. <: .Registry No. 1002--1-01
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UNIVERSITY OF FLORIDA
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NAiOA ItCOVERY ADMINISTRATION
~~~ 'C D'E OF PFAIR COMPETITION
AS AiPPROVED ON NOVEMBER 1, 1983
PR SIDIENT ROOSEVELT
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1. Exeentive Order
2. Letter of TransmittaY ,' in
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This publication is for sale by the Superintendent of Documents, Government
Printing Offce, Washington, D.O., and by district offces of the Bureau of
Peorign and Domestic Commerce.
DISTRICT OFFICES OF THIE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, MZass.: 1801 Custombouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.:r Chamber of Commerce Building.
r Chicago, Ill.: Suite 1706, 201 North Wells Street.
C~leveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 2213 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kan~sas City, M~o.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
M~emphis, Tenn.: 229 Federal Building.
Minneapolis, M\Iinn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Custombouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 933 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Ortkg.: 215 New Post Office Building.
St. Louis, MC~o.: 506 Olive Street.
Ban Francisco, Ca~lif.: 310 Custombouse.
Battle, Wash.: 809 ~Federal Building.
CODE OF FAIR COMrPErTITON FOR THE ASBESTOS INDUSjTRY
An pplcaton avig ben ulymade, pursuant to and in full
compliance with the provisions of tteIo h ainlIdsra
Recovery Act, approved June 16, 1933, for my alpprova"l of a Code of
Fair Competition for the Asbestos Industry, and hearings having
been held thereon and the Administrator having rendered his report
containing an analysis of the said code of fair competition to~gether
with his recommendations and findings with respect thereto, and the
Administrator having found that the said code of fair competition
complies in all respects wvith the pertinent proisins o title of sabcidn
act and that the requirements o~f clauses(1an()ofsbeto
S(a) of section 3 of the said act havle been met:
NOW, THEREFORE, I, Franklin D. Roosevelt, Preside~nt of the
United States, pursuant to the authority vestedl in mre by title I of
the National Industrial Recovery Act, approved June lo, 19:33, and
otherwise. do adopt and approve the report and recommendations,
and findings of thle Admimistrator anl fdo order that the said code
of fair competition be and it is hereby approved.
FRANKLIN D. ROOSEV'ELT.
THIE WarrIE MOUSE,
N~ovemnbe~r 1. 1933.
Approval Recommended :
HUGH S. JoHNson,
OcrOBER 27, 1933.
The If'hite Houlse..
SmR: This is a report of the hearing on the Code of Fair Compe-
tit~ion for the Asbestos Industry of the United States, conducted in
W\ashington on October 19, 1933, in accordance with the provisions
of the National Industrial Recovery Act.
PROVrISIONS FOR HOURS AND WAGES
Employees in the Asbestos Industry are limited to a work week of
40 hours, except that to meet emergency production requirements, 48
hours per week; are permitted for six weeks in any six months' period
with time and one third for overtime over 8 hours per day. Over-
time pay has never previously been paid in this Industry, and is here
provided to restrict overtime work.
A tolerance of 10 percent over the 40 hours without overtime pay
is granted to care and maintenance men, watchmen, engineers, and
shipping employees, but for these classes of employees overtime at
time and one third is provided for all hours above 44 per week.
Highly skilled continuous-process workers may be permitted in
special cases to work up to 48 hours per week where the limiting of
hours would restrict production.
Outside salesmen and persons in a mananagerial capacity receive
more than $35.00 per week are not limited by the above hours o
labor, but all office employees receiving less than $35.00 per week are
limited to a maximum of 48 hours in any week and an average of 40
hours per week in any six-months' period.
The minimum wage prescribed for factory workers is 40 cents an
hour, except for light work not requiring the strength and skill of
male labor, where 35 cents per hour may be paid to female employees.
This is not considered as a discrimination against female employees,
and the provision is made that where female employees perform the
same class of work as male employees they shall receive the same
rates of pay. Office employees shall receive under this Code not less
than $15.00 per week in cities of over 500,000 population, $14.50 in
cities over 250,000, and $14.00 in cities under 250,000.
The Code provides that the wage rates of all employees receiving
more than the minimum rates shall be equitably. readjusted, and that
there shall be no evasion of the Code by reclassification of the fune-
tions of an employee.
No person under 16 years of age shall be employed in the Industry,
and no minor under 18 years is to be employed in hazardous occu- I
ECONOMIC EFFECT OF THE CODE
Until the passage of the National Recovery Act this Industry had
never been organized as a unit. The Industry comprises 58 com-
panies operating 71 plants and having a total invested capital above
$50,000,000. Its products are widely used as capital goods in1 the
chief basic industries of the country.
Employment in the Industry in 1929) was about 10,000, and~ had
declined to 59 percent in February 1933. Upon the adoption of the
40-hour week as prescribed in this Code employment rose to t)0 per-
cent of the 1929 level. About 4,000 persons have been reemlployedi
under the provisions of this Code. This represents appr~oximately a
In M~ay 1933, the average weekly wage in the Industry wFas $17.49.
Through the operation of the provisions of this Cod~e this average
was increased to $19.48, or an increase of about 10 percent in spite
of the shorter work week.
(a) The Code as recommended complies in all respects with the
pertinent provisions of Title I of the Act, including, wFithlout limlita-
tion, subsection (a) of Section 7 and subsection (b) of Section 10
thereof : and that
(b)sio The appica rouip imposes no inequitable restrictions on
admisio tomembrshp herein and is truly representative of the
(c) The Code as recommended is not designed to promote monop-
olies or to eliminate or oppress small enterprises andt will not operate
to discriminate against them, and will tend to ef~fectuate the policy
of Title I of the National Industr~ial Recovery Act.
It is recommended, therefore, that this Cod~e be approved.
HUGH S. JOHNSON,
CODE OF FAIR COMPETITION FOR THE ASBESTOS
AIRTICLE I PUMPOSES
To effectuate the policies of Title I of the N'ationial Ind-ustrial
RecoeryAct he olloirwprovisions are submitted as a Co~de of
Fair Competition for the seosIusrndunapoalb
the President such provisions shall be the standard of fair comnpe-
tition in this Industry.
Whenever used in this Code or in any schedule or suppl~>ement ap-
pertaining thereto, the terms enumlerated in this Article shall have
the meanings herein defined unless the context shl~nl othierw~ise clearly
SECTION 1. T~he term the President means the Presideltnt of the
United States of Atmerica.
SEC. 2. Thle term the Adcministrator means the administrator
of Title I of the National Industrial Recovery Act and at the timie
SEC. 3. The term the Act means the National Indlustrial Re-
covery Act as approved by the President, June 16, 1933.
SEc. 4. The term products mneans the products listed in Sched~-
ule I. hereto attached.
SEc. 5. The term the industry as used herein shall meani and
include the manufacture and sale by the manufacturer eithler by him-
self or by subsidiaries or affiliates of the manufacturer, of the pr~od-
ucts listed in Schedule I hereof.
SEc. 6. The term "' Division means a section of the asbestos indus-
try comprising a group of manufacturers wFho manufactulre and,'or
sell a group of related products as set forth in Schedcule I. A- manu-
facturer who manufactures products in more than one Division shall
be a member of each such Division.
SEC. 7. The term "L member of the industry means any person,
including without limitation any other legal entity, engaged in the
Asbestos Industry in the United States as defined in Section 5 above.
SEC. 8. The term employee means any person engaged in the
asbestos industry, as defined in Section 5 above, in any capacity in
the nature of employee, irrespective of the method of paymernt of
SEc. 9. The term "L employer means anyone by whom such em-
ployee is compensated.
SEc. 10. The term "L learner ", as used herein, means a person who
has had no previous experience in the manufacture of asbestos
products and whose employment as such shall not exceed six weeks.
SEc. 11. The term "L the Code means this Code and all amend-
teeoments thereof and all schedules and supplements appertaining
SEc. 12. The term "L member of the Code means any member of
the Asbestos Industry who shall become a member of the Code as i
hereinafter provided in Section 1 (c) of Article VI. ;i
SEC. 13. Thle term "i the effective date means the second Monday d
after the Code shall have been approved by the President.
SEc. 14. The term "L the Institute means the Asbestos Institute,
an unincorporated association having an office in the City of New
York, State of New York.
SE('. 15. Th~e "' Southern section means the States of North-Caro-
lina, Tennessee, Arkansas, Oklahoma, Texas, New Mexico, and the :
States south thereof. ji
S~Ec. 16. The "' Nort~hern section "' means that part of the United
States not included in the Southern section.
SEc. 17. Population for the purpose of the Code shall be deter-
minedl by reference to the 1930 Federal Census.
ARTICLE III--HorRS OF LABOR '~
SECTION 1. FRMOory emplOyeeS, mechanical workers, or artisans,
except as hereinafter provided in sections 2 to 4, inclusive, shall not
be employed (a) in excess of 40 hours per weekr, except that to meet
seasonal requirements or emergencies 48 hours per week for not;
more t~han 6 weeks in any six months' period shall be permitted if ;
the overage employment over the six months' period is not more
than 40 hours per week; (b) in excess of 8 hours in any 24-hour
period, except that to meet seasonal requirements or emergencies
more than 8 hours may be worked, provided time and one third is -
paid for overtime in any one day. -
SEc. 2. There shall be a tolerance of 10% additional hours for()
employees engaged in the preparation, care and maintenance o
plant, machinery, and production facilities, (b) watchmen, firemen,
and engineers, and (c) shippers and delivery employees; provided,
however, that any such work by such employees in excess of an
average of 44 hours per week over a six weeks' period shall be
compensated for at the rate of time and one third.
SEc. 3. The limitation as to hours of labor in any 24 hours shall
not apply to very special cases where restriction of hours of labor of
highly skilled workers in continuous processes would unavoidably
reduce production; provided, however, that employees in such cases
shall not work more than 48 hours in any one week.
SEC. 4. 1118 limitation as to hours of labor shall not apply (a ) to
outside sales or sales-service men, technicians (highly skilled factory
workers are not to be classed as technicians), nor to persons in a
managerial, executive, or supervisory capacity who receive more than
$35.00 per week (foremen regularly engagedl in manual labor shall
not be considered to be in such supervisory capacity), nor (b) to
employees engaged in emergency maintenance or repair work neces-
sary because of breakdowns or involving danger to life and prop-
erty, providing that such emergency overtime work in excess of 48
hours in any one week shall be paid for at the rate of time and
SEc. 5. No employer shanl work any accounting, clerical,. office,
inside sales, or other employee not provided for other wise inl ths
Article III who receives less than $35.00 per week, more than an
average of 40 hours per week during a six-month period, nor more
than 48 hours per weekr in any one week.
SEc. 6. No employee shall be permitted to work a total number
of hours in excess of the prescribed number, w~hethler employed by
one or more employers.
ARTICLE IV-MBIINInu~ WA~GES
SECTION 1. Except as provided in Sections 2 to 6 below, the mini-
mum wages that shall be paid to factory workerrs in the Northerri
section by any employer shall be at the rate of 40 cents per hour or of
$16.00-per week of 40 hours of labor; except that for such light wcork
as does not usually require the strength and skill of male labor, and
for which male labor has not been used, thte minimum rate paid to
female employees may be at the rate of 35 cents per hour or at $14.00
per week of 40 hours of labor.
SEc. 2. In the Southern section the above-mentioned mliniumun
rates shall be 21,/2 cents per hour lower.
SEc. 3. The above Sections 1 and 2 establish minimum rates of pay,
regardless of whether t~he employee is paid a time rate or for piece-
SEc. 4. The minimum wage that. shall be paid by employers to any
accounting, clerical, office, sales employee mn any office, department, or
establishment, or other employee not provided for otherwise in thlis
Article IV, shall be at the followingr rates in cities of the sizes listed,
below and their immediate trade areas:
Over 500,000 population, not less than $15~.00 per week.
Between 250,000 and 500,000O, not less than $14.50 per week.
Under 250,000 population, not less than $14.00 per week.
SEC. 5. No employees in the classes mentioned in Section 4 of this
article shall have their compensation reduced on account of any reduc-
tion in their weekly hours of employment made because of the require-
ments of Section 5, Article III.
SEc. 6. The minimum rate of pay paid to office or messenger boys
and girls and learners (the latter for not over the six wePeks' period
specified in the definition of learners) may, in the case of those m~em-
bers of the Industry where the total of such classes never exnceed
5%0 of their total employees, be 205% less than the rates specified in
Sections 1 and 2 above for learners, and Section 4 above for office
or messenger boys and girls.
SEC. 7. No distinction in rates shall be made betwcieen male and
female employees where the same class of wolrk is nprerfrmed, regard-
less of whether compensation is calculated on an hourly weekly,
monthly, or pieceworkz basis.
SEc. 8. Unless such readjustment has already been made because
of the operation of the President's Reemployment Agreemnent, the
wage rates of all employees receiving more than the minimumu rates
prescribed above, but less than $35.00 per week, shall be equitably
SEC. 9. There shall be no evasion of the Code by~ny employer b
reclassification of the functions of an employee. An employee shal
not be included in one of the classifications exempted from the pro-
visions of this Code unless the identical functions were identically
classified on June 16, 1933.
ARTICLE V CTITLD LABOR
No person under 16 years of age shall be employed in the Industry,
and no person under 18 years of age engaged In unsanitary occu-
_pations or when operating hazardous manufacturing machinery.
To further effectuate the policies of the Act, a Code Authority
is hereby set up to cooperate with the Administrator in the atdminis-
trat~ion of the Code.
SECTION 1. Organization and constitution of the Code Authority.
(a) The Code Authority shall consist of six voting members
selected as specified in Article VI, Section 1 (e), and su~ch additional
members, if any, not exceedlingr three, as shall be appointed by the
President. Such additional members shall not be vesjted with. voting
(b) F~or purposes of administering the Code and selecting meml-
bers of the Code A8uthority, the Asbestos Industry is divided into
the following dlivisions:,
Asbestos Paper and Allied Products Division.
Asbestos Cemnent P~roducts Division.
Asbestos MIagnesia Products Division.
Alsbesjtos Tex'tile Products Division.
Asb~estos ,Brake-Lining and Related Friction Products Division.
The products manufactured by members of each of said Divisions
are set forth under the designated Divisions in Schedule I hereto
(c) Every memberr of the Industry shall be eligible to member-
ship in the Code and there shall be no inequitable restrictions upoixr
such.. membe rsh ip. Any member of the Industry desiring to become
a member of the Code maay do so by signing and delivering to the
Institute or to the Code Aut~hority a letter substantially in the
form set forth in Schledule II, annexed hereto. .
(d) Every member of the Industry who manufactures one or more
~of the products listed in Schedule I under a designated Division
shall be a member of such Division.
(e) At least five voting members of the Code Authority shall :
be selected from members of the Code. One votine member shaUl
be elected by a, twfo-thirds vote of the members 'oP each Division
o-f the Code. ~A democratic (majority) method of election and term
of ofltice shall be determined by the members of each Division. The
sixth voting member shall be elected by a majority vote of the five
(f) T~he Code Authority shall adopt its own rules of procedure and
m~ay appoint such officers or agenexes a7s it may deem necessary prop-
erly to admlinister thne Code, subject to review by the Administrator.
It shall delegate to a Sub-Code Authority of each member Division,
consistinar of three members elected by each Division, the admimis-
tration o~ all articles except III, IV, V, and X of the Code, subject
to review by the Administrator. All contacts with the Administrat-
tor relating to the administration of Alrticle III, IV, V, and IEZ
of the Code shall be by the Code Authority.
(g) The members of each Division shall adopt their own rules
of procedure with respect to administering the Code, not inconsistent
with the Act or with the Code, subject to review by the Aidminis-
trator. Each Division may appoint agents, not members of the
Industry, to investigate complaints of violation of the Cod~e by
members of the Division under rules which shall not be inconsistent
with the provisions of the Act or of the Code.
(h) All members of the Code shall bear their proportionate share
of the expense of maintenance of the Code Authority and its activ-
ities. Such expenses shall be assessed upon an eq-uitable basis (pro-
portionate to dollar sales or volume of production as Divisions may
determine) by the Code Authority, subject to review b~y the Admin-
istrator. Assessments shall be paidl by members of the Code in the
manner and at such times as shall be directed by the Code Author~ity.
SEc. 2. The Code Aut.hority shall have the following duties and
powers to the extent permitted by the Act and subject to review by
(a) WTith a view to keep'ing the President and the members of
the C~ode informed as t~o th~e observance or nonobservanlce of the
Code and as to whether the members of the Industry are taking ap-
propriate steps to effectuate the declared policy of the Act, the Code
Authbority shall report to the Administrator at such times and con-
cernmng such conditions in the IndZustry as he may from time to time
require. Each member of the Industry, subject to review by the
Administrator, shall file in such office as the Code Authiority may
designate and at such time, in such form and for such periods as
required by the Code Authority, duly certified reports wuith respect
to wages, hours of labor, conditions of employment, number of emt-
ployees,production, and other matters pertinent to the proper super
vision of the Indust~ry as determined by the Code Authority.An
additional special reports required by the Atdministra~tor will be
supplied without expense to the Code Aluthori uty. iIn addition tot ra
information required to be submitted to the odAuhrythere
shall be furnished to Government agencies such statistical ifra
tion as the Administrator may deem necessary for the purposes
recited in section 3 (a) of the Act.
(b) All confidential information of any nature so requested shall
be collected through agents not connected with the Industry, selected
by the Code Authority, and such information shall be krept confiden-
tlal by the said agents except when required by the Code Authority
for the proper administration of the Code. Only such information
shaUl be requested by the Code Authority wochich is appropriate to the
proper supervision of the Industry or to the~ administration of the
(c) The Code Authority may designate agents not members of
the Industry to investigate complaints of violations of the Code.
The members of the Industry shall faclit)aae such investigation by
opening their correspondence, books, and accounts relating to alleged
violation for examination by such authorized agents and by furnish-
ing relevant information. All such information shall be kept con-
fident~ial by the agents except that in the event of any such viola-
tion being substantiated, the Code Authority shall be informed
and may present evidence thereof to the proper department of the
Government. If, upon such investigation, any complaint of a viola-
t~ion of the Code shall be substantiated in any material respect, the
member of the Code guilty of such violation shall pay the cost of
the investigation; other wise the cost shall be borne by the complain-
ant. The guilty member shall be subject to all penalties provided for
in the A~ct and if a member of thle Code, any other penalties provided
for by said member's Division of the Code.
(d) The C~ode Aut~horityv shall study conditions in the Industry
and, subject to approval by four of its voting members and by a
th~ree-fourths vote of t.he Code members of each Division present at
a meeting expressly called for that purpose, shall make such recom-
mendations from time to time to the. Administrator as it deems desir-
able to further the policies of the Act, which, upon the approval of
the President or thle Administrator or such other lawful officer as
m~ay be constituted, shall become a part of the Code and shall have
full force and effect as provisions hereof.
SEC. 3. Appeals.
(a) ~Any interested party shall have the right of complaint to the
Code Authority or a Sub-Code Authorit~y, and a prompt hearing and
decision thereon, under such rules and regulations as the. Code Au-
thority shall prescribe, in respect to any act of any member of the
Industry or in respect to any agent or agency designated by the Code
Authority or Sub-Code Authority to act in its behalf.
(b) Any interested party shall have the right of appeal to the
Administrator, under such rules and regulations as he shall prescribe,
with respect to any decision, rule, regulation, order, or finding made
by he od Auhortyor a Sub-Code Authority.
(c) Any memberofteIdtrwhprmtyflsispel
wCith~ the Code Aut~hority or Sub-Code Authority and cooperates to-
wrard prompt decision thereof and who makes his appeal on the
grounds that said restrictions or rulings will handicap his legitimate
methods of operation or distribution tending toward jeopardizing
his; existence, shall not be bound by any restrictions which arise
from the Mlerchandising Plan or Rulings of the Sub-Code Authority
provided for herein in this Article VI, Section 4 (b) but supple-
muental to and not specifically covered by this Code, until such
ap 'eal has been heard and finally disposed of.
OEc. 4. COdes of Ethics and Mlerchandising Plans.
(a) The Code Authority meay, with the approval of four of its
voting members and by a three-fourths vote of the Code members of
each Division present at 11 meeting expressly called for that pur-
pose, and subject to review by the Administrator, formulate a Code
of Ethics for all members of the Industry which will amplify and
define t~he provisions of Article VII hereof.
(b) The members of each Division of the Industry may prepare
Simplification and Standardization Specifications and a Mlerchan-
dising Plan for such Division, incorporating the merchandising poli-
cies best calculated to proinote fair competition in such Division.
Subject to the review of the Admlinistrator, every such Mlerchandis-
ing Plan or Simplification and Standard~ization Specifications, when
approved by three fourths of the Code members of the Division and
fied with the Sub-Code Authority, shall be binding up~on all mem-
bers of the Industry whlo are members of the Division to which such
Merchandising Plan or Specifications apply. Changes may be made
in any such ~Merchandising Plan or Specifications in thle same man-
ner that the originals were established.
SEc. 5. Any notice, demand, or request requiired or permitted to
be given to or to be made upon any member of thie Industry shall
be sufficiently given if mailed by registered mail, postage prepaid,
addressed to such member of t~he Industry, at his address on file
with the Secretary of the Code Authority.
ARTICLE VII-UNFAIn TRADE PRACTICES
For the purposes of the Code the following shall constitute unfair
SECTION 1. To invoice fictitiously, ship in excess of quantities in-
voiced, price at prices for a trade classification to which buyer is not
properly entitled, permit unwarranted deductions, make fictitious or
excessive allowances or guarantees.
SEc. 2. To grant secret rebates in any form, give or sell other
materials at lower than prevailing prices to influence a sale, give
improper cut backs or rebate to any buyer for stock on hand
at date of any price decline.
SEC. 3. TO subsidize buyers by special donations, give premiums,
lavishly entertain a customer or prospectiv-e customer or their emi-
ployees, split commissions, pay part or all of a customer's or prospec-
tive customer's expenses, buy of a customer or prospective customer
other commodities at higher than prevailing open market prices,
makse improper advertising allowances, give gratuities or manke loans
or otherwise improperly mfluence business, consign stoock or allow
other than published terms, or fail to prescribe definite terms, or
make. unproper price-mamntenance guarantees.
SEC. 4. (a) TO Sell Or Offer any product with intent to deceive.
(b) To defame a competitor.
(c) To purchase a stock of competitor's materials fromt a customer
or prospective customer.
(d) To misbrand material or to imitate the trade manrks, trade
names, slogans, or advertising matter of a competitor.
(e) To improperly entice away a competitor's employees.
SEc. 5. To sell for export until the buyer has agreed not to resell
the goods within the United States.
SEO. 6. Using or employing any unfair trade practice shall be a
violation of the Code and any member of t~he Industry who shall
Directly or indirectly through any officer, employee, agent, or repre-
Ssentative, knowingly or willfully use or employ any such unfair
Practices shall have violated the Code.
ARTICLE VTI'I-PWnuCrrr or PRuICES, TERMS, AND ClONDITIONs or SAEa
The purpose of the following publicity requirements of the Code
is to -insure complete publicity of aUl prices, terms, a~nd conditions
of sale to manufacturers and to the trade concerned, and thus to
promote fair competition. The trade concerned shall be all the trade
of the member of the Industry directly affected by such prices, terms,
or conditions of sale in the territory to which the same apply.
SECTION 1. Each member of the Industry shall have the right in-
dividually to establish new prices, terms, and conditions of sale from
time to time not inconsistent with the provisions of the Code.
SEC. 2. NO member of the Industry shall sell, pay a rebate, or
allow a deduction at any time to any person except upon prices,
terms, and conditions of sale then in effect and/or published in such
manner as may hereinafter be required by the Code.
SEC. 3. UpOn the effective date of the Code every member of a
Division of the Industry shall forthwith file in the offce designated
for such Division a schedule of his prices, terms, and conditions of
sale then in effect for distribution to all members of the Division in
the manner and to the extent determined by the Sub-Code Authority
of such Division. The members of each Division may determine the
extent to which such schedules shall be open to inspection by members
of the t~rade.
SEc. 4. In the event of any change being made by a member of the
Industry in any price, term or condition of sale, he shall, if so
determined by th members aI the Division of which he is a member,
do either one or both of the following:
(a) Immediately pTublish to the trade concerned every such change
and coincidentally~ file in the office designated for his Division full
and2 complete copies of every such change in price and terms and
conditions of sale for immediate distribution to the members of the
Division ; or
(b) File full and complete cop ies of every contemplated change
in prices, terms, and conditions of sale in the office designated by his
Division within such periods as may be designated for such Division
but not exceeding 5 days in advance of the effective date of such
change. Copies thereof shall in such cases be immediately filed with
the Sub-Code Authority of the Division and then distributed to the
trade concerned as required by the Division, in the manner provided
in Article VIII, Section 3.
1111en a member of the I~ndustry is a member of more than one
Division the publicity requirements of any Division of which he shall
be a member shall apply only to changes in prices, terms, and condi-
tions of sale of products listed under such D~ivision in Schedule I of
~erc~handising Plans adopted pursuant to Section 4 of Article
VI, containing provisions with reference to publicity of prices,
terms, or condi~tions of sale, shall be controlling with respect to the
members of the Division for which any such M~erchandising Plan
may be established, even though such provisions supplement or vary
the publicity requirements of this Article VIII.
SEC. 5. After dates to be specified by ~each Sub-Code Authority
for its Div'ision1, no member of the Division shall sell to any buyer
for resale more than one small introductory order unless the buyer
has agreed in writing (1) to make no improper use of the member's
merchandising plans, prices, terms and/or conditions of sale or
otherwise misrepresent the policies or products of- the member; (2)
to sell from a list no higher than that from which the products
were purchased; (3) to observe all of the provisions of this Code
insofar a~s they are applicable.
ARTICLE IX--SELLING BELOW COST
SECTION 1. No member of the Industry shall initiate a price for
the sale of any product to the trade at a net price after all discoulnt~s
which shall be below the said member's own individual cost. Said
cost shall be determined in accordance with a~ny uniform cost account-
ing methods as may be approved by a three-fourths vote of the miem-
bers of each Division and subject to review by thle Admlinistrator.
Each such Division shall by the same method designate the cost
accounting period to be used from time to time; provided, however
that any member of the Industry may sell below his own individual
cost to meet prices established on products of essentially similar
grade and quality by another member of the Industry.
SEc. 2. Complaints may be filed with a Subcodfe Authority against
any merober of its Division of the Industry to the effect. that said
member has made a sale at a price believed to be below~ said mnem-
ber's current total cost and not to meet existing competition inl the
Industry. Saidl SubcodeF Auithorityu ma in its discretion inves~tigate
such complaints, and if it finds that said prices were not. made to
meet existing competition in the industry, it shall designate a firm
of certified public accountants to invrestigate whether or not the
prices complained of were below said member's current. total cost in
conformity with sound accounting practice. The said accountants
shall report their conclusions to the Subcode Aut~hority without dis-
closing confidential details, and if the Subcode Authority finds after
receiving such report, that such mlember actually sold below his cur-
rent total cost andi not to meet existing c-ompetition in the Industry,
then the cost of the investigation shall be paid by said member if a
member of the Code, otherwise by the complainant. The guiltyd
member shall be subject to all penalties provided for in the Act, and
if a member of the Clode, any other penalties provided for by said
member's Division of the Code.
ARTICLE X LABOR PROVISIONS
SECTION 1. Employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from interference, restraint, or coercion of employers of labor,
or their agents, in the designation of such representatives or in self-
organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection.
SEc. 2. No employee and no one seeking employment shall be re-
quired as a condition of employment to join any company union or
to reframn from 30mning, organizing, or assisting a labor organization
of his own choosing.
SEC. 3. Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, pproved
or prescribed by the President.
SEc. 4. Within each state this Code shall not supersede any laws
of d such state imposing more stringent requirements on employer
regulating the age of employees, wages, hours of workr, or help, fire,
or general working conditions than under this Code.
rSEc. 5. Each employer will makre available without charge to his
employees copies of the Code under which employer is operating.
SECTION 1. For the purposes of the Code., all transactions between
manufacturers who are members of the Industry and their respective
subsidiaries and affiliates, which shall be defined in the respective
divisional' merchandising plans as described in Section 4 (b) of
Article VI, shall be considered as interdepartmental transactions of
the manufacturer. No such manufacturer shall sell to such sub-
sidiary or affiliate unless such subsidiary or affiliate shall agree to and
does conform to the pertinent provisions of this Code.
SEc. 2. Nothing contained in the Code shall be construed as pro-
hibiting any member of the Industry from exercising its and/or
their lawful patent rights or as requiring any member of the Industry
to do any act in convict with the terms of any patent licensing
SEC. 3. Section 4 of Article VI and Articles VII, VIII, and IXY of
the Code shall not apply to products exported from the United
SEO. 4. NOthing contained in the Code shall be deemed to con-
s~titute any of t~he members t.hereof partners for any purpose. No
member of the Code shall be liable in any manner by reason of his
participation therein to anyone for any act of any member or
agent of the Code Authority. No member of the Code except as
otherwise provided herein and no member of the Industry or of the
Code Auth~ority and no agent of the Industry shall be liable to
anyone or in any manner other than as provided in the Act, or in
the Code, for ainy act or failure to act under the Code.
SEC. 5. Where the costs of executing contracts entered into in the
Asbestos Industry prior to the effective date'are increased by the
application of the provisions of the Code to the Industry, it is
equitable and promotive of the purposes of the Act that appropriate
adjustments of such contracts to reflect such increased costs be
arrived at by arbitral proceedings or otherwise. The Code Authority
is constituted an agepncy to assist~ in effectfingr such arbitral pro-
ceedings and adjustments.
SEc. 6. As required by Section 10 (b), T~it~le I of the Act, the
following provision is contained in the Code: The President may
from time to time cancel or modify any order, approval, license,
rule, or regulation issued under this Title.
SEc. 7. By presenting the Code the members of the Industr
assenting thereto do not thereby consent to any modification thereof
and they reserve the right to object individually or jointly to any
AnnTcLE XII- AMENDMENTS TO THE CODE
It is contemplated that from time to time supplementary provi-
sions to the Code or additional codes may be submitted for the
approval of the President to prevent unfair competition in prices or 4
other unfair or destructive practices and to effectuate the other
purposes and policies of Title I of the Act. Such provisions of the
Code as are not required t~o be included therein by the Act, may, with
the approval of the President, be modified or eliminated if it appears
Sthat the public needs are not being served thereby, and as changes
in circumstances or experience may indicate. The provisions of
the Code shall remain mn effect unless and until so modified or
eliminated, or until the expiration of the Act; namely, June 16, 1935j,
unless sooner terminated in accordance wvith law for suchl case made
DnV~sloss or Tam ABBESTOBs INDUsTRY AND PRODUJOTB INCLUDED
1. Asbestos Paper and Allied Products:
All Asbestos Papers
All Types of Asbestos MZillboard
Asbestos and Wool Felt Pipe Covering
Air Cell Pipe Covering
Asbestos Laminated Pipe Covering
Pipe Covering Accessories
Asbestos Insulating Cement
2. Asbestos Cement Products:
Asbestos Corrugated Lumber
Asbestos Flat Lumber
Asbestos W~allboard Plain
Asbestos Board Pre-Decorated
Impregnated Asbestos Lumber
Asbestos Encased Insulating Board
Miscellaneous M\olded Products
3. Asbestos M~agnesia Products:
85% Malgnesia Pipe Covering, Blocks and Cements
High temperature Insulation, Blocks and Cement
Ca rbonate of M~agnesia
4. Asbestos Textile Products:
All Types of Asbestos Roving
All Types of Asbestos Yarn
All Types of Asbestos Cloth
All Types of Asbestos Listing
All Types of Asbestos Tubing
All Ty-pes of Asbestos Cord
Carded Asbestos Fibre blade from Crude Asbestos
& Brake Lining and Related Friction Products:
Brake Lining and/or Clutch Facings, excepting only friction elements made
exclusively of metal or wood.