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UNIVERSITY OF FLORIDA
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3 1262 08483 0016
CODE OF FAIR COMPETITION
AS SUBMITTED ON AUGUST 22, 1933
REGISTRYT No. 1026-08
The Code for the Asphaltic Limestone Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry
CODE OF FAIR COMNPIETITIIONV FOR THE ASPHALTIC
SECTION 1. In order to cooperate with the President of the United
States and to effectuate the policy of Congress as expressed in Title I
of the National Recovery Act, the Asphaltic Limestone Industry, as
represented by the National Asphaltic Limestone Association, has
adopted this code as a means of increasing employment, the estab-
lishment of fair and reasonable wages, the reduction of hours of labor,
the improvement of working conditions, and the prevention of over-
production and of destructive and unfair competitive methods, to the
end that this industry m~ay be stabilized and placed on a sound basis
and thereby be enabled to take its proper part in adv-ancing the
SEC. 2. The members of the National Asphaltic Limnestone Associa-
tion represent a substantial percentage of the producing capacity of
the asphaltic limestone industry. It wil not be the purpose of this
code to further the establishment of a monopoly nor to eliminate,
oppress, or discriminate! against smaall industries.
SECTION 1. As used in this code, the term "producer" is considered
to be any person, firm, corporation, or association engaged in, thae
quarryJing, mining, and/or crushing, and/or grinding, and/or processing
of asphaltic limestone or bituminous limestone for any and all purposes.
SEC. 2. The term "e~ffective date"', as used herein, is defined to be
the tenth day after this code shall have been approv-ed by the Presi-
dent of the United States.
SEC. 3. The term "'association", as used herein, is defined to be the
National Asphaltic Limestone Association.
ARTICLE 'III--ORGANIZATION AND) ADMINISTRATION
SECTION 1. Administration .-This Code of Fiair Competition shall
be administered by the N\ational Adlministrative Commitee of the
National Asphaltic Limestone Association. The provisions for elec-
tion of the National Adminlistrative Commitee are given in the
Articles of Organization and By-Laws of the Association, which are
attached hereto as Appendix I.
SEc. 2. Duties of National! Admninistrativle Committee.--This Comm-
mitteee shall be the general planning, coordinating, and administering
agency for the industry. This Commnittee is charged with the duty
of formulating such rules and regulations as may be necessary for
the administering and enforcement of this code. T~he Committee
shall take such steps as, in its judgment, are necessary to full an~d
proper administration of this code and shall, upon the complaint of
interested parties, or upon it~s owna initiative, make such inquiry and
investigation as t.o the operation of the code as may be necessary.
The committee may appoint such subcommittees and may designate
such other agents as it. may determine.
This section shall not be construed as denying the right of
any producer or producers to appeal to the National Recovery
SEc. 3. State Administrative Committee.--There shall be organized
in each producing State a State Administrative Committee which
committee shall administer the provisions of this Code of Fair Com-
petition in that State, and in t~he normal market region reached by
the producers of the State.
SEc. 4. Duties of State Administra~tile Committee.--This Committee
shall serve, under t~he National Administrative Committ~ee, as a plan-
ning, coordinating, and administrative agency mn each marketing
SEC. 5j. Election of cState idmin~istratile Committee.--Each producer
in a producing State shall have the right to name one of its executive
officers as a, member of the State Administrative Committ~ee.
SEc. 6. Voting by the National Administra~tive Commitltee.-Each
member of this Comimittee shall be entitled to one vote irrespective of
t~he amount of production of his own plant or of the State or market-
ing region which he represents.
SEc. 7. lloting by State Administrativ~e Committee.--A meeting of
the State Administrative Committee may be called at the instance of
producers representing twenty-five percent of the number of com-
panies within the producing S~tarte, or producers representing twhenty-
five percent of t.he production within the State, or at the call of either
the Chhairman of the State Administrative Committee or of the
National Administrative Committee. At. meetings of the State
Administrative Committee voting shall be by ballot, each member to
vote in accordance writh his average annual production for the three
preceding years, each to east one vote for each one thousand tons, or
major fraction t.hereof, of asphaltic limestone representing the average
tonnage which he has mianufactured and invoiced during the preceding
th ree yea rs.
SEc. 8. Organization of State Administrat~ive Committee.--At the
first meeting t~he committee shall elect from its members a Chairman,
a V'ice Chairman, and a Secretary. These officers shall serve for one
year, or until their successors are elected.
SEC. 93. Inter~regional rPgu~lations~.-Proposals in respect to inter-
pretation and enforcement of t.his code affectinga more than one
producing St~ate or marketing region mnay be made to the National
Admlinistrative Committee by any St~ate Administrative Committee
and the decision of the Nat~ional Administrative Committee shall be
SEc. 10. Right of appeal.--Appeal fromt any decision by a State
Admiinistrative Committee may be taken to the National Adminis-
trat~ive Committee. The decision of the National Administrative
Committee shall be final except for appeal to the National Recovery
Admnin istra ti on. Any producer mazy exercise the right of appeal, as
herein provided, from any decision affecting the interests of such
SEC. 11. Arb itratio n.---Comlplsin ts or con trove rsies, inv-ol v ing labor,
''the consuming interests, or other groups outside of the producing
industry; which cannot be satisfactorily settled by the SNational Ad-
ministr'ative Committee, shall be referred to an Arbitration Board
composed of equal representation from each, of the groups involved
in the complaint or controversy, together with a neutral arbiter
selected by the appointed members of the Arbitration. Board.
SEc. 12. Statistics.-All producers shall file writh the Association
such records as may be requied by the National Adminzistrativ~e
Committee regarding hours of labor, rates of wages, production,
stocks on hand, sales, and such other information as mayV be necessary
to accomplish t~he objective of this code. Such records shall be
accompanied by affidavits of the producer certifying as to the accu-
racy thereof. All records so filed with the Association shall be held
as confidential documents except that theyg may be available to the
National Recovery Administration.
SEC. 13. Administr~ation. expense.--All producers subscribing to and
governed by this code shall bear their proportionate share~ of the
expense incident to the initiating, securing the approval of, and the
administering of this code. These funds shall be collected through
the Association. A report, of receipts and disbursements shall be
sent to each producer quarterly.
ARTICLE IV--HOURS Or LABOR AND RATES Or PAY
SECTION 1. Labor conditions in arccordlance with the requirements of
the Nrationarl Industrial Recovery Act.--
(a) Employees shall have the right to organize and bargain collec-
tively through representatives of their own choosing, and shall be
free from the interference, restraint, ior coercion of employers of
labor, or their agents, in thle designation of such representatives or
in self-organization or in other concerted activities for th2e purpose
of collective bargaining or other mutual aid or protection.
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company ulnion1 or to
refrain from joining, 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 employment approved
or prescribed by the President.
SEc. 2. Hours of Labor.--With the exceptions hereinafter set forth,
no plant employee shall work more than an average of 35 hours per
week in the six months' period froma Fiebruary 1 to August 1 or mn
the six months' period from August 1 to February 1. Provided
further, that no plant employee shall work more than 48 hours in
any one week nor more than 8 hours in any one dlay. No accounting
clerical, or office employees shall work more than 40 hours mn any one
week. Exceptions to the maximum number of working hours out-
lined herein shall include professional, executive, admnurstrative, or
supervisory employees; traveling or outside salesmlen; emergency
employment occasioned by breakdowns and other factors beyond
control; watchmen and employees, not exceeding 10%o of th~e total
number of employees, required to make it possible for the regular
production organization to work the full allotted t~ime.
A labam a.......... ~. .......... 30. 30
Oklahoma.-...... .....-...... .30
SEC. 3. Rat88 Of Pay.-(R) The minimum r868 Of payr per hour
for unskilled labor in those St~ates in which asphaltic limestone is
produced shall be as follows:
(b) On the effective date of this code, the watges of all employees
above thie classification of unskilled labor and not otherwise specified
now receiving less than $35.00 per week, shall be restored to the same
hourly rate as paid on July 15, 1929, by the asphaltic limestone
industry in each producing state, or shall be maintained on the same
hourly rate as was in effect on July 15, 1933, whichever hourly rate
may be the higher.
(c) The minimum rate of wage for accounting, clerical, or office
employees sha~ll be as follows: $15.00 per week in any city of over
500,000 population, or in the immediate trade a.rea of such city;
$14.50 per week inz an city between 250,000 and 500,000 population,
or in thce immediate trade area of such cityv; $14.00 per week in any
city of between 2,500 and 250,000 population, or in the immediate
trade area of such city, and $12.00 per week in towns of less than
2,500 population. Population shall be determined by the 1930
(d) Wa~ges shall be paid in lawful money or bankable check at the
option of the producer. Deductions may be made from pa~y of
employees for house rentals, store accounts, and other legitunate
SEC. 4. Piece-w~ork.--No piece-worki shall be permitted which shall
decrease the mirniumr hourly wage or increase the number of hours
of work per week as provided in this code.
SEc. 5. Penal labor.-Nf~o penal labor shall be used in the production
of asphaltic limestone.
SEa. 6. Child labor.-T-lhe mninimnum age for labor employed in the
asphaltic limestone industry shall be the legal limlit as provided by
the laws of the state in which the operation is located, but in no case
shall this age be less thanz 16 years.
ARTICLE V-A1~iARKETING PRACTICES
SECTION 1. Selling Belotol Cost.-Sound economic principles require
the sale of material at such a price, or prices, as will realize to the
producer th2e far average cost of production and sale plus a reason-
able maargin of profit; and, therefore, no producer shall sell his prod-
uct below thze av-erage annual cost of production and sale based on
normal market operations for his market area.
SEc. 2. Uniform Gost Accounting.--The National Administrative
Committee shall establishI a uniform cost accounting system, and
each producer shall adhere to the uniform system adopted for this
industryT, to the extent of incorporating in all calculations of cost all
the elements outlind in the standard cost accounting system.
SEc. 3. Determinatilon, of Gods.-Each Stat.e Administrative Comm-
mitteee may determine the average production cost for such State, and
no producer selling his product in that State, or in the m~arket region
supplied by producers of that State, shall sell bet~low such determined
cost. The average cost as determined shall be subject to the review
and approval of the NationalZ Administrative Committee.
SEc. 4. Uniform Terms of Sale.--All quotations and, con tracts for the
sale of any product of a producer shall be in writing and shall contain
a definite statement of price, quantity, terms of payments, tie and
place of delivery, and all other items necessary to form a, complete
SEc. 5. Uniform Cred~it Practices.---Thae Na~tionall A~dmrinistrative
Committee may establish uniform credit practices which shall be
binding upon all producers.
ARTICLE VI--PLANT CAPACITY AND NEW PRODUCTION
SECTION 1. To promote t~he fullest possible utilization of the present
excessive production capacity of the industry-, and to effectuate thze
other purposes of t~he Nat~ional Indust~riatl Recovery Act, before a ne~w
plant may be established or the producing capacity of an existing
plant be increased, or an existing plant be remnovped from one producing
site t~o another, formal notice of such intent must be given to the State
Administrative Committ~ee of the state or market area in which the
new production capacities are to be located. Upon receipt of such
notice, the Stat.e Administrative Commuittee shall promptly collect
complete information concerning t~he existing production capacity
in that state and in the adjacent market area. If this investiga tion
discloses that such new production catpac~ity will not tend to defeat
the purposes of the National Industrial Recoveryr Act as here~in. set
forth, then the Stat.e Admlinist~rative Comlmittee shall grant permis-
sion for the proposed increase in, production capacity in that state or
in the adjacent market area. If, however, this inv-estigation dis-
closes that commercial production of asphaltic limestone is economi-
cally available in adequate quantity in the market area, and such
proposed increase in production capacity does tend to defeat the pur-
poses of the National Indust~rial Recovery Act as herein set forth, the
St.at~e Administrative Committee shall then deny permission to
increase the production capacity in that state or atdjacent market
area, a~nd shall so recommend to the National Admninist~rativre Com-
mittee. The final decision of the National Administrative Com-
mit~tee shall be binding, except for appeal only to the National
Recovery Administ~ra t ion.
SEC. 2. The provisions of Section 1 shall nlot be construed as pre-
venting a producer established and in operation on July 1, 1933, from
improving the efficiency of his plant through. the installation of new-
machinery or adopting such methods as will lower production costs.
It will be permlissible for a producer established and in operation
prior to July 1, 1933, to move his plant to another quarry site belong-
ing to the same producer, provided that increased production capacity
mn the market region is not developed as a result of such mlovemlent.
ARTICLE VTIIUNFAIR COMPETITIVE PRACTICES
SECTION 1. Secret Rebates.--No producer shall make a secret prepay-
ment of transportation charges or permit the payment or allowance
of secret rebates, refunds, credits or unearned discounts, whether in
t.he form of mloney or otherwise, or the giving of premiums, or extend-
ing t~o certain purchasers special service or privilege not extended to
all purchasers under like terms and conditions.
SEc. 2. Interference 2n Conztracts.--No producer shall wilfully inter-
fere with any person, firm, corporation or association by any mleans
or device whatsoever, in any existing contract or order between a seller
and a purchaser in or about the production, manufacture, transporta-
tion, purchase, or sale of the product handled by t~he industry or the
performance of any contractural duty or service connected therewith,
destroying or appropriating in whole or in part the patronage, prop-
erty or business of another engaged in the asphaltic limestone industry.
SEc. 3. ULnfair Sal~1es Promotion.--No producer shall attempt to
capitalize on or take unfair advantage of legitimate sales promotion
of his competitor.
SEC. 4. Defamation of C~omipetitor.--No producer shall defame a
competitor by words or acts, falsely imputing to him dishonorable
conduct., inability to perform contracts or questionable credit stand-
ing, or by the false disparagement of the grade or quality of his ma-
SEc. 5. Confo~rmity with Specification Requirements.--No producer
shall sell or offer for sale any product of the industry with intent to
deceive customers or prospective customers as to the quality, quantity,
size, grade, or substance of such product.
SEc. 6. Mis~:4branIding.- N~o producer shall mark or brand products
of the industry for the purpose or withl the effect of misleading orde-
ceiving purchasers with respect to the quality, quantity, size, grade,
or substance of the materials purchased.
SEC. 7. Payment Of Comm/88/Rso.--NO producer shall pay or prom-
ise to pay to any employee of a customer or prospective customer, a
commission or consideration of any character for the purpose of in-
duringr, or compensating for, a sale.
SEc. 8. Commercial Briber-y.--No producer shall offer or give com-
missions, prizes, premiums, gifts, excessive entertainment, or other
benefits as an act of commercial bribery to anyone in connection with
t~he sale,, purchase, or use of his products, or as an inducement thereto.
SEc. 9. Lump-Seum Bidding and C~ontingent Selling.--(a) No pro-
ducer shall. sell his product except on a unit-price basis.
(b) No producer shall enter into any contract, for furnishing any
of his products contingent upon the sale or purchase of any other
thing, the performance of any other service, or any other contingency
not appearing in the contract or complying with this code.
SEC. 10. Antidumping.--No producer shipping his product into
regions, or subdivisions thereof, outside of the natural market area in
which his plant is located, shall sell such material below the general
market price prevailing in the region into which shipments are matde.
SEc. 11. Enrticement of Employees.--No producer shall entice em-
ployes f~rom a competitor for the purpose of interfering with his
SEC. 12. Accclden2t Preventioz.-E~very producer shall lend his co-
operation and active support to the program of his Association for
the reduction of accidents in the conduct of his operations. No
producer shall be permitted to expose his employees to unnecessarily
dangrousll working hazards, anzd cases of flagrant disregard of the life
and health of employees shall constitute a violation of this code.
Every producer shall carry and keep in force adequate W7orkmen's
Compensation and Public Liability~ Insurance.
SEC. 13. Enforcin~g Observance byl Agents and Distributors.--No pro-
ducer shall permit his products to be handled by a middleman, sales-
mlan, agent, jobber, or distributor standing between producer and
consumer w~ho violates, in any way, the provisions of this Code of
Fair Compet~ition. Violation b~y such. middleman, salesman, agent,
jobber, or distributor shall be considered as a violation of this code
on the part of the producer whose product is so handled.
SEc. 14. ObservLance of P~atent Rights._Producers shall observe all
patent or trade-mark rights belonging to other producers, anzd viola-
tion of such rights shall be considered as a violation, of the provisions
of this code as well as of the laws of the United States.
SECTION 1. Any producer shall havce the right to bring to the at-
t~ention of his Stat~e Administrative Commmittee any violation of any
section of this code. The State Administrative Commttee shall
thereupon undertake such steps as m~ay be necessary to enforce the
requiremlent.s of this code an~d, if necessary, refer the question mn
dispute to the National Administrative Commit~tee, which shal then
undertake such steps as may be necessary to correct such unfair
ARTICLE IX--CHANGES IN THE CODE
SECTION 1. This code and all provisions thereof are expressly made
subject to the right of the President, in accordance with the provi-
sion of Clause: 10 (b) of the National Industrial Recovery Act, from
time to time to cancel or modify anyT~ order, approval, license, rule,
or regulation issued under T~itle I of said Act, and specifically to the
right of the President to cancel or mlodifyT his approval of this code
or any conditions imposed by him upon his approval thereof.
SEC. 2. The National Admlinistrative Committee shall, from time
to time, make such recommendations to the President for changes in
this code as it shall be au thorized to do by a majority of the votes cast
by the producers engaged in the industry~ governed by this code, after
each producer shall have been given a fair opportunity to vote upon
such change. Such vote mlay be by letter ballot.
SECTION 1. This code as approved by the President of the United
States shall become mandatory; upon all producers of asphaltic lime-
stone throughout the United States.