NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
NATURAL CLEFT STONE
AS APPROVED ON SEPTEMBER 11, 1934
~i.. 1I' ;;_sr?!"c 4
GOVERNMENT PRINTING OFFICE
sale by the Superintendent of Documents, Washington, D.C Price 5 cents
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
Approved Code No. 519
Registry No. 1039-12
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 Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
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.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Cionimr.:e Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 110i3 South Broadway.
Louisville, Ky.: 408 Federal Building-.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Builirng.
New Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
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 Customlhouse.
Seattle, Wash.: 809 Federal Office Building.
Approved Code No. 519
CODE OF FAIR COMPETITION
NATURAL CLEFT STONE INDUSTRY
As Approved on September 11, 1934
APPROVING CODE OF FAIR COM PETITION FOR THE NATURAL CLErT STONE
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Natural Cleft Stone Industry, and hear-
ings having been duly held thereon and the annexed report on said
Code, containing findings with respect thereto, having been made and
directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said an-
nexed report and do find that said Code complies in all respects with
the pertinent provisions and will promote the policy and purposes 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 Code Authority shall, not later than ninety (90) days after the
date of this Order, submit to the Administrator further evidence that
the averaging of hours as provided in Section 1 of Article III is
necessary in this Industry.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
C. E. ADAMS,
WAsmH GTON, D.C.,
September 11, 1934.
85405 --1181-41--34 (147)
REPORT TO THE PRESIDENT
The White House.
SnI: This is a report on the Code of Fair Competition for the
Natural Cleft Stone Industry, whose products are commonly known
as flagstone. A hearing on this Code was conducted in Washington,
D.C. on Mnarch 17, 1934, in accordance with the provisions of the
National Industrial Recovery Act.
PROVISIONS AS TO HOURS AND WAGES
The work week is limited to forty hours, averaged over periods of
three months, with a maximum of forty-eight hours in any one week,
six days in any one week and eight hours in any twenty-four hour
period. Exception is made for employees engaged on emergency
maintenance and repair work, but they must be paid one and one-
half times the hourly rate for all overtime. Travelling salesmen
are also excepted, and managers and executives who receive regularly
not less than thirty-five dollars per week. The work week for watch-
men is extended to fifty-six hours.
The minimum wage rate is forty cents per hour except in places
of less than twenty-five hundred population, where it is set at thirty
cents per hour for the Southeastern, and thirty-eight cents per hour
for the Northeastern region.
CHILD L. BOR
Child labor is prohibited, the minimum age for all employees
being set at eighteen year..
E(ONO[IC' EFFECT OF THE CODI
Like all other construction materials the sale of flagigtone has been
gr'atily curtailed. Ac:riiate statistics are not available, but it is esti-
mated that the value of the products has fallen from a million dollars
in 192M to one quriirter that amount in 19l :; and employniunt has
been cut from slightly over four hundred to a little undlir half that
amount in the same period. Not much increase in employment. can
be expected until a revival of construction occur0.s. The proposed
wa\';~e. however, represent a marked increase and will restore the
1929 level of wages.
An appreciable part of the volume is produced by two or three
man iquarries or pits, working on shares. Much of this stone. is sold
for whatever it will bring, corresponding to very low wage rates.
It is hoped that the ti ade practice provisions of the Code will help
to eli iinate this situation.
The Assistant Deputy Administrator in his final report to me on
said Code having found as herein set forth and on the Ibai.- of all
the proceedings in this matter;
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of inter-tate and foreign
commerce which tend to diminish the amniont thereof and will pro-
vide for the general welfare by promoting the organization of in-
dustry for the purpose of cooperative action among trade groups, by
inducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision, by eliminat-
ing unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity of industries, by avoid-
ing undue restriction of production (except as may be temporarily
required), by increasing the consumption of industrial and agricul-
tural products through increasing purchasing power, by reducing and
relieving unemployment, by improving standards of labor, and by
otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000
employees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the per-
tinent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant associa-
tion is an industrial association truly representative of the afore-
said Industry; 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) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(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, this Code has been approved.
HuGI S. JOHNSON,
SEPTEMBER 11, 1934.
CODE OF FAIR COMPETITION FOR THE NATURAL
CLEFT STONE INDUSTRY
To effectuate the policies of Title I of the National Industrial Re-
covery Act, this Code is established as a Code of Fair Competition
for the Natural Cleft Stone Industry and its provisions shall be the
standards of fair competition for such Industry and be binding upon
every member thereof.
Wherever used in this Code or any supplement appertaining
thereto, the terms enumerated in this Article shall have the meanings
herein defined, unless the context shall otherwise clearly indicate.
SECTION 1. The term Cleft Stone Industry or "Industry" as
used herein includes the quarrying of and/or the assembling of cleft
stone and the original sale thereof by a producer of cleft stone to a
conmiiCer or to an :i.s-elinbler directly or indirectly, either by himself
or his agInt, which includes without limitation any person or cor-
poration occupying a subsidiary or controlling relationship or one
of common, mutual or joint ownership or control to a Member of
Industry, and/or the sale of assembled cleft stone by an assembler
directly or indirectly, either by himself or his agent, which includes
without limitation any peri'on or corporation occupying a subsidiary
or controlling relation-hip or one of common, mutual or joint owner-
ship or control to a Member of Industry.
For the purposes of this Code Stone Yards whose principal
buiinet-i has to do with the as-mclll ing, pror 'esoing, fabricating and
sale of cleft stone, shall be included in the Cleft Stone Industry.
SI-CTI.iN 2. The term Mteml r of Indulstry as used herein in-
clude-, but without limitation, any individual, partnership, na -scia-
tion, corporation or other form of enterprise elniga,''l in the Indlus-
try, either as an employer or on his or its own behalf.
SECTION 3. The term "Natural Cleft Stone" (commonly c;elled
"flagstone ") as used herein means any rock except slate or granite
having iiatllmal cleavage and used for paving, curbing, building or
other construction pirpii".-
SECTION 4. The term Employee means and includes ainy' ne en-
gaged in the Indiil-try in any capacity receiving compensation for
his -ervices, irrespective of the nature or method of payment of such
compensation, except a Member of Industry.
SEi-cIrn 5. The term Employer means and inchlde.s anyone by
whom any such employee is employed or coripenl.ated.
SECTION 6. The terms "President ", "Act ", and "Adminuisfrator "
as used herein rilmeln respectively the President of the United Statesz
Title I of the National Industrial Recovery Act, and the Admin-
istrator for Industrial Recovery.
SECTION 7. The term Southeastern Region" shall include the
States of Alabama, Arkansas, Florida, Georgia, Kentucky, Louisi-
ana, Mississippi, North Carolina, South Carolina, Tennessee and
SECTION 8. The term "Northeastern Region" shall in-lllde that
part of the United States north of the Southeastern Region and
east of the Mississippi River.
SECTION 9. The term "Districts shall mean a section of a region
in which one or more operating quarries are located as established by
the Code Authority.
ARTICLE III-Horr s
SECTION 1. Max;:inh Hours.-No employee shall be permitted to
work in excess of forty (40) hours per week, averaged over three
(3) month periods (such periods to be the regular quarterly periods
of each year), or in excess of eight (8) hours in any twenty-four
(24) hour period, or in excess of forty-eight. (48) hours in any one
(1) week, or in excess of six (6) days in any seven (7) day period.'
SECTION 2. Eu'reptions as to Hours.-The maximum provisions as
specified in Section 1 of this Article III, l1hall not apply to the
(a) Employees engaged in emergency maintenance or emergency
repair work, involving breakdown or protection of life or property;
provided, that in such special cases not less than one and one-half
(11,) times the normal wage rate for any employee so employedl
shall be paid for all hours worked in excess of eight (8) hours per
day or forty-eight (48) hours per week.
(b) Persons engaged in a managerial, executive or supervisory
capacities or in technical work who receive not less than Thirty-five
Dollars ($35.00) per week; and to outside sales or sales service
(c) Watchmen, who shall not be permitted to work in excess of
fifty-six (56) hours in any one (1) week, or six (6) days in any
seven (7) day period.
SECTION 3. Employment by Screral Employers.-No employer
shall knowingly permit any employee to work for any time which,
when totalled with that already performed with another employer
or employers in this Industry or other trades or industries, exceeds
the maximum permitted herein.
SECTION 4. Any Member of Industry performing any work in the
Industry, except in an executive, supervisory, managerial or pro-
fessional capacity, shall conform to the maximum hour provisions in
SECTION 1. Minimum Wages.-No employee shall be paid in.any
pay period less than at the rate of 400 per hour, except that in towns
and localities of less than 2,500 population they shall not be paid
at less than the rate of 38 per hour in the Northeastern Region nor
less than at the rate of 30 per hour in the Southeastern Region.
SSee paragraph 2 of order approving this Code.
S'r-TION 2. Pi,." iwrF Co- ompensa tion-/i;.irrwm. WaPges.-This
Article e-tabli.hel- a minimum rate of pay which shall apply, irre-
spective of whether an employee is actually compensated on a time
rat,-. piece-work, or other basis.
S;ECTION 3. WTViess Above the Mininum.-Employers shall not re-
duce the rates of wnrs for employees whose rates are in excess of the
minimum rate if \vwai-s (notwithstanding that the number of hours
worked in such employ'vmriint may be hereby decreased). Equitable
adjustments of wages with rie-pect to the minimum shall be made
within thirtv (30) days after the effective date of this Code by each
employer wlho has not l!erutofore made such adjustments under the
Natiiu-,al Industrial Recovery Act. In no event shall hourly rates be
reduced in making such adjustments. Within sixty (60) days after
the effective date of this Code each Member of Industry shall make a
report of snrIh adjutlllent, whether made prior to or subsequent to
the date of approval of this Code, to the Code Authority.
SEC(TION 4. Payi, n.t of Wages.-Each employer shall make pay-
ment of all wages in lawful currency, or by negotiable check there-
for, payable on demand. These wages shall be exempt. from any
payments for pensions, insurance or sick benefits other than those
voluntarily pu id by the wage earner or required by law. Pay periods
for wages shall be at no greater interval than every semimonth, and
salaries at no greater ilterval than every month. No employer shall
withhold w;iag.- except .as otherwise provided by law.
SECTION 5. Ha:i',icapped Pe 'sons.-A person whose earning capac-
ity is limited because of age, physical or mental handicap, or other
infirmiity, may be employed on light work at a wage below the mini-
mum etablishled by this Code if the employer obtains from the State
Authority, de.,ignated by the United States Department of Labor, a
certificate authorizing such person's employment at such wages and
for such hours as shall be stated in the certificate. Such authority
shall be guided by the instructions of the United States Department
of Labor in is- ing certificates to such persons. Each employer shall
file with the Code Authority a list of all such persons employed by
him, shiv.niw the -;,ges paid to and the maximum hours of work
for such employee.
Art-.CLE V-GENERAL LABOR PROVISIONS
SrnTIoN 1. Child Labor.-No person under eighteen (18) years of
ngo shall be employed in the (Idustry in any capacity. In any
State an employt.er shall be d&iemed to have com:,plied with this pro-
vision as to age if he .-hall have on file a certificate or permit, duly
signrtd by the Authority in -uch State empowered to issue employ-
inieit or age certificates or permits showing that the employee is of
the required r',.
SI:- 'IN, 2. P iovtisions of the Act.-(a) Employees shall have the
straint, or .~.-r'iron of ..*i ployers of labor, or their agents, in the
designation of -.,1hl representative or in self-organization or in
other concerted activities for the purpose of collective bargaining
or other nimutfi:il aid or )protection.
(b) No employee and no bfie seeking employment shall be re-
quired as a condition of employment to join any company union or
to refrain from joining, organizing, or a.msi.ting a labor organization
of his own choosing, and
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other coni,-1ition s of employment approved
or prescribed by the Pres.ident.
SECTION 3. Ret'la.-isifcafion of Empioyees.-No employer shall re-
classify employees or duties of occupations performed or engage in
any other subterfuge for the purpose of defeating the provisions of
the Act or of this Code.
SECTION 4. Standards for Safety and Health.-Every employer
shall provide for the safety and health of his employees at the place
and during the hours of their employment. Standards for safety
and health shall be submitted by the Code Authority to the Admin-
istrator for approval within three (3) months after the effective
date of this Code.
SECiioN 5. State Laws.-No provision in this Code shall supersede
any State or Federal law which impol -s on employers more stringent
requirements 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.
SECTON 6. Postif'.-All employers shall post and keep posted
complete copies of this Code and all amendments thereto in con-
spicuous places accessible to employees, and shall comply with all
rules and regulations relative to posting which may from time to
time be prescribed by the Administrator.
SECTIONr 7. Dismissal for Complaint.-No employer shall dismiss
or demote any employee for making a complaint or giving evidence
with respect to an alleged violation of this Code.
ARTICLE VI-OP,(;ANIZATIrN, POWERS, AND DUTIES OF THE CODE
SECTION 1. Organiiationt and Cornstitution.-(a) A Code Authority
is hereby established consisting of four (4) voting members, to be
selected in the following manner:
One member shall be the President. of the Natural Cleft Stone
Association from time to time in office:
One member shall be chosen by said Association from each of the
regions of the Industry, and one member shall be elected by and
from non-members of said Association. The selection of all mem-
bers to the Code Authority shall be by a fair and equitable method
of election to be approved by the Administrator. In the event that
the selection of the Association's non-member representative on the
Code Authority is not made within thirty (30) days after the effec-
tive date of this Code such mllember may be selected by the Admin-
istrator. Any vacancy in the Industry membership of the Code
Authority shall be filled for the unexpired term in the same manner
as the retiring member was chosen.
(b) In each region there shall be selected such regional and
district committees as may be required to assist the Code Authority
in the administration of the Code, under such regulations as the
Code Authority may provide, subject to the approval of the
SECTION 2. In addition to the membership as above provided, there
may be three (3) members, without vote and without compensation
from the Industry, to be known as Administration members, to be
appointed by the Administrator to serve for such terms as he may
SECTION 3. Each trade or industrial association directly or indi-
rectly participating in the selection or activities of the Code Ad-
thority shall, (1) impose no inequitable restrictions on membership
and (2) submit to the Administrator true copies of its articles of
association, by-laws, rules and regulations and any amendments
when made thereto, together with such other information as to
membership, organization and activities as the Administrator may
deem necessary to effectuate the purposes of the Act.
SECTION 4. In order that the Code Authority shall at all times bb
truly representative of the Industry and in other respects comply
with the provisions of the Act, the Administrator may prescribe
such hearings as he may deem proper; and thereafter if he shall find
that the Code Authority is not truly representative or does not in
other respects comply with the provisions of the Act, may require
an appropriate modification in the method of selection of such Code
SECTION 5. Nothing contained in this Code shall constitute the
members of the Code Authority partners for any purpose. Nor
shall any member of the Code Authority be liable in any manner
to anyone for any act of any other member, officer, agent or em-
ployee of the Code Authority. Nor shall any member of the Code
Authority, exercising reasonable diligence in the conduct of his
duties hereunder, be liable to anyone for any action or omission to
act under this Code, except for his own wilful malfeasance or
SECTION 6. If the Administrator shall at any time determine
that any action of a Code Authority or any agency thereof may
be unfair or unjust or contrary to the public interest, the Admin-
istrator may require that such action be suspended to afford an op-
portunity for investigation of the merits of such action and further
consideration by such Code Authority or agency pending final ac-
tion 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 modi-
SECTION 7. Powers and Duties.-Subject to such rules and regu-
lations as may be issued by the Administrator, and to the extent per-
mitted by the Act, the Code Authority shall have the following
further powers and duties:
(a) To insure the execution of the provisions of this Code and
to provide for the compliance of the Industry with the provisions of
(b) To adopt By-Laws, Rules and Regulations for its procedure
and for the administration of this Code. The Code Authority shall
promptly furnish to the Administrator for his approval true copies
of the By-Laws, Rules and Regulations adopted pursuant to this
(c) To obtain from Members of the Industry such statistical in-
formation and reports as are required for the administration of this
Code and to provide for submission by members of such l tatistical
information and reports as the Adr ministrat or may deem nece.airy
for the purposes recited in Section 3 (a) of the Act, which informa-
tion and reports shall be submitted by members to such Fede 1.al
and/or State agencies as the Administrator may designate; pro-
vided, that nothing in this Coilc shall relieve any Meilmbetr of the
Industry of any existing obligations. to furnish reports to any gov-
ermnent agency. No individual reports .-ulmtitted to the Admiiini,-
trator and/or such government agencies as the Administrator may
designate, shall be disclosed to any other Memnber of the Indlutry
or any other party except such government agencies as may be di
erected by the Administrator.
(d) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Au-
thority of its duties or responsibilities under this Code and that
such trade associations and agencies shall at all times be subject
to and comply with the provi-sion.s hereof.
(e) To make recommendations to the Administrator for the co-
ordination of the administration of this Code with such other C,,dcs
if any, as may be related to or affect MIembers of the Industry.
SECTION 8. It being found necessary to support t the administration
of this Code in order to maintain the standards of fair competition
established by this Code and to effectuate the policy of the Act. the
Code Authority is authorized:
(a) To incur such reasonable obligation.- a.- nae necessary and
proper fr the foregoing purposes and to inmet such obligations out
of funds which may be raised as hereinafter provided and which shall
be held in trust for the purposes of this Code;
(b) To submit to the Administrator for his approval, subject to
such notice and opportunity to be heard as he may deem necessary,
(1) an itemlized budget of its -t;imiatedl expenses for the foregoing
purposes, and (2) an equitable basis upon whi':h the funds necessary
to support such budget shall be contributed by Mtnibers of the
(c) After such budget and basis of contribution have been ap-
proved by the Administrator, to determmine and secure equitable con-
tribution as above set forth by all such Meibcers of the Industry, and
to that end, if necessary, to institute le;ial proceedings therefore in its
SECTION 9. Each M[ember of the Industry shall pay his or its
equitable contribution to the expenses of the maintenance of the Code
Authority, determined as hereinabove provided, and subject to rules
and regulations pertaining thereto issued by the Administrator.
Only Members of the Industry complying with the Code and con-
tributing to the expenses of its administration as hereinabove pro-
vided, (unless duly exempted from making such contributions) shall
be entitled to participate in the selection of members of the Code
Authority or to receive the benefits of any of its voluntary activities
or to make use of any emblem or insignia of the National Recovery
SECTION 10. The Code Authority shall neither incur nor pay any
obligation substantially in excess of the amount thereof as estimated
in its approved budget, and shall in no event exceed the total amount
contained in the approved budget except upon approval of the Ad-
ministrator; and no ,ubsequent. budget shall contain any deficiency
item for expenditures in excess of prior budget estimates except, those
which the Administrator shall have so approved.
SECTION 11. To recommend to the Administrator any action or
measures deemed advisable, including further fair trade practice pro-
visions to govern Members of the Industry in their relations with
each other or with other industries; measures for industrial plan-
ning, and stabilization of employment; and including modifications
of this Code which shall become effective as a part hereof upon ap-
proval by the Admlinistrator after such notice and hearing as he may
SECTION 12. To appoint a Trade Practice Committee which shall
meet with the Trade Practice Committees appointed under such other
Codes as may be related to the Induitry for the purpose of formulat-
ing fair trade practices to govern the relationships between employers
under this Code and under such other Codes to the end that such
fair trade practices may be proposed to the Administrator as amend-
ments to this Code and such other Codes.
SECTION 13. To define within regions the necessary districts re-
quired to administer this Code and to establish additional regions if
and when quarries are commercially developed therein, subject to the
approval of the Administrator.
SECTION 14. Any interested party shall have the right of complaint
to the Code Authority and a prompt hearing and decision thereon
under such rules and regulations as the Administrator may pre-
scribe in respect. to any act of any agents or agency designated by
the Code Authority to act in its behalf.
ARTICLE VII-TRADE PRACTICE RULES
SECTION 1. The following trade practices are declared to consti-
tute unfair methods of competition between Members of the In-
dustry, and no Member of the Industry shall use or engage in any
of them, either directly or indirectly, through any officer, agent or
employee. Engaging in any one or more of these or any further
trade practice provisions which hereafter may be established on rec-
ommendation by the Code Authority, approved by the Adminis-
trator, after such hearings as he may prescribe, shall be deemed a
violation of this Code:
(a) No Member of the Industry shall knowingly withhold from
or insert in any quotation or invoice any statement that makes it
inaccurate in any material particular.
(b) No Member of the Industry shall brand, or mark. or pack
any goods in any manner which is intended to or does deceive or
mislead purchasers with respect to the brand, grade, quality, quan-
tity, origin, size, substance, character, nature, finish, material, con-
tent or preparation of such goods.
(c) No Member of the Industry shall defame a competitor by
falsely imputing to him dishonorable conduct, inability to perform
contracts, questionable credit. standing, or by other false representa-
tion, or by falsely disparaging the grade or quality of his goods.
(d) Knowingly inducing or attempting to induce the breach of an
existing oral or written contract between a competitor and his
customer or source of supply, or interfering with or obstructing the
performance, of any such contractual duties between a Member of
Industry and his customer.
(e) No Member of Industry shall publish or circulate unju-tified
oirunwarranted threats of legal proceedings which tend to or have
theieffect of h arasrsi n competitors or intimidating their customers.
(f) No Member of the Industry shall secretly offer or make any
payment or allowance of a rebate, refund, commission, credit, un-
earned discount or excess allowance, whether in the form of money
or otherwise, nor shall a Memlber of the Industry secretly offer or
extend to any customer any special service or privilege not extended
to all customers of the same class, for the purpose of influencing a
(g) No Membir of the Industry shall give, permit to be given, or
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 p;rty. This provision
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.
(h) No Member of the Industry shall engage in the practice
known as "bid peddling ", which is defined as giving or attempting
to give information, true or false, to a bidder regarding the estinmat
or bid of a competitor in order to gain or give an unfair advantage.
AnTICLE VIII-MA R.KETING PRACTICES
SECTION 1. Op'en Pr&4,i Policy.-Each Member of the Industry
shall file with a confidential and disinterested agent of the Code
Authority or, if none. then with su.h an agent designated by the
Administrator, identified lists of all of his prices, discounts, rebates,
allowances, and all other terms or conditions of sale, hereinafter in
this Article referred to as price terms which lists shall completely
and accurately conform to and represent the individual pricing
practices of said member. Such lists shall contain the price terms
for all such standard products of the Industry as are sold or offered
for sale by said member and for su,'h non-standard products of said
member as shall he designated liv the Code Authority. Said price
terms shall in the first instance be filed within ten (10) days after the
date of approval of this provision. Price terms and revised price
terms shall become effective immediately upon receipt thereof by
said agent. Imlnediately upon receipt thereof, said agent shall by
telegraph, or other equally prompt means notify said member of
the time of such receipt. Such lists and revisions, together with
the effective time thereof, shall upon receipt be immediately and
simultaneously distributed to all Members of the Indusfry and to
all of their customers who have applied therefore and have
offered to defray the cost actually incurred by the Code Authority
in the preparation and distribution thereof and be available for
inspection by any of their customers at the office of such agent.
Said lists or revisions or any part thereof shall not be made avail-
able to any person until releas-ed to all Members of the Industry
and their customers, as aforesaid; provided, that prices filed in the
first instance shall not be released until the expiration of the afore-
said ten (10) day period after the approval of this Code. The
Code Authority shall maintain a permanent file of all price terms
filed as herein provided, and shall not destroy any part of such
records except upon written consent of the Administrator. Upon
request the Code Authority shall furnish to the Administrator or
any duly designated agent of the Adminstrator copies of any such
lists or revisions of price terms.
SECTION 2. When any Meniber of the Industry has filed any re-
vision, such neiiAber shall not file a higher price within forty-eight
SECTION 3. NO Mem1ber of the Industry shall sell or offer to sell
any products of the Industry, for which price terms have been filed
pursuant to the provisions of this Article VIII, except in accordance
with such price terms.
SECTION 4. NO Member of the Industry shall enter into any agree-
ment, understanding, combination or conspiracy to fix or maintain
price terms, nor cause or attempt to cause any Member of the Indus-
try to change his price teriis by the use of intimidation, coercion, or
any other influence inconsistent with the maintenance of the free
and open market which it is the purpose of this Article to create.
SECTION 5. Each Meimber of the Industry who offers trade dis-
counts to different classes of his trade, shall publish and file with
the agency described in Section 1 of this Article VIII, within fif-
teen (15) days after the effective date of this Code and whenever
there after he makes any changes therein, a schedule of the definitions
and qualifications by which he determines the classification and
status of a customer in respect to such discounts. But this clause
shall not be construed to require a classification of customers uniform
for all Members of the Industry.
SECTION 6. Members of the Industry who regularly purchase a
part or all of their requirements of cleft stone from quarriers and
who publish a schedule of prices which they agree to pay for the
different classes of the product, shall file such purchase price sched-
ules with the agency described in Section 1 of this Article VIII.
Any Member of the Industry who sells all of his products to another
member or members at prices not lower than the prices in such a
member's or members' purchase price list shall be relieved of the
requirements under Sections 1, 2 and 4 of this Article VIII. Such
purchase prices shall not be lower than any emergency minimum cost
which may be established under Section 8 of this Article VIII for
the same products and during the same period.
SECTION 7. No Member of the Industry shall, by means of any
secret rebate, special discount or by selling or offering for sale non-
standard grades, sizes, dimensions or classifications of products, offer
to, or purchase or sell any Industry product in violation of the appli-
cable price terms or purchase price schedule.
SECTION 8. All Members of the Industry shall adopt and maintain
such uniform bidding practices, credit and terms of payment and
other uniform, fair and equitable sales practices as may be estab-
lished by the Code Authority with the approval of the Administrator.
SECTION 9. The standards of fair competition for the Industry
with reference to pricing practices are declared to be as follows:
(a) Wilfully destructive price cutting is :an unfair method of com-
petition and is forbidden. Any Memberi of the Industry or of any
other Industry or the customers of either may at any time complain
to the Code Authority that any filed price constitutes unfair com-
petition as destructive price cutting, imperiling small enterprise or
tending toward monopoly or the impairment of code wages and
working conditions. The Code Authority shall within five (5) days
afford an opportunity to the member filing the price to answer such
complaint. and shall within fourteen (14) days mnake a ruling or
adjustment thereon. If such ruling is not concurred in by either
party to the complaint, all papers shall be referred to the Research
and Planning Division of NRA which shall render a report and
recommendation thereon to the Administrator.
(b) When no declared emergency exists as to any given product,
there is to be no fixed minimum basis for prices. It is intended that
sound cost estimating methods should be used and that consideration
should be given to costs in the determination of pricing policies.
(c) When an emergency exists as to any given product, sale below
the stated minimum price of such product, in violation of Section 9
of this Article VIII, is forbidden.
SECTION 10. Emcr'ency Provi.;ons.-(a) If the Administrator,
after investigation shall at any time find both (1) that an emergency
has arisen within the Industry adversely affecting small enterprises
or wages or labor conditions, or tending toward monopoly or other
acute conditions which tend to defeat the purposes of the Act; and
(2) that the determination of the stated minimum price for a speci-.
fled product within the Industry for a limited period is necessary to
mitigate the conditions constituting such emergency and to effectuate
the purposes of the Act, the Code Authority may cause an impartial
agency to investigate costs and to recommend to the Administrator a
determination of the stated minimum price of the product affected
by the emergency and thereupon the Administrator may proceed to
determine such stated minimum price.
(b) When the Administrator shall have determined such stated
minimum price for a specified product for a stated period, which
price shall be reasonably calculated to mitigate the conditions. of
such emergency and to effectuate the purposes of the National In-
dustrial Recovery Act, he shall publish such price. Thereafter, dur-
ing such stated period, no Member of the Industry shall sell such
specified products at a net realized price below said stated minimum
price and any such sale shall be deemed destructive price lettingg.
From time to time, the Code Authority may recommend review or
reconsideration, or the Administrator may cause any determinations
hereunder to be reviewed or reconsidered and appropriate action
SECTION 11. Cost Finding.-The Code Authority shall cause to be
formulated methods of cost finding and accounting capable of use by
all Members of the Industry, and shall submit such methods to the
Administrator for review. If approved by the Administrator, full
UNIVERSITY OF FLORIDA
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information concerning such methods shall be made available to
all Members of the Industry. Thereafter, each Member of the In-
dustry shall utilize such methods to the extent found practicable.
Nothing herein contained shall be construed to permit the Code
Authority, any agent thereof, or any Member of the Industry to
suggest uniform additions, percentages or differentials or other uni-
form items of cost which are designed to bring about arbitrary
uniformity of costs or prices.
ARTICLE IX-MODI nFICATON
SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the Preident, in accordance with the
provisions of Subseitiiin (b) of Section 10 of .the Act, from time
to time to can:rel or modify any order, approval, license, rule or
regulation issued under Title I of said Act.
SECTION 2. Such of the provisions of this Code as are not re-
quired to be included herein by the Act may, with the approval
of the Administrator, be modified or eliminated in such manner as
may be indicated by the needs of the public, by changes in circum-
stances, or by experience. All the provisions of this Code, unless
so modified or eliminated, shall remain in effect until June 16, 1935.
No provision of this Code shall be so applied as to promote mo-
nopolies or monopolistic practices or to eliminate, oppress, or dis-
criminate against small enterprises.
ARTICLE XI-PRICE INCREASES
Whereas the policy of the Act to increase real purchasing power
will be made more difficult of consummation if prices of goods
and services increase as rapidly as wages, it is recognized that price
increases except such as may be required to meet individual cost
should be delayed, and when made such increases should, so far as
possible, be limited to actual additional increases in the seller's
ARTICLE XII-EFFECTIVE DATE
This Code shall become effective ten (10) days after its approval
by the President.
Approl-ed Code No. 519.
Registry No. 1039-12.