Citation
Supplementary code of fair competition for the resilient flooring contracting industry (a division of the construction industry) as approved on May 29, 1934

Material Information

Title:
Supplementary code of fair competition for the resilient flooring contracting industry (a division of the construction industry) as approved on May 29, 1934
Portion of title:
Resilient flooring contracting industry
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C
Publisher:
United States Government Printing Office
Publication Date:
Language:
English
Physical Description:
14 p. : ; 24 cm.

Subjects

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

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1020-02."
General Note:
"Approved Code No. 244--Supplement No. 10."

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:
005049852 ( ALEPH )
63655025 ( OCLC )

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Full Text





NATIONAL RECOVERY ADMINISTRATION




SUPPLEMENTARY

CODE OF FAIR COMPETITION

FOR THE


RESILIENT FLOORING

.*.. CONTRACTING INDUSTRY

(A Division of the Construction Industry)

AS APPROVED ON MAY 29, 1934

















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This publication is for sale by the Superintendent of Documents, Government..
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign '
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE

Atlanta, Ga.: 504 Post Office Building. 'I
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street. :L :
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber'of Commerce Building.., i
Detroit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chqmber of Commerce Building.
Jacksonville, Fla.: Chimber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Fedpral 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.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building. i
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building. :


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Approved Code No. 244-Supplement No. 10


SUPPLEMENTARY CODE OF FAIR COMPETITION
FOR THE
RESILIENT FLOORING CONTRACTING INDUSTRY

As Approved on May 29, 1934


ORDER

i:.. APPoviNG CODE OF FAIR COMPETITION FOR THE RESILIENT FLOORING
i CONTRACTING INDUSTRY, A DIVISION OF THE CONSTRUCTION INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
S Recovery Act, approved June 16, 1933, and pursuant to and in full
I compliance with the provisions of Section 5 of Article VIII of
Chapter I of the Code of Fair Competition for the Construction
Industry, approved January 31, 1934, for approval of Chapter XIII
of said Code, which Chapter XIII is applicable to the Resilient
Flooring Contracting Division of the Construction Industry, and
hearings have been held thereon and the annexed report on said Code,
containing findings with respect thereto, having been made and
directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
SPresident, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate by reference said
' annexed report and do find that said Chapter complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Chap-
ter XIII be and it is hereby approved and that the previous approval
of said Code of Fair Competition for the Construction Industry
is hereby modified to include an approval of said Code in its en-
tirety as supplemented by said Chapter XIII, providing, however
that the following sentence be and it is hereby inserted at the end
of Rule I of Article V:
"It shall be a defense to any charge of violation of this Rule if
the party charged shall satisfy the Administrator that his bid was
not less than the reasonable estimate of said costs of any other mem-
ber of the industry."
HUGH S. JOHNsoN,
Administrator for Industrial Recovery.
Approval recommended:
GEo. L. BERRY,
Division Administrator.
WASHINGTON, D.C.,
May 9, 1934.
64006---67-----34 (1




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REPORT TO THE PRESIDENT .

The PRESIDENT,
The White House.
SIR: This is a report on the Resilient Flooring Contracting Chapter
of the Code of Fair Competition for the Construction Industry which
is described as Chapter I and which was approved by you on January
31, 1934.
This Chapter is a revision after a public hearing conducted ''i
Washington on March 16, 1934, in accordance with the provisions 6f
the National Industrial Recovery act. This Chapter amplifies Chap-
.ter I, but applies specifically to the Resilient Flooring Contracting
Division of the Construction Industry.

PROVISIONS FOR HOURS AND WAGES

With very minor exceptions the hours and wages set forth in
Chapter I of the Construction Code as approved by you on January
31, 1934 are applicable to this Code.

ECONOMIC EFFECT OF THE CODE

Estimates made by the Division of Research and Planning indicate
that the volume of business decreased from approximately $217,- ,
000,000 in 1929 to $42,000,000 in 1933, a decrease of about eighty :
per cent.
It is reasonable to predict that the establishment of uniform rates
of pay, uniform hours of work, improved conditions of employment
and the prohibition of unfair trade practices will be beneficial to all
of this Industry, as well as to the employees and the consumer.

FINDINGS

The Deputy Administrator in his final report to me on said :
Resilient Flooring Contracting Chapter of the Code of Fair Compe-
tition for the Construction Industry, having found as herein set forth
and on the basis of all the proceedings in this matter;
I find that:
(a) Said Resilient Flooring Contracting Chapter and said Code
of Fair Competition for the Construction Industry, as supplemented
by said Resilient Flooring Contracting Chapter, are well designed to
promote the policies and purposes of Title I of the National Indus-
trial Recovery Act, including removal of obstructions to the free
flow of interstate and foreign commerce which tend to diminish the
amount thereof and will provide for the general welfare by promot-
ing the organization of industry for the purpose of cooperative ac-






3

tion among the trade groups, by inducing and maintaining united
action of labor and management under adequate governmental sanc-
tions and supervision, by eliminating unfair competitive practices,
by promoting the fullest possible utilization of the present productive
capacity of industries, by avoiding undue restriction of production
(except as may be temporarily required), by increasing the consump-
tion of industrial and agricultural products through increasing pur-
chasing power, by reducing and relieving unemployment, by im-
proving standards of labor, and by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c) Said Resilient Flooring Contracting Chapter and the Code
of Fair Competition for the Construction Industry, as supplemented
by said Resilient Flooring Contracting Chapter, as approved comply
in all respects with the pertinent provisions of said Title of said Act,
including without limitation Subsection (a) of Section 3, Subsection
(a) of Section 7, and Subsection (b) of Section 10 thereof; and that
the applicant association is an industrial association truly represent-
ative of the aforesaid Industry; and that said Association imposes no
inequitable restrictions on admission to membership therein.
(d) Said Resilient Flooring Contracting Chapter and the Code of
Fair Competition for the Construction Industry, as supplemented by
said Resilient Flooring Contracting Chapter are not designed to and
will not permit monopolies or monopolistic practices.
(e) Said Resilient Flooring Contracting Chapter and the Code
of Fair Competition for the Construction Industry, as supplemented
by said Resilient Flooring Contracting Chapter, are not designed to
and will not eliminate or oppress small enterprises and will not
operate to discriminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said
Resilient Flooring Contracting Chapter and of said Code, as supple-
mented by this Resilient Flooring Contracting Chapter thereof.
For these reasons, therefore, I have approved said Resilient Floor-
ing Contracting Chapter of the Code of Fair Competition of the
Construction Industry.
Respectfully,
HUGH S. JOHNSON,
Administrator.
MAY 29, 1934.










CHAPTER XIII
CODE OF FAIR COMPETITION FOR THE RESILIENT
FLOORING CONTRACTING DIVISION OF THE CON-
STRUCTION INDUSTRY
ARTICLE I-RFERENCE TO PROVISIONS OF CHAPTER I
The provisions of Sections 7 (a) and 10 (b) of the Act, which
are set forth in Sections 1 and 6, respectively, of Article VIII of
Chapter I of this Code, are specifically incorporated herein by
reference with the same force and effect as if set forth herein in full;
all other provisions of Chapter I of this Code, including modifica-
tions or amendments thereto, except as herein provided, apply within
this Division with the same force and effect as if set forth herein
in full.
ARnicLE II-DEFINrTIONs
SECTION 1. The term "Resilient Flooring Contracting Division"
or this Division" as used herein shall mean the business of fur-
nishing and installing, or the installing, for compensation, of all
types of resilient preformed flooring materials in use at the present
time and such other materials, of similar character, as may bede-
veloped in the future, but shall not include the furnishing and in'-
stalling, for compensation, of resilient flooring materials ordinarily
sold at retail by members of the Retail Trade, when sold for home
purposes at established prices, but shall include such portion of re-
silient flooring materials as may be furnished and installed by mem-
bers of the Retail Trade on a competitive bidding basis.
Nothing in the definition of this Division shall in any way be con-
strued as affecting the classification of labor employed under this
Chapter of this Code.
SEC. 2. The term "Resilient Flooring." is used to describe vari-
ous types of preformed materials employed as a finished floor sur-
face. These materials include linoleum, cork tile, rubber tile, cork
composition tile, asphalt tile, sheet rubber flooring, carpets and other
materials of similar character.
SEC. 3. The terms Resilient Flooring Contractor or Member
of this Division as used in this Chapter shall mean, but without
limitation, any individual, partnership, firm, corporation, associa-
tion or other form of enterprise engaged in work within this Division.
SEC. 4. The term "Association as used herein means the Na-
tional Resilient Flooring Association."
ARTICLE III-HouRS, WAGES AND CONDITIONS OF EMPLOYMENT
SEC. 1. Hours.-No employee shall be permitted to work in excess
of forty (40) hours in any one week or eight (8) hours in any one
day, except that the provisions of this Section shall not apply to:
(4)



1








(a) Outside salesmen.
(b) Employees engaged in an executive, administrative or super-
visory capacity, receiving in excess of thirty-five ($35.00) dollars
per week. Supervisory employees are defined as those who perform
no manual labor.
- (c) Employees engaged in emergency work upon breakdowns or
for the protection of life or property, who shall be paid at least one
and one-half (11) times the normal rate for all hours worked in
excess of forty (40) hours per week or eight (8) hours per day or
six (6) days per week.
(d) Watchmen who shall not be permitted to work in excess of
fifty-six (56) hours in any one week nor six (6) days in any week.
. SEC. 2. Number of days--No employee shall be permitted to work
in excess of six (6) days in any seven (7) day period.
SEC. 3. Evasion through reemployment.-No employee now em-
ployed at a rate in excess of the minimum herein established shall
be discharged and reemployed at a lower rate for the purpose of
evading the provisions of this Code.
SEC. 4. Transportation.-Members of this Division shall make
payment of all legitimate expenses incident to transportation, board
and room incurred by an employee while traveling to and from the
site of regular employment, when such site is outside of a recog-
nized working area.
SEc. 5. Contracting Labor.-No member of this Division shall
(whether by the practice known as Lumping of labor or other-
wise) sublet to any journeyman or other employee the labor services
required by any contractor for work within this Division.
SEc. 6. Members performing work.-Members of this Division
who personally perform manual work or are engaged in mechanical
operations shall not exceed the maxima as to hours and days pre-
scribed herein for the work performed by them.
SEc. 7. Complaint.-No employee shall be dismissed for making
a complaint or giving evidence with respect to an alleged violation
of this Code.
SEC. 8. Posting.-All members of this Division shall post and
keep posted in conspicuous places readily accessible to all employees
in their respective shops and other established places of business
complete copies of Chapter I, General Provisions for the Construc-
tion Industry, and of this Chapter of this Code, together with the
name and address of the nearest official place where Code violations
may be reported.
SEc. 9. Standards for safety and health.-Each member of this
Division shall provide for the safety and health of his employees at
the place and during the hours of their employment. Standards for
safety and health shall be submitted by the Divisional Code Author-
ity to the Administrator within six (6) months after the effective
date of this Chapter. After approval, such standards shall become
the minimum standards of safety and health for all members of this
Division.
SEC. 10. Payment of woages.-All members of this Division shall
make payment of all wages due in lawful currency or by negotiable
check therefore, payable on demand at par. If wages are paid by








check, the employer shall provide reasonably accessible facilities for -."
cashing such checks at face value without expense to the employee.
Employers shall also provide such identification as is necessary to
utilize such facilities.ii
Wages shall be payable at the end of each weekly period and shall
be exempt from any payment or deduction for pensions, insurance
or sick benefits other than those voluntarily paid or authorized to be
deducted by employees. Employers or their agents shall not accept,
directly or indirectly, rebates on such wages or give anything of
value nor extend any favors to any person for the purpose o influenc-
ing rates of wages or working conditions of their employees.
The provisions of this Section regarding payment of wages at the
end of each weekly period shall not apply to persons employed in
an executive, administrative or supervisory capacity who earn in
excess of thirty-five dollars ($35.00) per week, nor to persons em-
ployed in clerical or office work. The wages for persons employed,
in clerical or office work shall be payable at least semi-monthly.
SEC. 11. Handicapped persons.-A person whose earning capacity
is limited because of age, physical or mental handicap or other in-
firmity may be employed on light work at a wage below the mini-
mum established by this Code if the employer obtains from the
State Authority designated by the United States Department of.
Labor a certificate authorizing his employment at such wages and
for such hours as shall be stated in the certificate. Such Authority
shall be guided by the instructions of the United States Department
of Labor in issuing certificates to such persons. Each employer.
shall file monthly with the Divisional Code Authority a list of all
such persons employed by him, showing the wages paid to, and
the maximum hours of work for, all such persons.
ARTICLE IV-ORGANIZATION, POWERS AND DUTIES OF THE DIIIONAL
CODn AUTHORITY
SECTION 1. A Divisional Code Authority is hereby constituted
to administer this Code within this Division.
SEO. 2. The Divisional Code Authority shall consist of seven (7)
members all of whom shall have assented to this Code, to be selected
as follows:
(a) Members of the Association shall elect five (5) members of
the Divisional Code Authority from members of the Association
by majority vote of the said members to serve for a term of one year
or until their successors are elected. The Association is hereby
designated as the agency to conduct the initial election of the Asso-
ciation members of the Divisional Code Authority within thirty
(30) days after the effective date of this Chapter and any other T::
elections of Association members of the Divisional Code Authority i
which may thereafter be held. Notice of the time and place of
regular elections shall be sent to all members of the Association and
to the Administrator at least forty (40) days in advance of such
election, except that the initial election above referred to may be
held on ten (10) days' notice. Voting at all elections may be in
person, or by proxy or letter ballot and each member of the Asso-,
ciation shall be entitled to one vote for each membership to be filled


.1








I the event of any vacancy in the Association membership of the
iDivisional Code Authority, a special meeting of the members of
*, the:Association shall be called to elect a member of the Divisional
Code: Authority to serve for the unexpired portion of the term of
the member of the Divisional Code Authority whom he is succeed-
It ing,. Such election shall be called within twenty (20) days after such
vacancy occurs.
(b) The Administrator shall appoint two (2) members of the
Divisional Code Authority from and to represent the members of
this Division who are not members of the Association to serve for
a term of one (1) year. At such time, or should a vacancy occur
in.. the non-member representation of the Divisional Code Authority,
the members of this Division who are not members of the Associa-
tion may select their own members of the Divisional Code Authority,
wi: which successors and the method of their selection shall be approved
by the Administrator. If the members of the Division who are not
Members of the Association do not select such successors, as above
provided, the Administrator shall appoint them. Any member of
theaDivisional Code Authority selected from and to represent mem-
S bers of this Division who are not members of the Association shall
S automatically disqualify himself from further holding such office by
Joining the Association, and his membership in the Divisional Code
Authority shall therefore become vacant.
Sc- Sc: 3. The Administration members, the Construction Code Au-
thority and the Administrator shall be given at least five (5) days'
notice of and may sit at all meetings of the Divisional Code
Authority.
S SEC. 4. Each Trade or Industrial Association directly or indi-
K actly participating in the selection or activities of the Divisional
SCode Authority shall impose no inequitable restrictions on
membership.
SmE. 5. It being found necessary, in order to support the admin-
istration of this Chapter and to maintain the standards of fair
competition established by this Code and to effectuate the policy
of. the Act, the Divisional Code Authority is authorized, subject to
the approval of the Administrator:
(a) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes and to meet such obligations out
of funds which may be raised as hereinafter provided and which
shall be held in trust for the purposes of the Chapter.
(b) To submit to the Administrator for his approval, subject to
aumh notice and opportunity to be heard as he may deem necessary,
(1) an itemized budget of its estimated expenses for the foregoing
purposes, and (2) an equitable basis upon which the funds necessary
to support such budget shall be contributed by members of this
Division.
(c) After such budget and basis of contribution have been ap-
proved by the Administrator, to determine and secure equitable con-
tributions as above set forth by all such members of this Division,
and to that end, if necessary, to institute legal proceedings therefore
in its own name.
Seo. & Only members of this Division complying with this Code
and contributing to the expenses of the administration of this Chap-

1K
... i :: .







ter as provided in Section 5 of this Article shall be entitled t-'.s i&
ticipate in the selection of the members of the Divisional IOdsletIA g
thority or to receive the benefit of its voluntary activities or to rlinr.MA
use of any emblem or insignia of the National Recovery Admifirt
tration.
SEC. 7. Powers and Duties. Subject to such rules and regulation
as may be issued by the Administrator, the Divisional Code Author: |.
ity shall have the powers and duties as are conferred by Subdivi-:,;3I
sion (b) of Article IV of Chapter I of this Code and also shall have":!
the following powers and duties:
(a) To establish, with the approval of the Administrator after ::li
such notice and hearing as he may prescribe, a standard contract ::
form for use within this Division, which shall be used by all merm-' I
bers.
(b) To cooperate with the Administrator in regulating the use of
any N. R. A. insignia solely by those members of this Division who
have assented to, and are complying with, this Code. :
(c) To recommend to the Administrator further fair trade prae-:
tice provisions to govern members of the Division in their relations
with each other or with other industries and to recommend to their
Administrator measures for industrial planning, including stabiliza- :
tion of employment.
(d) To establish, with the approval of the Administrator after-
such notice and hearing as he may prescribe, Standards of Per-
formance for use within this Division.
(e) To appoint appropriate agencies for the administration of this
Code in each Regional Division or Subdivision of the Association,
as outlined in Exhibit "A" attached hereto, and to delegate to said
agencies all necessary power and authority for the administration of
this Code within the Regional Divisions of Subdivisions, including
the adoption of divisional and subdivisional rules and regulations not.
inconsistent with this Code and subject to the approval of the Ad-
ministrator provided that nothing herein shall relieve the Code Auw-
thority of its duties or responsibilities under this Code and that such
Association and agencies shall at all times be subject to and comply:
with the provisions hereof.
(f) To revise, on the basis of experience and with the approval of i
the Administrator, the Regional Divisions to effectuate the adminis. |,
tration of this Code.
(g) To cause to be formulated an accounting system and methods .
of cost finding and/or estimating capable of use by all members of .!
this Division. After such system and methods have been formulated :
by the Divisional Code Authority and approved by the Adminise ,i!
trator, full details and instructions concerning them shall be madi|
available to all members. Thereafter all members shall determine 'i1
and/or estimate costs in accordance with the principles of sacif
methods.
(h) To appoint a trade practice committee which shall meet w"it :i
the trade practice committees appointed under such other codes a ;
may be related to the industry for the purpose of formulating fai:i.l
trade practices to govern the relationships between employers undla ':i
this Chapter and employers under such other codes, to the end .that.
** : S-'M .-







4":! fair trade practices may be proposed to the Administrator as
: amendments to this Chapter and such other Codes.
S0'(i) In compliance with the provisions of Section 1 of Subdivision
P: Aof Article IV of Chapter I, to select one of its members as a mem-
ber of the Construction Code Authority. Such member shall be
Selected for a term of one (1) year, or until his successor shall have
Seen elected and qualified. The election shall be held annually upon
proper notice to every member of the Divisional Code Authority,
:.i d each of such members shall be entitled to one vote. In order
i or any candidate to be elected six (6) of the seven (7) members
f the Divisional Code Authority shall have voted for his election.
'ARTICLE V-TRADE PRACTICE RULES

H 4mwera: l detnition.-For all purposes of this Code the acts de-
iaribed in this Article shall constitute unfair practices. Any member
Sef this Division who shall directly or indirectly through an officer,
ea~ri ployee, agent or representative use, employ or permit to be em-
I loyed, such unfair practices shall be guilty of a violation of the

BI Ru 1. Bidding below cost.-No member of this Division shall
~abmit bids on goods or services at a price which is below the reason-
ible-estimate of the sum of the following items of cost:
1. Materials.
: 2. Labor.
8. Job Expense.
S :i-: 4. General Overhead.
S..The. labor item of cost shall include, in respect to labor services
or operations performed by any individual member of this Division,
or any combination or association of such individual members, a
Charge computed at not less than the minimum rate of wage estab-
Iished in or pursuant to this Code as applicable to the performance
S of such services or operations by employees.
ii Job expense shall include all costs which can properly be charged
directly to individual jobs such as transportation and delivery of
Materials, men and equipment; compensation and public liability
ii nurance; code administration expenses chargeable to the job; and
an appropriate allowance for the depreciation of equipment used
I directly on the job.
G generall overhead.-Within ninety (90) days after its recognition,
i the Divisional Code Authority shall determine the lowest reasonable
Percentage of overhead costs during the period from 1927 to 1932,
'which percentage, after approval by the Administrator, shall be
msed in the formula specified above. It shall not include profit,
accounting losses, selling and administration expense, depreciation
on unused equipment, any return on invested capital, or interest
on borrowed money. Until such time as this percentage of overhead
bi determined, it shall be assumed at ten per cent (10%) of labor,
material and job expense.1
SAdd fbLoviowo entrance: "It shall be a defense to any charge of violation of this
~ile it the party ebarRea shall eatisf the Afministrator that his bid was not less than
the reasonable estimate of aay other member of the Industry." (See par. A of order
approving this Code.)







RULE 2. Collusion.-Section 9 of. Article VII of Chapter1 0t
this Code is specifically incorporated by reference with the same
force and effect as if set forth in full, in this Chapter, and nothing
contained in this Chapter shall nullify, change, or affect the appli-
cation of said section to this Division. v,
RUiL 3. Drops.-No member of this Division shall sell merchan-
dise of the classification known as drops" without designating
them as such. "Drops" are hereby designated as those materials
purchased as such from the manufacturer or discontinued by the
manufacturer while in the stock of any member or any stock held
by the dealer for a period of more than eight (8) months. Drops "
may be sold at a price below the member's individual cost estimated
in accordance with Rule I of this Article and Section 7 (g) of Article
IV.
RULE 4. Regional installations.-No member of this Division Jo-
cated in a specific region shall sell, supply or furnish any installation
of resilient flooring in any other region without complying in every
respect with the provisions governing that region as provided by the
Divisional Code Authority and approved by the Administrator,.
RULE 5. Terms of payment.-No member of this Division shall
sell on terms of payment other than the following:
(a) For all work terms of payment shall be net cash in full
within thirty (30) days after date of completion, except work as
described in the following paragraphs (b) and (c) of this Rule.
(b) On general contract work the terms of payment shall conform
to the terms of payment incorporated in the general contract.
(c) Whenever work is performed on a deferred payment basis
the actual cost of financing shall be added to the regular selling
price and paid for by tfe iurchaser.
RULE 6. Secret rebates.--Wmember of this Division shall secretly
offer or make any payment or allowance of a rebate, refund, com-
mission credit, unearned discount, or excess allowance, whether in
the form of money or otherwise, nor shall a member of this Division
offer or extend to any customer any special service or privilege
not extended to all customers of the same class, for the purpose of
influencing a sale.
RULE 7. False marking or branding.-(a) No member of this Di-
vision shall falsely mark or brand any product of this Division
which has the tendency to mislead or deceive customers or pros-
pective customers, with respect to the grade, quality, quantity, sub-
stance, character, nature, origin, size, finish, or preparation of any
product of this Division.
(b) No member of this Division shall furnish merchandise pur-
chased as "seconds or mill remnants without specifically desig-
nating them as such at the time of the sale and on the invoice when
rendered.
(c) No member of this Division shall remove or obliterate any
mark on the merchandise placed thereon by the manufacturer which
brands said merchandise as "seconds or "imperfect ".
RULE 8. False or misleading statements.-No member of this Di-
vision shall make false or misleading statements preventing the fair
and impartial administration of this Chapter.







BWtau 9. Inaccurate advertising.-No member of this Division shall
publish advertising (whether printed, radio, display or of any other
nature), which is misleading or inaccurate in any material particular,
noi shall any member in any way misrepresent any goods (including
but without limitation its use, trade-mark, grade, quality, quantity,
Sorigin, size, substance, character, nature, finish, material, content or
preparation) or credit terms values, policies, services, or the nature
or form of the business conducted.
SRmu 10. Inaccurate references to competitors.-No member of this
Division shall publish advertising which refers inaccurately in any
material particular to any competitors or their goods, prices, values,
credit terms, policies or services.
RuLE 11. Defaming competitors.-No member of this Division
shall defame or disparage competitors by falsely imputing to them
dishonorable conduct, inability to perform contracts, questionable
credit standing, or by other false representations, having the tendency
to mislead or deceive customers or prospective customers.
RuiL 12. Breach of contract.-No member of this Division shall
induce or attempt to induce the breach of an existing contract be-
tween a competitor and his customer or source of supply; nor shall
any member maliciously interfere with or obstruct the performance
of any such contractual duties or services.
Rmut 13. Standards of performance.-No member of this Division
shall knowingly violate the Standards of Performance as set and
fixed by the Divisional Code Authority after such standards have
been approved by the Administrator.
RULE 14. Fictitious qu.antities.-No member of this Division shall
biseanhy quantity which he knows to be incorrect, in determining the
cost of any job.
Rurm 15. Grouping of jobs.-No member of this Division shall
group together two or more jobs, either directly or indirectly, to ef-
fect a price below cost for any individual job.
SRa 16. Commercial bribery.-No member of this Division shall
give, permit to be given, or directly offer to give, anything of value
for the purpose of influencing or rewarding the action of any em-
ployee, agent, or representative of another in relation to the business
of the employer of such employee, the principal of such agent or the
represented party, without the knowledge of such employer, prin-
cipal, or party. This provision shall not be construed to prohibit
free and general distribution of articles commonly used for adver-
tising except so far as such articles are actually used for commercial
bribery as hereinabove defined.
ARTICLE VI-MiODIFICATIONS

Subject to the provisions of sub-paragraph (c) of Section 2 of
subdivision B of Article IV of Chapter I of this Code, the pro-
Visions of this Chapter, except as to provisions required by the Act,
may be modified on the basis of experience or changes in circum-
stances, such modifications to be based upon application to the
SAdministrator and such notice and hearing as he shall specify, and
:to become effective on his approval.





12 -

Arr~nc VII-REVIEw OF Acs OF DIpIBIONAL CODE ATuraHOB .

If the Administrator shall determine that any action of the Divr
sional Code Authority or any agency thereof may be unfair or un-
just or contrary to the public interest, the, Administrator may rt
quire that such action be suspended to afford an opportunity for
investigation of the merits of such action and further consideration
by the Divisional Code Authority or agency pending final action
which shall not be effective unless the Administrator approves, or. i
unless he shall fail to disapprove after thirty (30) days' notice tq
him of intention to proceed with such action in its original or modi-
fled form.
ARTICLE VIII-REGISTRATION

Each member of this Division shall register with the Divisioal:
Code Authoiity within thirty (30) days after the effective date of "
this Chapter. Thereafter all who become members of this Division
shall likewise register with the Divisional Code Authority. Regis-
tration of a member of this Division shall include the full name aad
mailing address of the member. An application may be made by
the Divisional Code Authority to the Administrator for an exten-
sion of the time limit for the registration by any member of this
Division if it appears that the time limit as provided herein might
cause injustice or undue hardship to any member of this Division.

ARTICLE IX-PRICE INCREASES

Whereas, the policy of the Act to increase real purchasing power
will be made impossible of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price
increases, except such as may be required to meet individual cost,
shall be delayed, but when made such increases should, so far as
reasonably possible be limited to actual additional increases in the
seller's costs.
ARTncEa X-EFFECTIVE DATE


This Chapter shall become effective on the fifteenth
after its approval by the President.
Approved Code No. 244, Supplement No. 10.
Registry No. 1020-02.


(15th) day


.1.;
J..




V..


Mt..
Ft~


For the purpose of the administration of the Resilient Flooring
Contracting Division Chapter of the Construction Industry Code,
the Divisional Code Authority shall divide the country into twelve
(12) tentative regional Divisions as set forth below:-


REGION NO. 1-NEW ENGLAND


Connecticut.
Maine.
SMassachusetts.
New Hampshire.
New York (the counties of Albany, Clinton, Columbia, Dutchess,
Essex, Franklin, Fulton, Greene, Hamilton, Rensselaer, Saratoga,
Schoharie, Sullivan, Ulster, Warren, Washington).
Rhode Island.
Vermont.


REGION NO. 2-- METROPOLITAN NEW YORK

Long Island and the counties of Westchester, Orange, Putnam
and Rockland.
New Jersey (the counties of Bergen, Essex, Hudson, Hunterdon,
Middlesex, Morris, Passaic, Somerset, Sussex, Union).
New York City.

REGION NO. 3-NORTH EASTERN

Delaware (the county of New Castle).
New Jersey (excluding those counties included in Region No. 2).
S New York (excluding those counties included in Region No. 1
and Region No. 2).
Pennsylvania (the eastern portion of the State bounded on the
west by and including the counties of McKean, Elk, Clearfield,
Cambria and Somerset).

REGION NO. 4-CENTRAL ATLANTIO

Delaware (the counties of Kent and Sussex).
Maryland.
Virginia.
Washington, D.C.
- West Virginia (excluding the counties of Brooke, Hancock, Mar-
shall, Ohio).
REGION NO. 5-SOUTH ATLANTIC


Alabama.
SFlorida.
Georgia.
SLouisiana.
iMississippi.
SNorth Carolina.
:if South Carolina.
I;: Tennessee.


(13)


EXHIBIT A-REGIONAL DIVISIONS


(










Oklahoma.
Texas.
REGION NO. 7--OIO"
Indiana (excluding the counties of Lake, LaPorte, Poqtr). '
Kentucky.
Michigan (that portion east of Lake Michigan).
Ohio. ,
Pennsylvania (those counties not included in Region No.. ):,i
West Virginia (the counties-of Brooke, Hancock, Marshll, .

REGION NO. 8--CENTRAL .
Illinois. .
Indiana (the counties of Lake, LaPorte, Porter).' :
Iowa.i
Kansas (the counties of Atchison, Brown, Donipha D
Jackson, Jefferson, Johnson, Leavenworth, Shawnee, Wyandot
Missouri.
REGION NO. 9-NORTH CENTRAL *; 0. .
Michigan (that portion west of Lake Michigan).
Minnesota. ":
North Dakota.
South Dakota.
Wisconsin.
REGION NO..'10-MID WEST :ii
Arizona.
Colorado. t
Kansas (excluding those counties contained in Region No. &8'}
Nebraska.
New Mexico.
Utah.
Wyoming.
REGION NO. 11-SOUITH WESTERN
California.
Nevada.
REGION NO. 12-NORTH WESTERN
Alaska.
Idaho.
Montana. .
Oregon. i... )
Washington.


0 i"'"iii:


... R:::.:E.
UNIVERSITY OF FLORIDA "

MI 1ll6 8II/I8 8I I
3 1262 08482 8556




Full Text

PAGE 1

Approved Code No. 244-Supplement No. 10 Registry No. 1020-02 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE RESILIENT FLOORING CONTRACTING INDUSTRY (A Division of the Construction Industry) AS APPROVED ON MAY 29, 1934 WE DO OUR PARt I l UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Superintendent of Documents, Washington, D.C. ------Price 5 cents v

PAGE 2

This pu_blicntion i s fm sale by the Superintendent of Documents, Government Printing Office, Washington, D.C., and by districtoffices of t...'le Bureau of Fureign and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga.: 50-1 Post Office Building. Birmingham, Ala. : 257 Federal Building. Booton, l\lass. : 1801 Customhouse. Buffalo, N.Y.: Chamber of Commerce Building. Charleston, S.C. : Chambe r of Commerce Buihling. Chicago, Ill.: Suite 1706 . 201 North Wells Street. Cleveland, Ohio: Chamber of Commerce . Dallas, Tex. : C hamber of Commerce Building. Detroit, l\Iich.: 80 1 First National Bank Building. Houston, Tex. : Chamber of Commerce Building. Indianapolis, Ind.: Chamber of Commerce Building. Jac.:ks<.mville, Fla.: Chamber of Comme r ce Building. Kansas City, Mo.: 1028 Baltimore Avenue. L os Angeles, Calif.: 1163 South Broadway. Louisville, Ky.: 408 Federal Building. l\Iemphis, Tenn. : 229 FedPral Building. l\Iinneapolis, Minn. : 213 Federal Building. N e w Orleans, La.: Room 225-A, Customhouse. New York, N.Y.: 73-1 C ustomhouse. Korfolk, Va.: 406 East Plume Street. Philadelphia, P a.: 4.22 Commercial Trust Building. Pittsburgh, Pa.: Chamber of Commerce Building. Portland, Oreg.: 215 New Post Offic e Building. St. Loui , l\Io. : 506 Oliv e Street. San Francisco, Calif. : 310 Cu!"tomhouse. Seattle, Wash.: 809 Federal Offi ce Building.

PAGE 3

Approved Code No. 244-Supplement No. 10 SUPPLEMENTARY CODE OF FAIR CO:MPETITION FOR THE RESILIENT FLO ORING INDUSTRY As Approved on May 29, 1934 ORDER APPROVING CoDE OF FAIR CoMPETITION FOR THE RESILIENT FLOORING CoN'1'RAC'riNG INDUSTRY, A DiviSION oF THE CoNSTRUCTION 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, and pursuant to and in full compliance with the provis ions of Se c tion 5 of Article VIII of Chapter I of the Code of Fair Competition for the Construction Industry, approved January 31, 1934, for approval of Chapter XIII of said Code, which Chapter XIII is applicable to the Resilient Flooring Contracting Division of the Construction Industry, and hearings have been held thereon and the annexed report on said Code, containing findings with respect thereto, having been made and directed to the President: NOW, THEREFORE, on behalf of the President of the United States, I, Hugh S. Johnson, Administrator for Industrial Recovery, pursuant to authority vested in me by Executive Orders of the President, including Executive Order No. 6543-A, dated December 30, 1933, and otherwise; do hereby incorporate by reference said annexed report and do find that said Chapter complies in all respects with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Chap ter XIII be and it is hereby approved and that the previous approval of said Code of Fair Competition for the Construction Industry is hereby modified to include an approval of said Code in its entirety as supplemented by said Chapter XIII, providing, however., that the following sentence be and rt is hereby inserted at the end of Rule I of Article V: " It shall be a defense to any charge of violation of this Rule if the party charged shall satisfy the Administrator that his bid was not les s than the reasonable estimate of said costs of any other mem ber of the industry." HuaH S. JoHNsoN, AdministTator for IndlustriaJl Recovery. Approval recommended: GEo. L. BERRY, Division Ad1ninistrator. WASHINGTON, D.C., May 29, 1934. 64oos•----6u7-4----34 (1)

PAGE 4

REPORT TO THE PRESIDENT The PRESIDENT, The lVhi t e Ho'use. Sm: This is a report on the Resilient Flooring Contracting Chapter of the Code of Fair Competition for the Construction Industry which is describ e d a s Chapter I and which was appro-ve d by you on January 31, 1934 . Thi s Chapter is a revi. ion after a public h earing conducted in \iVashington on March 16, 1934, in accordance with the provisions of theN ational Industrial Recovery act. This Chapter amplifies Chap . ter I, but applies specifica lly to the Resilient Flooring Contracting Division of the Construction Industry. PROYISIONS FOR HOURS AND W ACES With very minor the h ours and wages set forth in Chapter I of the Construction LJode as approved by you on January 31, 1934 are applicable to this Code. ECONOMIC EFFECT OF THE CODE E s timates made by the Division of Rese arc h and Planning indicate that the volume of business decreased from approximately $217,000,000 in 1929 to $42,000,000 in 1933, a decr ease of about eighty per cent. It is reasonable to predict that the establishment of uniform rates of pay, uniform hours of work, improved conditions of employment and the prohibition of unfair trade practices will be beneficial to all of this Industry, as well as to the employees and the consumer. FINDINGS The Deputy Administrator in his final report to me on said R e sili ent Flooring Contracting Chapter of the Code of Fair Compe tition for the Construction Industry, having found as herein set forth and on the basis of all the proceedings in this matter; I find that: (a) Said Resilient Floorin,oContracting Chapter and said Code of Fair Competition for the &nstruction Indu::;try, as supplemented by said Resilient Flooring Contracting Chapter, are well designed to promote the policies and purposes of Title I af the National Industrial Recovery Act, including removal of obstructions to the free flow of interstate and foreign commerce which tend to diminish the a mount thereof and will provide f o r the general welfare by promoting the organization of industry for the purpose of cooperative ac-(2)

PAGE 5

3 tion among the trade. groups, by inducing and maintaining united action of labor and management under adequate governmental sanc tions and supervision, by eliminating unfair competitive practices, by pr01noting the fulle t possible utilization of the present productive capacity of industries, by avoiding undue restriction of production (except as may be temporarily required), by increasing the consump tion of industrial and agricultural products through increa sing purchasing power, by reducing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating industry. (b) Said Industry normally employs not more than 50,000 em ployees; and is not classified by me as a major industry. (c) Said Resilient Flooring Contracting Chapter and the Code of Fair Competition for the Construction Industry, as supplemented by said Resilient Flooring Contracting Chapter, as approved comply in all respects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant association is an industrial association truly representative of the aforesaid Industry; and that said Association impo ses no inequitable restrictions on admission to membership therein. (d) Said Resilient Flooring Contractin.g Chapter and the Code of Fair Competition for the Construction Industry, a s suppleinented by said Resilient Flooring Contracting Chapter are not de s igned to and will not permit monopolies or monopolistic practices. (e) Said Resilient Flooring Contracting Chaptr and the Code of Fair Competition for the Construction Industry, as supplemented by said Resilient Flooring Contracting Chapter, are not designed to and will not eliminate or oppress small enterprises and will not operate to discriminate against them. (f) Those engaged in other steps of the economic process have not been depr.ived of the right to be heard prior to approval of said Resilient Flooring Contracting Chapter and of said Code, as supple mented by this Resilient Flooring Contracting Chapter thereof. For these reasons, therefore, I have approved said R esi lient Flooring Contracting Chaptr of the Code of Fair Competition of the Construction Industry. Respectfully, MAY 29, 1934. HuGHS. JoHNsoN, Administrator.

PAGE 6

CHAPTER XIII CODE OF FAIR COMPETITION FOR THE RESILIENT FLOORING CONTRACTING DIVISION OF THE CONSTRUCTION INDUSTRY ARTICLE I-REFERENCE TO PROYISIONS OF CHAPTER I T he provisions of Sections 7 (a) and 10 (b) of the Act, which are set forth in Sections 1 and 6, respectively, of Article VIII of Chapter I of this Code, are specifically incorporated herein by reference with the same f orce and effect as if set forth herein in full; all other provi ions of Chapter I of this Code, including modifications or amendments thereto, except as herein provided, apply within this Division with the same f orce and effect as if se t forth herein in full. ARTICLE II-DEFINITIONS SECTION 1. The term "Resilien t Flooring Contracting Division" or "this Division" as used herein shall mean the business of furnishing and installing, or the installing, for compensation, of all types of resilient preformed flooring materials in use at the present time and such other materials, of similar character, as may be de veloped in the future, but shall not include the furnishing and installing, for compensation, of resil.ient flooring materials ordinarily sold at retail b y members of the Retail Trade , when sold for home purposes at established prices, but shall include such portion of resilient flooring materials as may be furnished and instaHea by m embers of the Retail Trade on a competitive bidding basis. Nothing i n the definition of this Division shall in any way be construed as affecting the clas sification of labor employed under this Chapter of this Code . SEc. 2. The term "Resilient Flooring. " is used to describe various types of preformed materials employed as a finished floor sur face. These materials include linoleum, cork tile, rubber tile, cork composition tile, asphalt tile, sheet rubber flooring, carpets and other materials of similar character. SEc. 3 . The terms "Resilient Flooring Contractor" or of tllis Division " as used in this Chapter shall m .ean, but without limitation, any individual, partnership, firm, corporation, association or other form of enterprise engaged in work within this Division. SEc. 4. The term "Association " as u se d herein means the "N ationa! Resilient Flooring Association." ARTICLE III-Houns , WAGES AND CoNDITIONS OF EMPLOYMENT SEc. 1. H ours.-N o emplo yee shall be permitted to work in excess of forty ( 40) hours in any one week or eight ( 8) hours in any one day, except that the provisioru; of this Section shall not apply to: (4)

PAGE 7

5 (a) Outside salesmen. (b) Employees engaged in an executive, administrative or super vi ory capacity, receiving in excess of thirty-five ($3 5 .00) dollars per week. Supervisory employees are defined as those who perform no manual labor. (c) Employees engaged in emergency work upon bre akdowns or for the protection of life or property, vvho shall b e paid at least one and one-half times the normal r ate for all hours worked in exce s of forty ( 40) hours p e r week or eight (8) hours per d a y or six (G) days per week. (d) Watchmen "ho hall not be permitte d to work c e ss of fifty-six (56) hours in any one week nor six ( 6) days in any week. SEc. 2. Numbe r of clays.-N o employee shall b e permitte d to work in excess of six ( 6) days in any seven (7) day p e riod. SEc. 3. Evasion th1 ough reemploym..ent.-No e mployee now em ployed at a rate in excess of the minimum herein e tablished shall be discharged and reemployed at a lower rate for the purpose of evading the provisions of this Code. SEc. 4. Transportation.-Members of this Divis ion shall make payment of all legitimate expenses incident to transportation, board and room incurred by an employee while traveling to and from the site of regular employment, when such site is outside of a recog nized working area. SEc. 5. Contracting Labor.-No member of this Division shall (whether by the practice known as "Lumping" of labor or other wise) sublet to any journeyman or other employee the labor services required by any contractor for work within this Division. SEc. 6. Mem ,beTs performing work.-:Members of this Division who personally perform manual work or are engaged in mechanical operations shall not exceed the maxima as to hours and days prescribed herein for the work performed by them. SEc. 7. Oom.plaint.-No employee shall be dismissed for making a complaint or giving evidence with respect to an alleged violation of this Code. SEc. 8. Posting.-All members of this Division shall post and keep posted in conspicuous places readily accessible to all employees in their respective shops and other established places of business complete copies of Chapter I, General Provisions for the Construction Industry, and of this Chapter of this Code, together :vith. the name and address of the nearest official place where Code vwlatwns may be reported. SEc. 9. Standards for safety and h eailth.-Each member of this Division shall provide for the safety and health of his employees at the place and during the hours of their employment. Standards for safety and health shall be submitted by the Divisional Code Auth?r ity to the Administrator within six (6) months after the effective date of this Chapter. After approval, such standards shall becon:e the minimum standards of safety and health for all members of this Division. SEc. 10. Payment of wag es.-All members of this Division shall make payment of all wages due in lawful currency or by negotiable check therefor, payable on demand at par. If wages are paid by

PAGE 8

6 check, the employer shall provide reasonably accessible facilities for cashing such checks at face value without expense to the employee. Employers shall also provide such identification as is necessary to utilize such facilities. vVages shall be payable at the end of each weekly period and shall be exempt from any payment or deduction for pensions, insurance or sick benefits other than those voluntarily paid or authorized to be deducted by employees. Employers or their agents shall not accept, directly or indirectly, rebates on such wages or give anything of value nor extend any favors to any person for the purpose of influencing rates of wages or working conditions of their employees. The provisions of this Section regarding payment of wages at the end of eac h weekly period shall not apply to persons employed in an e:s:ecutive , administrative or supervisory capacity who earn in excess of thirty-five dollars ($35.00) per week, nor to persons em ployed in clerical or office work. The wages for persons employed in clerical or office work shall be payable at least semi-monthly. SEc. 11. Handicapped pmsons.-A person whose earning capacity is limited because of age, physical or mental handicap or other infirmity may be employed on light work at a wage below the minimum established by this Code if the employer obtains from the State Authority designated by the United States Department of Labor a certificate authorizing his employment at such wages and for such hours as shall be stated in the certificate. Such Authority shall be guided by the instructions of the United States Department of Labor in issuing certificates to such persons. Each employer shall file monthly with the Divisional Code Authority a list of all such persons employed by him, showing the wages paid to, and the maximum hours of work for, all such persons. ARTICLE IV-ORGANIZATION, PowERs .AND Dms OF THE DrvrsroNAL CoDE AuTHORITY SECTION 1. A Divisional Code Authority is hereby constituted to administer this Code within this Division. SEc. 2. The Divisional Code Authority shall consist of seven (7) members all of whom shall have assented to this Code, to be selected as follows: (a) l\fembers of the Association shall elect five (5) members of the Divisional Code Authority from members of the Association by majority vote of the said members to serve for a term of one year or until their successors are elected. The Association is hereby designated as the agency to conduct the initial election of the Association members of the Divisional Code Authority within thirty (30) days after the effective date of this Chapter and any other elections of Association members of the Divisional Code Authority which may thereafter be held. Notice of the time and place of regular elections shall be sent to all members of the Association and to the Administrator at least forty ( 40) days in advance of such election, exce:pt that the initial election above referred to may be held on ten ( 10) days' notice. Voting at all elections may be in person, or by proxy or letter ballot and each member of the Association shall be entitled to one vote for each membership to be filled.

PAGE 9

7 In the event o any vacancy in the Association membership of the Divisional Code Authority, a special meeting of the members of the Association shall be called to elect a member of the Divisional Code Authority to serve for the unexpired portion of the term of the member of the Divisional Code Authority whom he is succeed ing. Such election shall be called within twenty (20) days after such vacancy occurs. (b) The Administrator shall appoint two (2) m e mbers of the Divisional Code Authority from and to represent the members of this Divi.sion who are not members o . f the Association to serve for a tern1 of one ( 1) year. At such time, or should a vacancy occur in the non-member representation of the Divisional Code Authority, the members of this Division who are not members o f the Associa tion may select their own men1bers of the Divisional Code Authority, which successors and the method of their selection .shall be approved by the Administrator. If the members of the Division who are not members of the Association do not select such successors, as above provided, the Administrator .shall appoint them. Any n1ember of the Divisional Code Authority selected from and to r epresent mem bers of this Division who are not members of the Association shall automatically disqualify himself from further holding such ofiice by joining the Association, and his membership in the Divisional Cod e Authority .shall therefore become vacant. SEc. 3. The Administration members, the Construction Code Au thority and the Administrator shall be given at least five (5) days' notice of and may sit at all meetings of the Divisional Code Authority. SEc. 4 . Each Trade or Industrial Association directly or indi rectly participating in the selection or activities of the Divisional Code Authority shall impose no inequitable restrictions on membership. . SEc. 5. lt being found necessary, in order to support the admin istration of this Chapter and to maintain the standards of fair competition established by this Code and to effectuate the policy of the Act, the Divisional Code Authority is authorized, subject to the approval of the Administrator: (a) To incur such rea.sonable obligations as are necessary and proper for the foregoing purposes and to meet such obligations out of funds which may be raised as hereinafter provided and which shall be held in trust for the purposes of the Chapter. (b) To submit to the Administrator for his approval, subject to such notice and opportunity to be heard as he may deem necessary, (1) an itemized budget of its estimated expenses for the foregoing purposes, and (2) an equitable basis upon which the funds necessary to support such budget shall be contributed by members of this Division. (c) After such budget and basis o contribution have been ap proved by the Administrator, to determine apd secure equitable con tributions as above set forth by all such members of this Division, and to that end, if necessary, to institute legal proceedings therefor in its own name. SEc. 6. Only members of this Division complying with this Code and contributing to the expenses of the administration of this Chap

PAGE 10

8 ter as provided in Section 5 of this Article shall be entitled to participate in the s . election of the members of the Divisional Code Au thority or to receive the benefit of its voluntary activities or to make use of any emblem or insignia of the National Recovery Adminis tration. SEc. 7. Powe rs and Duties. Subject to such rules and regulations as may be issued by the Administrator, the Divi. ional Code Author it:y shall have the powers and duties as are conferred by Subdivi sion (b) of Article IV of Chapter I of this Code and also shall have the following powers and duties: (a) To es tablish, with the approval of the Administrator after such notice and hearing as he may prescribe, a standard contract form for use within this Division, which shall be used by all mem bers. (b) To cooperate with the Administrator in regulating the use of any N. R. A. insignia solely by those members of this Division who have as sented to, and are complying with, this Code. (c) To recommend to the Administrator further fair trade prac tice provisions to govern members of the Division in their relations with each other or with other industries and to recommend to the Administrator measures for industrial planning, including stabilization of employment. (d) To establish, with the approval of the Administrator after such notice and hearing as he may prescribe, " Standards of Performance'' for use within this Division. (e) To appoint appropriate agencies for the administration of this Code in each Regional Division or Subdivision of the Association, as outlined in Exhibit "A" attached hereto, and to delegate to said agencies all necessary power and authority for the administration of this Code within the Regional Divisions of Subdivisions, including the adoption of divisional and subdivisional rules and regulations not inconsistent with this Code and subject to the approval of the Administrator provided that nothing herein shall relieve the Code Au thority of its duties or responsibilities under this Code and that such Association and agencies shall at all times be subject to and comply with the provisions hereof. (f) To reYise, on the basis of experience and with the approval of the Administrator, the Regional Divisions to effectuate the administration o-f this Code. (g) To cause to be formulated an accounting system and methods of cost finding and/or estimating capable of use by all members of this Division. After such system and methods have been formulated by the DiYisional Code Authority and approved by the Administrator, full details and instructions concerning them shall be made available to all members. Thereafter all members shall determine and/or estimate costs in accordance with the principles of such methods. (h) To appoint a trade practice committee which shall meet with the trade practice committees appointed under such other codes as may be related to the industry for the purpose of formulating fair trade practices to govern the relationships between employers under this Chapter and employers under such other codes, to the end that

PAGE 11

9 such fair trade practices may be proposed to the Administrator as amendments to this Chapter and such other Codes. (i) In compliance with the provisions of Section 1 of Subdivision A of Article IV of Chapter I, to select one of its members as a member of the Construction Code Authority. Such member shall be elected :for a term o:f one (1) year, or until his successor shall have been elected and qualified. The election shall be held annually upon proper notice to every member o:f the Divisional Code Authority, and each of such members shall be entitled to one vote. In order for any candidate to be elected six (6) of the seven (7) members of the Divisional Code Authority shall have voted :for his election. ARTICLE V-Tn.ADE PRACTICE RuLEs Ge71eral definition.-For all purposes of this Code the acts de in this Article shall constitute unfair practices. Any member of this Division who shall directly or indirectly through an officer, employee, agent or representative use, employ or permit to be em ployed, such unfair practices shall be guilty of a violation of the Code. RuLE 1. Bidding below cost.-No member of this Division shall submit bids on goods or services at a price which is below the reas on able -estimate of the sum of the following items of cost : 1. Materials. 2. Labor. 3. Job Expense. 4. General Overhead. The labor item .of cost shall include, in respect to labor services or operations performed by any individual member of this Division, or any combination or association of such individual n1embers, a charge computed at not less than the minimum rate of wage estab lished in or pursuant to this Code as applicable to the performance of such services or operations by employees. Job expense shall include all costs which can properly be charged directly to individual jobs such as transportation and delivery of materials, men and equipment; compensation and public liability insurance; code administration expenses chargeable to the job ; and an appropriate allowance for the depreciation of equipment used directly on the job. General overhead.-Within ninety (90) days after its recognition, the Divisional Code Authority shall determine the lowest reas onable percentage of overhead costs during the period from 1927 to 1932, which percentage, after approval by the AdministratQr, shall be used in the formula specified above. It shall not include profit, accounting losses, selling and administration expense, depreciation on unused equipment, any return on invested capital, or interest on borrowed money. Until such time as this percentage of overhead be determined1 it shall be assumed at ten per cent {10%) of labor, material and Job expense.1 1 Add following sentence: " It shall be a defense to any charge of violation of this Rule if the party charged shaH satisfy the Administrator that his bid was npt less than the reasonable estimate of any other member of the industry." (See par . .2 of order approving this Code.)

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10 RULE 2. Oollusion.-Section 9 of Article VII of Chapter I of this Code is specifically incorporated by reference with the same for,e and effect as if set forth in full, in this Chapter, and nothing contained in this Chapter shall nullify, change, or affect the appli cation of said section to this Division. RuLE D1ops.-No member of this Division shall sell merchan dise o:F the classification known as ''drops" without designating them as such. " Drops " are hereby designated as those materials purchased as such from the manufacturer or discontinued by the manufacturer while in the stock of any member or any stock held by the dealer for a period of more than eight ( 8) months. " Drops " may be sold at a price below the member's individual cost estimated in accordance with Rule I of this Article and Section 7 (g) of Article IV. RULE 4. R e gional installations.-N o member of this Division lo cated in a specific region shall sell, supply or furnish any installation of resilient flooring in any other region without complying in every respect with the provisions governing that region as provided by the Divisional Code Authority and approved by the Administrator. RULE 5. Ter1ns of payment.-No member of this Division shall sell on terms of payment other than the following: (a) For all work terms of payment shall be net cash in full witlun thirty (30) days after date of completion, except work as described in the following paragraphs (b) and (c) of this Rule. (b) On general contract work the terms of payment shall conform to the terms of payment incorporated in the general contract. (c) 1Vhtnever work is performed on a deferred payment basis the actual cvst of shall be added to the regular selling price and paid for by t1ie RULE 6. Secret rebates.-N't'r member of this Divisio n shall secretly offer or make any payment or allowance of a rebate, refund, com mission credit, unearned discount, or excess allowance, whether in the form of money or otherwise, nor shall a. member of this Division offer or extend to any customer any special service or privilege not extended to all customers of the same class, for the purpose of influencing a sa le. RuLE 7. Fals e marking or branding.-(a) No member of this Di vision shall falsely mark or brand any product of this Division which has the tendency to mislead or deceive customers or pros pective customers, with respect to the grade, quality, quantity, sub stance, character, nature; origin, size, finish, or preparation of any product of this Division. (b) No member of this Divisio n shall furnish merchandise purchased as " seconds " or " mill remnants " without specifically designating them as such at the time of the sale and on the invoice when rende red. (c) No member of this Division shall remove or obliterate any mark on the merchandise placed thereon by the manufacturer which brands said merchandise as "seconds" or "imperfect". RuLE 8. Fals e or misleading state?Twnts.-N o member of this Di vision shall make false or misleading statements preventing the fair and impartial administration of this Chapter.

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11 RULE 9. lnacmurate advertising.-No member of this Division shall publish ( p:inted, display or of any other nature), which IS misle.ading or In any material particular, nor sh_all any IX: any way misrepresent any goods (including bu.t hm1tatwn Its u se, trade-mark, grade, qua.lity, quantity, ongm, size, substance, character, nature, fini sh, matenal, content or preparation ) or credit terms values, policies, services, or the nature or form of the business conducted. RULE 10. lnacmr.,?'ate refe?'e'nces to c omp etitors.-No m ember of this Division shall publi h advertising which refers inaccurately in any material particular to any competitors or thei r goods, price , values, credit terms, policies or services. RULE 11. Defmning co1npetitors.-N o memb er of this Division shall defame or disparage competitors by fal ely imputing to them dishonorable conduct, inability to perform contract , questionable credit sta.nding, or by other false representations, having the tendency to mislead or deceive customers or prospective cu s tom e rs. RULE 12. Breach of contract.-No member of this Division shall induce or attempt to induce the breach of an existing contract between a competitor and his customer or source of supply; nor shall any member maliciously interfere with or obstruct the performance of any such contractual duties or services. RULE 13. Standards of perjo1mance.-No member of this Division shall knowingly violate the Standards of Performance " as set and fixed by the Divisional Code Authority after such standards have been approved bX the Administrator. RuLE 14. quantities.-No mem .ber of this Divis ion shall use any which he knows to be incorrect, in determining the cost of any Job. RuLE 15. Grouping of jobs.-N o m em b e r of this DiYision shall group together two or more jobs, either directly or indirectly, to effect a price below cost for any individual job. RULE 16. Oo11unereial brib ery.-No member of this Division shall give, permit to be given, or dirGctly offer to give, anything of value for the purpose of influencing or rewarding the action of any em ployee, agent, or representative o f another in relation to the of the employer of such employee, the principal of s uch agent or the represented party, without the knowledge of such employer, principal, or party. This provision shall not be construed to prohibit free and general distribution of articles commonly u sed for advertising except so far as such articles are actually u se d for commercial bribery as hereinabove defined. ARTICLE VI-MomFIOATIONs Subject to the provisions of sub-paragraph (c) of Section 2 of subdivision B of Article IV of Chapter I of this Code, the provisions of this Chapter, except as to provisions required by the Act, may be modified on the basis of experience or changes in circum stances, such modifications to be based upon application to the Administrator and such notice and hearing as he shall specify, and to become effective on his approval.

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12 ARTICLE VII-REVIEw OF Aors OF DIVISIONAL ConE AUTHORITY If the Administrator shall determine that any action of the Divi sional Code Authority or any agency thereof may be unfair or unju t or contrary to the public interest, the Administrator may require that such action be suspended to afford an opportunity for investigation of the merits of such action and further consideration by the Divisional Code Authority or agency pending final action whi c h shall not be effective unless the Administrator approves or unless he shall fail to disapprove after thirty (30) days' notice to him of intention to proceed with such action in its original or modi fied form. ARTICLE VIII-REGISTRATION Each member of this Division shall register with the Divisional Code Authority within thirty (30) days after the effective date of this Chapter. Thereafter all who become members of this Division shall likewise register with the Divisional Code Authority. Registration of a member of this Division shall include the full name and mailing address of the member. An application may be made by the Divisional Code Authority to the Administrator for an exten sion of the time limjt for the registration by any member of this Division if it appears that the time limit as provided herein might cause injustice or undue hardship to any member of this Division. ARTICLE IX-PRICE INCREASES vVhereas, the policy of the Act to increase real purchasing power will be made impossible of consummation if prices of goods and services increase as rapidly as wages, it is recognized that price increases, except such as may be required to meet individual cost, 5hall be delayed, but when made such increases should, so far as reasonably possible be limited to actual additional increases in the seller's costs. ARTICLE X-EFFECTIVE DATE This Chapter shall become effective on the fifteenth (15th) day after its approval by the President. Approved Code No. 244, Supplement No. 10. Registry No. lOW--02 . .

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ExHIBIT A-REGIONAL DIVISIONS For the purpos e of the a d ministr atio n of the Resili ent FloorinO' Division Chapt_er o:f the In
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Arkansas. Oklahoma. Texas. 14 REGION NO. 6-SOUTH CENTRAL REGION NO. 7-0HIO Indiana (excluding the counties of Lake, LaPorte, Porter). l{entucky. Michigan (that portion east of Lake Michigan). Ohio. • Pennsylvania (those counties not included in Region No.3). West Virginia (the counties of Brooke, Hancock, Marshall, Ohio). NO. 8-cENTRAL Illinois. Indiana (the counties of Lake, LaPorte, Porter). I