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! UNIVERSITY OF FLORIDA
31 lllillllil il III262 0846 771
3 1262 08486 7471
Registry No. 1013-3-02
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
BUILDERS SUPPLIES TRADE
AS APPROVED ON OCTOBER 3, 1933
UNIV. OF FL LUG.
:--~- -V---"- WE OUR PART
* 1 r: i, tt"-TORY
1. Executive order
2. Letter of Transmittal
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933
Sr =ale to the SuperIntendent of Documenta, Washington, D.C. - Price S cent
Le. :,.; <* .*. .. A
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
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.O.: Chamber of Commerce Building.
Chicago. Ill.: Suite 17,60, 201 North Wells Street.
Cleveland, Ohio: Chi-nber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 2213 First National Batik Building.
Houston, Ttsx.: Chamber of Crommerce Building.
Indianapolis. Infl.: Chamber of Commerce Building.
Jnakoi.riville, Fla.: Clhamber of Commerce Building.
Kansas City. Mo.: 10J2S Baltimore Avenue.
Los Aiigles. Calif.: 1163 South Broadway.
Loui.;ville, Ky.: Room 405, 421 West Market Street.
Meminphis. Tenn.: 2Gi' South Water Street.
Minneapolis. Minn.: 213 Federal Building.
New Orleans. La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk. Va.: 400 East Plume Street.
Philadelphia. Pa.: Room 812. 20 South Fifteenth Street
Pittsburgh. Pa.: Chamber of Commerce Building.
Portland, 4 reg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Fr:incisco, Calif.: 310 Customhouse.
Seattle, Wash.: 1406 Vance Building.
CODE OF FAIR COMPETITION FOR THE BUILDERS SUPPLIES TRADE
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 a Code
of Fair Competition for the Builders Supplies Trade, and hearings
having been held thereon and the Administrator having rendered
his report containing an analysis of the said Code of Fair Com-
petition together with his recommendations and findings with re-
spect thereto, and the Administrator having found that the said
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
Now, Therefore, I, Franklin D. Roosevelt, President of the United
States, pursuant to the authority vested in me by title I of the
National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do approve the report and recommendations and adopt
the findings of the Administrator and do order that the said Code
of Fair Competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
THE WHITE HOUSE,
HUGH S. JOHNSON,
SEPTEMBER 28, 1933.
The White House.
My DEAR MR. PRESIDENT: I have the honor to submit and recom-
mend for your approval the Code of Fair Competition for the
Builders Supplies Industry.
The following exhibits are included or attached:
1) Final Code submitted.
2) Notice of hearing.
3) Statement of procedure.
4) Transcript of the records.
5) Statistical analysis of the Division of Economic Research
(6) Report of Deputy Administrator.
An analysis of the Code has been made by the Administration.
I find that the Code complies with the requirements of clauses 1 and 2,
subsection (a) of section 3, and subsection (a) of section 7 of the
National Industrial Recovery Act.
I am, my dear Mr. President,
Very sincerely yours,
HUGH S. JOHNSON,
CODE OF FAIR COMPETITION FOR DEALERS IN BUILDERS
SUPPLIES SUBMITTED BY THE NATIONAL FEDERATION
OF BUILDERS SUPPLY ASSOCIATIONS
To effectuate the policy of Title I of the National Industrial Re-
covery Act, the following provisions are submitted as a Code of Fair
Competition for Dealers in Builders Supplies and upon approval
thereof by the President shall be the standards of fair competition
for the Industry.
Builders Supplies.-The term Builders Supplies as used herein
is broadly defined as those products used in building and construc-
tion work and commonly designated as fire resistant. The term
"building supplies as used herein specifically comprehends the fol-
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,
Face Brick, Fire Brick and Clay, Glazed Structural Tile, Gypsum
Products, Hollow Tile Lime and Lime Products. Mesh Re-enforce-
ment, Metal Lath and kindred products, Mineral Aggregates, Mortar
and Cement Colors. Molding Plasters, Roof and Flooring Slates,
Sewer Pipe, Fine Lining and other Clay Products, Structural Terra
Cotta and Waterproofing compounds.
Dealer.-For the purposes of administering this Code a dealer in
builders supplies shall be defined, but without limitation, as any
member of the industry not directly engaged in manufacturing, con-
tracting, or in financing construction operations (except in the case
of the individual home-owner building for his own use), possessing
Warehouse facilities and other equipment commensurate with the
needs of the market which he serves; who maintains an office open
to serve the public throughout the entire year; who constantly ware-
houses an adequate line of builders supplies in sufficient quantity and
variety to supply the normal needs of his community from his own
Member of the Industry.-The term Member of the Industry" as
used herein shall include any business enterprise engaged in the sale
of builders supplies to contractor or consumer.
Builders Supply Industry.-The term Builders Supply Indus-
try" as used herein shall include any business enterprise engaged in
the sale of builders supplies to contractor or consumer.
Employee.-The term "employee shall include any person em-
ployed by any person engaged in the Builders Supply Industry,
irrespective of the nature of payment of his compensation.
Employer.-The term Employer as used herein includes any
one by whom any such employee is compensated or employed.
Code Authority.-The term Code Authority as used throughout
this Code refers to the Administrative Committee of this Code as
established in Article VI hereof.
President.-The term President as used herein refers to the
President of the United States or his duly authorized representative.
II. RIGHTS OF LABOR
1. (a) Employees shall have the right to organize and bargain col-
lectively through representatives of their own choosing and shall be
free from the interference, restraint, or coercion of employers or their
agents in the designation of such representatives or in such self-
organization or in other concerted activities for the purpose of collec-
tive bargaining or other mutual aid or protection.
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to
refrain from joining, organizing, or assisting a labor organization of
his own choosing.
2. Employers shall comply with the maximum hours of labor,
minimum rates of wages, and other working conditions which shall
be approved or prescribed by the President. An employer shall so
administer work in his charge as to provide the maximum prac-
ticable continuity of employment for his work force.
2. (a) Employers shall not reclassify employees so as to defeat
the purposes of the Act.
III. HOURS OF LABOR
The maximum hours of labor of employees of persons subject to
the jurisdiction of this Code, shall not exceed forty (40) hours in any
one week in any of the forty-eight (48) states or the District of
Columbia, with the four exceptions noted below:
(a) Executives employed in a managerial capacity who are paid
Thirty-five ($35.00) Dollars or more per week; outside salesmen,
night and Sunday watchmen, and branch yard managers, each
branch yard to be restricted to one branch manager.
(b) The maximum hours of labor of employees of dealers employ-
ing not more than two (2) persons in towns of less than 2,500 popula-
tion which towns are not part of a larger trading area as defined in
Article IV, shall be forty-eight (48) hours per week; provided at
least sixty-six and two thirds (662.%) percent of the sales volume of
said dealers is to persons engaged in agriculture, and provided
further that such employees may work more than forty-eight (48)
hours per week if paid time and a half (based on minimum hourly
wage for a forty (40) hour week as provided in Article IV for all
hours in excess of forty-eight (48).
(c) Yard foremen, truck drivers, and their helpers shall be per-
mitted to work up to forty-four (44) hours in any one week. Hours
of labor beyond this maximum shall be paid on a basis of time and
one half for every hour worked.
The maximum number of hours shall be reviewed by the code
Authority three months from the effective date, and if business con-
editions warrant it, the weekly number of hours which employees
shall work will be shortened so that employment may be spread
IV. RATES OF WAGES
The weekly wages of all employees receiving more than the mini-
mum wages specified in this Article shall not be reduced, notwith-
standing any reduction in the number of working hours of such
(a) Except to night and Sunday watchmen and subject to the
exceptions noted below, employers shall pay in cities of 500,000
population or more not less than the minimum rate of wage per
hour specified opposite the division in which such cities are located,
nor less than 5 cents per hour less than the minimum rate of wage
per hour hereinbelow specified opposite each such division in cities
of less than 500,000 population or more than 75,000 population, nor
less than 10 cents per hour less than the minimum rate of wage
per hour specified opposite each such division in cities of less than
75,000 population, unless such cities are in a trade area as herein-
after defined. For the purposes of this paragraph, population shall
be determined by reference to the 1930 Federal Census. The mini-
mum rate per hour herein provided for shall be applicable to the
immediate trade areas of cities as defined by the Chamber of Com-
merce of such cities.
Alabama, Georgia, Florida, North Carolina, South Carolina,
Kentucky, Louisiana, Mississippi, Tennessee, Texas, Virginia, West
Virginia, Arkansas, New Mexico, and Arizona, 35 per hr.
Delaware, Maryland, District of Columbia, Colorado, Wyoming,
Oklahoma, Utah, Montana, Idaho, Washington, Oregon, Nevada,
and southern division of California, 404 per hr.
California( northern division), Illinois, Indiana, Pennsylvania,
New Jersey, Nebraska, New York( except New York City), Ver-
mont, New Hampshire, Maine, Massachusetts, Connecticut, Rhode
Island, Minnesota, North Dakota, South Dakota, Iowa, Ohio, Mis-
souri, Kansas, Wisconsin, Michigan, 450 per hr.
City of New York, 500 per hr.
It is agreed that the rates hereinabove set forth establish a guar-
anteed minimum rate of pay regardless of whether the employee is
compensated on the basis of a time rate or on a piecework rate.
Each employer shall report to the Administrator adjustments made
in his piece-rate schedule.
(b) The weekly wage for Clerical and Office Employees whose
maximum hours are forty (40) shall not be less than that provided
by the hourly rates in Article IV a.
(c) The weekly wage for Clerical and Office Employees provided
for by Paragraph (b) of Article III shall be the same as employees
whose maximum hours are forty (40) per week and provided that
time and one half shall be paid for hours in excess of forty-eight
(48) and provided that no such employee shall receive less than
$12.00 for such 48-hour week.
(d) Rates of wages for labor used in the handling and delivery
of material above the minimum provided in paragraph (a) within
each metropolitan or urban area shall, as to all dealers in each respec-
tive area, be not less than such rates as shall be agreed upon by the
majority of all dealers in builders' supplies in each trading area,
after the approval thereof by the Code Authority and by the
(e) The weekly wages of persons employed for a maximum greater
than forty (40) hours per week as provided by paragraph (b) of
Article III of this Code shall not be increased by reason of their em-
ployment for more than forty (40) hours per week, provided such
employees shall be paid time and one half (based on minimum hourly
wage of a forty (40) hour week as provided in this Article) for all
hours worked in excess of forty-eight (48).
V. CHILD LABOR
(a) The minimum age for employees in the Builders Supply Indus-
try shall be the legal limit as provided by the laws of the State in
which the operation is located, but in no instance less than eighteen
(b) Persons subject to the jurisdiction of this Code shall comply
with any law of any Governmental unit imposing more stringent
requirements regulating wages, hours of work. health, fire, or general
working conditions than are imposed by this Code.
VI. ADMINISTRATION AND ENFORCEMENT
The administration of this Code, which shall govern the fair com-
etitive practices of all members of the industry as defined in Article
I, Section (a) of this Code shall be under the'direction of the Code
Authority. The Code Authority shall be elected from the Directors
of the National Federation of Builders Supply Associations by such
directors and shall be composed of seven (7) members. The Admin-
istrator, if he so elects and after consultation with the Code Author-
ity, may appoint not more than two additional members of the Code
Authority. The Administrator may also appoint not. more than
three (3) nonvoting members of said Code Authority, who shall serve
as representatives of and advisors to the President.
The Code Authority shall appoint appropriate agencies for the
Administration of this Code and shall delegate to such agencies all
necessary authority for the Administration of this Code, including
the authority to approve such rules and regulations as may not be
inconsistent with this Code which shall apply to all dealers within
such trading area after such rules and regulations have been approved
by the National Recovery Administration. However, the Code
Authority shall reserve the power to administer the provisions of
For the administration of this Code in the case of dealers in build-
ers supplies, 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 Federation of Builders
Supply Association, 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 t" ) Retail Lumber and Building Material Trade for the adminis-
tration of the Code of Fair Competition for which it is the con-
The Code Authority, in conjunction with the National Recovery
Administration, is empowered to act as follows:
(a) To appoint within each federated group, in cooperation with
the appropriate division under the Code of Fair Competition for
the retail lumber and building material trade, a joint Inmerpretation
Committee, with equal representation, of such number as may be
deemed advisable. This Committee shall be empowered to interpret
the provisions of the trade practice rules of the Code of Fair Com-
petition for the retail lumber and building material trade and of this
Code insofar as such rules affect dealers in lumber and builders sup-
plies. This Conmmittee shall coordinate trade practice regulations
of Subdivisions under the Codes of Fair Competition aforesaid
wherever necessary. The interpretations and decisions of this Joint
Committee shall be subject to the appeal as hereinafter provided for.
The Code Authority shall appoint a National Joint Interpreta-
tion Committee in cooperation with the Code Authority for the
Retail Lumber and Building Material trade, with equal representa-
tion, of such number as the two Code Authorities shall jointly deter-
mine. This Committee shall review appeals from the decision of the
Joint Interpretation Committee appointed within the Federated
groups. The decisions of such Joint Interpretation Committee shall
e subject only to review as prescribed by the Administrator in
accordance with the law.
(b) To obtain from all dealers, either directly or through authur-
ized agents, such data as to volume and character of business and
such reports as shall in its judgment be necessary to the Iproper
administration of the provisions of this Code.
(c) To make such inquiry and investigation as it may deem desir-
able as to the operation of this Code, and to make such reports as
the Administrator may direct, periodically, or as often as he may
request. In addition to information required to be submitted to
the code authority, there shall be furnished to government agencies
such statistical information as the Administrator may deem neces-
sary for the purpose recited in Section 3 (a) of the National Indus-
trial Recovery Act.
(d) Directly, or through properly authorized agents, to hear and
adjust complaints; to arbitrate disputes; to consider proposals for
change and amendment to this Code and to make appropriate recolm-
mendation to the Administrator.
(e) Upon approval by the Administrator, to ratify such terri-
torial divisions within each federated association to be known as
metropolitan or urban trade areas or to establish such areas, if neces-
sary, and, directly or through its agents, to administer such rules
and regulations, not inconsistent with this Code, and subject to
the approval of the Administrator as may be agreed upon by the
majority of dealers within such trade areas so approved or estab-
(f) To consider and take such action as may be appropriate with
reference to any infraction of this Code or as to any dispute arising
from its operations. When such authority has been delegated by
the Code Authority to an agent the parties at interest shall have
the right of appeal to the Code Authority if they so desire and the
findings of the Code Authority shall be subject to review as pre-
scribed by the Administrator in accordance with the law.
(g) For cause and after complaint, the Code Authority or its
authorized agent shall be vested with the authority to hear any
dealer in builders' supplies in order to make effective the purposes
and intent of this Code, prior to citing such dealer to the Adminis-
trator for such action as the law may provide.
(h) To prepare and maintain, either directly or through its agents,
a current and complete list of dealers in builders' supplies, which
list shall be available only to the inspection of the Code Authority
and the President.
(i) No inequitable restriction on admission to membership shall
be imposed by the National Federation of Builders Supply Asso-
ciations or by any of its federated groups, and no changes or modi-
fications in the Articles of Agreement or bylaws shall be adopted
by the National Federation of the Builders Supply Associations or
by any of its federated groups which will tend to make such associa-
tions or federated group not truly representative of the industry as
VII. COST OF ADMINISTRATION
The reasonable cost of initiation, approval, and administration of
this Code shall be assessed on a pro rata basis upon members of the
industry and accepting the benefits of the activities of the Code
Authority under this Code, and shall be based upon the total volume
of sales of builders supplies as defined within this Code. The Code
Authority or its authorized agent shall determine the appropriate
sum due from each such member of the industry, such determination
to be subject to review by the Administrator.
Members of the industry, who comply with the requirements of
this Code and who agree in writing, either individually or through
the federated group of which they are members, to abide by the
requirements of this Code and to pay their reasonable share of the
expense of initiation, approval, and administration thereof, shall be
entitled to the benefit of the activities of the Code Authority there-
under and to make use of the National Recovery Administration
The Code Authority shall be charged with the collection of this
sum or it may delegate the collection to proper agents.
(Explanatory Note: When the administration of this Code is dele-
gated 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 Build-
ing Specialties, 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.)
VIII. AFFIDAVITS OF COMPLIANCE
Each dealer in builders supplies shall submit to the Code Author-
ity or its authorized agent upon demand, but not more frequently
than monthly, an affidavit properly executed before a Notary Pub-
lic, certifying that he has complied with the provisions of this Code
setting forth the schedule of rates of wages, hours of labor, and
maintenance of all other rules as set forth within this Code. These
affidavits shall be filed with the Code Authority and shall be avail-
able at all times to the inspection of the President.
IX. UNIORM COST ACCOUNTING
(a) It is the judgment of the Builders Supply Industry that
accurate knowledge of costs is indispensable to the proper adminis-
tration of the provisions of this Code. Each dealer in builders'
supplies subject to the jurisdiction of this Code may install such sim-
plified uniform system of accounting as may be recommended by the
Code authority (or its properly authorized agent) and approved
by the Administrator.
(b) No member of the industry shall sell any material below
cost. Cost shall be interpreted as the actual cost of merc-handise
plus every element of expense involved in completing the sale and
delivery of merchandise to the customer.
In determining the cost involved in completing the sale and de-
livery of merchandise to the purchaser, commonly known as over-
head, the statistical mode shall be applied.
(c) All prices, terms, and conditions of sale as developed under
the uniform cost accounting system or established by appropriate
rule or regulation within any trade area shall be published by each
dealer within each trade area and shall be filed with the Code Au-
thority or its delegated agent. Any deviation from such published
prices, terms, and conditions of sale until new prices, terms, and
conditions of sale shall have been published and filed shall be
construed as unfair competitive practice.
(d) No employer shall sell builders' supplies as herein defined,
below cost. For the purpose of this paragraph, cost is defined to
include the actual cost of merchandise to the seller plus actual over-
head. Overhead shall include actual disbursed expense involved in
selling and delivering merchandise as determined by accounting
methods approved by the Code Authority and the Administrator, in
accordance with Article IX, Paragraph (a), of this Code, and shall
be computed by the statistical mode method. If at any time the Code
Authority desires to change this method of computing costs, applica-
tion shall be made to the Administrator for a revision of the factors
to be included in the determination of costs, or for a revision of the
method by which such factors are determined or both, or if at any
time the Administrator, upon his own initiative, desires to change
this method of computing costs he may make such appropriate revi-
sions thereof as he may deem necessary.
X. RULES OF FAIR PRACTICE
(a) No dealer in builders' supplies shall make or permit of any
secret rebate, refund, credit, or unearned discount, in the form of
money, or otherwise; nor shall he give premiums or extend to certain
purchasers any special service or privilege not extended to all
purchasers under like terms and conditions.
(b) Uniform contracts and maximum terms of sale shall be estab-
lished by the Code Authority or its authorized agent after approval
thereof by the Administrator for each trade area and any deviation
from these contracts or any terms of sale in excess of such maximum
terms shall constitute an unfair competitive practice.
(c) The acceptance of any secret rebate, refund, or concession by
any dealer which is not accorded to all similar dealers from any
source of supply shall constitute an unfair competitive practice.
(d) No dealer in builders' supplies shall defame a competitor by
word or action which shall falsely impute to him dishonorable con-
duct or intent nor shall he falsely disparage the quality of his
(e) No dealer in builders' supplies shall wilfully interfere with
another dealer by any means or device whatsoever in any existing
contract or order when such interference is for the purpose or has the
effect of destroying or appropriating the patronage, property, or
business of another dealer.
(f) No dealer in builders' supplies shall offer or give commissions,
prizes, premiums, gifts or excessive entertainment to anyone in con-
nection with the sale, purchase or use of any product distributed by
dealers in builders' supplies or as an inducement to such sale, pur-
chase, or use.
(g) Inducing a competitor's salesman or credit man to leave his
employment for the purpose of injuring a competitor's business shall
constitute an unfair competitive practice.
(h) No dealer in builders' supplies shall mark or brand products
of any industry for the purpose of, or with the effect of, misleading
or deceiving purchasers with respect to quality, quantity, size, grade,
or substance of the materials purchased.
(i) No dealer in builders' supplies shall sell any article at less than
cost, nor shall he permit of deliver concession for the purpose.
directly or indirectly, or with the e ect of furthering the sale of
some other product.
(j) No dealer in builders' supplies shall agree or guarantee to
furnish sufficient quantities of building material for any building
or construction operation at a lump-sum price. To quote such lump-
sum bid shall constitute an unfair trade practice.
It is not the purpose or intent of this Code, and no provision of
this Code shall be so interpreted or administered, as to eliminate or
oppress small enterprises or to discriminate against them or to pro-
mote a monopoly or monopolistic practices.
XII. EFFECiIVE DATE
All provisions of this Code shall become effective and operative
ten (10) days after the Code is approved by the President of the
XIII. CHANGE IN THE CODE
(a) A change in this Code may be recommended to the President
of the United States after it shall have been approved by a majority
of the representatives selected by all of the Federated Associations
which group shall serve as the Board of Directors for the National
Federation of Builders Supply Associations.
(b) This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provision
of the Clause 10-B of the National Industrial Recovery Act, from
Time to time to cancel or modify any order, approval, license, rule, or
regulation issued under Title I of said Act. and specifically to the
right of the President to cancel or modify his approval of this Code
or any conditions imposed by him upon his approval thereof.
(c) Any decision, rule, regulation, order, or finding made or
course of action followed pursuant to the provisions of this Code
may be cancelled or modified by the Administrator upon complaint
of any interested party through the Code Authority or upon his own
initiative whenever the Administrator shall determine such action
necessary to effectuate the provisions of Title I of the National
Supplements, amendments, or additions of this Code may, from
time to time, be submitted for the approval of the President of the
Respectfully submitted for the acceptance and approval by the
President of the United States.
NATIONAL FEDERATION OF BUILDERS
(Signed) L. I. MACQUEEN,
Chailnan of Code Committee.
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