_ ___I~_ __
For sale by thre Superintendent of Documents, Washington, D.C. - Price 5 center
Approved Code No. 109
Registry No. 1037--1-01
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
CRUSHED STONE, SAND AND
GRAVEL, AND SLAG INDUSTRY
AS APPROVED ON NOVEMBER 10, 1933
WE DO OUR PARY
1. Executive Order
2. Letter of f'ransmittal
COVERNMIENT PRINTING OFFICE
This publication is for salle by the Superintendent of Documents, Government
Printing Offce. WIashington, D.C., and by district offices of the Bur'eau of
Foreign and Domestic C'ommrerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 5041 Post Office Building.
Birm~ingham, Ala.: 257 Federal Building.
Boston, MIass.: 18011 C~ustombhouse
Buffalo, N.Y.: Chiamber o~f Commuerce Building.
Cha~rleston, S.C.: Chamuber of Co~mmerce Building.
Chilcago, Ill.: Suite 1700,rG 201 North W~ells Street.
Cleveleduc, Ohio: Chlamlber of C~ommerce.
Dallus, Tex.; Chamiiber of Commerce Building.
Detr'oit, Alieb.: 2213 First National Bank Building.
Ho:uston, Te.\.: Cham~ber of Commerce Building.
Indiainapolis, Ind.: C:hambher of Commlerce Building.
Jacks~onville, Fla.: Chambher of Comme~rce Building.
Ka:u~nsa C'ity, .11.: 1102'8 Baltimore Av~enue.
L.Os Angleslp. Cnlf.: 116:3 South Broadway.
Lou:a\ville, KyS.: 4108 Fedleral Building.
141emuihis, Teln.: 229~ Federal Buildling.
Newn O.rleans~, La.: Ito~om 522-A, C~ustombuouse.
N'ew York, N.Y. : T3-i Customhouse.e
Nonrfolk, Vaf.: 406I- Eas~t P'luie Street.
Pailadrelp~hin, Pa~.: 933i Commuercial Trust Building.
P~itishullrgh. Pai.: C~limuber' of Commllere Buildinr.
P'ortland~, U.r~eg.: fl1.5 New~ Post O~ttic~e Building.
San Frmu-llisco.. (''lif. 310 i'ustombon~luse.
Seut~tle. T';ush.: SO9 Fedleral Building.
CODE OF FAIRr COMPETITION. FOR. THE CRUSHED STONE, SAND AND
GRAVEL, AND SLAG INDUSTnRES
A~n application having been dulyr made, pursuanlt to anld inl full
comlpiance with the provisions of title I: of the National Inldustrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of F~air Competition for th~e Crushed Stone, SCand and Gravel, and
Slag Industries, and hiearingas having been held thereon and the
AQdministrator having rendered his report, corntaining an analysis
of the said code of fair competition together with his recommaen-
dutions and findings with respect theretoc, 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 sect ion 3
of the said act have been exyet:
NOW,~T THEREFORE, I, Firanklin D>. Roosevelt, President of the
United States, pur~suant to the authority vested in me by title I of
the National Industr~ial Recovery Act, approved June 16, 1933, and
oth~erwise, do aipprove the report and recommendations and adopt
the findings of the Admninistrator and do order that the said code of
fair competition be and it is hereby approved.
T~e WrTE Hus~,F~RANKijLIN D. ROOSE`VELT.
November 10r, 1933.
Approval recommended :
Hu~an: S. JoHNSON,
The RESTENTNOVTEMBER 3, 1933.
The WhirnETe ou
SmR: This is a7 report on the proposedl Code of Fair Competition
for the Clrushed Sto-ne, Sand andl Gravel, and Silag Industries, andi on
the publiC hearing condluctedl ther~eon in W\ashiington, D.C., on August
28 and 9, 1933, in accordance with the provisions of the National
Industrial Recov~ery Act.
Crushed stone, sand and gravel, and slug, when grouped together,
rank high in total value among mineral products in the U7nited
States, being exceedled inl 1931 only by bituminous coal, anthracite
coal, and pig iron. In1 the peak year of 1929 the products of the
three industries represented a total value of $2~09,00U0,000, and some
40,00i0 wager earlers were emplIloyed. The value estimatede) of these
products fell off to $90,000,000 in 1932, while the present number of
wirorker~s in the industries is about 50 percent of the number of 1929
HOURS AND WAGES
A 40-hiour week is established, with mninimumn wages varying from
400i per' hour in the northern states to 25C per hour in the deep south.
In an inltermediatee zone the mninimuim is to be 304 per hour.
For c~r~tain peccial classes of employees, comnparativelyr few in
numrber, a maxnimumll 48-hIour week is p~ermittedl. All workers paid
ont thle hourlry\ basis are to ~ec~eive timne and one third when t~he
prescribed week~lly min ximnum hours are exceeled.
C~laild Inbornl is pr~ohibitedl. Tha~t th~e industries are concerned for
safetv and e~lfare o~f all employees is indicated byr provisions in the
Codle r~equiringy the devlopmer~ll~nt of sta~ndar7ds of safety,? the carry-
ing of employes' c-ompilensation insurance, and the active support of
aciciden t- p1e ven t ion p rogln lram.
ECONOMIC EFFECT OF THE CODE
The crulshedd stone, sand and- gravel! and slag industries have in
the pas~t In7ckedl any great degree of coordination, although each one
has had its national trade assoejation. active in engineering and
economic r~esearch, which has been of benefit, it is believed, not only
to thet ass~ocintion m Iem~bers, bult also to the industries at large and
to the onrsumilring pulic.
In w~orkling oit. thiis Code, t~he three industries propose. a new form
of cooperation, which has been expanded to include the producers
of stone, sadnd, and gravel fr~om local quarries or way~nside pits. The
inclusion of these local prodlucers, doing business mostly with port-
able machinery and equipment, has dleveloped special problems,
which ha ve been carefully considered froml all angles in the evolution
of the Clode since the public hearmg~.
The indust ries submlitting~ this Codec have been operating on sch~ed-
u~les averagningr about 48 hours a wveek~, so that with the proposed
40-hour week, there sh~ould be an increase in employment of approxi-
mantely f10 p".eret. Th~is by no means bring the industries back to
the 1929 level of'employmecnt, but to at~tain such a level th~e extensive
r~oad-building projects now under way' must be su1pplemented by an
ap~precia >le merease mn building con~str~ucti on.
The Code as proposed is fair to Industry, to Labor, and to the
Consumer, it is believed, and is thoroughly in necordance with th~e
intent and purpose of the National Industrial Recov,\ery Act.
I find that:
(a) The Code as recommended complies in all respects with the
pertinent provisions of Title I of the Act, including without lim~ita-
tion, sub~section (a) of Section 7 and subsection (b) of Section 10
thereof ; and that
(b) The applicant group imposes no inequitable restrictions on ad-
mission to membership therein and is truly representative of the
Crushed Stone, Sand and Gravel, and S~lag Industr~ies; and that
(c) Trhe Code as recommended is not designed to promote monopo-
lies or to eliminate or oppress small enterprises and will not operate
to discriminate against then, and will tend to effectuate the policy
of Title I of the National Industrial ~Recovery Ac~t.
Accordingly, I hereby recommend the approval of this proposed
Code of Fair Competition for the Crushed Stone, Sand and Gravel,
and Slag Induxstries.
Hrron S. JofNwSON,
Dlgitlzedd b) Ihe Inlernel Archilve
in 2011 wiih lunldlng from
University of Florida. George A. Smathers LtbraclelS wilh supponl fom LI/RASIS and the Sloan Foundation
Ilipi: www.archlve.org delalls codeollalrcompel8909ulnlt
CODE OF FAIR COMPETITION ]FOR, TIHE: CRUSHED STONE,
SANTD ANDJI GRAVEL, AND SLAG INIJDUSTRIES
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 C1rushed Stone~, Sand and Gravel, and
Slag ]Industr~ies and1c for such other' Indus~tries as wS7ith the approval
of the Pr~eside~nt may be governed by its provisions, and shall be
binding upon every member thIereof.
SEenowN 1. Illubstr ,ies.c.-The termn in dust ries as used herein
includes..,, the quarryin and/or crushiing., ndl/or processing, andt/or
recover1in~g ofE stone, sand, gravel, and/or s!ngr for anT1y or all purposes,
and the p~roduc~ing and/or processing for any or all purposes of the
products of such other industries as with the approval of the Presi-
dent may from time to time be govellrned by the provi-.ions of this
S~c. 2. An pliloyee.--The term. enllployee '" as used h~er~ein includes
anly person engaged in the industries in anly capacity receiving com-
pensation for his services, irrestpective of the nature or mecthlod of
SEC. 3. Employer.--The term employer "' as u~sed herein inc~lud~es
anone by whom a ny such employee is com~penlsated or emplloyed.
SEC. 4. .tRedlter Of tlde ~IM/7SFime8.--The term member of the
indlustr~ies as usedPI herein inrll'clde anyone! engag~ed in the industries
as above defined, either as an employer or on his own behalf.
SEC. 5. Pr~oducers.--(a) Crushed Stone PI oTrodc~er.--Th~e termn
" crushed stone produlcer as used herein includes any member of the
indu~stries engng~ed in, thne quarrying, and/or crushingr, and/or proc-
essing: of stone Cfor any or all purposes.
(b) salnd and Gr~avel Produccer.-T1he termn sand and gravel pro-
ducer as used- hlereinl includes anly member of the industries en-
gaged in the recovering and/or processing of sand, and/or gravel for
any or all purposes.
B() lag Producer.-The terml slngr producer as used herein
ine udes any member of the industries engaged in the r~ecovering
and/or processing of slags resulting from furnnee or smelting operan-
tions for any or all purposes.
(d) Registered Prloduicerl.-Thle term~ re gi st ered producer as
used herein in~cludles any prod-ucer as above defined, who hans assented
to this Code andr has complied with the other provisions of Se~ction
4 (c) of Article VI of thiis Code.
SIEC, 6, fly/7ONr.--T1 e termn L regiOn B S used herein includes any
one of thIe everal par~ts of th~e U'nited States established as herein-
after set fourth in A~rticle V'I of this Code.
.SEc. 7i. Distri;ct.-Theil term district "? as used her~ein includes any
subdiv-ision o~f any r~egion or regions established as pr~ovided for
SEC'. 8. Dipid/Ocrl.-- The ter~m ''l\ISIOn" as used flereln IncludeS
those~ members of the industries englagied pr~imar~ily in the productioon
of one type or class of industry p products;, so specialized in nature as
to waurarat the e~stablish;~ment of a dlivision.
SEC. 9. srIder'X~~f,.-Thle termn "' mar~keter as used her~ein includes
any r~egister~ed producer selling products of the industries in any
SEC. 10. Efecf~tive~ Dare.--The ter~m effective date as used hlerein
shall miean the b~eginning of the tenth dlay after the approval of this
Code by~ thle Preside~nt.
SEC'. ~11. Pl'e:identi Aqct, anl d Ad rnin isflcta,to.--The terms "' Presi-
dent,"f "Act." annd "Administratori "' as used herein shall mean respec-
tively the Preside~nt of th~e United States, the National Inidustrial
Recover~y Act, and the A~dministrator of Title I of said Act.
SeCnoxN 1. Working/ Tim~.--No employee, except as set forth in
this Article and in Art~icle IV', shall be permitted to w~ork in excess
of forty (40j) hourls in anyl~ one w~eek.
SEC. 2. F~reeptions.--The minimum hours specified in Section 1
of this Article shall not apply to commercial travelling salesmen; or
to- emp~loyees engaged in execuitive or manaeria;l or clerical cnapai-
ties w~ho, receive not less than $35.00O per week; or to the following
(a) Employees working ras crews on floating equipment, engaged
solely in drcdgiing and or transportation on navigable waters, pro-
videdt the Clode Authority as set up in Article V'I of this Code shall
prepare and submiit, not later than January 1, 19342, a schedule of
mninim~umn wages andi maximum hours for such employees, and upon
the approval of the Administrator such schedule shall at once become
(b) Emp~loyees engagped in clerical or office wor~k. provided the
total working hours of such employees shall not exceed forty-two
`(49) hours pe1 rweek; averagedl over any three (3) months in any
sixe (6) months' period, or six (6) dlays in any one week.,
(c) Employees engaged in outside delivery service, provided the
total wfor~kingr hours of such employees shall not exceed forty-eight
(48) hours in any~ one week~.
(d) Employees engagedl in erfergency repair work involving
breakdowns or protection of life or property, comprising not more
than five (,5) pe~rcent. of the total nulmb of employees, provided
the total workmgn hours of such employees shall not exceed forty-
eighlt (418) hours in any one week.
(e) Emiployees engaged as watchmen, provided th~e total working
.hours of such employees shall not. exceed sixty (60) hours in any
ARricLE I7TT YAGES
SECTION 1. Rates of- Pay.--(a) No emlployee, except as herein-
aft~er set forth, shall be paidl at less than thre hourly rates specified
in the following schedule which is made a part of thiis Code:
(1) Alabamia, Fl'oridia, Georgia, Mississippi,
South Caro~linal___________-, $0.25
(2) Arizonn, Arkansas, Kentucky, Louisinna,
New 1\exico, Nort Carolina, Oklahomna,
Tennessee, Texas, Virginia, West. Virginia
east. .------------------- .80
(3) California, Colorado, Connecticut, District
of Columlbin, Delaware, Idaho, I~llinlois,
Indiana, Iowa, Knnsas, M~aine, Mal[rylanId,
10assachusetts, Miichigani, Minnesota, M~is-
souri, Miontana, Nebraska, Nevada, NI~ew
Hampshire, New Jerseyv, N1\ew York, NP~orth
D~akota, Ohio including all operationss on
Ohio River, Oregon, Pennsylva~nia, Rhode
Islandt South Dakota, Ultah, V~ermont,
W~ashing~ton, Wlest Virginia west, Wiscon-
sin, yomin. ...-- ------------- .. .4
(b) For the purposes of paragrap~h (a) of this section, W~est Vir-
ginia east shall be the part of W~est Virginia south and. east of a
straight line drawn between the intersection of the boundaries of
the states of Kent~ucky, Virginia, and W~est Virginia and the point
farthest south on the western boundary of Miaryland; and W8est
Virginia west shall be the remaainder of thae state of West Virginia.
(c) Employees engaged solely as water boys, comprising not more
than four (4) percent of the total number of employees, (but in any
case there may be at least one water boy) may be paid at not less
than eighty (80) percent of the hourly wages prescribed herein.
(d) This section establishes a minimum. rate of pay, regardless of
whether an employee is compensated on, a, time rate, piecework, or
(e) To the extent practienble, weekly earnings shall not be de-
creased, notwithsta~nding that hourly work mayT be reduced, and rates
of pay for occupations in excess of thre miirnmum herein. prscribed
shall be increased so as to maintain differences in full timae weeklyl
earnings existing on July 15, 1933.
(f) No employee work~ing on an hourly basis shall be Paid less
than one and one third times his hourly rate, forn all time In excess
of the maximum weekly hours prescribed herein.
SEO. 2. rSarlarried Empoloyees.--(a) Ntio accounting, clerical, or office
empla cYoyee shall be paid less than thze rate of $i15.00 per week2 in
any it of 500,000 or more populat ion, or in the immediate trade
are ofsuc ciy; r lss hantherat of$14.00 per week~ in any
city between 10),000 and 500,000 population, or in, t~he immediate
trade area, of such city; or less than $13.00 per week in any city
between 2,500 andi 100,000 population, or in the immediate trade
area of such city; or less than $12.00 per week in any city under
204182* 188-196 33 2
2,500 population. Population for the purposes of this paragraph
shall be dleterminedl by reference to the 1930 Federal Census.
(b) No watchman paid on a weekly basis shall be paid at less
than thle rate of $13.00 per week in the States listed in paragraphs
(1) and (S) of Section 1 (a) of this Article; or at less than the
rate of $14.00 p~er week in the States listed in paragraph (3) of
Section 1 (a) of this Article.
S~EC. 3. 2 8thod of Paym~ent.--(a) An employer shall make py
ment of all wages due in lawrful currency or by negotiable chec
thierefor, payable on demand. Wages of employees paid on an
hourly baosis shall be paid at least twice a month and salaries at
least once a month. These wa.gaes shall be exempt from any pay-
ments for pensions, insurance, or sick benefits other than those
voluntarily paid by wage earners.
(b) The employer or his agents shall accept no rebates, directly or
.Iinirectly, on such wages nor give anything of value or extend favors
Ito any person for the purpose of influencing rates of wvages or the
workBing conditions of his employees.
ARTICLE V LBnon PROVrazowsI
SECTION 1. C~ld L~abolr.--No person under sixteen (16) vears of
age shall be employed in the industries, or anyone under eighteen
(18) years of age at operations or occupations hazardous in nature
or detrimental to health. The Code Authority as hereinafter estab-
lished shall submit to the Administrator not later than January 1,
19341, a list of such occupa~tions. In any State an employer shall be
deemed to have complied with this provision if he shall have on fle
a certificate or permlit duly issued by the authority in such State
emp'oweredl to issue employment or age certificates or permits show-
ing that the employee is of the required age.
S~EC, 2. Rigfi 8 of Labor.--(a) Employees shall have the right to
organize and bargain collectively through representatives of their
own choosing a~nd shall be free from the interference, restraint, or
'coercion of emlployers of labor, or their agents, in the designation
of such r~epr~esentatives or in self-organization or in other concerted
activities for the purpose of collective bargaining or other mutual
aid or protection. i
(b) No emlployee and no one seeking employment shall be required
as a condition of employment to join any company union or to refrain
fromn joining, organizing, or assisting a labor organization of his
ow choosing; and
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, approved
or prescribed by "the- President.
SEc. 3. Labor iProtect~ion.--(a) Within each State this Code shall
not supersede any laws of such State imposing more stringent re-
quirements on employers regulating the age of employees, wages,
hours of work, or health, fire, or general working conditions than
prescribeJ. in this Code.
(b) No employer shall reclassify employees or duties of occupa-
tions performed for the purpose of defeating the provisions of the
Act or* of this Code.
(c) Each employer shabll post in conspicuous places full copies of
(d) Each employer shall provide for the health alnd safety of his
employees while engaged in thie discharge of their duties. fie shall
protect his employees by workimen's compensatio-n insurance, accord-
ing to the amloult~s required in thie State of jurisdliction or the UnitedZ
States Employetes' C'ompeinsation Insuranlce,, if that State has not
established a compensation scheme for these industries.
SEC. 4. A accident pre zentioni.--Every producer governed by this
Code shall lend his coop~eration aInd active support. to t~he programs
of his trade association for the I~reduction of accidents in the conduct
of his operations. No producer shall be per~mitted~ to expose his
employees to unnecessarily dangerovus workBing~ hazards and cases of
culpable. disregard of the life and health of employees shall const~itulte
a violation of this Code. Thle Cod~e Authority as he~reinafter estab-
lished shall present to the Admiiniistrator within six months after
the effective date, sucrh standards of safetyv asin its judgmenllt will
further the purposes of this section.
SEC. 5. Company2 fac'i~lities.-~() Em1ployees other than mainten-
ance or supervisory men, or those necessary to protect th~e ir~oper~ty,
shall not, be requiired,. as a condition of employment, to live in, homes
rented from the employer.
(b) No empjloyee shall be requi~edl, as a condition of emlploymnent,
to trade at the store of the empllloy;er.
SECTION 1. RegionP.--For the purp~ose of atdministration of this
Code, the Unitedl States shall be divided into sixteen regions as indi-
cated in the follow~ing tubulatioln, which is hereb: y constituted and
made a part of this Codile. The Code Authority as hereinafterl pro-
vided mlay froml~ time to time revise such region or regions affected,
subject toY the approval of the Administrator.
Region No. 1.-A1Inine, N;ew Hampshnire, V~ermont, MaIssac~husetts,
Connecticult, andi Rhodle Island.
Region NUo. 2.--NewT York.
Region No. 3.--Pennsylvania, NJew Jer~sey, andl Delaw~iare.
Region No. 4.-W~est Vjirginia', Virginia, Ma11ryland, and District of
Regioni No. 5.-S~out~h Carolina, Georgia; Alabama, Florida, an~d
Region N~o. 6.--Nor~th Carolina, Kecntucky?, and lTennessee.
Region No. 7.-A~rkansas, 'Louisiana, and Texas.
Region No. 8.-Oh1io.
Region N'o. 9. Illinois and Indiana. i
Region No. 10.-MJichliga n and Wisconlsin.
Region No. 11.-Nhorthl Dakiota, South Daktota, and M~inniesot'a.~
Region No. 12.--Nebraska and Iowsn.
Region No. 13.--Kansas, Missouri, and Oklahoman.
Region No. 14.-Wyoming.,, Colorado, N~ew Mexico, Utah,l and
Region No. 15.--California and Nevada.
Region No. 16.-MRontana, Washi ngton, Oreggon, andl Idaho.?
SEc. 2. Districts.--Ench region may be divided into subdivisions
which shall be known as districts, to facilitate local organization,
to administer this Code and to provide self-determination of local
issues within the provisions of this Code and subject to the rulings
of the regional committee and/or the Code Aluthority.v Such dis-
tricts may be established by the marketers in any marketing area
subject to the approa~l of thl~e regional committee. Wh7en a market-
ing area is situated in more than one region, a district may be estab-
lished subject to approval of the regional comlmitt~ees affected.
SEjC. Q. Dit)/8O1NE.-- An3 grOup of members of the industries, after
submitting to the Administrator proof that they represent two thirds
of the production, or two thirds of the producers, of any one type
or class of industry products, so specialized in nature as to warrant
the establishment of a division, and that they are primarily engaged
in the production of such specialized products, may petition the
Administrator to constitute such members a division of the indus-
tries or of any one industry governed by the provisions of this Code.
Upon such submissio-n of proof and the receipt of such petition, the
Administrator, after such hearing as he may prescribe, and after
securing the recommlendation of the Code Authority, may designate
such members and all those in their class a division of the indus-
tries. Such members shall be governed by th~e provisions of this
Code, with such exceptions as may be approved from time to time
by the Code Authorityr and the Administrator.
SEC. 4. 61O7nmilttees'-(a)) Cod~e Authority.--To effectuate the pol-
icies of the Act a Ciode Authority is hereby constituted to cooperate
with the Administrator in t~he administration of this Code. The
Code Authority shall consist. of :
(1) One (1) member representing the crushed stone industry and
one (1) member representing the sand and gravel industry from each
region, and also one (1) member representing the slag industry from
ench region in which shea is produced.
(2) Twelve (1") memi~ers at large, of whom at. least one (1) shall
be chosen fromn Regions 1, 9,, and 3 as hereinbefore specified; at least
one (1) from Regions 4, 5, 6, and 7; at least one (1) fr~om Regions
8, 1), and 10; and at least one (1) from Regions 11, 12, 13, 14, 15,
(3) The president and one association staff representative to serve
as ex officio members, of each trade association tr~ulg representative
of any industry that with thle approval of the President miay from
timie t'o timne be governedl by the provisions of this Code. Such asso-
ciations are hereby initially designated as the National Crushed
Stone Association, Inc., the National Sand and Gravel Association,
Inc., and the National Slo- Association, or such successor associa-
tions as m1ay be constituted by action of the members thereof.
(4i) Representatives, selected by an equitable method to be ap-
pr~oved by' the Administrantor, of such industries as with thle approval
of the Pr~esident may from time to time be governed by the provisions
of this Co'de.
(5) .The President may appoint (from one to three) nonvoting
members to the Code Aluthority as representatives of thre G~overnment.
They ar~e to be appointed for terms of from six months to one year
and if more than one is appointed, their terms are to be arranged so
that they do not expire at the same timie.
(b?) In ordetr that thie Code Authorit~y and/or thne committees estab-
Jished herein shall at all times be t~lruly representative of the in-
dustries as defined in Article II hereof and of eucih other industries
as with thec approval of the Presidenlt may fromn time to time be g~ov-
erned by the provisions of this Code, andl in other respects comply
withl the pro~visijons of the Act, the Administrator may provide such
hearings as he may deem pr)'oper; and thereafter if he shall find that
the Code Authority and/or the committees established herein are not
truly representative or do not in other respects comply with th pro-
visions of t.he Act, may require an appropriate mo~dification in the
method of selection of the Code A~uthorit~y and/or such committees.
BAlembers of the Code Authority r~epr~esentingr each region shall be
elected by t~he regional committees of their respective regions. The
elected members and the ex o~fji~cio members shall elect the twelve
representatives at large. The Chairma of ~the Code Authority shall
be selected by thie full Code Authority from its membership.
IMembers of the Code Authority shall serve for one (1i) year from
the effective date, or until their successors are elected for a like term.
(c) Reykrtered Pr'odiucer')S.---Any member oi' the industries as
defined in -Article II: hereof, or producers in other ~industries that
with the appIrovanl of the President may from time to time be gov-
erne~d by thie provisions of this Code, shall be entitled to participate
inr and share the benefits of the activities of the Code Authority and
of other committees established hesrein and to participate in the
selection of members t~he~reof by assenting to and conliplying wlith thre
requirements of this Code and sustaining th-eir reasonable share of
the expenses of its establishment and administration. The reasonable
share of these expenses shall be determined by the Code Authority,
subject to review by the Administrator, on the basis of volume of
business and/or such other factors as may be deemed equitable to be
taken into c-onlsider~ation. Such a participant in the Code a~ctivit~ies
is herein after referred to as a "L regvistered producer."
(d) RTeg~ional CommnLittees ---The registered crushed stone, sandl
and grael, and slag ~producers in each region inr whaich- theyr are
producing materials shall elect in the manner prescribed in Section~
7 (c) of this Article, an even and like number fromn their :respective
indust ries consisting o f not lesjs than four (4) nor more than te~n (10
to thle regional co-mmit~tee. Temmes lce by each of ths
industries shall elect one (1) addlcitional member from each of these
industries to the r~egional committee.
This committee shall be equitably representative of the small,
intermediate, and large producing companies of each industry within
the region, with not more than one (1) representative from a single
company, except that a poue a aemr hnn 1 u
not oretha t~ree(3)representatives in order to grive .voting
parity to the industry or industries represented by that producer.
This committee shall also be elected with due regard to representa-:
tion from each of the states composing the region.
Members of a regional commlittee shaUl serve for, one year from
the effective date, or until their successors are elected for a like term.
(e) Distrizct Com~mittees.--The registered crushed stone, sand, and
gravel, and slag producers in each established district in which they
are marketing, shall elect, in the manner prescribed in Section 7 (d)
of this Article, an even and like number from their respective indus-
tr~ies consisting of not less than two (2) nor more than six (6) to
the district committee. The members so elected by each of these
industries shall elect one. (1) additional member from each of these
industries to the district committee.
This committee shall be equitably representative of the small,
intermedia~t, andl l~are producing companies marketing within the
district., with not more than one (1) representative from a single
company, except, that. a producer may have more than one (1) but
not more than three (3) representatives in order to give voting parity
to the industry or industries represented by that producer or
Members of a district committee shall serve for one year from
cthe effective date, or until their successors are elected for a likre term.
(f) Divi~-s~ionz C'ommnzitees.--The registered producers in any divi-
sion shall elect, in the manner prescribed in Section 7 (e) of this
Article, a division committee. This committee shall be equitably
representative of the small, intermediate, andi large producers w~it~hin
the division, wit~h not more than one (1) representat.ive from a single
Members of a division committee shall serve for one (1) year from
the effective date, or until their successors are elected for a like term.
SEC. 5. Du~ties~ of Commlriittees.--(a) Durties of C'ode A~uthrority.--
The Code Authority shall be the general planning, coordinating, and
admiinistrative agency for the industries governed by this Code and
shall1 adlopt. such rules and regulations as, in its judgm~nent, and
subject. to modification or disapproval by the Admlinistrator, are
necessary for t~he proper administration of the Code.
Without limiting the foregoing, the Code Authority shall have the
following specific powers! subject to disapproval or modificattion by
thle Admlli nist ra tor :
(1)~l To obtain from members of the industries, periodically, or
as often as it may direct, reports on wanges, hours of labor, conditions
o~f emlploym"ent, number of employees, production, shipments, sales,
stocks, prices, andi other matters pertinent to t~he provisions or
operation of this Code, sworn or unswrorn as- it may specify! or as
the Adi~minis:trator may from time to time require.
(2) To delegate to the regional, district, or division committees
the author~ity to collect from members of the industries, in such
regions, districts, or divisions such information and data as may
be necessary for such committees properly to administer this Code;
pr'ovided. how~ever, that such information and data shall be held
as confidential information by such committees, except that such
information and data shall be available to the Code Authority and
.(3.)1 To dlelegate to the trade associations of the industries* gov-
er~ned by thlis ~Code or to such subcommittees or such other agents
or agencies. as it may designate such of the administrative powers
as may practicably be performed by them, and properly to cbm-l
pensate them therefore; provided, however, that such delegation shall
not relieve the Code Aut~horityv of responsibility, and provided fur-
ther that in the performance of any such delegaated functionse, such
trade associations, subcommittees, or other agents or agencies shall
comply with all applicable pr~ovisions of this Code.
(4) To keep accurate records and accounts of thne expe~nsesJ inci-
dent to the establishing and administering of this Code, and of
doing such other things as it may have been, or may be, authorized
or instructed by the Adlministr~ator to do; and to render from time
to time such reports to the various comlmit~tees and members of
the industries as may in the judgment of the Code Authority seem
(5) To provide for the collection at intervals of funds to cover
these costs and expenses anrd to designate through whvlat agency and
in what manner they shall be collected, subject., however, to the
provisions of Sect~ion 4: (e) of this ALrticle.
(6) To collect a~nd furnish to governmental agencies such statis-
tical information as the Administ~rator mayI deem. necessary for the
purposes recited in S~ection 3 (a) of the Act.
(1) To establish from its own membership an Executive Com-
mittee which, in the interim between meetings of the Code At~uthority,
shall have all of the powers and authority of the Code Aluth-ority.
This Executive Committee shall consist initially of not more thnan
fifteen (15) members from the industries governed by this Codle,
and shall be equally and eqjuitably representative of such industries.
Thre representatives of the Grovernment appointed as provided in
paragraph (5) of Section 4 (a) of Article VI of this Code~ may also
serve on the Executive Comzmittee,. The Code Autholrityr may en-
large the Executive Committee in order to provide for equitable
representation of such industries as with th~e approval of the Presi-
dent may from time to time be governed by this Code.
The Executive Committee shall refer for hearing and determnina-
tion qluestions exclusively affecting any particular industry or mn-
dustries to thle members of the committee representing the mldustry
or industries, respectiv-ely. SuIch memb~~ers shall then act as a sub-
committee with power to hear aInd determine the question under
consideration for the entire Exrecutive Commlittee. The members
of the Executive Committee shall serve until their sulccessors are
(8) To make such inquiries and investigatio~ns and to hold such
hearings as to the operation of this Code upon the Icomlail~nt of
interested parties, or upon its ow~n initiative, as may be necessary
properyt~o administer the provisions of this Code.
(9) Toappoint regional committees mn any region or regions
where committees are nrot electedc pu~rsurant to th~e provisions ofl this
Code within thirty (30)) days after the effective dlate. Any "regional
committee thus appointed shall hold office only until a regional com-
mit~te~e for that region has been elected and qualified in accordance
with the provisions of this Code. i
(10) To establish or designate an agency on phnnning and fair
Practice which shall cooperate with the iCode Authority in develop-,
mng fair inter and intra trade practices and industrial planning, m-
eluding the regularization of employment and stabilization of
employees for the industry.,
(b) Dut~ies of Regionali Co!~mmi~ttees.- The regional committees
shall administer t~he provisions of the. Code in their respective re-
gious, provided, however, that their acts be reviewed by t~he Code
Authority: and subject to its disapproval or modification, and may
be reviewed and disapproved or modified by thle Administra~tor.
Each regional committee shall refer for hearing and determination
questions exclusively affecting any particular industry or industries
to those members of its committee elected thereon by said industry or
industries respectively. Such members shall then act as a subcom-
mittee with power to hear and determine the question in dispute for
the entire regional committee subject to the right of appeal as here-
inn after set fort.h.
The: regional committee shall maintain the author-itative list of
registered producers in each region. Each registered producer shall
sign a certificate of compliance with this Code, and shall report such
data as to production as may be required by the committee. The
r~egional commlittee shall not continue the name of any producer
on the list who has failed to pay his proportionate share of the ex-
pense incidental t~o the establishment and administration of this Code
as provided for in Section 41 (c) of this Article.
(c) Dulties of District Committees.--The district committee shall
administer the provisions of this Code in their districts, provided,
however, that their acts be reviewred by their respective regional
committees and subject to their disapproval or modification. The
acts of such district committees may be reviewed and disapproved or
modified byr the Administrator. Each district committee shall refer
for hearing and determination, questions exclusively affecting any
particular mndustry or industries to those members elected thereon by
the said particular industry or industries respectively. Such memi-
bers shall then act as a subcommittee with power t~o hear and deter-
mine the question in dispute for the entire district committee subject
to the right of appeal as hereinafter set forth.
(dl) Duties of Divi~sionz Committees.--Each division committee
shall have power of self-government in respect to all conditions and
problems relating exclusively to said division. It may establish ter-
ritorial and other subcommittees, and prescribe such duties, rules,
and regulations as are deemed necessary to carry out the purposes of
the Act and of this Code. The right of appeal from the decisiecsions
of a subordinate committee to the next higher committee, to the Code
Authority and to the Ad-lministrator, is hereby established. Fur-
thermore, the Administrator shall have the right directly to review
and d-isapprove or modify any action of any committee or subcom-
mit~tee. Any such division com-mit~tee may present to the Code
Aut.hority and to the Admlinist~rator recommendations designed to
supplement the provisions of this Code, insofar as they relate to the
members and operation of such division. Upon approval by thme
President after such notice and hearing as he may prescribe, such
recommendations shall have full force and effect anld shall be consid-
ered as an integral part of this Code.
S EO. 6. I~nte"rfegiona2: Reg ula~tio~ns.-Proposals in respect to the
administration of this Code affecting more than one region may be
made to the Code Authority by the regional committee of any affected
region, and the decision of the Code Aulthorit~y shall be conclusive,
subject, however, to the power~s reserved~ herein to the Admlrinistrator.
SEC.'. T. tO/ Hy-(a Conminittee8.<-- Each~ m~emberl o-f the Codle Aul-
thorit~v, the regional commiiiettes, the district committees, the state
committees, andl the. division committees, shall be entitled to o:ne vote
in the proceedlings thereof, andi a majority vote shall gov-ern.
(b) Produ~cers.~,-Each registered prodcelcr as definedl in Section
4 (c) of this Article shall be entlitled to one vote, excerpt as otherwise
provided in this section; provided any such prod-ucer who within
one year prior to the effec~tiv-e date, has sold and- shippdtepout
of any or all the indlust~ie~s grover~ned by this CoIPepde may oe indi-
vidually and separately as a member of any or all of such industries.
(c.) ;leetin and Votin7g Writh~in a Regrion.-A meeting of pro-
ducers within a region may be called at the instance of producersy
representing 25 percent of the production within a region, or repre-
sentinga 25 percent of the number of producers wFithin a region, or
at the call of either the regional committee or the Code -Aut~hority.
Th regristered producers of each industry shall vote for members
to represent, their industry, as fo~llows: An agreedr upon number of
representatives of each indlustry shall be elected by the 1~reist~ered
producers of thet respective industries, each of whom shall havec one
vote irrespective of production. _A likre numberiI of representatives of
each indu~stry shall be elected by the regist~er~ed producers of the
respective industries who shall vote in. adordance wilth their average
annual production sold and shipped during thie five prec~edingr calen-
dar years. In the event a, registered producer has not been producing
material throughout the five preced-ing calendar years his basis of
voting shall be determinedly as thle average annual rate of p~rodcuc~tion
so~ld and shin~pped dulring* his period of o~perantion, provided that his
p~eriojd of operation has been more than one calendar year. In the
event that he has operated less than one calendar year then he shall
be entitled to as many votes as is equal to his production sold and
shipped in tons or cubic yards according to establishledl practice
divided by 2r,,000. Each pr~odulcer shall have onle vote for ench 25,000
units or majo fraction thlereof of average annual production old
andl shippe. The unit in each case shall be in necorda~lnce with~
established practice w-ithin the region. A~fter the repr~esentatives of
each industry have been elecnted- in the, manner ab~ove set forth they
shall elect from their industry one additional miember. Except. for
the~ election of the regaional committee all of the votingr shall be on the
basis thast each registered producer shanll have onle vote.
(d) Meaeting a~nd Y'otinrg Wi7thin a District.-A meetings within a
district may be called ast the instance of marketers r~epresenting 25
percent of the production sold and shipped within thie district or
representing 25 percent of the number of Iproducers manrketinig within
the district, or at the call of either the district. committee or the re-
gional committee. The marketers of each industry shall vote for
members who shall represent their industry as follows: A n greed-
upon number of representatives of each industry shall be elected by
the marketers of that industry, each of w~hom shall have one vote
irrespective of delivered sales. An equal number of the representa-
tives of each industry on the district committee shall be elected b
the markieters of that industry, whlo shlall vote in accordance wt
thei average annual production sold and shipped within the district
for the five precedlingr calendar years. In1 the event a marketer has
not been selhlngr materials within a district, throughout the five pre-
ceding calendar years his basis of v-otingi shall be determined as the
average annulal production sold andl shipped in tons or cubic yanrds
during t~he npriod he has; been shelling in the district. Each marketer
shall hIave onre vote for each 25j.000) units or major fraction thereof
of av-eragre annual sales. The uinit in eachi case shall be in accordance
with estabTlished practice within the district. After the representa-
tivPes of each industry hanve been elected in the manner herein set
forth they shall elect fr~om their industry one additional member.
Except for the election of the district committee, all of the voting
shall be on the basis that. each marketer shall h~ave one vote.
(e) Mceting and T'oting With2in. a. Divisionl.--A meeting within a
dlivision mayv b. calledC at. the~ instance of p-rodullcers I~represntijng
t-wentyr-five (25) Ipercent of t~he producrtion, or representingr twenty-
fi~ve (i25) pe rcen t of the producers within the division, or at the call
ofte Code Authority. The registered producers shall vote for
members of the committee to represent their division, in such number
and upon stichl eqluit~able basis as may be appr~oved by the
SEC, 8. R~ighlt of Appjeal.--A~ppeal from any decision by a district
committee may be taken to the regional committee or comnmittejes
of the region or regions in which such district is locatedl. Appeal
from any decision by a regional or division committee mayv be taken
to thne C3ode Auth~ority or its accredited representative. The deci-
sion of the Code Author~ity or its accredited representative shall be
final except for appeal to the Adlministr~ator. Any producer may
exercise, the right of appeal as herein providedl from any decision
affecting the interests of such producer. Questions on original hear-
ing or an appeal exclusively affecting any particular industry shall
in every instance be referred for hearingr and determination to those
mzemrbersd of the committee elected thereon by said particular indtustry
Or InOUStn~es, r~espectively
SEC. 9. A rbitratioi.--Com plaints or cont roversies, in volving labor,
thZe consuming interests, or groups outside of the industries which
cannot be satisfactorily settled by the C~ode Authority may, with the
consent of the interested parties, he referred to an arbitration board
composed of equal representation from each of the groups involved
in the complaint or contr~oversy, together withl a neutral arbiter
selected by the appointed members of the arbitration board. The
decision of the arb~itrat~ion board shall be final.
S~c.10.Admnistatin Erpenes.Allof the costs andl expenses
of establishing and admninisteringr this Code shall be borne by the
registered pr~oducer~s in the industries governed by th~is Code. It is
hereby~ agreedI by and11 between sulch p3rodu(er's) and each for himself
and with the Code. Authority, that 'each such producer shall pay at
the time required such assessmlents covering the afor~esaidl cost as
may be required by the Codle Authority. The Code Authority may
appoint such agents or agencies as it, may~ designate for the collection
of these assessmenlts. These costs as herein referred to shall be
equitably distributed among the registered producers -in the various
industries by the Code Authority, In conformityS with Section 4 (c)
of this A~rticle.
SEC. 11. Tradle A4ssciartio-n.-Ench trade or industrial association
directly or indlirectly participating in the selection or activ-it~ies of
the Code A~uthor~ity shall: (1) Impose no inrcquitab~le rest~ictiions on
memb~ership; and (~2) subm it to the Adm~inistratorr true copies of its
articles of association, byla ws, regulations, andl- any amendments
whern mad-e thlereto, together ithl such other inlformaltion as to mem~-
ber~ship>, organization, and acti-vities as the Adlministratoo r na~y dleen
necessalry to effectuate th-e purposes of thre Act.
ALRTICLIE VII-TRADE PILICTICES
SECTION 1. Unfai MVethod.--The following pra"cti'es constitute un-
fair methods of competition for members of thne indu~strie~s aInd are
(a) Secret Re~bates.--To make secret prepayment of transportation
charges or permit t~he payment or allowance of secret rebates, re-
funds, credits, or unearned discounts, w~hether in the form of money
or otherwise, or extending to certain purchasers special service or
privileg~e not extended to all purchasers urnder like terms and
(b) C'ontrarct Inzterfereruce.-T interfere wilfully with anyone' by
any means or dev-ice whatsoever, in any existinpr conltrnet or order
between a seller and a purchaser inl or concerning th~e production,
manufacture, transportation, purchase, or sale of any industry p~rod-
uct or t~he performannce of any contraclctual duty or servi-e connected
therewrith, with the intent and/or effect of thereby destroying or
approp~riating in whole or in part the property or busilness of another
enoeaged in th~e industries governed by this Code.
c~ ) Dfie)lnwtonl.-To defame a competitor by wordls or acts, falsely
imlputing to him d~ishonorab~le conduct, inab~ilit~y to performn contracts
or questlonable, credit standing, or by the false disparagemenlct of the
grade or quality of his material.
( d) MI~i~sre1'''Persenfttio.---To Sell or o ff er for sale any industry
product in such manner as knowingly to dlec~eive purchasers or pros-
pective purchasers as to the quality, quantity, size, grade, or substance
of such p~rodluct.
(e) Misb:~tlranding.- Too mark or brand any product of the industry
for the purpose or with the eif~eet of misleadilng or deceiving pur-
chasers wiith respect to thre quality, qluant~ity, size, grndte, or substance
of such product,.
()Commnercial Briibery.--To offer or gi~ve commissions, prizes,
git,excessive entertainment, or othIer benefits as an act of commerc-
ciall bribery to anyone in connection with, the sale, purchase, or use
of any industry product, or as an inducement thereto.
(g) LuC)mpr-S1m. Bid~in~g.--To sell any industry product except on
a unit-price basis.
(h) Contingent Sell~in~g.-T~o enter into any agreement for fulr-
nishing any industry product contingent upon the sale or purchase
of any other product or service, or other contingency not appearing
in the contract.
(i) Jobbers anld D's~tribuctors.-Since the great volume of in dust ry
products is sold by producers direct. to consumers no producer indi-
rectly shall viol'ate this Code by disposing of his industry products
through a middleman whom he controls by stock ownership or other-
wise and who does not adhere to the standards of fair competition
established in thiis Code.
SEC. 2. Cost Determination..-(a) Wlithin 120 days after the effec-
tive date, the Code Authority shall establish, subject to the approval
of the Admiinistrator, a standard uniform accounting and costing
systemn for each industry governed bby the provisions of this Code.
(b) W1hen approved by the Administrator full information con-
cerningi such uniform standard systems shall be distributed by the
Code Aiuthority to all members of the industries. Thereafter each
members shall adhere to the standard uniform system for the industry
or industries in which he is engaged to the extent of incorporating
in his eniculations of cost all of the elements prescribed by such
(c) Any district committee may, if it, so elects, and subject to the
approval of its regional committee and the Code Authority, adopt
for the producers selling within that district, the op~en-price policy
prescribed in paragraphs (d) and (e) of this section.
(d) NTSo producer sellino- within a district described in paragraph
(c) of this section shall sell any product at less than his prime plant
cost thereof, plus tenl (10) percent.. Such cost shall be computed in
accordance with th~e standard uniform ac~counting~ and costing system
for the industry in which the producer is engagred and shall include
all items of cost exclusive of return on enpital invested, interest on
borrowed capital, depreciation, depletion, administration, selling
costs, and reserves.
(e) In any district where the open-price policy is adopted each
producer selling~ within the district shall file with the district comm-
mitteee not less than five (5) dayLs in advance of t~he effective late
thereof, all prices, terms, and conditions of sale, which shall be f.o.b.
plant, or delivered, or both, as may be directed by the district com-
mittee. Such prices, terms, and conditions of sale shall continue in
effect until other prices, terms, and conditions of sale have been duly
filed as herein provided. The district committee shall immediately
cause copies of all such prices, terms, andi conditions of sale filed with
it to be distributed among t~he! producers celling* within the district,
and to be made available for public information.
NVo provision contained herein shall be construed as preventing
any producer selling within a district from meeting, as of their
effective date, the prices, terms, and conditions of sale, filed as herein
provided by aIny other producer.
sExcep~t sa s providedd in the foregfoingr no producerPI sellil ng within
a dstictshlldeviate from the prices, terms, and conditions of sale
filed by himn as hlerein p~rovidled.
SEC. 3. i~iifoff4 T6798 of Sale.-ITn each Ieregion, district, or divri-
sion, the regional, district, or divizion committee, as the case may be,
mlay establish, subject to the approval of the Aidministrator, terms
of sale uniform withinl eachi rIegion, dist rict, or division. Such terms
shall be binding upon~ all pr~odlucers selling in that region, district,
SEC. 4. Unjforin Credi~t PI~racticesr.-Iln each region, district., or
division, the regional, district, or division committee, as the came may
be, may establish, subject to the approval of the Administrator,
credit practices uniformi within such region, district, or division.
Such practices shall be binding upon all producers shelling in that
re ion. district, or division.
...Ec. Plantr Capiacity alnd NewP Plcrolcluedoni.-(a) To pr~mo~te the
fullest porssible utilization of thre pr1esent productive capacity~ of thne
industries governed by this Code, to curb ulneconomic ovclll~-~rprdct io~n
in the various regions herein establicshed, and otherwise to ettec~tuate
the purposes of thle Act there shall be elected in each state, as hcrej-
inafter provided, a stranding committee which shall survl\ey its State
to ascertain the avanihalble sources of sup~ply of the pr~odu~c~ts of these
industries within the Sitate, the enp~ncity of existingr production facili-
ties and the relation b;etwveen existing enpaesty and the actual and
potential demand in such state. TChis committee shall be known as
the state committee and shall consist of three (3) sta tio~nary-pla nt
producers and three (3) portable-plant prod~uc~ers, together -with. one
(1) additional member wrho shall be elected byr the-e six and may3 be
chosen fromt outside th~e industries. Thle six representative memn-
bers of the committee shiall be registered pr1oducers as defined in ~Ar-
ticle II of this Code and shall be elected at the time, of the election
of the regional committee of the region. in which the state is located.
Members of a state committee shall serve for one year from, the effec-
tive date or until thleir successors are elec~ted~ for a likre termli. The
representativ-es of the stationary-plant producers shall be ere~cted by
a majority of the registered st~ationary-planrt pro"duer's voting and
the representatives of th~e port~able-plant porodulcers shall be elected
by a maajority of the regrister~ed portab~le-plalnt producers votingr. The
surveyv and findings reported by each of these committees shiall be
filed with the ap~prop~iat~e, regional committee, which shall transmit
a copy thereof to the Code Authority and to thle Administrator.
(b) If in the judgment of such a state committeee* its survey and
findings walrrant such action, it. mn.v after due~ notice andc he~aringa
determiine and define thfe areas, if any withlin its estate in which an
ample. supply of the products of the iriciustries govern~led byr this Code
is ec~onomnicall l available fr~om existingr production facilities. Th`)e
minutes of suIchl hearing, together with the findings of the statte com-
mnittee and a m~ap showmgn~ accura-tel~y th~e bounduries of such areas,
shall be filed by each state committee with thle approprl~liat~ e rIeg~ional
committee, which shall transmnit a copy~ thereof to thle Code A~uthority
and the A4dmniniistrator and, moreover, a copy of the mrap, together
with a sumnmaary of the commttee's findings, ~shall be m~ailed to each
registered producer within the region anrd to all governmental
authorities who may properly be interested t~herein. The Admninis-
trator shall review said data and examine said map, a~nd if he shall
find that in the area or areas shown on such ma~p an ample supply
of the products of thet induastr!ies groverned by this Code is in fact
econom~ically available from existing production facilities, such area
or areas shall be established as permissive areas "' and subject to
the provisions contaied in the remnlining paragraphs of this section.
(c.) If any state committee so recommend, the regional committee
shall require, subject. to review and dlisapproval by the Admninis-
trator, that before a new~plant is installed or the pro~dlucing capacity
of an existing plant Increased within any permissive area, notice
of such intent shall be filed with th~e regional committees of the
region in whichl such action is contemplated. Upon receipt of such
notice the reglonazl committee shall refer it to the state committee
or committees in whiich suchl per~missive area may be located, who
shall collect prompltly and withl diligence full information concern-
ing existing production capacity in that area. If, in the judgment
of thme state committee, these data disclose that. such new capacity
will not tend to defeat t~he purposes of the Act as herein set forth,
the reg~ionzl, committee within fifteen (15) days after the receipt of
such notice shall grant permission for the proposed increase in
capacity. If, how-ever, in the judgment of the state committee these
data disclose that within the said area an ample supply of the prod-
ucts of the industries governed by this Code is economically avail-
able anmd that such proposed increase in capacity dloes tend to defeat
the pur-poses of the Act by further increasing over-production or
othlerise, it shall be the dutyg of the regional committee within
h86fifteen (15) days after the receiPt of such notice to recommend to
theCod Authority t~hat pernussion to~ increase the production
capacity in that ar~ea be denied. Thme decision of thme Code Authority
shall be final except as it maay be modified or revised by the
(d) The Admlinistrator upon notice to the Code Authority or the
regional committee directly involved may at any time suspend the
provisions of paragraph (cu) of this Section.
(e) ~Neither the provisions of this Section nor any recommendation
adopted bythe A9dministrator pursuant thereto shall be construed
as prevent any pr~oducer from improving the efficiency of his
plant through th~e installatioon of newv equipment or adopting any
methods designed to lower production costs.
(f) The provisions of this Section shall remain in effect for a
period of one (1) year after the effective date and thereafter until
production in thme industries governed by this Code shall reach
seventyr (70) percent. of the available p>rodluction capacity.
-ARTCLE VIII -MODTFICATION
3ECTION 1. A/Uib~ltOry PI'OZisi0tis.--This Code and all the provi-
sions thereof are expressly made subject to the right of the Presi-
dent, in accordance with the provisions of subsection (b) of Section
10 of the Act, from time to time to cancel or modify anordr
approval,"1 license, rule, or regulation issued under Tit~le If of theodr
Act and specifically, but; wPithlout limitations, to the right of the
Pr~esident to canel2 or modify his ap~proval of this Code or any
conditions imposed by him up~on hfis approval thereof.
SEC. 2. AY-l i~cdnl?11.- Thiss Code, except as to provisions required
by the ~Act, may be modified on the basis of experience or changes
in circumstances, such modification to be based upon application to
thme Administrator and such notice and hearing as h~e shall specify,
and to become effective on approval of the President.
No provision of this Code shall be so applied as to permit mnonopo-
lies or monopoilistic practices, or to eliminate, oppress, or discriminate
against small enterprises.
ARTICLE X--PaIcE TNCREASES
Whereas t.he policy of t.he Ac~t to incr1eaje~ re~al purlchansing power
will be madle impossible of c~onsununation if prices of goods andc
services increase as rap~idly~ as wges. it is recognizedl that price
increases should be delay~el andi that. when mafde, the samle should,
so far as r~easonaly~, poc.ible. be limitedc to actlual inc~reases in. the
ARTICLE XI--EFFECTTVE A )TE:
This Code shalll become etfective on, the beginning of the tenth day
after its appr~oval by the Pr1esident.
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