substantial increase in1
employment should result from. the code. In the non-continuous
occupations, thne result will be :rather a shortening of the lay-off
periods, due to the intermittent type of operation which, prevails in
The minimum wages proposed in t.he code are from fifty percent
to sixtyv percent higher than those in effect in June of this year.
The proposed southern minimum wage is higher than that in effect
in that section in 1929.
The Administr~ator finds that:
(a) The Code as recomnmennded com~pliesr in all respects wsith the
p~ert~inent provisions of Title I of the Act, including, without lim~i-
tation, subsection (a) of Section 7 and subsectionl (b) of Section
10 thereof ; and that
(b) The applicant group, imposes no inequitable restrictions on
admission to membership therein and is truly representative of the
Vitrified Clay Sewer Pipe AIlanufact~uring Industry; and that
(c) The Code as recommended is not designed to promote monrop-
olies or t~o elimlinate or oppress small enterprises and will not oper-
ate to discriminate against them, and will tend to effec-tuate the
policy of Title I of the National Industrial Recovery Act.
It is recommended, therefore, that this Code be approveed.
HUGH S. JOHTNSON,
VITRIFIED CLAY SEWCER PIPE M1ANUIFACTURI NGI
T'o effectuate the policies of Title I of the National I~ndustrial
Recovery Act, the following provisions are submitted as a Code of
E'air Competition for the Vitrified Clay Sewer Pipe Manufacturing
Industry, anld upon approval by the Pr~esident. shall be the standard
of fair competition for such Industry and shall be binding upon
every member thereof.
ARTICLE II -DEFINEPIONS
T'he term Vitrified Clay Sewer Pipe Mlanufacturing Industry "
as used herein includes the manufacture, and sale by the manmufac-
turer, of vitrified clay sewer pipe, clay ring pipe, clay underdrains,
clay wall coping, clafyu segment sewer b~locks, clay liner plates, clay
chimney pipe, clay fle lining, salt glazedl clay drain tile which is
fabricated in vitrified clay sewer pipe plants, and such branches and
subdivisions thereof as mnay from time to time be included under
the provisions of this Code; provided, however, that any sewer pipe
manufacturer may elect to operate under the code of the Drain Tile
Industry for his drain tile production, upon. giving notice ini writing
to the Code Authority of such intention.
T'he term~ employee as used herein includes any one engage
in the Industry in any capacity receiving compensation for hids
services, irrespective of the nature or method of payment of such
The term "L employer as used herein includes any one by whom
any such employee is compensated or employed.
"Plant means any establishment engaged in the manufacture
of vitrified clay~ sewer pipe as defined above.
"'Associations means the regional association, or organizations of
Regions or Districts set up for the purpose of making effective. t~he
terms, provisions, and policy of the National Industrial Recovery
The termn member of the Industry includes any; one engaged in
the Industry as above defined, either as an employer or on his own
North means all territory in. the United States except that listed
belowP under South."
"' South me~ans the followPing States: Alabama, Ar~kansas, Florida,
Georgia, K~entucky, Louisiana, Mississippi, North and~ Soulth Caro-
Vlina, Oklahoma, Tennessee, Texas, IDistrict odF Columb~ia, and
CODE OF FAIR COMPETITION
"L Region means a major territory established with definite bound-
ar~ies for the purpose of nam~inistering$ this Code in accor~da-nce with
powers delegated by the Code Authority.
District meanis a sub(-ivision of a Reg~ion, with definite bound-
aries, establiished for the pulrplose of adminillsteringb this Code in
necordance w~ith powers delega~ted by thne Regional Commnittee.
The terms Presid-ent "?, "Act ", andr "Admilni ist rator as used
hlerein menn resp~ectivcely, the Presidenrt of thne United States, the
National Ind~ustrinI R Eec~overy Act, and the Adlmini'strator of said
~AnaTcra III HounRS
Recognizing the importance of achieving the m~aximum practicable
stability of emplloyment, mnemberls of the Industry estanblishl the
1. Except as provridedl for in subsection 3 below, no employer shall
cause or permit any plant employee to work at an average of more
than forty hours p~er week in any thirty-day period, nor more thran
eight hours in any one any.
2. Except as provridedl for in subsection 3 below, no member of the
Industry shall employ any~ recounting, clerical, office, service, or sales
employees, except commercial traveling salesmen, or any~ other em-
ploy'ee not mentioned above for more than forty~ hours in any one
week, with a ten percent tolerance for emergencies, provided that in
no event shall such emnploymrent average over forty hours a wFeeki in
a thirty-day period.
3. The maximium hours of labor provided for in subsections 1 and
2 of this Article shall not apply t~o the following:
(a) Emnployees whose wage is $35 or mnore per week; and who are
engaged in technical work or in manangerial, executive, or super-
visory ca pacities.
(b) Employrees acting as watchmen, who shall not. work in excess
of twelve hours a day or mnore than 1441 hours in any two-weeks period.
(c) Employees whose labor requires their presence prior to or
after the regular hours of operation, w~hosie maximum hours shall
be forty-eigh~t hours in any one week.
(d)~ Employees whose labor is dependent upon climatic condi-
tions, whose maximum hours shall be forty-eight hours in any one.
(e) Emiployees engaged in continuous processes, whiose :maximumi
hours shall be forty-eight hours in any one week.
(f) Emp~loyvees engaged in emergency maintenance or emergency
repair work due t~o breakdown or required for the protection of life
or property, who shall be compensated at the rate of onre anld one
third times the normal rate for time worked over for~ty-eight hours
per week, averaged over a thirty-day period()$;f. ieuie hl
Employees enumerated in items ()t ficuie hl o
exceed in number fifteen percent of the total employees in any
operating individual plant.
4. No employer shall knowingly engage any employee for any
time which when totaled with that already performed for other
employers exceeds the maximum permitted herein.
AnIcLE: IV- -CAGES~
1. No employee shall be paid l-ess th~lan thirty-seven cents per hour
in, the North and twenty-seven cents per hour in the South.
2. This paragraph establishes a guaranteed minim-uml rate of
hourlyJ pay regardless of whether the employee is compensated on
the basis of a timne rate or of a piece-work performance for the hours
worked inl any pay period.
3. To the extent practicable, earnings shall not be decreased and
rates of pay in excess of thre minimum herein prescribed shall be
increased so as to preserve equitable differentials.
4. Female employees performing substantially the same work as
male employees shall receive the same rates of pay as male employees.
5. Accounting, clerical, or office employees shall not be paid less
than the rate of $16.00 per week in any city of 500,000 population
or over, or in the immediate trade area of such city; and not less
than. $15.50 per week in, any city between 100,000 and 500,000 popu-
lation, or in the immediate trade area of such city; and not less than
$15.00 per week in any city between 10,000 and 100,000 population,
or in the immediate trade area of such city; and not less than $14.00
per week in any city under 1_0,000 population.
6. Watchmen, inl either the plant or the office, shall not receive
less than $15.00 per wpeek.
7. Persons wc9hose earning capacity is limited because of physical
or mental defect, age or other infirmity may be employed on lighrt
work at not less than 80 percent of the minimum wage set byr this9
Code; provided, however, that the total number of such employees
in any one plant shall not exceed five percent of the total of such
8. All1 wages shall be paid at least twice a month, and all salaries
at least once a monthn, in cash or by negotiable check. Those wages
shall be free from any deductions for pa~ymlents for pensions, Insulr-
ance or sick benefits other than those voluntarily authorized by there
wag~e earners or required by State laws.
9. No employer shall, either in person or through agents, solicit
or accept rebates, directly or indirectly, on such wages or any other
consideeration of value except work for such wages, and neither shall
he extend favors or anly other considerattion to any person for the
purpose of influencing the wages or working conditions of his
ARTICLEL: V--GENERAL L.dBOR PnovisIows
1. No person under sixteen years of age shall be emnployed in the
:Industry, nor any one under eighteen years of age at operations or
occupations hazardous in nature or detrimental to health. Each
member of the I~ndustry shall submit to the Code Aulthority before
January 1, 1934, a list of such operations or occupations. In any
State an employer shall be deemed to have complied withl the provi-
.eions of this paragraph if he shall have on file a certificate or permit
duly issued by the authority in such State emnpowered to issue
employment or agre certificates or permits showing that thle employee
is of the required~ age.
2. Employees shall have the right to organize and bargain col-
lectively through representatives of their own choosing, and shall
be free from the inter~ferlence, rstr~ainlt, or coerIc~ion of emlol~(yers of
labor, or their agents, inr the decsignation of sulch rep~lresentativess or
in self-organization or in other conlcrestedr l activities for thie p~urposLe
of collective bargainiing or other mul~tual a~id or protc~ction.
3. No employee and nlo one seeking emlploymlent shall be required
as a condition o~f employment to join any' company") umion or to retfr~ainr
from join ing, or~gan Izingr or assist ingl a labor` ol'rga.izatfion of his ow~Tn
4. Employ1~Sers shall compl.ly with the mlaxim~um hours of labor, min-
imuml rates of pay, and other conditions of empllull~loymnt approvedt' or
prescr~ibed by the President.
5i. Within, each~ State this Code shall not. supersedc~e any! laws of
such State imposing morle str'ing~ent requir~ements on employers!.~'c reg~u-
lating the age of employees, unges, hours of work, or health, fire
protection, or general wyork~ing conditions than under this Corde.
6. Emplloyers" shall not reclassify employee~t s or duties or occupa-
tions per~folrmed~ by emlployees so as to defeat the purpll.oses of the. Aict.
7i. Each employerl shall p~ost in his plant the wage, ho.ur, and Ilabor
provisions of this Code.
8. N;o emplloyee shall be required as a condition of e~mploymnent
to tr~ade at anty store specified by the employer.
Anncia V7I A DMINISTRATIONi
1. The Industryv shall be dlivided into four Regions, namely, the
Eastern Regrion. the Mlidlell-Weste~ rnn WRgio~n, the .Cout~heri n Regio~n,
and the Pacific C'oast. Reg~ion, resp~c~ctively. rcolnsis~ting of the follow-
(n) Eastic~irn Regionl.-Ma~ine, New~ Hampl~sh~ire, Vermlont, nlalssa-
chusetti;, Rhoude Island-, C7onnLcticult, New\ York~b, Pennsylvania~, New
Jersey, Delaware,c M~arylandl, Distr'ict of C`olumini a Virginia, We'st
Virginia, Ohio, Mlichigan, that parlt of IndCiana east of the 86jth
principal lmeridianl, and insular pos~sessions of the United StatesY inl
the Atlanitic Ocean.
(b) .11/dd-lei- eternf:i Reg~ion.--T hatt part. of Indiana west of thte
86th principal mcridlian, Illinois, W~is~onisin, M~inneso--cta, Iowa, M~is-
souri, that part of Kientucky so~uthl of thle Lnoisville & Nashville
Railr~oadl fr~om Louisv-ille to W\inche~ster and~ wecst of thne same: rail-
r~oad froml W'inchlester south~, Arka~nsas, Louisiana, N~orth and Southl
Dakota, Nebranska, Kansas, Oklalhomln Texas, M~ontana, WVyoming,
Coloradlo, New Mecxico, UTtah, and Idaho.
(c) Sout/mrnC;)' 1 Regll~ion---NorthI Carolina, Soiuthl Carolina, Greo~rgin,
Floridla, Alabnma, 1\lississippi, Tennessee, that part of K~entucky not
included in thle Midd~le-W~estern Reg~ion, and the ]Palnma Canal Zone.
(d) Pacifc C'coast Recgion .--California, Oregon, Wrashington, ~Ne-
vada, Arizona, Alask;a, andi insular possessions of the Ulnited Sltates
in the Pacific Ocean.
2. A Code Au~thority, to be elected by the Industry as hereinafter
provided, is hereby constituted as follows:
One member from the Eastern Region
One member from the lifiddle-W'estern Region
One member from the Southern Region
One member from the Pacific Coast Region
TIn ndllitioln, the Adlministrator ma~y in his discretion appoint a
member, without vote, to represent the Adminillstration, without
exense~ to the Tlrlus~t~ry
3. Regional Cl~alnmittees~;. A `Regional Comxmittee of not mor~e
than eight members shall be elected in each. Region by a majority vote
of the nIembell~trs of the Indusl.-tryS inl the Reg~ion. Eachn Region shall,
as far as practicable, be self-gov~erning under the provisions of this
Code, and, to that end, the Code LAuthority-, subject to review andi
modification by the Administrator, shall delegate to each such Re-
gional Commlrrittiee suchl of its authority, powers, and duties as mayT be
necessary therefore, including the right to submit to thne Adminis-
trator recommendations for amendments to this Code, applicable
only to i;uchl Regions, within the scope of the powrpers granted ulnde~r
4. T'he membe~rrr ls of the Industry in each Region shall convene, upon
notice as hereinafter provided, on or before the expiration of one
month from the effective date of this Code for the purpose of electing
one member of the Code Atluthority and also of electing their Regional
5. District Committees. With the approval of its Regional Comn-
mitteet, anly group of members of the Industry may establish a sub-
division or district for the purposes of effectuating the policies of the
Act and admninistering the Cod e within its district. The members of
the Industry within each such district shall appoint a District Com-
mittee as a governing body, such. committee to have only such powers
as may be delegated to it by the Regional Committee of its respective
6. The Code ~Authority shall be charo-ed with, the administration of
this Code throughout the Industry aund shall have the following
duties and powers to the extent permitted by the Act, subject to the
right of thne _Administrator on. review to disapprove or modify any of
its orders, rules, regulations, or enactments:
(a) To obtain from all members of the Industry such sworn or
unsworn reports, either periodically or intermittentlyT, on wages,
hours of labor, conditions of employment, number of employees, pro-
duction, sh~ipmlentsr, sales, stocks, prices, and other matters pertinent
to the provisions or operation of this Code as it may specify or as the
Administrator may from time to time require.
(b) To make such, surveys or investigations as may be necessary
to ascertain. conditions in the IndustryT anrd the observance or non1-
observanlce of the provisions of this Code.
(c) TIo submlit to the Administrator from time to time such recomm-
mendationss concerning: Merthods and conditions of trading; thle
promotions of -tabiliza~tion of the Industry; the prevention and elimi-
lat~ionl of unfair and destructive competitiv-e prices and practices;
the galth~ering and dlissem;nilnation of rrcrdit, information so that, dulring
the: per'iodl of emergency, available credit may be adapted to the
needs of the Industry consid~ered~ as a whole alnd to the needs. of
the small as well as the large units; dealing~ with any inequalities
that many in an~y way arise to endanllger the stability of the Ind~ustry
and of production and employment; the r~egular auditing of statisi-
ticall reports, ceaslts, pr~icesi, and terms to assure necurney ,pr~event
misrepresenitation,, and verify the Industry's reports to the Admninis-
tration; such rules andl regulations regard~ing~ stanlnlardizntion, uni-
for~m cost necounting, reduction of htyles andr sizes, and brandinig
o~f products as may serve the inlterests of thie public undl othcrw~ise
eff~ctuante the. purposes of the Act; and such other :.rnnelcmmefnantions
as may from, time to time appear necessary to effec~tuater the p~urposesc
of Title I of the Act, such r~c~omnmendations, when alpprovecd b~y the
Admninistrato~r, to have the same force and effect as anly other pro-
vision of this Code.
(d) To regullat~e, subject to review, modification or disapp~roval
by the Admiinistrator, the sale of discontinued lines, off-grade ma-
terials, alnd inventories which must be convertedl into cash to meet
emerlgenlcy needs, at or below the cost of production, in special cases
if the member files adeqiuate proof of necessity, a detaleld r~ecordl
of such surplus stocks to be filed wit~h and checked by the re~spect~ivPe
regional or distict committees at the time of application for such
(e) To receive complaints of violations of this Code, mla;e! inves-
tigations thereof, provide hlearings thereon, and adjust such com-
plaints, and bring to the attention of the ALdmninistrator for p~rosecu-
tion, recommendations, and other action concerning unadjusted
(f) To coordinate t~he administration of this Codle with such other
codes, if any, as may be related to the Industry, or any subd-ivision
thereof, and to delegate to any other administrative authority, with
the approval of the Administrator, such po~e'rs as will promoted,
joint and harmomious actions upon matters of common interest.
7. Each association, as herein defined, or any other trIadle or indus-
trial association directly or indirectly~ participating in the selection
or activities of the Code Author~ity shall:
(a) Impose no inequitable restrictions on membership; andt
(b) Submit to the Administrator -true copies of its articles of
association, bylawPs, regulations, and any amendmlents whten~ made
thereto, together with such otier .information as to memlbership,
organization. and activities as the Administrator mlay dleem neces-
sary to effepctuate the purpl-oses of th~e Act.
8. In order that. the Code Authority shall rat all times be truly
representative of thle Industry, and in. other respects comply with
the provisions of the Act, the ALdministrator mnay provide sulch hear-
ings as he may deem proper, and, thereafter, if he shall find that
the Code Authority is not truly representative, or does not in other
respects complyI with the provisions of the Act, mayT retqmlre an
appropriate modification in the method of selection of the Clode
9. Any decision, rule, regulation, order, or finding madle, or course
of action follow-ed, p~ursuant to this Code, mlay be3 canceled~ or modi-
fled by the Admninistrator wheinever he shall detellirmin such action
by himi to b~e necessary to effectuate the provisions of Title I of the
10. M~emibers of the Indlustry shlnl be entitled to panrticipa~te in,
andc share the beneflit.- of, thle activ.ities of the Code Authority, and
to participate in thle selection of thle memrber~s thelreof, by assenting
to andr complyingr with the requiremntsnt of this Code aInd suistaining
their reasonable share of the expenses of its administration. The
rensonab~le. share of the expenses of administration shall be deter-
mlinted by the Code ~Authority, or RIegionlal or District Commrittees,
subject to review by the Administraztor, on the basis of volume of
bu.-.inerss and/or such other factors as may be deemed equitable to be
taken into consideration. WIlhere Reg~iona~l or District Commlittees
collect iluch~ funds, provision shall1 be madl~ce for the paymeltnt of a
p~roporti~onate share of the Code Aruth-rrity'' s exp~en e? as apportioned
by the! Code Authority.
11. In addition to the information required to be submnitted to thze
Code Authority, there shall be fulrnished~. to governmental agencies
such statistical information as the A~dministrator may deemn ne~tces-
sary for thle pulrpo~css recited in Se~ction 3 (a) of the Act.
12. W\hen the Adm~inistrator or his duly authorized agent, or the
Codel Authority or its agents, or the Regionial Colmmittee or the
District Comilltte ess shall obtain con~lfidential information, it shall
be assembled by a, disinli1etereste neutral party who shall keep it con-
fidentiall except that it may be disclosed upon the lawful demand of
eitherl HIouse of Congress or lawful committees thereof, or upon~de-
malnd( of any~ court. Totals or subltoc.tals of any data may be dis-
closed publicly, providjingr no indlividuat~l enterplrics suplynl\ing such
information be revealed. Information obtained in, the course of in-
TresIt igation shali not be disclosed to any members, including those onl
the Code Authority, unless such disclosure shall be requir~ed by the
ARTICLE VII -TRADE PRACTICES
The following practices constitute unfair methods of competition.
for members of the Industryr and are prohibited:
1. T~he false markiing or branding of any product of the Industry
which has the tendency to mnislead or deceive custi~omelrS or pro-
spective customers, whether as'to the grrade, quality, quantity, sub-
stance, char~nc:ter, nature, origin, size, finish, or preparation of any
product of the I~ndurstrg; or for a manufllctur~er to ship his products
ulnerlt the name o~f any nonm~anufacturing buyer; or deliver~ing of a
h-ighercl priced product when a lower priced product was so~ld~ and/or
chnarg(red. to the customer.
2. 6The making or causing or knowingly perlmitting to be mande or
published, any7 false, materiailly irnaccurante, or decep~tivc statemeltnt by
w7a~y of adver-1tisement~n or otherwise, whether concernming thle grade,
quality, quanlrtity, substance, character, Inatur~e, origin, size, finish,
or preparation of any product of the Industry, or the terms~, prices,
or credit terms, values, policies, or services ofany membler of thle
Indlustry3, or makling misleading guarantees as r~egard~s the per~for~m-
ancet of a, manufacturer's products or the strulctulres in which~ they\
are mel~, or making any guarl~anteess other than standard guanrantees
as adcopted by malnul~fnet ur~ers of thlei r respective r~g~ionsi or districts,
or otherwise having the tendency or e~npneityy to mlisleadl or deceive
culstomersI' or prospe'ctive customers, or for the purpose of gainingr an
uinfair competitive adva\nitagre.
3. Directlyr or indirectly to givPe, or permit to be giv.en, or offer to
griveP molney or a.nythingr else of value to agents, e~mployees, or repre-
sentatives of customers cir prospective customners, or to agents, em-
ploy)ees, or representatives of competitors' customers or prospective
customers, without the knowledge of their employers or principals,
as an inducement to influence their employers or principals to pur-
chzase or contract to purchase from thle maker~s of such gift or offers
or to influence such employers or principals to refrain from, dealing
or contr~acting to deal with~ competitors.
4. Mjaliciously inducing or attempting to induce the breach of an
existing oral or written contract between a competitor and his cus-
tomer or source of supply, or interfering withz or obstructing t~e pelre
formlance. of anly such contractual duties or services; solicitation by
a manufacturer or h-is representative, directly or indirectly, of an
order for his product with the knlowledlge that a signed order fromt
one in authority has previously been given a competitor, or the
renewal of sales effort by a competitor on an operation after the
seller receiving the order has commenced delivery and where differ-
ences have arisen resulting in a cessaton, of delivery, unless the said
seller has had a reasonable opportunity to adjust such differences;
or cancellation or repudiation of contracts by either the buyer or
seller of vitrified clay sewer pipe, except for legal cause, or in accord-
ance with, express terms of the contract, or by mutual consent.
5. The secret payment or allowance of rebates, refunds, commis-
sions, credits, or unearned discounts, whether in the form of money
or otherwise, or the secret extension to certain purchasers of special
services or privileges not extendled to all purchasers on like terms and
6i. The offering or giving of prizes, premiums, or gifts in connec-
tion withn the sale of products, or as an inducement helireto, by any
scheme which involves lottery, misrepresentation,. or fr~aud, unless
prices published make clear that such prizes, premiums", or gifts will
7. The defa mation of competitors by falsely imputing to thlem dis-
honorable conduct., inability to performs contr~nets, questionable credit
standing, or by' other false representations or by the! false dipa~ra~ge-
ment of the grade or quality of their goods.
8. The publishing or circularizing of threats of suits for infringe-
ment of patents or trade marks or of any other legal proceedings not
in good faith, with the tendepncy or effect of ha rassingr competitors or
intimidating their customers.
9. Securing confidential information concerning the: business of a
compet~itonr by a false or misleading statement or representation, by a
false impersonation of one in authority, byr bribery, or by any other
10. The making of installed or lump-sum prices by a manufac-
turer or his agent, thereby concealing the unit price of the items em-
braced therein; or guaranteeing that any specific quantities will do
the job which are actually insufficient for the purpose; or the making
of any bid when its acceptncn e iscnt~ing~nt uponn the acceptance of a
bid on any other clay products or other buildiing material or com-~
11. Thne shipment of vitrified clay sewer pipe on consignment.
12. The practice of accepting, in payment for vitrified clay sewer
pip, scurtie suh a motgaes, bonds, stocks, or tax bills or cer-
tificates, except at current mareal ahvle
13. Furnishing any contractor, sulbc-ontractor, or agent with a cer-
tified hill i ng check or bid dli n bond; or d directly or indli rectly fi na nc-
ing such buyers by pr ep'ayingb freight or otherwise.
14. Delivrerinng by truck or otherwise of less than ear~load lots of
vitrified clay sewer pipe at enr10a,;d prices, or delivering cearloadl
quantities by truck or otherwise f.o.b. site or f~o.b. dealerll~ yard at
the same or at a lower price- than carl0ads f.o.b. near~est station or
spur, except when specifically approvedi by thne respective Regional
or District Com~mittees.
15. The Regional Commlittees may makre and admlinister plans,
subject to review and modification or disapproval thereof by the A~d-
ministrator, whereby contractors', dealers', or jobbers' dlisc~ounts will
not be extended to ;those who do not perform th~e functions of con-
tractors, dealers, or jobbers, a~nd for the regulation of commission
16. Selling belowFP allowable cost, as hereinafter providedl, unless
such selling below allowable cost is approved in writing by the
proper ]Regional or District Committee in advance of such sale.
17. Selling or offering for sale for delivery in thne 'Industry memb-
ber'ss own Region, or any other Regfion. or District, of any vitrified
clay sewrcer pipe at less than the producer's allowable cost, plus trlans-
portation charged to points of delivery, for the product involved as
determined in accordance with the pr~inciples described in Art~icle
VIII; provided, however, that any producer may sell at below his
allowablet cost to meet the competition by any other prIoducer whose
price is not less than his allowable! cost.
1.8. T'o fail to comply with any or all of the provisions of Article
IXI and XIII of this Code.
19. Nk~othing in this Code shall limit thne effect of any: adjudication
byT the courts or any holding by the Federal Trade C~omnmission on
complaint, finding, and order that anly practice or methlod is unfair,
providing; that such adjudication or holding is not inconsistent with
anly provision of the Act or of this Code.
ARTICLE: VIII--SEING; BELOW COST
1. Allowable cost in each respective Region or District, shall in-
clude the following elements:
Manter~lials, at cost.
Proportionate share of indirect expenses and fixed charges.
Indirect expenses are! to include dtepr~eciation and,'or depletion,
computed according to maximum rates allowed to the respectivec
memrberIs of the Indlust~ry by Federal Income T~ax Procedure, but to
exclude the following items:
~Anyr reserves other than for depreciation ald~/or depletion.
'Executive salaries in. excess of $10,000 per annum for each
Salesmen's salaries and expenses.
Other selling expenses.
The proportionate part of indirect expenses and fixed charges to
be incluldedf in allowablle cost shall be determinedl on the following
Each members of the Industr~y shall report to his Regional Comn-
m~ittee thle followinga informaltionl covering business tra~nsac~ted in
the years 1927 to 19332, inclusive, _in separate totals for each year:
Sales in tons and amounts.
Production in tons.
Indir~ect expenses and fixed charges, exclusive of exceptions
From these reports there shall be calculated the average tonnage
produced, the average cost of production per ton, and the average
Indirect expenses and fixedl charge~s per ton produced,) as defined
above, for the one-third part of the IndustryT whichn had the lowest
cost of production per ton for the six-year per~iodl; anrd th~e resulIting
average per ton of indirect expenses and fixed charges shall become
the standard charge of bur~den to be includedl in production costs for
t~he respectijv e Reglons or Districts by every producer covered by this
Codle, for the purposes, of dleterminingg whether or not sales or offers
of sale ar~e mlade below cost.
In the case of any comphaint by an interested party that a mem-
ber of the Industry is viojlatingr th~e foregoing cost pr~ovision, the
burden of pr~oof- of compliance shall rest upon the accused member.
.If thle Code Authority or th~e ALdministrator is not satisfied by the
proof furnished byT the defendant member, the matter schall be re-
fer~red to the Federanl T'rade Conunmissio~ n which may audit the de-
fendalnt's cost accounting and otherwise review his allocation of
burden; and the report o~f that Commnission shall be final regardcing
the costs of thle defendant member.
2. F~or the purpose of adjursting costs in th~e future in the r~espec-
tive Regionis or Districts, a uniformly necounting and cost-finding basis
shall be formulated for the Industry by the C'ode Authlority. and
applied by each Regional Committee as her~einab~ove provided, sub-
ject to reviewr and modification or disapproval by the Admninistrator.
1. This Code and all1 the provisions thereof are expressly made
subject to the right of the President, in accordance w~ith the provi-
sions of subsection (b) of Section 10 of the 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 limita-
tion, to thle right of the President to cancel or modify his approval
of this Codie or any conditions imposed by him upon his approval
2. This Clode, except as to provisions required by t~he Act, may be
modified on the basis of experience or changes in circumstances, such
mlodification to be based upon application to the Administrator and
such notice and hearing as he shall specify, and to become effective
on approval of the President.
Vitrified clay sewer pipe should be standardized for the elimination
of unnecessary cost, was~te, and loss, and nlo change in dimensions
of a kind likely to upset I~ndustry standards shall be mad~e byl any
manufacturer until after he has filed notice of his intentions thlereto
in thne offce of h~is Regional Committee. T'he standlrdls of thle Am~r~i-
can Society for Testing= M~aterials can be a scientific guide with
reference to sizes and strength, absorption, and other physiedl
ARTICLE XI---TERM\S OF SALE, AND CREDITS
1., The Regional Committee mnay establish standard terms of sale
and cash discounts and credit practices which shall be uniform in
each respective Region and which shall be binding upon all pro-
ducers, subject to review by the Code Authority and the A~dmin-
2. All quotations and contracts for the sale of v\itr~ified clayI sewrer
pipe shall be in writing and shall contain a definite statement. of
prices, quantities, terms of payment, time and place of dlelivery, and
all other items necessary to form a complete understanding.
3. The terms of sale of each member of the I~nd~ustryg, including
credit terms, shall be uniform in the Regionl to all purchasers of the
same class, anld shall be uniformly enforced, provided t~hat not~hinga
herein contained shall prevent an~y member of the Industry~ fromi
refusing credit to any purchaser or requiring special terms of pay-
ment when in his judgment such refusal or requirement. is necessary
for the adequate protection of the account.
4. Members of thle IndustryT mayT exchange credit information for
the purpose of eliminating losses to the Industry, andi failure to give
truthfully such credit information is an unfair method of com-
No provision of this Code shall be so applied as to permit monopo-
lies or monopolistic practices, or to eliminate, oppress, or discriminate
against small enterprises.
1. TIlhe Rtegional or Distr~ict Comm~ittee may require that each mnem-
ber of the Region or District shall file with the Committee's Secre-
tary a net price and/or a price list or discount sheet individually
prepared by him showing his current pr1ices and, or pr'ices and dis-
counts, includingtf all special discounts, ^freight allowances, and terms
of payment. TIhe Secretary shall immediately send copies or revi-
sions thter~eof to all other members of the Ilndust~ry in the Region or
2. Each, member of the IndustryT shall be free to change his pub-
lished prices or conditions and terms of sale from time to time as
conditions warrant b~ut he shall file with hiis Regional or District
Committee at least five (5) days prior to the! effective date thereof
such new, amended, or revisedd prices or terms or conditions of sal
before makringa any quotation, offering for sale, or sale inl accordance
with such revision; except that the time required for prior filingr
may' be shlortened to afford opportunity to meet a newly published
price, or to meet legitimate compIetition from competitive mnaterials
other than vitrified clay sewer pipe. Changes of prices or conditions
and terms of sale shall be deemed to be tiled with Regional or Dis-
trict Committees, as hiereinabove provided, when an ackrnowledgrment
by wire, by 'telegraph, or by mail shall have been. issued by the
secretary of such R~egional or District Committees.
3. No member of the Industr shall sell, directly or indirectly
through an, affiliated comp~any or otherwise, by any means whatever,
any of the products of the Industry at a price lower, or at discounts
greater, or on more favorable terms of payment than those provided
in his current net price and/or price lists and discount sheets, so ftiledl
with the Comm~ittee as aforesaid; provided, however, that at any time
any member of the Industry may meet the lawful price of any coml-
petitor for products of an equal grade or quality. Any such meeting
of a lower price must be reported at once to the Committee. An
"'Affiliated company for the purpose of this section means a com-
pany the majority of whose voting stock is owned or controlled by
a member of the Industry.,
Any notice, demand, or request required or permitted to be gilven
to or made on any member of the Industry shall be sufficiently givFen
if mailed, postage prep~aid, addressed to such member at the address
of surch, member on file writh the Regionlal Committee. ~Notice of
meetings shall be issued by the Secretayof each respective associa-
tion at least seven days prior to th dtes t~hereof. A waiver in
writing signed by any member of any such notice, demand, or request
and delivered to the Regional Committee shall be deemed to be the
equivalent of a notice, demand, or request duly given or made,
whether or not such waiver was signed and delivered at the time
such notice, demand, or request was required or permitted to be given
or made. Any member of the Industry mlay cast his vote on any sub-
ject by written proxiy.
Whereas the policy of the Act to increase real purchasing power
will be made impossible of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price in-
creases, except such as may be required to meet individual cost,
should be delayed. But when made such increases should, so far as
possible, be limited to actual additional increases in sellers' costs.
This Code shall becorne effective on the second Monday: after its
approval by the President, and such date shall be known as the
" effective date of this Code.
Approved Code N~o. 136
liegis~try No. 1013-05
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