Code of fair competition for the insulation board industry as approved on March 22, 1934


Material Information

Code of fair competition for the insulation board industry as approved on March 22, 1934
Portion of title:
Insulation board industry
Physical Description:
p. 331-346 : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Building materials -- Law and legislation -- United States   ( lcsh )
Insulation (Heat)   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1630-1-02."
General Note:
"Approved Code No. 353."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004939304
oclc - 650553610
System ID:

Full Text


I' I
For sale by the Superintendent of Documents. Washington, D.C. I Price 5 center

Approved Code No. 353

Registry No. 1630--2-02







This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of
Foreign and D~omestic Commerce.
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Custombouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Com3merce BSuilding.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
Hfouston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamrber of Commerce Building.
Jackrsonville, Fla.: Chamber of Commzerce Building.
K~ansas City, Mo.: 1028 Bfaltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Kly.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
M/inneapolis, Minn.: 213 Federal Building.
New Orleans, L~a.: Rtoom 225-AL, Customhouse.
New York, N.Y.: 734 Custombouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 F'ederal Office Building.

Approved Code No. 353


As Approved on. March ~22, 1934


An application having been duly mlade pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
F~air Comrpetition for thze Inasulation. Board Industry, and hearings
having been duly held thereon and the annexed report on said Code,
containig findings with. respect thereto, havig been made and
directed to the President:
NOW, TIHE]REFORE, on behalf of thze President of thle U~nited
States, I, H~ugh- 8. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executiv-e Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report anld do find that said Code complies in all respects
withz the pertinent provisions and will promote the policy and pur-
pose~s of said Title of said Act; and do hereby order that said Code of
Fair Competition be and it Is hereby approved; provided however
that the application of ~Articnles III anzd IV to Hawaii shall be andj
hereby is stayed pending mly further order.
Administlrator for Industrial Recovery.
AQpprov-al recommended:
Division. Admin istrator.
March 9, 1[984L.

47885"--425-1 20----34



The WCthite Hlouse.
SmR: This is a report on the Code of F~air Competition for the Insu-
lation Board Industry, as revised after a public: hearing conducted in
Wiashington on November 9, 1933, in accordance wIJith the provisions
of the National Industrial RecovPery Atct.

Employees are not permitted to work more than forty hours a,
week and eight hours a day, with certain exceptions, such as repair
and mzaintenance crews, watchmaen, tour machine workers to avoid
shutdowns, and employees engaged in emergency- repair work.
Fartctory employees are pernutted to work forty-eight hours a week
and eight hours a day during twelve weeks of peak production periods
of each. year but one and one-haalf times the normal rate shall be paid
for hours worked in excess of forty a week and eight a day.
Office employees are permitted to work forty hours a w-eek.
Though eight hours is the daily normal, these employees mnay be
permitted to work nine hours a day; hourly limitations do not apply
to executives, managers or supervisors who receive thirty-five dollars
or more a week, or to outside salesmen. No employee is permitted
to work more than six days in any seven-day period. Employers are
not permitted to work employees time which when totaled witfh that
performed for another employer, exceeds the mnaxim~um provided by
this or any code.
In H~awaii, skilled and semni-skilled employees are permitted to work
forty-eight hours a week during two three-month periods each year;
provided, one anld one-half the normal rate is paid for hours worked
in excess of forty a week.
Except for office and sales employees, the minimum hourlyp rate of
pay shall be forty cents in the North, thirty-two and one-half cents
mn the South and twenty-seven and one-half cents in. H3awaii.
A minimum rate of pay is established irrespective of whe~therr an
employee is compensated on a time rate, piecework, or other basis.
Compensation of emnploy-ees receiving more than the minimum shall
be equitably adjusted but in no event shall rates of pay be reduced.
Office and scales employees shall receive either fifteen, fourteen and
one-half, or fourteen dollars a week, depending upon the population
of thec place of their employment.
Ot her provisions relate to employment of handicapped persons,
regular payment of wages, child labor and equality in pay for maales
and females doing the same work.



Operating under the President's Reemployment Agreementf, th
wages of 76.1 percent of the industry's employees were raised and the
industry engaged 2 percent more employees than ever before. Though
operating at 45 percent of capacity, this industry will reemploy all
former employees. Employment on September 1, 1933, shows an
increase of approximaately 20 percent over thre average number
em~ployed during the year 1929.
A very large percentage of the total number of factory employees
wil be beneficially affected by the~ proposed mrinimnum rates in the
Avcerage working hours will be reduced 26 percent, or from an
av-erage of 54.4 per week to slightly more than 40 without materially
reducing the employees' annual incom~ne. The forty~-hour limitation
on thte work will mean a 26 percent decrease in hours worked in a wveekr.
The rates of pay of 60 percent of this industry's employees who are
unskcille~d will be greatly increased. The equitablet adjustment pro-
vision, of this Code wil effect material increases in the rates of pay
of skilled employees.
TIhis Code will eliminae unfair practices and facilitate the rendi-
tion of better service by this industry to the construction industry.
Further increases in employment are~ contigent uponl a return to
normalcy of residential construction in which the industry's products
are prunarily used.
The Assistant Deputy Administrattor in his final report to me on
said code, havig found as herein set forth and on the! basis of all the
proceedings in this matter:
I fid that:
(a) Said code is wel designed to promote the policies and purposes
of Title I of thze N~ational Industrial Recovery Act, including removal
of obstructions to the free flow of interstate and foreign commerce.
which tend to diminish, the amount thereof and will provide for the
general welfare by promoting the organization of industry for the
purpose of cooperative action among the trade groups, by inducing
and maitainn unied action of labor and management under ade-
quate governmental sanctions and supervision, by chinunatmng unfair
com~petitive practices, by promoting the fullest possible utilization of
the present productive capacity of industries, by avoiding undue
restrictions of production (except as may be temporarily required),
by increasing the consumption of industrial and agricultural products
through increasing purchasinga power, by reducing and relieving
unemployment, by Improvmng standards of labor, and by otherwise
rehabilitating industry.
(b) Said Industry normally employs not more thatn 50,000 em-
ployees; and is not classified by me as a major industry.
(c) The code as approved complies in all, respects with the pertinent
provisions of said Title of said Act, including without limitation
Subsection (a) of Section 3, Subsection (aL) of Section 7, and Sub-
section (b) of Section 10 thereof; and that the applicanot association is
an industrial association truly representative of the aforesaid Indus-


try; and that said association imposes no inequitable restrictions on
admission to membership therein.
(d) The code is not designed to and will not permit monopolies or
monopolistic practices.
(e) TIhe code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against thema.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said code.
For these reasons, therefore, I have approved this code.
MARCH 22, 1934.


To effectuate the policies of Title I of the National Indust~rial
Recovery Act, this Code is established as a Code of Fair Comnpetit~ion
for the Insulation Board Industry, shall be the standards of fair com-
petition for such industry and shall be binding upon every member

The term "Insulation Board Industry" or "the Industry" as used
herein includes the manufacture and/or sale, by a member of the
industry wcithinl the Unijted States and those of Its possessions and
territories to whch the Ac~t applies, of insulation board products
herein defined as "industry products".
The term '"member of the Industry" or "Industry member"
includes those manufacturing and selling industry products, those
selling as manufacturers the entire output of a manufacturer of any
such products and those manufacturers selling, and billing therefore,
industry products manufactured for them by another, but not in-
cluding those recognized by the Industry as wbholesalers and/or
dealers and/or contractors.
The term "industry products" includes the following insulation
boards: building board, latha board, slheathing board, sheathing
plank, tile board, insulating batten strips, bevel la-p plank, paper sur-
faced insulation board, movie board, roof board, industrial board,
cold storage board; and also panel board, hard board, and quarter
TIhe term "Emcployee" as used herein includes any person engaged
in any phase of the Indlustry, however compensated, except a member
of the industry.
The term "E~mplo~yer as used here~in includes any one for whose
benefit such an employee is so engag~ed.
T~he ter "President" means the President of the United St~ates.
Thie terms ""Act"' and "Administrator" as used hnerein mean re-
spectively Title I of thre National Indust~rial Recovery; Act, and the
Administrator for Industrial Recov-ery.
3Population for the purposes of thius Code shal be determined by
reference to the 1930 F'ederal Census.

SECTION 1. No employee shall be permitted to work in excess of
forty (40) hours in any week or eight (8) hours in any day except as
otherwise provided in tis Article III.
r See paragraph 2 of order approving tbis Code.


SECTION 2. In order to provide for peak production periods plant
and factory employees may, during any twelve (12) weeks in each
calendar year, be permitted to work up to but not in excess of forty-
eight (48) hours in any week, or eight (8) hours in any day, provided,
however, that such time worked in excess of forty (40) hours in. any
such week or eight (8) hours in any day byT such employees, shall be
paid for at not less than one and one-half (1Yz) times thce normal rate
of paiy.
SECTION 3. TIhe maaximum hours of labor for chauffeurs, truckmen,
switching crews, repair and maintenance crews, engineers, firemen,
electric operators and departmental foremenl shaall be ten (10) per cent
over the hours fixed ini the foregoing Sections 1 and 2, provided, how-
ever, that the total number of such employees wcho may be! worked the
maximum hours hereinz established shall not exceed ten (10) per cent
of the total number of plant and factory employees of the individual
member of thze industry, and provided, further, that in no event shall
such employees be permitted to work in excess of forty-eight (48) hours
per week during peak; periods and shall receive overtime of at least
one and one-half (1%) times the normal rate for all hours in excess of
forty (40) hours per week and eight (8) hours per day.
SIECTION 4. (a) Tour machine workers in. continuous process opera-
tions, may be permitted to work additional hours to avoid a shut-
down due to the temporary absence of a scheduled relief worker.
(b) Tour m~rachine workers m~ay be permitted to work two additional
hours at the end of a machine run for clean-ups, wash-ups and ordinary
repairs and adjustments in cases where a machine is shut downrl for a,
period of not less than twenty-four (24) consecutive hours provided
one and one half (1%) times the normal rate is paid for such additional
SECTION 5. The maximum hours for watchmen shall be fifty-six
(56) hours in anly one week.
SECTION 6. In Hawaii skilled and semi-skilled employees shall be
permitted to work forty-eighzt (48) hours a ~week during twog three-
months periods in each calendar year, provided, however, that all
such time worked in excess of forty (40) hours in any week shall be
paid for at not less than. one and onze-half (1%) times thze normal rate
of pay.
SECTION 7/. No accounting, clerical, office, or sales employee (ex-
cept outside salesmen) shall be permitted to work in excess of forty
(40) hours per week or nine hours per dayV. A normal day shall not
exceed eight hours.
SECTION 8. No employee shall be permtted to work in excess of
six. days in any seven-day period.
SECTION 9. NO employer shall knowingly permit any employee to
work3 for anzy time which, when totaled with that already performed
for another empl oyer or employers or under another code or codes
exceeds the maxilmum permitted herein.
SECTION 10. The foregoing limitations on hours anzd days in this
Article III shall not apply to outside sales or outside sales service
men; to employees engaged in, executive, managerial or supervisory
capacity who receive thirty-five (35) dollars per wveek: or mzore; or
to employees engaged in emergency work involving break-downs or
the protection of life or property~ but employees engaged ini such
emergency work shall be compensated by at least one and one-half


(1!2) times the normal rate for all worki in excess of the normal hours
of fortyT (40) per w-eek and eight (8) per day, herein provided.
SECTIOrN 1. No employee (excrlluingr accounting, clerical, office and
sales employees) shall be paid at less thtn, thirty-two and onie-half
(32%) cents per hour in Virginia, North Carolina, South Carolina,
Georga, Florida, Al~abam~a, MRississipp~i, AQrkancsas and Louisiana;
nor in any other state at less than forty (40) cents pe~r hour; nor in
H~awaii at less than twenty-seven and one-half (27%1) cents per hour.
This Section establishes a minimumn ra to of pay which shall apply
irrespectiv-e of whether the employee is compensated on a time rate,
piece-work, or other basis. An equitable adjustment for employees
will also be made as to rates of compensation in excess of such mini-
maum rate by all members of the Industry wrho have not heretofore
made such an equitable adjustment and in no case shiall rates be
decreased, and within sirtiy (60) days after the: effective date hereof
each member of the Industry shall report to thae Code Authority,
for submission to the Administrator, the action taken by such mlemberr
~in pursuance of this provision.
SECTION 2. No accountin, clerical, office or sales employee shall
be paid at- less than the rate of fifteen (15) dollars per weeks when
employed in any cityr of over 500,000 population or in the immediate
trade area of any such city; or at less than the rate of fourteen and
one-half (14%) dollars per week when employed in any city of between
250,000 ancd 500,000 population, or in the immediate trade area of
any such city; or at less than the rate of fourteen (14) dollars per
week when employed in any city of less than 250,000 population,
or in the immediate trade area of any such City.
SIECTION 3. A person whose earning capacity is limited because, of
age or physical or mental handicap maay be employed on light work
at a wcage not less than eighty (80) per cent of the minimum estab-
lished by this Code, but such employees shall not exceed fiv~e per cent
of any employer's total nzumber of employees, provided the employer
obtains from the state authority designated by the United Staltes
Department of L~abor a certificate authorizinzg hais employment at
such wages anId for such hours as shall be stated in the certificate.
Such state aut~horityg shall be guided by the instructions of thet United
States Department of Labor in issuing such certificate. Each em-
ployver shall file writ~h t~he Code Authority a list of all such persons
employed by him.
SECTION 4. An employer shall make payment of all wages in lawful
currency or by negotiable check at regular pay periods. These wages
shall be exempt fromt any payments for pensions, insurance, or sick
benefits other than those voluntarily made by the employee, or re-
quired by state or federal law. The employer shall accept no rebates
directly or indirectly on such wages.
SECTION 5. Female employees performing substantially the samne
work as male employees shall receive the same pay as male employees.
SSee paragraph 2 of order approving this Code.

47885"-4--25--120----34 2



SECTION 1. No person under sixteen (16) years of age shall be
employed in the Industry. No person under eighateen (18) years of
age shall be employed in machine operations.
SECTION 2. InL compliance with Siectionl 7 (a) of the Act it is pro-
vided (a) employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the mterference, restraint, or coercion of employers of
labor, or their agents, in the designations of such representatives or
in self-organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection; (b) no emn-
ploy~ee and no one seeking employment shall be required as a condi-
tion of employment to join anly company union or to refrain from
jounng, orgamizmg, or assisting a labor organization of hIs own
choosing; (c) employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employmnentl
atpprov~ed or prescribed by the President..
SECTION 3. NPo employer shall reclassify employees or duties of
occupations performed or engage in any other subterfuge for the
purpose of defeating the purposes or provisions of the Act or of thie
SECTION 4. No provisions of this Code shall supersede* any state
or federal law which imposes on employers more strigent reqluire-
ments as to age of employees, wages, hours of work, or as to safety,
health, sanitary, or general working conditions or insurance or fire
protection than are imposed by this Code.
SECTION 5. EaLch employer shall keep posted, under such rules as
the Adminstrator may prescribed, in conspicuous places at every
plant or factory in which Industry products atre manufactured, copies
of this Code.
SECTION. 6. 1Each employer shall provide for the health and safety
of his workmen at the place and during the hours of their employ-
ment. Standards for safety and health shall be submitted by the
Code Authaority- to the Administrator for approval before June 1, 1934.
SECTION 1. The Code Authority shall cause to be formulated and
submitted for the approval of the Administrator, an accounting
system and methods of cost finding and/or estimnating capable of use
by all members of the industry. After such system and methods have
been formulated and approved by the Administrator, full details
concerning them shall be made available to all members. Thereafter
all members shall determine costs in accordance with the principles
of such methods.
SECTION 2. No member of the IndustryT, after the adoption of said
uniform cost accounting system, shall price or sell any Industry
product below such mlem~ber's allowable cost as dletermined under
Section 1 of this Article, except to meet a~n estarblished market price
on such product. Established market price on. anly industry product
for the purpose of this Section means the price at which any com-
petitor is selling such product.


SECTION 1. Each member of the Industry shall, withinr five days
of the effective date of this Code, publish andi file wit~h the Code
Authority, or such other agency as the Code Authorit~y moay desig-
nate, complete lists or schedules of prices and terms and conditions
of sale of all Inldustry products offered for sale by such member
except to another member of the Industry, and shall so publish and
file al subsequent, changes the~trein or revilsions thereof, anid such price
lists or schedules anid terms anld conditions of sale, and changes or
revisions thereof as aforesaid so filed, shall for thze purpose of this
ardConde etreaeds thsae published price lists or sched ul es and terms
andconitinsof aleofthe member filing the somle, and shal be
available to each member of th~e Industry and after the effective
date thereof to all interested parties. The Code Authority shal
promptly cause a copy of all such price lists and term~s and conditions
of sale, and all changes therein or revisions thereof, to be sent to
each member of the Industry.
SECTION 2. PIJO member of the Inldustry- shal offer for sale, quote
on or sell any of its industry products at a price or prices or upon
terms and conditions other than those stated in the published price
list and the sterns and conditions of salet, and changes therein or
revisions thereof, published and filed by such member, except to
another member of the Industry.
SECTION 3. If at anytime hereafter the Administrator shall give
his approval to the requirements that subsequent changes or revisions
of any price lists or terms or conditions of sale! as provided inl Sec-
tion 1, hereof shall be filed a specific period of timne prior to the eff~ee-
tive date thereof, thze Code Aut~hority mrayT provide that all changes
in~ such price lists or terms or conditions of sale or revision thereof
thereafter filed shall be published or filed five days or such other
period of time as may be approved by thte Admnimnstrator, prior to
the effective date of any such subsequent changes or revision, and
such price lists or schedules andi terms and conditions of sale, and
changes or rev-isions thereof as aforesaid so filed, shall for thle purpose
of this Code be treated as the published price lists or schedules and
terms and conditions of sale of the member filingg the same, and shall
be available to each member of the Industry and after the effective
date thereof to all interested parties. The Code Authority shall
promptly cause a copy of all such price lists and terms and con-
ditions of sale, andi all changes therein or revisions thereof, to be
sent to each member of the Industryr. In the event that anly Industry
member shall not receive sufficient notice. of the filing by any other
Industry member of changes in such other member's prices or terms
and conditions of sale as will enable such member to meet such
changes on the effective: date thereof, such member may file w~it~h
the appropriate agency such changes in such member's prices or
terms and conditions of sale as may be required to meet the changes
filed by such other member. Changes so filed by such member
shall become effective on the same date as the effective date for the
changes of sucrh other member first. filinrr as aforesaid, or, if those
changes shall have already become effectiv-e, then the changes sub
sequently filed as aforesaid, shall become effective~ immediately.


SEICTION 1. A Trade Practice Code for the Industry is attached
hereto as Exhibit A and made a part hereof.
SECTION 2. Any deviation fromt the standards of fair dealing set
forth in such Trade Practice Code or anty am~endm~ent thereof shall
be an act of unfair competition.
SECTION 3. Articles VI, VII, VIII, hereof and anyT Trade Pra~ctice
Code or Merchandising Plan adopted by the Industry with the
approval of the Administrator shall apply- to sales for consumption
in the United States, its possessions and territories only.
To further effectuate the policies of the Act, a Code Authority
is hereby set up to cooperate with the Administrator in the adminis-
tration of this Code.
SECTION 1. The Code Authority shall consist of one representative
from each member of the Industry wh2o shall subscribe to th2e Code
and sustain his prorata share of the expenses as provided in Section
6 of this Article IXL. In addition, there may be not more than
three members, without vote and without cost to the Industry, ap-
pointed by the Admainistrator to serve for such periods as the Adminis-
trator may designate.
SECTION 2. The Code Authority shall have full power and authority
from time to time to require such reports from members of the Indus-
try with respect to capacity, production, orders and shipments, per-
sons employed, wvage rates, earnings and hours of labor, prices, costs
and other items as may be required to adequately .administer and
enforce the provisions of this Code; subject to approval by the Admain-
istrator after such hearing as he may prescribe, to prepare and pro-
mulgate for the Industry from time to timle, merchandising plans or
changes in or additions to any such plans which may be adopted
under this Code containing such provisions as may be necessary or
proper to insure fair selling methods by- thze Industr~y and to prevent
unfair competitive practices, and to recommend the standardization
of products by the members of the Industr~y. It shall also have power
an-d authority to make rules and regulations, consistent with the intent
of the Act, for its own conduct and subject to the Administrator's
approval, for the administration of this Code, to cooperate with the
Admlinistrator and other proper government officials in the enforce-
ment of this Code, and to do all things proper to enable this Industry
to function under this Code and to give full effect to the rules, regula-
tions, and conditions, herein contained or promulgated hereunder.
In addition to information required to be submitted to the Code
Authority, all or any: of the persons subject to such Code, agreement,
or license shall furnish such statistical information as the Admunis-
trator mnay deem necessary for the purposes recited in Section. 3 (a)
of said Act to such Federal and State Agenexes as the Adm~inistrator
may designate; and nothing in this Code shall relieve any person of
any existing obligation. to funsh reports to Government agencies.
In order to assure confidential treatmnent of individual figures, all
reports, data and information which the! Code Authority is emlpowered
to receiv-e shall be received b~y an agency aippointed by- the Code Au-
thority, not a member or connected with a mnemIber of the IndustryJ,


or, in the absence of such appointment, the secretary of t.he Insulation
Board *Institute is hereby appointed the agency to receive the same.
The agency so receiving any such reports, data and information shall
keep th same: confidential except. when required by the Code Aut~hor-
ity or by the Administrator for the proper enforcement of this Code.
All such reports, data and information shall be available at all times
to the Adminlistrator.
Collusion between any Industry member and any such confidential
agency for the purpose of examining any report or data or obtainling
information collec ted or received by such confidential agency
hllconst~it~ute. unfair competition anid shall be a violation of this
SECTION 3. The Code Authority may from time to time appoint a
commlittee of not m~ore than. five members of the Industry and dele-
gate to any such committee anyr of the authority herein granted to
the said Code Authaority, including the carrying onl of atll commlunica-
tions a~nd conferences on behalf of the Code Authority with. thze Presi-
dent or his agents concerning the approval or amnendm~ent of this Code
or any of its provisions or any other matters relating thereto. Any
committee so appointed shall exercise the authority specifically dele-
gated to it by th2e Code Authority in the resolution appointing the
same. The Code Authority member or members appomted b~y the
Ad minist rat~or shall be an ex-officio member or members, without vote,
of any committee appointed hereunzder. The Code Authority shall
be responsible for all actions taken by its appointed committees.
SECTION 4. ]Each member of the Code Authority representing an.
InadustryT member shall be entitled to cast one v-ote on all matters
coming before the Code Authority for consideration but no manlu-
facturing members, and the selling agent or selling agents, distributor
or distributors, of such mnanufact.uring mlember's products shall inr
the a.ggregaate hav~e more than one vote. Reasonable notice of all
meetings shall be given to each member of the committee. At any
duly called meeting of the Code ~Authzority a tharee-fourths affirmative
vote of thie votinga members present at the meeting, either in person.
or by th2e members' alternates, shall be required to make effective
any action of the! Code Authority or for the adoption of any resolution
except as herein otherwise specifically provided. Any memer of
the Code Authority in his absence mzay~ be represented by an alternate
appointed by him who shall be a person actively connected with the
same company with whih the member making the appointment is
connected. A majority of the voting members of the Code Authority
shall constitute a quorum.
SECTION 5. Any interested party shal have the right of complaint
to the Code Authority or proper agency and a prompt hearing and
decision thereon. Any interested party shall have the right of appeal
to the Administrator, under such rules and regulations as he shal
prescribe, with respect to any decision, rule,.regulation, order, or
finding made byl the Code Authority.
SECTION 6. Alexpenses involved in administering the Code shall
be determined by the Code Authority, subject to disapproval by the
Administrator, and prorated among members of the Industry who
expressly assent to the Code. The proration by the Code Authority
of all such expenses shall be determined by the Code Authority on
the basis of the aggregate billings on sales for consumption ~inr the


United States and its possessions and territories for the preceding six
months of all industry products sold by the members of thae Industry.
Billings shall be based on the actual sales price but where board is
sold at thirty (30) dollars or more per thousand square feet surface
measurement, it shall be figured as of thirty (30) dollars and where
sold at sixteen (16) dollars or less per thousand square feet surface
measurement, it shall be figured as of sixteen (16) dollars.
SECTION 7. Nothing in this Code shall constitute thne members of
the Code Authority partners for any purpose. Nor shall any Imember
of the Code Authority be liable in any manner to anyone for any
act of any other member of the Code Authority. Nor shall any mnemaber
of the Code Authority exercising diligence in the conduct of his duties
hereunder be liable to anyone for any act or omission to act under
thais Code except for his own1 wilful misfeasance or nonl-feasance.
SECTION 8. If the Administrator shall determine that any action
of a Code Authority or any agency thereof may be unfair or unjust
or contrary to the public interest, the Administrator may require
that such, action be suspended to afford an opportunity for investiga-
tion of the merits of such action, and further consideration by such
Code Authority or agency pending final action, which shall not be
effective unless the Administrator approves or unless he shall fail
to disapprove after thirty (30) days' notice to him of intention to
proceed with such action. in its original or modified form.
SECT'ION 9. The Code Authority shall have power to propose
amendments to this Code which shall be effective as a part thereof
upon the approval of the President or his agents after such. notice and
hearing as he may prescribe.
SECTION 10. In order that the Code Authority shall at all times be
truly representattive of the industry and in other respects comply wvith
the provisions of the Act, the Administrator may prescribe such hear-
ings as he may deem proper; and thereafter if he shall find that the
Code Authority is not truly representative or does not in other
respects comply with the provisions of the Act, may require an appro-
priate modification in the method of selection of the Code Authority
SECTION 1. TPhere shall be no future amendment of the constitution
and by-laws of the Insuzlation Board Institute which will tend to make
the association not truly representative of the Industry and/or which
shall impose any inequitable restriction on membership.
SECTION 2. N~o provisions of this Code shall be interpreted or applied
in such manner as to promote or permit monopolies or monopolistic
practices; permit or encourage unfair competition; chimmate or oppress
small enlterprises or discriminate against them.
SECTION3. T'he Code Authority may investigate and inform the
President or the Administratorj on beafof the Industry, as to
importations of competitive articles into the United States and its
possessions and territories selling on a, price basis that undersells
similar articles of domestic manufacture, and the extent to wvhichn
such underselling shall render ineffective or seriously interfere with
the maintenance of this Code, and which may be ma~de the basis for
complaint to the President or the Administrator, on, behalf of t~he
Industry, under the provisions of the Act with respect thereto.


-SECTION 4. ~Noth~ing contained in this Code shall be construed as
prohibiting any member of the Industry from. exercisinga his lawful
patent rights or as requiring any member of the IndustryT to do any
act in conflict with the terms of any patent licensing or patent sales
SECTION 5. As required by; Section 10 (b) of Title I of the Aict, the
following provision is contained in thlis Code; Thre President ma~y,
fromrt time to time, cancel or modify any order, approval, license, rule
or regulation issued under said Title.
SECTION 6. Such of the provisions of this Code as are not required
to be included herein by the Act maay upon submission to the Code
Authority and approval of the President be modified or eliminated
as changes in circumstances or experience, may- indicate. It is con1-
templated that from time to time supplementary provisions to this
Code or additional Codes la~y be submitted for the approval of the
President, to prevent unfair com~petition in price and other unfair and
destructive competitivee practice and to effectuate the3 other purposes
and policies of Tit~le I of the Act consistent with the provisions hereof
and any such supplementary provisions or additional codes, after
submission to the Inrdustry and approval by the President, shall
become a part of this Code and effective as such.
SECTION 7. Violationl by any member of this Industry of any of
th provisions of this Code or of any approved amendment herreof is
an unfair method of competition.
SECTION 8. This Code and all of the provisions thereof shall cease
to be in effect on June 16, 1935, or sooner if the Pr~esident shall by
proclamation or the Congress shall by joint resolution declare th~at
the emergency recognizedbyTitle I of thre Act has ended.
SECTION 9. This Code sllbe inr effect beginning the second
Monday after its approval by the Preisident.
Approved Code No. 353.
Registry No. 1630-1-02.

SECTION 1. Definition.--The wcord membere" as used in this Exhibit "A"
shall be understood to include any member of the Industry and all officers, em-
fployees, agents, sales agencies and representatives of such maember. The word
'customer" as hereinafter used in these Regulations shall be understood to
include all purchasers and prospective purchasers of Industry products, the
officers, employees, agents, and representatives of such purchasers or prospective
purchasers and any other party in a position to materially influence sales of
Industry products.
S~ECTION 2. Price Di-scrimination.-"No member shall discriminate in price,
either directly or indirectly, between different purchasers of commodities, except
on account of differences in quantity, quality or grade of products sold or the
making of a reasonable differential in price charged to different classes of trade,
or the making of different prices in different markets according to usual distribu-
tion of such products prevailing in the trade or Industry; provided, however, that
nothing herein contained shall prevent the members of the Industry from selecting
their own customers. No member shall make any discrimination in price by,
(a) falsely classifying a customer; (b) by pooling shipments or permitting the
pooling of shipments on specified contracts destined to various purchasers for the
purpose of reducing prices below the published price for the quantity destined to
the individual purchaser; (c) by selling and/or billing any customer on more liberal
terms than those regularly published by such member; (d) by allowing over-riding
discounts payable at some future date; (e) by carrying notes for customers without
charging interest thereon at the rate of 6%~per annum.
SECTION 3. Rebates.--No member shall, directly or indirectly, make or permit
to be made to any customer any secret rebates; unearned refunds, credits, dis-
counts, commissions, bonuses, or other allowances; or any subsidies of anly
character whatsoever, whether in the form of money; services; excessive allow-
ances for alleged defective merchandise, shortages, adjustments of complaints,
or returned goods; extension of guarantees to customers against price advances or
price decline; issuance of credit allowances or refunds on inventory stocks of
customers because of price changes or otherwise; rendering fictitious invoices or
maaking shipments of merchandise in, quantities different than shown on the
invoices; permitting deductions on payment of invoices of items not covered by
the terms of sale; disposing of material at reduced prices which has been shipped
to a customer and not paid for; or inl any other form or manner whatsoever.
SECTION 4. Commercial Bribery.-NPio member of the Industry shall give,
permit to be given, or directly offer to give, anything of value for the purpose of
influencing or rewarding the action of any employee, agent, or representative
of another in relation to the business of the employer of such employee, the
principal of such agent or the represented party, without the knowledge of such
employer, principal or party. Commercial bribery provisions shall not be
construed to prohibit free and general distribution of articles commonly used for
advertising except so far as such articles are actually used for commercial bribery
as hereinabove defined.
SECTION 5. Dealings with, Customers.--No member shall knowingly utilize
trucking facilities (hire or employ truck) either wholly or partly owned by a cus-
tomer; rent or renew any lease for any part of the premises of a customer or rent
warehouse space from a customer except in the case of a public warehouse in
which such customer may have an interest but in which his place of business is
nlot located. No member shall warehouse either in. his factory, his ownv or hired
warehouse for more thnan, thirty (30) days, goods which have been. sold to any
customer, or paid for by any customer. No member shall make any purchases of
any materials other than industry products from customers at prices in excess of
prevailing open market prices. No member shall, directly or directly, give or
permit to be given to any customer money, donations of cash, or other thiings of
value as inducemnent to cause any such customer to purchase or contract to pur-
chase industry products from such member or to influence any such customer to
(3 44)


refrain froma dealing or contracting to deal wr~ith any competitor of such maember;
except usual sales help, members' technical assistance, conventional samples, or
material for experimental (or test purposes. 1\lembers shal not furnish material
at other than published prices or labor for display purposes to cover any part of
buildings whether such buildings are owned by customers or not. No member
shall assume any portion. of the expenses incurred by a customer in the operation
of such customer's business, except ini the sale and fabrication of hardboard,
quarterboard and panel board for industrial uses but nothing herein shall prevent
at member from making anl adj ust ment on a bona fide claim on account of diefec tive
material. No member shall bear or share in the cost of customer's space atdver-
tising; pay for advertising in any customer's house organ or catalog, or in indi-
vidual customer's publication; assume any credit responsibility for the accounts
of a customer or guarantee any such account. N Eo member shall for the purpose
of influencing business encourage or permit lavish entertainment, permit bets or
any form~ of gambling, make any loans, make! sales of stock or other securities at
less t~hanl the market value thereof, or permit the splitting or otherwise sharing of
salesmen's commissions or compensation. No member will assume the expense
of painting signs on customer's place of business advertising manufacturer's
products except upon presentation of certified invoice from sign painter, in which
event member is permitted to pay actual cost for such wNork. The term customer
as used in, this section shall mean an individual or corporation sold as a dealer,
wholesaler or roo~fi~ng contractor.
S~ECTION 6. Inducing Sales by Other Produucts.-No member shall sell or offer
for sale as inducement for the purchase of any industry products any article or
commodity, whether an industry product or not, at prices belowv those generally
quoted by' the member for that article or commodity.
SECTIoN 7. Defamation of Competitors.--No member shall defame or disparage
a competitor, directly or indirectly, by words or acts which misrepresent its
business integrity, its ability to perform its contracts, its credit standing, its
policies, the grade, quality or quantity of its goods, or th~e origin. of its products.
SECTION 8. Misrepresentation.-No-N member shall sell or offer for sale any
industry product for the purpose or with the effect of deceiving customers as to
the quantity, quality, weight, size or grade of such products, or country of origin.
SECTION Q. Fal86 Brandinng.-No member shall improperly mark, brand or
label industry products, or makie any misrepresentation in, connection with the
sale of atny such products for the purpose or with the effect of miisleading or
deceiving purchasers with respect to the quantity, quality or grade, or the country
of origin.
SECTION 10. Stan~dard Forms of Quotations and Contracts.--All quotations shall
be made in accordance with the terms and conditions set forth in any standard
forms of quotations adopted at any time by the Code Authority by unanimous
vote aind approved byr the Admoinistrator, and all contracts shall be made in
accordance with the terms and conditions set forth in any standard forms of conr-
tract so adopted and approved, and no member shall depart from, said standard terms
and conditions in the making of any quotation or contract in, any transaction.
SECTION 11. COn~ignm~ents.--- N o member of the Industry shall ship industry
products on consignment, except under circumstances to be defined by the Code
Authority, subject to the approval of the Administrator, where peculiar circumo-
atanlces of the Industry mlay require the practice. Distress stocks no~w on con-
signmuent ar not subject to thie next to the last clause of Section 3 of this Exrhibit.,
This Section 11 shall not apply to hardboard, quarter board and panel board for
industrial uses.
SECTION 12Z. Lump Sum Contracts.--No member shall accept any order for
contracts of sale at a, lump sum where the contract does not spcify the exact
quantity, quality and unit price of the product purchased.
SECTION 13. Divlersions.--No member shall divert shipments in transit for th~e
purpose and with the intent of allowing concessions or redulcing prices.
SECTION 14. Outlstanding Obligations.-]No member shall sell any industry
products at a price or on terms or conditions other than stated in th prices,
terms and conditions of sale published and filed by such member. The following
contracts however may be protected at the price at which the contract wlas taken
but products sold unde such protection shall bet applied only on the contract for
which such protection was given:
(a) All bona, fide contracts for the sale of inldustry products filed w~ith the Codei
Authority or its designated agents at the time of the first filing of lists or scheules
of prices and terms or conditions of sale as requird by Article VII, Section 1 of
this Code;


(b) All existing specific job contracts for roof insulation, industrial contracts,
and government job contracts, for the sale of industry products at less than the
member's filed price, provided the contracts, or such details with respect thereto
as may be requested by the Code Authority, are filed with the Code Authority or
its designated agent within ten (10) days after the effective date of this Code;
(c) After the effective date of this Code, all specific roof job contracts closed on
quotations outstanding prior to the effective date of any price increase filed by
the member protecting the same and accepted within. thirty (30) days (except that
government jobs may be accepted within sixty (60) days) after such date; and
industrial contracts for furnishing industry products after the effective date of
anly price increase filed by the member pi~otecting the same but not extending
beyond the date July 1, 1934, or such other date as may be designated, from time
to time, by the Code Authority; provided, however, that in all such cases, the
contract conforms to the prices, terms and conditions of sale filed by such member
and current at the time the quotation or contract was made; and provided fur-
ther, that all specific roof job contracts so protected, or such details thereof as
may be requested by the Code Authority, are filed wcith. said Code Authority or
its designated agent w;Pithin ten. days after thie specified period within which such
contracts may be accepted, and that all such industrial contracts or details with
respect thereto are so filed within ten days after the effective date of any such
price mecrease.

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