NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON NOVEMBER 27, 1933
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
App~rewe Code No. 128
Registry No. 1010--1-02
1. Executive Order
2. Letter of Transmittal
GOVERNMENT PRINTING OFFICE
WASHIINGTON s 1988
This publication is for sale by~ the Superintendent of Documents. Government
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Approved Code No. 128
CODE OF FAIR COMPETITION
As Approved on November 27, 1933
An application having been duly made, pursuant to arid 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
Fair Comnpetition for the Cement Industry, and hearings having
been held thereon and the Administrator having rendered hlis report
containing an analysis of the saidl code of fair competition together
withl his recomnmendantions and findings with respect ther~eto, and thie
Administrator having found that thie said code of fair competition
complies in all respects with the pertinent provisions of title I of
said act andi that the requirements of clauses (1) and (2) of subsec-
tion (a) of section 3 of the said act have been met:
NOWV, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant. to thle authority vezstedl in me by title I of
the National Industrial Recoveryv Act, approved June 16, 19373, and
othe rw~ise, do a pp ro ve th e repl:ort a nd r~ecomm nenda tions and adopt the
findings of the Admninistrat~or and- dlo order that t~he said code of fair
competition be and it, is her~eby approved.
FRANKLIN D. ROOSEVELT.,
Alpprova\l recommended :
HUGH~ S. JOHNSONK,
THIE \rHITE HOjUSE.
NOV'EMBER 3, 1933.
The Wh~i~te H2ouse.
SmR: A proposed Code of Fair Competition for the Cemenlt Indus-
try was submitted to the Administratorl on July 19, 1933, by the
Cement Institute. The hearing was conducted in Washington on
September 15, 1933. The Code was revised during the recess of the
hearing and is submitted in its present form for approval. Every
person who requested an appearance was properly heard in accord-
ance with statutory and regulatory requirements.
Provisions of Code as to Wrages anld Hlou~rj.-Hours of employ ment
are permitted to be flexible over any half calendar year, but are not
permllittedd to be in excess of an average of more than thirty-six (36)
hours per week during this period, nor more than eight (8) hours
in anyr one day. The maximum hours of wor~k are limiited to forty-
t~wo (42) hours per week for employees other than clerical and office
employees who are limited t.o forty~ (40) hours per week. Em-
ployees engaged in the work of packingg and shipping are limited to
ten (10) hours in any one day and thir~ty-six (36) hours per week
averaged over any half calendar year.
The following are exempted from the preceding provisions:
(a) Emnployees engaged in executive, administrative, technical and
sales staff wrork, anzd employees in supervisory capacities.
(b) Employees engaged in emergency workl involving breakdowns
or protection of life or property.
No evasion of this Code by reclassification of workers is permitted.
Minimum wages are established in twelve greogrraphical districts
as defined by the Bureau of Mlines. In two Southerin districts a mini-
mum hourly rate of thirty (30) cents per hour is established. In a
portion of t~wo districts a minimum of thirty-seven (37) cents, and in
a portion of one district a mininuln of thir~ty-eigrht (38) cents. In
all other dlistricts a minimum of forty (40) cents is established.
Tlhe above minimum rates are excep~ted only~ w-hen thle rante for
the same! class of wcork on July 15, 1929, was less than forty) (40)
cents per hour, in which case the hourlyl rate shall be not lessi than
the hourly rate on July 15, 19989, aind in no event less than thirty
(3)cents per hour.
Nommor under the age of sixteen (16) years shall be employed
and no minor under the age of eighteen (18) years shall be employed
in any hazardous occupation.
EcoN-onzIo EFFECT OF THE CODE
Comparison of the production of Portland Clement in the years
1928 and 1932, shows a decline of 549~c. Comparison of number of
persons employed by the Industry shows a dleclrease from 34,24-1
employees in 1928, to 11,941 in Feb~ruary 1933, or a decline mn
employment of 68.870. It is estimated that bansedl on employment
in 1932, the adoption of the average thirty-six (36) hour week as
proposed in the Code will cause absorption by the Industry of
5,618 additional workers and a payroll increase of approximately
4 0 9o.
The approval of this Code is expected to:
(1) Stabilize the Industry and prevent economic disturbance due
to price wars.
(2) Protect dealers and the consumer against undue monopolistic
tendencies of the Industry.
(3) Preclude the possibility of uncontrolled abuses due to the
multiple basing system.
The Administ~rator finds that--
(a) The Code as recommiendled complies in all respects with the
pertinent provisions of Title I of the Act, including, without limita-
tion, subsection (a) of Section 7 and subsection (b) of Section 10
thereof ; and that
(b) The applicant group imposes no inequitable restrictions on
admission to membership therein and is truly representative of the
Cement Industry; and that
(c) The Code as recommended is not designed to promote. monop-
olies or to eliminate or oppress small enterprises and will not operate
to discriminate against them, and will t.end to effectuate the policy,
of Title I of the National Industrial Recovery Act.
It is recommended, therefore, that this Code be approved.
Res pect fulIly,
Henc S. JoHNwon,
COD)E OF FAIR CORIPETITION
ARTICLE I -PURPOSEl
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are submitted as a Code of
~Fair Competition for the Portland Cement Industry, and upon ap-
proval~ byr the President shall be the standard of fair competition for
such industry, and shall be binding upon every member thereof.
ARTICLE II -DTEFINITIONS
1. The term Portland Clement Industry as used herein includes
the ma~nufacture and sale by manufacturers of Porthind Cement.
2. The term "' employee as used herein includes anyone engaged
in the Portland Cement Industry, in any capacity, receiving com-
pensation for his services. irr~espective of the nature or method of
payment of such comp~lensation.
3. The term employerr includes any enterprise by whom any
such employee is compensatedd or emp~loyed.
4. The term "mrember of th~e industry as used herein includes any
enterprise? engaged~ in thle industry as above defined.
5. T'he term district as used herein means the geographical
producing district as now or hereafter de~signated by the United
~States Bureau of M~ines orl other Governmlental Agrency, or as may
hereafter be determined by the Code Authority.
6. The termn "productive enpacity as usedl herein shall mean the
productive capacity of the industry as determined by the United
States Bureau of MIines.
7. The term Institute as used herein shall mleann The Cement
8. Tlhe term Board as used herein shall m~ean the Board of
Trustees of The Cement Institute.
9. The term "' plant as used h~erein shall mean a Portland Cement
10. The terms "President." and "Act" and "Administrator"l as
used herein, shiall mean respectively the President of the United
States, thie National Industrial Recovery Act, anrdr the Admiinistrator
of said Act.
A. General.-1l. Pursuant to subsection (a) of Section 7 of the
AQct, and so long as this Code shall be in effect:
(a) Employees shall have the right to organize and bargain col-
lectively through representatives of their own choosing, and shall be
free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or
in self-organization or in other concerted activities for thle purpose
of collective bargaining or other mutual aid or protection;
(b) No employee an~d no one seeking employment shall be required
as a condition of employment to join any company union or to refrain
from joining, organizing, or assisting a labor organization of his own
(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.
2. No person under 16 years of age shall be employed, and no
person under 18 years of age shall be employed in any hazardous
occupation, in the industry.
3. Within each State, no provisions of this Code shall supersede
any laws of such State imposing more stringent requirements, r~egu-
lating the age of employees, wages, hours of work, or health, fire, or
general working conditions, than are imposed under this Code.
4. Employers shall not reclassify employees or duties or occupa-
tions performed by employees to defeat t~he purposes of the Ajct.
B. Hour~s.-1l. Except as hereinafter otherwise provided, on and
after effective date no employee shall work or be: pIermnitted to wrork~
in excess of forty-two (412) hours in any one week or eight (8) hours
in any one dayl; nor more than thirty-six (36) hours per week aver-
aged over any half calender year, excepting, however (a) employees
engaged in emergency maintenance and repair work involving break-
downs or protection of life and property, and (b) employees in pack-
ing and shipping departments, who shall not, however, work more
than ten (10) hours in any one day or thirtyv-six (36) hours per
week averaged over any half calendar year. If any employee on an
hourly1 rate: works in excess of 36 hours per week averaged over any
half calendanr year t~he wages p~aidl for such excess shall be at thre rate
of not less than one and one third (11/S) times the regular hourly
2. No clerical or office employee shall work or be permitted to
work in excess of forty (40) hours in any one week.
3. The. maximum hours specified in the foregoing sections of this
Article shall not apply to executive, administrative, supernisory, or
technical employees who are paid thirtyr-fve ($35) dollars or mor~e
per week, nor to sales staff employees. -
4. No employee shall be permitted to work for a total number
of hours in excess of the maximum hours specified in the foregoing
sections of this Article~ whether employed by one or more. employers.
C. T~'ages.-1l. Except as hereinafter otherwise provided, no ernL-
ployee shall be paid at less than the hourly rates specified for each
of the twelve geogr~aphlical districts as set forth in exhibit "A"~' of
this Code, as follows:
Distrlet Number: Wage per Hlour
3.. .. ---- ---__ __ __--_---_ 40#
5 Except (a)_______ ____---------------- 404
(a) Jefferson andi l~ede Counties, Ky----- --- --- -- ___ 38C
7 Except (a) and (0) .. .... --- .... -----_-_-_ 400O
(a) St. Louis Co., Minn ------------------ --------... 3'T#
(b) Ralls County, M~o____---- _---___ ______- ... 37C
10.. .... ----- --------------------- -- .. 04
2. WThen the houlrly rate for the same class of work on July 15,
1929, was less thani 40 cents per hour, employers shall not pay less
than the hourly rate on said date and in no event less than 30 cents
3. Untrained Inbor for a period not exceeding three (3) months
and mplyee wh byreason of old age or physical infirmities are
nlot capable of normal rdcieefr hl epi o est
80 percent of the minimum wage rates, but the total number thereof
at any one plant shall not exceed 5 percent of the total number of
employees engaged by any em ployer in any one plant. at any one time.
4. The foregoing provisions of this section established a minimum
rate of pay regardless of whether an employee is compensated on a
time rate, piece rate, or other basis. The rates of pay hereinbefore
provided shall not be understood to be the maximum rates of pay
for t~he respective districts.
5. The amounts by which wages in the higher paid classes of em-
ployees have exceeded wages in the lower paidl classes of employees,
shall be maintained, having in view long-standing wage differentials.
6. Female employees shall not be employed after 6: 00 p.m.
7. Each employer shall post at a conspicuous place at each plant
the minimx~un wages and maximum hours under this Code.
ARTICLE IV-A ADMINISTRATION
To effectuate further thp policy of the Act a Code Authority is
hereby constituted to cooperate with the Administrator in the admin-
istration of this Code.
A. Organization, aind Constitultion of the~ Code Au~thority~.--The
Code Authority shall consist of seven individuals, or such other
larger number as may be approved from time to time by the Admin-
istrator, to be selectedl as hereinafter set forth. Thle President, in his
discretion, may appoint not more than three additional members
without vote to represent t~he Administrator.
1. The Board shall elect the Code Authority. The persons so
elected shall, subject to changes at anly time by the Board, serve on
such Code A~uthority for such term as the Board shaoll determine.
The Board shall be mnade up as -follows:
(a) One member to be chosen from each district.
(b) Trustees at Large, not to exceed seven ("7) in number, shall be.
chosen by those members of the Boarrd who re~r~esent the cement
(c) The President, the V'ice P1residernts and thle Treasurer of the
Institute shiall be ex-officio memb9r~s of the Board w~ith-full power to
The members of the Board~ to represent the cement districts shall
be elected byv the memrlbers of' th~e industry~ woho participate in the
activities of thp Code!~ Autholcr~ity, as provid.ed in Section B, sub-
section 8 below, in thle repctiv~l; e dlistr~icts by a. major~ity vote of
SuIch membejrr in eac-h Sulch distr~iCt to) serve for the term. of one year
and until their` slc~ce~ssors arre elecited anrd have quallifiedl and thie
members of th~e Boarld. so telected~, shall elect the Trustees at Large;
provided, howeverl, thlat a7ny members~ of the Board elected to repr'e-
sent. any cement district may! be reenlled. by a majority vote of the
mlemberse of th~e indusr~try~ in any suIchI C'~lcment district inl the event of
the change~ in statu:- o-f sulch Tr~ustee or if, for any otherl reason, any
sulch Trus~tee is nolt rconsidetr~ed to be I~lreprese~nntativ of the mrmber~s
of the indusritry~ in uch~l dlistrict and~, in the eve~nt of such recall, such
members~ ;hall elect, byv a majority vote, a Trustee.to fill the unex-
p~ired termi of the Trustee w~ho has~ been reenilled; a majority of the
mnembers; of thle BEoardl shall have like power with respect to any
Trustee at. La rge.
In thec event of a vacancy inl the Boa0rd, suc-h vacancy shall be
filledl for thep unexpired termn of thet Trustee- whose vacancy is to be
filled inl thet samelt manner as sulch~ Tru~stee was elected a member of thle
Inl the ev-ent of the inability of anly Trustee elected to represent a
cemenrt dlistrict, or of any Trustee at Large to attend anyT meeting
of thle Boardn~c orI of the Institute or of any co-mmittee or committees
thereof, thie miemb~ers of the industry in such district, with respect
to Trustees; replresentingr cement dicstricts and the other Trustees at
Largfe, writ~ r~espect. to anyr such~ Tr~ustee at Largec, shall hav~e the
righI~t, froml timne to time as the occasion m'a3'~y rqire, to elect an
Alter~nate Trustee to attend anyS such meeting or meetings who shall
havc Sulchl nuthlority t~o represent thle members of such district or to
act as; Trusctee at Large as miay be prescribed: by suich members or
by such others Tr~ustees at L~arge. Within the limits of thle authority
colferredtl upon him, as hereicn pr~ovidet, any such Alter~nate Trustee
shall have- the r~ight to vorte andl to act in all respects in the place
of thle membl~ier of the Board whose place he f~ills.
r2. 'The Institute or its successor~s or any trades or industrial asso-
c~iationl parrticipa~ting in the selection or activities of thea Code
Authority, shlal! :
(1:) Impiiose no inequitable restrictions on membership;
(2) Sulbmit to the Ad~ministr~ator true copies of its Articles of
Association, B~y-Laws, Regullati~ns, and any amlendmnents when
made thereto, together writh any other information relating to mem-
bership, organization, and anctivities as the Adfministrator may deem
necessary4 to effectuate the purposes of the Act.
3. In order that the Cod~e Auth~ority shall at all times be truly
representative of the industry, and in other respelcts comply with
the provisions of the Arct, the Administrator shall provide such
hearings as he mzay deem proper; thereafter if he shall find that the
Code Author~ity is not truly representative, or does not in other
respects comply wvith thle provisions of the Act, he may require an
appropriate modification mr the method of selection of the Code
A uth ori ty.
B. Powecre and Duoties of tlhe Code Authority.-ITn addition to the
powers anld duties herein specifically conferred upon the Code Au-
thortyit shall have the followringa duties and powFers to the extent
permitted by the Act and subject to the right of the Administrator
byreview to disapprove or modify any action taken by the Code
Authority pursuant to this Code.
1. The Codc ~Authority shall be the general planning, coordinating,
and adminiristering agency of this Code. It may make such rules and
regulations as mays be necessary for the conduct of its business in the
ad m i nistr~a ti on of this Code.
2. T'he Code Authority may designate the Institute or such other
committees or agents, and may delegate to them such of its powers
as it mIay deemn necessary for the administration of this Code; pro-
vided, however, that the Code Authority shall not be relieved of final
respons""'ibility with respect to any such delegated powers.
3. The Code Auithority shall, upon complaint of interested parties,
upon, request of the Admninistrartor, or upon its own initiative, make
such inquiry and investigation as to the operation and ob~servanc~e of
this Code as mlay be unnecessary 3 and report t.he results thereof to t.he
Administrator for such action by himt as may bJe inl accordance with
4. No mnembepr of the Code Aiuthiority or of any commiittee desigi-
nnorte by it shall participate as suchl membrcl in a IpnProcedngr in which
he is interes~ted,- either as compl.lainantl or as respondent, or in which
he is in any other miannier directly interested and in the event of any
such disqual i fient1~ion, the remain ing members of such Code: Authority
or coc-mm it tee shall certify such d isqual i ficat~ion, together with the rea-
sonls therefore, to thne President of the Institute, whlo shall promptly
desig!nate a p~eirsn to sit as a special member of such Code Authority
or cc.ommtittee for the purposeE~ of any such proceedings; provided
however, that any such special mlember so appointed shall be selected
from the same group of the indurstry as is represented by the member
whom. he rF'p~nc~es.
5. In order that the Pre~idient may b~e informled of the extent of
the cobserv\ance~ of the provisions of this Code: and of the extent to
which thie declared policies of t~he National Industrial Recovery Act
are being ceffrectuated in the industry, the Codc Aulthorityr and mem-
bers of the industry shall make such reports as t~he Administrator
may require periodically or as often as he may d~irect. Each member
of the indus~try\ shall mnak~e surch sworn1 or ulnSworn reports to the
Code Authorityr or to such age~ncy as it may2 dersignate as to wages,
hourrs of labor, number of employees, anld such othlelr mtte~rs as t~he
Codle A~uthority miay req~cuire for thle admlinistr~ation of this Code;
prlov-idetd, howrsever, that anyu\ informan~tio~n fur~nishedc h-ereulnder of a
conifidecntial Inatriie as bretwn-een1 clnmpetitorls inl the indlustry shall not
be available to comptetitc ors. nor p~ubli hed~t in sulch formr as shall retveal
the idlentity of anly lii'mber~l of theC induslltry fur'nishlin~ su1ch repor~ts.
In addition to the information required to be submiitted to the
Code Authority, there shall be furnished to governmental agencies,
such statistical information as the Admlinistrtrator may deem necessary
for the purposes recited in Section 3(a) of the Act.
6. Any interested party shall have the right to complain to the
Code Authority under such rules and regulations as it mnay prescribe
in respect of any rule, regulation, order or finding made or course
of action pursued by the Code Auth~ority, and any interested party
shall have the right to appeal to the Admiiinistr~ator under such rules
and regulations as he may prescribe in respect to any decision, rule,
regulation or course of action of the C~ode Authori'ty, pursuant, to
any provision of this Code.
~7 The Cod Authority,... and-/'or t~he Bioard may, from time to time,
make such recommendations to the Presidlent as it may deemn advis-
able or necessary to, effectuate thle policy of the Act and to develop
and maintain conditions of fair competition in the Industry; and
any modification or additions~ to this C~ode recommended by the
Codee Authority and.-'or the Boardl shall, upon approval by the Presi-
dent, become part, of and~ shall have th~e samie force and effect as
other provisions of this Code.
.8. Any member of the Industry shall be entitled to participate in
andl share the benefits of the activities of the Code Auth~ority, and
to pa~rticipaRte in the selection of the! member~ t~hreo~f by assentingr
to and complying withi the requirements of this Code and by either
playing' his r~easonablr share of th~e expenses of its admiinistration
oir by becomiing a memnber of the Institute. The reasonable share of
expenses s of administration shall be dletermiined by the Code Author-
ity ubjct o rvie bythe Adtministrator on the basis of volume
of sbusies and oreue suc other factors as may be deemed equitable
to be taken into consideration.
ARTICLE VT-SAFETY TWORK
As an evidence of the general attitude of the industry toward its
emplloyees, the industry points with pride to its achievilement in, the
fieldl of safety\. For many years the industry has. occupied the
premier position in safety accomplishments. It has been regrar~ded
as an exemplar in safety technic; it received the Joseph A. Holmnes
awards, fr, the years 1930 and ,,1 9~2, which is mnore notable beenus~e
during those declining and depression years, great difficulties wcere
experienced in maintaining normal safety mora~le in prlant or~rgnmza-
tions. Such results, in the opinion of t.he industry, can be attained
only by the cooperative effort, of constructive ma7nagliemen and satis-
fled, intelligent employees. The safety movement in the industrial
conducted by, and for many years has been one of the construteive
activities of, the Portland Cemlent Association, an organization of
the industry which is devoted to research, edluention a~nd improve-
ment and extension of the use of concrete. So far as practticable,
the safety movement will be continued.
AnncusE VI PLAN Fon SHARINGC AVAILABLE BUSINESS
1. Th~e Board is hereb-, authorized to formulate a plan or plans,
within thirty (30) days after the effective late of this Code, uness
such time shall be extended by the Administrator, for the equitable
allocation of available business among all members of the industry or
amon members of t~he industry operating in one or more Districts,
and for the control of cement inventory and to submit the same either
to a meeting of all members of t~he industry or to meetings of memb-
berss in the Districts affected, as the Board may determine, for ap-
proval, modification or rejection. Each member of the indu~str~y
shall be entitled to receive notice of any suc~h plan and to participate
in any meeting or meetings of all members of the industry or of
members in the District in which such member operates and, Iurther,
shall have the right to appear before the Boardt at any meeting at
which any such plan is being considered for the purpose of present-
ing any facts or arguments relative thereto.
W~hen any such pl an shall have been formulated by the Boardt, thle
Code Authority shall present the same to the Adlministr~ator for con-
sideration and th Codie Authority shall represent the industry and
t~he Board in conference with the Administrator wit~h respect to any
such plan; provided, however, that as Iregardls any such plan the
Code Authority shall have only such power to bind the industry or
any subdivision thereof as shall have been conferred upon it by mai-
jority' vote of the industry or of any sulbdlivision thlereof, andl each .
member shall have the right to present his objections, if any~, to the
Administrator. TPhe Code Authority shall collect anid present to the
Adm~inistr~ator such data and statistics as may be I~reuir~ed in c~onnec-
tion with any such plan together with a state-ment of th~e namies of
those members of the industry that approve an~d of those thant dis-
approve such plan in whole or in part.
2. Any such plan shall be based on the following principles:
(a) It shall be fair and its benefits shall be e~quitably app~ortionedd
to all plants.
(b) It shall give due consideration to all pertinent fuetors includ-
ing demonstrated productive capacity based on thle clinke undl.'or
cement production performance of non-obsolete plants and equip-
(c) It shall in no way reduce the total prouctl~lion of all plants
below what is necessary amply to supply dlemand.
(d) I~t shall not promote monopoly or monopolistic practices or
oppress small enterprises.
ALRT ICE 71-INCHEASiE IN PRODUCTIVE CAPACITY
Prior to the construction or operation of a new plant, or the in-
crease in the productive capacity of an existing one., or the move-
ment of all or part of such a plant from one plne~e to another, The
Cement Institute, on receipt of such information, shall promptly
collect complete information concerning existing prlodluc~tive caac~ity
in the area in which the proposed new plant is to b~e Ilocated, together
with data concerning consumption of cement in that alrea. If these
data disclose that such new plant will result inl furlth~er increasing
the problems!~ of over-production or over-e~npnecity inl such arean, The
Cement Ins~titute mayr petition the Presidenrt to pr~oh~ibit, the co~n-
struction, or o~pP1rtion, of the proposed,~c: new- plant, or the incrIease
in manulfacturing, ca~pacities of such existing plants. The p~rovisions
hereof shall not be construed to prevent the modernization of existing
pllants to imp~rove quanlityl of piroduc~lt and- or operating efficiency.
The Boa rd may stull y the pr~obleml l o-f permann-enit excess of prod~uc-
tive capacity in any area andi~ ma firomi time to time prepare and
submit to thle Aminnistratortl forr consjiderattion plans for the closing
down or amor~tization of thet less 'c.nomlicarl planllts.
ARTICLE Y111I-CO.5T PRUT'IECT'ION
1. It shall b~e an unfair methodr of compe~ttition for any member of
thle indlustry to sell or ofler to se~ll cetme~nt at less thanlr his expenses of
mannufacture, pr1ovided, hlowever, that, any member of tlhe indlustr~y
may sell olr offer to Sell cemecnt, at, below. his own expenses to mleet t~he
competition of' any other miemnbe of the indlustry whose price is not
less thann the expensesi of manufalc.turingr of such other member..
Alannufactul~ring expenses as us;edl hereinl, shall include all direct
labor and ma~:teriazl which do not grleatlyl vary pe~r unit ojf p~roduc-
tion withl volume of output), at cost or' market whichever is lower,
plus a proport1ionate share of all indirecrt expenses, inclusive of maxi-
muml dcpr~ec~iation and or dlepletion anllowanlces comnputed according
to F~ederl~ Incomle Tax proc~edurle, bult. exclusive of any capital
r~eserves, for pm-ploses other than d~epreciation and/or depletion, and
exclusive of interest paid andi development expecnses. Provided, thant
the dlistriblt~ion of such indirect expenses per unit of product pro-
ducedl shiall be on1 the basis of an average rate of utilization of plantf
facilities by etficient producers.
UTnless and or until somie other formula is submitted to, and
app~roved b~y the Admlinistrator, thle average rate of utilization of
plant facilities shanll be decterminedl as follows, to wit:
Each~ membellr of the indlustry\ sh-all send to an impartial agency
appointed by The Institute., a consolidated income-tax return for
that p.or~tion (or all1) of his operations, devoted to the manufacture
of Portland(. Cement for each of the years 1927-1932, or suchl other
per~iodl as. upon presentation of official data, may be determnined to
be fcir and~ as will better effectuate the purposes heireof and be ap-
Irlprove by the Adlministrator, togetthier with a record~ of physical
p~roduction,7 productive capacity, and sales in each of these years.
Froml these Irepor~ts will be calculated- the average rate of utiliza-
tio~n of piro:uctive capacity~ by the one: t~hirdi (1/3) portion of thle
i n dlu try w~hich~ reported the lowest. a~erage. per unit coist. of
production for such period.
This prc~entage of prodluctive! capaity (rather than full capacity)
shall become standard for the distrib~ution of indirect expenses anrd
fixed charges for the purpose of determniningr the per unit manufac-
turingr expenses, by every member of the industry.
2. In case of any complaint that a member of the industry has
violated t.he above provisions of this Code, the Code Authority shall
givre to such member of the industry not more thain seven (7) days,
or such other r~easonable time as may be fixed by the Code Authority,
in which to present evidence of its compliance wvith the foregomng
provisions. If thle Code ALuthority is not satisfied by the proof fur-
nished by such member, the matter shall be promptly referred to the
Administrator who shall immediately select a certified public ac-
countant to examine the cost accountinga of the member of the in-
dustry complained against. and notify such member of the selection
made and request the consent, of such member to the examination of
its cost accounting by the certified public accountant so selected. If
such member shall not, within two (2) days after receipt of notice
from the Atdministrator, as above provided, furnish to the Adminis-
trator written consent to such exarmmation or shall not thereafter
miake available to such certified public accountant all books and ree-
ords necessary to complete the examination of the cost accounting of
such member of the industry, then, and in either event, t~he Adminis-
trator shall fborthwith ref~er the matter to the Federal Trade Commlis-
sion7 which. shall audit the cost accounting of such member of the
industry and report to the Adlministrantor, who may transmit a copy
of such report to the Code Authority and to the member of the in-
dulstr~y comp~lained against, with the least practicable delay. In the
event that the member of the industry complained against shall con-
senlt to the examination of its cost" accounting by the certified public
accountant selected by th-e Administrator after such accountant shall
complete his report, such necountant shall report his findings to the
Adlmlnistr~ator and transmit a copy thereof to the Code Authority
and to the member of the industry complained against. If, in the
opinion of thle Administrator, the report of such necountant shall
sustain the conltention of the Code Authority but is not acceptable
to the member of the industry complained against, thenl the matter
shall be r~efe rrled by the Ad~m in ist rat or to the ]Feder~al Trade Commnis-
sion, as above provided. The decision of the Administrator on the
report of the necou;ntant selected by him, or on the report of t~he
Federal Trade Commission shall be final regarding the costs of the
member of the industry complained against.
3. Unziform Cost Accounting.--The Code Authority shall prepare
and adopt for generl~o use thr~oughout. the industry, and submit to
the Adlminictrator for approval within thirty (30) days of the effee-
tive date hnereof, a, standa~lrd method or system of uniform cost
accounting wIhich shall specify all items and include all elements of
manufacturers cost. When so p~repared, adopted, anrd approved,
all members of the industry shall apply the principles and include all
the elements thereof in determI~7inin their respective costs.
ARTICLE IX---OPEN PRICE--11AIRKET SmaruTLz$ rroN
1. Each member of th~e industry shall file its prices and all terms
and co~nditions of sale wsith thie Code Authority within five (5) days
after the effective date of this Code and make same pulbic, by broadc-
cast quoctartiolns to the trade, so that competitors, the trade, aind the
buying pub~lill may at all tunles have accura~te information relative
there~tto, and no member of the industry shall dev\inte therefromn
eceplt~lt in, the mannlIErI here'tina~fter' provided.
2. Any member~l1 of the indulstry~ may froum time to time change or
revise its prlicetS by filing notice thereo~cf with the Code Authority;
and no membellr-r of the inltustry shall anticipated, by quo~tatiorn, sale,
Ccontra;C~t, or otherwise, any changlle or r~eisionl unltil after thej same
shall have been on, file at least five (5i) days at thne offce of the Cod~e
Authorityv. At the expiration of such five (5) dlay period the said
changes or revisions mnay, unless thle eiff'ec~tive date thereof shall be
extendled, be made effectiv-e, and therIeupo~n shll be mladeu public in
the marnner pr~ovided~ in Section 1 here~of.
3. Any member of thre irulust~\. ry my meett the p~rices, termns.. ndc
conditions of sale, establishedc i by \hle abjnvec method, as of their effee-
ti\-e date, andl no iemnber of thle indusitr~y Ihll dev~iate froml thle
prices, ter~ms, andi condlitiolns of sa~lc. (o estab~ili-he., except in the
ma~nnerI above statedl, annd all nonnhers-i mee~ting~ such'1 ch~ngess shall
be retronetive on all shipment ~ nts mae within ~five (5) enlendar days
before the effc~ctive dante thereovf.
(2) Advances shall be madnre eT~Aectiv'e five (5) enlendarlnl days after
expirationl of th~c notice p-er~iod and1: the trade~i shall be give~n such
(b) During the five (.5) day1!s pr1ior to thne eAfective date of aIn
a.dynnee, current market ordrstI may! be booked at- the prior price for
sh~ipment, not. more thanlr 15 days fromll tle dlate the advance becomes
(c)l Each specific w-orkl qulotationr shall contain a pr1ovision pe'r-
mittirw w'ithdicrawal on five days' notice.
(d) Aifter an advannce in price all outstanding quoltations on work
for which~ bid~s hanve beeni opened, w~hich quoctation!ls extend longer
than fifteen days fromn the effecctiveu (jte of the new prire, shall be
w~ithdirann- or rev~\ised to expir~e on suIchI fifteenth~ day.
(e) All qurot~t~ionls at thle pr!io~r~ pricel madeli during the five-day
notice periodc 1hall bejc confined to jobs on whlich bids are to be opened1c-
prior' to tenr days!' fromi the~ effrc~tiv'e llte of the new price. SuLch1
qu~otatioll lns may b closed byl con~ltract. not~ Ilt~er than fiftCeen day1?s frontll
the fcr'ctive dalte o~f thle ne p~riice~.
(f) A~1rlulqutations o~utstanrding on jobs,- orn which bids are to be
openedl later. thann ten day!s fromii thle ellecctivre date of the new price
shanll be withdirawn, andl any quotation s made on such jobs dluring
thle fivet-day-noti:ce periodl shall be at thle new price.
5. If thle C'ode Author~lit' hlas r'easonablle enuse to belie\-e, andc th-e
mnember filing samie shlnl have beeni o notifjied, that any price filedl at
its of~iee, as above provided, r~epresernts a price Iid~'e p~ursunnt to a
violations of any1 prov-ision of this 'Codle. th~e Code Authority may, by
notice to~ suc1h1 m~embr, extendc the etl'ective date of such price for
a period o~f not. mor~e than ten (10) days in orde~r thant investig~tion
may be made by the Code Authority pur~suant to the p~rov.iaions of
Sec't~ion ril II
ARTICLE X- .TNFAER COMPETITION
For the purposes of this Code, the following acts shall constitute
unfair trade p~racties and a violation of this C'ode:
1. A~laking or p~romising any~ bribe, grantuity, gift, or ot her rem~u-
neration, not filed and published in necordiance with Article IX
her~eof, dir~ectly or indiirectly to any pur~chaser or prospective pur-
chaser or to anyl officerr, employee, or, r~ep.resentativec thereof, for the
purpose or with the effect of making a sale of ce~ment; imitating any
brand or trademark used by any competitor; inducing or attempting
to induce in any manner the violation of any existing future sales
order or future sales contract~ or other existing contract between a
mlember of the industry and his customer, with t.he purpose or effect
of inducing or causing a breach of any such contract; circulating or
dissemlinatmng false or misleading information by words or acts rela-
tive to the prices, credit standing, business mntegrity, or ability to
perform contracts, of any competitor or the grade, quality, count,
character, nature, origin, manufacture, weight, or preparation of his
2. To comnpensate salesmen in any manner other than upon a fixed
sa-lary and fu~ll-t~ime basis.
3. To divert or permit purchasers or users of cement to divert
shipments of clement from one destination to another destination,
the result of which will enable the purchaser or user to secure
cement. at less than thle member of the industry's published market
price at th~e point of final destination.
4. The follow-ing practices, undertaken for th~e purpose or with
the effect., dirctly or inirciiectly, of furthering t~he sale or use of a
particular brandi of cement shall constitute unfair trade practices
and a violation of this Cod~e:
(a) Except, with p~ermission of the Code Aulthority (and such
perissonwhe gienshal aplyto all compail~nies in the mar-
keting area affetedl) tihe purchased, byrth ainy mem of tce nustryiv
of bonds, or other securities, issudfotefnainofcnruie
wor~k, either in th~e Ilname of the mnember of the indlustry, its sub-
sidiaries, or of individuals, or officers, connected~ therew\Tith, or the
acceptance of such bolnds, or other securities, in paymeltnt., whlolly or
in part., for cemrent, or th~e advance, loan, or payment of any' monies
bya member of the industry for the purpose of inducing~ thie pur-
case of cement, or to assume cost of B3idders' Boindts or to endorse
or enaral' ntee or in any wTayv relieve a Biddler of t~he r~esp~onsib~ility
for or the expense of providinzg such b~ondls, unles-s such condition's
shall hiave been filed and published in necorda~nce with Article IXi.
(b) For the purpose or with the effect of evadl~iin the provisions
of Article IX of this C~ode, the purchase of fuel ori other supplies,
either directly or indirectly, or in t~he lname of thle comlpany, or its
subsidiaries, or of individuals, or otlicersj connrectedl thilereith at
prices above the market. price thereof at the timie of purchase.
(c.) To miake or permit to be mad~e, eit~her dlirctly olr inirtiiectly,
any secret paymeltnt or allowannce of rebates, r~efundsr, commissions,
credits,,or unearnedl discounts in the formi of moneylr or otherw~ise,
or to secretly extend to cer'tain purchasers special services or~l privi-
leges not. exste~ndedt to aill purlC~hasers on lik~e te'rmsl an1d COnlditions.
(d ) Thle prepayment of tlransportatior n chanrges oni shipments c~on-
signedl to other than thle memiber of the industry itself, except in the
case of railroadl fr~ei ht charge s to stations to whlich regullationls re-
quire pi~~!repayent fromi any' shipping point, orl thle paym-ient of d~e-
murragye chlarges by any member of the ind~ustryv on iuch~ Iipmernts;
providedi. hlowev\er, tht thie foregoing provisionl except as to demrlur-
rage charges, shall1 not aplyll! t~o sh~ipmenits purllchased~t directly byI
and consigne'd to deparltmen'lts of th~e Unitedl States o. State G~overin-
ments, unless such conditions shall have been filed and published
in accordance wTithl Artficle IX.
(e) Knowingly dliverting or permnittinga to be diverted to other uses,
cement. shipped for a specific work pr~ojec~t nor kinow-ingly shipping
on a specific wrork~ ordcer or contract, an amount of cement in excess
of t~he actual needs of such~ work.
(f) To entice ma~lic~iously the emnplo~yees of a competitor with the
intent or effect of interfering with the conduct of the business of
(g) K~nowingly to ship cement by any transportation agency which,
for the purpose or wTith the effect of inducing or influencing the sale
or purchase of cement, makes payments or concessions by rebates or
(h) The payment, or offer to pay, directly or indirectly, any ad-
vertising expenlses of purchasers or users of cement.
(i) Lavish, excessive, or undlignlifiedl enter~tainment of purchasers
or users of cement, or others connected threrewith; donating funds,
or providing banquets or other similar lavish entertainment for pur-
chosers or users, or assoc-ciations thereof; giving or offering to give
premiums, personal gifts, gifts of cement, or gifts of any other comn-
modity of substantially value to purchasers or users of c~ement..
(j') Thle sanle by anyr member~~ of the industry, directly or indirectly,
of any comllmodit yv at a disi~crimlinatory price.
(k) Serv\ice~s tol pur~chasner s or users are proper under fair com-
petition, if confiinedl within the limits of advice and consultation.
The furnishings orf ar~ticlesi or1 facilities of a definite physical nature,
whet~her by way f loan, lease, gift, or otherwise, resulting in mrone-
tary benefit to purlc~hasers or users is discriminatory and- shall con-
st itu te u unfair comlpet it ion.
(1) No membller of thle ind~ust~ry shall maliciously refuse to sell to,
or maliciously interfter~e with the business of, dealers or users of
por~tlandc cemen~lt pur1chans ed from a competitor, for the purpose. of
interfering w~ith the conduct of the business of such competitor.
ARTICLE 11--1ETHO)D OF SELLING AND I\IARK~ETIN G CEMENT
The C'od~e A~uthor~ity may, after. the approval of the A~dministr ator
has been secul~red, authorize and approve e such exceptions to or modifi-
cations of any of the following provisions as it may see ~fit for all
members of th~e indiustry in the marketing tirea affected.
No mlember of thet ind~lustry shall discriminate in prices, terms,
and co~nd~itionc; of sale at t.hle same time and place of delivery between
purchallser~s o~r users of cement inr the same class and similarly
1. Excep~t as othlerw~ise specified, port~land cement shall be mar-
keted(. in eachl co~mmunityit through the buildings material dealers
regularly serving such community.
2. Exceplt as~ othe1~iirwi sp'eclified', th~e following buyers shall be
soldl dir~ect by member-Is of the induslltry3 at the samle price and under
the same termls and c~ondiitionsi of sales as to dealers:
U~nite~d States Grovernment.
State Govr>ernmentCs,~ Coiunties, and Parishes when properly author-
izedl t.o pur~chase cement forl public imnpr~ovsements or maintenance.
Clontractors doing any of t~he foregoing classes of work, except
where such work is located entirely within cities, towns, or villages.
Railroads filing tariffs with State or Inlterstate Clommlissions,
and conitractors doing work for such railroads.
OwTners or contractors buying for po\Ter development., flood con-
trol, andt water-supplly projects thalt do not require dea~ler service.
Concrete Products Ma:nufacturers, inc~luding~ block, tile, rooing,a
pipe, piling, and all other pree-~ast, concrete units when for their ow-n
minulfac~tur~ing operations, but not for resale.
Commnrercia concrete mixing plrints for their owvn prces-.sing- opera-
tiions, but. not for resale.
3. IDefinition of a dealer: A cement dealer as usdc~ h~erein is one
wFsho has an established place of business where he is regularly
engaged-l in selling portland cement anrd other building materials to
thle pul>"ic, with facilities to serv~e the retail trade in a given terri-
toryT andl able and willing to perform all functions devolving upon
him in securing, per~formning, and protecting colntrancts for the
dteliv-ery3 of portland cemelint. for specific work on his account.
No memberlj~L of the indlustryS shall pay to any deale~r any commis-
sion~s or other remunerationls for the sale of such mFember's c~ement.
4. Cremlrent shall be ma~rklete~d on the basis of a barrcl, wetigrhing 376~
pounds net; and shall be delivered(. in the followaing ma~nnler :
(a) ICn cloth or paper sack~s, four (4) sacks of 94 pounds net each
conl-titulte a barrel, or
(b>) In bulk comp~uted on we~ights on scalecs at thle plants or en
5. CemLent shall be manrketed3 either on current or market orders for
delivery within fifteen days, or on ordercls or contracts for future
delivery beyond fifteen. dajrs.
Ordrl-1 eint!ed for fifteen1 days' shipment sha~ll be subject to
Elhipown' t on the fifteenthi day w-ithout notice to tlhe pu~rchaser.
Qun;tatio~ns on. current orders shaUl be for immediate ne~ceptance.
Cement piur~chased~ for delivery bey~ondi fiftFEen1 day\s fromll date of
purchaseac shall be sold either to cover specific. worl2 or for period
ti. Application. n of Exhib~its B and C. Thle booking rof either spe-
cific wiork; orders or period requiremetnt contracts fr~om thle various
groups of purch;;ers listed in sections 1 and~ 2 of this article shall
be as follows:
(a) Unitedl States Go?-ernment: Sell under contracts for delivery
periods as specified in formal request~s for bids.
(b) States: IProjects onl which construction contracts are aw-arded.
Sell undelltr specific work contracts. Such contracts shall be closed
only after definite award of construction contracts. On request
fromil States for cemen~lt prices on such- projects, the prices quoted
shall be nlot h~igher than the prices in effect fifteen days prior to the
date onl which such Stalte.- receive construction bids and suchl prices
shall be good for acceptance wcitht~in fifteen days after such date for
receiv-ing construction bids.
Purchases for use b~y State Forces: If any department of the
State undertak~es construction work colnforming~ to the general defini-
tion of a specific work project, sell under specific work c~ontr~act. For
requirements of the character of r~epairs and maintenance, sell under
calendar quarterly contracts.
(c) Counties, Par~ishes, aind Cities: Sell on calendar quarterly re-
(d) Railroads: Sell on calendar quarterly basis for general re-
quirements-. Specific jobs requiring extended delivery may be sold
under t~he plan outlined below for specific ~work contracts, provided
the jobs are covered by approprilations, plans pr~eparled and it is
possible to definitely check the job for location and quantity. Con-
tracts for such specific job shall be limited to shlipment for such work
only and shall be closed for a period of not to exceed one year from~
date of contract. Cement under such specific job contracts shall not
be shipped to any town other than that provided in the contract nor
shall it. be diverted for use in general repair or majin-tenance workz.
(e) Ow~ners and Industrials: This: title includes industrial projects
and owners thereof, such as coal companies, manufacturing com-
pa~nie, street railways, packingr houses stockyards, cemeteries, light
and power comppanies, and all public utilities except railroads having
published tariffs and recognized by public service commrissions as
Sell for fifteen days' shipment only, on current or market orders;
when workl is dlone by the owner or industrial specific contracts shall
not be mande; wrhen an owner or industrial awards a specific job to a
contractor and the contractor buys the cemren~t requirements, specific
workl contract shall be clo-sedl provided the job may be checked
definitely as to location and quantity.
(f) Conduit construction o.r r~epair work by public utilities shall
not be sold for extendled delivery but shall be sold for fifteen day
shiipment onily on current or manrkett orders.
(g) Specu"lative residential w~or~k shall be sold for current delivery
onlyr. Any1 project involving more than one residence for onme owner
constitutes a specu~lativee operation.
(h) Products Rlanufacturers: (1) Manufacturers of blocks, tile,
roofing, aind all Products manufacturers not included in (2) below,
shall be sold on calendar qua.rt~erly contracts.
(2) Pipe manufacturers and concrete pile manufacturers: For
specific jobs which can be definitely checked for quantity and loca-
tion, sales shall be made on specific contract basis. In general such
specific contracts shall be confined to public work awarded by contract
where thle cement requirements can be accurately figured.
An order held by a piple manufacturer for the year's requirements
of a city, country, state, Indunstrial, or contractor shall not constitute
a specific job. Such orders as well as general requirements of the
plant shall be sold only on calendar quarterly contrac~ts.
(i) C'ommlercial Concrete Aixing ]Plants: Shall be sold for fifteen
day's delivery~ or for specific job r~equ~irements as herein provided; but
shall not. be soldl for general or per~iodl requirements.
T. Time of closing calendar requirement contracts. Contracts for
any quarltersal b131Ie quoted~ or closed: not earlier than the first day
of t~he Inst. month~ of thle prieceding quarter.
Thle basiis of a conltr'net (exCep~lt on1 sales direct from member of the
industry to user) shall b~e a bind~ing order placed by the us~er with a
dealer and: a corr~espondingl~, ord~er placed by the dealer with the
member of the indlustryS.
8. Time andl Manner of Closing Sp~ecific Work Orders.. When a.
contractor has an order with a b-uilding material dealer for a specific
wrork project, the member of the indlustry) shall book from the dealer
a pur~cha~se border fori the rIeqluired amlount of cement to~ be invoiced
at the member's ma~ketrt price at time of shiipmients. This order sh~all
be binding onl bothi partir-. The parties shall agr'ee in this order that
if thle member's prier should advance, a specific work contract shall
be entered into at the price prevailing prior to such advance, for
the qu~anrtity of cement then required to complete the project. The
dealer shall furnish the mlember of the industry, as the basis for
such colntrac~t, his record of the amount of cement deliveredl to t~he
contractor prior to thne advance in price, together with a verified
written estimate from a responirsible representative of the contractor
of the amount of cement still required to compllete the wor~k.
Specific workz orders at pr~~icesi prior to an advance in prices, but
closedc during the period immediately following on advaRnce. as de-
scribed in paragraph 8, shall be covered immediately by specific work
contral~cts, but such contracts hall be suppor~tedl byr the dlealer'!s record
of prio-r deliveries and thne contractor's written estimate of r~equire-
m~ents as above stated.
9. T'he provisions of this Article XI are desjignedl to meet present
industrial and social conditions as they relat~e to thle cemerlnt indlus-
try. But the ~Administrator and the C'ode Author~ity with the
approval of the Adm~inistrator reserve the right fr~om~ t~imecr to t.imne,
and after suchl hearinpf as they or either of them mlayl deemn necessary,
to modify the foregomng provisions of this Article as conditions and
circumstances may indicate to be nlecessary to effectuate the policy
and provisions of the Act.
AuRTICra XIZI-TERMrS AND CONDITIONS OF SALE
1. All future sales orders and future sales counteract s for t~he sale
of portland cement dhlall contain a definite statemnent of price, quan-
tities, terms of payment, time and place: of delivery, andC all other
terms of sale necessary to form a complete andc unamb~iguous contract.
2. No member of the industry shall srubstit.ut.e for a contract or
purchase order already executed and in force, a new contract or
purchase order for the same requirements at a lowrer prices or on
more favorable terms to the purchaser thanl ar~e containedl in thle
original contract or purchase order.
3. Attached hereto and marked Exhibits B~ and C are forms of
future specific sales orders, and contracts, thne pr~ovisions, terms, and
conditions of which have been agreed to by members of the industry
as rc1'epresntingg in substance the best practices wvithlin the indlustr~y.
4. Terms of payment shall be as follows: A cash discount of not
in excess of 1_00 per barrel may be deducted fr~om inlvoices paidl in
full within, fifteen days -fromn date of issue. Invoices not dliscounted
are payable net thirty days from date of issue.
(a;) IWhere purchases involve frequent shipments, a. plan of semi-
monthly remittance, based on a fifteen-day average, mlay be used as
All invoices dated from ~first day of month to fifteenth day of
month, inclusive, to be paid by thne 2'2d of that month; and a~ll in-
voices dated 16t~h to 31st, inclusive, to be paid by the 7t day~ of the
(b) Cash discount shall not be allowed if remnitta~nce. is forwarded
after the expiration of the 15-day ~period, or semimronthly period;
or if deduction is mnade in the :remittance for cloth sacks to be re-
turned or in transit and not yet credited; or if the remittance con-
sists in whole or in part of notes, trade acceptance, scrip, warrants
(w het her interest bearing or not), or anyJ mhedium other thn casch
or bankiable check for the full amount o h nocsuo hc
cash discount is deducted.
(c) The ponstmarrk dlate at point, of mai;ling shall determine the
date of remnittance.
(d) No unearned discounts shall be allowed.
5. Package charges and allowances:
(a) W'hen cement. is shipped inl cloth or palier sacks the price
shall include t.he members of the industry's published deposit or leas-
ingr c~ha rge for cloth sancks+ or t~he sellina charge for paper sacks and
payment of such charges shall be required at the same time as the
(b) W'hen used cloth sacks are returned empty to the member of
the industry the credit or allowance shall. at all times be in accordi-
ance with t-he member's published terms and conditions of sale.
6. Invoices: Invoices shall be dated as of the date of shipmnent
(prlovidedl where special and unusual conditions prevail, the memlber~s
of th~e industry in the district orr districts concerned, may, subject
to the approval of the Code Autlhority, chano-e this provision to con-
form to such special and unusual conditions) and shall contain full
information as to price, quantity, kind of package, terms of payT-
ment, place of dleliv~eries, routing, amount of freight allowed, and
any other dlatal necessary to show fully all conditions entering into
the sale. Any devriation or concession from these conditions is an
ARTICLE XIII-STANDARDIZATION OF PRODUCTS
1. All Port~land Cement marketed by members of the industry
shall comply with the standard specifications for Portland Cement
of the Ametrican SocietyJ for Testing M/aterialsadteAeia
Standar~ds Associat~ion, and/or the Fiederal Scicadtion Bomriard
Members of the indcust~ry m~ay sell cement under modified Portland
Cement sp~ecifications that are designed to meet special or unusual
conditions not adequately or Pro"aperly covered by the specifications
her~einabove referred to, p~rovidd however, that thae price at which
such~ mod-ifiedl Por~tland Cements are sold shall1 be filed with the Code
A u tho ri t .
2. Every~ member of the induzstryT shall guarantee hris products to
complyr withl all of the conditions of the specifications under which
they ar~e sold,! but shall not be responsible for the improper use of
cemlents andl~ therefore shall not gur~llantee finished work, nor shall
thle membelhr of th~e industry be responsible for condition of product
a ft er1 del iver~y.
3. No memnberl of the industry shall pay or absorb, directly~ or
indirecctl. anyl c~harg~es for inspection or tests mad(.e by or on behalf
of the purchasl~er to de~termnine compliance with specifications therefore.
It is the consensus of opinion of the industry that each member
thereof should bear his proportionate share of the burden of the
cost of constructive cooperative activities approved and supported
by the majority of the Industryv and whose benefits are common to
Nothing in. this Code contained, excepting, however, the provisions
of Article III, shall be deemed to apply. to or affect the sale by any
member of the industry of any products of the industry for direct
shipment in export trade.
1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with t~he pr~o-
visions of subsection (b) of Section 10 of N.I.R..A. from time to time
to canc-el or modify anly orderl, approval? license, rule or regulation
issued under Title I of said Act and specifically but without limita-
tion to the right of the Presidlent to cancel or modify his approval
of any provi\isio~n of this Code or any conditions imposed by himn upon
his approval the~r~eof.
2. Wihenev-er the Admninistratorr shanll determine such action by him
to be necessary to effectuate the plolicy of the Act, he mlay' modlify or
catncel anly action pursuant to this Codle by any agency established
3. Except. as to the provisions required by thle Act, this Code may
be~ modified on the basis of experience or changes in circumstances,
such mlodifica~tions to be b~ased upon application to the Admninist-ra-
tor, on such notice and hearing as he. shlall specify and to become
effective on appirovaul by the President.
No provision of this Code shall be so construed or applied as to
permit, or promote mnllopoly or monopolistic practices, or to elimi-
nate, oppress, or discriminutet against small enterprises.
AnnonL XV~III--ET rE ntr\- DATE
The effective date of t~he Codie shall be ten days after approval
thereof by the President.
ADpp'roved Code No. 128.
Registry No. 1010-1-02.
The twelve (12) geographical districts as described by the United State~s
Bureau of nIine~s are as follows:
District No. 1--Eastern Pennsyvlvania, New Jersey, 1Maryland.
No. 2--New Yorkl, 11aine.
No. 3-We'tstern Pennsylvania, Oblo, West Virg-inia.
No. 5i-W\isconsin, Illinois, Indiana, K~entucky.
No. 6-V~irginia, Tennessee, Alabama, Georgia, Florida, Louisiana.
No. 7--Eastern RIissouri, Iown, MinnPsota, South Dakota.
No. 8-W~estern M~issouri, Nebra;ska;, K~ansas, Oklahoma, Arkansas.
No. 10~-Colo-raldo, lIfontana, Utah, W7Cyoming, Idaho.
No. 12--Oregon, W~ashington.
(Specific sales order)
N'ame and Address of Cemnent C'om;anyS
WrTe have sold to _--_- --- ------- -- C'ontctrcllr ---- _____
Bairrels of (Brurvi.1 ) _-_, _____ Polrtland Cornent f.;r _________
(Fbrnet on or ahl).
,-- -----of hris requirements on the folllowing sprc~ille work awarded him:
(C'! nr ur~trr, descritilon.l and location of w~ork, and name of owner)
We e e-l yll~ place w-ith you our order for the above qua~ntity of (Brand)
,- _--_-_-Portla ndd Cement, to be packed in _____-____ (sacks),
for use on the above wrcork, at your prevailing mlarkeit price at time olf shipmeltnt,
subject to thle cornditions stated on bthnl sidesi hereof.
W~fe will desire delivery made, as the work reqluiles, upron our instructions In
earloadl lots, FLi.O.B. carlls .. -- __---_delivei\~ri to> be comlen~lte prior
It is expressly unth-r!.~oodC and1_ agreed:
1. That if you advance your market price p~riorr to thle complle~tiio of ship-
ments on this r...uk-r,~ you will, within ten (10) da7S~ olf thle effec.tive da~te of such
advanced, enter into your standard form of .speedie workr corntract with us, at
the prirce prio~r to suchi adnmeect, for the qua~tity of ccemecnt that may at thait
date be rr.alled~t for the completion of the work covFlere by this orde.lc
2. Thlat as a. basis for such specific wvork contract, 11e w~ill rulpl.Y you with
our r~eolcr of` cement de~livrt ed to the contralctlor prior to thle time of your
advance in price, toge~ther with a written. estimuate fromi the coutractor, or a
regilonsible Imh.lee~~~t~ of the contractor, of the quallity olf evinlent then required
to completed? the work.
Signed : -- -
-- --- Cement Companyp.
Date: _________-_- :
Termslll of Paymlent.--On up a r~l~ed credit net cashi 30 days~, fr~om date of in- :i
voice, or 10 cents per barrel discount forl cash in 15 dayl!s fromn dater of involice.
If ant any- t~ime thze finatncial re-qul~ns~ibility of Buyer blecomelis im~pairedl or
uns: lI f.ll t=,ry to set:!les it reserves the right to, requlre paymenlcts inl advanced or
,4; ii r.ul(r i --v o'1urit? or guaranllt('e that invoices w\ill be promp~tly paid w'hen due.
If Ilalte fails to comply with terms of playmenttl. r wilth any of the other
terms of stlej, Seller reserves the right to cancel untilledl Irrrtion of this order,
wTithfOut noticeC, Buyer remaining liable for all unpaid accounts. N'o waiver of
such rlilH sha~ll be impliedl 11llul any failure by~ Seller~ to exercise thie minre.
Pa.:*l.rl.;--.- lo thl sackls bt-a-r ll, Seller's rla~nds, inl 11hiebL reuenien hereinl con-
tractedl for is ]:;il ,1 are the prl.llForlty of S~lle~r and arle for a p~erilld of 00 days :
fr~om thle delivry~lr by Seller of the saiirl cement, leased byla it to Buye~r ait a charge
of 10 cents each, which char~lgc is included in p~r~ice forl cemenut packed in cloth
suckls and which char gel. Buyer a9rtees to pay:1 at samle tiwie anld oln bame terms
as I' !.1mentI for cemen~t is made.
Buyn!er ::r-l. within :t0 clays' of delivery of the cocnlent to deliver to Seller,
tlthe sI leIr. uit its nearest plant, freight -harges collect, as provlide~d by' railroad i
claissificutions and tariffs, Tr-ICrepoty bundle d and SO marked as to insure complete
id._llti --stilln. the cloth sacks hearings Seller's brandts, in which the said cement :
is pack id. and Seller agrees to refund to Buy~er 10 cents flor eanch said cloth c:
sack so ciebte-redc1 in good condition, subject to Seller's co~unt and inspection, and
to assume 1 te pht cehn rgesi thereon. If for any reason freight charges (per
railroad tariffs) are Ilrepaidtl they will be refunlded b' 1Sel~le upon presentation
of Hllroa~ld Colupany's receipleld freight bill or bill of lading.
BFor useless cloth sacks which have been wet, no refund will be made.
Cloth sacks bearing other than Seller's brands willI be held by Seller for 80
days subject to Buyer's order.
In the event that any of the said empty cloth sacks bearing Seller's brands
are sold or otherwise disposed of by Buyer to any person other than Seller,
the? owner. Buyers agrees to pay Seller, as liquidated damages, 10 cents for each
cloth sack so sold or disposed of.
If during the life of this order. Seller shall change its present charge for the
lease of cloth sacks. or the liquidated damages, or both, it is expressly agreed
that the said amount or amounts in the preceding paragraphs shall be changed
accordinglyl, and the gross price specified herein for cement packed in cloth
onek-s shall be banged in accordance with the change in charge for lease of
Price on cement packed in paper bags includes the paper bags, which are not
returnable. Shipmnents in paper bags are made at Buyer's risk of breakage
and resultant loss of ccemenet.
(If cement company requires a dlepocsit for cloth sacks, instead of leasing
them, the following clauses are suggested) :
Pack~age.--The cloth! sacks, beatrllng Seller's brand, containing the cement
are nort so~ld, but remain thle propierty' of Seller. Buyer agrees to return said
cloth sucks, properly bundled and marked so as to secure complete 'identifica-
tion, to Seller's nearest mlill, within ninety (90) days from the date shipment
of cement has been made.
Seller agrees to refund to Buyer the deposit of ten cents for each cloth sack
so returned. This deposit has b~een included in the price herein stated and
Buyer agr~ees to include it w~hen payment for the cement is made.
It is, however, expressly understood that such cloth sacks must be delivered
to Seller's mill in good condition and w\ill be subject to maill count and inspee-
tion, and that no refund will be mande for useless cloth sacks,- nor for cloth
sacks not of Seller's brand. Such cloth sacks, if received, will be held by Seller
for thirty (30:) dlays subject to Buyer's order and risk.
Seller agrees to pay' carrier's freight charges on returned empty cloth sazcks
of Seller's brand after delivery to its nearest mlill or to refund Btuyer~ for freight
charges prepaid on such shipments upon presentation of original bill of lading
properly executedl or original receipted freight bill.
If Seller shall change its present dep~osit required for cloth sacks, it is
expressly agreed that the said amounts in the preceding paragpraphs shall
be changed accordingly and the gross price splecif~ied herein for cement packed
in cloth sacks shall be changed in accordance with the change of d~eposit
Price on cement packed in paper bags includes the paper bags which are
not returnable. Shipments in paper bags are moade at B3uyer's risk of breakarge
and resultant loss of cement.
Claimws.--Claimls for loss or damage w~ill not be considered unless supported
by seal record and railroad agent's ackunowledgen~t on freight bill. Fr'Eighlt
overchanrge c~laimus must be accompanied by original reeipte~d freight bill.
Time of dleliv~err.--Buyer shall give Seller shipping instructions in w\riting
a reasonable time before shipments are to, be made. If Buyer fails to order
shipment within the time speei~ed Seller shall have thne right to extend the
time for delivery of such cement, but shllnl not be obligated to do so, except
at its oprion.
The Seller reserves the right to select the route and method by which ship-
ments shall be forwarled~, but no Seller can be required to favor any one route
or method of transportation as against another by any joint action of the
members of the industry or the Code Author~ity'. Transportation charges per
tariff applying from shipping point to place of dlelive~ry for route and method
of shipment used, will be paid by the Buyer for the account of th~e Seller.
Seller shall not be liable to Buyer for any delnys in manufacturing, shipping,
or delivering said cement, caused by fire, sitrikes, lockouts, dlifferences with
workmen, accidents, w~ar, insurrection, inability to secure cars, coal, or other
material, governmental interference or regulation, delays in transportation or
contingencies beyond Seller's control; and during the timne of sucrh delays Seller
shall bnve the right to pro rate among its various customers such cement as
it may be able to manufacture and ship.
S'pecificationea.-The cement shipped under this order shall conforml to the
present standard specifications for Portland Cement of the Almerican Society
for Testing M~aterials and the American Standards Association and/or the
Federal Speciic~ation Board, and no other warranty is made in respect thereof
Seller being no control over the use of cement will not, therefore, guarantee
finished work in which it is used, nor shall the Seller be responsible for the
condition of cement after delivery to Buyer. Any charges incident to inspec-
tion or tests made by or on behalf of Buyer to determine compliance with
s-pecitientions shall be3 paid by Buyer.
Seller's prevailing market price may be advanced by the amount of any
increase in freight rates and/or any additional Government tax on freight
and/or the amount of any tox on sales or contracts of sale effective after the
date hereof without imposing on Buyer the obligation to enter into Seller'S-
standard form of specific work contract, as provided in paragraph 1 hereof.
(Form of future specific sales contract)
Agreement made this ............, day of __,....------ ------ 193- ,
between -- ..... ---.--__--__----..... Cement Company, hereinafter called
Beller and .. ........................,- of .. .
hereinafter called Buyer:
Seller hereby sells and agrees to furnish and deliver and Buyer hereby buys
and agrees to receive and pay for Portland Cement in the quantity and on the
terms and conditions hereinafter and on the back hereof set forth.
Description and qucantity.--The purpose of this contract is to cover the pur
chase and sale of all thle Portland Cement required to complete the work
hereinbefore described, whether more or less than the quantity stated herein.
Buyer represents that the aforesaid number of barrels of cement w'ill be used
in the construction of the above-described work and agrees that no portion of
such cement will be used for any other purpose without the written consent
of Seller. If any of the cement shipped hereunder is reconsigned or diverted
by Buyer from the place of delivery specified herein or used for any other
purpose, Seller may cancel this contract and refuse to ship any more cement
and Buyer agrees to pay' Seller's market price at the place of final destination
for su~ch cement as has been diverted by Buyer from the place of delivery
specified her~ein or has been used by Buy~er for any other purpose than the
purpose above specified; Buyer I~remaning liable for all unpaid accounts.
Place of de~livery.-F.O.B________,___
Tim~e of deliersrU.--Prior to----- ...-- ___-_________
as required by the progress of the w\ork. Buyer shall give Seller shipping
instructions in writing a reasonable time before shipments are to be made.
If Buyer fails to order shipment within the time spgecified Seller shall have the
right to extend the time for delivery of such cement, but shall not be obligated
to do so, exrcept at its option.
Per standard barrel, in cloth sack~s__,, __________ 9_______
P'er standard barrel, in paper bags ____,____ ____ 9_______
Per standard barrel, in bulk________ ____ ___ 9;_______
Price includes freight ait present rates and will be increased by the amount of
any increase in freight rate and,'or any additional Government taxl on freight
and,'ur by the amzount of any tax on sales or contracts of sale effective during
the life of this contract. All shipments made on this contract wvill be at the
current destination price of Seller on the date of shipment, if this price is
below the contract destination price mentioned herein.
Sterns of palmnent.-OCn appDroved credlit net cash 30 day3s from date of in-
voice, or 10 cents per barrel discount frrr cash in 15 day\s from date of invoice.
If at any time the financial responsibility of Buyer becomes impaired or un-
satisfactory to Seller, it reserves the right to require payments in advance or
satisfactory security' or guarantee that invoices will be promptly paid w~hen due.
If buyer fails to comply with terms of payment, or with any of the other terms
of sale. Seller reserves the right to cancel unflled portion of this contract, with-
out notice, Biuyer remaining liable for all unpaid accounts. No waiver of such
right shall be implied from any failure by Seller to exercise the same.
This~ contract is not assignable by Buyer without the consent of Seller in
---------------- -----------------------------l,---CEM ENT (COMPANY.
By----- ----------- ______---- By--,,, ________,,,,
Pack~age.--Cloth sacks hearing Seller's brands, in which cement herein con-
tracted for is packed, are the property of Seller and are for a period of 90
days from the delivery by Seller of the said cement, leased by it to Buyer at a
charge of 10 cents each, which charge is Included in price of cement packed In
cloth sacks and which charge Buyer agrees to pay at same time and on same
terms as payment for cement is made.
Buyer agrees within 90 day\s of delivery of the cement to deliver to Seller,
the owner, at its nearest plant, freight charges collect, as provided by railroad
classifications and tariffs, properly bundled and so marked as to insure com-
plete identifiention, thle cloth sacks bearing Seller's brands, in which the said
cement is packed, and Seller agrees to refund to Buyer 10 cents for each said
cloth sack so dlelivretEd in good colndition subject to its count and inspection,
and to assume freight charges thereon. If for any reason freight charges
(per railroad tariffs) are prepaid, they will be refunded by Seller upon pre-
sentation of Railroad C'ompalny's receipted freight bill or bill of lading.
F~or useless cloth sacks which have been wet, no refund will be made. Cloth'
sacks bearing other than Seller's brands will be held by Seller for 30 days subject
to Euyer's order.
In the event that any of the said empty clo-th sacks bearing Seller's brands
are sold or otherwise disposed of by Buyer to any person other than Seller,
the owner, Buyer, agrees to pay Seller, as liquidated damages, 10 cents for
each cloth sackr so sold or disposed of.
If during the life of this contract, Seller shall change its present charge for
the lease of cloth sacks, or the liquidated damages, or both, it is expressly
agreed that the said amount or amounts in the preceding paragraphs shall be
changed accorrdinglyg, and the gross price specified herein for cement packed in
cloth sacks shall be changed in accordance with the change in charge for lease
of cloth sacks.
Price on cement packed in, paper bags includes the paper bags, which are not
returnable. Shipments in paper bags are made at Buyer's risk of breakage
and resultant loss of cement.
(If cement company requires a deposit for cloth sacks, instead of leasing
them, the following clauses are suggested) :
Package.--The clothi sacks, bearing Seller's brand, containing the cement are
not sold, but remain the property of Seller. Buyer agrees to return said cloth
sacks, properly bundled and marked so as to insure complete identification, to
seller's nearest mill, within ninlety (90) days from the date of .shipment of
cement has been made.
Seller agrees to refund to Buyer the deposit of ten cents for each cloth sack-
so returned. This deposit has been included in the price herein stated and
Buyer agrees to include it when payment for the cement is made.
It is, however, expressly understood that such cloth sacks must be delivered
to Seller's mill in good condition and will be subject to mill count aind inspec-
tion, and that no refund will be madde for useless cloth sacks nor for cloth
sacks not of Seller's brand. Such cloth sacks, if received, will be held by
Seller for thirty (30) days subject to Buyer's order and risk.
Seller agrees to pay carrier's freight charges on returned empty cloth sacks
of Seller's brand after delivery to its nearest mill or to refund Buyer for
freight charges prepaid on such shipments upon presentation of original bill
of lading properly executed or original receipted freight bill.
If Seller shall change its present deposit required for cloth sacks, it is ex-
pressly agreed that the said amounts in the preceding paragraphs shall be
changed accordingly and the gross price specified herein for cement packed in
cloth sacks shall be changed in acc~Ior~dance with the change of dleposit required.
Price on cement packed in paper bags includes thle paper bags which are not
returnable. Shipments in paper bags are made at Buyerzl's risk of breakage and
resultant loss of cement.
C~laims.--Claims for loss or damage will not be considered unless supported
by seal record and railroadl agen t's ne~knowledgem~lent orn fretight billI. Freight
overs~l~-borge claims must be acc~omlpnied by original receiptedl freight bill.
The Seller reserves thie right to select the 'onlto andl methol by' which ship-
ments shall be lfo;rwarded, but no Seller can be requiredl to favrrl any one route
or method of transportation as agalinst another by~ aIny joint action of the mem-
bers of the industry or th~e Code Autho:rity. Transpiortatioc n charges per tariff
applying from whlipping point to p~lnce o~f dlelivery~ forr route and method of ship-
ment used, will be paid by the Buyer for the ne~ct.u!nt o~f the Seller.
Speoiffcationzs.-The cement shipped under this contract shalll conform to the
present standard specifications for :Portland Cement of the American Society
for Testing Materials and the Amlerican Standlards Assoc~iation ands or the
Federal Specifications BoEard, and no other W'arr~anty is made in respect thereof.
Beller having no control over the use of cemnent will not, therefore, guarantee
finished work in which it is used, nor shall the Seller he responsible for the
condition of cement after delivery to Buyer. Any charges incident to inspection
or tests made byv or onl behalf of Buyer to dletermrine complliance with sjpecifica-
tions sha II be paid by Buye~r.
Seller .-hall nolt be liable to Buyer for any delays in manufneturing, shipping,
or delivering said cement, caused by ifre, strikes, lockou~ts, differences with
workmen, accidents, war, insurrection, inability to secure cars, coal, or other
material, governmental interference or regulation, dlelays in transportation, or
contingencies beyond Seller's control; and during the time of such delays Seller
shall hav-e the right to p~rorate among its various customers such cement as it
may be able to manufacture and ship.
Seller shall hlave the right, but shall not be obligated, to ship, from any plant
other than the one normally supply~ing the delivery point spec~ifed herein.
BUalk cem~lentl.-Shipments of bulk cement shall be inv-oiced and collected for
on a basis of track scale weights nearest to point of origin.
~11i 5 5 El,~?Ill5 11111