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Approved Code No. 204 Registry No. 1129-03
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON JANUARY 13, 1934
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Approved Code No. 204
Registry No. 1129-03
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Approved Code No. 204
CODE OF FAIR COMPETITION
PLUMBING FIXTURES INDUSTRY
As Approved on January 13, 1934
APPROVING CODE OF FAIR COMPETITION
PLUMBING FIXTURES INDUSTRY
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 approval of a Code of
Fair Competition for the Plumbing Fixtures Industry, and hear-
ings 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 Executive Orders of the
President, including Executive Order No. 6543-A, dated December
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
purposes of said Title of said Act; and do hereby order that said
Code of Fair Competition be and it is hereby approved; provided
however, that the application of the provisions of Section 7 of
Article VIII, in so far as they provide for the establishment of
differential discounts as between wholesalers and other classes of
purchasers (as defined in such section) and for wholesaler and
other purchase price levels, be, and they hereby are, stayed for a
period of sixty (60) days in order to afford consideration of the
objections of any interested parties to such provisions, at the expira-
tion of which period the said provisions shall become effective unless
I shall, by my further order otherwise determine, or extend such
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
January 13, 1934.
The White Howe.
SIR: This is a report on the Code of Fair Competition for the
Plumbing Fixtures Industry (including the Enameled Cast Iron
Plumbing Fixture Industry, Vitreous China Plumbing Fixture In-
dustry, Sanitary Seat Industry, and the Sanitary Brass Plumbing
Fitting Industry) and on the public hearing conducted thereon in
Washington, D.C., on August 30, 1933, in accordance with the pro-
visions of the National Industrial Recovery Act.
The Plumbing Fixtures Industry represents a composite group of
manufacturers of sanitary plumbing products such as bath tubs,
lavatories, sinks, brass fittings, and other related articles. In the
industry's peak year, 1925, the total volume of business was esti-
mated in excess of $200,000,000. To produce this volume, about
35,000 workers were directly employed. In 1931, the most recent
year for which statistics are available, the volume of business had
dropped to approximately $86,000,000 and about 20,000 workers were
employed on part-time basis. In June, the largest month of this
year, approximately the same number of workers were employed
on part-time basis as in 1931.
HOURS AND WAGES
The Code establishes a 40-hour week. Minimum rates of wages
established are 40 cents per hour for males over 21 years of age in
the North and 35 cents per hour in the South; 35 cents per hour for
females over 21 years of age; and for all employees under 21 years
of age, 32 cents per hour or 80 percent of the minimum rate for
adult male employees. Women employees at the same work will
receive the soa pay as male workers. The maximum hour provi-
sions are not to apply to any employee in emergencies but in each
special case, at least time and one half the normal rate shall be
paid all employees working in excess of the maximum hours.
Child labor is prohibited.
There is also a clause providing that a Safety and Health
Manual for the improvement of working conditions be submitted
by the Code Authority for the approval of the Administrator.
ECONOMIC EFFECT AND FEATURES OF THE CODE
The Plumbing Fixtures Industry is largely dependent upon new
construction for its volume. With new residential construction work,
upon which this industry largely depends for a market, averaging
between 10 and 15 percent of normal in 1933, this industry has
subsisted primarily on modernization work which has not been
sufficient to provide much production or increased employment.
Despite the deplorable condition of the construction industry, the
Code will increase employment within the industry about 15 percent
with a larger percentage increase in the payrolls. A fact worthy
of mention is that the Code does not add appreciably to the cost of
Another feature of the Code, worthy of note, is that providing for
the elimination of the sale in the United States of all but first grade
ware guaranteed against manufacturing defects. This provision
protects the consumer against a long standing malpractice wherein
he often received second grade products (coilimonly known as culls)
though paying for first grade.
A forward step in the stabilization of the plumbing industry was
consummated by the coordination with this Code of those of the
plumbing wholesaling and plumbing contracting fields by means of
which action many differences and problems between the several ele-
ments of the industry have been eradicated or rectified.
Furthermore, to achieve fair and equitable methods of distri-
bution within the industry, separate wholesale and retail purchase
levels are to be established by each manufacturer, such price levels
to form the basis of cost determination by plumbing wholesalers
and contractors in arriving at their selling prices.
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 pro-
ceedings in this matter;
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions 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 among the trade
groups, by inducing and maintaining united action of labor and
management under adequate governmental sanctions and supervi-
sion, by eliminating unfair competitive practices, by promoting the
fullest possible utilization of the present productive capacity of
industries, by avoiding undue restriction of production (except as
may be temporarily required), by increasing the consumption of in-
dustrial and agricultural products through increasing purchasing
power, by reducing and relieving unemployment, by improving stand-
ards of labor, and by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the per-
tinent provisions of said Title of said Act, including without limi-
tation Subsection (a) of Section 3, Subsection (a) of Section 7,
and Subsection (b) of Section 10 thereof; and that the applicant
associations are industrial associations truly representative of the
aforesaid Industry; and that said associations impose no inequitable
restrictions 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
For these rE.IsonI., therefore, I have approved this Code.
HUGH S. JOHNSON,
AJANUARY 13, 1nst934.tor.
JANUARY 13, 1934.
CODE OF FAIR COMPETITION
PLUMBING FIXTURES INDUSTRY
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code
of Fair Competition for the Plumbing Fixtures Industry including
Enameled Cast Iron Plumbing Fixtures Industry, Vitreous China
Plumbing Fixture Industry, Sanitary Seat Industry, Sanitary Brass
Plumbing Fitting Industry, and shall be the standard of fair com-
petition for such industries and shall be binding upon every member
SECTION 1. Indutry.-The term "industry ", as used herein, in-
cludes the manufacture and sale of:
(a) Enameled cast iron plumbing fixtures, such as bath tubs,
shower receptors, lavatories, sinks, drinking fountains, laundry
trays, closet tanks, accessories, and the like
(b) Vitreous China plumbing fixtures, such as lavatories, drinking
fountains, closet bowls, closet tanks, urinals, bath tubs, accessories,
and the like;
(c) Seats of whatever composition, for installation on and for use
in connection with closet bowls and the like;
(d) Sanitary brass plumbing fittings, such as bath fittings, shower
fittings, lavatory fittings, sink fttings, drinking fountain fittings, and
other completed fittings and trimmings for use in connection with
plumbing fixtures and the like;
(e) Such branches and subdivisions thereof and such related in-
dustries as may from time to time, with the approval of the Adminis-
trator, be included under the provisions of this Code.
SEC. 2. Employee.-The term employee as used herein, includes
anyone engaged in the industries in any capacity receiving compen-
sation for his services irrespective of the nature or method of pay-
ment of such compensation.
SEC. 3. Employer.-The term employer as used herein, includes
anyone by whom any such employee is compensated or employed.
SEC. 4. Manufacturer or Member of the Industries.-The term
"manufacturer or member of the industries includes anyone
engaged in the industries as above defined, or any portion thereof,
either as an employer or on his own behalf.
SEc. 5. President, Act, Admi'nistrator.-The terms "President",
"Act ", and "Administrator as used herein shall mean, respectively,
the President of the United States, Title I of the National Indus-
trial Recovery Act, and the Administrator for Industrial Recovery.
SEC. 6. Association.-The term "ACsoeiation means, respectively:
a) Sanitary Cast Iron Enamel Ware Association
b) Vitreous China Plumbing Fixture Association
c) Seat Manufacturers' Association
(d) Sanitary Brass Manufacturers' Association
e) National Brni.-, Association
SEC. 7. U' ;]d States.-The terms United States or this coun-
try ", as u.-cd hereini, include all of the territory of the United States
of Am'eri:a, including its insular and maritime possessions, but
excluding the Philippine Islands.
ARTICLE III-MA XI MUM Houns
Si.:TION 1. M.axnimum Hours of Work.-No employee shall be per-
mitted to work in excess of forty (40) hours in any one week, or
eight (8) hours in any twenty-four (24) hour period, or regularly
in excess of six (6) days in any seven (7) day period.
SEC. 2. Exempt Employ'. ,.-The maximum hours fixed in the
foregoing section shall not apply to -al(smilie; in the field nor to em-
ployees in office or factory in managerial, supervisory, executive, and
technical capacities who receive compensation in e of thirty-five
dollars ($35.00) per we,-k. All such employees shall be listed by
their employers with the Code Authority.
SEC. 3. Emergencies.-The maximum hours fixed in the foregoing
Section 1 shall not apply to any employee in emergencies; but in each
special case, at least one and one half (11/2) times his normal rate
shall be paid for hours worked in excess of the maximum hours. At
the end of each calendar month every employer shall report to the
Code Authority, in such detail as may be required, all such cases.
ARTICLE IV-MINIMUM WAGES
SECTION 1. Minimum Hourly Rates.-The minimum rates of pay
for all employees, except those provided for in Section 3 of this
Article, shall be as follows:
(a) No male employee over twenty-one (21) years of age shall
be paid at a rate less than forty (40) cents per hour, except in the
states of Virginia, North Carolina, South Carolina, Georgia, Florida,
Alabama, Tennessee, Mississippi, Arkansas, Louisiana, Oklahoma,
Texas, New Mexico, and Arizona no male employee over twenty-one
(21) years of age shall be paid at a rate less than thirty-five (35)
cents per hour.
(b) No female employee over twenty-one (21) years of age shall
be paid at a rate less than thirty-five (35) cents' per hour.
(c) No employee under twenty-one (21) years of age shall be
paid at the rate of less than 32 per hour or 80% of the minimum
rate for adult male employees; provided, however, that the number
of minor employees receiving less than the minimum rates for adult
employees shall not exceed 5% of the total number of employees in
any one factory. Minors in excess of said 5% may be employed
provided that they be paid not less than the minimum rates for
SEC. 2. Incentive Comapen.sation.-The foregoing Section estab-
lishes a minimum rate of pay, regardless of whli-ther an employee
is compensated on a time-rate, piecework, or other basis.
SEC. 3. Minimum Salary Rates.-No employer -hall pay any ac-
counting, clerical, or office employee at less than the rate of fifteen
dollars ($15) a week; provided, however, that office boys and girls
under twenty-one (21) years of age may be paid not less than 80%
of such minimum wage; but the total number of such office boys
and girls receiving less than fifteen dollars ($15.00) a week shall not
exceed 5% of the total number of employees covered by the provi-
sions of this paragraph. Minor office boys and girls in excess of said
5% may be employed provided that they be paid not less than the
minimum rate for adult employees.
. SEC. 4 Fenmale Employec.s.-Female employees performing sub.
stantially the same work as male employees shall receive the same
rates of pay as male employees.
SEc. 5. Wages above the Minimum.-To the extent practicable,
the differences in hourly rates of pay or hourly earnings above the
minimum existing on June 16, 1933, -hall be maintained, and in no
case shall they be decreased. Within thirty (30) days all such re-
adjustments made since June 16, 1933, shall be reported to the
Administrator through the Code Authority.
ARTICLE V-GENERAL LABOR PROVISIONS
SECTION 1. Child Labor.-No person under sixteen (16) years of
age shall be employed in the industry, nor shall anyone under eight.
een (18) years of age be employed at operations or occupation.
hazardous in nature or detrimental to health. The Code Authority
shall submit to the Administrator within ninety days after the
approval of this Code, a list of such occupations. In any State an
employer shall be deemed to have complied with this provision if
he shall have on file a certificate or permit duly issued by the au-
thority in such State empowered to issue employment or age cer-
tificates or permits, showing that the employee is of the required age.
SEC. 2. Required Pro-visions.-(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 organization
of his own choosing.
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President.
SEC. 3. Posting Code.-Each employer shall post in conspicuous
places full copies of this Code.
SEc. 4. Reclassification.-Employers shall not reclassify employees
or duties of occupations performed by employees so as to defeat the
purposes of the Act.
SEC. 5. Reports.-(a) Each employer in these industries shall fur-
nish monthly to the Code Authority on forms to be furnished by
said Code Authority, a sworn report of the number of persons em-
ployed, wage rates in effect, and hours worked during the preceding
month in his plant or plants, clas-ified as to occupations, together
with other w\ol n production or employment reports as the Code
Authority may require from time to time, and an affidavit that the
employer has complied with all the provisions of this Code.
(b) Individual reports shall not be available to anyone except
the Administrator and the repre4e ntatives of the Code Authority
(who shall not be in the employ of any employer under this Code).
provided, however, that in the event of a complaint the Code Au-
thority shall have access to all information pertinent to such com-
plaint. Total figures compiled from such reports shall be available-
to the members of the Industry.
SEC. 6. Health and Safety.-No employer shall maintain in his
plant standards of health, safety, and sanitation, or other conditions
relating to employment lower than the standards approved for the
Industry by the Administrator or provided by the laws of the
jurisdiction. A Safety and Health Manual" for the Industries
shall be submitted by the Code Authority for approval by the
SEC. 7. State Lavws.-Within each State this Code shall not super-
sede any laws of such State imposing more stringent requirements
on employers regarding the age of employees, wages, hours of work,
health, or general working conditions than provided by this Code.
To further effectuate the policies of the Act, a Code Authority
is hereby constituted to cooperate with the Administrator in the
administration of this Code.
SECTION 1. OryHn1n1,t;on and Constitution of Code A.ulhority.-
(a) The Code Authority shall consist of seven (7) individuals,
or such other number as may be approved from time to time by the
Administrator, to be ;elected as hereinafter set forth. The Adminis-
trator, in his discretion, may appoint not more than three (3)
additional members without vote to represent the Administrator or
such groups or interests as may be agreed upon.
(b) The following industries shall each have the following num-
ber of representatives:
Enameled Cast Iron Plumbing Fixture Industry--_ 2 persons
Vitreous China Plumbing Fixture Industry ----2 persons
Sanitary Seat Industry------------------------- 1 person
Sanitary Brass Plumbing Fitting Industry----- 2 persons
Each of the above industries' representatives on the Code Au-
thority shall be nominated by the Chairman of that industry's
association; except that in the Sanitary Brass Plumbing Fitting
Industry one representative shall be nominated by the Chairman
of the Sanitary Brass Manufacturers' Association and one by the
Chairman of the National Brass Association and elected in the
manner hereinafter described.
The members of the Code Authority shall be elected at meetings
of the members of the industries called immediately after the ap-
proval of this Code by the Administrator and held inimediately
prior to the effective date thereof. The meetings shall be called by
the respective associations and notice thereof shall be sent by regis-
tered mail to all members of the respective industries. The not ice
shall specifically state that. voting at the meeting may be in person
or by proxy. The members of the Code Authority shall be elected
by members of the industries present in person or by proxy at',uc-h
meetings by a majority vote of members of the industries present
in person or by proxy as such.
In the event that this Code shall be wholly adopted by related
industries, provisions shall be made for their representation upon
the Code Authority by elect ion in the before-mentioned manner, and
the number of members of the Code Authority shall be increased
by one (1) for each such additional industry.
(c) 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 Administrator true copies of its articles of association,
bylaws, regulations, and any amendments when made thereto, to-
gether with such other information as to membership, organization,
and activities as the Administrator may deem necessary to effectuate
the purpose of the Act.
(d) In order that the Code Authority shall at all times be truly
representative of the industry and in other respects comply with the
provisions of the Act, the Administrator may provide such hearings
as he may deem proper; and thereafter if he shall find that the Code
Authority is not truly representative or does not comply with the
provisions of this Code appropriate modification in the methods of
selection of the Code Authority may be made.
(e) Participation in any administrative activities or endeavors
under this Code shall be based on the following:
(1) Payment. of the pro rata share of the cost of administering
this Code by becoming a member of one of the Associations; or
(2) Payment to the appropriate association of an equitable pro
rata share of the expense incurred by such Association in administer-
ing this Code.
SEC. 2. Dutties aOid Power8 of Code A uthority.-The Code Au-
thority shall have the following duties and powers to the extent
permitted by the Act, subject to the right of the Administrator, on
review, to disapprove any action taken by the Code Authority.
(a) The Code Authority shall cause this Code to be enforced,
and subject to review by the Administrator, shall designate such
agents and delegate such authority to them as may be necessary or
(b) It shall investigate complaints of violations of this Code and
shall take such steps as may be necessary to secure an equitable dis-
position of any such complaint. The Code Authority may provide
for its own organization, and may make such rules as to meetings,
notices, waivers of notice, and other procedural matters as it may
from time to time determine; provided, however, that notice of meet-
ings shall be sent to the Administrator sufficiently in advance of such
meetings to permit the Admiinistrator or his representatives to attend
such meetings. if de:.ired. The Code Authority may, to such extent
as it may determine, act by and through the Fair Competition Com-
mittee of each industry.
(c) The Chairman of each Association shall nominate a Fair Com-
petition Commitee consisting of five members who shall be elected by
a majority vit< of the iiembers of each industry. This Committee
shall be charged with the duties of investigating complaints of
unfair trade competition and adjui-ting same in the light of the
provisions of this Code. In cases where anyone accused of unfair
competition refw-e. to abide by a decision of a majority of the Fair
Competition Committee, the Committee shall refer its findings and
recommendations with respect thereto to the Code Authority for
disposition. The final appeal within the Industries shall be to the
Code Authority. Appeals from its decisions shall be referred to the
Administrator for disposition. The decisions of the Code Authority
under this paragraph shall be subject to review by the Administrator.
(d) The Code Authority may require from time to time the indus-
try or industries, subject to its authority, to submit in total figures
for its own consideration and for transmittal to the Administrator
such reports, statistical data, and other information as it may require.
Such information shall be held confidential and shall not be open to
inspection except as to totals of the industry. The compilation of
reports shall be performed by individuals who are not in any way
connected with members of the Industry or Industries.
(e) In addition to the information required to be submitted to the
Code Authority as set forth in this Article, there shall be furnished
to government agencies such statistical information as the Admin-
istrator may deem necessary for the purposes recited in Section 3
(a) of the National Industrial Recovery Act.
ARTICLE VII-TRADE PRACTICES
The following practices constitute unfair methods of competition
for members of the industry and are prohibited:
SECTION 1. D*c-riina t;iHo.-To discriminate in prices, terms, dis-
counts, allowances, guarantees, or in any other way between pur-
chasers of the same class, except as hereinafter set forth in Section
7 of Article VIII hereof, whether the material is sold for pur-
chaser's stock, for specific building operations, or for any other spe-
cific purposes; provided, however, that nothing in this Code shall
be construed to prevent any manufacturer from selecting within the
classes e.tabli.ihed his own customers in bona fide transactions.
SEC. 2. Secret Rebates.-Withholding from, or inserting in the
invoice, or other sales documents, facts which make said documents
false records, wholly or in part, of the transaction represented on
the face thereof, except where modified arrangements are on file with
the Code Authority. The secret payment or allowance of rebates,
refunds, commissions, credits, or unearned discounts, whether in the
form of money or otherwise, or the secret extension to certain pur-
chasers of special services or privileges not extended to all purchasers
on like terms and conditions.
SEC. 3. Po&-'da'ing and Precdating.-Postdating or predating of
quotations, orders, invoices, statements, or other sales documents.
SEC. 4. Inducing Breach of Contract.-Inducing or attempting
to induce the breach of a contract between a competitor and his
customer during the term of such contract; provided, however, that
nothing in this rule shall be taken to prevent a manufacturer who
has quoted on the material involved from calling to the attention of
the purchaser, even though the order has been placed and accepted,
that the materials for which the order has been placed do not con-
form in size, quantity, or quality to those on which the quotations
SLc. 5. Repltditib of Contracts.-Repudiation of accepted orders
and other contracts or their attempted cancellation, except for legal
cause or by mutual consent.
SEc. 6. Lump sum and Combination Bidding.-Quoting a total
price on any schedule of materials which does not show, and/or
which is lower than the sum of, the regular unit prices of the articles
comprising the schedule. Where an article consists of two or more
parts, which themselves are considered units by the Industry, the
unit price of the combination article shall not be less than the sum
of the unit prices of the articles which comprise it.
SEC. 7. False Marl'rng or Braihbi,.-The failure to plainly and
permanently brand or mark for identification with the name or
trade mark of the manufacturer all products of the industries except
parts; and the failure to supply facsimiles of such brands or trade
marks by each manufacturer to the Code Authority. The falsa
marking or branding of any product of the industries which has the
tendency to mislead or deceive customers or prospective customers,
whether as to grade, quality, quantity, substance, character, nature,
origin, size, finish, preparation, or otherwise.
SEC. 8. Misrepresentation or False or Mislcading Advertising.-
The making or c: using or knowingly permitting to be made or
published any false, materially inaccurate, or deceptive statement by
way of advertisement or otherwise, whether concerning the grade,
quality, quantity substance, character, nature, origin, size, finish,
or preparation of any product of the industries or the credit terms,
values, policies, or services of any member of the industries or
otherwi-.e, having the tendency or capacity to mislead or deceive
customers or prospective customers.
SEC. 9. Substitution.-The furnishing of articles more or less ex-
pensive, of better or inferior quality, or of larger or smaller size than
specified without making the proper adjustments in the quoted price
and clearly indicating the nature of the substitution.
SEc. 10. Defamation.-The defamation of competitors or members
of other branches of the plumbing industry by falsely imputing to
them dishonorable conduct, inability to perform contracts, question-
able credit standing, or by other false representations or by the false
disparagement of the grade or quality of their goods.
SEc. 11. Comm-ercial Bribery.-To give, permit to be given, or di-
rectly 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 employee,
the principal of such agent or the represented party, without the
knowledge of such employer, principal, or party. Commercial brib-
ery 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 commercial bribery as herein-
SEC. 12. Protection.-The sale or offering, for sale of materials for
stock under any form of guarantee to a purchaser or prospective pur-
chaser against either advance or decline in the price of said product,
e xpt as herein otherwise provided.
SEC. 13. Threats of Litigation.-The publishing or circulating of
threats of suits for infringement of patents or trade marks or of any
other legal proceedings not in good faith with the tendency or effect
of harassing competitors or intimidating their customers.
SEC. 14. Espionage of Competitors.-Securing confidential infor-
mation concerning the business of a competitor by a false or mislead-
inig hiathnment or representation, by a false impersonation of one in
authority, by bribery, or by any other unfair method.
SEC. 15. Used Materials.-Inasmuch as the handling of both new
and second-hand building materials by the same merchant encour-
ag(e substitution and misrepresentation of products to the consumer,
to the detriment of both the consumer and the manufacturer, the sale
of the products of this industry by manufacturers to anyone who
buys for resale used or damaged building materials, plumbing prod-
ucts, heating products, and/or pipe fittings and valves.
SEC. 16. Other Unfair Practices.-Nothing in this Code shall limit
the effect of any adjudication by the Courts, or holding by the Fed-
eral Trade Commission on complaint, finding, and order, that any
practice or method is unfair, providing that such adjudication or
holding is not inconsistent with any provision of the Act or of this
ARTICLE VIII-MARKETING POLICIES
The following practices shall be followed by all members of the
industry or industries in the marketing of their products and devia-
tion from such practices and rules shall constitute unfair compe-
tition and is prohibited.
SECTION 1. Orders.-All orders over $100.00 shall be signed and
cover specified articles to be delivered on or before a definite date.
They shall be either accepted or rejected by the manufacturer when
received. Only orders for stock for shipment within thirty days
of date of receipt of order, and orders for specific jobs, will be
accepted at the prices in effect at date of receipt of order. All
other orders shall be subject to the prices in effect at date of ship-
ment. The minimum size and maximum delivery time for specific
job orders shall be prescribed from time to time, and exceptions to
this rule allowed by the Code Authority.
SEC. 2. Invoices.-All sales shall be invoiced at the time of ship-
ment and such invoices together with credit memoranda and all
other documents relating to the sale, shall clearly and accurately
state all of the essential elements of the sale, including types and
sizes of products, quantities, prices, credit terms, discounts, allow-
ances, date of order, date of acceptance, date of shipment, and other
pertinent information. Copies of invoices, together with credit
memoranda and all other sales documents, shall be filed with the
Code Authority as and when directed by the Code Authority, and
in the event of a complaint, sworn copies of invoices, credit memo-
randa, and all other sales documents shall be sent immediately to
the Code Authority upon its request.
SEc. 3. Standardization of Products.-After uniform sizes, drill-
ings, grading rules, and minimum specifications shall have been
established by the industry subject to review by the Administrator,
proper charge shall be made for deviation therefrom.
SEC. 4. Grading.-No manufacturer shall sell in the United States
other than first-grade products guaranteed against manufactuLing
defects. Such guarantee shall be uniform among all manufacturers,
as specified by the Code Authority, and shall provide for furnish-
ing new products of the same type and size to replace those which
have proved defective on the same basis as the original purchase,
but it .-liall not cover charges for labor or consequential damages,
provided, however, that in exceptional cases, a manufacturer may
make additional allowances because of defective materials upon
filing a complete report thereof with the Code Authority.
SEc. 5. Field In.p,'cetion.-No manufacturer shall allow credit
for a defective article until the fact of such defect shall have been
established by an authorized representative of the manufacturer and
the article shall have been destroyed or returned to the manufacturer,
except as may be otherwise required by law, or a court of competent
jurisdiction. Deviation from this rule as to each industry may be
permitte-l by a majority vote of the members thereof.
SEC. 6. Consigned Stocks.-No manufacturer shall consign stocks
of the products of these industries to distributors, contractors, manu-
facturers' agents, and/or others. All consigned stocks in existence
on the effective date shall be entirely liquidated by the consigning
manufacturer as soon as practicable and within a period of not to
exceed 90 days therefrom or at the expiration of contracts existing
on that date which by their terms cannot be terminated within 90
days, copies of such contracts to be filed with the Code Authority.
SEO.7. b Ditrib titoni.-The functions -of manufacturing, whole-
saling, and retailing the products of these industries each constitute
a separate business.
In reL ignition of the fact that the products of these industries
manufactured by the signatories of this Code could not be installed
in ultimate service without the assembling, warehousing, and bulk
selling of accessory and complementary products performed by
wholesalers in the plumbing industry, said wholesalers, in considera-
tion of such service and in consideration of purchasing in whole-
sale quantities, shall be entitled to and shall receive a discount, from
published prices greater than the discount accorded to any person,
rirm, or corporation, that does not perform the assembling, ware-
housing, and bulk selling functions hereinbefore described. The
difference between the discount allowed to wholesalers and the dis-
count accorded to other purchasers is to be determined by each
individual manufacturer; but in no case is it to be less than a per-
centage determined by the Code Authority, with the approval of the
Administrator, and modifications made from time to time, based on
a study of the value to the consumer of the distributing, assembling,
and warehousing functions. Such study shall be made by an im-
partial fact-finding agency under the direction of the Code
No manufacturer may sell on the wholesaler purchase price level
except to an individual, firm, corporation, or other person who buys
and assembles at wholesale and sells plumbing supplies to retailers
or to the retail division of his own business; has a proper invest-
ment in his business; maintain an adequate showroom, a warehouse,
and sufficiently complete stock of such commodities to meet the nor-
mal plumbing supply requirements of his trade in his territory and
maintains an adequate bookkeeping system, sales office, and delivery
Manufacturers' sales to all others who purchase the products of
these Industries for resale shall be on the retailer purchase price
level, and no manufacturer shall sell the products of these Industries
to any one other than for resale, except to employees for their own
No manufacturer shall sell the products of these Industries to
anyone except to manufacturers subject to this Code at better than
his wholesaler purchase price level. Customers who qualify for such
level may be further classified by each manufacturer on the basis of
volume of purchases or on any other basis as specified in his pub-
lished prices and other conditions of sale which he has filed with the
Code Authority in accordance with Section 10 of this Article, but in
no event shall the special discount exceed five (5%) percent beyond
the net price for the wholesaler level.
Each manufacturer shall file with the Code Authority, when re-
quired by it, but in confidence, the names of customers sold by him
on each price level, his schedule of special discounts, and such other
information as the Code Authority may require. If the Code Au-
thority, after investigation, finds that any manufacturer has clas-
sified a customer contrary to the provisions of this Section, it shall
so notify the manufacturer and require him thereafter to sell such
customer on the proper level.
Any manufacturer engaged in more than one level of the Plumb-
ing Industry (manufacturing-wholesaling-retailing) shall conduct
each business separately and with an individual system of accounting
for each in accordance with the respective codes for the various
levels of the Industry.
In order that the consumer may be informed of the fair prices of
products of the Industries, each manufacturer shall publish and
distribute a suggested fair price for sales to the consumer of each of
his products, except parts and specialties.*
SEC. 8. Cost Protection.-The Code Authority shall promptly
cause to be developed and submitted to the Administrator a uniform
system of cost accounting designed to make possible the accurate
(tetrciniiation by each member of the Industries of his own indi-
Upon approval by the Administrator of such system of cost ac-
counting, necessary information concerning it shall be distributed
by the Code Authority to all members of the Industries.
Thereafter, no manufacturer shall sell or exchange his products
in the United States (except on close-outs) at a price or upon such
terms and conditions as will result in the customer paying for such
See paragraph 2 of order approving this Code.
goods less than the cost to the seller of producing and marketing
the same in this country as determined by the uniform cost account-
ing system; provided, however, that he may sell below his cost
when necessary to meet the price of any equivalent product of any
competitor against whom he is bidding for any specific job or order.
All such cases are to be reported immediately to the Code Authority.
When a manufacturer is engaged in more than one line of busi-
ness, each business shall be considered a separate unit for purposes
of ascertaining costs, and general expenses of all kinds shall be prop-
erly and fairly allocated to the several busiineis units.
SEC. 9. Uniform Terms of Sale.-No manufacturer shall sell his
products on any basi-, more favorable to the purchaser than the
credit terms, .ash discount for carly payments and shownr,,m dis-
counts, established from time to time by the Code Authority in
cooperation with the respective associations.
SEc. 10. Published lists.-Within ten (10) d;iys after the effec-
tive date of this Code, each manufacturer shall publish and dis-
tribute among each class of puLrcha-er whom he sells, his price lists
applicable to that class for various types anid sizes of products,
including in such lists or in supplementary writings, copies of
which must be filed with the Code Authority, all of his conditions
of sale, including trade discount-, for si-l'h class of customers. All
changes in such price lists, discounts, and coindit ions of sale shall
be filed with the Code Authority iinieiliately upon publication
thereof. The Code Authority shall distribute such price information
except the special discounts provided in Section 7 of this Article
to all manufacturers of the respective Industry. No manufacturer
shall sell his products in the United States, except on close-outs,
to anyone, except to employees for their own use for any purpose
whatsoever, at any prices or on any terms and conditions" other
than those indicated in his published lists; provide-', however, that
he may sell any of his products at the price of any equivalent prod-
uct of any competitor who is offering to sell below his own published
prices or terms. All such cases shall be reported promptly to the
SEC. 11. Closc-ifts.-A manufacturer may sell, at less than his
published prices, products ackncwledlgel by the Code Authority to
be obsolete. Invoices for such sales shall be clearly marked Special
Price on Account of Close-out."
SECTION 1. Pres4dential Modification.-This Code and all the provi-
sions thereof are expressly made subject. to the right of the President
in accordance with the provisions of subsection (b) of Section 10 or
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, but. without limitation, 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.
By presenting this Code, however, the members of these Industries
and others assenting hereto do not thereby consent to any modifica-
tion thereof, and they reserve the right to object individually or
jointly to any such modification.
SEc. 2. Amendment and Termination.-Such of the provisions of
this Code as are not required to be included therein by the Act may
be modified, added to or eliminated, or this Code may be terminated
in its entirety at any time in the manner hereinafter provided, sub-
ject, however, to the provisions of Section 7 of Article VIII.
Proposals for modifying or eliminating provisions of this Code
or for adopting additions to or substitutions for the Code or for
terminating the Code in its entirety may be made in writing to the
Code Authority by any member of the Industries subject to this
Code. The Code Authority shall include such proposal in full in
the written notice of the next meeting of the Industries. The ques-
tion of the adoption of such proposal shall be voted upon at such
meeting, and, if a majority in plant capacity and number of the
members of the Industries present vote in favor of such proposal, the
Code Authority shall present such proposal to the N.R.A. for Presi-
dential approval when such approval is required. Such proposal
hall provide for its effective date. The provisions of this paragraph
shall not constitute a limitation upon any right to propose modifica-
tions or amendments to this Code which may be granted or conferred
by the Act.
ARTICLE X-MONOPOLIEs, ETC.
No provisions of this Code shall be so applied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterprises.
No 'manufacturer shall use any subterfuge to frustrate the spirit
and intent of this Code.
ARTICLE XII-EFFECTIVE DATE
This Code shall become effective on the first or the sixteenth day
of the month, whichever shall first occur, after its approval by the
Approved Code No. 204.
Registry No. 1129-03.
UNIVERSITY OF FLORIDA
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