NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
FIBER WALLBOARD INDUSTRY
AS APPROVED ON MARCH 10, 1934
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1934
For sale by the Superintendent of DocumcnLs. Washington, D.C. - Price 5 cents
Approved Code No. 326
Registry No. 1630-1-03
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.
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Approved Code No. 326
CODE OF FAIR COMPETITION
FIBER WALLBOARD INDUSTRY
As Approved on March 10, 1934
APPROVING CODE OF FAIR COMPETITION FOR THE FIIER n .I.nO..\RD
An application having been duly made pur.-iantl to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Fiber Wallboard Industry, and hearings
having been duly held thereon and the annexed report on said Code
containing findings with respect thereto, having been made and
directed to the President.:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Exec-'utive Orders of the
President, including Executive Order No. 6543-A, dated D-ecember
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do find that said Code 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 said Code
of Fair Competition be and it is hereby approved.
HUGH S. JOHNSON,
Ad iin lisrator for In dust i,.l Recovery.
W'. A. HAnnrIAN,
MAarch 10, 1,34.
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report on the Code of Fair Competition for the
Fiber Wallboard Industry in the United States, as revised after a
public hearing conducted in Washington on December 6, 1933, in
accordance with the provisions of Title I of the National Industrial
I'PROVISIONS AS TO HOURS AND WAGES
Employees are not permitted to work more than forty hours per
week or eight. hours per day except as otherwise provided.
To meet peak production periods plant and factory employees
may be permitted to work forty-eight hours per week during any
six weeks in each six-month period provided one and one-half times
the normal rate is paid for hours worked in excess of eight per day
and forty per week.
Chauffeurs and truckmen may not be permitted to work in excess
of ten hours per day, forty-eight hours per week and one-hundred
and sixty-eight hours in any four-week period provided one and
one-half times the normal rate is paid for hours worked in excess of
forty per week and eight per day.
Engineers and certain other classes of employees, not exceeding
ten per cent of an employer's total number of plant employees, are
permitted a tolerance of ten per cent over their normal hours but
in no event in excess of forty-eight hours per week provided time and
one-half is paid for all hours worked in excess of forty a week and
eight a day.
Watchmen are permitted to work fifty-six hours a week.
Office service and sales employees are permitted to work forty
hours a week. A normal work day shall not exceed eight hours.
Hourly limitations do not apply to outside sales or sales service
men; or to executives, managers or supervisors, receiving thirty-five
dollars or more per week.
Hourly limitations do not apply to employees engaged in emer-
gency work involving breakdowns or in the protection of life or
property provided one and one-half times the normal rate is paid
for all hours worked in excess of forty per week or eight per day.
Employees are not permitted to work in excess of six days in any
seven day period.
The mininlumi hourly rate for all employees shall be forty cents
an hour, except as otherwise provided.
With the permission of the state authority, handicapped persons,
not exceeding five per cent of an employer's total number of em-
ployeeS, may be emphlyed on light work at a wage not less than
eighty per cent of the minimum rate provided.
Regardless of whether an employee is compensated on a time rate,
piece-work or other basis, a minimum rate of pay is established.
Compensation of employees receiving more than the minimum
shall be equitably adjusted and reported to the Code Authority but
in no case shall hourly or piece work rates be reduced.
Office and sales employees shall receive fifteen dollars per week
except office boys or girls not exceeding five per cent of an employer's
total number of office employees who may be paid eighty per cent
of this amount.
Female employees performing substantially the same work as male
employees shall receive the same pay as male employees.
No one under sixteen year of age shall be employed in the industry
nor anyone under eighteen years of age on machine operations.
ECONOMIC EFFECTS OF THE CODE
By operating under the President's Reemploynient Agreement, this
industry's payrolls were increased eighteen per cent. This Code will
effect further increases in the industry's payrolls.
The weekly income, of fourteen per cent of the industry's office
employees will be raised to fifteen dollars per week by this Code.
The minimum hourly rate which this Code provides for factory
employees is substantially above that. which has prevailed in the past.
The fifty-one hour work week for factory employees, which pre-
vailed in 1929, will be reduced by this Code to forty hours a week,
with minor exceptions. This reduction in working hours hiulld
substantially increase employment in the industry.
This Code will eliminate many unfair trade practices and facili-
tate the rendition of better service to the construction industry.
The Deputy Administrator in his final report to me on said Code,
having found as herein set forth and on the basis of all the proceed-
ings in this matter;
I find that:
(a) Said Code is well ile-igned to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of c;b.tructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of in-
dustry for the purpose of cooperative action among the trade groups,
by reducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision, by eliminat-
ing unfair competitive practices, by promoting the fullest polsiblo
utilization of the present productive capacity of industries, by avoid-
ing undue restriction of production (except as may be temporarily
required), by increasing the consumption of industrial and agricul-
tural products through increasing purchasing power, by reducing
and relieving unemployment, by improving standards of labor, and
by otherwise rehabilitating industry.
(b) Said industry normally employs n,,t more than 50,000 em-
ployees; and is not claS..ified by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant associa-
tion is an industrial association truly representative of the aforesaid
industry; and that said association imposes no inequitable restric-
tions on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is 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 Code.
For these reasons, therefore, I have approved this Code.
HUiGH S. JOHNSON,
A dm;nH iAnitator lfor Indu trial Recovery.
MARCHi 10, 1934.
CODE OF FAIR COMPETITION FOR THE FIBER WALL-
To effectuate the policies of Title I of the National Industrial Re-
covery Act, the following provisions are established as a Code of
Fair Competition for the Fiber Wallboard Industry, shall be the
standard of fair competition for this industry, and shall-be binding
upon every member thereof.
ARTICLE II-DEI NITIONS
The term "Fiber Wallboard Industry ", or "the industry", as
used herein means and includes the manufacture and sale by the
manufacturer of fiber wallboard, and the sale of such fiber wallboard
by manufacturers of roofing products, insulation products or gyp-
sum products who do not manufacture fiber wallboard but purchase
it for resale from the manufacturers thereof.
The term "fiber wallboard" as used herein means and includes
all products principally composed of mechanical, chemical, and/or
re-worked vegetable fibers manufactured in laminated sheets or plys,
and having a caliper thickness of .125 of an inch or more and sold or
offered for sale, principally for use for walls, ceilings, partitions,
signs, cut-outs and/or displays.
The term employee as used herein includes all persons engaged
in the industry, however compensated, except a member of the indus-
The term employer as used herein includes any one for whose
benefit such an employee is so engaged.
The term member of the industry" includes but without limita-
tion any individual, partnership or corporation, association or other
form of entity engaged wholly or in part in the industry as herein
The term President as used herein shall mean the President of
the United States.
The terms "Act" and "Aiministrator as used herein shall mean,
respectively, Title I of the National Industrial Recovery Act, and
the Administrator for Industrial Recovery.
SECTION 1. No employee shall be permitted to work in excess of
forty (40) hours in any week and eight (8) hours in any day except
as otherwise provided in this Article III.
SEC'TION 2. In order to provide for peak production periods, plant
and factory employees may, during any six weeks in each six month
period beginning January 1 and July 1 of each year, be permitted
to work up to but not in excess of forty-eight (48) hours in any
one week but all such time worked in excess of eight hours in any
one day and forty (40) hours in any week shall be paid for at not
less than one and one-half (1') times the normal rate except as
provided in Section 3.
SECTION 3. (a) Chauffeurs and truckmen may not be permitted
to work in excess of ten hours per day, forty-eight (48) hours per
week and one-hundred and sixty-eight (168) hours in any four week
period, beginning the effective date of this Code. If any such
employee works in excess of eight hours per day and.'or forty (40)
hours per week, he shall be compensated for such excess hours at
the rate of at least one and one-half times the normal rate.
(b) Engineers, firemen and electric operators may be permitted
to work not more than ten percent more hours than are permitted
in Section 1 and may not be permitted to work in excess of forty-
eight (48) hours per week for the peak periods provided in Section 2
but all work in excess of forty (40) hours per week and eight hours
per day shall be compensated by at least one and one-half (1'))
times the normal rate. The number of such employees shall not
exceed ten percent of an employer's total number of employees.
SECTION 4. The maximum hours for watchmen shall be fifty-six
(56) hours in any week.
SECTIIN 5. No accounting, clerical, office or sales employee shall
be permitted to work in excess of forty (40) hours. A normal work
day shall not exceed eight hours.
SECTION 6. The provisions of this Article shall not apply to out-
side sales or sales service men; or to executives, managers or super-
visors, receiving thirty-five (35) dollars or more per week.
SECTION 7. The provisions of this Article shall not apply to
employees engaged in emergency work involving breakdowns or the
protection of life or property provided they are paid at least one
and one-half (112,) times the normal rate for all hours worked in
exces-s of eight hours per day and forty (40) hours per week.
SECTION 8. No employer shall knowingly permit any employee to
work any time which, when totaled with that already performed for
anotlier employer or employers exceeds the maximum permitted
SECTION 9. No employee shall be permitted to work in excess of
six days .in any seven day period.
ARTICLE IV-W AGES
SLCT-ION 1. No employee shall be paid at less than at the rate of
forty (40) cents per hour except as otherwise provided in this Article.
SEnTION 2. Section 1 establishes the guaranteed minimum rate of
pay regardless of whether the employee is compensated on the basis
of a time rate or a piece-work performance or other basis.
SECTION 3. An equitable adjustment will also be made of compen-
sation in excess of such minimum rate by all members of the Industry
who have not. heretofore made such an equitable adjustment and
within sixty (60) days from the effective date hereof, each employer
shall report to the Code Authority, for submission to the Admin-
istrator, the action taken by such employer in p1nrumance of this
provision but in no case shall hourly or piece-work rates be reduced.
SECTION 4. All employers shall make payment of all wages due in
lawful currency or by negotiable check therefur payable on demand.
These wages shall be exempt from any payment for pensions, insiulr-
ance or sick benefits other than those voluntarily paid by employees
or required by state and federal law. Employees or their agents
shall accept, directly or indirectly, no rebates on s.l-h wages nor give
anything of value nor extend favrs to any per-nn for the purpose
of harmfully influencing rates of wages or working conditions of
SECTION 5. No accounting, clerical, office or salcs employee shall
be paid at less than the rate of fifteen (15) dollars per week, except
office boys or girls receiving less than such minimum, who shall be
paid at least eighty (80) percent of the minimum provided in this
section. The number of such office boys or office girls shall not exceed
five percent, of any employer's total number of office employees, ex-
cept that any employer may employ at least one such office boy or
SECTION 6. A person whose earning capa,-ity is limited b:cau.e of
age or physical or mental handicap may be employed on light work
at. a wage not less than eighty (80) percent of the minimum rate
established by this Code, provided the employer obtains from the
State Authority designated by the United States Department of
Labor, a certificate authorizing his employment at such wages as
shall be stated in the certificate. The State Authority shall be
guided by the instructions of the United States DepartmiPnt of Labor
in issuing such certificates. The number of such employees shall not
exceed five percent of any such employer's total n!uinber of em-
ployees. Each employer shall file with the Code Authority a list of
such persons employed by him.
SECTION 7. Female employees performing substantially the -aime
work as male employees shall receive the same pay as male employees.
Ar:rICLE V-GENERAL LABOR PRONIS;IINS
SI:CTION 1. No )person under sixteen (16) years of age shall be
employed in the Industry. No person under eighteen (18) years
of age shall be employed on machine operations.
SECTION 2. In compliance with Section 7 (a) of the Act, it is
provided that (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 em-
ployers of labor, or their agents, in the designation of such repre-
sentatives or in self-organization or in other concerted activities for
the purpose of collective bargaining or other mutual aid or protec-
tion, (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, and (c) employers shall comply with the
maximum hours of labor, minimum rates of pay, and other condi-
tions of employment approved or prescribed by the President.
SECTION 3. No provision in this Code shall supersede any state or
Federal law which imposes on employers more stringent require-
ments as to sanitary or general working conditions or insurance or
fire protection than are imposed by this Code.
SECTION 4. No employer shall re-classify employees or duties of
occupations performed or engage in any other subterfuge for the
purpose of defeating the purposes or provisions of the Act or of this
SECTION 5. Each employer shall keep posted, under such rules as
the Administrator may prescribe, in a conspicuous place at every
plant or factory in which Industry products are manufactured a
copy of this Code.
SECTION 6. Each employer shall make reasonable provision for the
health and safety of his workmen at the place and during the hours
of their employment. Standards for safety and health shall be sub-
mitted by the Code Authority to the Administrator for approval
within six months after the effective date of this Code.
SECTION 1. The Code Authority shall cause to be formulated an
accounting system and methods of cost finding and/or estimating
covering cost of industry products sold capable of use by all mem-
bers of the Industry. After such system and methods have been
formulated and approved by the Administrator, full details concern-
ing them shall be made available to all members. Thereafter all
members shall determine and 'or estimate costs in accordance with
the principles of such methods.
SECTION 2. No member of the industry after the adoption by the
Code Authority and approval by the Administrator of a uniform
cost formula shall price or sell any industry product below such
member's cost as determined by such formula except to meet an
established market price for the product. Established market price
on any industry product to any class of trade, except to another
member of the industry, means, for the purpose of this Section, the
price at which any competitor is selling such product to such class
SECTION 3. When the Code Authority determines that an emer-
gency exists in this industry and that the cause thereof is destructive
price-cutting such as to render ineffective or seriously endanger the
maintenance of the provisions of this Code, the Code Authority may
cause to be determined the lowest reasonable cost of the products of
this industry, such determination to be subject to such notice and
hearing as the Administrator may require. The Administrator may
approve, disapprove, or modify the determination. Thereafter, dur-
ing the period of the emergency, it shall be an unfair trade practice
for any member of the industry to sell or offer to sell any products of
the industry for which the lowest reasonable cost has been determined
at such prices or upon such terms or conditions of sale that the buyer
will pay less therefore than the lowest reasonable cost of such
When it appears that conditions have changed, t le Code Authority,
upon its own initiative or upon the request of ainy intler .-ted party,
shall cause the determination to be reviewed.
ARTICLE VII-PUBLICATION OF PRICE
SECTION 1. Each member of the industry shall. within five days
after the effective date of this Code, file with the Code Authority or
such other agency as the Code Authority may designate, a complete
list or schedule of prices and terms and conditions of sale of all fiber
wallboard products offered for sale by such memb-lir, and shall there-
after publish and file with the Code Authority, or with its designated
agency, all changes or revisions in such price list or schedule of prices
and terms and conditions of sale. The price list or schc lule of prices
and terms and conditions of sale so filed shall, for the purpose of this
Code, be treated as the published price list and terms and conditions
of sale of the member filing the same and shall be available for dis-
tribution to all inembers of the industry and to any interested party.
The Code Authority shall promptly cause a copy of all such price
lists and terms and conditions of sale, and all changes therein or revi-
sions thereof, to be sent to each member of the industry.
SECTION 2. No member of the industry shall sell any fiber wallboard
products at a price or prices less than, or upon terms and conditions
more favorable to the purchaser, than those stated in the price list
and terms and conditions of sale published and filed by such member
and then in effect, except to another member of the industry.
SECTION 3. If at any time hereafter the Administrator shall give
his approval to the requirement that subsequent changes or revisions
of price lists or terms and conditions of sale as provided in Section 1
hereof shall be filed a specified period of time prior to effective date
thereof, the Code Authority may require that, all changes in such
price lists or terms and conditions of sale or revi:ionn thereof there-
after filed shall be filed five (5) days (or such other period of time
as may be approved by the Administrator) prior to the effective date
of any such subsequent changes or revisions and any such price list
and terms and conditions of sale and changes therein or revisions
thereof as aforesaid so filed shall (unless the member filing such
change or revision shall cancel the same before the effective date
thereof) for the purpose of this code be treated as the published price
list and terms and conditions of sale of the member filing the same
and shall be available to each member of the Indultry and after
effective date thereof to any interested party. The Code Authority
shall promptly cause a copy of all such price lists and terms and con-
ditions of sale and all changes therein or revisionri thereof to be sent
to each member of the Industry. In the event that any industry
member shall not receive sufficient notice of the filing by any other
industry member of changes in such other member's prices or terms
and conditions of sale as will enable such member to meet such
changes on the effective date thereof, such member may file with the
appropriate agency such changes in his prices or terms and condi-
tions of sale as may be required to meet the changes filed by such
other member. Changes so filed shall become effective on the same
date as the effective (late for the changes of such other member first
filing as aforesaid, or, if those changes shall have already become
effective, then the changes subsequently filed as.aforesaid, shall
become effective immediately.
ARTICLE VIII-TRADE PRACTICES
SECTION 1. A Trade Practice Code for the Industry is attached
hereto as Exhibit A. Any deviation from the standards of fair
dealing set forth in Exhibit A shall be a violation of this Code.
To further effectuate the policies of the. Act, a Code Authority
is hereby set up to administer this Code in cooperation with the
SECTION 1. The Code Authority shall consist of one representative
from each member of the industry who shall subscribe to the Code
and pay his pro rata share of the expense, as provided in Section 6
hereof and in addition, there may be three members, without vote
and without cost to the Industry, appointed by the Administrator
to serve for such periods as he may designate.
SECTION 2. The Code Authority shall have the following powers
(a) To make rules and regulations for its own conduct in the
administration of this Code;
(b) from time to time to require such reports from members
of the industry with respect to capacity, production and orders for
shipment, persons employed, wage rates, wages and hours of labor,
prices, costs, and other items as may be necessary to advise it and
the Administrator adequately in the administration and enforcement
of this Code;
(c) to investigate complaints of violations of this Code and to
seek adjustments thereof within the requirements hereof subject to
such rules and regulations as the Administrator from time to time
(d) to prepare and promulgate for the industry from time to
time, subject to the approval of the Administrator, a merchandising
plan, or changes in or additions to any such plan which may be
adopted under this Code, containing such provisions as may be
necessary or proper to insure fair selling methods by the industry
and to prevent unfair competitive practices, and to provide for the
standardization of products by the members of the industry, subject,
however, to the approval of the Administrator;
In addition to information required to be submitted to the Code
Authority, all or any of the persons subject to this Code, shall
furnish such statistical information as the Administrator may deem
necessary for the purposes recited in section 3 (a) of said Act to
such Federal and State agencies as the Administrator may desig-
nate; nor shall anything in this Code relieve any person of any
existing obligation to furnish reports to government agencies.
In order to assure confidential treatment of indiviluil figures,
all reports, data, and information which the said Code Ailt!lhrity
is empowered to collect or receive shall be collected or received by
an agency appointed by the Code Authoiity, not a member or con-
nected with a member of the indu-trv. The Code Authority may
likewise appoint such an agency to invet-igate complaints of vio-
lation of this Code. All reports, data, anid infl.orimationi so collected
or received, or so obtained on any such investigation. shall be kept
confidential by such agency collecting, receiving, or obtaining the
same, except that in the event any such reports, data, or information
shall substantiate any alleged violation of tlis Code, then the Code
Authority shall be informed and shall, if requested by the Admin-
istrator, present, evidence of any such violation to the Adminiiistra-
tor or to such agency as he may designate.
Collusion between any industry member and any such confidential
agency for the purpose of examining any report or data or obtain-
ing any information collected or received by such confidential agency
shall constitute a violation of this Code.
SECTION 3. The Code Authority may delegate any of its powers
or functions to committees of not less than three members of the
industry or to such agency as it may designate but the Code Author-
ity shall be responsible for the acts of any such committee or
SECTION 4. At any duly called meeting of the Code Authority the
affirmative vote of a majority of the manufacturing members (or
their representatives) of the Code Authority present, and which
majority represents at least two-thirds of the total production for
the preceding calendar year of the then manufacturing members of
the industry subscribing to the Code, shall be required to make
effective any action of the Code Authority.
SECTION 5. If the Administrator shall determine that any action
of a Code Authority or any agency thereof may be unfair or un-
just or contrary to the public interest, the Administrator may re-
quire that such action be suspended to afford an opportunity for
investigation of the merits of such action and further considerations
by such Code Authority or agency pending final action, which shall
not be effective unless the Administrator approves or unless he
shall fail to disapprove after thirty days' notice to him of intention
to proceed with such action in its original or modified form.
SECTION 6. All expenses involved in administering the Code shall
be determined by the Code Authority and prorated equitably among
members of the industry subject to the jurisdiction of this Code
and subscribing thereto. The proration of all such expenses shall
be on the basis of domestic footage of industry products shipped
during such specified period of time as the Code Authority shall
SECTION 7. Nothing 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 any one
for any act of any other member of the Code Authority. Nor shall
any member of the Code Authority exercising diligence in the con-
duct of his duties hereunder be liable to any onIe for any act or
omission to act under this Code except for his own wilful misfeas-
ance or non-feasance.
SECTION 8. The Code Authority shall have the power to propose
amendments to this Code.
SEcTION 1. Each trade or industrial association directly or in-
directly participating in the selection or activities of the Code
Authority shall (1) impose no inequitable restrictions on member-
ship, and (2) submit to the Administrator true copies of its articles
of aI-sociation, by-laws, regulations, and any amendments when
made thereto, organization, and activities as the administration may
deem necessary to effectuate the purposes of the Act.
SECTION 2. No provisions of this Code shall be interpreted or
applied in such manner as to promote or permit monopolies or
monopolistic practices; permit or encourage unfair competition;
eliminate or oppress small enterprises or discriminate against them.
SECTION 3. Articles VI, VII, and VIII of this Code, and any
Trade Practice Code or Merchandising Plan adopted by the indus-
try, shall apply only to sales for consumption in the United States,
its possessions and territories.
SECTION 4. As required by Section 10 (b) of Title I of the Act
the following provision is contained in this Code: The President
may from time to time cancel or modify any order, approval, license,
rule or regulation issued under this said Act.
SECTION 5. Such of the provisions of this Code as are not re-
quired to be included herein by the Act may upon submission to the
industry and approval of the Administrator be modified or elimi-
nated as changes in circumstances or experience may indicate. It
is contemplated that from time to time supplementary provisions
to this Code or additional codes may be submitted for the approval
of the Administrator, to prevent, unfair competition in price and
other unfair and destructive competitive practices and to effectuate
the other purposes and policies of Title I of the Act consistent with
the provisions hereof and any such supplementary provisions or
additional codes, after submission to the industry and approval by
the President shall become a part of this Code. The Code Au-
thority is authorized to recommend to the Administrator, in the
manner provided herein, any such proposals for modification, sup-
plementary provisions or additional codes.
SECTION 6. Violation by any member of this industry of any of
the provisions of this Code or of any approved amendment hereof
is a violation of the Code.
SECTION 7. This Code and all of the provisions thereof shall cease
to be in effect on June 16, 1935, or sooner if the President shall
by proclamation or the Congress shall by joint resolution declare
that the emergency recognized by Section 1 of the said Act has
SECTION 8. This Code shall be in effect beginning the second
Monday after its approval by the President.
Approved Code No. 326.
Rc.istry No. 1130-1-03.
TRADE PRACTICE CODE
SECTION 1. Definition.-For all purposes of this Trade Practice Code the acts
described herein shall constitute unfair methods of competition Any member
of the industry who shall directly, or indirectly through any officer, employee,
agent or representative, knowingly use, employ or permit to be employed any
of such unfair practices shall be guilty of a violation of the Code. The term
" customer ", as used in this Trade Practice Code, shall include purchasers and
prospective purchasers of products of this industry, the officers, employees or
representatives of such purchasers or prospective purchasers and any other
party in a position to influence materially the sale of industry products.
SECTION 2. Price Di.sci'mination.-No member shall discriminate in price,
either directly or indirectly, between different purchasers of commodities, ex-
cept on account of difference in quantity, quality or grade of products sold and
except the making of a reasonable differential in price charged to different
classes of trade, and except the making of different prices in different markets
according to usual distribution of such products prevailing in the industry; pro-
vided, however, that nothing herein contained shall prevent the members of the
industry from selecting their own customers. No member shall make any
discrimination in price by falsely classifying a customer; by pooling shipments
on specified contracts destined to various purchasers for the purpose of reduc-
ing prices below the published price for the quantity destined to an individual
purchaser; by extending to any customer more liberal terms than those regularly
published by such member for, or extended to, all other customers of the same
class: by allowing over-riding discounts payable at some future date; or by
carrying notes for a customer past the due dates unless interest is payable
thereon at the rate of at least six percent per annum, or at less than the legal
rate, if the legal rate be less than six percent per annum.
SECTION 3. Rcbates.-No member of the industry shall, directly or indirectly,
make or permit to be made any payment or allowance of any secret or unearned
rebate, refund, credit discount, commission, bonus, or other allowance or sub-
sidy of any character whatsoever, whether in the form of money, service, ex-
cessive allowances for alleged defective merchandise, shortages, adjustments
of complaints, or returned goods; or by extension of guarantees to customers
against price advances or price declines; or by issuance of credit allowances
or refunds on inventory stocks of customers because of price changes or other-
wise; or by rendering fictitious invoices or making shipments of merchandise
in quantities different than shown on the invoices; or by permitting deductions
on payment of invoices of items not covered by the terms of sale; or by dis-
posing to a customer at reduced prices material which has been shipped to a
customer and not paid for; or in any other form or manner whatsoever.
Without limitation up(In the foregoing provisions of this section, the follow-
ing particular practices which likewise result in secret rebates and allow-
ances, are prohibited:
(a) assuming any portion of the expenses of operation of a customer's busi-
ness, including the placing of advertising in any customer's individual publi-
cation or catalog;
(b) assuming any credit responsibility for the accounts of a customer, by
guarantee or otherwise;
(c) splitting or sharing a salesman's compensation with a customer;
(d) selling or disposing of securities to customers at less than the market
(e) assuming or paying any expense incurred in painting -in.s on a cus-
tomer's place of business advertising the products of a member of the indu-try
except such actual expense therefore as may be specified in an invoice for the
cost of such worik signed by the sign painter empllhyed1 to perfl.rm such work;
(f) retaining or complnlsatiang any truckinii (co~i):!aiy, owned either whlilly
or in part by a customer, for transporting gi ,l1ds for such customer's account;
UNIVERSITY OF FLORIDA
III Il II1 BIII I lIIIIIBIR I BI NILII
578 3 1262 08584 3554
(g) purchasing any materials from customers at prices in excess of such
customer's current market prices therefore; and then only to fill a bona fide
(h) making any loans to customers;
(i) encouraging or permitting lavish entertainment of a customer, or betting
or any form of gambling with a customer;
(j) renting or leasing for any purpose any part of the premises of a pur-
chaser of industry products;
(k) storing goods on premises in which a purchaser of industry has an
interest except a public warehouse in which such purchaser's business is not
(1) acquiring any financial interest of any character in the business of any
customer except through the purchase of securities regularly listed on a
public exchange, or except to participate in the liquidation of an insolvent
customer or except when such purchase of an interest or securities represents
at least 51% of the voting or controlling securities of such business;
(m) giving a customer any donations of cash or articles of value or any
free industry products except samples as hereinafter permitted in Section 4
SECTION 4. Commercial Bribery.-No member of the industry shall give, permit
to be given, or directly offer to give, anything of value for the purpose of in-
fluencing or rewarding the action of any employee, agent or representative
of another in relation to the business of the employer of such employee, the
principal of such agent or the represented party, without the knowledge of
such employer, principal or party. Commercial bribery provisions 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 com-
mercial bribery as hereinabove defined.
SECTION 5. Inducing Sales by Other Products.-No member of the industry
shall sell or offer for sale as inducement for the purchase of any industry
products any article or commodity, whether an industry product or not, at
prices below such member's current prices therefore.
SECTION 6. Defamation of Competitors.-No member of the industry shall
defame or disparage a competitor, directly or indirectly, by words or acts
which untruthfully challenge his business integrity, his ability to perform his
contracts, his credit standing, his policies, or the grade, quality or quantity of
SFCTrN' 7. Inaccurate Advertising and Misrepresen.tation.-No member of the
Industry shall use advertising (whether printed, radio, display or of any other
nature) or other representation which is inaccurate in any material particular
or in any way misrepresent any commodity, (including its use, trade mark,
grade, quality, quantity, origin, size, substance, character, nature, finish, mate-
rial content or preparation) or credit terms, values, policies, services, or the
nature or form of the business conducted.
SECTION 8. False Branding.-No member of the industry shall brand or mark
or pack any commodity in any manner which tends to deceive or mislead pur-
chasers with respect to the brand, grade, quality, quantity, origin, size, material
content or preparation of such commodity.
SECTION 9. Standard Forms of Quotations and Contracts.-Standard forms
of Quotations may be adopted by the Code Authority subject to the approval
by the Administrator after such notice and hearing as he may prescribe. After
such approval, all quitations shall be made in accordance with the terms and
conditions of such forms of quotations and all contracts shall be made in
substantial accordance with the terms and conditions set forth in any standard
form of contract so adopted and approved, and no member of the industry shall
depart in any material particular from such standard terms and conditions
in the making of any quotation or contract in any transaction.
SECTION 10. Consignments.-No member of the industry shall ship com-
modities on consignment except under circumstances to be defined by the Code
Authority, where peculiar circumstances of the trade require the practice.
SECTION 11. Lump Sum Contracts.-No member shall accept any order for
contracts of sale at a lump sum where the contract does not specify the exact
quantity, quality and unit price of the industry products purchased.
SECTION 12. Diversion and Stopovers.-No member shall divert shipment in
transit for the purpose or with the effect of allowing concessions or reducing