N NATIONAL RE COV ERY ADMIN ISTRATION
PROPOSE D C ODE O F FAI R C OMPE TITI ON
The Code for the Lava 1Manufacturing Industry
in its present form merely reflects the proposal of the aliove-mentioned
industry, and none of the provisions boatained therein are
to be regarded as having received the approval of
the National Recovery Administrartion
as applying to this industry
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1938
For sale by the Superintendent of Documents, Washington, D.C. Price 5 cents
AS SUBMITTED ON AUGUST 30, 1933
WE Do OUR PART
NATIONAL ASSOCIATION OF LAVA MANUFACTURERS
AUGUST 30, 1933.
LETTER OF TRANSMITTAL FROMI NATIONAL ASSOCIATION OF LAVA
To ADMIINISTRATOR, NATIONAL INDUSTRIAL RECOVERY Act.
The production of articles from what is known to the trade as Lava had its
origin, as regards the United States, in thle year 1868. Thiis w~as the period of
the development of illuminating gas, and it. was found desirable that the flame
of the gas jet should be regulated by and formed into shape by a noncarbonizing
burner tip of some noncorrosive material resistant to heat. It was found that
certain kinds of Steatite, which is a soft mineral, classified as silicate of magnesia,
could be cut and machined into variouis sizes and forms of gas tips, then coming
into use. These tips w~ere known as "'lava"' gas tips, perhaps because after the
tips had been machined and formed in a soft. state the material w~as hardened by
exposure to heat, at a temperature of approximately 2,000 degrees Fahrenheit.
The finished product then became very hard and durable, and was eminently
satisfactory for this purpose.
With the introduction of the use of electricity in its various forms, a company
engaged in t~he manufacture of L~ava gas tips found by experiment that the same
material which wras being used in t~he manufacture of gas tips wans capable of
being used as an electrical insulator, in insulating various metal parts of electrical
Lava as an insulating material must not be confused with or associated with
other forms of insullating materials. Our product is not suitable for the manu-
facture of such forms of insulators as knob insulators for telephone and telegraph
wires or high-tension electric wires; neither is it suitable for cleats and tubes and
various other forms of wiring insulators, which are manufactured by entirely
different processes, and entirely different. and cheaper materials, such as glass,
porcelain, bakelite, fibre boards, hard rubber, asbestos, mica, and various other
forms of insulating materials, none of which havep anyt)hing w~hatever in commoni
wlith our product.
The use of Lava as an insulating material is restricted t~o small parts which
are used in the interior construction of certain forms of electrical appliances.
The production of these factories is not of a character that permits the manu-
facture of standard articles. The factories operate entirely on orders for special
parts, no tw~o of which are exactly alike, and all of which are made only after
receipt of orders for goods exclusively to fit. each customer's design.
1929 conditions cannot be reproduced inl 1933 in this particular industry for
the reason that the bulk; of 1929 production w\as for the then booming radio
i nd ust ry. The saturation point in t he sale of radio~ sets has not only. been passed
but even before this occurred t~he material Lavan had been virtually abandoned for
technical reasons and no new field of comparable volume has been dliscovered.
The Lava Industry does not serve the public promiscuously. It makes no
staple or standardized goods which can be carried in stock. It is therefore help-
less as to initiating work for its emlployees, but, on the other hand, its facilities
and hours must be flexible enough to serve sw~iftly~ on receipt. of actual orders
which are almost invariably urgent once the customer has settled on design and
At suitable opport~unit.y the signers w~ill ask special consideration of a reduced
wage rate for apprentices.
This code is not designed to promote monopoly, or to eliminate or oppress
small enterprises, and will not operate tor discriminate against themi, and will
tend to effectuate the policy of the title of the National Industrial Recovery Act.
THE NATIONAL A~SSOCIATION OF LAVA MANUFACTURERS,
By C. S.j~ STEWARD, Presidentl.
Digitized bjy the Iniernet Archlve
In 2011 wiih iuniding from
University of Florida. George A. Smathers Libraries waiih ;Luppori from LYRASIS and the Sloan Foundaison
CODE OF FAIR COMPETITION SUBMITTED BY THE NA-
TIONAL ASSOCIATION OF LAVA MANUFACTURERS
This code is submitted for and on behalf of manufacturers of La~va
products constituting one hundred percent of the Lava Industry at
present existing, hereinafter referredt to as t~he Industry, and who are
engaged in the mannufacture and sale of articles which are known by t~he
trade name Lava."
As used herein the term Lava Industry is defined to mean the manu-
facture, production, And sale in t~he United Sta tes of any or all articles
the principal ingredien t. of whichi~ is (a)> t~ale, otherwise known as silicate
of magnesia; (b) silicate of alumninA, otherwise known as pyvrophyllite;
(c) or soapstone, for use as an insulating material in the electrical or
chemiical trades, and for use as burner tips for gas, or in burning of oil.
Every article made and sold by the industry for thle purposes enu-
merated in this section are defined as Lava for the puproses of this
Code, regardless of whether such article: is kilned or is sold in an
unkiined or soft sta~te.
SECTION III--LABOR Paov'ISIONS
A. As requiredl by Section 7 (a) of Title I of the National Industrial
Recovery Act t~he following provisions are conditions of t~he code:
(1) Employees shall have the right t~o organize and bargain col-
lectively through representnat.ives of their own choosing, and shall be
free froml t~he interference, restraint, or coercion of employers of labor,
or their agents, in the designation of sulch representatives or in self-
organization or in other concerted activitie~s for the purpose of col-
lective bargaining or other mutual a-id or protection; (2) that no
employee and no one seeking emplo'ment shall be required as a con-
dit.ion of emlploymnent to join any company union or t~o refrain from
joinung, organizing, or' aSSisting~ a labor organization of hus ow~n choos-
ing; and (3:) that emiployecrs shall comply with the mnaximnum hours of
labor, mninimumn rates of pay, and other conIditions of employmentt,
approved or prescribed by the President.
It is urnderst~ood t.hatt, the provisions of subsections (1), (2), and (3)
of Section I of this Article shall niot impair in any particular the rights
of employees to bargain, individually or collectively, as may be miu-
tually satisfactory to theml prov-ided they shall otherwise comply with
the provisions of this code.
Nothing in the codfe shall be deemed to prevent the selection, reten-
tion, and advancement. of employees on the basis of their individual
B. Prohibition of Cihild Labor.--On and after t.he effective date
employers in the Lava industry shall not employ any nunor under the
age of (16) sixteen years.
C. Wa'cge Rates.--The minimum wage for labor shall be not less
than 301 per hour in all territory south of the Northern Boundary of
Virginia, WVest. Virginia, K~entucky, and the Southiern Boundary of
M~issouri and Kansas, and in all other territory t~he numnmum wage
rate shall be not less than 37 per hour, except t~ha t. female labor may
be paid a mininmumi of not less than 80%~ of thie minimum paid for
D. Hours o~f TTorks.--The hours of Inbor inl thlis industry shall not
exceed 8 hours in a~ny one day and not exceed a total of 410 hours in
any one week, provided, however, that these limitations shall not
apply in cases where seasonal or peak demands, unusual and tem-
porary, shall require the operation of the industry a greater number of
hourS than thle maximum hours specified hzerein.
In case the foregoing suspension of the maximum hours is used by
any plant in the industry, and in order to effectuate in all respects the
declared policy of th Na.tionni Industrial Recoveryr Act, each
employer shall prepare and file with the Executive Committee,
through t~he Secretaryr-Treazsurer of the National Association of Lava
Manufacturers, on or before the 10tht of each month, a statement of
the additional hours over the maximum herein provided, and the
number of workmen employed in such seasonal work for t~he preceding
Should the Executive Committee decide that. any reports filed by
a member of the industry indicate a failure to comply with the pro-
visions of this code, the commifttee shall present the matter to the
Administrat~or of the ;Nat~ionalt Indust~riall `Re!cov\ery Act, and ask for
such action as shall be consistent with full co~mplialnce wit.h the policy
of thze Act.
These me xsimum hours shall not applyT to tool makers, repair mlen,
kin~tenders, watchmen or machine adjusters, or t~o foremen, super-
intendents, mlanagers,, officials, or others compensated on a regular
salary basis; provided, however, that such regular salaryp shall not be
less than $100 per month.
SECTION IV-Pnovisions REGARDING TRADE PRACTICES
1. Unfanir Met~clhodls of Comnpetition~.-The paying of lower wages
than the minimum waiges herein prescribed, or the exaction of the
hours of labor in excess of the mn ximumn herein prescribed, shall be
deemed as unfair miet.hods of competition.
2. Co~mmnerciazl Brbery.~--To give or permit to be givecn t~o the agents,
employees, or represent tives of customers! or the agents, employees,
or representatives of comnpetitors or prospective cu~stomners, money or
anything of value as inducement to cause their e~mployers or princi-
pals to purchase or contract to purchase industry? products, or to
infinence such emlployers or prinlcipanls to refrafin fl~rom dealing or
contracting to deal writhi competitors, shall be deemned. a n un fa ir method
3. Rebates, Surbsidies, etc.-Tlo make allowances, surch as bonuses,
rehates, refunds, credits, uineurned discounts, or subsidies of any kind,
w-hether in the form of money, service, advertising, or otherwise, for
the purpose of securing business, shall be deemed an unfair method
4. Inducing Brecach of Contr~act.--To willfully interfere with any
existing contract between any other manufacturer and a wholesaler,
retailer, consumer, or other party, involving or relating t~o the sale of
industry products, such interference being for t~he purpose or with the
effect of dissipating, destroying, or appropriating, in whole or in part,
the business represented by such contracts, shall be deemed an unfair
method of competition.
5. Defamation of Comzpetitor~s.--To defame or disparage a com-
petitor, directly or indirectly, by words or acts which untruthfully
call in question his business mntegrity, his ability to perform his
contracts, his credit standing, or the quality of his product, shall be
deemed an unfair method of competition.
6. M~is~representation.-To sell or offer for sale any industry
product for the purpose of or with the effect of deceiving customers or
prospective customers as to the quantity, quality, or grade of such
product, shall be deemed an unfair met~hodl of competition.
7. Consigned Goodls.--The shipping of Lava products on consign-
ment shall be deemed an unfair method of competition.
SECTION VT-DESCRIPTION OF INDUSTRY SELF-GOVERNMZENT AGENCY
AND ITS REQUIREMlENTS
The self-governing agency of the industryv shall be the Executive
Committee of the National Association of La.va Maunufacturers.
Any member of the inldustry shall register any comnplaint as to the
violation of any of the provisions of this code with t~he Secretary-
Treasurer of the National Association of Lava M~anufacturers, who is
also Secreta~ry of the Executive Commnit tee. Upon the filing of a
complaint, the Secretary of the Executive Commnit tee w5ill immediately
notifyr the other members of the Executive Committee, who will in-
vestigate such complaint and advise the comnplainant, and the defend-
ant of the decision arrived at respecting t~he complaint..
Should the decision of the Executive Committee be unacceptable to
either party, the Executive Commnittee shall then submit the matter
in question to the Administrator for on official decision as to the con-
tinuance or discontinuance of the alleged violation of the Act.
Additional Plant Cacpacity.--In vie~v of the excess of manufacturing
capacity over the demand for Lava products even in normal times,
and the demoralizing effect of this condition on the business an1d all
engaged therein, including labor, it shall be an unfair method of comipe-
tition for atny manufacturer during the life of this code to increase t~he
aggregate productive capacity of any Lava~ plant. (except process im-
provements through existing equipmentt:, or for any person, firm or
corporation to construct any additional Lava plants or kilns, except
or replacement of existing capacity.
Nothing in this code shall be construed to apply to a product of
the American Lava Corporation, known as Alsimag, and containing
in its composition substantial proportions of other ingredients than
those enumerated herein.
Sales Below~ Cos1.--To sell or offer t~o sell Lava goods at prices
below the cost of production is a violation of this code.
UNIVEREITY OF FLORIDA V
4 3 1262 08850 5200
For the purposes of this code, cost is defined as the total expense
borne by the manufacturer in producing and selling Lava products.
In addition t~o total manufacturing costs, including depreciation,
packages, raw materials and transportation thereof, it shall also
include adequate allowances for sales, distribution and management
costs, including promotion, research, advertising, obsolescence, trade- ~
association maintenance, interest charges, all contingencies, neces-
sary reserves, a fair return on the ca pi tal employed in the business, :
etc., such a.s are now assumed by the majority of t~he industry in the
conduct, of its business and is in accordance wlith this Code of Fair
Competition and with the objects of the Act..:
SECTION ~VIT--ATANDATORY PROVISIONS OF SECTION 10 (b) or Act
The. President may from time to timae cancel or modify any order,
approval, license, rule, or regulation issued under this title; and each
agreement, code of fair competition, or license approved, prescribed,
or issued under this title shall contain an express provision to that i
SECTION VII---Paovision von 100DIFICATION
Application for a, change in the provisions of this code may be made
at any time by any member of the industry, such proposed change to
be~ submitted to the Ex~ecutlive Commi t~tee of t~he Na tional Associat~ion
of Lava Mannufactur~ers, through the Secretary-Treasurer of the
The Executiv~e Committee small submit. to all members of the
industry a copy of the proposed modlification alnd it shall require the i
affirmative v;ote of three fourths of the firms in the industry to approve
WhS~en a proposed modification h~as received the foregoing approval, i;
it wil be submitted to th Admiinistrator for approval by the Presi-
dent., and when so ap proved shall1 become a part of this code.
Pu~rpose.-T-his code is not. designed to promote monopoly, or to
eliminate or oppress small enterprises, and will not operate to dis-
criminate against t~heml, ad w~ill tend to effectuate the policy of the
title of the National Industrial Recovery Act.
SECTION VIIT--EFFECTIVE I)ATE
This code shall become effect~ivefor the industry immediately after
it has been approved- by the President of the Urnited States.
THE NATIONAL ASSOCIATION OF LAVA RfANUFACTURERS,
ByV C. S. 'STE WARD,
P. J. K(RUESI,