NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
BUILDERS SUPPLIES TRADE
AS APPROVED ON OCTOBER 25, 1934
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
ar Bale by the Superintendent of Documento. Washigton, D. C. - Price 5l cents
Approved Code No. 37-Amendment No. 2
Registry No. 1013-3--02
This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D. C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
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Boston, Mass.: 1S01 Customhouse.
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Louisville. Ky.: 10S Federal Building.
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New York. N. Y.: 734 Customhouse.
Norfolk. Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
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San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.
Approved Code No. 37-Amendment No. 2
AMENDMENT TO CODE OF FAIR COMPETITION
BUILDERS SUPPLIES TRADE
As Approved on October 25, 1934
AMENDED CODE OF FAIR COMPETITION FOR THE BUmLDERS SUPPLIES
An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery .Act, approved June 16, 1933, for my approval of an
amended Code of Fair Competition for the Builders Supplies Trade,
and hearings having been held thereon and the National Industrial
Recovery Board having rendered their report containing an analysis
of the said amended Code of Fair Competition together with their
recommendations and findings with respect thereto, and the National
Industrial Recovery Board having found that the said amended
Code of Fair Competition complies in all respects with the pertinent
provisions of Title I of said Act and that the requirements of clauses
(1) and (2) of subsection (a) of Section 3 of the said Act have been
NOW THEREFORE, I, Franklin D. Roosevelt, President of the
United Atates, pursuant to authority vested in me by Title I of the
National Industrial Recovery Act, approved June 16, 1933, do hereby
incorporate by reference said annexed report and do find that the
Code as constituted, after being amended, complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act, and do hereby order that the Code
as amended be and it is hereby approved, and that the previous
approval of said Code is hereby modified to include an approval of
said Code in its entirety as amended.
FRANKLIN D. ROOSEVELT.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By G. A. LYNCH, Administrative Officer.
THE WHITE HOUSE,
October 25, 1934.
LETTER OF TRANSMITTAL
The White House.
SIR: This is a report on the Code of Fair Competition for the
Builders Supplies Trade of the United States, as amended, the hear-
ings having been held in Washington, D. C., on July 26, 1934, and on
August 9, 1934, in accordance with the policies of the National
Your approval of this Code, as amended, will have the effect of
promulgating a new Code for the Trade, which it is estimated
employs in excess of 50,000 persons.
This Code, as amended, is sponsored by the National Federation
of Builders Supply Associations which is empowered by the Code
of Fair Competition for the Builders Supplies Trade Industry to
The principal change in this Code, as amended, is the establish-
ment of an open price policy which coincides with the policy of the
National Recovery Administration. As amended, this Code contains
a prohibition against the handling of goods which have not been
purchased from a vendor who does not represent that he is comply-
ing with his respective Code of Fair Competition.
The Deputy Administrator in his final report to the National
Industrial Recovery Board on said amendments to said Code having
found as herein set forth and on the basis of all the proceedings in
It finds that:
(a) The amendments to said Code and the Code as amended are
well designed to promote the policies and purposes of Title I of the
National Industrial Recovery Act including the removal of obstruc-
tions to the free flow of interstate and foreign commerce which tend
to diminish the amount thereof, and will provide for the general
welfare by promoting the organization of industry for the purpose
of cooperative action of labor and management under adequate gov-
ernmental sanction and supervision, by eliminating unfair competi-
tive practice, by promoting the fullest possible utilization of the
present productive capacity of industries, by avoiding undue restric-
tion of production (except as may be temporarily required), by
increasing the consumption of industrial and agricultural products
through increasing purchasing power, by reducing and relieving
unemployment, by improving standards of labor, and by otherwise
(b) The Code as amended complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion sub-section (a) of Section 3, sub-section (a) of Section 7 and
sub-section (b) of Section 10 thereof.
(c) The Code empowers the National Federation of Builders Sup-
plies Associations to present the aforesaid amendments on behalf of
the Trade as a whole.
(d) The amendments and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.
(e) The amendments and the Code as amended are not designed
to and will not eliminate or oppress small enterprises and will not
operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
SFor these reasons, this Code, as amended, is recommended for
For the National Industrial Recovery Board:
G. A. LYNCH,
OcTroER 25, 1934.
AMENDED CODE OF FAIR COMPETITION FOR THE
BUILDERS SUPPLIES TRADE
To effect the policies of Title I of the National Industrial Recovery
Act, this Code is established as a Code of Fair Competition for the
Builders Supplies Trade and its provisions shall be the standards
of fair competition for such Trade and be binding upon every mem-
1. Builders Supplies.-The term "Builders Supplies" as used
herein is broadly defined as those products used in building and
construction work and commonly designated as fire resistant. The
term "Builders Supplies" as used herein specifically comprehends
the following products:
Brick Mortars, Casement and Steel Sash, Cement and Cement
Products, Cement Pipe, Ceramic Tile, Clay Roof Tile, Common
Brick, Cut Stone, Dampers and Fireplace Accessories, Drain Tile,
Iace Brick, Fire Brick and Clay, Glazed Structural Tile, Gypsum
Products, Hollow Tile, Lime and Lime Products, Mesh Reenforce-
ment, Metal Lath and kindred products, Mineral Aggregates, Mortar
and Cement Colors, Molding Plasters, Roof and Flooring Slates,
Sewer Pipe, Flue Lining and other Clay Products, Structural Terra
Cotta and Waterproofing Compounds.
2. Member of the Trade.-The term member of the Trade as
used herein includes any individual, partnership, association, cor-
poration, or other form of enterprise engaged in the Trade, either
as an employer or on his or its own behalf.
3. Vo7lutary Agreement Member.-The term Voluntary Agree-
ment Member" shall include any member of the Trade who shall
have become a member of the agreement as hereinafter provided in
4. Builders supplies trale.-The term Builders Supplies Trade "
or "Trade as used herein includes the selling and/or distributing
to contractors or consumers of any or all builders supplies herein-
above defined. In the event that the application of this section is
the subject of a dispute with a member of any other trade or industry
subject to any other Code of Fair Competition which purports to
have jurisdiction over the sale of any builders supplies, approved
pursuant to the provisions of the National Recovery Act, this section
shall not apply to members of such other trade or industry until
such time as the dispute has been reviewed and determined by the
procedure established in Article VI, Section 10, Subsection (c), and
the finding reached makes this section applicable.
5. Employee.-The term "employee" as used herein includes any
and all persons engaged in the Trade, however compensated, except
a member of the Trade.
6. Employer.-The term employer as used herein includes any
one by whom any such employee is compensated or employed.
7. Code Authority.-The term "Code Authority as used through-
out this Code refers to the Administrative Committee of this Code
as established in Article VI hereof.
8. Federation.-The term "Federation as.used herein shall mean.
the National Federation of Builders Supply Associations. The
term "federated group "shall: mean any association or group fed-
erated with the National Federation of Builders Supply Associations.
9. President, Act and the Board.-The terms "President ", "Act"
and Board "as used herein mean respectively, the President of the
United States, Title I of the National Industrial Recovery Act and
the National Industrial Recovery Board.
10. Competitive area.-For the purpose. of administering this
Code, a Competitive Area is defined as an economic market hav-
ing such geographical boundaries as shall be accepted and approved
by a truly representative group of members of the Trade doing
business therein, but subject to review and approval by the Code
Authority and to approval by the National Recovery Administration.
11. Population.-Population for the. purpose of this Code shall
be determined by reference to the latest Federal Census.
II. RIGHTS OF LABOR
1. (a) Employees shall have the right to organize and bargain
collectively through representatives of their own choosing and shall
be free from the 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.
(b) No employee and no one seeking employment shall be re-
quired as a condition of employment to join any company union.
or to refrain from joining, organizing, or assisting a labor organiza-
tion of his own choosing.
(c) Employers shall comply with the maximum hours of labor,
minimum rates of wages, and other conditions of employment
approved or prescribed by the President.
2. An employer shall so administer work in his charge as to pro-
vide the maximum practicable continuity of employment for his
III. HOURS OF LABOR
1. No employee shall be permitted to work in excess of forty (40)
hours in any one week, or eight (8) hours in any one day, except as
herein otherwise provided.
2. Exceptions as to hours.-(a) The provisions of this Article
shall not apply to outside salesmen, night and Sunday watchmen, to
one branch yard manager for each branch yard and to persons em-
ployed in a managerial or executive capacity who earn regularly
thirty-five dollars ($35.00) per week or more.
(b) Employees of members of the Trade employing not more
than two (2) persons, in towns or places of less than 2,500 popula-
tion, which towns and places are not part of a large trading area,
as defined in Article IV, may be permitted to work forty-eight (48)
hours in any one week if at least sixty-six and two-thirds percentage
of the sales volume of said members of the Trade is to persons
engaged in agriculture; such employees may be permitted to work
in excess of forty-eight (48) hours in any one week, provided that
they are paid not less than one and one-half times their normal
rate of pay for all hours worked in excess of forty-eight (48) hours
in any one week.
(c) Yard foremen, truck drivers and their helpers may be per-
mitted to work forty-four (44) hours in any one week without the
payment of overtime and may be permitted to work forty-eight (48)
hours in any one week, provided that they are paid not less than one
and one-half times their normal rate of pay for all hours worked
in excess of forty-four (44)- hours in any one week.
(d) The Code Authority shall submit within thirty (30) days of
the approval of this Code as amended, a report which specifically
outlines the possibilities of establishing a daily limitation of hours
for all classes of employees and of revising Article III, Section 2 (a)
and (c) so that hourly restrictions will apply to the watchmen, all
branch yard managers, yard foremen, truck drivers and their helpers.
3. Standard Week.-Except as to night and Sundav watrhmpn. no
employee shall be permitted to work more than six (6) days in any
seven (7) day period.
4. Employment by Several Employers.-No employer shall know-
ingly permit any employee to work for any time which, when added
to the time spent at work for another employer or employers in this
Trade or any other trade or industry, exceeds the maximum permitted
IV. RATES OF WAGES
1. No employee shall be paid in any period less than the minimum
rates per hour hereinafter set forth, except as herein otherwise pro-
Svided; the minimum rate per hour herein provided shall be applicable
to the immediate trade area of cities as defined by the Chamber of
Commerce or similar civic body of such cities:
Cities ofless Ci or
Cities of than 500,000 Cities o
Region no. 500,000 population places o
Region no. population and more '75, o U-
or more than 75.000 lation or
Cents Cents Cents
---........---.---.......--... ----.......----------......... 35 30 25
2------..---..-.--...------- ...--- .....--- --------------------. 40 35 30
3......----------.......... .....----..---..... ------- 45 40 35
4...------..----.......----.... -------......................... 60 ........... ............
2. (a) Region No. 1 includes the States of: Alabama, Georgia,
Florida, North Carolina, South Carolina, Kentucky, Louisiana. Mis-
sissippi, Tennessee, Texas, Virginia, West Virginia, Arkansas, New
Mexico and Arizona.
(b) Region No. 2 includes the States of: Delaware, Maryland,
Colorado, Wyoming, Oklahoma, Utah, Montana, Idaho, Washing-
ton, Oregon, Nevada, and Counties of Santa Barbara, Ventura, Los
Angeles, Orange, San Diego, Imperial and San Benardino of the
SState of California, and the District of Columbia.
(c) Region No. 3 includes the States of: Illinois, Indiana, Penn-
sylvania, New Jersey, Nebraska, New York (except New York City),
Vermont, New Hampshire, Maine, Massachusetts, Connecticut, Rhode
Island, Minnesota, North Dakota, South Dakota, Iowa, Ohio. Mis-
souri, Kansas, Wisconsin, Michigan and all counties of California
not included in Region No. 2.
(d) Region No. 4 includes the City of New York.
3. Clerical and office employees subject to the provisions of Article
III, Section 2, subsection (b) hereof, shall be paid not less than
twelve dollars ($12.00) per forty-eight (48) hour week, clerical and
office employees in cities of 500,000 population or more shall be paid
not less than at the rate of twenty dollars ($20.00) per week; in
cities of less than 500,000 population and more than 75,000 popula-
tion, not less than at the rate of fourteen dollars ($14.00) per week;
and in cities and places of 75,000 population or less, not less than
at the rate of twelve dollars ($12.00) per week. Truck drivers in
cities of 2,500,000 population or more shall be paid not less than at
the rate of 75 cents per hour.
4. This Article establishes minimum rate of pay which shall apply,
irrespective of whether an employee is actually compensated on a
time rate, piece work or other basis.
V. GENERAL LABOR AND OTHER PROVISIONS
1. No person under eighteen (18) years of age shall be employed
in this Trade, except as office boys, office girls or messengers. No
person under sixteen (16) years of age shall be employed in this
Trade in any capacity. In any state an employer shall be deemed
to have complied with these provisions as to age, if he shall have on
file a certificate or permit, duly signed by the Authority in such state
empowered to issue employment or age certificates or permits
showing that the employee is of the required age.
2. Every employer shall provide for the safety and health of
employees during the hours and at the places of their employment.
Standards for safety and health shall be submitted by the Code
Authority to the Board within sixty (60) days after the effective
date hereof, and upon their approval by the Board shall constitute
integral parts of this Code.
3. No provisions in this Code shall supersede any State or Federal
Law which imposes on employers more stringent requirements as to
age of employees, wages, hours of work, or as to safety, health, sani-
tary or general working conditions, or insurance, or fire protection,
than are imposed by this Code.
4. All employers shall post and keep posted copies of this Code in
conspicuous places accessible to all employees. Every member of
the Trade shall comply with all rules and regulations relative to the
posting of provisions of Codes of Fair Competition which may from
time to time be prescribed by the Board.
5. No employer shall reclassify employees or duties of occupation
performed or engage in any other subterfuge so as to defeat the
purposes or provisions of the Act or of this Code.
6. No employer shall dismiss or demote any employee for making
a complaint or giving evidence with respect to an alleged violation
of the provisions of this Code.
7. Female employees performing substantially the same work as
male employees shall receive the same rate of pay as male employees.
8. A person whose earning capacity is limited because of age or
physical or mental handicap or other infirmity may be employed on
light work at a wage below the minimum established by this Code
if the employer obtains from the State authority designated by the
United States Department of Labor a certificate authorizing his
employment at such wages and for such hours as shall be stated
in the certificate. Each employer shall file monthly with the Code
Authority a list of all such persons employed by him, showing the
wages paid to, and the maximum hours of work for such employees.
1. A Code Authority is hereby established consisting of not more
than nine (9) trade members to be selected in the following manner:
Seven (7) members shall be elected by the Directors of the National
Federation of Builders Supply Associations with the approval of
the Board, and two (2) members shall be elected to represent the
non-members of federated groups. In the event that the non-mem-
bers of federated groups fail to elect two (2) members to represent
them, they may be appointed by the National Recovery Adminis-
2. In addition to membership as above provided, there may be
three (3) members, without vote, to be known as Administration
members, to be appointed by the Board to serve for such terms as
the Board may specify.
3. Each trade or industrial association directly or indirectly par-
ticipating in the selection or activities of the Code Authority shall
(1) impose no inequitable restrictions on membership, and (2) sub-
mit to the Board true copies of its articles of association, by-laws,
regulations, and any amendments when made thereto, together with
such other information as to membership, organization, and activities
as the Board may deem necessary to effectuate the purposes of the
4. In order that the Code Authority shall be at all times truly
representative of the Trade and in other respects comply with the
provisions of the Act, the Board may prescribe such hearings as it
may deem proper; and thereafter if it shall find that the Code
Authority is not truly representative or does not in other respects
comply with the provisions of the Act, may require an appropriate
modification of the Code Authority.
5. Nothing contained in this Code shall constitute the members
of the Code Authority partners for any purpose. Nor shall any
member of the Code Authority be liable in any manner to anyone
for any act of any other member, officer, agent or employee of the
Code Authority. Nor shall any member of the Code Authority, ex-
ercising reasonable diligence in the conduct of his duties hereunder,
be liabTe to anyone for any action or omission to act under this Code,
except for his own wilful malfeasance or nonfeasance.
6. If the Board shall at any time determine that any action of the
Code Authority or any agency thereof may be unfair or unjust or
contrary to the public interest, the Board may require that such
action be suspended to afford an opportunity for investigation of
the merits of such action and further consideration by such Code
Authority or agency pending final action which shall not be effective
unless the Board approves or unless it shall fail to disapprove after
thirty (30) days' notice to it of intention to proceed with such action
in its original or modified form.
7. Subject to such rules and regulations as may be issued by the
Board, the Code Authority shall have the following powers and
duties, in addition to those authorized by other provisions of this
(a) To insure the execution of the provisions of this Code and to
provide for the compliance of the Trade with the provisions of the
(b) To adopt by-laws and rules and regulations for its procedure.
c) To obtain from members of the Trade such information and
reports as are required for the administration of the Code. In addi-
tion to information required to be submitted to the Code Authority,
members of the Trade subject to this Code shall furnish such statis-
tical information as the Board may deem necessary for the purposes
recited in Section 3 (a) of the Act to such Federal and State
agencies as it may designate; provided that nothing in this Code
shall relieve any member of the Trade of any existing obligations to
furnish reports to any Government agency. No individual report
shall be disclosed to any member of the Trade or any other party
except to such other governmental agencies as may be directed by
(d) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Authority
of its rights, duties or responsibilities under this Code and that such
trade associations and agencies shall at all times be subject to and
comply with the orders of the Code Authority and of the National
(e) To make recommendations to the Board for the coordination
of the administration of this Code and such other Codes, if any, as
may be related to or affect members of the Trade.
(f) (1) It being found necessary in order to support the admin-
istration of this Code and to maintain the standards of fair competi-
tion established hereunder and to effectuate the policy of the Act, the
Code Authority is authorized:
(A) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes, and to meet such obligations out
of funds which may be raised as hereinafter provided and which
shall be held in trust for the purposes of the Code.
(B) To submit to the Board for its approval, subject to such notice
and opportunity to be heard as it may deem necessary (1) an itemized
budget of its estimated expenses for the foregoing purposes, and (2)
an equitable basis upon which the funds necessary to support such
budget shall be contributed by members of the Trade;
(C) After such budget and basis of contribution have been
approved by the Board, to determine and obtain equitable contribu-
tion as above set forth by all members of the Trade, and to that end,
if necessary, to institute legal proceedings therefore in its own name.
(2) Each member of the Trade shall pay his or its equitable con-
tribution to the expenses of the maintenance of the Code Authority,
determined as hereinabove provided, and subject to rules and regu-
lations pertaining thereto issued by the Board. Only members of
the Trade complying with the Code and contributing to the expenses
of its administration as hereinabove provided, unless duly exempted
from making such contributions, shall be entitled to participate in
the selection of members of the Code Authority or to receive the
benefits of any of its voluntary activities or to make use of any
emblem or insignia of the National Recovery Administration.
(3) The Code Authority shall neither incur nor pay any obliga-
tion substantially in excess of the amount thereof as estimated in its
approved budget, and shall in no event exceed the total amount con-
tained in the approved budget, except upon approval of the Board;
and no subsequent budget, shall contain any deficiency item for ex-
penditures substantially in excess of prior budget estimates excepG
those which the Board shall have so approved.
(g) To recommend to the Board any action or measures deemed
advisable, including further fair trade practice provisions to govern
members of the Trade in their relations with each other or with
other trades or industries; measures for industrial planning, and
stabilization of employment; and including modifications of this
Code which shall become effective as part hereof upon approval by
the Board after such notice and hearing as it may specify.
(h) To appoint a Trade Practice Committee which shall meet
with the Trade Practice Committees appointed under such other
Codes as may be related to the Trade for the purpose of formulating
fair trade practices to govern the relationships between employers
under this Code and under such other Codes to the end that such
fair trade practices may be proposed to the Board as amendments
to this Code and such other Codes.
(i) To provide appropriate facilities for arbitration, and subject
to the approval of the Board, to prescribe rules of procedure and
rules to effect compliance with awards and determinations.
8. To approve and submit for the approval of the Board, rules
and regulations proposed by truly representative groups of members
of the Trade in any competitive areas, provided that such rules and
regulations are not inconsistent with this Code. Upon approval
by the Board, after such notice and hearings as it may prescribe,
such rules and regulations shall constitute integral parts of this Code
and be binding upon all members of the Trade operating in such
9. (a) For the administration of this Code, in the case of mem-
bers of the Trade, whether in whole or in part, who are members of
the National Retail Lumber Dealers Association but who are not
also members of a federated group of the National Fedi ration of
Builders Supply Associations, the Code Authority shall appoint as
its agent or representative the same agent, or representative as shall
have been appointed by the Code Authority for the Code of Fair
Competition for the Retail Lumber, Lumber Products, Building
Material and Building Specialties Trade for the administration of
the Code of Fair competition for which it is the controlling
(b) When the administration of this Code is delegated by the
Code Authority of this Code to the agent appointed by the Code
Authority for the Code of Fair Competition for Retail Dealers in
Lumber,'Lumber Products, Building Material, and Building Spe-
cialties, the pro rata cost of Administration shall be the same as
for all other dealers in Builders Supplies but shall be paid to the
last-mentioned Code Authority to be used by them in the Adminis-
tration of this Code.
10. (a) To appoint within each federated group, in cooperation
with the appropriate division under the Code of Fair Competition
for the Retail Lumber, Lumber Products, Building Material and
Building Specialties Trade, a joint Explanation Committee, with
equal representation, of such number as may be deemed advisable.
This Committee shall be empowered to explain the provisions of the
trade practice rules of the Code of Fair Competition for the Retail
Lumber, Lumber Products, Building Material and Building Special-
ties Trade and of this Code insofar as such rules affect members of
the Retail Lumber, Lumber Products, Building Material and Build-
ing Spe- ialties Trade and members of the Builders Supplies Trade.
The explanations of this Joint Committee shall be subject to appeal
as hereinafter provided.
(b) The Code Authority shall appoint a National Joint Explana-
tion Committee in cooperation with the Code Authority for the
Retail Lumber, Lumber Products, Building Material and Building
Specialties Trade, with equal representation, of such number as the
two Code Authorities shall jointly determine. This Committee shall
review appeals from the explanations of the Joint Explanation Com-
mittees appointed within the federated groups. The findings of such
National Joint Explanation Committee shall be subject to review as
may be prescribed by the Board in accordance with the law
(c) In the event of any disputes concerning the jurisdiction of this
Code, the Code Authority shall appoint a committee to meet with a
similarly appointed Committee of any related industry or trade, and
when so meeting to act as a Coordination Board to adjust disputes as
to the jurisdiction of the respective Codes. Each trade or industry
shall be equally represented. In addition to the representatives ap-
pointed by the respective Code Authorities, each Coordination Board
may elect one additional member, or, upon failure so to select, one
additional member may be appointed by the Board, but such mem-
ber shall have authority to vote only in the event of a tie. A de-
termination of such Coordination Board shall be forwarded imme-
diately to the National Recovery Administration and shall become
effective upon approval thereby. In the event such Coordination
Board fails to act or agree, the matter shall be submitted to the
Board for final determination.
VII. VOLUNTARY AGREEMENT MEMBER
Recognizing that the violation by a member of any provision of
this Code will disrupt the normal course of fair competition in the
Trade and cause serious damage to others, and that it will be im-
ossible accurately to determine the amount of such damage, it is
ereby provided that those members who may desire to do so may
enter into an agreement among themselves embodying the following
1. Each member violating any provision of this Code shall pay
to the Treasurer of the Code Authority, as an individual and not as
Treasurer, in trust, as and for liquidated damages, upon determina-
tion of violation by the Board, or any impartial agency or person
nominated by the Code Authority or designated by the Assenters
to this agreement and approved by the Board, amounts as set forth
(a) For the violation of any wage provision, an amount equal to
the difference between the wages which have been paid and the
wages which would have been paid if the member had complied with
the applicable provisions of the Code;
(b) For the violation of any hour provision, an amount equal to
the wages payable for the overtime at the regular rate payable under
the terms of the Code, to the employee who worked overtime;
(c) For the violation of any labor provision of the Code other
than an hour or wage provision, one hundred dollars;
(d) For the .violation of any provision of the Code (other than
a labor provision) involving a transaction incidental to or connected
with a sale of any product of the Trade, an amount equal to thirty
(30) per cent of the actual selling price of the product sold in
violation of any such provision, or of the price at which the product
should have been sold under the Code, if determinable, whichever is
(e) For the violation of any provision of the Code (other than a
labor provision) not involving a transaction incidental to or con-
nected with a sale of any product of the Trade one hundred dollars.
2. All amounts so paid to or collected by the Treasurer of the Code
Authority, under the provisions of this Article, shall be applied by
him as follows: First, if the violation shall have been of a labor
provision of the Code, equitable distribution of all damages paid
therefore shall be made among all employees directly affected by such
violation; second, if the violation shall have been of a code provision
other than a labor provision, the damages arising therefrom shall be
utilized to defray proper expenses of code administration, and the
balance, if any, remaining in the hands of the Treasurer shall be
distributed semi-annually among members of the Trade who have
assented hereto and who have not been determined to have been
guilty of a violation of a code provision during the preceding semi-
annual period, on the basis of the most recent assessment made
against members of the Trade for the expense of code administration.
3. Assent to this Article by any member shall be evidenced by a
signed statement signifying assent, filed with the Code Authority.
Failure to assent to this Article shall not deprive any member of any
other right or privilege under the Code. By so assenting, each
member agrees with every other member and the Treasurer, indi-
vidually, (1) that violation of a code provision shall breach this
agreement and shall render the violator liable for the payment of
liquidated damages as herein provided, (2) all rights and causes of
action arising hereunder are assigned to the Treasurer, individually
and in trust, and (3) that the Treasurer, as such assignee and as
attorney in fact for each assenting member, may take all proper legal
action concerning damages found due hereunder.
4. The Code Authority may waive liability for payment of liqui-
dated damages for any violation it finds to have been innocently
made and resulting in no material injury.
5. The Treasurer of the Code Authority, as an individual, and
not as Treasurer, by accepting office, accepts the trust established by
this contract and agrees to perform the duties of Trustee hereunder
until his successor in office may have been appointed.
6. Nothing contained herein shall be construed or applied to (a)
deprive any person of any right or right of action arising out of
this,Code, or (b) relieve any member of the Trade from any con-
tractual or legal obligations arising out of this Code or of the Act
or otherwise; nor shall violation of this agreement by an assenting
member be deemed a violation of the Code, so as to subject the vio-
lator to any consequence arising under Section 3 (b), Section 3 (c),
or Section 3 (f) of the National Industrial Recovery Act, nor to
any criminal prosecution of any kind.
VIII. AFFIDAVITS OF COMPLIANCE
Each member of the Trade shall submit to the Code Authority
or its authorized agent upon demand, but not more frequently than
monthly, an affidavit properly executed before a Notary Public, cer-
tifying that he has complied with the provisions of this Code set-
ting forth the schedule of rates of wages, hours of labor, and main-
tenance of all other rules as set forth within this Code. These affi-
davits shall be filed with the Code Authority and shall be available
at all times to the inspection of the National Industrial Recovery
IX. OPEN PRICE, COSTS AND PRICE CITING, AND COST FINDING
1. Open P ice.-(a) Each member of the Trade shall file with a
confidential and disinterested agent of the Code Authority, or if
none, then with such an agent designated by the Board identified
lists of all of his prices, discounts, rebates, allowances, and all other
terms or conditions of.sale, hereinafter in this article referred to
as price terms ", which lists shall completely and accurately con-
form to and represent the individual pricing practices of said mem-
ber. Such lists shall contain the price terms for all such standard
products of the Trade as are sold or offered for sale by said member
and for such non-standard products of said member as shall be
designated by the Code Authority. Said price terms shall in the
first instance be filed within ten (10) days after the effective date
of this provision. Price terms and revised price terms shall become
effective immediately upon receipt thereof by said agent. Immedi-
ately upon receipt thereof, said agent shall by telegraph or other
equally prompt means notify said member of the time of such receipt.
Such lists and provisions, together with the effective time thereof
shall upon receipt be immediately and simultaneously distributed
to all members of the Trade and to all of their customers who have
applied therefore and have offered to defray the cost actually incurred
by the Code Authority in the preparation and distribution thereof
and be available for inspection by any of their customers at the
office of such agent. Said lists or revisions or any part thereof shall
not be made available to any person until released to all members of
the Trade and their customers, as aforesaid; provided, that prices
filed in the first instance shall not be released until the expiration
of the aforesaid ten (10) day period after the effective date of
this -provision. The Code Authority shall maintain a permanent
file of all price terms filed as herein provided, and shall not destroy
any part of such records except upon written consent of the Board.
Upon request the Code Authority shall furnish to the Board or any
duly designated agent of the Board copies of any such lists or
revisions of price terms.
(b) When any member of the Trade has filed any revision, such
member shall not file a higher price within forty-eight (48) hours.
(c) No member of the Trade shall sell or offer to sell any products/
services of the Trade for which price terms have been filed pur-
suant to the provisions of this Article, except in accordance with
such price terms.
(d) No member of the Trade shall enter into any agreement,
understanding, combination or conspiracy to fix or maintain price
terms nor cause or attempt to cause any member of the Trade to
change his price terms by the use of intimidation, coercion or any
other influence inconsistent with the maintenance of the free and
open market which it is the purpose of this Article to create.
2. Costs and Price Cutting.-(a) The standards of fair competi-
tion for the Trade with reference to pricing practices are declared
to be as follows:
(1) Wilfully destructive price cutting is an unfair method of
competition and is forbidden. Any member of the Trade or of any
other trade or industry or the customers of either may at any time
complain to the Code Authority that any filed price constitutes
unfair competition as destructive price cutting, imperiling small
enterprise or tending toward monopoly or the impairment of code
wages and working conditions. The Code Authority shall within
five (5) days afford an opportunity to the member filing the price to
answer such complaint and shall within fourteen (14) days make a
ruling or adjustment thereon. If such ruling is not concurred in by
either party to the complaint, all papers shall be referred to the
National Recovery Administration and a report thereon shall be
made to the Board.
(2) When no declared emergency exists as to any given product,
there is to be no fixed minimum basis for prices. It is intended that
sound cost estimating methods should be used and that consideration
should be given to costs in the determination of pricing policies.
(3) When an emergency exists as to any given product, sale
below the stated minimum price of such product, in violation of
Subsection (b) hereof, is forbidden.
(b) Emergency Provisions:
1) If the Board, after investigation shall at any time find both
(1) that an emergency has arisen within the Trade adversely affect-
ing small enterprises or wages or labor conditions, or tending toward
monopoly or other acute conditions which tend to defeat the pur-
poses of the Act; and (2) that the determination of the stated mini-
mum price for a specified product/service within the Trade for a
limited period is necessary to mitigate the conditions constituting
the emergency and to effectuate the purposes of the Act, the Code
Authority may cause an impartial agency to investigate costs and
to recommend to the Board a determination of the stated minimum
price of the product,'service affected by the emergency and thereupon
the National Industrial Recovery Board may proceed to determine
such stated minimum price.
(2) When the Board shall have determined such stated minimum
price for a specified product/service for a stated period, which price
shall be reasonably calculated to mitigate the conditions of such
emergency and to effectuate the purposes of the National Industrial
Recovery Act, it shall publish such price. Thereafter, during such
stated period, no member of the Trade shall sell such specified prod-
ucts at a net realized price below said stated minimum price and any
such sale shall be deemed destructive price cutting. From time to
time, the Code Authority may recommend review or reconsideration
or the Board may cause any determinations hereunder to be reviewed
or reconsidered and appropriate action taken.
3. Co.f Fhi;lding aind Accounting.-(a) Cost Finding.-The Code
Authority shall cause to be formulated methods of cost finding and
accounting capable of use by all members of the Trade, and shall
submit such methods to the Board for review. If approved by the
Board, full information concerning such methods shall be made
available to all members of the Trade. Thereafter each member of
the Trade shall utilize such methods to the extent found practicable.
Nothing herein contained shall be construed to permit the Code
Authority, any agent thereof, or any member of the Trade to sug-
gest uniform additions, percentages or differentials or other uniform
items of cost which are designed to bring about arbitrary uniform-
ity of costs or prices.
X. RuLEs OF FAIR PRACTICE
1. No member of the Trade shall secretly offer or make any pay-
ment or allowance of rebate, refund, commission, credit, unearned
discount, or excess allowance, whether in the form of money or
otherwise, nor shall a member of the Trade secretly offer or extend
to any customer any special service or privilege not extended to all
customers of the same class, for the purpose of influencing a sale.
2. Uniform contracts and maximum terms of sale for each com-
petitive area may be established by the Code Authority or its au-
thorized agent after approval thereof by the Board, and any devia-
tion from these contracts or any terms of sale in excess of such
maximum terms shall constitute an unfair competitive practice.
3. No member of the Trade shall accept any secret rebate, refund,
commission, credit, unearned discount, or excess allowance, whether
in the form of money or otherwise, not extended to all members of
the Trade of the same class under like terms and conditions.
4. No member of the Trade shall defame a competitor by falsely
imputing to him dishonorable business conduct, inability to perform
contracts, questionable credit standing, or by other false representa-
tion, or by falsely disparaging the grade or quality of his goods.
5. No member of the Trade shall wilfully induce or attempt to
induce the breach of existing contracts between competitors and
their customers by any false or deceptive means, or interfere with or
obstruct the performance of any such contractual duties or services
by any such means, with the purpose and effect of hampering, injur-
ing or embarrassing competitors in their business.
6. No member of the Trade shall give, permit to. be given, or
directly offer to give, anything of value for the purpose of influencing
or rewarding the action of any employee, agent, or representative
of another in relation to the business of the employer of such em-
ployee, the principal of such agent or the represented party, without
knowledge of such employer, principal or party. This provision
shall not be construed to prohibit free and general distribution of
articles commonly used for advertising except so far as such articles
are actually used for commercial bribery as hereinabove defined.
7. No member of the Trade shall induce a competitor's salesman or
credit man to leave his employment for the purpose of injuring a
8. No member of the Trade shall publish advertising (whether
printed, radio, display, or of any other nature) which is misleading
or inaccurate in any material particular, nor.shall any member of the
Trade in any way misrepresent any builders supplies (including, but
without limitation, its use, trade mark, grade, quantity, quality,
origin, size, substance, character, nature, finish, material content or
preparation) or credit terms, values, policies, services, or the nature
or form of the business conducted.
: 9. No member of the Trade shall agree or guarantee to furnish
sufficient quantities of builders supplies for any building or con-
struction operation at a lump sum price.
10. No member of the Trade shall knowingly withhold from or
insert in any quotation or invoice any statement that makes it in-
accurate in any material particular.
11. No member of.the Trade shall publish or circulate unjustified
or unwarranted threats of legal proceedings which tend to or have
the effect of harassing competitors or intimidating their customers.
12. No member of the Trade shall handle any builders supplies
(1) which either do not comply with any and all standards, includ-
ing, without limitation, standards as to quality, quantity, size and/or
performance, as well as any and all labeling requirements, incor-
porated in the separate approved codes of industries/trades relating
to such products as are handled by members of this Trade, or (2)
which do not bear indication that they are non-standard, when stand-
ards have been adopted for the types in question, or (3) which have
not either been manufactured or sold by a vendor who does not rep-
resent that he is in full compliance with the approved code of fair
competition, applicable to the industry or trade in which the vendor
is engaged, nor shall any member of the Trade sell or offer to sell
any goods to any contractor or consumer who has failed to comply
with his respective code; provided that no member of the Trade,
exercising due diligence in such handling of builders supplies to
comply with the provision hereof, shall be deemed in violation
hereof. Delivery of a certificate of such vendor that he or it is com-
plying in every particular with the code of fair competition appli-
cable to such vendor, the display of proper N. R. A. insignia or the
publication in a newspaper or periodical of general criculation of
such certificate of compliance or insignia shall constitute a good and
sufficient representation of compliance hereunder.
(a) Upon application, or upon its own motion, the Board may
grant exceptions or exemptions from provisions hereof if it shall
appear, (1) that the vendor of any such goods or services is not
subject. to a code of fair competition, agreement or license approved
under the Act; or (2) that compliance herewith would create undue
hardship or injustice or would not tend to effectuate the purposes
of this Code or the policy of the Act.
(b) No member of the Trade Thall make or cause to, be presented
or published any such representation which shall be false in any
XI. MO NOPOLIES
No provision of this Code shall be so applied as to permit monopo-
lies or monopolistic practices or to eliminate, oppress, or discriminate
against small enterprises.
XII. EFFECTIVE DATE
All provisions of this Code shall become effective and operative
ten (10) days after the approval thereof by the President of the
XIII. CHANGES IN THE CODE
1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provi-
sions of Subsection (b) of Section X of the Act, from time to time
to cancel or modify any order, approval, license, rule or regulation
issued under Title I of said Act.
2. Such of the provisions of this Code as are not required to be
included herein by the Act, may, with the approval of the Board,
after such notice and hearing as it shall prescribe, be modified or
eliminated in such manner as may be indicated by the needs of the
public, by changes in circumstances, or by experience.
Approved Code No. 37-Amendment No. 2.
Registry No. 1013-3-02.
UNIVERSITY OF FLORIDA
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