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Approved Code No. 133
Registry No. 1011--1-02
NATIONAL RECOVERY ADMINISTRATION
CODE OF F~AIR COMPETITION
0- I E DO OUR PART
1. Executive Order
2. Letter of Transmittal
GOVERINMENT PRINTING OFFICE
AS APPROVED ON NOVEMBER 27, 1933
This publication is for sale by the Superintendent of Documents, Government
Printing Offce, W~ashington, D.C., and by district offces of t.he Bureau of Foreign
and Domestic Commerce.
DIISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
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Birmingham, Ala.: 257 Federal Building.
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Jacksonville, Fla.: Chamber of Commerce Bulilding.
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Approved Code No. 138
COD)E] OF FAIR COMPETITION
CONCRET~El MA[SONIRY INDUSTRY
As Approved on ]November 27, 1L933
ExBecutiv e Order
An application having been duly made, pursuant to and in full
compliance with the provisions of title I: of the National 'Industrial
Recovery _Act, approved June 16, 1933, for my approval of a Code
of 1Fair Competition for the Concrete Mbason~sr~y Industry, and hiear-
ings having been held thereon and the Admmnistrator having ren-
dered his report containing an analysis of the said code of fair
competition, together with hiis recommendations and findings with
respect thereto, and the Administrator having found that the said
code of fair competition complies in all respects with thet 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
NOW, THEREFORE, I, Frankilin D. Roosevelt, P'resident of the
United States, pursuant to the authority rested in mne by~ title I of the
National Industrial Recovery Act, approved June 1~6, 1933, and
otherwise, do approve the report and recommendations and adopt
the findings of the Administrator and do order that the said code
of fair competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
Approval Recommended :
HUan S. JoHNSON,
A dm inist ra tor.
THE nHTTE HOUSE,
November a7, 1933.7
NSOVEMBE 13, 1933.
The White House.
SmR: This is a report on the Code of FEiair Competition for thle
Concrete Masonry ]Industry in the United States, a public hnear~ing on
which was conducted in Washingrton on October 5, 1933, in accord-
ance with the provisions of the National Inrdustrial Recovery Act.
PROVISIONS OIF THEIS CODE AS TO WAGE~s AND HOUrRS
This code provides for a maximum work week; of forty hours, ex-
cept that during ~fifteen weeks of the year, forty-eight hours per
week: may be w~orked~, although the maximum daily limit permissible
in any event is e~ighrt hours~.
Managerial or administrative employees earning more than $35.100
per weekI are~ not subject to these hourly limitations. Further exscep-
tions are provided for epln>oee.s engaged~ in emergency wocrk~, who
may work forty-eight hours per week-l averaged over any fifteen-weeki
period; watc~hmen, who may work sity-four hours per week; and
shipping clerks, who may wortk fifty-two hours' per week. Not more
than six days may be worked in any seven-day period.
This code provides a minimum hourly rate of forty cents per hour,
except that inl specified Southern J$tates a mlinimulm rate of thirty
cenitsz~ per houur is providers(, whether the comlpelnatio~n is basedl on a
time rate, piecework, or other basis. Accounting, clerical, offie,
service or sales employees are to be paid at not less than $f15.00) per
wPeek~. Mnagr~rerial or administrative employees mayT be paid not, less
than $35.00 per week.
For all time worked in excess of eight hours per day or for~ty hours
per week, employees are to be paid at one and one third the regular
hourly rate. Provision is made for maintaining existing w~age dif-
ferentials. No person under eighteen years of age may be employed:
in the Industry. Maximum continuity of emnploymnent is to be pro-
vided insofar as practicable.
ECONOMIC EFFECTS OF THIE CODE
As indicated by data furnished by the Industry, the production
and sale of concrete masonry units increased rapidly from 1921 t~o
1928, at which time there were about 5,000 plants in the business, rep-
resenting invested capital of one hundred million dollars, employring
50,000 plant workers and producing 387 million unit per yearl. Being
largely depen~enlt on. the erection of new buildings, and on industrial
and public wc~orks developments, this Industry experienced a serious
decline, following the year 1928. In 1932 the number of estabjlish-
ments hlad decreased 30%0, employees 84%0, capital invested 459, and
From all available. information, the average hourly wage inl 1929
was about fifty-five cents per hour, while in 1932 teaver~age wals
t~hirty-nine cents per hour, repr~esentingr a decrease in the average
hourly rates of about 30%7'. SInce the labor provisions of this code
establish a minimum rate of forty cents per hour in thle North and
thzirt cents per hour in the South, it is evTident that the average
hourly wagre will be mater~ially raised as soon as the code becomes
effect 1 e.
It is further evident that the provisions in the code with respect
to maximum hours and conditions of employment, conformaity to
fair trade practices, anld conditions of sale, will serve to stabilize
the Industry and reject benefits to the Industry and employees alike.
The Administrator finds that:
(a) The Codle as recommended complies in all respects with the
pertinent provisions of T'itle I of the Act, including, without limita-
tion, subsection (a) of Section 7 and subsection (b) of Section 10
thereof ; and thiat
(b) TIhe applicant group imposes no inlequitable restrictions on
admission to membership therein and is truly representative of the
Concrete Masonry Industry; anid that
(c) The Code as recommended is not designed to promote monop-
olies or to eliminate or oppress smabll enterprises and will nlot operate
to discriminate against them and will tend to effectuate the policy
of Title I of the National Industrial ]Recovery Act.
It is recommended, therefore, that this Code be approved.
HIUGRE S. JOHNSONT
CONCRETE IMA;SONRY INDUSTRY
ARTICLE I PURPOSES
To effectuate the policies of Title I of the National Indust~rrial
Recovery ~ALct, the following provisions are submitted as a C'ode of
Fair Competition for the Concrete Masonry Industry, and uIpon
approval by thne President shall be the standard of fair competition
for such industry and shall be binding upon every member th~ereof.
ARTICLE II -DEFINITIONS
SECT'ION 1_. Industry.--The term. "Industry as used her~ein in-
cludes the manufacture, and sale by those who manufacture, of
block, brick, or tile building unlits made of IPortland Cement C'on-
crete, primarily~ for structural use.
SEc. 2. ~Etmpiloyee.- Thhe term employee "' as used her~einl includes
anyone enlr~gaed in the industry3 in any capacity receiving comnpensa-
tion for his services, .irrespective of the, nature or methlod of his
SEc. 3. EmpTlro~Per.-The term "' emrploy~er as used- herein includes
anyT individual, partnership, association, cor~porantion, or other person
or enterprise by whom any such employee is comp-ensanted or
SEc. 4. Member of the Inzdustry.--The term mne~mber of thei in-
dustry as used herein includes any one engaged in the indunstry as
above defined, either as an1 employer or on his own behalf.
SEc. 5. President, Act anzd -A min/istrator.-The terms Pr~esi-
dent ", Act ", and Administrator as used herrein shall mnean
respectively thre President of the United Statesl the National Indus-
trial Recovery Act, anld the ~Administrator of Title I of said Act.
SECTION i. sOUT8 of Labor.--No employee shall be permittedl to
work more than 40 hours per week. Due to the seasolnal nat.ur~e of
thnis Industry an employee may be permitted to workl 48; hours per
week but not more than 8 hours per day for a period of not to exceed
1~5 weeks during any one calendar year.
SEC. 2. Exceptions.--The maxiimum hours prescribed in Sect~ion 1
of this Article shall not apply to the following:
(a) Managerial1 or administrative employees ear~ningr more than
$35.00 per week.
(b) Employees engaged in emergency work occasioned by break;-
downsnr in production machinery or in work requiring the protection
of life or property, provided no such employee shall be permitted to
COD)E OF FAsIRE COMPETITION
work in excess of forty-eig~ht (48) hours per week: av-erage~d over anty
fifteen (15) weeks' period.
(c) ~,Wachmen, provided no such empl~oyees shall be permitted
to wrk n eces ofsixty-four (64) hours in, anly one week;.
(d) Shipping clerks, provided no such employees shall be per-
mitted to work in excess of fifty-two (52) hours in any one week,
SEc. 3. Empiloyere.~1Employers who personally performs manual
work or are engaged in, mechanical operations shall be subject to
the same maximum hours provided in this section. as to employees.
SEc. 4., Dual Employment.--No employer shall eng~age any emp-
ployeee for any time, which when totaled with that already performed
wit another employer, or employers, exceeds the maximum per-
SEC. 5. Agreements.-othing herein shall be construed to pply
to employees whose hours .of labor, wages or wclorking conditons
are estlPablse for speGcic projects by competent g~overnmental
authority acting int accordance with law or with hours of work,
wages, or terms of employment which are established by labor agree-
ments or understandings no~w in force, where such~lours are less or
wages are more or both, than those set forth hereinabove.
SEC. 6. Day Of R68 .--RO employee shall be permitted to work
more than six ()days in, any seven (7) day period.
SEICTION 1. Ra 88 of pay.--(a) No factory or mechanical worker
or artisan shall be paid at less than the rate of forty (40) cents
per hour, except that in region number 4 as defined in Article ViI
of this Code, the minimum shall be thirty~ (30) cents per hour.
(b)L No accounting, clerical, offce, service, or sales employee, or
any other employee not included in subsection (a) or (c) of this
section shall be paid at less than the rate of $15 per week.
(e) No managerial or administrative employee shall be! paid at
less than the rate of $35.00 per week.
SEc. 2. Overtime, Piece W~orkl, etc.--(a) Ahny employee working
in excess of eight (8) hours in any twenty-four (24) hour period or
in excess of 40 hours in any 7-day period shall be paid not less than
one and one third (11/5) times his regular hourly~ rate, for all such
(b) This Article establishes a minimum rate of pay for the actual
time worked regardless of whether an employee is compensated on a
time-rate, piecework, or other basis.
(c) The amounts by which hourly wages in fthe higher paid
classes of employees exceeded hourly wages mn the lower paid classes
of employees on June 16, 1933, shall be maintained.
(d) All hourly wages shall be paid at least twriice a month and all
salaries at least once a month, in lawrful currency or byg negotiable
check therefore payable on dlemand.
ARTICLE V---LABOR PROVISIONS
SECTION 1. Clhild Labor.--No person under eighteen (18) years of
age shall be employed in the industry. In any State an employer
shall be d-eemed to have complied with this provision if he. shall have
on file a cer~tificate or permit duly issued by the authnority~ in such
State empow~rer~ed to issue employment or aget certificates or permits,
showing that the employee is of the required age.
SEC. 2. Statutory Pr~ocisions.c- (a) Employees shall have the right
to organize and bargain collectively through reprlesenftatives of their
ownl choosing, and shall be free from the interference, restraint, or
coercion of em~ployTers of labor, or their agepnts,~ in t~he designation of
such rep~re:senta~ti\-es or in .self-org~anization or in other concerted
activities for thne p~urpose of collective bargaining or other mutual aid
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any comnpnyS umon. or to ~efr~ain
from coming, orgamizmg, or assistmng a. labor organization of his
o~wn choosingr; and
(c) Employers shall comply with the maximum hours of Inbor
minimum rates of pay, and other conditions of employment approved
or prescribed by the President.
SEC. 3. State Lawsl.--Within each State no provision of this Code
shall supersede any law of such State which imposes more stringent
requirements on employers regu~latingr the age of employees, wages,
hours of wiork, or safety, health, sanitary, or generl~n working condi-
tions, or insurance, or fire protection than are imposed by this Code.
SEC. 4. R801888ificationE.-- Employer s shall not :reclassifyT employees
or duties of occupations performed by employees so as to defeat the
purposes of the AiCct or of this Code.
SEc. 5. Acl`ident Prevetion f~ii.--Each employer shatll provide for the
welfare and safety of his employees. He shall not be relieved from.
compelling with all national, state, and local ordinances and p~rovi-
sions of safety measures referring to safety and health measures and
the wcpelfare of employees insofar as the same may apply to his
special type of work and from protecting his employees by wiorkmlens'
SEa. 6. PDublicity.--E ach employer shall post in conspicuous pheces
at each job and at offices the provisions relating to Inb~or conditions,
minimum wages, and maximum hours under this CodeP.
SEC. 7. Continu~ity of Labor.--An employer, shall so administer
work in. his charge as to provide the maximum practicable continuity
of employment for his work force.
ARTICLE~ VI-A~DMnrINuI STRABTIO N
SECTION i. Rep/ONS~.--TO facilitate administration, the industry
shall be divided Into five regions, as follows:
(1) Maine, Verm~ont, New Hampshire, New York, Mlassachusetts,
Connecticut, Rhode Island.
(2) Pennsylvania, Mafr~yland, New Jerse~y, IDelaware, Distr~ict of
Colum~bia, West Virginia.
(3) Indiana, Michigan, Wisconsin, Kansas, Illinois, Miinnesota,
ICowPa, Ohio, MSissouri, ~North Dakota, S outh D~akota, Nebraska.
(4) Texas, Oklahoma, Arkansas, L~ouisianla, Kentucky, Tennessee,
BlbMiss~issipp, ir~ginia, North Carolina, South Carolina, Georgia,
(5) Arizona, California, Colorado, Idaho, Miontana, N~evada,
Wy'oming,? New Mexio, Oregon, Uftah, W~ashinlgton.
SEC. 2. Cod~e Aufhority.--The Code Au~thority3 as hereinafter
defined and constituted may divide each region into regional sub-
divisions hereinafter termed subregions to further facilitate the
administration of this Code.
SEc. ;3. AdmCl.iZisYtr'ationl.----F' u rther to facilitate arlln in istration, the
industry mlay be divided into sections ac~cor~ingr to ~prodluctive
capacity as follows:
(a) Plants with aL productive capacity of less than 250,000 units
(b) Plan~ts with a productive capacityS of more t~haln 250,000 units
annually but less than 500,000 units annually.
(c) Plants with a prodluc~tive capacity of more than .500i~,r000 units
Productive capacity is defined to be actual production of equivalent
of 8 xt 8 x; 16-inch units.
F~or the purposes of the first election of the Code Authority, as
hereinafter provided for, the dletermnining productive capacityr shall
be the productive capacity in the yrear 1929, and the mIembers of this
Code Authority so elected shall serve for the duration of the Act.
For the purrpose of subsequent annual elections, in thle event that t~he
duration of the Act is extended by Congress beyond its present
expiration date, the productive capacity shall be the productive
capacity for the year immedtiatelypeengteletn.Ia
plan wa no in pertio fortheful year of 1929, its determiningr
productive -capacity shnall be its first full year of operation.
SEC. C4. COde Bl'uthor~ity.--A Code Authority is her~eby desrignated
to cooperate with the Administrator as a planning and fair practice
agency for the indlustr~y. EachI trade association represenntinga
group (ais defined in.Se~ction 6 of thtis article) shall so modify its
constitution and by-law~s as to provide for t~he election of a Board
of Directors of eight members, one member to be selected from each
group, in accordance with the regional and productive capacity
schedules of Sect~ions 1 and 3 of thlis article, or by somae other fair
method of election approvedl by the Administr~ator.
The Code Authority shall be composed of eighlt members. These
members shall be designated by the respective boairds of directors
above mentioned from among the membership of such respective
boards. The proportion of representation by each trade association
on the Code Authority shall be based upon the relative production
of the membership of these associations.
In addition to said repreientatives of the industry, three or I'ess
members may be appointed t~o said Code Anthority by the Adminis-
trator, and shall serve for terms of six (6) months to one (1) yrear
as designated in the order of appointment.. The representatives so
appointed by the Administrator shall be without vote, shall serve
without expense to the industry, and shall be given notice of and may
sit at all meetings of the Code Authority. Simiilar notice shall also
be given to the Administrator.
SEC. 5. Regional and S~ubregio7nal Commz~ittecs.-Miembers of the
industry in each region may establish regional comrmit.tees by means
of somne; fair system of election, subject to the approval of th~e Code
Authority and the Admninistrator.
If the Code Auth~orit~y in pursuance of Section 2 of this Artic~le
shall divide any region into subregions, each such subregion may
establish a subregional committee by means of some fair system
of election, subject to the approval of the Code A~uthority and the
SEC. 6. rOu~P CoO177/ttees8.-WV~henever members of the industry
representing two thirds of the production of conlcrete masonry units
in hic te aggregate is composed chiefly of oemtra hl
petition the Code Authority to constitute the members of th~e indus-
try using such, aggregate a division of the industry (such division
being based upon common interests and common problems), the
Code Authority, subject to the approval of the Admninistrator, shall
designate such members a division of the industry and thereupon the
group so designated shall elect a Group Committee from its memlber-
ship b~y some flair method of election, subject to the approval of the
Code Authority and the Administrator.
SEC. 7. Dif~~z840%.--If, prior to the signing of this Code by the
President, members of the industry shall have submitted proof to the
Administrator that they represent two thirds of the production of
industry products in which the aggregate is composed chiefly of one
material, and shall petition the Administrator to constitute the mem-
bers of the industry using such aggregate a division of the industry,
the _Admilnistrator shall designate such members a division of thre
industry, with all of the functions of a group as outlined in this
Article. Under this section the Cinder Unit Group is hereby
constituted a division of the industry.
SEO. 8. Duti68 Of As88004GMOW8.--Each trade or industrial associa-
tion directly or indirectly participating in t~he selection or activities
of the Code ~Aixthority or of any regional or stibregional administra-
tive committee shall:
(1) Impose no equitable restriction. on membership, and (2)
submit to the Administrator true copies of its articles of association,
bylaws, regulations, and any amendments when made thereto, to-
gether with such other information as to membership, organization,
and activities, as the ~Administrator may deem necessary to effectuate
the purposes of the Act.
SEC. 9. Code Au-thority Representative.--In order that the Code
Authority shall at all times be truly representative of the industry
and in other respects comply with the provisions of the Act, the
Administrator may provide such hearings 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 comply withn the provi-
sions of the Act, may require an appropriate modification in the
method of selection of t~he Code Authority.
SEc. 10. Potoere and Duties of Code Authority an~d C~otmrrittees.--
In addition to the powers herein specifically conferred, thre Clode
Authority shall have the following powers anld duties to the extent
permitted by the Act, subject to the right of the Administrator on
reviewip to disapprove or modify any action taken by any agencies
pursuant to this Code.
(a) Duties of Code Aurthority.-The Code A~uthorityg shall be the
general planning, coordinating, and administeri(ng agncJ1 for the
industry. The Code A-uthority may prlese~nt to th~e Adnunistrator
recommendations balsed upon conditio~ns in the inldurstry as they may
develop from time to timec, which recomnmen dattc~ios wiP~ll tendt to e~ffec-
tuate the operation of t~i~s Code and the policies of thel Act. Such
recommendations, upon approval byT the Pres~ide~nt, shall become op-
erative as a part of this Code. The Codet Aulthocrity shall cooperate
with the Administrator in mak~ingr invsctigationrs as to the function-
ing and observance of an? provisions of this Code and shall report
the results of such invest 1ga:1tions to thne .Administrator. The Cod
Authority shall draft a safety and health ma~nual for the industry.
The Code Authority may use such trade associations and other agen-
cies as it deems proper for the carry)ingF out. of any of its activities
provided for herein and to pay such trade associations and agencies
the cost thereof, provided that nothing her~ein shall relieve the Code
Authority of its duties or responsibilities under this Code and that
such trade associations and agencies shall at all times be subject to
and. comply with the provisions hereof.
(b) Duties of Commlittees--(1) Re~tgiolal aind Subre1giona l Comz-
mittees. The duties of such committees shall be to administer the
provisions of thlis Code within thne regions or parts thereof. Pro-
vided, however, that their actions shall be subject to approval of thes
Code Authority and to review byv thet Administrator.
(2) Groupo Committees.--The duties of such committees shall be
to administer the provisions of this Code w~ithnin their respect~ive
groups irrespective of the regional or subrecgional committees. Pro-
vided, however, that their nation shall be subject. to the approval of
the Code Author~ity and to rev~iew~ b~y the Adicnist~ator..
(3) Where conflicts ar~isee betw-een dlecisions of group committees
andr regional or sublregrional committees such conflicts shall be settled
by the Code Authority, subject, to review by the Administrator.
SEC'. 11. TrotilNg-(8n) C'Od4 ;1uthor;f!/.-Ea~:ch member of the Code
Authority may vote in meeting assemblled or by letter ballot. If a
meeting is called notice shall be sent out not less than ten (10) days
before the date of meeting. A- majority of the; voting memnberss of
the Code Authority shall constitute a quor~um at any assembled
meeting. Each member of t~he Code Authority, exceptingr members
appointed by the Admninistra2tor, shall be entitled to one vote. A
majority of the votes cast shall constitute a sanictioniing vote.
(b) By Committees.--Rules goverlning the v.otingi by the Code
Authority shall govern the voting by: committees, except that five
(5) days' notice shall be adequate for a meeting of subregional
(c) By members of the Ilndustry.--On national questions voting by
members of the industry shall be by letter ballot. A sanctioning
vote shall be a majority of the votes cast.
(d) Wtithin Regions orl Gr'o-ulps.-Ai meeting of members of the
industry within a region or group may be called at t~he instance of
the Code Author~ity or at the instance of members of the industry
representing 25 percent of the plants, or at the instance of members
of the industry representing 25 percent of the production, within
the region or group respectively. Each member of the industry
within a region or group shall have onle vote and a sanctioning vote
shall be a majority of those voting. Such sanctioning vote shllnl
bind the regional committee of such region, or the group committee
of such group, except that the action, authorized or required by such
v-ote shall be subject to the approval of the Code Authority and the
Administrator; and except further, that any action taken on which
there is a disagrteement by members of the industry whetherr or not
they have participated in the voting), representing either 25 percent
of the number of producers, or 25 percent of the production within
such region or group shall be reviewed by thle Code ALuthrority.
(e) Within Su~bregions.--A meeting of members of the industry
within any subregion of any region maay be called by the Code
Aut~hority or by members of the industry representing either 25
percent of the producers, or 25 percent of the! production, w~ithin such
subregion. The regulations governing the voting by regions shall
apply to voting within a subregion1 of anly region, except that dis-
agreemnents shall be reviewed by the regional committee subject to
the right of any party to secure a further review by the Code
(f) NVotices of Meeting.--Whenev~er a meeting is called for a
region, group, or subregion, reasonable notice of said meeting shall
be given to all members of the industry within that region, _group,
or subregion at least seven days (7) prior to the date of such
SEc. 12. Arbitration.-Complaints between groups within the in-
dustry or controversies involvn laoosu giteetr
pariesousid o th idusryshalby and with the consent of both
parties concerned, be submitted to the Code Authority. Or at the
instance of anly such consenting party, such complaints may be
referred to anl arbitration board composed of equal representation of
each of the parties involved in thne complaint or controversy with a
neutral arbitrator selected by the appointed members of such
SEO. 13. Xtatistic8.--In order that the President may be informed
as to the extent of the observance of the provisions of this Act and
of the extent to which the declared policy of the Act is being eff~ec-
tuated in the industry as herein defined, the Code APuthority shall
makre such reports as the Adminlistrator mlayT require. Each mem-
ber of the industry shall make such sworn reports to the Code
AuthorityT as to wages, hours of labor, number of employees, pro-
duction, stocks on hand, sales, and sucEh other matters as the Code
Authority, subject to review by the Administrator, may require for
the administration of this Code.
In addition to the information required to be submitted to thle Codle
AButhority, there shall be furnished to governmental agencies such
statistical information as the Atdmainistrator may deem necessary
for thie purposes recited in Section 3 (a) of the Act.
SEC. 14. a88888ment.-M-emberser of the industry shall be entitled
to participate in and share the benefits of the activities of the Code
ALuthorityS and to participate in the selection of the members thereof
by assenting to and complying with the requirements of this Code
and sustaining their reasonable share of the expenses of its admin-
istration. The reasonable share of the expenses of administration
shall be determined by the Code Auth~ority, subject to review by the
Admninistrator, on the basis of volume of business and/or such other
factors as maty be deemed equitafble, to be takecn into conside~ratio-n.
Such reasonable share of the expense inlcidental to adlministering
this Code shall be paid to such person or agency as thne Code Author-
ity shall dlesigrnate.
SEc. 15 Liablity/.-Nrothing conltained in this Codelc shall consti-
tute the members of thre Code A-ut~horit~y partners for anyT purpose.
Nor shall any member of the Code Author~ity be liable in any manner
to anyone for anyr act of any other member, ofileer, agent,! or emn-
ployee of the Codie Aulthority. Nor shall any ntmember of the Code
Authority be liable to anyone for anyainormsinton ine
the ode exeptforhisownwilfulmisfenlsance or nonfeasance.
SEC.. 16. Hand~ing~ of Violatilons.--The Code Aut:hority shall have
the power to receive compalaints of violations of this code, makre
investigations thereof, provide hearings thereon and adjust such
complaints, and bring to the attention of the Administrantor for
prosecution recommendations and information relative to unadljusted
~AnuIcxa VII--TRuDIE PERA~CTICES
SECTION 1. 272fair MCArfcf8o.s--The fPollowilng practices constitute
unfair methods of competition for members of the in~dusitry anld are
(a) Setcret Rebate~s.-To makre a secret p~repay3ment of tra~nsp~orta-
tion charges or permit the payment or allowannce of secret rebantes,
refunds, credlits, or unearnedt discounts, whether in the form of
money or otherwise, or to give secret premiums for thle purpose of
influencing~ n sale, or secretly extendl to certain purchaserss special
services or p~rivilegies not extendedrr to all pu~c~hasers of indul~stry
products under like terms andl conditions.
(b) Interifi)erenc in Erts~ting C'onractor s (Breachl).-To willfully
interfere by any means or device w-hatsoevecr, in any exisjting con-
tract, or border between a seller andt a purchaser in or concerninrr the
production, mnanufacture,, transportation, pur~chase, or sale oif ny
industry product, or th~e performance of a7ny conte~netual cduty or
service connected therewsith, destroying or app~roplrinting in whole or
in part thle patronage, property, or busine s of anc.ther membertz l of
the indust ry.
(c) Defamzation of comlpettr.T define a compe~titor by
words or acts, falsely imiputing to himi dlishonorable conduct, inabil-
ity to performs conitrnctsi, or questionable credlit standing, or by the
false disparageenlet of thle gradle or quality of his prodnets.
(d) PriEce MVis~rcleprsenta ftion2.-To represent delibe~rately, either
directly or by inference, that a competitor is quotingi lower prices
than those actually quotedl by such co-mpetitor, w-ithout first estab-
lishing the accuracy of such rep~resenntation
(e) Conformnity wi~th S'pecificationls.-To sell or offer for sale any
product of the industry with intent to dleceive cus~tomers or
prospective customers as to t~he quality, quantity, size, grade, or
substance of such product. All products shall meet thle specifica-
tions of the American Concrete Institute or American Society for
Testing Miaterials for concrete masonry units.
(f) Delivery of GI~rdad Superior to that Ordered.--To sell an in-
ferior quality of industry product at a fair price, with, the under-
,standing that a superior quality selling at a hLigher price will be
(go) Shi1Cpping According to Bam7ples.-To ship or deliver any int-
dustry product which does not reasonably conform to the sitandcard
or specification of sample submitted as representative of the Ma-
terial to be shipped, or to representations made prior to secur~ingr an
order therefore, unless the consent of the purchaser to such sub~sti-
tution is obtained prior to shipment.
(h) Miszbranding.--To mark, brand, or advertise products of the
industry for the purpose or with the effect of misleading or dleceiv-
ing purchasers with respect to the quality, quantity, size, grade, or
substance of the materials purchased.
(i) P~ymle~nt of Commizssion.--To pay or promise to pay, to an
employee of a customer or prospective customer without the knowl-
edge of his principal, a commission or consideration of any character
for the purpose of inducing, or compensating for a sale.
(j) Commzercial Bribery.--To secretly or otherwise offer or give
commissions, prizes, premiums, gifts, excessive entertainment, or
other benefits as an act of commercial bribery to any person con-
nected directly or indirectly with the purchase, selection, or use of
industry~ products, as an inducement thereto.
(k) ConsIignmenri~t of Shipments.--To ship any industry product to
an agent on consignment, at an indeterminate price.
(1) Lump-Swm Biddr~ing.--To sell any industry product, except
on a unit price basis.
(mn) Contfingent Selling.--To enter into any contract for furnish-
ing any industry products contingent upon t~he sale or purchase of
any other thing, the performance of anly other service or any other
contingency not appearing in the contract or complying with this
SEc. 2. Selling Below Cost.--No member of the industry shall
sell any commodities at a price below his own individual cost. How-
ever, any member may meet the price competition of any other mnem-
ber of the industry provided that notice of this fact is immediately
sent to the Code Authority, and provided, further, that any~ such
sales below; cost may be con'tmiued only until notice is received from
the Code Authority that such sales are no longer necessary to meet
competition. Cost shall be determined in accordance with the prin-
ciples enumerated in a standard cost system which shall be form-
ulated by the Code Authority with the approval of the Admin-
SEC. 3. Published Prices.--Each member of the industry shall
publish. and distribute to the trade his price lists for sales to con-
sumers and/or middlemen for various types, kinds, and grades of
products of the Induxstry, which shall meclude credit terms, trade
and cash discounts, schedules of freight anrd cartage charges; copies
of which shall at the same time be submitted to the Code Authority.
The Code Authority shall immediately send copies thereof to
interested members of the industry. Any revision. of such price lists
or other such information w;Chich may be thereafter made, shall be
published to the trade and filed with the Code Authority to become
effective on the date specified, but such revised price lists shall be
filed at least five anys in advance of the effective date. Failure to
adhere to such published price lists, discounts, terms, or other con-
ditions of sale, shall constitute an unfair method of competition.
SEC. 4. C'O~flfGCt 8 anrl Miotations.-AX 1cl~l otations and contracts,
except petty sales to individuals or small sales for local consumption
not exceeding 100 units, for the sale of products of the industry, shall
be made or confrmed in w-riting and shall contain a definite state-
ment of price, quantity, terms of payments, time and place of de-
liveryr andi all other items necessary to formn n complete under-
SE:C. 5. C1C // PIaftedf6.--ID aD} PegiOn, group, or subregaion, the
regional, group, or subregional committee mayr, subject to the ap-
proval of Code Auth~ority, andl with the approval of the Adminis-
trator, establish credit practices uniformi withlin its respective region,
group, or subregion, which shall be binding upon the members of the
industry selling in that region, group, or subr~egion.
ARTICLE Y111 --310DIFICATIONS
SECT'IO1N 1. Canlcel~latiin .--This Codle and all th~e provisions
thereof are expressly mande subject to the right of the President, in
accordalnce with the provisio~ns of subsection (b) of Sfection 10 of
the Act, from time to timle to enncel or mnodify any order, approval,
license, rule, or regulatioons issued under Title I of said Act and
specifically, but without limnitation, to the right of the President to
cancel or modlify his appr~oval of this Codle or any conditions imposed
by him ulpon his approval thereof.
SEC. 2. A~rnen)dmen)its.-Thlis Codle, except as to provisions required
by the Act, miay be modified on the basis of experience or changes
in circumlstalnces,, iluch modlitiention to beP based~ up1on appllication to
the Admrinistrautor andi suchl notice andl hearing as he shall specify,
and to become effective on approvall of the President.
ARTICLE IS -MONOPOLIES
NLo provision o~f this Cod~e shall be so applied as to permiit mionop-
olies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterpriises.
AnnICLE S--FRICE INCREASES
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 recogruzed that price in-
creases except such as may-be required to meet individual cost should
be delayed. But such increases should, so far as possible, be limited
to actual additional increases in the seller's costs.
ARTICLE XI~Z-ErnoonVIE DATE
This Code shall become effective on the second Mfonday after its
approval by the President.
Approved Code No. 133.
RegistryV No. 1011-1--02.
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