Citation
Code of fair competition for the floor and wall clay tile manufacturing industry

Material Information

Title:
Code of fair competition for the floor and wall clay tile manufacturing industry as approved on November 4, 1933 by President Roosevelt
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington
Publisher:
U.S. G.P.O.
Publication Date:
Language:
English
Physical Description:
v, 15 p. : ; 23 cm.

Subjects

Subjects / Keywords:
Tile industry -- Law and legislation -- United States ( lcsh )
Genre:
federal government publication ( marcgt )
non-fiction ( marcgt )

Notes

Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry no. 1042-1-02".

Record Information

Source Institution:
University of Florida
Rights Management:
This item is a work of the U.S. federal government and not subject to copyright pursuant to 17 U.S.C. §105.
Resource Identifier:
004851491 ( ALEPH )
31959774 ( OCLC )

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UNIVERSITY OF FLORIDA

3 1262 08486 7489
Registry No. 1042--1--0:


NATIONAL RECOVERY ADMINISTRATION



CODE OF FiAIR COMPETITION

FOR THE


FLOOR AND WALL CLAY TILE

MANUFACTURING INDUSTRY

AS APPROVED ON NOVEMBER 4, 19~8
BY
PRESIDENT ROOSEVELT




MSSR





WI .DUR PART




1. Executive Order
2. Letter of Transmittarl
8. Code






UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON s 1938


For sale by the Baperintendent of Documents, Washington, D.O. Price 5 cents
























This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D. C., and by district offices of the Bureau of!
foreignn and Domestic Commerce.

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE

Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building,
Bo~ston, M~ass.: 1801 Custombouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Buildling.
Chiengo, Ill.: Suite 17i06, 201 Nolrth W'ells Street.
Clevelandl, Ohio: Chamber of Commleree.
Dallas, Tex.: Chambere of Commerce Building.
Detroit, M~ich.: 2213 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building,
Indlianapolis, Ind.: Chamber of Commerce Buildling.
Jacklsonville, Fla.: Chamber of Comm~erce Building.
Kansus City, M~o.: 1028 Baltimo~re Avenue.
Losi Angeles, Calif.: 1163 South Broadway.
Louisv-ille, KY.: 408 Federal Building.
M~emphis, Tenn.: 220 Federal Building,
M~inneapolis, Mlinn.: 213 Federal Buildling.
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.
Por~tland, Oreg.: 215 New Post Offce Building.
St. Louis, M~o.: 506 Olive Street.
San Francisco, Calif.: 310 Customhous~e.
Seattle, Wash.: 809 Federal Building.


















EXECUTIVE ORDER


CODE OF FAIR COMPETITION FOR THE FLOOR AND \fALL CLAY TILE
MANuractuarwoa INDUSTRY
An applicat~ion 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 Floor and WI~all Clay Trile M1~anufactur-
ing Industry, and hearings having been held thereon and the Admin-
istrator 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 Administrantor 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 require-
ments of clauses (1) and (2) of subsection (a) of section 3 of the said
act have been met:
NOWV, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant t.o the authority vested in me by title I of
the National In~dustrial 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 cd
of fair competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
THE H~ITE: HOUSE,
November C, 1933.
Approval recommended :
Hean S. JoERmson,
A administrator.


19510*--188-151- 88-~











OCTOBER 30, 1033.
The PRESIDENT,
The Wh'iite House.
SmR: This is a report of the hearing on the Code of F'air Compe-
tition for thle Floor and Wall Clay Tile M~anufacturing Industry
in the United States, conducted in Washingaton on September 27,
1938, in accordance with the provisions of the National Industrial
Recovery Act.
PROV'ISIONS OF THIS CODE As TO WAGES AND HOUrRS

This code provides for a maximum of forty hours of work per
w~eek, averaged over a one-month period for office and branch ware-
house emlployees and over a six-month period for other employees,
and a maximum of forty-eight hours In anly one week, except as
follows :
(a) Executives and supervisory mlye eevn 3.0o
more per w~eek, outside salesmen an;d employees renged in emergencyr
maintenance or emergency repair work;
(b) Engineers, kiin burners, gas producer men, and boiler firemen
who sha~ll not be permitted to wcor~k in excess of forty-two hours per
w~eek averaged over a six-month period nor in excess of forty-eight
hours in any one week;
(c) Watchmnen, who shall not be permitted to workr in excess of
ninety-six hours in any two-week period.
No employee shall be permitted to work more than twelve days in
any fourteen-day period.
This codle provides for minimum rates of pay of forty cents per
hoiur for male and t~hirty-two and one half cents per hour for female
employees, regardless of whether the compensation is on a time rate,
piece rate: or other basis, provided, however, that female employees
performing substantially t.he same workr as male employees shall
receive the same rates of pay; and provided further, that where
women displace men on the same occupation they shall receive rates
of pay not lower than those of the men they displace.
Apprentices and employees physically handicapped may be paid
not less than 830% of t~he above minimum wages, provided that not
more than 5r70 of thle total number of employees of any member of the
industry be included in either Eroup.
Pro~vision is made for the adjustment of wages above the minimum
so as to maintain differentials equal to the average differentials for
thre industry existing on September 1, 1933, unless this should raise
the rate for a.n occupation higher than the average for the industry
existing on July 15, 1929, in which case the latter rate would apply.
No person under sixteen years of agae shall1 be employed and none
under eighteen years employed in any hazardous occupation.
ECONOMIC EFFECTS OF THE CODE
According to a survey made. by the Tile Mlanufacturers' Associa-
tion, there has been a decrease in sales v~olum~e in this industry of
(IV)









approximately 710% since 1928, and an even greater decrease in gross
receipts due to the lower prices now prevailing. The number of em-
ployees decreased approximately 55%0 during this period.
Due to the present low volume of business it is doubtful w~het~her
the adoption of this code would result in a large irmmediate increase
in employment. However, it should tend to smooth ou~t thet sharp
seasonal peaks and should result in a rapid spread of employment
when volume begins to increase.
The sponsors of the code have estimated an im~mediate increase
inl employment of 15%0, or 350 persons. They have estimated an in-
crease in total wages paid by the industry of 33%c, or ap~proximnately
$500,000 per year.
The minimum wages proposed in the code are approxtimately 0
higher than the average wages now being paid in thle lowrest-paid
occupation and from 10%~ to 15%0 higher than the average wagres paid
in these same occupations in 1928. The lowe~r minimum wa~ge for
women is in accordance with past practice in this industry. Approxi-
mately 33%0 of the employees are women.
At the present time this industry is operating at only about 17%r
capacity. The provision in the code requiring the reporting of
intention to increase present kiln c,&apacity' or to install new kiln
capacity, will tend to discourage furthr expansion until such time
as there is a larger volume of business.
It is hoped that the provisions of this code will tend to stop the
unreasonable price-cutting, misrepresentation, and other demoraliz-
ing practices which apparently exist in this industry at the, present
time.
FINDI NGs

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 limi-
tation, 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
Floor and Wall Clay Tile M~anufacturingi Industry; and that--
(c) The Code as recommended is not designed to promote mionop-
olies or to eliminate or oppress small enterprises and will not oper-
ate to discriminate against them, and will tend to etlectuate the
policy of Title I of the National Industrial Recovery Alct.
It Is recommended, therefore, that thlis Code be approved.
Respectfully,
Honc S. JoRNSON,
Administrator.












































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CODE OF FAIR COMPETITION FOR THE FLOOR AND
WALL CLAY TILE MANUFACTU RI NG INDUSTRY

AREcLE I-PUsRPOSES

To effectuate the policies of Title I of t~he National Industrial
Recovery Act, the following provisions are submitted as a Code of
Fair Competition for the Fl~oor and Wall Clay Tile lIlanufacturing
Industry, and upon approval by the President shall be the standard
of Fair Competition for such Industry and shall be binding upon
every member thereof.
ARrzCu: II -DTEFUNTTIONS
1. The term "' Industry as used herein includes the manufacture
and sale by the manufacturer of floor and wall clay tile and related
products, including, but not limited to, bathroom accessories, deco-
rated strips, and similar articles used as part of the tiled area.
2. The term tile" as used herein includes all kinds of glazed
or unglazed tile used for floor and wall surfacing which are made
exclusively from clay and/or other ceramic materials and are burned
in the course of manufacture and which in the case of glazed tile are
composed of ceramic body and ceramic glaze.
8. The term "L employee ", as used herein, includes anyone engaged
in the Industry in any capacity receiving compensation for his serv-
ices, irrespective of the nature or method of payment of such
compensation.
4. The term employer ", as used herein, includes any one by
whom any such employee is compensated or employedl.
5. The term "' Member of the ~Industry includes anyone engaged
in the Industry as above defined either as an employer or on his own
behalf.
6. The term "' M~ember of the Code ", as usedl herein, includes any
member of the Industry who shall have become a member of the
Code as hereinafter provided in Article VII.
7. The termi "Association ", as used herein, shall mean the Tile
Manufacturers' Association.
8. The term "' Board of Directors ", as used herein, shall mean the
Board of Directors of the Tile Manufacturers' Associa.tion.
9. The term "L majority of the members of the industry ", as used
herein, shall mean a majority in number of members of the Indlustry
assembled, either in person or voting by proxy, at a meetings which
shall have been called by one week's prior notice by telegraph~ or mail
as provided in Section A of Article XIII of this Code, providing
such majority in number also represents a majority of the sales
volume in dollars of the members of the Industry for the previous
three years.
10. The term majority of the members of the code as used
herein shall mean a majority in number of members of the code as-









sembled, either in person or voting by proxy, at a meeting which
Fshll have been called by one week, prior notice by telegraph or mail
as provided in Section A of Article 13 of this code, provided such
majority in number also represents a majority of the sales volume
in dollars of the members of the code for the previous three years.
11. The terms President ", "Act ", and "Administrator as used
her~ein shall mean respectively the President of the United States,
th~e National Indust.rial Recovery Act, and the Administrator of said
Act.
ARTIC~Le IIZ-- OURS

1. On and after the effective date and except as hereinafter other-
wise provided, no employee shall be permitted to work in excess of
48 hours in1 any one. week nor in excess of 40 hours per week averaged
over a six (6) months' period.
2. The foregroinga provisions shall not apply to engineers, kiln
b~urners, gas prodluer men, and boiler firemen who shall not be per-
mitted to work in excess of 48 hours in any one weeek nor in excess
of 42 hours per week averaged over a six (6) months' period; nor
shall they apply to watchmen, who shall not be permitted to work
in excess of 96 hours in any period of two weeks.
3. The maximum hours fixed in the foregaoing sections of this
article shall not apply to office or branch warehouse employees who
shall not be permitted to work in excess of 48 hours in any one week
nor inr excess of 40 hours per week averaged over any one (1) -mont~h
period.
4. The maximum hours fixed in the foregaoing sections of this
article, shall not apply to executives and supervisory employees re-
c~eiving $30.00 or more per week, nor to outside salesmen, nor to em-
ployees engaged in emergency maintenance or emergency repair
work.
5. No employees shall be permitted to work more than twelve
(12) days in any fourteen (14) day period.
6. No employer shall knowingly engage any employee for any
time which when totalled with that already performed for any other
employer or employers exceeds the maximum specified in the fore-
gomng sectlOnS.
7. F'or the purposes of this Article the remainder of the year
1933 from. and after the effective date of this Code to December
31, 1933, inclusive, shall constitute the first six months' period. The
subsequent six months shall begin on January 1st and July 1st,
respectively, and shall terminate on June 30t~h and December 31st,
respectively.
AnrrTom IV--WAG3E

1. No male employee shall be paid at less than the rate of 404 per
hour and no female employee shall be paid at less than the rate of
3*2%#~ per hour, provided, however, that female employees perform-
ing substantially the same work as male employees during the same
hours of the day shall receive the same rates of pay as such male
employees, and provided further that where women displace men on
the same occupation, they shall receive rates of pay not lower than
those of the mlenn they displace.








2. The foregoing provisions establish a minimum rate of pay
regardless of whether an emplloyree is complensatedl on a timne rate,
piece rate, or any other basis.
3. The hourly rates for occupations other than those receiving
the m~inimium rate herein prescribed, exceptinig those receivingr $35.00
or more per weekr, shall maintain the difference in hourly earniingrs
between such occupations which existed on Septemiber 1, 1933, pro-
vided, however, that if the foregoing provisions raises th~e hourly
rate higher than the hourly rate for the same occupations which
existedl on July 15, 1989, the hourlyS rate in effect on that dlate shall
apply, but in no event shall this rate be less thian specified in Section
1 of this Article. The average hourly rates of the Industry rathier
than the hourly rate of any individual member of the Industry
shaUl be used to determine the July 15, 1929, rate and September 1,
1933, rate. WPithin thirty days after the approval of this Code, the
Code Authority as hereinafter established shall determine andi pro-
mulgate to members of the Industry thle average hourly rates of pay
existing on July 15, 1929, and Septemiber 1, 1933, for occupations
other than those receiving the minimum w5age.
4. The minimum rates established in the foregoinlg provisions shall
not apply to apprentices who shall be paid not less than 80%1 of
the minimum rates of pay hiereinabove established; provided, how-
ever, that the number of such apprentices shall not exceed 5%n of
the total number of employees of any member of thle Industry at
any one time, and provided further, that the period of apprenticeship
of any employee shall not exceed four weeks.
5. The minimum rates of pay provided in the foregoing provision
shall not apply to employees wrho are physically handicapped; pro-
.vided, however, that such employees shall not be paid at less than
80%/ of the minimum rates hereinabove established, and provided
further, that the total number of such excepted employees shall not
exceed five percent of the total number of employees of any memlberr
of the Industry at any one time.
AnrlTCLE VT-GENERAL LBnon PRovIsoNs
1. No person under 16 years of age shall be employed in thle In-
dustry, nor anyone under 18 years of age at operations or occupa-
tions hazardous in nature or detrimental to health. The: Clode Au-
thority shall submit to the Administrator within 30 dayns after thle
approval of this Code by the President a list of such occup~ntions7.
In any State an em~ployer shall b~e 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 re-
quired age.
2. Employees shall have the right to organize and bargain collec-
tively through representatives of their own choosing, andl shall be
free from the interference, restraint, or coercion of employers of
labor, or their agents, in t~he designation of such representatives or in
self-oganization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection.
3. No employee andr no one see~king employment shall be required
as a, condition of employment to jomn any company umion or to re-
1931 --188-51---33-2








frain 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, ap-
proved or prescribed by the President.
5. WOithin each State this Code shall not supersede any laws of
suc~h St~ate imposinr more st~ringent. requireme~nts on employers regn-
lating 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. Each employer shall post copies of this Code and the average
Industry wage rates as promulgated by the Code Authority in
accordance with the pr~ovisions of Article 4 hereof conspicuously at
the place of employment.
AerTICF: VI

To effectuazte further the policies of the Act, the Code Authority
is hereby constituted to cooperate with the Administrator -in the
administration of this Code.
A. Organization and Constitutionl of Code Aulthority.-1l. The
Code Aut~hority shall consist of t~he Board of Directors and such
additional number of members of the Industry not members of the
association as may be approved from time to time by the Adminis-
traztor a~nd as may be elected by fair methods of election to be ap-
proved by the Admninistrator. The Administrator, in his discretion,
may appoint not more than three additional members without vote
to represent the Administrator or such other groups or interests as
may be agreed upon, without expense to the Industry. Such addi-
tional members shall serve for terms of from six months to one year,
or such other terms as the President may designate, which terms shall
be arranged in such a manner that they do not expire at the same
timne. Such members, together with the Administrator, shall be given
notice of and mayS attend all meetings of the Code Authority.
2. The Association is hereby designated as the agency to conduct
such1 election and as the agency to promote the purposes of this
Code.
3. Each trade or industrial association directly or indirectly par-
ticipating in the selection or activities of the Code Authority shall:
(i) Impose no inequitable restrictions on membership, and
(ii) Submlit to the Administrator true copies of its Articles of
Association, By-Laws, regulations, and any amendments when made
thereto, together with such other information as to membership,
organization, and activities as the Administrator may deem necessary
to effectuate th.e purposes of the Act.
4. In order that the Crode 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 hear-
ings as he may deem proper; and thereafter if he shall find that
the Code Authorityr 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.








B. Powoers an2d Duties of the Code Author~ity.-The Code Author-
ity shall have the following duties and powers to thle extent per-
rmtted by the Act and subject to the right of the Adlministrator on
review, to disapprove or modify any action taken by the Code
Authority pursuant to this Code:
1. The Code Authority shall be the general planning, coordinatingI
and administering agency of this Clode. It may makle rules and
regulations for the adlmimnstration of this Code.
2. The Code Authority m~ay designate the Association or such
other committees or agents and mlay delegate to them such of its
powers and duties as it may deem necessary for the administration
of this Code, provided, however, that it shall reserve final responsi-
bility with respect to any such dielegatedl powvers or dluties, and pro-
vided further that any statistical information of a confidential c~har-
acter submitted to the Ciode Authority pursuant to the provisions
of this Code, shall be submitted to such impartial agency, not con-
nected with or obligaated to anymember of the Industry, as th~e Codie
Authority may designate. TeCode Authority mnay designate ap-
propnriate g~overning agencies for districts or divisions of thie Indulstry~
for the administration of this Code. In such districts or divisions
the Code Authorit~y mnay delegate to such agencies such of its powers
and authority as m~ay be necessary for the administration of thiis
Code within such districts or divisions, including the right to submiit
to the Administrator recommendations for amendments t~o this Code,
applicable only to such districts or divisions within the scope of the
powers granted under thlis Code.
3. The Code Authority shall, ulpon comnplaint of initerestedl parties,
upon request of the Administrator, or upon its own initiative, mak~le
such inquiry and investigation as to the operation and observance
of this Code as may be necessary, and shall report the results thereof
to the Administrator. Any complaint concerning on alleged viola-
tion of the Code shall be submitted to the Code Aiuthority in writing
and by registered mail. The complaint shall contain a complete
statement of the facts and shall refer speci~cally to that part of the
Code which is alleged to have been violated. If it shall appear to
the Code Authority after investigation that there hans been a viola-
tion of the Codep a statepment. of the chl~arge shall be sent by reg-is-
tered mail to the member of the Industry who is alllegted to have
committed the violation. The statement of charges shall fix the time
and place for a hearing, at which the member of the Indlustryv
complained of shall be given an opportunity of presenting his
defense. The Code Authority shall make recommendations to theo
Administrator with respect to such violations.
4. In order that the President may be informed of the extent of
the observance of the provisions of this Code and of the extent to
which the declared policy of the National Industrial Recovery Act
is being effectuated mn the Industry, the Code Authorityv shall make
such reports as the Aldministrator may require, periodically or as
often as he may direct; each member of t.hle Industry shall makre
such sworn or unsworn reports to the Code Authority periodically,
or as it may direct, on wages, hours of labor, conditions of e~mploy-
ment, number of employees, production, shipments, stocks, prices,
and other matters pertinent to the provisions of this Code as the








Code Authority may require for the administration of this Code.
In addition to the information reqluiredi to be submitted to the Code
Authority, members of thle Industry shall furnish to Government
agencies such statistical information as the Administrator may deem
necessary for the purposes recited in Section 3a of the Act.
5. Statistical information required by the C~ode Authority in
accordance with the provisions of this Code shall be furnished to
the Code A1uthority through an impartial agency, as hereinbefore
provided. Such information shall be deemed confidential and shall
not be divulged to anyn member of the Industry except in summary,
provided, however, that where summary information in effect dl-
vulges the identity of individual members of the Industry it shall not
be revealed to any member of the Industry but shall be made available
to the Administrator upon request and may be used to facilitate the
administration of this Code.
G. In order to insure proper protection for the Industry and for
the employees thereof, the Code Authority shall cause to be made
such investigaations as mnay be necessary to determine the effect of
imports upon the Industry and may make such recommendations
wit~h respect thereto to t.he President for such action by him pursuant
to Section 3-e of Title I of the Act; as he may deem necessary.
7. The present kiin capneity of the: Industry shall be registered
by memlber~s of the Industry with the Code Authority. The inten-
tion to install additional kiin capacity, excepting, however, miod-
ernization or replacement of existing capacity, either by members
of the Industry or by those intending to engage in t~he Industry, shall
be reported to the Code Authoritry. The Code Authority shall make
such recommendations with resp~ect. thereto to the Administrator as
it, may deemn desirable to effectuate the policy of the Act.
8. Any interested party shall havre the right to complain to the
CGode Authority under such rules and regulations as it may prescribe
with respect. to any rule, regulation, order, or finding made or course
of action pursued by the Code Authority: and any interested party
shall hzavce thle right to appeal to the Admmnistrator under such rules
andl regulations as he may prescribe in respect to any decision, rule,
regulation, or course of action of the Code Authority pursuant to
anly provision of this Code.
9. Members of the industry shall be entitled to participate in and
share the benefits of the activities of the Code Authority and to par-
ticipate in the selection of the members thereof by assenting to and
complyving with the requirements of this Code and by either becoming
a member of thre Ass~ciation or by sustaining their reasonable share
of the expenses of the administration of this Code. The reasonable
"share of the expenses of admiinistration shall be determined by the
Code Authority, subject to review by the Aidministrator and shall be
based upon thne amount in dlolzlars of net sales an~d/or such other fao-
tors as may be deemed equitable.
AiRrram VII

Any member of the Industry shall be eligible for membership in
the Code. Any member of the Indust~ry desiring to become a member
of the Code may do so by signing and delivering to the Code ALu-








thority a letter substantially in the form set, forth in Schedlule A
annexed hereto.
ARTICLE VIII-TRADE PRACTICES

1. No member of the Industry shall make, allow, or sell products
of the Industry at a price or discount conditioned on the basis of com-
bined sales or shipments of glazed tile and unglazedc tile.
2. No member of the Indu~stry shall make any price dlis~crimnian-
tion between purchasers of the same class; provided, however, tha~t
nothing herein shall prohibit a, differnce in price that makes allowv-
ance only for difference of grade, kind, or of trannsportat~ion charges.
3. No member of the Industry shall give or permlit secret rebates,
allowances, refunds, credits, subsidies, or unearnled discounts, wh~ethler
in the form of money, material, premiiums, advertising, or otherwise,
: or extend to certain purchasers special service or privilegres not
extededto all purchlasers under like terms andcodtns
4. No member of the Industry shall induce or attempt to induce
by any means any party t~o a contract with a mlember of the Industry
to violate such contract.
5. No member of the Industry~ shall make or promise to make,
either directly or indirectly, to any purchaser or prosp~ective pur-
chaser of any product, or to any officer, employee, agent, or repre-
sentative of any such purchaser or prospectiv-e purchaser, any bribe,
gratuity, gift., or other payment or remuneration.
6. No member of the Industryr shall defamne any comnpet~itor by
false~ly impuitingr to him dishonorable conduct, inability to perform
contractst, questionable credit standing, or by other false representn-
tions or by the false dissparagement. of the grade or quality of his
J goods.
7. No member of the Industry shall sell the products of the In-
dustr~y on consignment.
-r 8. No member of the Industry shall imitate trade marks, trade
names, or designs of a competitor in such a manner as to mislead
';i~~ior deceive customers or prospective customers.
9. No member of the Industry shall publish or circularize threats
or suits for infringement of patents or trade marks or of any other
legal proceedlings not in good faith, with the tendency or effect of
ha rassing competitors or I mt midating their customers.
10. No member of the Industry shall withhold from or insert state-
ments on orders or invoices, which makes such record a false or in-
complete record, wholly or in part of the transaction or condition
represented on the face thereof.
11. No member of the Industry shall guarantee customers or pro-
r, spect.ive customers against price declines or price advances.
: 12. No member of the Industry shall permit any misrepresentation
in the sale, offering for sale, billing, invoicing, marking, branding or
labelling of any product or of containers t~hereo~f nor permit the
issuance of any grade certificates with the intent or with the effect of
deceiviniy ing customers, architects, competitors, or the public as to quan-
tit, kndor grade of tile products.
18. No member of the I~ndustry shall make or cause to be made
lump sum bids or quotations except for specialties of plastic faience,








cut ceramic, or other specialties of tile for which prices have not been
filed with the Code Authority.
14. No member of t~he Industry shall deliver two or more grades
of tile as established pursuant to this Code in the same container.
15. No member of the Industry shall grant open credit in excess
of thirty (30) days net after date of shipment, nor in excess of two
(2) percent cash discount for payment of invoice within fifteen (15)
days after dzate thereof, provided however, that fifteen (15) addi-
tional days open credit may be granted upon shipments to points
beyond the Rocky lIfountains, and provided further that no cash
discount shall be deducted from prepaid transportation charges, and
provided further that payment of all invoices dated between and
including the first and the fifteenth of the month may be accepted
net on the fifth of the following month, and invoices dated between
and including the sixteenth and thirty-first of the month, may be
accepted net on the twentieth of the following month.
16. No member of the Industry shall accept orders for specific,
jobs until the contract for such specific job has been awarded.
Orders for specific jobs shall specify the name and location of the
specific job on which material is to be used, and the quantity required
within a variation of ten percent (10%o).
17i. No member of the Indlustry shall accept stockr orders for ship-
ments after thirty (30) days from t.be date of the acceptance of
such orders except on condition that shipments made after such
30-day period shall be at the price prevailing on such date.
18. No member of the Industry shall make quantity surveys or
perform other st~imat~ing services without making reasonable spe-
cific charge therefore, provided however, that nothing r mknherein con-
taineed shall prevent anymmeoftendsrfom akg
setingplas o deail quantities for a job requiring special or
unusual treatment.

ARTICLE la --FUBLISHED PRICES

A-. Each member of the Industry shall use an adequate cost-
accounting system which shall be at least as complete and detailed
as the cost-accounting system recommended by the Code Authority
and approved by the Admninistrator as hereinafter provided. The
Code Auithority shall recommend for use in the Industry a uniform
andl adlequate ost-necouint~ing system which shall be adaptable to
the cost-accountinga procedure a~nd to the business of the Industry.
Such plan shall specify the factors which shall be included in deter-
mining thle costs of each member of the Industry. Upon approval
by the Aidministrator of such a system of cost accounting for the
Industry, complete advice concerning it. shall be distributed by the
Code Authority to all members of the Industry. Thereafter each
member of the Industry s-hall file with the Code Authority his costs
for each product of t.he Industry offered for sale by him. Thereafter
no memnberr of the Industry shall initiate a selling price below his
own cost or sell thle products of the industry at such price or upon
such terms or conditions of sale as will results in the purchaser's pay-
ing for such product less than the cost. of that member of the Industry
who has filed with the Code Authority the lowest cost; provided,








however, that the Code Authority may approve, subljc~t to review
by the Administrator, the sale of surplus stocks below sulch costs
where necessary to relieve financial emergencies. A~ detailedl record~
of such surplus stocks shall be filed\ wit~h and chtckledl by~ such~ imn-
partial agency as the Code Authority may decsigna:te at thle time of
application for such approval.
B. Each member of the Industry shall publish andlr file w~ith the
Code Authority within ten days after the eff'ective~ date olf thle 'odle
a price list individually prepared by him of all produlc~ts otfercd for
sale or sold by him and all terms and cond-itions of sale r~elating
thereto. Such price list shall state for each grad~e and kindl o-f each
product sold or offered for sale one price with appropriate discounts
therefrom, if any are allowed, for sales to classified types of buy-ers;
provided, however, that suchn discounts shall not exc~eedl fifteen per-
cent. Such price list and terms and conditions of sale so, flile with
the Code Authority shall be open to inspection at all reasonable
times by any interested party. Revised price lists or revised terms
and conditions of sale may be filed from time to time thereafter
with the Code Authority by anly member of the Industry; provided,
however, that such revisions shall be filed withl thne Code Authiority
at least ten days in advance of the effective dante t~hereo~f: an( pr~o-
vided further, that any other member of the Industry may tile re-
visions of his price list or terms andi conditions of sale to mneet the
revisions first filed which may become effective on t~he dante when t~he
revised price list or revised terms and conditions of sa~le first filed
+I shall become effective.
C. No member of the Industry shiall sell or offer for sale any
product of the Industry at prices lower than the prices noted in its
price list, or on more favorable terms and conditions of sale, than the
terms and conditions of sale previously filedl by such mnemb~er with
the Code Authority in accordance with the provisions of Section B
of this Article anid in effect at the time of such sale.
D. A member of the Industry may file with the Codle Authority a
price to apply between members of the Industry or other mianu-
facturers usmng tile as a part of other manufacturedl articles.
ARTICLE X--CLASSWFICATION AND STAN'DARDIZATION OF TILE

A. All tiles sold or shipped by any member of thle Industry shall
be branded either Standards or Seconds in accordance witih the
if ~minimum grade specifications of Simiplified Practices Recomnmenda-
S~ tion R-61-30 as issued by the Unitedl States Departlentt of C~om-
merce or as may hereafter be established as standards for the Indus-
try and approved by the Administrator. Such brands shall be
.3;i indicated plainly and conspicuously on each container in such mlan-
ner as shall be ap mrovd by the Codle Authority.~ ;ptotm
B. The Code Authority may recommend rmtiet tm
classification of the various types of tiles manufactured, and upon
the approval of the majority ftemmeso h oeado
Ii; iithe Administrator, after suc heain ashe maybrso pre cribe, sucho
classification shall be established as the practice of the Industry
and no member of the Industry shall sell or offer for sale products
for which such classifications have been established except in accord-








ance with such classifications. The provisions of this Section B
shall not apply to unglazed quarry tile.
C. No member of the Industry shall sell second-grade tile in an
amount in excess of thirty-five percent of the total square footage
of glazed tile sold by him, nor in excess of fifteen percent of the
total square footage of unglazed tile sold by him, or such other
reasonable percentage as mlay hereafter be decided upon by a
majority of the Industry, and approved by the Administrator,
from time to time; provided, however, that the Administrator on
petition and after such hearing as he may prescribe may modify
the percentages herein established; and provided further that any
member of the Code mayparticipate in the provisions of Section D
hereinafter set forth. Te provisions of this Section C shall not
apply to unglazed quarry tile.
D. (1) Any member of the Code may exceed the percentages
specified pursuant to Section C of this Article on condition that he
shall pay to the Treasurer of the Code Authority, as trustee of the
Tile Industry Fund, as liquidated damages 20 per cent of the
total sales value of the second-grade tiles sold by him in excess of the
percentages established pursuant to the aforesaid Section C of this
Article.
(2) The liquidated damages referred to in the foregoing subsec-
tion shall be based upon the average percentage of seconds sold by
any member of t.he Code in excess of the percentages established
pursuant to Section C of this Article sold for the current calendar
year or part thereof after t.he effective date of this Code. Each
member of the Code shall send to the agency designated by the
Code Authority a monthly statement stating thereon his square foot-
age over or under the allowed percentage of second-grade tiles for
the current month, and the Code Authority or such agency as it
many designate shall send to each member of the Code a monthly
statement stating thereon his square footage over or under the allowed
percentage of second-grzade tile cumulative to date for the current
year and the liquidated damages, if any, dlue thereon. Each member
of the Code shall within 30 days after receipt of such statement
pay to the Treasurer of the Code Authortiy as trustee of the Tile
Industry Fund any liquidated damages due mn necordance with such
statement or the provisions of this Code.
(3) No member of the Code shall be required to pay liquidated
daamages dlue for any current month if sufficient credit has accrued
to his account for sales under the allowed percentagae.during any
previous months.
(4) Any member of the Code who in earlier months of any current
year shall have paid liquidated damages which subsequently are off-
set by a credit due him~ for the percentage of second-grade tiles sub-
sequently sold below the percentage established pursuant to See-
tion C of this Article, shall have refunded to him on June 30 and
December 31 of each year, or as soon thereafter as possible, such
excess liquidated damages as he shall have paid.
(5) All sums due as liquidated damages in accordance with the
provisions of this Section D of this Article shall be paid into a, sep- I
arate fund to be k-nowfn as the Tile Industry Fund. The Treasurer
of the Code Authority as an individual shall be the trustee of the









Tile Industry Fund and as such shall place payments for liquidated
damages received to the credit of such fud and make disburse
ments therefrom in accordance with the provisions of this Article,
This Fund shall be maintained as a separate fund from any general
fund which the Code Authority may establish or maintam. Dis-
bursements from said fund may be made from time to tim in such:
manner and for such purposes as thre majority of the members of the
Code shall determine provided, however, that at all times a sufficient
fund shall be maintained in the said T~ie Industry Fun~d to refund
any liquidated damages which may~ have been paid into the afore-
said fund and which subsequently may become due for refund to
members of the Code, in accordance with the provisions of subsection
(4) of this Section D.
(6) The provisions of this Section D may be terminated upon a
majority vote of the members of the Code.
E. Offshad-e Tiles which are so widely different in shade that
they cannot be used to fill an order for Standard Grade Tiles of the
particular color such Off shade Tiles were intended to reproduce,
shall be sold at thle manufactulrrer' published price for Second- Grade
Tiles and shall be calculated as Second Grrade Tiles subject to the
provisions of Sections C and "L D ") of this Article.
ARTICLE XT--SAMPLES

No member of the Industry shall furnish samples free of charge,
except for a specific job, in excess of two square feet of any one
color or pattern, exc~epting, however, Quarry Tiles. Unmounted
samples furnishedl for displays purposes in a showroom, arc~hitectural,
home owners' or builders' exhibit, in excess of two square feet of any
one color or pattern, shall be charged for at the current published
prices less a discount not exceeding 50%0. Tle furnished on mounted
samples in excess of two squlare feet of aeny one color or pattern shall
be charged for at the current publlished prices, but the manufacturer
may bear the cost of mountingr such samples anld furnishing metal
angle iron surroundings the panel or such other bracing as is used,
crating andl the crate cost.
ARTICLE 111- ISTRIBUTION

A. N~o member of the Industry shall grant discounts from his pub-
lished net prices as fledi with thle Code Aiuthority, except thalt a dis-
count of not over fifteen percent may be given to merchant tile c'on-
tractors or to wholesalers.
B. For the purposes of this Article a merchant tile contr~actor shall
be defined as a concern which:
(1) Specializes in t~he installation of, but does not engag~e in the
sale of unset tile, bathroom accessories, or other accessories which are
a part of the tiled area;
(2) Mlaintains an adequate showroom andl plnce of business opecn
to the public during usual business hours, whiich show~room, if a part
of a residence, has an entrance separate from aIny residential entrance
and contains at least two hundred and~ fifty (25r5) square feet of floor
space and is equipped with suitable furniture andl equipment in keep-
mng with a business office and showroom;







12

(3) Ma~intains display facilities and display cabinets adequate and
suitable to its business.
(4) Who shall have purchased two thousand dollars ($2,000) worth
of tile, bathroom accessories, or other accessories which are a part
of the tiled area during th-e past six semiannual periods, or if in
business less than the six semiannual periods, then an average of two
thousand dollars ($2,000) worth of tile, bathroom accessories or other
necessor~ies which are part of the tiled area for such six-month periods
or any portion thereof as he has been in the tile contracting business.
Purchases as set forth in this section shall be construed to mean
the total amount billed for products delivered during the semiannual
ch aluenr pero aor ny portion thereof and is not intended to mean
C. For the purposes of this Article, a, wholesaler shall be defined
as a concern which:
(1) Specializes in the sale but does not engage in the installation
of tile, bathroom accessories, marble sills, and other accessories which
are a part of the tiled area;
(2) Mlaintains a warehouse of adequate size and type suitable for
its business;
(3) Miaintains at each warehouse display facilities or display cab-
inets adequate and suitable for the nature of its business;
(4) Maintains an average stock of thirty-five thousand (35,000)
square feet. of tile at each warehouse.
D. The Administrator, either on his own initiative or on petition,
and after such hearing as he may prescribe, may modify (or may
approve the recommend-at~ions of a majority of the Industry for the
modification of) the provisions of Sections B and C of this Article.
E. Each member of the Industry shall submit to the Code
Authority a list of persons, firms, or corporations whom such mem-
ber of the Industry has classified as wholesalers and Mlerchant Tile
Contractors. The Cod~e Authority shall investigate such persons,
firms, or corporations and report to members of the Industry whether,
in its opinion, subject to review by the Administrator, such persons,
firms, or corporations are entitled to qualify as wholesalers or M~er-
chant Tile Contract~ors as hereinabove defined. No member of the
Industry shall thereafter grant wholesalers' or merchant tile con-
tractors discounts to persons, firms, or corporations who have been
determined in the manner herein set forth to have failed to qualify
as wholesalers or Mferchant Tile Contractors.

ARTICLE XIII--GENERAL PROVISIONS

A. Any notice, demand, or request required or permitted to be
given to or made upon any member of the Industry shall be suff-
ciently given if mailed, postage prepaid, addressed to such Member
of the Industry at the address of such Member of the I~ndust~ry on
file with thle Code Authority. A waiver in writing signed by any
Member of the Indiustry of any such notice, demand, or request and
delivered to the Code Authority shall be deemed to be the equivalent
of a notice, demand, or request duly given or made, whether or not
such waiver was signed and delivered before the time when such
notice, demand, or request was required or permitted to be given or








B. Nothing contained in this Code shall be deemed to constitute
the members of the Industry or members of the Code partners for
any purpose. No member of the Industry and no member of the
Code shall be liable in any_manner to any one for any act of any
other member of the Code or member of th Industry or for any
act of t~he Code Authority or any agent or employee thereof Ipur-
suant to this Clode. No member of the Cod~e Authority and no
agent or employee thereof shall be liable to any one for a~ny action
or omission to act under this Code except for his: wAilful mlisfensance,
nonfeasance or dishonesty. Nothing contained in this Code shall be
deemed to confer upon any one other than a member of the Code
any right, claim, or demand wFhatsoever not expr~essly provided by
statute against any member of the Code or against any membe of
the Code Authority or any agent or employee thereof.
C. As soon as a majority composed of sev-enty-fve percent, of the
members of the Industry assembled in person or by proxy at any
meeting which has been called by a reasonable prior notice shall sign
and deliver to the Code Authority a letter in srubstalntially the form
set forth in Schedule A annexed hereto, this Code shanll constitute a
binding contract by and among the manufacturers who have signed
the Code, subject, however, to am~endmnent as herein provided.
D. Nothing contained in this Code, ex8cepting, however, Articles
II, III, IV, and V of this C'ode shall be deemed to apply to or atfee~t
the sale of any product of th~e Ildust~ry for direct shipment in expor~t
trade within the meaning of thle term "L export trade ", as it is used
in the Export Trade Act, or unless; and to the extent tat the Code
Authority shall otherwise determine, subject to review by the Atdmin-
istrator, to the sale of any product of the Industry for direct ship-
ment to the Philippines, Hawaii, or Porto Rico, or other insular
possessions of the United States of America.
ARTICLE XIV'-MBONOPOLIES

No provision of this Codle shall be so construed or administered as
to permit or promote monopolies or monopolistic practices or to
eliminate, oppress, or discrimlinate against small enterprises.
ARTICLE XTV -MODIFI0ATION

A. This Code and all the provisions thereof are expressly made
subject~ to t~he right of the President, in accordance with tlhe pro-
visions of subsection B of Section 10 of the Act, from time to time
to cancel or modify any order, approval, license, rule, or regulation
issued under Title I of said Act. and specifically, but without limia-
tion, to the right of the President to cancel or modify his approval of
any provision of this Code or of any condition imposed~ by hiim upon
his approv-al thereof.
B. Any decision, rule, regulation, order, or finding made or course
of action followed, pursuant to this Ciode, may be~ cariceled or modi-
fled by the Administrator whenever he shall determine such action
by him to be necessary to effectuate the provisions of Title I: of
the Act.







14

C. This Code, except as to provisions required by the Act, may
be modified on the basis of experience or changes mn circumstances,
such modification to be based upon application to the Administrator
and such notice of hearing as he shall specify, and to become effee-
tive on the approval of the President.
ARTICLE X ~VI -EFFEc'Iva DBrE

This C~ode shall become effective on the second Monday after its
approval by the President.
















SCHEDULE) A
Fonuz or LETTEB or Assant: To an Con

TO THE CODE AUTnoRrTY,
THE TILE rlANUrFA-CTURING INDUSTRY,
19 Wecst 44th Street, Nero YEork;, NewA York.,
DEAR SIR The undersignled, desiring to become a signatory of the Code of~
Fair Competition of thle Floor' and Wall Clay Tile Rlanuufacturingn Industr, a
copy of w-hichl is annexed hereto marked Annez AB hereby assents to all of
the provisions of said Codle (hlereinafter referred to as thte Code), and effee-
I tive as of the date on which the Code shall have been approved by the Presi-
dent of the United States of Amnerica as thereirr n proidel,, or as of the date
:;L on which this letter shall hlave bee~n delivered, if! delive-ry thereof shall have
r''been made subseqluent to tbo date on which the Cod1e shall have been approved
by said President as aforesaid, byv thle signing and declivery of this letter be-
comes a mlemb~er of thle C'ode; and effc~tive as aforesaid hereby agrees with.
I.every person, tir~m, ass~c~iation, and corporation who shall then be or there-
after become a memberC. L of the C~ode that the Code shall constitute a valid and
binding contract bietw~tee the undersigned and all rsueb other members, for a
i: ~period which shall terminate on Octobe~r 1, 1934, or at such time prior thereto
as the N'ational Indcustrial Recovery Act passed June 16, 1933, is terminafted'.
is The foregoing timle olf termination is subject to thze right of the undersirned
to extend such time if agreeable to other signatories~ of the Code.
;;;%i For all purp~oses olf Section A of A~rticle XIII of thie Code the address of the
;P ~undersigned, until it shall file with the code Authority written. notice of a
ill~ change of such address, shall be as set forth at the foot of this letter.
;)4 TYours v'ery truly,
15: ------ ----, President.
Itlr;(15)

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PAGE 1

ill I I /Ill I I 3 1262 08486 7 489 Registry No. 1042-1-02 NATIO NAL RECOVERY ADMIN! TRATION CODE OF FAIR C OMPETITION FOR THE FLOOR AND WALL CLAY T I L E MANUFACTURING INDUSTRY AS APPROVED ON NOVEMBER 4, 1933 BY PRESIDENT ROOSEVELT 1. Executive Order 2. Letter of Tra n smittal 8. Code UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON 1 1 933 Fo r sal e b y the S uperintendent of D
PAGE 2

This publication is for sale by the Superintendent of Documents, Governmen t Printing Office, Washington, D. C., and by district offices of the Bureau o-fl 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 W ells 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. J a cksonville, Fla.: Chamber of Commerce Building. Kansas City, Mo.: 1028 Baltimore Avenue. Los Angeles, Calif.: 1163 South Broadway. Louisville, Ky. : 408 Federal Building. l\Iemphis, Tenn. : 229 Federul 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. (U)

PAGE 3

EXECUTIVE ORDER ConE OF FAIR Col\!PETITION FOR THE FLOoR AND WALL Cu Y TILE MANUFACTURING 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 my approval of a Code of Fair CompetitiOn for the Floor and Wall Clay Tile ing Industry, 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 pertinent provisions of title I of said act and that the require ments 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. THE WHITE HousE, November 4, 1933. Approval recommended: J-I UGH S. JOHNSON, Administrator. FRANI(LIN D. ROOSEVELT. (ill)

PAGE 4

OcTonER 30, 1933. The PRESIDENT, The White House. Sm: This is a report of the hearing on the Code o Fair Competition for the Floor and Wall Clay Tile Manufacturing Industry in the United States, conducted in Washington on September 27, 1933, in accordance with the provisions of the National Industrial Recovery Act. PROVISIONS OF THIS CODE AS TO WAGES AND HOURS This code provides for a maximum of forty hours o work per week, averaged over a one-month period for office and branch ware house employees and over a six-month period for other employees, and a maximum of forty-eight hours in any one week, except as follows: (a) Executives and supervisory employees receiving $30.00 or more per week, outside salesmen and employees engaged in emergency maintenance or emergency repair work; (b) Engineers, kiln burners, gas producer men, and boiler firemen who shall not be permitted to work in excess of forty-two hours per week averaged over a six-month period nor in excess of forty-eight hours in any one week; (c) Watchmen, who shall not be permitted to work in excess of ninety-six hours in any two-week period. No employee shall be permitted to work more than twelve days in any fourteen-day period. This code provides for minimum rates of pay of forty cents per hour for male and thirt;-two and one half cents per hour :for female employees, regardless o whether the compensation is on a time rate, piece or other basis, provided, however, th2...t female employees performing substantially the same work as male employees shall receive the same rates o pay; aRd provided further, that where women displace men on the same occupation they shall receive rates of pay not lower than those of the men they displace. Apprentices and employees physically handicapped may be paid not less than 80% of the above minimum wages provided that not more than 5% of the total number of employees of any member of the industry be included in either g-roup. Provision is made for the adJustment of wages above the minimmn so as to maintain differentials equal to the average differentials for the industry existing on September 1, 1933, unless this should raise the rate for an occupation higher than the average for the industry existing on July 15, 1929, in which case the latter rate would apply. No person under sixteen years of age shall be employed and none under eighteen years employed in any hazardous occupation. ECONOMIC EFFECTS OF THE CODE . According to a survey made by the Tile Manufacturers' Association, there has been a decrease in sales volume in this industry of (IV)

PAGE 5

v approximately 70% since 1928, and an even greater decr e ase in gross receipts due to the lower prices now prevailing. The number of em ployees decreased approximately 55% during this period. Due to the present low volume of business it is doubtful whether the adoption of this code would result in a large immediate increase in employment. However, it should tend to smooth out the sharp seasonal peaks and should result in a rapid spread of employment when volume begins to increase. The sponsors of the code have estimated an immediate increase in employment of 15%, or 350 persons. They have estimated an in crease in total wages paid by the industry of 33%, or approximately $500,000 per year. The minimum wages proposed in the code are approximately 70% higher than the average wages now being paid in the lowest-paid occupation and from 10% to 15% higher the average wages paid in these same occupations in 1928. The lower minimum wage for women is in accordance with past practice in this industry. Approximately 33% of the employees are women. At the present time this industry is operating at only about 17% capacity. The provision in the code requiring the reporting of intention to increase present kiln capacity or to install new kiln capacity, will tend to discourage further expansion until such time as there is a larger volume of business. It is hoped that the provisions of this code will tend to stop the unreasonable price-cutting, misrepresentation, and other demoralizing practices which apparently exist in this industry at the present time. 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 limitation, 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 Floor and Wall Clay Tile 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 of Title I of the National Industrial Recovery Act. It 1s recommended, therefore, that this Code be approved. Respectfully, HuGHS. JoHNsoN, Administrator.

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CODE OF FAIR COMPETITION FOR THE FLOOR AND WALL CLAY TILE MANUFACTURI NG INDUSTRY ARTICLE I-PURPOSES To effectuate the policies of Title I of the National Industrial Recovery Act, the following provisions are submitted as a Code of Fair Competition for the Floor and Wall Clay Tile Manuacturin.?' Industry, and upon approval by the President shall be the standard o Fair Competition or such Industry and shall be binding upon every member thereof. ARTICLE II-DEFINITIONS 1. The term "Industry" as used herein includes the manufacture and sale by the I?anuacturer ?f .floor and wall clay tile an.d related products, Including, but not hnnted to, bathroom accessones, decorated strips, and similar articles used as part o the tiled area. 2. The term " tile " as used herein includes all kinds o glazed or unglazed tile used for floor and wall surfacing which are mado exclusively rom clay and/or other ceramic materials and are burned in the course o manufacture and which in the case o glazed tile are com posed o ceramic body and ceramic glaze. 3. The term "employee", as used herein, includes anyone engaged in the Industry in any capacity receiving compensation or his serv ices, irrespective o the nature or method o payment o such compensation. 4. The term "employer", as used herein, includes any one by whom any such employee is compensated or employed. 5. The term "Member of the Industry" includes anyone engaged in the Industry as above defined either as an employer or on his own behalf. 6. The term "Member of the Code", as used herein, includes any member o the Industry who shall have become a member o the Code as hereinafter provided in Article VII. 7. The term "Association", as used herein, shall mean the Tile :rv1anuacturers' Association. 8. The term " Board o Directors ", as used herein, shall mean the Board o Directors o the Tile Manufacturers' Association. 9. The term "majorit.Y o the members o the industry", as used herein shall mean a maJority in number o members o the Industry a sembled, either in person or voting by proxy, at a meeting which shall have been called by one week's prior notice by telegraph or mail a " pro-vided in Section A o Article XIII o this Cod providing uch majority in number also represent s a majority o the sales olume in dollars of the members o the Indu try or the previous three years . 10. The term "majority of the member o the code" as used herein shall mean a majority in number o members o the cvde as-

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2 sembled, either in person or voting by proxy, at a meeting which shall have been called by o ne week, prior notice by telegraph or mail as provided in Section A of Article 13 of this code, provided such majority in number also re presents a majority of the sales volume in dollars of the members of the code for the previous three years. 11. The terms "President", "Act", and "Administrator" as used h e r ein shall mean respectively the President of the United States the N a tiona! Industrial Recovery Act, and the Administrator of said Act. ARTICLE III-HoURs 1. On and after the effective date and except as hereinafter other wise provided, no employee shall be permitted to work in excess of 48 hours in any one week nor in excess of 40 hours p e r week averaged over a six ( 6) months' period. 2. The foregoing provisions shall not apply to engineers, kiln burners, gas producer men, and boiler firemen who shall not be permitted to work in excess of 48 hours in any one week nor in excess of 42 hours per week averaged over a six (6) months' period; nor shall they apply to watchmen, who shall not be permitted to work in excess of 96 hours in any period of two weeks. 3. The maximum hours fixed in the foregoing sections of this article shall not apply to office or branch warehouse employees who shall not be permitted to work in excess of 48 hours in any one wook no r in excess of 40 hours per week averaged over any one ( 1) :nonth period. 4. The maximum hours fixed in the foregoing sections of this article, shall not apply to executives and supervisory employees re ceiving $30.00 or more per week, nor to outside salesmen, nor to em ployees engaged in emergency maintenance or emergency repair work. 5. No employees shall be J?ermitted to work more than twelve (12) days in any fourteen (14) day period. 6. No employer shall knowingly engage any employee for any time which when totalled with that already performed for any other employer or employers exceeds the maximum specified in the foregoing sections. 7. For thB purposes of this Article the remainder of the year 1933 from and after the effective date of this Code to December 31, 1933, inclusive, shall constitute the first six m onths' period. The subsequent six months shall begin on January 1st and July 1st, respectively, and shall terminate on June 30th and December 31st, respectively. ARTIOLlll IV-WAGES 1. No male employee shall be paid at less than the rate of 40 per hour and no female employe e shall be paid at le s than the rate of 32 per hour, provided, however, that female employees performing substantially the same work as male employees during the same hours of the day shall receive the same rates of pay as such male employees, and provided further that where women displace men on the same occupation, they shall receive rates of pay not lower than those of the men they dis place.

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3 2. The foregoing prov1 1ons e tabli h a minimum rate of pay regardle s of whether an mplo:ee i comp n ated on a time rate, piece rate, or an other ba is. 3. The hourly rate for occupations other than tho e receiving the minimum rate herein prescribed, x epting tho e rec iving 35.00 or more per week, shall maintain th difference in hourly earnings b etwee n such oc upations which exi ted on Septembe r 1, 1933, provided howe\er, that if the foregoing prov] ion raises the hourly rate higher than the hourly rate for the same occupations which existed on July 15, 1929, the hourly rate in effect on that date shall apply but in no event shall this rate be less than specified in Section 1 of this Article. The a' erage hourly rates of the Industry rather than the hourly rate of any individual member of the Industry shall be used to determine the July 15, 1929, rate and September 1, 1933, rate. Within thirty days after the approval of this Code, the Code Authority as hereinafter establi hed shall determine and promulgate to members of the Industry the average hourly rates of pay existing on July 15, 1929 and September 1, 1933, for occupations other than those receiving the minimum wage. 4. The minimum rates established in the foregoing provisions shall not apply to apprentices who shall be paid not less than 80% of the minimum rates of pay hereinabove established; provided, how ever, that the number of such apprentices shall not exceed 5% of the total number of employees of any member of the Industry at any one time, and provided further, that the period of apprenticeship of any employee shall not exceed four weeks. 5. The minimum rates of pay provided in the foregoing provision shall not apply to employees who are physically handicapped; provided, however, that such employees shall not be paid at less than 80% of the minimum rates hereinabove established, and provided further, that the total number of such excepted employees shall not exceed five percent of the total number of employees of any member of the Industry at any one time. ARTICLE V-GENERAL LABOR PROVISIONS 1. No person under 16 years of age shall be employed in the Industry, nor anyone under 18 years of age at operations or occupations hazardous in nature or detrimental to health. The Code Authority shall ubmit to the Administrator within 30 days after the a _pproval of this Code by the President a lis t of such occupations. In any State an employer shall be deemed to have complied with this provi ion if he shall have on file a certificate or permit duly issued by the authority in such State empowered to i ssue employment or certificates or permits, showing that the employee is of the reqmr d age. 2. Employees hall ha\e the right to oro-anize and bargain collec tively through repres ntatives of their own choosing and shall be free from the interfercnc , re traint, or coercion of employers of labor, or their agen in the le i!Tllat ion of uch representatives or in se lf-oo-anization or in other cone rted activiti for the purpose of eollectiYe bargaining or other mutual aid or protection. 3. No employ e and no one se king emp loyment shall be required as a condition of empl yment to join any company union or to re-19310----188-51----33--2

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4 frain 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 presc ribed by the President. 5. Within each State this Code shall not supersede any laws of such State imposing more stringent requirements on employers regulating the age of employees, wages, hours of work, or health, fire or general working conditio ns than under this Code . 6. Employers shall not recla ssify employees or duties of occupa tions performed by employees so as to defeat the purposes o:f the Act. 7. Each employer shall post copies of this Code and the Industry wage rates as promulgated by the Code Authority 1n accordance with the provisions of Article 4 hereof conspicuously at the place of employment. ARTICLE VI To effectuate further the policies of the Act1 the Code Authority is hereby constituted to cooperate with the Administrator in the administration of this Code. A. Organization and Constitution of Oode .Authority.-1. The Code Authority shall consist. of the Board of Directors and such additional number of members of the Industry not members o:f the association as may be approved from time to time by the Administrator and as may be elected by fair methods of election to be approved by the Administrator. The Administrator, in his discretion, may appoint not more than three additional members without vote to represent the Administrator or such other groups or interests as may be agreed upon, without expense to the Industry. Such additional members shall serve for terms of from six months to one year, or such other terms as the President may designate, which terms shall be arranged in such a manner that they do not expire at the same time. Such members, together with the Administrator, shall be given notice of and may attend all meetings of the Code Authority. 2. The As s ociation is hereby designated as the agency to conduct such election and as the agency to promote the purposes of this Code. 3. Each trade or industrial association directly or indirectly participating in the selection or activities of the Code Authority shall: (i) Impose no inequitable restrictions on membership, and (ii) Submit to the Administrator true copies of its Articles of As s ociation, By-Laws, regulations, and any amendments when made thereto, together with such other information as to membership, organization, and activities as the Administrator may deem necessary to effectuate the purposes of the Act. 4. 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 hear ings 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 appropnate mod1ficatwn 1n the method of selection of the Code Authority.

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5 B. Powers and Dutie s of the Cod e Autho?'ity.-The Code Author. ity shall have the followino-dutie and powers to the xtent permitted by the Act and subject to the right of the Admini trator on review, to disapprove or modify any a ction taken by the Code Authority pursuant to this Code: 1. The Code Authority shall be the general planning, and administering agency of this Code. It may make rul s and regulations for the administration of this Code. 2. The Code Authority may designate the As ociation or uch other committees or agents and may delegate to the m u c h of its powers and duties as it may deem necessary for the administration of this Code, provided, however, that it shall reserve final res ponsibility with respect to any such delegated powers or duties , and provided further that any statistical information of a confidential character submitted to the Code Authority pursuant to the provisions of this Code, shall be submitted to such impartial agency, not con nected with or obligated to any member of the Industry, as the Code Authority may designate. The Code Authority may designate appropriate governing agencies for districts or divisions of the Industry for the administration of this Code. In such districts or divisions the Code Authority may delegate to such agencies such of its powers and authority as may be necessary for the administration of this Code within such districts or divisions, including the right to submit to the Administrator recommendations for amendments to this Code, applicable only to such districts or divisions within the scope of the powers granted under this Code. 3. The Code Authority shall, upon complaint of interested parties, upon request of the Administrator, or upon its own initiative, make such inquiry and investigation as to the operation and obs e rvance of this Code as may be necessary, and shall report the results thereof to the Administrator. Any complaint concerning an alleged Yiolation of the Code shall be submitted to the Code Authority in writing and by registered mail. The complaint shall contain a complete statement of the facts and shall refer specifically to that part of the Code which is alleged to have been violated. If it shall appear to the Code Authority after investigation that there has been a violation of the Code, a statement of the charges shall be sent by registered mail to the member of the Industry who is alleged to have committed the violation. The statement of charges shall fix the time and place for a hearing, at which the member of the Industry complained of shall be given an opportunity of presenting his defense. The Code Authority shall make recommendations to the Administrator with respect to such violations. 4. In order that the President may be informed of the extent o:f the ob ervance of the provisions of this Code and of the extent to which the declared policy of the National Industrial R e coyery Act is being effectuated in the Industry, the Code Authority shall make such reports as the A lministrator may require, periodically or as often as he may direct; each member of the Industry hall make such sworn or unsworn reports to the Code Authority peri . )dically, or as it may direct, on wages, hours of labor conditions of employ ment, number of employee s , production, shipments, sto c ks, prices, and other matters pertinent to the proYis.ion s of this Code as the

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6 Code Authority may require for the administration of this Code. In addition to the information required to be submitted to the Code Authority, members of the Industry shall furnish to Government agencies su c h statistical information as the Administrator may deem necessary for the purposes recited in Section 3a of the Act. 5. Statistical information required by the Code Authority in accordance with the provisions of this Code shall be furnished to the Code Authority through an impartial agency, as hereinbefore provided. Such information shall be deemed confidential and shall not b e divulged to any member of the Industry except in summary, provided, however, that where summary information in effect di vulges the identity of individual members of the Industry it shall not be revealed to any member of the Industry but shall be made available to the Administrator upon request and may be used to facilitate the administration of thi" Code. 6. In order to insure proper protection for the Industry and for the employees thereof, the Code Authority shall cause to be made such investigations as may be necessary to determine the effect of imports upon the Industry and may make such recommendations with respect thereto to the President for such action by him pursuant to Section 3-e of Title I of the Act as he may deem necessary. 7. The present kiln capacity of the Industry shall be registered by memb ers of the Industry with the Code Authority. The intention to install additional kiln capacity, excepting, however, modernization or repl acement of existing capacity, either by members of the Industry or those intending to en$age in the Industry, shall be reported to the Code Authority. The c:ode Authority shall make such recommendations with re s pect thereto to the Administrator as it may deem de sirable to effectuate the policy of the Act. 8. Any interested party shall have the right to complain to the Code Authority under such rules and regulations as it may prescribe with respect to any rule, regulation, order, or finding made or course of action pursued by the Code Authority, and any interested party shall have the right to appeal to the Administrator under such rules and regulations as he may prescribe in respect to any decision, rule, regulation, or course of action of the Code Authonty pursuant to any provision of this Code. 9. Members of the industry shall be entitled to participate in and share the ben e fit s 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 by either b ecoming a member of the Association or by sustaining their reasonable share of the exp e nses of the administration of this Code. The r eas onable share of the expenses of administration shall be determined by the Code Authority, subject to review by the Administrator and shall be based upon the amount in dollars of net sales an.d/or such other factors as may be deemed equitable. ARTICLE VII Any member of the Industry shall be eligible for membershi-p in the Code. Any member of the Industry desiring to become a member of the Code may do so by signing and delivering to the Code Au

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7 thority a letter substantially in th form et forth 1n Sch dule A annexed hereto. ARTICLE VIII-TRADE PR CTI ES 1. No member of the Industry shall make, allow, or s ll pro lucts of the Industry at a price or di count conditioned on the bas is of combined sales or shipments of glazed tile and unglaz cl tile . 2. No member of the Industry shall make any price di crimination between purcha ers of the same class ; provided, however, that nothing herein shall prohibit a difference in price that makes allow ance nly for difference of grade, kind, or of transportation charg s. 3. No member of the Industry shall give or permit secret rebates, allowances, refunds, credits, subsidies, or unearned di counts, whether in the form of money, material, premiums, advertising, or otherwise, or extend to certain purchasers special service or privileges not extended to all purchasers under like terms and conditions. 4. No member of the Industry shall induce or attempt to induce by any means any party to a contract with a member of the Industry to violate such contract. 5. No member of the Industry shall make or promise to make, either directly or indirectly, to any purchaser or prospective purchaser of any product, or to any officer, employee, agent, or representative of any such purchaser or prospective purchaser, any bribe, gratuity, gift, or other payment or remuneration. 6. No member of the Industry shall defame any competitor by falsely imputing to hin1 dishonorable conduct, inability to perform contracts1 questionable credit standing, or by other false representations or by the false disparagement of the grade or quality of his goods. 7. No member of the Industry shall sell the products of the Industry on consigrunent. 8. No member of the Industry shall imitate trade marks, trade names or designs of a competitor in such a manner as to mislead or deceive customers or prospective customers. 9. No member of the Industry shall publish or circularize 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. 10. No member of the Industry shall withhold from or insert statements on orders or invoice , which makes such record a false or incomplete record, wholly or in part of the transaction or condition represented on the face thereof. 11. No member of the Industry shall guarantee customers or prospective cu tomers against price declines or price advances. 12. No member of the Indu try shall permit any misrepresentation in the sale, offering for sale, bilhng, invoicing, marking, branding or labelling of any product or of containers thereo . f nor permit the issuance of any grade certificate with the intent or with the effect of deceiving customer , architect , competitors, or the public as to quantity, kind, or grad of tile products. 13. No member of the Indus ry shall make or cause to be made lump sum bids or quotations xc pt for specialties of pla tic faience,

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8 cut ceramic, or other specialties of tile for which prices have not been filed with the Code Authority. 14. No member of the Industry shall deliver two or more grades of tile as established pursuant to this Code in the same container. 15. No member of the Industry shall grant open credit in excess of thirty (30) days net after date of shipment, nor in excess of two (2) percent cash discount for :payment of invoice within fifteen (15) days after date thereof, provrded however, that fifteen (15) additional days open credit may be granted upon shipments to points beyond the Rocky Mountains, and provided further that no cash discount shall be deducted from prepaid transportation charges, and provided further that payment of all invoices dated between and including the first and the fifteenth of the month may be accepted net on the fifth of the following month, and invoices dated between and including the sixteenth and thirty-first of the month, may be accepted net on the twentieth of the following month. 16. No member of the Industry shall accept orders for specific jobs until the contract for such specific job has been awarded. Orde rs for specific jobs shall specify the name and location of the specific job on which material is to be used, and the quantity required within a variation of ten percent (10% ). 17. No member of the Industry shall accept stock orders for ship ments after thirty (30) days from the date of the acceptance of such orders except on condition that shipments made after such 30-day p eriod shall be at the price prevailing on such date. 18. No member of the Industry shall make quantity surveys or perform other estimating services without making reasonable spe cific charge therefor, provided however, that nothing herein contained shall prevent any member of the industry from making setting plans or details of quantities for a job requiring special or unusual treatment. ARTICLE IX-PUBLISHED PRICES A. Each member of the Industry shall use an adequate cost accounting system which shall be at least as complete and detailed as the cost-accounting system recommended by the Code Authority and approved by the Administrator as hereinafter provided. The Code Authority shall recommend for use in the Industry a uniform and adequate cost-accounting system which shall be adaptable to the cost-accounting procedure and to the business of the Industry. Such plan shall specify the factors which shall be included in determining the costs of each member of the Industry. Upon approval by the Administrator of such a system of cost accounting for the Industry, complete advice concernrng it shall be distributed by the Code Authority to all members of the Industry. Thereafter each member of the Industry shall file with the Code Authority his costs for each product of the Industry offered for sale by him. Thereafter no member of the Industry shall initiate a selling price below his own cost or sell the products of the industry at such price or upon terms or conditions of sale as will result in the purchaser's paymg for such product less than the cost of that member of the Industry who has filed with the Code Authority the lowest cost; provided,

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9 however, that the Code Authority may approve, .-nhjert to review by the Admini trator the ale of surplu b elow n h o t where necessary to relieve financial em raenci . A lletail d r rd of such surplus stocks shall be filed with and h ck d by n h impartial agency as the Code Authority may d e ig:1ate at th tim o application for such approval. B. Each member of the Industry shall r ublish and fil with the Code Authority within ten days after the effective dat of the ole a price list individually prepared by him of all product offered f r sale or sold by him and all terms and conditions of sa l e r elating thereto. Such price list hall state for each grade and kin l of each product sold or offered for sale one price with appropriate eli cotmts therefrom, if any are allowed, for sales to clas s ifie d type of buyers; provided, however that such discounts shall not exceed fifteen per cent. Such price list and terms and conditions of sale so filed with the Code Authority shall be open to inspection at all r easo nable times by any interested party. Revi sed price lists or revi sed t rms and conditions of sale may be filed from time to time thereafter with the Code Authority by any member of the Industry; provided, however, that such revisions shall be filed with the Code Authority at least ten days in advance of the effective date thereof and pro vided further, that any other memb e r of the Industry may file re visions of his price list or terms and conditions of sale to me e t the revisions first filed which may become effective on the date when the revised price list or revised terms and conditions of sale first filed shall become effective. C. No member of the Industry shall sell or offer for sale any product of the Industry at prices lower than the prices note d in its price list, or on more favorable terms and conditions of sale, than the terms and conditions of sale previously filed by such member with the Code Authority in accordance with the provision s of S e ction B of this Article and in effect at the time of such sale. D. A member of the Industry may file with the Code Authority a price to apply between member s of the Industry or other manufacturers us1ng tile as a part of other manufactured articles. ARTICLE X-CLASSIFICATION AND STANDARDIZATION OF TILE A. All tiles sold or shipped by any member of the Industry shall be branded either Standards or Seconds in accordance with the minimum grade specifications of Simplified Practice R e comm endation R-61-30 as issued by the United States Department of Com merce or as may hereafter be established as standards for the Industry and approved by the Admini trator. Such brands hall be indicated plainly and conspicuou ly on each container in such manner as shall be approved by the Code Authority. B. The Code Authority may recommend from time to time a classification of the various types of tiles manufactured, and upon the approval of the majority of the members of the Cole and of the Administrator, after such hearing as he may 1 re cribe, such classification shall be established a the practice of the Industry and no member of the Indu try hall ell or offer for sale products for which such classifications have been e tablished except in accord-

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10 ance with such classifications. The provisiOns of this Section B shall not apply to unglazed quarry tile. C. No member of the Industry shall sell second-grade tile in an amount in excess of thirty-five percent of the total square footage of glazed tile sold by him, nor in excess of fifteen percent of the total square footage of unglazed tile sold by him, or such other reasonable fercentage as may hereafter be decided upon by a majority o the Industry, and approved by the Administrator, from time to time; provided, however, that the Administrator on petition and after such hearing as he may 1?rescribe may modify the percentages herein established; and provided further that any member of the Code may participate in the provisions of Section D hereinafter set forth. The provisions of this Section C shall not apply to unglazed quarry tile. D. (1) Any member of the Code may exceed the l?ercentages specified pursuant to Section C of this Article on conditwn that he shall pay to the Treasurer of the Code Authority, as trustee of the Tile Industry Fund, as liquidated damages 20 per cent of the total sales value of the second-grade tiles sold by him in excess of the percentages established pursuant to the aforesaid Section C of this Article. (2) The liquidated damages referred to in the foregoing subsection shall be based upon the average percentage of seconds sold by any member of the Code in excess of the percentages established pursuant to Section C of this Article sold for the current calendar year or part thereof after the effective date of this Code. Each member of the Code shall send to the agency designated by the Code Authority a monthly statement stating thereon his square foot age over or under the allowed percentage of second-grade tiles for the current month, and the Code Authority or such agency as it may designate shall send to each member of the Code a monthly statement stating thereon his square footage over or under the allowed percentage of second-grade tile cumulative to date for the current year and the liquidated damages, if any, due thereon. Each member of the Code shall within 30 days after receipt of such statement pay to the Treasurer of the Code Authortiy as trustee of the Tile Industry Fund any liquidated damages due in accordance with such statement or the provisions of this Code. (3) No member of the Code shall be required to pay liquidated damages due for any current month if sufficient credit has accrued to his account for sales under the allowed percentage during any previous months. ( 4) Any member of the Code who in earlier months of any current year shall have paid liquidated damages which subsequently are off set by a credit due him for the percentage of second-grade tiles sub sequently sold below the percentage established pursuant to Sec tion C of this Article, shall ha Ye refunded to him on June 30 and December 31 of each year, or as soon thereafter as possible, such excess liquidated damages as he shall have paid. ( 5) All sums due as liquidated damages in accordance with the provisions of this Section D of this Article shall be paid into a separate fund to be known as the Tile Industry Fund. The Treasurer of the Code Authority as an individual shall be the trustee of the

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11 Tile Indu try Fund and as such shall place payments for liquidated damages recei ed to the credit of such fund and make disburs&ment ther from in accordance with the provisions of this Article, This Fund shall be maintained as a separate fund from any general fund which the Code Authority may establish or maintain. Dis bur ement from aid fund may be made from time to time in such manner and for su h purposes as the majority of the members of the Code hall determine i provided, however, that at all times a sufficient fun shall be maintamed in the said Tile Industry Fund to refund any liquidated damages which may have been paid into the afore. said fund and which sub equently may become due for refund to member of the Code, in accordance with the provisions of subsection ( 4) of this Section D. ( 6) The provisions of this Section D may be terminated upon a majority vote of the members of the Code. E. Offshade Tiles which are so widely different in shade that they annot be u ed to fill an order for Standard Grade Tiles of the particular color such Offshade Tiles were intended to reproduce, shall be old at the manufacturer's published price for Second Grade Tiles and shall be calculated as Second Grade Tiles subject to the provisions of Sections " C " and " D " of this Article. ARTICLE XI-SAMPLES No member of the Industry shall furnis h samples :free of charge, except for a specific job, in excess of two square feet of any one color or pattern, excepting, however, Quarry Tiles. Unmounted samples furni hed for display purposes in a showroom, architectural, home owners' or builders' exhibit, in exce s s of two square feet of any one color or pattern, shall be charged for at the current published prices l ess a discount not exceeding 50% . Tile furnished on mounted samples in ex c ess of two square feet of any one color or pattern shall be charged for at the current published prices, but the manufacturer may bear the cost of mounting s uch samples and furnishing metal angle iron surrounding the panel or such other bracing as is u ed, crating and the crate cost. ARTICLE XII-DISTRIBUTION A. No member of the Industry shall grant discounts from hi pub lish ed net prices as filed with the Code Authority, except that a discount of not over fifteen percent may be given to merchant tile con tractor or to wholesalers. B. For the purpo es of this Article a merchant tile contra tor hall be defi ed as a concern which: ( 1) Specializes in the in tallation of, but does not engag in the sale of un t tile, bathroom accessories, or other ace sorie Yhicl are a part of the tiled area; (2) l\faintains an adequate howroom and pla e of bu. in . op n to the public during usual bu ines hour , which h wroom, if a part of a re idence, has an entran e separate from any re idential entrance and contain at lea t two hundred ancl fifty (250) squar fe t of floor space ancl is equipped with uitable furniture an quipment in ke •p ing with a busine ss office and showroom ;

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I ' 12 (3) :Maintains display facilities and display cabinets ade quate and suitable to its business. ( 4) Who shall have purchased two thousand dollars ($2 , 000) worth of tile, bathroom accessories, or other accessories which are a part of the tiled area during the past six semiannual periods, or if in business less than the six semiannual periods, then an average of two thousand dollars ($2 ,000) worth of tile, bathroom accessories or other accessories which are part of the til ed area for such six-month periods or any portion thereof as he has been in the tile contracting business. Purchases as set forth in this sectio n shall be construed to mean the total amount billed for products delivered during the semiannual calendar period or any portion thereof and is not inte nded to mean the value or amount of orders placed. C. For the purposes of this Article, a wholesaler shall oo defined as a concern which: ( 1) Specializes in the sale but does not engage in the installation of tile, bathroom accessories, marble sills, and other accessories which are a part of the tiled area ; (2) Maintains a warehouse of adequate size and type suitable for its business; (3) Maintains at ea c h warehouse display facilities or display cabinets adequate and suitable for the nature of its business; ( 4) Maintains an average stock of thirty-five thousand (35,000) square feet of tile at each warehouse. D. The Administrator, either on his own initiative or on :petition, and after such hearing as he may prescribe, may modify (or may approve the recommendations of a majority of the Industry for the modification of) the provisions of Sections B and C of this Article. E. Each member of the Industry shall submit to the Code Authority a list of persons, firms, or corporations whom such member of the Industry has classifi ed as wholesalers and Merchant Tile Con tractors. The Code Authority shall investigate such persons, firms, or corporations and re:port to members of the Industry whether, in its opinion, subject to review by the Administrator, such persons, firms, or corporations are entitled to qualify as w holesalers or Merchant Tile Contractors as hereinabove defined. No member of the Industry shall thereafter grant wholesaler s' or merchant tile contractors discounts to persons, firm s, or corporations who have been determined in the manner herein set forth to have failed to qualify as wholesalers or Merchant Tile Contractors. ARTICLE XIII-GENERAL PROVISIONS A. Any notice, demand, or request required or permitted to be given to or made u.I?on any member of the Industry shall be suffi ciently given if mailed, postage prepaid-?. addressed to such of the Industr_:y at the address of such JYiember of the Industry on file with the Code Authority. A waiver in writing signed by any Member of the Industry of any such notice, demand, or request and delivered to the Code Authority shall be deemed to be the equivalen t of a notice, demand, or request duly given or made, whethe r or not such waiver was signed and delivered before the time when such no tice, demand, or request was required or permitted to be given or made.

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13 B. Nothing contained in this Code shall be deemed to constitute the members of the Industry or members of the Code partners for any purpose. No member of the Industry and no member of the Code shall be liable in any _manner to any one for any act of any other member of the Code or member of the Industry or for any act of the Code Authority or any or employee thereof pursuant to this Code. No member ot the Code Authority and no agent or employee thereof shall be liable to any one for any action or omission to act under this Code except for his wilful misfeasance, nonfeasance or dishonesty. Nothing contained in this Code shall be de emed to confer upon any one other than a member of the Code any right, claim, or demand whatsoever not expressly provided by statute against any member of the Code or against a n y member of the Code Authority or any agent or employee the reof. C. As soon as a majority composed of seventy -fi ve percen t of the members of the Industry as embled in person o r by proxy at any meeting which has been called by a reasonable prior notice shall sign and deliver to the Code Authority a letter in substantially the form forth in Schedule A annexed hereto, this Code shall constitute a binding contract by and among the manufacturers who ha' e signed the Code subject, however, to amendment as herein provided. D. Nothing contained in this Code, excepting, however, Articles II, III, IV, and V of this Code shall be deemed to apply to or affect the sale of any product of the Industry for direct shipment in export trade within the meaning of the term "export trade", as it is used in the Export Trade Act, or unless and to the extent that the Code Authority shall otherwise determine, subject to review by the Administrator, to the sale of any product of the Industry for direct shipment to the Philippines, Hawaii, or Porto Rico, or other insular posses sion s of the United States of America. ARTICLE XIV-MONOPOLIES No provision of this Code shall be so construed or administered as to pern1it or promote monopo lies or monopolistic practices or to eliminate, oppress, or discriminate against small enterprises. ARTICLE XV-MonmoATION A. This Code and all the provisions thereof are expressly made subject to the right of the President, in accordance with the pro visions of subsection B of Section 10 of the Act, from time to time to cancel or modify any order, approval, license, rule, or regulation issued under Title I of said Act and specifically, but without limitation, to the right of the President to cance l or modify his approval of any provision of this Code or of any condition imposed by him upon his approval thereof. B. Any decision, rule, regulation, order, or finding made or course of action f o llowed, pursuant to this Code, may be canceled or modi fied by the Administrator whenever he shall determine uch action by him to be necessary to effectuate the pro i ions of Title I of the Act.

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14 C. 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 of hearing as he shall specify, and to become effec tive on the approval of the President. ARTICLE XVI-EFFECTIVE DATE This Code shall become effective on the second Monday after its approval by the President.

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SCHEDULE A FoRM OF LETrER oF AssENT TO THE Comll To THE CODE AUTHORITY, THE TILE l\lANUF CTURING IND"U STRY, 19 West 44th Street, New York, New York. DEAR Sm: The under igned, desiring to become a signatory of the Code of Fair ompetition of the Floor and Wall Clay Tile Manufacturing Industry, a copy of which is annexed hereto marked Annex A hereby assents to all of the provi ions of said Code (hereinafter referred to as the Code), and effective as of the date on which the Code shall have been approved by the Pre 1-dent of the United States of America as therein provided, or as of the date on which this letter shall have be n delivered, if delivery thereof shall have been made subsequent to the date on which the Code shall have been approved by aid President as afore. aid, by the signing and deli,Tery of this letter becomes a member of the Code; and effective as afore aid hereby agr es with every person, firm, a sociation, and corporation who hall then be or thereafter become a member of the Code that the Code shall constitute a valid and binding contract between the undersigned and all uch other member , for a period which shall terminate on October 1, 1934, or at such time prior thereto as the National Indu trial Recovery Act passed June 16, 1933, is terminated. The foregoing time of termination is subject to the right of the undersigned to extend such time if agreeable to other signatories of the Code. For a ll purpo es of Section A of Article XIII of the Code the address of the unde rsigned, until it shall file with the Code Authority written notice of a change of such address, shall be as set forth at the foot of this letter. Your very truly, ------, President. (15) 0 r

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