Approved Code No. 244 — Supplement No. 13 Registry No. 1123—1—02 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE KALAMEIN INDUSTRY (A Division of the Construction Industry) AS APPROVED ON JUNE 9, 1934 WE DO OUR PART UNIV. OF FLUB. Dgc^MiNTS PEPL ADD „ U.S. DEPOSE UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Superintendent of Documents, Washington, D.C. ---.--.. 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 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, 111.: Suite 1706, 201 North Wells Street. Cleveland, Ohio: Chamber of Commerce. 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(ID Approved Code No. 244 — Supplement No. 13 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE KALAMEIN INDUSTRY As Approved on June 9, 1934 ORDER Code of Fair Competition for the Kalamein 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 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 XI of said Code, which Chapter XI is applicable to the Kalamein 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. G543-A, dated December 30, 1933, and otherwise; do hereby incorporate by reference said annexed report and do find that said Chapter complies in all re- spects with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Chapter XI 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 modified by said Chapter XI. FIugh S. Johnson, Administrator for Industrial Recovery. Approval recommended : Geo. L. Berry, Division Administrator. Washington, D.C., June 0, 193^ 66338° 657-80 34 (1) REPORT TO THE PRESIDENT The President, The White House. Sir : This is a report on Chapter XI of the Code of Fair Compe- tition for the Construction Industry, which Chapter is a revision, after a formal public hearing on February 14, 1934, of a Code of Fair Competition for the Kalamein Industry. This Chapter, applicable specifically to the Kalamein Division of the Construction Industry, supplements the basic Code of Fair Com- petition for the Construction Industry, described as Chapter I of such Code, which was approved by you on January 31, 1934. The hearing was conducted in accordance with the provisions of the National Industrial Recovery Act. THE INDUSTRY The Kalamein Division of the Construction Industry includes^ the manufacture, supplying and/or installing in buildings or other fixed structures of sheet metal-covered wood, windows, doors, partitions, jambs, trim, base picture moulding, or any other sheet metal-covered wood products. It is not one of the larger divisions of the industry, but has gained in importance over a period of years. PROVISIONS FOR HOURS AND WAGES Excepting additional provisions beneficial to employees, the hours and wages set forth in Chapter I of the Construction Code as ap- proved by you on January 31, 1934, are applicable to this Code. ECONOMIC EFFECT OF THE CODE According to the statistical analysis of the Division of Research and Planning, the volume of business of this Division in 1929 was £10,000,000. In 1933 the estimated volume had dwindled to $050,000. In 1929, 1,250 were employed, and in 1933 only 750. Although the rate specified in the Code will directly affect only unskilled labor, or 5% of the total number of employees, it is rea- sonable to predict that the prohibition of unfair practices will be beneficial to the industry as well as to the employees and the con- sumer. FINDINGS The Deputy Administrator in his final report to me on said Kala- mein Chapter of the Code of Fair Competition for the Construction Industry, having found as herein set forth and on the basis of all the proceedings in this matter; (2) I find that: (a) Said Kalamein Chapter and said Code of Fair Competition for the Construction Industry, as supplemented by said Chapter, are well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including removal of obstruc- tions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof and will provide for the general wel- fare by promoting the organization of industry for the purpose of cooperative action among the trade groups, by inducing and main- taining united action of labor and management under adequate gov- ernmental sanctions and supervision, by eliminating unfair competi- tive practices, by promoting the fullest possible utilization of the present productive capacity of industries, by avoiding undue restric- tion of production (except as may be temporarily required), by in- creasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing and relieving un- employment, by improving standards of labor, and by otherwise re- habilitating 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 Kalamein Chapter and the Code of Fair Competition for the Construction Industry, as supplemented by said Kalamein Chapter, as approved comply in all respects with the pertinent pro- visions of said Title of said Act, including without limitation Sub- section (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 imposes no inequitable restrictions on ad- mission to membership therein. (d) Said Kalamein Chapter and the Code of Fair Competition for the Construction Industry, as supplemented by said Kalamein Chapter are not designed to and will not permit monopolies or monopolistic practices. (e) Said Kalamein Chapter and the Code of Fair Competition for the Construction Industry, as supplemental by said Kalamein 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 Kalamein Chapter and of said Code, as supplemented by this Kalamein Chapter thereof. For these reasons, therefore, I have approved said Kalamein Chapter of the Code of Fair Competition of the Construction Industry. Respectfully, June 9, 1934. Hugh S. Johnson, Administrator. Chapter XI SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE KALAMEIN DIVISION OF THE CONSTRUCTION INDUSTRY Article I — Definitions Section 1. The term " Kalamein Division of the Construction. Industry ", or " this Division ", as used herein, means the manufac- turing, supplying and/or installing in buildings or other fixed struc- tures of sheet metal-covered wood windows, doors, partitions, jambs, trim, base picture moulding, or any other sheet metal-covered wood products. Sheet metal covered wood doors for elevator fronts shall be included in this definition, but such other products fabricated, and/or assembled, and/or installed in conjunction with operating mechanisms or equipment controlling the operation and/or function of a complete installation shall not be included. Section 2. The term " this Chapter " as used herein shall mean and include any related industry which hereafter, subject to the approval of the President, may be included hereunder, as a subdi- vision or otherwise. Section 3. The term "Association " as used herein is denned to mean " The National Kalamein Association." Article II — Hours, Wages and General Labor Provisions Section 1. The following are exempt from the provisions of sub- division B of section 2 of Article III of Chapter I of this Code relating to maximum hours : (a) Traveling or outside salesmen; (b) Employees engaged in managerial or executive capacity re- ceiving more than thirty-five ($35.00) dollars per week; (c) Employees on emergency work involving break-downs or the protection of life or property, but in any such case, at least one and one-half (IV2) times the normal rate shall be paid for all hours in excess of eight (8) hours per day and/or forty (40) hours per week; and (d) Watchmen, who shall not be permitted to work in excess of fifty-six (50) hours or six (6) days in any one week. Section 2. To the extent permitted by the Act 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. Section 3. No employee now employed at a wage rate in excess of the minimum shall be discharged, and reemployed at a lower wage rate for the purpose of evading the provisions of this Code. (4) Section 4. Employers shall not reduce the rates of wages for em- ployees whose rates are now in excess of the minimum rate herein provided (notwithstanding that the number of hours worked in such employment may hereby be decreased) and, where in any case an employer has not increased the rates of wages of such employees prior to the effective date of this Code by an equitable readjustment of all wage rates, such employer shall readjust all such wage rates. Section 5. A person whose earning capacity is limited because of age or physical or mental handicap may be employed on light work at a wage below the minimum established by this Code if the em- ployer obtains from the State Authority designated by the United States Department of Labor a certificate authorizing his employment at such wages and for such hours as shall be stated in the certificate. Each employer shall file monthly with the Divisional Code Au- thority, a list of all such persons employed by him, within this Division, showing the wages paid to, and the maximum hours of work for, each such employee. Section 6. The minimum rates of pay applicable to employees within this Division shall be maintained regardless of whether the employee is compensated on the basis of a time rate, piece-work or other basis. Section 7. 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 Authority 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. Section. 8. All employers shall post and keep posted, copies of Chapter I and this Chapter of this Code in conspicuous places acces- sible to all employees. Every member of the industry shall comply with all rules and regulations relative to the posting of provisions of codes of fair competition which may from time to time be pre- scribed by the Administrator. Section 9. All members of this Division shall make payment of all wages due in lawful currency of the United States or by negoti- able check therefor, 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 em- ployee. Employers shall also provide such identification as is nec- essary to utilize such facilities. Wages shall be payable at the end of each weekly period. Wages shall be exempt from any payment or deduction for pensions, insur- ance or sick benefits except such as are voluntarily paid, required by law, 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 each weekly period shall not apply to persons employed in executive, administrative or supervisory capacity who earn in excess of thirty-five ($35.00) dollars per week, nor to persons employed in 6 clerical or office work. The wages for persons employed in clerical or office work shall be payable at least semi-monthly. Employees engaged in a supervisory capacity as mentioned above are those who perform no manual work. Section 10. In no case shall a member of this Division avoid or evade the labor provisions of this Code by contracting his work to any person or persons subject to labor provisions less stringent than those provided in this Code. Article III — Administration A Divisional Code Authority is hereby constituted to administer this Code within this Division. Section 1. The Divisional Code Authority shall consist of seven (7) individuals or such other number as may be approved from time to time by the Administrator, to be selected as hereinafter set forth. Section 2. (a) Five (5) members of the Divisional Code Author- ity shall be selected from members of the Association and elected to the Divisional Code Authority by a majority vote of the Executive Committee of the Association to serve for terms of one (1) year. (b) The two (2) remaining members of the Divisional Code Authority shall be initially selected on a fair and representative basis by a majority vote of the Executive Committee of the Associa- tion from and to represent members of this Division who are not members of the Association. Each member representing such mem- bers shall be approved by the Administrator. Every such member shall serve a term of one year, or until he becomes a member of the Association, or until his successor shall have been appointed by the Administrator, or elected by members of this Division who are not members of the Association at an election, the manner and method of conducting of which are satisfactory to, and approved by, the Administrator. (c) The successors (including the successor of any member whose membership has become vacant) of all of said members of the Divi- sional Code Authority shall be selected in the same manner as their predecessors except that the successors to the members selected under paragraph (b) hereof may be elected by the members of this Division who are not members of the Association at an election, the manner and method of conducting of which are satisfactory to, and approved by, the Administrator. (d) Any member of the Divisional Code Authority may be re- moved at any time by the appointing agency or the agency which has power to select his successor, subject to the approval of the Administrator. Section 3. Subject to such rules and regulations as may be issued by the Administrator, the Divisional Code Authority shall have the powers and duties as are conferred by Subdivision B of Article IV of Chapter I of this Code and also shall have the following powers and duties: (a) 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; (b) to make studies and investigations for the establishment of classifications, dimensional standards, and quality specifications for products of this Division, in cooperation with a Federal Govern- mental agency preferably with the Bureau of Standards of the United States Department of Commerce, with the view to their recommendation for adoption by the industry within one year from the effective date of this Code. Failure to follow such standards, when adopted and approved by the Administrator, except when in conflict with the specification of the awarding authority, will consti- tute a violation of this Chapter. (c) to use the Association or other agencies as it deems proper for the performing of any of its activities provided for herein, pro- vided that nothing herein shall relieve the Divisional Code Au- thority of its duties or responsibilities under this Code and that the Association and such agencies shall at all times be subject to and comply with the provisions hereof; (d) to make recommendations to the Administrator for the co- ordination of the administration of this Code with such other codes, if any, as may be related to or affect members of this Division ; (e) to appoint a Trade Practice Committee which shall meet with the Trade Practice Committees appointed under such other codes as may be related to this Division for the purpose of formu- lating fair trade practices to govern the relationships between em- ployers under this Code and under such other codes to the end that such fair trade practices may be proposed to the Administrator as amendments to this Code and such other codes; (f ) to cause to be formulated an accounting system and methods of cost finding and/or estimating capable of use by all members of the industry which shall be subject to the approval of the Admin- istrator. After such system and methods have been formulated and have been approved by the Administrator, full details concerning them shall be made available to all members. Thereafter all mem- bers shall determine and/or estimate costs in accordance with the principles of such methods. (g) In compliance with the provisions of Section 1 of Subdi- vision 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 of 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 of 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. Section 4. It being found necessary, in order to support the administration 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, sub- ject 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 3hall be held in trust for the purposes of this Chapter; 8 (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 neces- sary 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 contribution 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. Section 5. The Administration members, the Construction Code Authority and the Administrator shall be given at least five (5) days' notice of, and may sit at, all meetings of the Divisional Code Authority. Article IV — Fair Trade Practice Regulations Section 1. The following provisions are adopted as rules of fair trade practice for members of this Division, and any violation of these rules shall constitute an unfair method of competition and a violation of this Code as it applies to this Division: Rule 1. 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, nor shall any member of this Division in any way mis- represent goods (including but without limitation its use, trade- mark, grade, quality, quantity, origin, size, substance, character, nature, finish, material, content, or preparation) or credit terms, values, policies, services or the nature or form of the business conducted. Rule 2. False Billing. — No member of this Division shall know- ingly withhold from or insert in any quotation or invoice any state- ment that makes it inaccurate in any material particular. Rule 3. Inaccwrate Labelling. — No member of this Division shall brand or mark or pack any goods in any manner which is intended to or does deceive or mislead purchasers with respect to the brand, grade, quality, quantity, origin, size, substance, character, nature, finish, material, content, or preparation of such goods. Rule 4. The standards of fair competition for this Division with reference to pricing practices are declared to be as follows (for definition of terms see subsection (d) : (a) The Principle: (1) Destructive price cutting is an unfair method of competition and is forbidden at all times, irrespective of the existence of an emergency; (2) When no declared emergency exists as to any given product, there is to be no fixed minimum basis for prices but it is intended that sound cost estimating methods should be used; (3) When an emergency exists as to any given product a sale thereof below the lowest reasonable cost of such product, in violation of subsection (c) hereof, is forbidden. (b) Normal provision (Cost estimating methods) : See Article III, Section 3 (f) of this Chapter. (c) Emergency provision (lowest reasonable cost) : When an emergency exists, the Divisional Code Authority may cause an impartial agency to investigate costs and to determine the lowest reasonable cost of the product affected by the emergency which determination shall be approved by the Administrator before be- coming effective. Only such cost elements are to be included in such determination as are prescribed in such rules and regulations as are issued by the Administrator, and said determination shall be in all respects subject to said rules and regulations. Such determina- tion shall be subject to the Administrator's approval or modification after such notice and opportunity to be heard as he may prescribe. The Divisional Code Authority or the Administrator may, from time to time, cause such determinations to be reviewed or reconsidered and appropriate action taken. ( d ) D efinitions : An " Emergency " exists whenever the Administrator determines that destructive price cutting is rendering ineffective or seriously endangering the maintenance of the provisions of this Code. " Destructive price cutting ". (1) When no emergency exists, the term shall have the meaning declared in rules and regulations promulgated by the Administrator on recommendation of the Divisional Code Authority or on his own motion ; (2) When an emergency exists, the term shall mean any sale in violation of subsection (c) hereof; (3) It shall be an absolute defense to any charge of destructive price cutting, if an impartial agency, designated or approved by the Administrator, shall find, (aa) That the price complained of is justified by existing competi- tion, evidence of which has been reported to the Divisional Code Authority. (bb) That the price complained of is justified as a method of disposal of dropped lines or seconds, or (cc) When no declared emergency exists, that the member charged with destructive price cutting has in good faith endeavored to make proper use of the announced cost estimating methods. Rule 5. Threats of Law Suits. — No member of this Division shall publish or circulate unjustified or unwarranted threats of legal pro- ceedings which tend to or have the effect of harassing competitors or intimidating their customers. Rule 6. Secret Rebates. — No member 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 secretly offer or extend to any awarding authority or customer any special service or privilege not extended to all customers of the same class, for the purpose of influencing a sale. Rule 7. Bribing Employees. — No member of this Division shall give, permit to be given, or offer to give, anything of value for the purpose of influencing or rewarding the action of any employee, 10 agent, or representative of another in relation to the business of the employer of such employee, the principal of such agent or the repre- sented 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 used for advertising except so far as such articles are actually used for commercial bribery as hereinabove defined. Rule 8. Inducing Breach of Existing Contracts. — No member of this Division shall wilfully induce or attempt to induce the breach of existing contracts between competitors and their customers by any false or deceptive means, or interfere with or obstruct the perform- ance of any such contractual duties or services by any such means, with the purpose and effect of hampering, injuring or embarrassing competitors in their business. Rule 9. Subletting of Labor. — No member of this Division shall directly or indirectly, or by any subterfuge sublet solely the labor services required by any contract secured by such member. Rule 10. Substitution of Inferior Products. — No member of this Division shall use or substitute any products of the industry inferior in grade or quality, less in quantity, and/or of a different design or type to those specified by the purchasers, without the consent of the purchasers to such uses or substitutions, with the effect of deceiving or misleading such purchasers. Rule 11. Concealment of True Selling Price. — No member of this Division shall combine quotations for any product of this Industry with any quotation for any other material, labor, or service, for the purpose of concealing the true selling price of the product of this Industry. Rule 12. Distinction of Separate Projects. — No member of this Division shall combine the requirements for the products of this Industry for two or more distinct and separate projects in one quo- tation to the same purchaser for the purpose of concealing the true selling price for the products of each or all of such projects. Under this section a project shall be considered distinct and separate from another project unless the awarding authority, including the owner, and his agents (including the architect and the mechanical engi- neer) . are the same on both projects. Rule 13. Other Unfair Trade Practices. — Nothing in this Article shall limit the effect of any adjudication b}^ the Courts or holding by the Federal Trade Commission on complaint, finding, and order, that any practice or method is unfair, providing that such adjudication or holding is not inconsistent with any provision of the Act or of this Code. Section 2. Each member of this Division shall file with a disin- terested impartial depository, selected by the Divisional Code Au- thority, a signed sealed copy of all bids including all alternates and revisions thereof submitted in connection with .competitive bidding in excess of three hundred dollars ($300.00) together with a list of all prospective customers or others to whom such bids have been or are to be submitted. Such copies of bids shall not be opened by such depository until twenty-four (21) hours after the time specified by the awarding authority for the receipt and opening of such bids. Within five (5) days after such opening the depository may and 11 shall on the request of any bidder prepare a list of the names and addresses of all bidders for each specific project, indicating the amounts of all base bids, alternates, and modifications together with a summary of all exceptions, and forward a copy of such list to each member of the industry who has filed his bid for such project. Section 3. It shall be a violation of this Code for any member of this Division to accept a contract or to furnish any material, labor, or service in violation of the provisions of this Article. Article V — Reference to Provisions of Chapter I The provisions of Section 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 is set forth herein in full; all other provisions of Chapter I of this Code, including any modifications or amendments thereto, except as herein provided, apply within this Division with the same force and effect as if set forth herein in full. Article VI— Review of Action of Code Authorities If the Administrator shall determine that any action of the Divi- sional Code Authority or any agency thereof may be unfair or unjust or contrary to the public interest, the Administrator may require that such action be suspended to afford an opportunity for mves- tio-ation 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 unless he shall fail to disapprove after thirty days' notice to him of inten- tion to proceed with such action in its original or modified form. Article VII — Modifications Subject to the provisions of Section 2, (c) of Article IV B, 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 circumstances, 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. Article VIII — Reports In addition to information required to be submitted to the Code Authority, all or anv of the persons subject to this Code shall fur- nish such statistical information as the Administrator may deem necessary for the purposes recited in Section 3 (a) of the Act to such Federal and State Agencies as the Administrator may desig- nate ; and nothing in this Code shall relieve any person of any exist- ing obligation to furnish reports to government agencies. Article IX— Registration of Members of the Division Each member of this Division within thirty (30) days after the effective date of this Chapter, shall register with the Divisional 12 Code Authority. Thereafter all who become members of this Divi- sion 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 extension 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 X — Effective Date, This Chapter shall become effective within this Division on the tenth (10th) day after the approval of this Chapter by the President. Approved Code No. 244 — Supplement No. 13. Registry No. 1123-1-02. O UNIVERSITY OF FLORIDA 3 1262 08851 7932