NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIRt COMPETITION
AND ROOFING INDUSTRY
AS APPROVED ON NOVEM~BER 6, 1933
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
Registry No. 1003--1-01
,~~R Joun PAIer
I. Executive Order
2. Letter of Transmittal
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933
UNIVERSITY OF FLORIDA
3 1262 08486 7604
This publication is for sale by the Superintendent of Documents, Government
Printing Offce, Washington, D.C., and by district offices of the Bureau of
Foreign and Domestic Comrmerce.
DISTRICT OFFICES OF THIE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 50-1 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Manss.: 1801 Custombouse.
Buffalo, N.Y.: Chamber of Commerce Buildling.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North WTells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Djetroit, M~ich.: 2213 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kanusas City, M~o.: 1023 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadwany.
Louisv~ille, Ky~.: 408 Federal Building.
Alemlibis, Tenn.: 2239 Federal Building.
M~inneapolis, Mlinn.: 213 Federnl Building.
New Orleans, La.: Rorom 225-A, Customhouse.
New York, N.Y'.: 734 Customhouse.
Norfolk, Va.: 406, East Plume Street.
Phliladlpll~hia. Pa.: 933 C~ommlercial Trust Building.
Pittsburgh, Pa.: Chamber of C"ommnerce Building.
Po~rtlandl, Oreg.: 215 N~ew Post Offce Building.
St. Louis, Mol.: 506i Olive Street.
San Franciscor, Onlif.: 310 Custombouse.
Seattle, Was~h.: 809 Federal Building.
(jODE OF IFAIH COMPETITION
AlSPHALT SHINGLE AND RoormaG 1\IANUFACTU~RING INDUSTRY
A~n aIpplication having b~een duly madle, p~ursuant, to and in full
c~omp~liance with the provisions of title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the Asphalt Shingle andc Roofing M/Ianufac-
turing Industry, and hearings having beeni heldi thereon. and the
Administr1ator h~aving rendered his report containing an analysis
of the said code of fair competition together with his recommenda-
tions and findlings w~ith respect thereto, andi the Admninistrator hav-
inga found that~ the said code of fair competition complies in all
respects with the pertinent p~rovisions of title I of said act and th~at
the requirements of clauses (1) and (2) of subsectioni (a) of sectipn
3 of the saidl act have been m~et:
NrOW', THE~REFORE, I, F~ranklin D. Roosevelt, Pre~sident of the
United States, pursunnt to th~e aluthorityv vested in me by title I of
the National Industrial Recovery Act, appr~oved June 16, 1933, and
otherwise, do approve the report a nd recommrendati ons and adopt the
findings~ of the Adlminist~r~ato and do order that t~he said code o~f fair
competition be and it is her~eby approved.
FRANKLIN D. ROOSEVELT.
THE T~HITE HOUSE,
N~ovem),be~r 6, 1.93.
Approval recommended :
Hoon S. JOHNSO8N,
NOVEMBnER 1, 1933.
The If'l~te House.
SIR: i. ThIIS is a report. on the Ciode of Fair Competition for the
Asphalt Shingle and Roofing M~anufacturing Industry' in the United
States as revised after the hearing conducted in WTashington on
Sep'tember 21, 1933, in accordance with the provisions of the Nat~iorial
Industrial Recovery Act.
PROVISIONS OF THE CODE AS TO HOURS, WAGES, AND
GENERAL LABO0R PROVISIONS
ATHICLE III -1OURS
2. This article provides that. no employee shall be permitted to
wor~k in exce~ss of fortyr (40) hours in any seven (7) day period
or eight (8) hours in any twenty-four (24) hour period or more
thanll six (6) days in any seven (7) dlay period, except that such
hiourly! and dnily limitations do not apply to employees engaged in
professio~nal, executive, administrative or supervisory work w~ho re-
ceive comnpensationl in excess of thirty-five ($35.00) dollars p~er wTeekr,
or-' to ouitsid~e salesmen. Furither, such hourly and daily limitations
do not apply to employees on emergency maintenance or emergency
repair wFork inivolving break~dow~ns or the protection of life or prop-
er~ty. Furthler, during periods of seasonal peaks, employees may be
p~ermnitted to work in excess of forty (40) hours in any seven (7)
day periodl or eight (8) hours in any twenty-four (24) hour period,
provided thatf during any thirty (30) dayS periodl t~he number of hours
of emnploymenti aer~ages not. more than fortyr (40) hours in any
seven (7) day p-eriod.
inEmpoyess o engaged snas chmen mnay be permitted to work not
in eces offify-sx (6) our~s in any seven (7) day period and
employees engagedl solely as firemen in mlanufacturing operations
may b~e permiittedl to vor~k not in excess of forty-four (44) hours in
anyr seven (7) day period nor eight (8) hours in any twen~ty-four
(24) hocur period.
Ovecrtimne payment of not less than one and one half (1!.6) times
the normal rante is provided for such hours worked in excess of thie
miaximumi number of hours provided d by the Code.
ARTICLE I\'- YAGJES
3. The minimum hourly, rate of comlpensation of for.ty-five ($0n.45)
cents per hour is provided for emnployees in the Pacific C'oast Section
and for~ty ($0.40) cents per hour in the Northern Section and thirty-
seven andi one half ($0.375) cents per hiour in the Southern Section,
except that accounting, clerical, or office employees: may be paid at
not less than t~he rate of fifteen ($15.00) dollars per week. It is also
provided that, office boys and office girls mnay be paid not less than
eighty (80%) percent of the mninimium w~eekly rate for the account-
ing, clerical, or office employees, but the total number of such office~
boys and girls paid less than the: rate of fifteen ($15.00) dollars per
week is limited not t~o exceed three (39), percent of'~ theZ total number
of accounting, clerical, or office emnploee~s emplloyed by anly one em-
ployer during a calendar month. A mlinimumn wagbe of thirty-five
($0.35) cents p~er hour has b~een p7rovided fo-r female employ-,'ees other
than~ female accoulnting, clerical, or office empllloy)ees but this provi-
sion is not. to be considered as a discrimination by reason of sex, and
in alny case where female employees do the satme work~ or perform
subtstantiallyr t~he same duties as male emp~loyees the m~inimulm rate
of pay applicable to miale emlployees is likewise~ applied to female
This article establishes a miiinimum rate of pay, regardless of
whether the emnployee is compensated on a time rate, piecework, or
This article also~ provides for an eqiuitable adjustment of all wage
rates above thle miinimum.
ARTICLE Vr-GCENERA\L LBon Pu~ovisows
4., This article priovides that no person under sixteen (16) years of
age shall be employed in the industry, nor anyone, under eighteen
(18) vears of age in mnunrfacturingn operations.
This article embodies subpalnragraph (a) of section 7 of title I of
the National Inldustrial Recoverly Act..
TIhis article further provides that employers shall not reclassify
employees or the duties of occupa~tions so as to defeat the! purpose
of the act, and that each emnployer shall post adequate notices that
ealch employee mnay, at his r~equest, obtain, without charge, a copy of
the particular codle app~licab~le to his w~ork.
EC'ONrOMIC: EFFECT OF THE CODE
5. The members of this indlustryr manufacture felt base (made of
orgamec or inorganic fibres), sp~halt. .shing~les, sidingr and roofings,
roll roofings (includling cap andi base sheets and house shleathings),
starting strips, tarred felt, andl asphalt felt.
The report of the Researchl andl Planninlg Division indicates that,
according to the Censu~s of Manlufactu~res, there were eighty-three
(83) establishmnentsu inl 1931 manlufacturing t~he products of this in-
dustry and in 1933 there wTer~e sixty-five (65) establishments operating
t~o a greater or lesser ert~ent. During this intervanl it is apparent that
eighteen (18) establishments abandoned operations. The number of
factory employees as of July 1, 1933, excludtingi those engaged in the
tar and felt indlustryv, wFas 5,702, or about sev~enty-one (717'o) per-
cent of the 1928 total. The capital investment in this industryS has
shrunki from about sixty-eigoht ($68,000.000.00) million dollars.i, as of
January 1, 1929, to about fifty-seven ($,57,000,000.00)) million dollars,
as of Januaryr 1, 1933, in accordance with this same report.
Article. II'I of the code provides for a mnaximumn of forty (40)
hours in any seven (T) day wor~k period. If the 1933 base is used as a
level of production (278,000 man-hiours), a forty (4-0) hour work
weeki should absorb app~roximately 6,950 employees, or fifteen (15%0)
percent more than thle number employed in 1929.
In accordance w-ithn the report of the Research and Planning Di-
vision, approximately nineteen (1991~) percent of the factory
employees of thirty-three (33) reporting establishments (reporting
about fifty (50%T) percent of the total in 1933) received less than
thir~ty-fie ($0.35) cents per hour. Article IV of the code establishes
a mlinlimumll of forty-five ($0.45) cents per hour in the Pacific coast
section, forty ($0.40) cents for the! northern section and thlirty-seven
and one hlalf ($0.37i5) cents for the southern section.
The Administrator finds that:
(a) The code as recommended complies in all respects w~ithn the
mandatory provisions of title I of the act, including, without limni-
tation, subsection (a) of section '7 and subsection (b) of section 10
thereof, and that
(b) The applicant group imposes no inequitable restrictions on
admission to membhersrhip thereini and is truly representative of the
Asphalt Shing~le and Roofing Manufacturing Industry~; and that
(c) Thle code as recommended is not designed to promote monop-
olies or to eliminate or oppress small enterprises andl will not operate
to discrimiinate against them, and will tend to effectuate the policy of
title I of thie National Industrial Recovery Alct.
It is recommended, therefore, that this cod:e be adopted.
Honc S. JoaNson,
A dmin istrlator.
CODE OF FAIR COMPETITION FOR THE ASPHALT SHINGLE
AND ROOFING M/ANUFACTURINTG INDUSTRY
To effectuate the: policies of Title I of the Nationaul Industrial
Recovery Act, th~e following provisions Are submiittedl as a2 Codle of
Fair Competit~ion for the Asphalt SC~hingle anlld Roofing Manufac-
turing Industry, andl upon approval by the Presidtent shall be the
standard of fair competition for such indlustry and shall be binding
upon every member thereof.
SECTION 1. The term '' industry as used herein includes thle pro-
ducing in the United States, and the selling by the producer of the
products or any of them.
SEc. 2. The ter~m employee as used herein includes anyone
engaged in the industry in any ca~pacityr receiving compensation
for his services, irr~espective of the nature or method of payment of
SEC. 3. The tOei ~ 'OmplOVef' aS USerd herein includes anyone in
the industry by whomn any such employee is compensated or employed.
SEC. 4i. The term "' member of the industry as used herein includes
anyone engaagred in th~e indlustry as abov~e defined, either as an
employer or on his ow~n behalf.
SEc. 5. The term "' members of the Code "` as used her~ein includes
any member of the Industry who shall' expressly signify assent to
this Codez, in the manner provided in Section 2 (b,) of Article V'I,
S~EC. 6. Thle termn' prOdlucts "! as used herein means and includes
felt-base madee of organic or inorganic fibres), asphalt shingles,
sidings and r~oofinlgs, roll r~oofingas (including cap and base sheets
and house sheathing), starting strips, starred fealt mand asp haltelt.
SEC. 7. The term trade "! as usedhrnsalmenllhnes
of dlistribution of the products.
SEC. E. The term the Institute as used herein meanls the Asphalt
Shingle and Roofing TInstitute.
SEc. 9. The terms President ", "Adct ",? andl ''Administratorr as
used herein shall' mean respectively the President of th~e United
States, the National Industrial Recov~ery Act, and th~e Admninistratorr
of Title I of said Act.
SEc. 10. The termu Unitedl States as used herein means all of
the territory of thle United States of America on the North Ameri-
can Continent and the Territory of Haw~aii.
SEC. 11. The term Norther~n Section as used hierein means:
lifaine, New Hamnpshire, Vermont, Alassachusietts, Rhode Island,
Manryland, Connecticut., New York,) New Jersey, Pennsylvania, Dela-
wasre, V'irgrinia. W-~est Vir~ginia, Mlinnesota, Ohio, Kent~ucky, Michi-
gan1, Indiana, Nebr~nska, Kan~insas W~isconsin, Illinois, M~issouri, Iowa,
North Dukota, SCouth Duklota, the State of Miontann, except the
Counties w~est of and including Hill, Chouteau, Fergus, Petroleum,
M~ussel She~lll, Y~ellowstone, jt~illwat~er, and Park; t~he Stat~e of WCIyo-
raiing, except the Covunties West of and including Big Hor~n, Wa'~sh-
akiio, Hot Springs, Par~k, Yellowstone National Park, Teton, Sublette,
andc Albany; andt the State of C~olorado, except the Counties W~est
of and inicludingr Rio Bllanco, Garfield, Enale, Lake, Chalfee, Gunni-
son, Ourlly1, Sun MIiguel,, Dolores, and Mlontezumla.
SEC. 12. The term c' Southern Sectioni as used herein means: the
State of Ne M~exico, except the Counties of MfcKinley, Cathon,
Hidalgo, andl Luna; the States of North Carolina, Tennessee, Ar-
kansas, Oklahoma, Texas, and the States south thereof.
SEC. 13. The termn Pacific Const Sect~ion as used herein means
th~e terrlitory Wlest of the Northern and Southiern sections as above
defined, including thle territories of Alaska andl Hawaii.
SCECTION 1_. NO emnployee shall be permitted to w~ork in excess of
forty (410) hours in any! seven (T) day period, or eight (8) hours
inr anly twenty-four (24) hour period, nor more thani six (6) days in
any seven (7) day period, except that suchi hourly and2 daily lim~i-
tations -shall not ap~ply to:
(a) ~Emp-loyees~c engaged in professional, executive, administrative
or suiperviisorywonrk~ who rrcivep comnpenst~ion exceedling thirty-five
($35.00) dollars per w~eek, or to outside salesm~en;
(b) Emnployrees on emergency manint-enance or emergency repair
work involving beakdlowns or the protection of life or property,
but in. an suchi special case at least one and one third (11's~) times the
noirmal1 rate sha~ll be pa~id for hours workred~ in excess of the maximum
number of hours herein provided:
(c) Periods of seasonal requ-llirements during w-hich~ employees
rnay b~e permittedl to wor~k in ex-cess of forty (4l0) hours in any seven
(7) day periodl or eig~t. (8) hours in any twenty-four (24) hour
period pr~ovidedl that during any~ thirty (30) day period th~e number
of hours of empl~loymentgn shall average not miore than the miaximnum
numberr l of hours for any seven (r) dlay p~eriod- her~ein p~rovidedl; and
providled-, further, thati in any such cases emlployees shall be paid
not less than onle anid one half: (11.') times the normal rate for any
such hours worked i n excecs of thle ma ximnum number of hours herein
(d) Emnploy-ees engangedl as wTatchmenn who may be permitted t~o
work not in excess of fifty-six (56) hours in any seven (7) day
(e) Em~nployees engagedl solely as firemen in manufacturing opera-
tions w-ho may be permittedl to w~ork not in excess of forty-four (44)
hours in any seven (7) day period and not in excess; of eight (8)
hours in any twrenty-four ("-4) hour period.
SEC. 2. No employer shall ~nowingaly permit an employee to wFork~
for one or more employers for a total number of hours or dlays in
the agrgt exedn the foregoing limitations.
ARTICLE I7- AG;SES
SECTnoN 1. Subject to the provisions of Section 3 of this Article
IV, no emnployee shall be paid at less than the hourly rate provided
;,i as follows:
(a) For employees in the Pacifle Const Section, at 80.45 per hiour;
(b) For emiployvees in the N\or~ther~n Secltion, at t80.40~ per hiour;
(c) For employees in the Souithern Section. at $0;.3r5 per' hour;
except thiat accounting, clerical, or office employees may be paid at
not less than the rate of fifteen dollars ($15.00) per week; provoided,
however, that office boys and office girls mayr be paidot, less than
eighty (80) per cent of such mninimumi wTeekly rate, but the total num-
ber of such office boyvs and girls paid at less than the rante of fifteen
dollars ($15.00) per w-eek~ by any employer in any calendar month
shall not exceed three (3) per cent of the total number of such em-
iployees employed by any sucih employer during such calendar
SEC. e. ThilS Article establishes a mninimnum rate of payS regardless
of whether an employee is compensated onl a timne rate, piecewoirk;, or~on ~
:ii other b~asis.
:: cSEC. 3. T11e muiillllmu wage w-hich may~ be paid byl employers to
any female employee. other thnn female accounting, cler~ica~l, or of-
fice emlployees, shall be at the rante of thiirty.-fiv.e cents (40.35) per
i hour; provided~, that this provision shall not in annyr wy be considered
as a discrimiination by reason of sex: and providled, further, where
in any case female emnployeesr do th~e samne w~ork or per~forml substan-
: tially the same duties as male emiployees thle miiinimum rate of pay
applienble to male employees shall likewise ap~plyv to female emr-
i. ~SEc.41. Employers shall not reduce the rates of wagers for employees
wi; hosre rates arec now~ in exce~ss of the minimlum ra~te of wav~es hlerein
providedi (notwrith~sta7nding that the numbel~r of hours workedl in suich
emp~loyTment mayv be hereby decr~eased) and where in any case an
employer has not inc~reasedi the raftes o~f wag~es for such emnploye~es
prior to the effective date of thiis Code byg an equitable read~justm~ent
of all such wrage rates such employee 51hall read~just~ all -uchi wnage
rates. This provision sha~ll be interprettedl in thle samne manner that:
paragraph 7i of the President's R~eemloylr,~ment Agreemnent has been
interpreted by thec Administrator in Interprjletations No~s. 1 and3 2).
A~RTIC'LE T~-CarEN'ER L Lanonr Pnois;IOKS
SECTION 1. No person under isiteen (16) years of aget shall be
employed in the indlustry, nor anyone under eighteen (18) y~ears of
age in manufacturing operations. In any State on emnployecr shall
be deemed to hiave compliedl wiith this prov'ision if he shall have on
file a certificate dluly issued by thle authority empoweredl to issue
employment certificates showingg that the em~ployee is of th~e requir~ed
SEC. 2. Employees shall have the right to orgalnize andl bargain
collectively through representatives of their owni choosing, andi shall
be free from the interference, r~estraint, or coercion of employers of
Inbor, or their agents, in the designation of such representatives or:
in self-orgaanization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection.
SEC. 3. NO emiplovee Und HO One Seeklng employment shall be
required as a condition of emnploymnent to join any company union,
or to refrain from joining, organizing, or assisting a labor organ-
ization of his own choosing.
SEc. 4l. Emnployers shall comuply with the mia'ximum hours of labor,
miinimuim rates of payr, act other conditions of employment approved
or pr~escr~ibedl by the President.
S~EC. 5. Within eachi State this Code shall not supercede any laws
of such State imlposingS more stringent requirements on employers ,
regulating the age of employees, wages, hours of work, safety or ;.
health, fire or general working conditions than under this Code.
SEC. 6,. Employers shall not reclassify employees or disties of oc-
cupations performed by employees so as to defeat the purpose of
SEI;c. 7. Each emnployer shall post adequate notices that each em-
ployee may~, at. his r~equest., obtain without. charge a copy of the
particular Code applicable to his work.
To further effectuate the policies of th~e Act, a Code Authority is
her~eby constituted to cooperate with the Admistrator in the ad-
mlinistration of this Code.
SECTION 1. Organization and constitutional of the Code Authiority:
(a) The Code Authority shall consist of five (5) individuals, or
suchi other number as miay be ap~proved' from time to time by the
President., to be selected as hereinafter set forth. The President, in
his dliscretion, may appoint not more than three (3) additional
members, w~ithoult vote and without expense to the industry to repre-
sent the President or such gr~oupss or interests as he may designate.
(b) All voting members of the Code Authority shall be selected
from members of th~e Code and shall be elected by a two-thirds vote
of all members of the Code. Three (3) of said members shall be
selected from members of the Institute and two (r2) of said members
shall b~e selected from nonmembers of the Institute at the time of the
approval of the Code by the President.
(c) Eachl trade or indlustrial association directly or indirectly par-
ticip~atingr in the selection or activities of the Ciode Authority shall:
(1) Imnpose no inequitable restrictions on memnbersh~ip and (2) sub-
mit. to the Admninistrator true copies of its articles of association,
by'laws, regulation, andl any amndmerl lnts s whe1n made thereto, to-
geth~er with such~ other information as to membership, organization,
and activitiesi as the Admiinistrator miay deemn necessary to effectuanp
thle 3urp)ose of the Act.
(d) In order that the Code Auth!ority shall at all times be truly? I:
representative of the industry andc in other respects comply i~ h
provisions of the Act,? the Admninistrator may provide such hearing
as he may deem proper; and thereafter if he shalll find that the Code
Authority is not truly representative or does not in other respects
com~ply withl the provisionsi of the Act! miay require an appropriate
.:i modification in the method of selection of the Code A~uth~ority; pro-
vided-, that no such modificatio ni shall permit rlnnyoner not a membiier
of the ;rindutryr to becorme a votiingr membei r of the C'ode Authlority.
I~~ (e) The Code Authority may adopt its ownn rulles; of procedure andrl
may delegate its authority, or some part thereof, to suich agntcicies
or comm ittees as it may select, b~ut all contacts wit h thle Admi~nli isrta tor
shall be by the Codle A~uthority. A committee of three (3) members
a of the Clode selected by a majority vote of th~e memlbers~ of the Codle
:I- located in the Pacific Coast Section shall1 be ap~pointed by thle Code
Atho~1rnditytoadinite theC provIiSions of the Code inl the Paif~ic
SEC. 2. Tler C'Ode A~uthor~ity shall have th~e followings duties and~
powersr to the extent permitted by the ALct, subject to the right of'
the A~dministrantor onl reviews to disapprove or modify any action
taken by thle Code AuthorityT:
B ~(a) W~ith a view to keeping the President and- the m-embiers of the
industry informed as to the observance or nonob~servanice of thle
Code, and as to whether the miember~s of the industry are taking
appropriate steps to effectuate the dleclar~ed policy of the Aict, the
Code Authority shall report to the Admninist~tratr at. such times
and concerning such conditions in the industry as he many from time
to time require and each member of the Indlustry shall file with
the Code Authority, such cer~tifiedl reports wTith~ respect to w-ages, hourrs
of labor, conditions of employmlenlt, n~umber~ of emiployees, and other
ml~ii ratter~s as mlay be deemed pertinent by the Codle Author~ity,, or b~y
the Aldministrator, to the proper administration of the Cod~e.
(b3) 1\Iembers of the industry shall be entitled to panrticipate in
and share the benefits o-f thle activities of the Codle Authlority' andc to
participate in the selection of the mecmber~s thereof by signing and
i deliverina to the President of the Institute a! letter in the formn as set
9;nvnforth in Schedlule "'A! annexedl her~eto andl by\ assenting oadcm
plying, with the r~equire~mentts; of this C'ode andc sustaining~ their
j;. reasonable share of the expenses of its admninistrantio nl. The reanso-,1
able share of the expenses of aIdministration! shall b~e deitermninedl by
the C~ode Aurthor~ityl on thle bas~is of vohul.nle of bjuiiness andl or -sch
other factors as mary be d-eemed"r equitab~le to be taknl~ inito
";:: (c) All confidential information o~f any- nature whlic~h may! be,( re-
questedl by thle Code Authority clhall 1 collected- through' J an ag~nc'y
or agencies selected by the said Coder Author~1ity andl~ such inlformaltionl
shall be kept confidential by? the agncyl~~!, except whenrl requllired~ by
the Code Authority for the propler adrdniil.tr tionI of thet Corde,
.and with t~he further exceptioni thant all such informaltion shall bet
fully available to the A~dmniii strator at all timesc.
(d) The C~ode Authlority shall designate an ag~ent or ag~rents, noct
members of the industry, to investigate complaints of violations o~f
the Code. The members of the Code shall facilitate sulchl invectiga-
tions by producingr all pertinent dlata including correspondlence books
and accounts relating to alleged violations for examlinationn by suchl
authorized agent and by furnishing relevant information. All such
pertinent information shall be kiept confidlential by the agent or
agents except that, in the event of any such violationi being substan-
tiated, the Code Authority shall be informedl and ma1y present evi-
dence thereof to t.he Administrat~or, or to such department, agencyg, lil
or judicial branch of the Gov-ernment, as he may designate. If, upon.
such investigation, any complaint of a violation of the Code sheH2.'
be substantiated in any material respect., the member of the Codae,
guilty of such violation shall pay the cost of the investigation, other.
wise the cost shall be borne by the complainant member of the Code.i~:
(e) The Code Authority shall make a study of conditions in the
Indlustry and many thereafter, from time to timie, make such recom-
mendations to the ALdministrator as it deems desirable to further
the policies of the Act with respect to, but without limitation: '~1
(i) Uniformi cost accounitinga;
(ii) Limnitation of production;
(uxi) Lulnitation of new equipment;
(iv~) Indlustry merchanldising plans;
(v) Simplification andl standlardizaat~ion;
( vi) Systemn of exchange of credit information;
(vii) Inequalities affecting~ the stability of the Industry;
which recommendations, after such notice and hearing as the Ad-
minist~rator m~ayv specify, shall become effective on approval by the .
Admiinistrator or the President, with the same force and effect as
if originally made a part hereof; provided, however, that no such
recommendations shall be made by the Code Authority unless and
until the members of the Code in the. Section to which such recom-
mendations are applicable, have assented thereto. Such assent shall
be by a two thirds vote in either the Northern or Southern Section,
and by a majority vote in the Pacific Section.
(f) Any interested party shall hiave the right of complaint to
the Code Authority andi a promlpt hearing and decision thereon,
under such rules and regulations as it shall prescribe, in respect to
any act of any~ agent or agency designated by the Code Authority
to act inl its behalf.
(g) Anyr interested partly shall have the right to appeal to the
Administrator, under such rulers and regulations as he shall prescribe,
with respect to any~ decision, rule, regulation, or~der, or finding made
by the Code Authority..
(hr) In addition to the information required to be submitted to
the C'ode Authority, there shall be furnished to government agencies
such statistical information~ as the Administrator may deem necessary
for the purposes recited in Section 3 (a) of the Act.
(i) Nothing contained in the Code shall be deemed to constitute.
any of t~he members thereof partners for any purpose. No member.
of the Code shall be liable in any manner to anyone for the act of
any mem~nber or agrent of the Code Authority performed pursuant to.
the prov.isions; of this C~ode.o No member of the Code and no members~
or agency of the Code Author~ity shall be liable to anyone or in any I
manner other than as provided in the Act, or in the Code, for any act
performned in accordannce with, or for any failure to act required by,
the provtisions of the Code.
ARTICLE VTII-PUBT1LICITY OF PRIcES, TERMrS, AND CONDITIONS OF SALE
SECTION i. ZTflthinl ten (10) davY after the effective date of this
Code each member of the Industi-y shall publish his prices, terms, ''
and conditions of sale on all his prIoducts to his trade, ench class of
trade: being fur~nishedl with the pricess, termils, and~ cond~itionls of sale
affecting each sucrh class of tendr~e in the terr~itory to> whichl such
prices, sterns, and conditions of sale a1Pply. Cloincidlent with such
publication, each member of the Inidustry shlall file w~ith thle Code
Authority and the Codle Author~ity shall immedrtiately distr~ibute to
all members of th~e Industry,! a comnpletee scheduloe of suchl pries,
terms, andl conditions of sale.
S~c. 2. In the event of anly channge by any mlemlber of the Ind~ustry
in any price, termi, or condition of sale, he shall file full anld complete
copies of every~ suchl change with the Code A~uthority withinl such
periods as may have been dlesignated by the Code Aulthoirit but not
exceeding five (5) day~s in advance of the effective date of any such
change. Copies thereof shall be immediately dlistrib~uted by the Code
Authority to the members of the Industry. On the effective date of
any such change, the Industryr members shall publish the samne to the
trade concerned andl coincidlentally file such information in the office
designated by the Code Authlorityy for immnediate distribution by thetr
Code Aiuthority to the mIembers of the Indulrstry~.
SEC. ;3. NO mnember of the Indlustry shall sell, pay a rebate, or
allow a2 deduction at any timie to any~ p~erson except in anccordancel
with his prices, terms, and conditions of sale then in effect. and pub-
lished in the mannner dlescr~ibedl herein. Eac-h miember of the Industry
shall have the right, indcivridlunly, to pulblishl new prices, terms, and
conditions of sale, from timne to timne, as h~erein pirovidedl.
ARTICLE VIII--PUBLICITY OF TRA-DE UAlrLIFICATIO NS
SECTION 1. Within ten (10) days after the effective dlate of this
Code, each member of the Indcustry shall publlish to his trade and
file w~ithl thle Code Aunthority all qualifications which hav\e been
established by himi to dleterminie thle prices! terms, or conditions of
sale m~ade ap~plicable by him to thle ditlerent classes of his tr~ade,
for products covered by this C~ode. He shall publish to thle tr~ade
him in such qualifient.ions andi any additt-ional qulfetos
Each members shall file at such times, in such manlinerand t uc
placees as mnay be designated by the Code Aulthority, the lnames and
locations of his tradee, rooupedl acordingr to his- ownl stately qualifica-
tlions then in effect. The names and locations so, filed shall be avail-
able to the trade and to~ the members of the Indrustr., provided, thlat
F the name of the mannufacturer submitting any such nafmesi and local-
tions shall not. be disclosed writhouit consfenit except to the extent
Necessary to prevent violations of this Article.
ARTICLE IS--TRADE PRACTICES
The following practices constitute unfair methods of competition
for members of the Industry and are prohibited:
SECTION 1. False MIar~kingr or Banntdinr.--The false manrkingr or
branding of any product of the Industry which has the tendency
: to mislead or deceive customers or prospective customnersi, whether
as to graade, quality, quantity, substance, ch~aracter, nature, origin,
size, finish, or preparation of any product of the I-ndustry, or~
SEC, L2. IAM/8/'ejfff8FR/G.1/nOR' OFas o8/8 &P 98eadinzg Advertisiag~
The making or k-nowvingly permitting to be made or published anyi;
false, materially inaccurate, or deceptive statement by way of adverl
tisement or. otherwise, whether concerning t~he trade, quality, quan-
tityl substance, character, nature, origin, size, finish, or preparation~~
of any product of the Industry, or the credit terms, values, policies,
or services of any~ member of the Industry, or otherwise, having the:
tendlency or capacity to mislead or deceive customers or prospective
SEc'. 3. Commercial: Bribe~ry.-IDirectly or indirectly to give or-
permlit to be given, or offer to give, money or anything of value to
agents, employees, or representatives of customers or prospective
customers, or to agents, employees, or representatives of competir,
tors' customers or prospective customers, without the knowledge of
their employers or principals, as an inducement to influence their
employers or principals to purchase or contract to purchase from- the
mankers of such gift or offer, or to influence such employers or
principals to refrain fromt dealing or contracting to deal with
com pet itors.
SEC. -1. Intcrfe~renc 8 rilth COntlcrflC/MG RelatiONS.-;Ih~itilORsif
indlucing or attempting to induce the breach of an existing contract
between a competitor and his customer or source of supply, involving
the purchase of specific quantities of the products and/'or their com-
ponent parts or manterials, or interfering with or obstructing the .i
performance of any such contract.
SEC., 5. Sclrtc~ Rebattes.--The secret payment or allowance of
rebates, refundse, commiissions, credits, or unearned discounts, whether
ini th~e formi of mioniey or otherwise, or the secret extension to certain
purchasers of special services or privileges not extended to all pur-
chasers on like terms and conditions.
SEC. 6). (I0/lil Of P'i~zes, Premiumns, o~r Gifts.--The offering or
giving of prizes, premiiumns, or gifts in connection with the sale of
products, or as an inducement thereto, by any scheme which involves-'
lottery! misrepresentation, or fraud.
S EC. I. UOfG7R2Cfifoli..-'I le de fa matlOH Of com petitors by falsely -:
imnputing to theml dishonorable conduct., inability to perform con-
tracts, questionable credit standing, or byl other false representations:i
or by' the false dlisparagement. of the grade or quality of their goods.:
SEC. d. ThiffG/8 of Litigation.--The publishing or circularizmng of
threats or suits for infringement of patents or trade marks or of any~
others legal proceedings nlot in good faith, with the: tendency or effect
of harassing cormnptitors or intnimidating their customers.
SEc. 9. Espionauge of Comnpeti'tor1.- Securinga confidential informa- ;
tion concerning the business of a competitor by false or misleading
statement. or representation, by a false impersonation of one in
author~ity, by bribery1, or by any other unfair method.
SEC. 10). To sell for exp~ort unless the buyer has agred not to resell
the products within the United States.
the effect of any adjudication by the Cour~ts or holding by the F~ed-
eral Trade Commission on complaint, finding, and order, that any
practice or method is unfair, providing that such adjudiention or
holding is not inconsistent with any provision of the AIct or of this
SECTION 1. No provision of this Code shall b~e so appllied: as to
permit monop>olies or mlonop~olistic practices, or to~ eliminate, oppr~ess,
or discriminate against small ente~prises.
SEC. 2. Corporations shall be considleredl to be affiliated to any~ cor-
porate member of the IndlustlLry (hereinafter dlescribed~ as "' the parent
corporation "') which owns a manjority of the outstanding v.oting capi--
tal stock of the other. Any such parent corporation shanll b~e re~spoi-
sible for the observance by any alliliated corporation of all thle p~ro-
visions of Articles III, IV,? V, V'II, V'III, IX, X, andl XII o~f this
Code with respect. to the production andl or sale o~f thle pr~oducts
covered by this Cod'e, pr~oviled, that inl the event of thle provisions
of Articles VII andi VIII being observed by any such affiliatedl cor-
poration of such parent corporation, then; the parentst cor~poration
need not comply withl the Puiblicity reqluiremlents of Arlticle~ VII w~ith
respct to prices, terms, and conditions of sale mnade to such alffilialted
SEC. 3. Noth~ing contained in this Cod-e shall be constr~ued~ as pr~o-
hibiting anly memiber of the Indrustry froml exer~cisiinr all its andl or
their existing lawful patent rights, or as requir~ing~ any miembe r of
the Indlustry to do any~ act in conflict with the sterns of a~ny exiitingr
valid patent licensing agr'eement..
SEc. 4. ArticleS VI~I, VTIII, andl Artic~le XII shall niot apply1~ to
products expor'tedl from the Unitez d States.
SECTION 1. Tlils Codle arid1 All thle provisions thereof are expr~essly
made subject to thle right. of the Presidlent, in accordannce with the
provisions of subsection (b3) of Sc~tion 10), of tle A~ct, fromIl timel tol
timie to cancel or modify any order, appriovanl, license, r~ule, or regn-
lation issuedl under Title I of aid A-ct.
SEc. 2. By presentingr this Codle thet membe~i~rs f thle Indllstry a;;-
senting thereto do not ther~eby consent to any modifeationi the~iref
and they reserve the right t object individually or jointly to any~ siuch
SEc. 3. The pro~visions of the Code shall remain in etfeect unless
and until so modified or elimninatedl, or until thle expliration o~f tihe
Act; namely, June 16j, 1935, or sooner, if the Pr~e-ident shall, by
proclamation, or Congr~ess shall, b~y joint. resolution, clarl~~e thle
emergency recogrnizedl by Sectio~n 1, Title I, of ther Act ended~i.
ARTICLE 111I-SELLING BELOWV COST
SECTION I. It Shall constitute a violation of thiis Code for any
member of the InduLstr y to sell any! product at a net prlic~e which~ sha~ll
be below the saidl member's irc cs. Such~ dlir~ct cost shall
include the sum of the following items chargeable to the opera~itionl of
such member's business in conformity with sound _a~ccountingP
tice, during the preceding calendar month:
(A) Direct raw mlaterial cost (inclusive of transportation
(B) Direct labor cost, plus
(C) M~anufa~c~turing burden (inclusive of power aland steaml,;~
to~ry ov-erhead, maiintenance expense, technical control, factory
house, and factory shippiingr charges), plus
(D) F~ifteen (15) percent of thle Total Manufactured
(i.e., the sum of the items "A"? plus "' B plus C ")'; : -
providedl that. depreciation, taxes, insurance, reserves o.f ~i'ijry
ter, interest on investment, selling and administrative expenses,
lr~ior operating losses, likewise interest charges on funded ord
debt shall not be included in "' Manufacturing Burden "; and
vided, further, that any member of the Industry may sell
his own "' direct cost."' under the followinga circumsncstances
(a) to meet competition on prices established on products of
peting grade andl quality filed by another member of the Indu~
pursuant to Article VII hereof, and not directly or indirectly:
vestigatedi by the party desir~ing to meet such competition, or ,
(b) to meet comp Iet 1t ion mn violation of this rule concerning w
hie has miade complaint, to the Code Authority, or any author~i
agency thereof, but only pending action thereon.
ARTIcLE XIII--EFFECTIVE DA1TE
SECTION i. ThlS Code shall become effective on the second Mond
after its approval by the President..
Tile PRESIDENT, v
Asphalt Shringle and Roo/ingl Institute, L
% W'est li/5th Street, N~ew York-, N'ewL Y~ork.
DEAR Sla: The undersigned, desiring to become a member of the C
Fair Comlpetition of the Asp~halt Shiingle and Rooting Mianufacturing In ,~~a
a copy' of which is antnexed hereto manrked "A", hereby assents to all a
provisions of said Code.
In consideration of thle benefits conferred by such membership the U
signed agrees to become a member of the Code and agrees to be bound.
of the plrovisions thereof, effective as of the date on which the Code shallb
been approved by the President of the United States, or as of the date on
this letter shall have been delivered, if delivery thereof shall have been,'~j~
subsequent to the date onU which1 the Code shall hlave been approved
the Pr~esident. ~~:*
Very truly yours, ;