UNIVERSITY OF FLORIDA
I I111 I fiI i ll NI ll II E ll I IIIIIII II llIll
3 1262 08482 9653
ndment No. 2
Registry No. 1036-r-410
CODE OF FAIR COMPETITION
CLAY AND SHALE ROOFING
AS APPROVED ON DECEMBER 7, 1934
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Approved Code No. 389-Amendment No. 2
AMENDMENT TO CODE OF FAIR COMPETITION
CLAY AND SHALE ROOFING TILE INDUSTRY
As Approved on December 7, 1934
APPROVING AMENDMENT OF CODE OF FAIR COMPETITION FOR THE CLAY
AND SHALE ROOFING TILE INDUSTRY
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 an amend-
ment, to a Code of Fair Competition for the Clay and Shale Roofing
Tile Industry, and hearings having been duly held thereon and the
annexed report on said amendment containing findings with respect
thereto, having been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, the National Industrial Recovery Board, pursuant to author-
ity vested in it by Executive Orders of the President, including
Executive Order No. 6859, and otherwise, does hereby incorporate
by reference said annexed report and does find that said amendment
and the code as constituted after being amended comply in all
respects with the pertinent provisions and will promote the policies
and purposes of said title of said act; and does hereby order that
said amendment be and it is hereby approved, and that the previous
approval of said code is hereby modified to include an approval of
said code in its entirety as amended.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By W. A. HARRIMAN, Admiaistrative Officer.
W. P. ELLIs,
Acting Division Administrator.
WASHINGTON, D. C.,
December 7, 1934.
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report on an amendment to the Code of Fair Com-
petition for the Clay and Shale Roofing Tile Industry, a hearing on
which amendment was conducted in Washington on the first of
August, 1934, in accordance with the provisions of the National
Industrial Recovery Act.
The modifications of Section 1 of Article III, Section 2 of Article
IV, Sections 1 and 4 of Article V, Sections 7 and 10 (c) of Article
VI, and Rules 2 and 16 of Article VII were requested by the National
Recovery Administration. These changes clarify the language and
make the Code conform more nearly to present policy.
The modifications of Sections 5 and 11 of Article VI were
requested by the Industry. These changes eliminate New Mexico
from the Pacific Coast Region and clarify the powers and duties of
the Regional Control Committee for this region.
The addition of Rules 17, 18 and 19 to Article VII was requested
by the Industry. This addition provides certain fair trade practice
rules for the Pacific Coast Region which are thought to be necessary
for the proper regulation of the Industry within that Region.
The addition of the new Sub-Article VII-A was requested by the
Industry. This Sub-Article provides for the open filing of prices
in the Pacific Coast Region.
The Deputy Administrator in his final report to us on said amend-
ment to said Code having found as herein set forth and on the basis
of all the proceedings in this matter:
We find that:
(a) The amendment to said Code and the Code as amended are
well designed to promote the policies and purposes of Title I of
the National Industrial Recovery Act including the removal of
obstructions to the free flow of interstate and foreign commerce which
tend to diminish the amount thereof, and will provide for the gen-
eral welfare by promoting the organization of industry for the pur-
pose of cooperative action of labor and management under adequate
governmental sanction and supervision, by eliminating unfair com-
petitive practices, by promoting the fullest possible utilization of the
present productive capacity of industries, by avoiding undue re-
striction of production (except as may be temporarily required),
by increasing the consumption of industrial and agricultural pro-
ducts through increasing purchasing power, by reducing and reliev-
ing unemployment, by improving standards of labor, and by other-
wise rehabilitating industry.
(b) The Code as amended complies in all respects with the perti-
nent provision of said title of said act, including without limitation
subsection (a) of section 3, subsection (a) of section 7 and subsection
(b) of section 10 thereof.
(c) The Code empowers the Code Authority to present the afore-
said amendment on behalf of the industry as a whole.
(d) The amendment and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.
(e) The amendment and the Code as amended are 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
For these reasons, therefore, we have approved this amendment.
For the National Industrial Recovery Board:
W. A. HARRIMAN,
DECEMBER 7, 1934.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE CLAY AND SHALE ROOFING TILE INDUSTRY
Article III, Section 1 is amended by deleting the word employed"
wherever it appears in said section and by inserting in lieu thereof
the words "permitted to work ".
Article III, Section 1 (b) is amended by adding the following
sentence: "The term 'outside salesman shall mean and include any
employee whose principal duties shall consist of soliciting orders
outside of sales office, factories, or headquarters."
Article IV. Section 2 is amended by inserting the word "at"
between the words "than the" where they first appear in said
Article V, Section 1 is amended by deleting the word or where
it first appears in said section and by substituting therefore the
Article V, Section 4 is amended by deleting said section and
inserting in lieu thereof a new Section 4 to read as follows: "No
employer shall reclassify employees or duties of occupations per-
formed or engage in any other subterfuge so as to defeat the pur-
poses or provisions of the Act or of this Code."
Article VI, Section 5 is amended by deleting said section and
inserting in lieu thereof a new Section 5 to read as follows: "To
further effectuate the policies of the Act, a Pacific Coast Region,
comprising the States of California, Washington, Oregon, Idaho,
Nevada and Arizona is hereby established. A Regional Control
Committee, consisting of three (3) members, shall be elected by a
fair method approved by the National Industrial Recovery Board,
by the members of the Industry in the above-named region; pro-
vided that no member of the Industry shall be represented by more
than one (1) member on the Regional Control Committee. The
Code Authority may delegate to such Regional Control Committee
such powers and duties as may be necessary for the administration
of this Code in this region, but such delegation shall not relieve
the Code Authority of its duties or its responsibilities under the
Code. The National Industrial Recovery Board may appoint from
one (1) to three (3) members to serve without vote on such Re-
gional Control Committee. Members so appointed shall be given
notice of, and may sit at all meetings of the Regional Control
Article VI, Section 7 is amended by deleting said section and sub-
stituting in lieu thereof a new Section 7 to read as follows: "In
order that the Code Authority and the Regional Control Committee
hereinabove provided for shall at all times be truly representative
of the Industry and in other respects comply with the provisions of
the Act, the National Industrial Recovery Board may prescribe such
hearings as it may deem proper; and thereafter if the Board shall
find that the Code Authority and.'or the Regional Control Commit-
tee is not truly representative or does not in other respects comply
with the provisions of the Act, it may require an appropriate modi-
fication of the Code Authority and/or the Regional Control
Article VI, Section 10, Subsection (c) is amended by deleting said
Subsection (c) and by substituting in lieu thereof a new Subsection
(c) to read as follows: To obtain from members of the Industry
such information and reports as are required for the administration
of the Code. In addition to information required to be submitted
to the Code Authority, members of the Industry subject to this Code
shall furnish such statistical information as the National Industrial
Recovery Board may deem necessary for the purposes recited in Sec-
tion 3 (a) of the Act to such Federal and State Agencies as that
Board may designate; provided that nothing in this Code shall re-
lieve any member of the Industry of any existing obligations to
furnish reports to any Government agency. No individual report
shall be disclosed to any other member of the Industry or to any
other party except to such other Governmental agencies as may be
directed by the National Industrial Recovery Board."
Article VI, Section 11 is amended by deleting said Section 11 and
by substituting in lieu thereof a new Section 11 and Subsections 11
(a), 11 (b) and 11 (c) to read as follows: "The provisions of this
section shall apply to and affect members of the Industry only when
such members sell or offer to sell the products of the Industry in or
into the Pacific Coast region.
(a) Subject to the approval of the National Industrial Recovery
Board, the Regional Control Committee may set up and define dis-
tricts within the region and may establish District Committees,
chosen by a fair method of selection approved by the National In-
dustrial Recovery Board. The Regional Control Committee may
use such District Committees or other agencies as it deems proper
for carrying out its administration of the Code provided for herein;
provided that nothing shall relieve the Regional Control Committee
of its duties and responsibilities under the Code.
(b) The Regional Control Committee may study conditions in the
Industry and submit recommendations for a marketing plan which,
upon approval of the National Industrial Recovery Board, shall
become binding upon all members of the Industry as to all sales made
in or into such region.
(c) The Regional Control Committee may recommend, from time
to time, classifications and standards of quality for the various types
of products manufactured in the region and, upon approval of the
National Industrial Recovery Board, after such notice and hearing
as it may prescribe, such classification and standards shall be adhered
to by members of the Industry when manufacturing products for
sale in or into said region. No member of the Industry shall sell,
or offer for sale as standard products, any products for which classi-
fications and/or standards have been established except in accord-
ance with such classifications and/or standards, either as a subterfuge
to effect a lower price or for any other reason."
Article VII, Rule 2 is amended by deleting said Rule and sub-
stituting in lieu thereof the following Rule 2: No member of the
Industry shall defame a competitor by falsely imputing to him dis-
honorable conduct, inability to perform contracts, questionable credit
standing, or by other false representations, or by falsely disparaging
the grade or quality of his goods."
Article VII, Rule 16 is amended by deleting the word "find"
and substituting therefore the word finding ".
Article VII is amended by adding thereto Rules 17, 18 and 19
to read as follows:
"RunE 17. No member of the Industry selling or offering to sell
in the Pacific Coast Region shall knowingly withhold from or insert
in any quotation or invoice any statement that makes it inaccurate
in any material particular.
"RULE 18. No member of the Industry selling or offering to sell in
the Pacific Coast Region shall make lump-sum bids on clay and
shale roofing tile and/or special shapes for the purpose of concealing
the unit prices on the items contained therein, or guarantee that any
specific quantities will do the job which are known to be insufficient
for the purpose.
"RULE 19. No member of the Industry selling or offering to sell
in the Pacific Coast Region shall make any bids on clay and shale
roofing tile in a lump sum or otherwise when its acceptance is con-
tingent upon the acceptance of a bid on any other clay products or
on any other building material or commodity."
Article VII is amended by adding thereto Sub-Article VIT-A to
read as follows: The provisions of this Sub-Article VII-A shall
apply to and affect members of the Industry only when such members
sell or offer to sell the products of the Industry in or into the Pacific
SECTION 1. Each member of the Industry shall file with a confi-
dential and disinterested agent of the Regional Control Committee
or, if none, then with such an agent designated by the National In-
dustrial Recovery Board, identified list of all of his prices, dis-
counts, rebates, allowances, and all other terms or conditions of sale
for the Pacific Coast Region (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 stand-
ard products of the Industry as are sold or offered for sale by said
member, and for such non-standard products of said members as
shall be designated by the Regional Control Committee. Said price
terms shall in the first instance be filed within ten days after the
effective date of this provision. Price terms and revised price terms
shall become effective immediately upon receipt thereof by said
agent. Immediately upon receipt thereof, said agent shall by tele-
graph 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 simul-
taneously distributed to all members of the Industry selling or offer-
ing to sell within the Pacific Coast Region and to all of their cus-
tomers who have applied therefore and have offered to defray the
cost actually incurred by the Regional Control Committee 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 available to any
person until released to all such members of the Industry and their
customers, as aforesaid; provided that prices filed in the first in-
stance shall not be released until the expiration of the aforesaid
ten day period after the effective date of this provision. The Re-
gional Control Committee 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 National Indus-
trial Recovery Board. Upon request, the Regional Control Com-
mittee shall furnish to the National Industrial Recovery Board or
any duly designated agent of the National Industrial Recovery
Board copies of any such lists or revisions of price terms.
SECTION 2. When any such member of the Industry has filed any
revision, such member shall not file a higher price within forty-eight
SECTION 3. No member 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, 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 terms 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."
Approved Code No. 389-Amendment No. 2.
Registry No. 1036-1-02.
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