Code of fair competition for the waterproofing, dampproofing, caulking compounds, and concrete floor treatments manufact...

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Title:
Code of fair competition for the waterproofing, dampproofing, caulking compounds, and concrete floor treatments manufacturing industry as approved on November 27, 1933 by President Roosevelt
Portion of title:
Waterproofing, dampproofing, caulking compounds, and concrete floor treatments manufacturing industry
Physical Description:
p. 497-508 : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Concrete -- Curing -- United States   ( lcsh )
Floors, Concrete   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1610-06."
General Note:
"Approved Code No. 140."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
oclc - 650508069
ocn650508069
System ID:
AA00009956:00001


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NATIONAL RECOVERY ADMINISTRATION



CODE OF FAIR COMPETITION

FOR THE

WATERPROOFING, DAMPPROOFING,

CAULKING COMPOUNDS, AND

CONCRETE FLOOR TREATMENTS

MANUFACTURING INDUSTRY


AS APPROVED ON NOVEMBER 27, 1933
BY
PRESIDENT ROOSEVELT


UNIV. OF FL LIB.
Sn WE7 OUR PART



U.S. DEPOSMTORY
l. Tuircute Order
2. Letter of Transmittal
3. Code




'UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1933


I s b the Superintendent of Docu ts, Washington, D.C e 5 cen
or sale by the Superintendent of Documents, WashinCton, D.C. Price 5 center


Approved Code No. 140


Registry No. 1610-06






















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.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 2213 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 933 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Building.











Approved Code No. 140


CODE OF FAIR COMPETITION
FOR THE

WATERPROOFING, DAMPPROOFING, CAULKING
COMPOUNDS, AND CONCRETE FLOOR TREAT-
MENTS MANUFACTURING INDUSTRY

As Approved on November 27, 1933
BY
PRESIDENT ROOSEVELT




Executive Order

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 Waterproofing, Dampproofing, Caulking
Compounds, and Concrete Floor Treatments Manufacturing Indus-
try, and hearings having been held thereon and the Administrator
having rendered his report containing an analysis of the said code of
fair competition, together with his recommendations and findings
with respect thereto, and the Administrator having found that the
said code of fair competition complies in all respects with the perti-
nent provisions of title I of said act, and that the requirements of
clauses (1) and (2) of subsection (a) of section 3 of the said act
have been met:
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.
Approval recommended:
HUGH S. JOHNSON,
Administrator.
THE WHITE HOUSE,
November 27, 1933.
(497)
23789---244-108-----83












NOVEMBER 17, 1933.
The PRESIDENT,
The White House.
SIR: This is a report on the Code of Fair Competition for the
Waterproofing, Dampproofing, Caulking Compounds, and Concrete
Floor Treatments Manufacturing Industry in the United States, as
revised after a hearing conducted in Washington on November 3,
1933, in accordance with the provisions of the National Industrial
Recovery Act.

PROVISIONS OF THIS CODE AS TO WAGES AND HOURS

Employees shall not work more than forty hours in any one week
or eight hours in any one day except that employees may work
a maximum week of forty-eight hours during six weeks within a
period of six months.
Factory employees who work more than eight hours a day or more
than forty hours a week shall be paid at least one and one-half
times their normal rates of pay. Except in cases of emergency, such
overtime shall not exceed eight hours in any one week.
Employees shall not work more than five days a week, except that
employees may work six days a week during six weeks within a
period of six months.
The maximum hours provisions do not apply to employees in
managerial, executive, or professional capacity who receive regularly
thirty-five dollars or more per week.
No employee except outside salesmen shall be paid at less than the
rate of forty cents per hour. Accounting, clerical, office, or delivery
employees shall be paid at least fifteen dollars per week.
To the extent practicable, weekly earnings shall not be decreased,
though the hours of work may be reduced. Rates of pay for occu-
pations in excess of the minimum shall be increased so as to main-
tain differences in full-time weekly earnings existing on June 1, 1933.
Disabled employees, not exceeding in number five percent of any
employer's total number, shall not be paid less than eighty percent
of the minimum wages provided.

ECONOMIC EFFECTS OF THE CODE

Sixty-hour working weeks which have prevailed in this Industry
during peak periods in the past will be abolished by this Code. The
dull-period work weeks will be lengthened, because a larger inventory
stock must be provided to meet the peak-period demands.
Though there has been a reduction in the number of working hours,
because of the increase in the hourly wage rate, the employees' annual
income will not be reduced.
(498)





499


The number of employees in this Industry will be increased by
approximately twenty percent. The Industry's pay rolls will be
increased by approximately twenty to twenty-five percent.
This Code will eliminate many unfair practices and facilitate the
rendition of better service by this Industry to the construction indus-
try in the future. A guarantee evil detrimental to the Industry,
which has prevailed in the past, will be eradicated.
An effort has been made to synchronize this Code with that of
the Builders Supplies Trade so that harmonious relations between
these two industries can be promoted in the future.
This Code will beneficially affect this Industry, its employees, and
the public.
FINDINGS

The Administrator finds that-
(a) The Code as recommended complies in all respects with the
pertinent provisions of Title I of the Act, including, without limita-
tion, subsection (a) of Section 7 and subsection (b) of Section 10
thereof; and that
(b) The applicant group imposes no inequitable restrictions on
admission to membership therein and is truly representative of the
Waterproofing, Dampproofing, Caulking Compounds, and Concrete
Floor Treatments Manufacturing Industry; and that
(c) The Code as recommended is not designed to promote monop-
olies or to eliminate or oppress small enterprises and will not operate
to discriminate against them and will tend to effectuate the policy of
Title I of the National Industrial Recovery Act.
It is recommended, therefore, that this Code be approved.
Respectfully,
HUGH S. JOHNSON,
Administrator.









CODE OF FAIR COMPETITION


FOR THE
WATERPROOFING, DAMPPROOFING, CAULKING COM-
POUNDS, AND CONCRETE FLOOR TREATMENTS
MANUFACTURING INDUSTRY


ARTICLE I-PuRPOSES
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 waterproofings, dampproofings, caulking
compounds, and concrete floor treatments industry, and shall be
binding upon every member thereof.
ARTICLE II-DEFINITIONS
The term "Waterproofings, Dampproofings, Caulking Com-
pounds, and Concrete Floor Treatments Industry ", as used herein,
includes the manufacturing, selling, and distributing by manufac-
turers to all classes of trade, and the furnishing by manufacturers
of sales-engineering services of products known as waterproofings,
dampproofings, caulking compounds, concrete floor treatments" plus
engineering service pertaining.to design, method of installation for
building maintenance and construction industries, and such branches
or subdivisions thereof as may from time to time be included under
the provisions of this Code.
The term employee as used herein includes anyone engaged in
the industry in any capacity receiving compensation for his services,
irrespective of the nature or method of payment of such compen-
sation.
The term employer as used herein includes anyone by whom
any such employee is compensated or employed.
The term member of the industry includes anyone engaged in
the Industry as above defined, either as an employer or on his own
behalf.
The term "Association as used herein shall mean The Associ-
ated Manufacturers of Waterproofings, Dampproofings, Caulking
Compounds, and Concrete Floor Treatments."
The terms President", "Act ", and "Administrator as used
herein shall mean, respectively, the President of the United States,
the National Industrial Recovery Act, and the Administrator of said
Act, Title I.
The term members of the Code includes any employer who has
subscribed to this Code or complied with the provisions of Art. VI,
paragraph 4.
ARTICLE III-HOURS
1. No employee shall be permitted to work in excess of forty (40)
hours in any one (1) week or eight (8) hours in any twenty-four
(500)





501


(24) hour period, provided, however, that any employee may work
a maximum week of forty-eight (48) hours for six (6) weeks within
a period of six (6) months. For the purpose of this section, a
six (6) months' period shall begin on January 1st and July 1st,
respectively.
2. All factory employees who work more than eight hours in any
twenty-four (24) hours or more than forty (40) hours in any seven
(7) days shall be paid not less than one and one half (12) the
normal rate of pay for said excess. Such overtime shall not exceed
eight (8) hours in any one (1) week except in cases of emergency
maintenance or emergency repair work involving breakdowns or
protection of life or property.
3. No employee shall be permitted to work more than five (5)
days in any seven (7) day period, except that employees shall be
permitted to work six (6) days in any seven (7) day period of six
(6) weeks within a period of six (6) months.
4. The maximum hours fixed in the foregoing paragraphs shall
not apply to employees in a managerial, executive, or other pro-
fessional capacity who receive in no week less than thirty-five (35)
dollars.
ARTICLE IV-WAGES

1. No employee shall be paid at less than the rate of forty (40)
cents per hour, except that:
(a) The provision of this article shall not apply to outside
salesmen.
(b) Employers in the Industry, shall not pay any accounting,
clerical, office, or delivery employee in any office., or in any other
place, less than fifteen (15) dollars per week.
2. This Article establishes a minimum rate of pay, regardless of
whether an employee is compensated on a time rate, piecework, or
other basis.
3. Female employees performing substantially the same work as
male employees shall receive the same rates of pay as male employees.
4. To the extent practicable, weekly earnings shall not be de-
creased, notwithstanding that hours of work may be reduced and
rates of pay for occupations in excess of the minimum herein pre-
.scribed shall be increased so as to maintain differences in full-time
weekly earnings existing on June 1, 1933.
5. Within thirty (30) days after the effective date of this Code,
each employer shall report to the Administrator through the Code
Authority all such readjustments made by him since June 16, 1933;
provided, however, that these rates shall be subject to readjustment
by the Administrator if the adjustments made by an employer are
not suitable in obtaining uniformity for this industry.
6. A person whose earning capacity is limited because of age or
physical or mental handicap may be employed on light work at
a wage below the minimum established by this Code if the employer
obtains from the State authority designated by the United States
Department of Labor a certificate authorizing his employment at
such wages and for such hours as shall be stated in the certificate.
Each employer shall file with the Code Authority a list of all such
persons employed by him.





502


ARTICLE V

1. No person under sixteen (16) years of age shall be employed in
the industry, nor anyone under eighteen (18) years of age at opera-
tions or occupations hazardous in nature or detrimental to health.
The Code Authority shall submit to the Administrator a list of such
occupations, if any. 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 authority in such State empowered to
issue employment or age certificates or permits, showing that the
employee is of the required age.
2. Employees shall have the right to organize and bargain collec-
tively 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.
3. 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, and
4. Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment,
approved or prescribed by the President.
5. Within each State this Code shall not supersede any laws of
such State imposing more stringent requirements of employment
regulating the age of employees, wages, hours of work, or health,
fire, or general working conditions than under this Code.
6. Employers shall not reclassify employees or duties of occupa-
tions performed by employees so as to defeat the purposes of the Act.
7. No employer shall engage any employee for any time, which,
when totaled with that already performed with another employer, or
employers, exceeds the maximum permitted herein.
8. An employer shall so administer work in his charge as to pro-
vide a maximum practicable continuity of employment for his
personnel.
9. No employer shall pay an employee less than for the full sched-
ule daily hours of work for any employment in any one day. If an
employee is required or permitted to wait for work, he shall be
paid at his normal rate for such time. No increases in the amount
of production work shall be required of employees, for the purpose
of avoiding the benefits to employees prescribed in this Code, in
respect to wages and hours of employment. All new requirements
shall be reported to the Code Authority.
10. Every employer shall provide for the health and safety of his
workmen. He shall comply with all National, State, and local
ordinances and provisions of safety and health; and to protect his
employees by Workmen's Compensation Insurance, according to the
amounts required in his State or jurisdiction or the United States
Employees' Compensation Insurance, if that State has not estab-
lished a compensation scheme for this Industry.
11. Each employer shall post in conspicuous places full copies of
this Code.






503


ARTICLE VI-ADMINISTRATION

To further effectuate the policies of the Act, a Code Authority is
hereby constituted to cooperate, with the Administrator in the admin-
istration of this Code.
1. Organization and Constitution of Code Authority.-(a) The
Code Authority shall consist of seven (7) persons who shall be offi-
cers or executives of an employer engaged in the Industry, five (5)
of whom shall be appointed by the Directors Association, and two
(2) of whom shall be appointed by a majority vote of the members
of the Code who are not members of the Association, present at a
meeting duly called for that purpose (and for such other business
as may be found desirable), which meeting shall be held during
the month of September in each year at the call of the Board of
Directors of the Association, who shall fix the time and place of
the meeting. Notice of the time and place of holding said meeting
shall be sent by registered mail by the Secretary of the Association
at least ten (10) cays before the meeting to every member of the
Code who is not a member of the Association who shall have signified
his or its intention to participate under this Code, and to all other
such members in this Industry not a member of the Association whose
names and addresses are known to the Code Authority. Each per-
son present at the meeting shall cast one vote for the employer he
represents, but not more than one representative of each employer
shall vote. Voting by proxy shall be permitted. Until such meet-
ing shall be had, said two members shall be elected by majority
vote of the nonmembers of the Association by a vote taken by mail
under conditions made by the Association and approved by the
Administrator.
(b) The Administrator may appoint (not to exceed three) addi-
tional members, to serve without expense and without vote, to repre-
sent the Government. They are to be appointed for terms of from
six (6) months to one (1) year, and, if more than one is appointed,
their terms are to be so arranged that they do not expire at the same
time.
(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 purposes 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 in other respects
comply with the provisions of the Act, may require an appropriate
modification in the method of selection of the Code Authority.
2. The Code Authority shall have the following duties and powers
to the extent permitted by the Act, subject to the right of the Admin-
istrator on review to disapprove or modify any action taken by the
Code Authority.





504


(a) The Code Authority shall be the general planning and fair
practice agency for the Industry. The Code Authority shall have
the powers and duties specifically provided herein, shall make such
reports as the Administrator may require, and in addition thereto
shall have full power and authority, subject to review by the Ad-
ministrator, from time to time to require such reports from members
of the industry with respect to capacity, production and orders for
shipment, persons employed, wages and hours of labor, prices, costs
and methods of costing, and other items as may be necessary to advise
the Administrator adequately in the administration and enforcement
of the provisions of this Code; and to provide for the standardization
of products by the members of the Industry. It shall also have the
power and authority to make rules and regulations for its own con-
duct and the administration of this Code, subject to the approval of
the Administrator, and to do all things necessary or proper to enable
the Industry to function under this Code and to give effect to the
rules, regulations, and conditions herein contained or promulgated
hereunder, subject, however, to review by the Administrator.
(b) In order to assure confidential treatment of individual figures,
all reports, data. and information which the said Code Authority is
empowered to collect or receive shall be collected or received by an
agent appointed by the Code Authority, not a member or connected
with a member of the Industry. The Code Authority shall likewise
appoint such an agent or agents to make such investigations to the
extent permitted by the Act on complaints of violation of this Code
as may be deemed necessary. All reports, data, and information so
collected or received or so obtained on any such investigation, shall
be kept confidential by such agent or agents collecting, receiving, or
obtaining the same, except that any such reports, data, or informa-
tion shall be available to the Administrator upon demand and except
that in the event any such reports, data, or information shall sub-
stantiate any claimed violation of this Code, then the Code Authority
shall be informed and may present evidence of any such violation to
the Administrator.
3. The Code Authority may delegate any of its powers or func-
tions to subcommittees or to such other agents as it may specifically
determine, provided, however, that the Code Authority shall not be
relieved of responsibility with respect to any such delegated powers
or functions; that such subcommittees or other agents in the exer-
cise of such delegated powers or functions shall comply with all
applicable provisions of this Code.
4. Members of the Industry shall be entitled to participate in and
share the benefits of the activities of the Code Authority and to
participate in the selection of the members thereof by assenting to
and complying with the requirements of this Code and sustaining
their reasonable share of the expenses of its administration. The
reasonable share of the expenses of administration shall be deter-
mined by the Code Authority on the basis of volume of business
or such other factors as may be deemed equitable to be taken into
consideration.
5. In addition to the information required to be submitted to the
Code Authority, there shall be furnished to governmental agencies
such statistical information as the Administrator may deem neces-
sary for the purposes recited in Section 3 (a) of the Act.






505


ARTICLE VII-UNIFORM COST ACCOUNTING

1. It is the judgment of this Industry that accurate knowledge of
costs is indispensable to the proper administration of the provisions
of this Code. Each manufacturer subject to the jurisdiction of this
Code may install such simplified uniform system of accounting as
may be recommended by the Code Authority (or its properly author-
ized agent).
2. There shall be no selling below allowable cost. It shall con-
stitute a violation of this Code for any member of the Industry to
sell below his allowable cost, which allowable cost shall be the
sum of:
(a) material Costs.-The seller's original cost of material, or if
replacement be lower, then the replacement cost (based on cost fur-
nished monthly or oftener if necessary by authority of the Code Au-
thority, or its properly authorized agent), and if any materials are
used for which costs are not furnished monthly or oftener, as herein
provided, the cost used for such item or itens shall be the seller's
total current delivered replacement cost; plus
(b) Cost of containers and/or packages, plus
(c) Cost of Processing.-To include all direct costs (such as power
and labor), depreciation figured in accordance with provisions of the
Federal Income Tax laws, plus a proper proportion of all indirect
factory expenses (excepting interest on investment), in accordance
with the share each product should bear, provided that the distribu-
tion of indirect factory expense per unit of production shall be on
the basis of the average rate of utilization of plant facilities of the
members of the Association, during the years of 1928 to 1932 inclu-
sive, and provided that such average rate shall not include any plants
not. in operation, plus
(d) A reasonable percentage to be determined by the Code Au-
thority of the Manufactured Cost. ", the sum of (a) plus (b) plus
(c), provided that taxes, insurance, reserves of any nature, accumu-
lated unearned burden, interest on investment, interest or charges on
funded or other debt shall not be included under (c) Cost of
Processing.
3. In the case of any complaint by an interested party that a manu-
facturer is violating the above cost provisions, the Code Authority
shall request proof of compliance from the accused manufacturer.
If the Code Authority or the Administrator is not satisfied by the
proof furnished by the defendant manufacturer the matter is to be
referred to the Federal Trade Commission who shall audit the cost
accounting of the defendant and review his allocation of burden.
The report of the Federal Trade Commission regarding the costs of
the defendant manufacturer shall be final insofar as the Code Au-
thority is concerned, and upon the receipt of such report the Code
Authority shall act in accordance with the National Recovery Act.

ARTICLE VIII--TRADE PRACTICES
The following practices constitute unfair methods of competition
for members of the Industry and are prohibited:
1. False Marking or Branding.-The false marking, invoicing, or
branding of any product of the Industry which has the tendency





506


to mislead or deceive customers or prospective customers, whether as
to the grade, quality, quantity, substance, character, nature, origin,
size, finish, or preparation of any product of the Industry, or
otherwise.
2. Misrepresentation or False or Misleading Advertising.-The
making or causing 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, performance, substance, character, nature, origin, size, fin-
ish, or preparation of any product of the Industry, or the credit terms,
values, policies, or services of any member of the Industry or other-
wise having the tendency or capacity to mislead or deceive cus-
tomers or prospective customers.
3. Commercial Bribery.-Directly or indirectly to give or permit
to be given, or offer to give, money or anything of value to agents,
employees, or representatives of customers or prospective customers,
or to agents, employees or representatives of competitors' customers
or prospective customers, as an inducement to influence their em-
ployers or principals to purchase or contract to purchase from the
makers of such gifts or offer, or to influence such employers or prin-
cipals to refrain from dealing or contracting to deal with competitors.
4. Interference with Contractual Relations.-Maliciously inducing
or attempting to induce the breach of an existing oral or written con-
tract between a competitor and his customer or source of supply,
or interference with or obstructing the performance of any such
contractural duties or services.
5. Secret Rebates.-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.
6. Giving of Prizes, Premiums, or Gifts.-The offering or giving
of prizes, premiums, or gifts in connection with the sale of products,
or as an inducement thereto, by any scheme which involves lottery,
misrepresentation, or fraud.
7. Threats of Litigation.-The publishing or circularizing of
threats or 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.
8. Espionage of Competitors.-Securing confidential information
concerning the business of a competitor by a false or misleading
statement or representation, by a false impersonation of one in
authority, by bribery, or by any other unfair method.
9. All prices quoted and all sales made shall be upon the basis of
freight-on-board, either job or factory, as the member of the Indus-
try may elect.
10. The terms of sale shall uniformly be established at not to
exceed two percent discount for payment within ten days, or end
of month, with net terms of not to exceed sixty days.
11. No sales shall be influenced under the guise of reciprocity.
There shall be no false invoicing of any nature whatsoever and no
giving of free merchandise.





507


12. It shall be proper for any member to invoice its subsidiary
companies or a fellow member in any manner whatsoever for resale
but not for contract installation; provided, however, that the parent
company shall be responsible for the adherence of such subsidiaries
to the standards of fair competition as set up in this C dle. Prod-
ucts of the Industry, supplies for contract application to subsidiary
companies, to fellow members, to contract. departments or divisions,
or in any other manner, shall be supplied subject to all provisions
of this ('ode.
13. The practice of supplying trade sales accounts on coinsignment
is prohibited. No member of the Industry shall indirectly violate
this Article by any subterfuge such as that commonly known as
warehousing arrangements. Every manufacturer who has such con-
signment stocks in the hands of buyers on the effective date of this
Code may continue the same but he shall file a detailed list of such
accounts with the Code Authority where. references may be made to
it at any reasonable time by interested parties. If any manufacturer
finds it necessary to take over a stock on a consignment basis for
legitimate credit reasons, he shall be permitted to do so, but shall
immediately report the circumstances to the Code Authority. No
merchandise of a liquid chemical nature shall be subject to return
for credit or exchange, and all other returns must be in unopened
original containers within thirty days after delivery, prepaid by the
customer and credit shall be subject to a 10% deduction for handling
charges.
14. In addition to warranties implied by law, the manufacturer
may assume full guarantee for the quality of his products, which
guarantee shall be limited in amount to the sum of money received
for such products. But in no event shall the manufacturer issue a
guarantee covering the performance of the product in work where he
does not supply the workmanship.
15. There shall be no deviation for the purposes of influencing
a customer or prospective customer from the published and pre-
viously established specifications and recommendations of a par-
ticular member for a particular product.
16. No member shall agree or guarantee to furnish sufficient quan-
tities of the materials covered by this code for any building or
construction operation at a lump sum price. To quote such lump
sum bid shall constitute an unfair trade practice.
17. Nothing in this Code shall limit the effect of any adjudication
by the Courts or holding by one Federal 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 Code.

ARTICLE IX-\ MODIFICATION

1. This Code and all provisions thereof are expressly made sub-
ject to the right of the President, in accordance with the provisions
of subsection (b) of Section 10 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, but without limitation, to the right of the President to





508

cancel or modify his approval of this Code or any conditions im-
posed by him upon his approval thereof.
2. This Code, except as to provisions required by the Act, may
be modified on the basis of experience or changes in circumstances,
such modification to be based upon application to the Administrator
and such notice and hearing as he shall specify, and to become effec-
tive on approval by the President.

ARTICLE X-MONOPOLIES, ETC.

No provisions of this Code shall be so applied as to permit monopo-
lies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterprises.

ARTICLE XI-PRICE INCREASES

Whereas the policy of the Act to increase real purchasing power
will be made impossible of consummation if prices of goods and serv-
ices increase as rapidly as wages, it is recognized that price increases
should be delayed and that, when made, the same should, so far as
reasonably possible, be limited to actual increases in the seller's costs.

ARTICLE XII-EFFECTrVE DATE

This Code shall become effective on the first Monday after its
approval by the President.
Approved Code No. 140
Registry No. 1610-06








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