Document 47BRJvX9y9DM3w3713pwvDqG

I NATIONAL ARCHIVES AND RECORDS ADMINISTRATION all to rnijurn ttys? ptvzmts filial! rmtte. drnttng: |By virtue of the authority vested in me by the Archivist of the United States, I certify on his behalf, sr the seal ofthe National Archives ofthe United States, that the attached reproduction(s) is a true and SIGNATURE 0. NAME {/ DATE HILTON 0. GUSTAFSON 2-3-89 TITLE Chief, Civil Reference Branch w > . % * fnVvi': v<s5vLt |&C<rv mm 1 PLAINTIFFS EXHIBIT 1 INDEX ASBESTOS INDUSTRY Page Mr. LewiB K. Brown . President, Johns-Manville Corporation and Presidant of Asbestos Institute. 4 Mr. George D. Crabbs 69 President of the Phillip Carey Manufacturing j. Company. s Mr. Waldo C. Holden 78,90 ' . On Behalf of the American Federation of _ Labor for the Yuorkers in the Asbestos Industry. Mr. Guy GexorgeGobrielson 1 4^ On Behalf of the Mountain Company 84 ' Mr. Howard Snow 95 . Southern Friction Fabric Company* . Mr. G. F. Stone 97 Representing the Keasbyy and Matheon Company . ! Ambler Penna. ; Mr. John Yv. Garvey 100 Representing the International Hod Carriers Building and Common Laborers Union of America 25 School Street, Quincy, Mass. NATIONAL RECOVERY ADMINISTRATION Washington, D. C. . October 19, 1933 86. HEARING ON CODE OF FAIR COMPETITION Ml . ' for the ASBESTOS INDUSTRY. jy! The ab. ove-entitled matter came on for hea. ring at. 10:00 i -o'clock a. m., in the Patio Room of the Carlton Hotel, Washing- j| _ - ,ton, D. C., Assistant Deputy Administrator George S. Brady, ! ?pre siding. . There were also present: Of the Industrial Advisory Board: " Mr. 0. J. Stover. Of the Labor Advisory Board: Dr. Edmund Eckel. Of the consumers Advisory Board: Mr. M. G. Johnston Of the Planning and Research Division: Mr. Reed. Of the Legal Division: Mr. B. T. Ansell. PROCEEDINGS Assistant Deputy Brady: The public hearing on the . proposed code of fair competition for the Asbestos Industry will pleae come to order. I will ask our Legal Adviser, Mr. B. T. Ansell, to give you an outline first of the procedure. Mr. Ansell: Gentlemen, this hearing is called in ac- cordance with public notice issued by the Administrator, dated i; October 10, 1933, for hearing today. ; ' These formal hearings in the Administration are not judl- ' cial. That is, they are not judicial trials, nor are they , legislative inquiries. 'I I sions. They are strictly administrative sea- . . '' Therefore, there will be no argument as to the law, or as i to legal rights, permitted this morning. ;; They are set solely for the purpose of getting the factB; :: that is, evidence on which the Administrator may determine the necessities of the jarticular code. i' Everyone who speaks upon the code this-morning is regarded ias a witness only. Counsel may speak, but they speak.under the ;same conditions as any other witness. i; ' :: We usually first hear the code presented and discussed by l,the Chairman of the Steering Committee of the proponents of the ;'i Code. i:ti 3 He may file certain amendments to the code as published, which we usually here discuss. We may hear suggestions from the floor for the elimina tion of certain portions of the code, or for modifications of it, or additions to it. The notice which was sent out by the Administration and which everyone interested is presumed to have received, pro vides the formal procedure fox the conduct of this hearing. % However, the Assistant Deputy Administrator, who is the Administrator for our purposes this morning, Colonel George S. Brady, wishes me to inform you that it is not necessary, in a meeting of this size, that the procedure be strictly adhered to, especially in respect to the requirements that anyone wish ing to`speak must have sent his desire to the Administrator 24 hours in advance of this meeting. Colonel Brady will hear anyone this morning:who will send hie name to.him at the table here, with the request that he be heard upon any specific article. There will be no rebuttal of witnesses who testify this morning. That is, there will be no argument on the floor. The Assistant Deputy Administrator is the sole judge as to who shall be witnesses, and it is with his consent that you will speak. He also is the sole' authority to call any witnesses. If anyone has prepared a written brief and should wish 4 to file that rather than to be heard orally, or should with to file such a brief as an addendum to any oral remarks, Colonel Brady will be glad to receive the brief at this hearing. The entire conduct of the session is through the Assis tant Deputy Administrator; not through any of his advisers, sitting here with him at this table. All questions to wit nesses will be directed to the witnesses through Colonel Brady. This hearing opens with the presentation of the code by the chairman of the code committee, Mr. Brown, of the Asbestos Institute. STATEMENT OF MR. LEWIS H. BROWN, President,-JOHNS-MANTILLE CORP., And President, ASBESTOS INSTITUTE Mr. Brown: Mr. Administrator and gentlemen: Following the program outlined by the Administrator, I will first proceed to present to the Secretary the following authorization papers: . 1". T am hereby presenting the official letter of trans mittal and the application blank together with a copy of the proposed code for the asbestos industry. While preliminary copies of these papers were filed with the National Recovery Administration at a previous date, those filed now contain the final information available. 3. Next I am filing notarized copies of the minutes of the meetings held by the five divisions of the aoboetos indus try authorizing a committee consisting of the following men to 5 represent the industry in connection with the presentation of the code to the National Recovery Administration: , Chairman ----- Mr. Lewis H. Broan, President, Johns-Manville ; Corporation; . ii - ' ' I Asbestos Paper and Allied Products Division ----- Mr. G. B. ` Gahrielson, representing the Sail Mountain Company; ' Asbestos Cement Products Division ---- Mr. A. S. Blagden, . President, Xeasbey & Mattison Company; Asbestos Magnesia Products Division ------ Mr. George D. , Crabbs, Chairman of the Board, Philip Carey Manufacturing Cora- pany; ' Asbestos Textile Products Division ----- Mr. G. R. Weber, General Manager, United States Asbestos Division, Raybestos ** . . Manhattan, Inc. Brake Lining Division ----- Mr. Bradley Dewey, President, Dewey and Almy Chemical Company and The Multibestos Company; 3. I am presenting a letter containing a list of all of ' the companies in the industry divided into two groups, those who have signed the code and those who have not as yet signed ji the code. ' 4. I am also presenting a letter indicating the percent age of the industry in each division represented by the signers of the code and the proportions of the total industry repre- ij sented by each of the five divisions. This letter Indicates i! * I that the signers of the code represent more than 83 per cent 6 of the volume of the industry. Mr. Administrator, X would like to present these papers. (The various documents referred to are as follows;) THE ASBESTOS INSTITUTE TWENTY-TWO EA8T FORTIETH STREET NEW YORK, N. Y. October 17th, 1933. Mr. Malcolm Muir Deputy Administrator National Recovery Administration Washington, D. 0. Re; Asbestos Industry Code Index 1002/1/01. Dear 8ir; . Attached are twelve copies of the Code of Fair Competi tion for the Asbestos Industry as revised at meetings of the Divisions of the Asbestos Industry held at the Commodore Hotel, New York City, on September 27th, 1933. In letters of even date I am submitting notarized copies of minutes of these meetings, with a list of companies who have signed the Code and those who have not signed, and an estimate of the volume of the Industry's production represented by the signers. Very truly yours, Lewis H. Brown President. 7 CODE OF FAIR COMPETITION FOR THE ASBESTOS INDUSTRY. ARTICLE I --- PURPOSES To effectuate the policies of Title I of the National Industrial Recovery Act the following provisions are submitted as a Code of Fair Competition for the Asbestos Industry, and upon approval by the President such provisions shall be the standard of fair competition in this Industry. ARTICLE II ----- DEFINITIONS ' '. Whenever used in this Code or in any schedule or supple ment appertaining thereto, the terms enumerated in this Article ehall have the meanings herein defined unless the context shall otherwise clearly indicate. ` Section 1. The term "the President" means the President of the united States of America. SEc. 3. The term "the Administrator" means the Adminis trator appointed by the President under the National Industrial Recovery Act and at the. time in office. Sec. 3. The term "the Act" means th-e National Industrial Recovery Act as approved by the President, June 16, 1933. * Sec. 4. The term "products" means the products listed in Schudulc I hereto attached. Sec. 5. The term "the industry" as used herein shall mean and include -the manufacturing and sale by the manufacturer 8 either "by himself or by sibsidiaries or affiliates or agencies of the manufacturer, of the products listed in Schedule I here-, of. Sec. 5 (a). The term "affiliates" means legal entities which by contract with the manufacturer perform the manufactur er's ordinary selling function for such manufacturer. It does not include jobbers, dealers, applying contractors and other . such customary channels of distribution. ' Sec. 5 (b). The term "subsidiary" means a legal entity which 1s controlled by the manufacturer or by a legal entity ' which controls or is controlled by the manufacturer. ; Sec. 6. i The term "Division" means a section of the asbes tos industry comprising a group of manufacturers who manufacture and/or sell a group of related products as set forth in Schedule I. A manufacturer who manufactures products in more than one Division is a member of each such Division. Sec. 7. The term "member of the industry" means any person, including without limitation any other legal entity, engaged in the Asbestos Industry, in the United States aB de fined in Section 5 above. - Sec. 8. The term "employee" means any person engaged in the asbestos industry, as defined in Section 5 above, in any capacity in the nature of employee, irrespective of the method of payment of his compensation. Sec. 9. The term "employer" means any one by whom such 9 employee is compensated. Sec. 10. The term "learner* as used herein means a per son who has had no previous experience in the manufacture of asbestos products and whose employment as such shall not ex ceed six weeks. Sec. 11. The term "the Code" means this Code and all amendments thereof and all schedules and supplements appertain ing thereto. ' ' Sec. 13. The term "member of the Code" means any member of the Asbestos Industry who shall become a member of the Code as hereinafter provided in Section 1 (c) of Article VI. Sec. 13. The term "the effective date" means the second Monday after the Code shall have been approved by the Presi dent . * Sec. 14. The term "the Institute" means The Asbestos Inotitute, an unincorporated association having an office in the City, of New York, State of New York. ' Sec. 15. The "Southern section" means the States of North Carolina, Tennessee, Arkansas, Oklahoma, Texas, New Mexico, and the States south thereof. . Sec. 16. The "Northern section" means that part of the United States not included in the Southern section. Sec. 17. Population for the purpose of the Code shall be determined by reference to the 1930 Federal Census. 10 j; ARTICLE III----- H0UR8 OF LABOR 1 Section 1. Factory employees, mechanical workers, or i- 1 artisans, except as hereinafter provided in sections 2 to 5 ' i I inclusive, shall not be employed (a) in excess of 40 hours 1: * ! per week, except that to meet seasonal requirements or emer- If * \, ;i gencies 48 hours per week for not more than 6 weeks in any six ( t! ij months period shall be permitted if the average employment over ^ i; I ). the six months period is not more than 40 hours per week, (b) ini ji i i: excess of 8 hours in any 34-hour period, except that to meet . : .: i iI I; seasonal requirements or emergencies more than 8 hours may be ii . i: |jworked, provided time and one third is paid for overtime in I ! i | ij any one day. L: t; * ij Sec. 3. ' .- * There shall be a tolerance of 10 per cent ad- j i ' j! ditional hoxirs for (a) employees engaged in the preparation, ; care, and maintenance of plant, machinery, and production facii- ! ities, (b) watchmen, firemen, and engineers, and (c) shippers ' " ^ and delivery employees; provided, however, that any such work I i ! bp: such employees in excess of an average of 44 hours per week ; over a six months' period shall be compensated for at the rate I ; of time and one third. jj Sec. 3. The limitation as to hours of labor in any 24 || jj hours shall not apply to very special cases where restriction I ' of hour8 of labor of highly skilled workers in continuous pro- i! jj cesses would unavoidably reduct prodiction; provided, however ii 11 that employees in such cases shall not work more than 48 hours in any one week. ; Sec. 4. The limitation as to hoursof labor shall not apply (a) to outside sales or sales-service men, technicians (highly skilled factory workers are not to be classed as tech nicians), nor to persons in a managerial, executive, or super visory capacity who receive more than $35.00 per week (foremen regularly engaged' in manufal labor shall not be considered to i be in such supervisory capacity) , nor (b) to employees engaged ; in emergency maintenance or repair work necessary because of breakdowns or involving danger to life and property, providing ' that such emergency overtime work in excess of 48 hours in any one week shall be paid for at the rate of time and one third. Sec. 5. No employer shall work any accounting, clerical, office, inside sales, or other salaried employee not provided for above who receives lees than $35-00 per week, more than an average of 40 hours per week during a six-month period, nor ' more than 48 hours per week in any one week. 3 Sec. G. No employee shall be permitted to work a total number of hours in excess of the prescribed number, whether employed by one or more employers. ARTICLE 'IV----- MINIMUM WAGES Section 1. Except as provided in Section 2 to S below, the minimum wages that shall be paid to factory workers in the Northern section by any employer shall be at the rate of 40 12 cents per hour or of $16.00 per week of 40 hours of labor; except that for such light work as does not usually require the strength and skill of male labor, and for which male labor has not been usdd, the minimum rate paid to female employees or may be at the rate of 35 cents per hour/at $14.00 per week of 40 hours of labor. Sec. 2. In the Southern section the above-mentioned minimum rates shall- be 2-1/2 cents per hour lower. . Seo. 3. The above Sections 1 and 2 establish minimum ^ rates of pay, regardless of whether the employee is paid a time rate or for piecework performance. Sec. 4. The minimum wage that shall be paid by employ ers to any accounting, clerical, office, or sales employee in any office, department, or establishment shall be at the fol lowing rates in cities of the sizes listed below and their im mediate trade areas; Over 500,000 population, not less than $15.00 per week. Between 250,000 and 500,000, not less than $14.50 per week. Under 250,000 population, not less than $14.00 per week. Sec. 5. No employees in the classes mentioned in Sec- A, tion 4 of this article shall have their compensation reduced on account of any reduction in their weekly hours of employ ment made because of the requirements of Section 5, Article III. Sec. 6. The minimum rate of pay paid to office or m . ; 13 ji messenger boys and girls and learners (the latter for not over ! j) the six weeks period specified m the definition of learners) j. , I; may, in the case of those members of the Industry where the i | total of such classes never exceed 5 per cent of their total * ; ; . : employees, be 20 per cent less than the rates specified in }' I: Sections 1 and 2 above for learners, and Section 4 above for li ' . |j office or'messenger boys.and girls; . < ' ' | it - ' '` li Sec. 7. No distinction in rateB shall be made between . 1 '' ` ; ;! male and female employees where the same class of work is per- ; li ' ' i j formed, regardless of whether compensation is calculated on an : I hourly, weekly, monthly, or piece work basis. : j i; Sec. 8. UnlesB such readjustment has already been made I !' iI i because of the operation of the President's Reemployment Agree- i i *- ~' I jl ment, the wage rates of all employees receiving more than the ' \. . \ j! minimum rates prescribed above, but leas than $35.00 per week, | shall beequitablyreadjusted. ; Sec. 9. There shall be no evasion of the Code by any ; employer by reclassification of the functions of an employee. 1 An employee shall not be included in one of the classifications i !i . " i ;; exompted from the provisions of this Code unless the identical ` !1! functions wereidenticallyclassified on June 16, 19933. i ARTICLE V ----- CHILD LABOR I No person under 16 years of age shall be employed in the .` Industry, and no person under 18 years of age when operating !i i j 1 i| j hazardous manufacturing machinery. ,' H * i- ' * '. 14 ARTICLE VI ----- ADMINISTRATION : , To further effectuate the policies of the Act, a Code ; Authority is hereby set up to cooperate with the Administrator : in the Administration of the Code. j Section 1. Organization and constitution of the Code ' Authority. t 0a) -The Code Authority, shall consist of six. voting mem- . j bers seledted as specified in Article VI, Section 1 (e), and ! such additional members, if any, not exceeding three, as shall ! be appointed by the president. Such additional members shall not be vested with voting rights and shall serve without expense to the members of the Code. j : (b) For purposes of administering the Code and selecting ! members of the Code Authority, the Asbestos Industry is divided i into the following Divisions: ' Asbestos Paper and Allied Products Division. Asbestos Cement Products Division. Asbestos Magnesia Products Division. Asbestos Textile Products Division. Asbestos Brake-Lining and Related Friction Products Divi sion. . The products manufactured by members of each of said Divisions are set forth under the designated Divisions in Schedule T hereto attaohed. (c) Every member of the Industry shall be eligible to 15 memberskip in the Code and there shall be no inequitable res- ; trictione upon such membership. Any member of the Industry ! desiring to become a member of the Code may do so by signing i and delivering to the Institute or to the Code Authority a 1 letter substantially in the form set forth in Schedule II, an nexed hereto. (dj Every member of the Induetry who manufactures one or more of the products listed in Schedule I under a designated , i I i j Division shall be a member of such Division. (e) At least five voting members of the Code Authority shall be selected from members of the Code. One voting mem- j i ; i j ber shall be elected by a two-thirds vote of the members of ; each Division of the Code. The method of election and term of office shall be determined by the members of each Division. , ! j i The sixth voting member shall be elected by a majority vote of , the five so elected. i (f) The Code Authority shall adopt its own rules of pro- j { cedure and may appoint such officers or agencies aB ii: may deem = necessary properly to administer the Code. It shall delegate ' j to a Sub-Code Authority of each member Division, consisting of i three members elected by each Division, the administration of ; all articles except III, IV, V, and X of the Code. AS. contacts i with the Administrator relating to the administration of Article's ,; Ill, IV, V, and X of the Code shall be by the Code Authority. i (g) The members of each division, shall adopt their own i i*i 16 rules of procedure with respect to administering the Code, not inconsistent with the Act or with the Code, subject to re view by the Administrator. Each Division may appoint agents, not members of the Industry, to investigate complaints of violation of the Code by members of the Division under rules which shall not be inconsistent with the provisions of the Act dr of- the Code. .. .. (h) All members of the Code shall bear their proportion ate share of the expense of maintenance of the Code Authority and its activities. Such expenses shall be assessed upon an equitable basis (proportionate to dollar sales or volume of production as Divisions may determine) by the Code Authority, subject to review by the Administrator. Assessments shall be paid by members of the Code in the manner and at such times as shall be directed by the Code Authority. Sec. 3. The Code Authority shall have the following duties and powers to the extent permitted by the Act and sub ject to review by the Administrator. (a) With a view to keeping the President and the members of the Code informed as to the observance or non-observance of tha Coda and as to whether the members of the Industry are tak ing appropriate steps to effectuate the declared policy of tha Act, the Code Authority shall report to the Administrator at such times and concerning such conditions in the Industry as he may from time to time require. Each member of the Code i 17 i | shall file in such office as the Code Authority may designate ! !' and at such time, in such form and for such periods as required ! i ; !; "by the Code Authrority, duly certified reports with respect to '= ? wages, hours of labor, conditions of employment, number of em I ii ! ployees, production, and other matters pertinent to the proper . supervision of the industry as determined by the Code Authority It Any additional special1 reports required by the Administrator i. will be supplied without expense to the Code Authority. in I i | i; ' j; addition to information required to be submitted bo the Code I ' f: . | j: Authority, there shall be furnished to government agencies such j ! i jj statistical information as the Administrator may deem necessary j for the purposes recited in Section 3 (a) of the Act. ji . . i! (b) All confidential information of any nature so re- j j ! queeted shall be collected through agents not connected with : j; the Industry, selected by the Code Authority, and such informa- j i" tion shall be kept <knnfidential by the said agents except when | . .1 j; required by the Code Authority for the proper administration of j !j: . jI !j theCode. Only suchinformation i; shallbe requestedby the . !i ! Code Authority which is appropriate to the proper supervision | |I i| of theindustry or r to theadministrationof the Code. ! ji (c) The Code Authority may designato agents not members !i: i] of the Industry to investigate complaints of violations of the |. ;! Code. The members of the Industry shall facilitate such in!i !' ' ij vestigations by opening their correspondence, books, and ac- I I 1 ' 18 counts relating to alleged violation for examination by such ! i authorized agents and by furnishing relevant information. All ! such informationshall be kept confidential by the agents ex cept that in the event of any such vrlation being substantiated,i the Code Authority shall be informed and may present evidence . thereof to the proper department of the Government. If, upon such investigation, any complaint of a violation of the Code ! shall be substantiated in any material respect, the member of . the Code guilty of such violation shall pay the cost of the } investigation; otherwise the cost shall be borne by the com- ; plainant. i The guilty member shall be subject to all penalties j provided for in the Act, and, if a member of the code, any other penalties provided for by said member's Division of the Code. . i i j I (d) The Code Authority shall study conditions in the in- : dustry and, subject to approval by four of its voting members : and by a three-fourths vote of the Code members of each Division- present at a meeting expressly called for that purpose, shall ' make such recommendations from time to time to the Administrator, as it deems desirable to further the policies of the Act, which, upon the approval of the president or the Administrator or such other lawful officer as may be constituted, shall become a part of the Code and shall have full force and effect as provisions j j j ; hereof. ) 19 Sec. 3. Appeals. (a) Any interested party shall have the right of complaint to the Code Authority or a Sub-Code Authority, and a prompt hearing and decision thereon, under such rules and regulations as the Code Authority shall prescribe, in respect to any act of any member of the Industry or in respect to any agent or agency, designated by the Code Authority or Sub-Code Authority, j to act in its behalf. ' (b) Any interested party shall have the right of appeal j to'. the Admi. nistrator, under such rules and regulations as he ;i i shall prescribe, with respect to any decision, rule, regulation,1 order, or finding made by the Code Authority or a Sub-Code | Authority. . Sec. 4 . Codes of Ethics and Merchandising Plans. ilI i ! 1 (a) The Code Authority may, with the approval of four of its voting members and by a three-fourths vote of the Code mem bers of. each Division present at a meeting expressly called for: that purpose, and subject to review by the Administrator, for- ! mulate a Code of Ethics for all members of the Industry which ; will amplify and define the provisions of Article VII hereof. ! (b) The members ofeach Division ofthe Industry may . prepare Simplification andStandardizationSpecifications and ; i a Merchandising Plan for such Division, Incorporating the mer- ! i* chandising policies best calculated to promote :fair competition ,jin such Division. Subject to the review of thu Admi nistrator 30 : every such merchandising plan or simplification and standardiza- !i<; i' ; tion specifications, when approved by three fourths of the Code : I members of the Division and filed with the Sub-Code Authority, ;! shall be binding upon all members of the Industry who are memp> j: bers of the Division to which such merchandising plan or specii' ? fication8 apply- Changes may be made in any such merchandisI1 ! j ing plan or specificationa in the same manner that the originals l wereestablished. 1 ( | . i; Sec. 5. Any notice, demand, or request required or per- j ;' . 'j ' mitted to be given to or to be made upon any member of the In- ; !: i ` dustry shall be sufficiently given if mailed by registered mail, i; . i ; postageprepaid, addressed to such member of the Industry, at . i his address on file with the Secretary of the Code Authority. f [ ARTICLE VII------UNFAIR TRADE PRACTICES . ;; For the purposes of the Code the following shall consti- I 1, . . :tute unfair trade practices: j* ! . Section 1.To invoice fictitiously,ship in excess of : ! i i I; quantities invoiced, price at prices for a trade classification : to which buyer is net properly entitled, permit unwarranted de- ductions, make fictitious or excessive allowances or guarantees.' Sec. 3. To grant secret rebates in any form, give ox i; i ji sell other materials at lower than prevailing prices to influ- ! it ; ji ! j; ence a sale, give imporper "cut backs" or rebate to any buyer ! ji > ] for Stock on handat date of any pricedecline. j i I |j Sec. 3. To subsidize buyers by special donations, 21 ; give premiums, lavishly entertain a customer or prospective || I customer or their employees, split commissions, pay part or all i` i. of a customer's or prospective customer's expenses, buy of a \' customer or prospective customer other commodities at higher i I than prevailing open market prices, make improper advertising ; : allowances, give gratuities or make loans or otherwise improper- i ? ly influence business, consign stock or allow other than pub- I - - - ; lished terms, or fail to prescribe definite terms, or make im- ; ! | <1 \ proper price maintenance guarantees. - Sec. 4. (a) To sell or offer any product with intent to : i deceive. I: ; (b) To defame a competitor. ; ! i ' ij (c) To purchase a stock of competitor's materials from a t | customer or prospective customer. t' : (d) To misbrand material or to imitate the trade marks, trade names, slogans or advertising matter of.acompetitor. *' : ; (e) To improperly entice away a competitor's employees. : i: Sec. 5. To sell for export until the buyer has agreed ] : not to resell the goods within the United States i j ! | * j i ! J t ! i i ; I! Sec. 6. Using or employing any unfair trade practice i ; 1 shall be a violation of the Code and any memberof the Industry 1 j'j wko shall directly or indirectly through anyofficer, employee, j '! i agent or representative, knowingly use or employany such unfair! i. . j |i practices shall have violated the Code. i! - ! I i 22 ARTICLE VIII ----- PUBLICITY OF PRICES, i TERMS AND CONDITIONS OF SALE f '' The purpose of the following publicity requirements of ' the Code is to insure complete publicity of all prices, termB i. j and conditions of Bale to manufacturers and to the trade oon- I cerned, and thus to promote fair competition. The trade con- j; cerned shall be all the trade of the members of the Industry ^ l directly affedted by such prices, terms or conditions of sale . [ in the territory to which the same apply. i; . |j Section 1. Eaoh member of the Industry shall have the 1 i , right individually to establish new prices, terms and condi- . tions of sale from time to time not inconsistent with the pro- ^ visions of the Code. i; . i; \is Sec. 2. No member*, of the Industry shall sell, pay a I rebate, or allow a deduction at any time to any person except ; I i ; upon prices, terms, and conditions of sale then in effect and/ i or published in such manner as may hereinafter be required by ; j; the Code. ; Sec. 3. Upon the effective date of the Code every mem- ' ber of a Division of Industry shall forthwith file in the ; office designated for such Division a schedule of his prices, j. terms, and conditions of sale then in effect for distribution ii p to all members of the Division in the manner and to the extent i- |! determined by the Sub-Code Authority of such Division. The j j : . : j !| members of each Division may determine the extent to which such ' 23 schedules shall be open to inspection by members of the trade. Seo. 4. In the event of any change being made by a member of the Industry in any price, term, or condition of sale, he shall, if so determined by the members of the Division of which he is a member do either one or both of the following; (a) Immediately publish to the trade concerned every such change and coincidentally file in the office designated for his : Division full and complete copies of every such change in price i and terms and conditions of sale for immediate distribution to | i the members of the Division; or ; (b) File full and complete copies of every contemplated . change in prices, terms, and conditions of sale in the office i dsoignatcd by his Division within such periods as may be desig- ; nated for such Division, but not exceeding five days in advance of the effective date of such change. Copies thereof shall in; such cases be immediately filed with the Sub-Code Authority of I the Division and then distributed to the trade concerned as , required by the Division, in the manner provided in ATticle VIII, Section 3. ' When a member of the Industryis a member of more than ; one Division the publicity requirements of anyDivision of , which he shall be a member shall apply only to changes in prices, terms, and conditions of sale of products listed under such ! Division in Schedule I of the Code. Merchandising plans adopted pursuant to Section 4 of : ! j 24 Article VI, containing provisions with reference to publicity of prices, terms, or conditions of sale, shall be controlling with respect to the members of the Division for which any such merchandising plan may be established, even though such provi sions supplement or vary the publicity requirements of this Article VIII. Sec. 5. After dates to be specified by each Sub-Code Authority for its Division no member of the Division shall sell to any buyer until the buyer has agreed (1) to observe all the provisions of Section 4 of Article VI and Articles VII, VIII, and IX of the Code in so far as they are applicable, and (2) to maintain vendor's sale or suggested resale prices. ARTICLE IX ----- SELLING BELOW COST Section 1. No member of the Industry shall initiate a price for the sale of any product to the trade at a net price after all discounts which shall be below the said member's current total cost thereof. Such current total cost shall include all items properly chargeable to the operation of such member's business, including replacement cost of raw materials, manufacturing, selling, transportation, depreciation, interest charges on borrowed monfcy, all items of overhead expense, and all' other items in conformity with sound accounting practice^ provided, however, that any member of the industry may sell below his own current total cost to meet prices established on 35 . products of essentially similar grade and quality by another ( member of the Industry. > Sec. 3. Complaints may be filed with a Sub-Code Author-! ; ity against any member of its Division of the Industry to the ; : effect that said member has made a sale at a price believed to i be below said member's current total cost and not to meet existj| ing competition in the Industry. . Said Sub-Code Authority may } ' in its discretion invectigate such complaints, and if it finds : that said prices were not made to meet existing competition in ' the Industry, it shall designate a firm of certified public ac-l ! ; countantB to investigate whether or not the prices complained \ of were below said member's current total cost in conformity . j; with sound accounting practice. The said accountants shall : i j report their conclusions to the Sub-Code Authority without . disclosing confidential details and if the Sub-Oode Authority ; i finds after receiving such report, that such member actually ? sold below his current total cost and not to meet existing com-: ' petition in the industry, then the cost of the Investigation ; shall be paid by said member if a member of the Code, otherwise; , by the complainant. '* f The guilty, member, shall be subject to all; penalties provided for in the Act and if amember of the code, ' :l any other penalties provided for by 6aid member's Division of ! the Code. 26 ARTICLE X ----- LABOR PROVISIONS Section 1. Employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be free from interference, restraint or coercion of employers oflabor, or their agents, in the desig nation of such representatives or in self-organization or in other concerted activities for the purpose of collective bar gaining or other mutual aid or protection. Sec. 3. No employee and no one seeking employment shall be required as a condition of employment to join any company union or to refrain from joining, organizing, or assisting a labor organization of his own choosing. Sec. 3. Employers shall comply with the maximum hours of labor, minimum rates of pay, and other conditions of employ ment approved or prescribed by the President. Sec. 4. Without in any way attempting to qualify or modify, by interpretation, the foregoing requirements of the Act, employers in this Industry may exercise their right to select, retain, or advance employees on tho basis of individual merit, without regard to their membership or non-membership in any organization. ARTICLE XI ----- GENERAL Section 1. For the purposes of the Code, all transac tions between manufacturers who are members of the industry 27 i and their respective subsidiaries or affiliates, as defined in Article II, Section 5, 5 (a) and 5 (b), shall be considered as I interdepartmental transactions of the manufacturer. li No such : manufacturer shall sell to such subsidiary or affiliate unless such subsidiary or affiliate shall agree to and does conform to' the pertinent provisions of this Code. . Sec.. 2.. Nothing contained in the Code shall be con- . strued & prohibiting any member of the Industry from exercis- : ing its and/or their lawful patent rights or as requiring any member of the Industry to do any act in conflict with the terms1 of any patent licensing agreement. '. . .. - .' ' 7" * * -(t Sec. 3. Section 4 of Article VI and Articles VII, VIII,k i and IX, of the Code shall not apply to products exported from 1 the United States. -; Sec. 4. Nothing contained in the Code shall be deemed to constitute any of the members thereof partners for any pur- ; pose. No member of the Code shall be liable in any manner by : reason of his participation therein to any one for any act of : any member or agent of the Code Authority. Nomember of the ' Code except as otherwise provided herein and nomember of the Industry or of the Code Authority, and no agent of the Indus try, shall be liable to anyone or in any manner other than as j i provided in the Act, or in the Code, for any act or failure to | t act under the Code. - , . i i 8ec. 5. Where the costs of executing contracts entered | 28 into in the Asbestos Industry prior to the effective date are increased by the application of the provisions of the Code to the Industry, a it is equitable and promotive of the purposes of the Act that appropriate adjustments of such contracts to reflect such increased costs be arrived at by arbitral proceed ings or otherwise. The Code Authority is constituted an agency to assist in effecting such arbitral proceedings and adjustments. Sec. 6. As required by Section 10 (b) Title I of the Act, the following provision is contained in the Code: The President may from time to time cancel or modify any order, approval, license, rule or regulation issued under this Title. Sec. 7. By presenting the Code the membore of the In dustry assenting thereto do not thereby consent to any modifi cation thereof, and they reserve the right to object indivi dually or jointly to any such modification. ARTICLE XII ----- AMENDMENTS TO THE CODE. It iB contemplated that from time to time supplementary provisions to the code or additional codes may be submitted for the approval of the President to prevent unfair competition in prices or other unfair or destructive practices and to ef fectuate the other purposes and policies of Title I of the Act, Such provisions of the Code as are not required to bo included therein by the Act,may, with the approval of the President, be modified or eliminated if it appears that the public needs 29 are not being served thereby, and as changes in circumstances or experience may indicate. The provisions of the Code,shall remain in effect unless and until so modified or eliminated, or until the expiration of the Act; namely, June 16, 1935, unlwss sooner terminated in accordance with law for such case made and provided. SCHEDULE I DIVISIONS OF THE ASBESTOS INDUSTRY AND PRUDUCTS INCLUDED 1. Asbestos Paper and Allied Products: All Asbestos Papers . All Types of Asbestos Millboard : Asbestos and Wool Felt Pipe Covering ; Air cell Pipe Covering Asbestos Laminated Pipe Covering . Pipe Covering Accessories . Asbestos Insulating Cement 2. Asbestos Cement Products; Asbestos Shingles Asbestos Corrugated Lumber Asbestos Flat Lumber :: Impregnated Asbestos Lumber ; 'Asbestos Wallboard Plain Asbestos Board Pre-Decorated Asbestos Encased Insulating Board 'l 30 . Miscellaneous Molded Products 3. Asbestos Magnesia Products: 85 per cent Magnesia Pipe Covering, Blocks and Cements ^ High Temperature Insulation, Blocks and Cement Insulating Bricks . . . Carbonate of Magnesia .. 4. Asbestos Textile Products: All Types of Asbestos Roving All Types of Asbestos Yarn All Types of Asbestos Cloth All Types of'Asbestos Listing All Types of Asbestos Tubing All Types of Asbestos Cord Carded Asbestos Fibre Made from Crude Asbestos 5. Brake Lining and Related Friction Products: ' Brake Lining and/or Clutch Facings, excepting only friction elements made exclusively of metal or wood. rs. 1 ?rn 1 .8 |; - :i i 31 THE ASBESTOS INSTITUTE . ; TWENTY-TWO EAST FORTIETH STREET ' NEW YORK, N.Y. , , Mr. Malcolm Muir October 17th, 1533. ! Deputy Administrator f National Recovery Administration ; Washington, D. C. Re: Asbestos Industry Code Index - 1002/1/01 Dear Sir: ' . I attach hereto four notarized copies of the minutes of : V . i 'meetings of the five Divisions of the Asbestos Industry held at .the Commodore Hotel, New York City, on September 27th, 1933. ' In order to conform to the organization under the proposed . Code, these meetings were celled a3 meetings of Divisions of ' i the Industry and not as Divisions of the Asbestos Institute. ' The minutes show that more than 75 per cent of the pro duction of ooch Division was represented at these meetings and that each Division agreed to the Code as'revised at the meetings. : The minutes also include a resolution, passed unanimously :;in each Division, appointing the following men to present the ;Code for the Industry and negotiate Cede matters with the ^I National R. ecovery Administration. 32 !. LHB:mn Lewis H. Brown Bradley Dewey All Divisions Brake Lining . ii A. S. Blagden Asbestos Cement Products G. R. Weber Asbestos Textile Products G.. C-. Gabriel3on Paper and Allied Products G. D. Crabbs - Magnesia Products Very truly yours, Lewis H. 3rown President. THE ASBESTOS INSTITUTE TWENTY-TWO EAST FORTIETH STREET NEW YORK, N.Y. October 17, 1933. . Mr. Malcolm Muir ;; Deputy Administrator {; National Recovery Administration , Wnshington, D. C. ( RE: Asbestos Industry Code Index - 1002/1/01 i; Doar Sir: 1 Attached is a list of companies in the Aabesto3 Industry j.who have signed the Code of Pair Competition as revised Septi* 33 ember 27, 1933 at meetings of the five Divisions of the Industry. *i According to our very best estimates the signers of the Code, to date, represent over 83 per cent of the production in this Industry. The following table sets forth the proportion of total production of the Industry in each Division and the proportion represented by the companies which have signed. ' Proportion of Proportion of' Division Pro- the Industry ; Divisions Paper Products Proportion of duction Repre- Represented .' sented by ' by Signers the Industry Signers of the Code 3-3.5# . 80# 10.8# Asbestos Cement Products IS.5 85 14.0 Magnesia Products 9.0 85 7.7 Textile Products 16.0 75 13.0 Broke Lining and Allied Products 45.0 85 38.3 Total 100.0 83.8 Very truly yours, Lewis H. Brown Pres iden.t. LH3:mn MEMBERS OF THE ASBESTOS INDUSTRY WHICH HAVE SIGHED THE PROPOSED CODE OF FAIR COMPETITION FOR THE ASBESTOS INDUSTRY AS REVISED SEPTEMBER 2X, 1933. Allbestos Corporation 21st St. & Godfrey Ave. Germantown, Phila. Pa. American Brakeblok Corp. 332 S. Michigan Ave. .. Chicago, His. Asbestos Fibre Spinning C0. North Wales, Pa. Asbestos Ltd. Inc. 8 West 40th. Street New York, N. Y. Asbestos Mfg. Co. Sabine Street Huntington, Indiana Atlas Asbestos Co. ` North Wales, Pa. The Philip Carey Co. Lockland, Cincinnati, 0. Ehret Magnesia Mfg. Co. Valley Forge, Pa. Emsco Asbestos Co. Downey, Calif. Ferodo & Asbestos Inc. New Brunswick, N. J. 34 35 Garlock Packing Co. Palmyra, New York Gatke Corp. 228 N. LaSalle St. Chicago, Ills. Johns-Manville Corp. '' 22 S. 40 St. New York, N. Y. Kessbey & Mattison Co. Ambler, Pa. Multibestos C0.. Cambridge B, Mass. National Asbestos Mfg. Co. Jersey City, N. J. Norristown Magnesia & Asbestos Co. Norristown, Pa. Raybestos Division, Raybestos Manhattan Inc. Bridgeport, Conn. Rex-Hide Inc. East Brady, Pa. ' The Ruberoid Co. 95 Madison Avenue New York, N. Y. Russell Mfg. Co. Middletown, Conn* Sail Mountain Co. 30 Broad Street, New York, N. Y. Scandinavia Belting Co. 248 Central Ave. Newark, N. J. Smith & Kanzler Elizabeth, N. J. Southern Asbestos Co. Charlotte, N. C. Standard Asbestos Mfg. Co. 822 W. Lake St. - Chicago, Ills. The Thermoid Co. . Trenton, N. J. Union Asbestos & Rubber Co. 310 S. Michigan Avenue Chicago, Ills. Worldbestos Corp. ' Paterson, N. J. 52 Courtlarid St. S. K. Wellman Co. 1381 East 49th Street 36 OY Cleveland, Ohio MEMBERS OP THE ASBESTOS IKDUSTRY WHICH HAVE HOT SIGNED THE PROPOSED CODE OP FAIR COMPETITION FOR THE ASBESTOS INDUSTRY. American Asbestos Co. Box 15 Norristown, Pa. Armstrong Cork Sc Insulation Co. ................. Lancaster, Pa. ..................... Baldwin Rubber co. Pontiac, Michigan Brassbestos Brake Lining Co. Preakness Avenue Patterson, N. J. Burrell Belting Co. 416 S. Hermitage Ave. Chicago, Illinois Carolina Asbestos Co. Davidson, N. C. Cheney Chemical Co. Cleveland, Ohio . Colt Patent Fire Arms Mfg, Co. Hartford, Conn. R. J. Dorn Co. New Orleans, La. Durwyllan Company 35-61 Kentucky Ave. Patterson, N. J. Firestone Tire & Rubber Co. Firestone Park Akron, Ohio Gates Rubber Co. ' Denver, Colo. Glendenning Rubber & Asbestos Co. Billerica, Mass. Hoosier Friction Prod. Corp. North Manchester, Ind. Laher Auto Spring Co. 26th & Magnolia Sts. Oakland, Calif. Marine Chemical Co. San Francisco, Calif. Marshall Asbestos Corp. P. 0. Box 417 Troy, New York L. J. Miley Co. ' 1462 3. Michigan Ave. Chioago, Ills. Mohawk Asbestos Division Creo-Dlpt 38 N. Tonowanda, New York Palmer Asbestos Co. St. Matthews, Kentucky Plant Rubber & Asbestos Works 537 Brannan San Praneisco, Calif. Rockbestos Products Corp. " New Haven, Conn. Rosendale-Reddaway Co. 32 Euclid Avenue Newark, N. J. E, M. Smith Co. 639 S. Clarence Los Angeles, Calif. Manning J. Smith Belting Co. 10th & Allegheny Ave. Philadelphia, Pa. Southern Friction Fabric Co. P. 0. Box 1392 Charlotte, N. C. Standard Brake Lining Co. ' Gleasondale, Mass. Swan Rubber Co. Bucyrus, Ohio Wood Insert Brake Lining Co, 39 40 725 Pioneer Bldg. St. Paul, Minn. . # * * <- * * THE ASBESTOS INSTITUTE TWENTY-TWO EAST FORTIETH STREET ft ' - '. Mr. Malcolm Muir NEW YORK, N. Y. .. October 17, 1933. Deputy Administrator National Recovery Administration l;.. Washington, D. C. . Re; Asbestos Industry Code Index - 1002/1/01 Dear Sir: Attached are four copies of the formal Application for Presentation of a Code of Fair Competition. These should replace the application forms filed with the National Recovery Administration on August 7th. Very truly yours, Lewis H. Brown President. I The Code, as printed in preparation for the public hear ing, represents in reality the fourth revision of the Code. In corporated in this Code as it now stands are many, many changes that were the result of meetings, conversations and negotia tions with officials of the National Recovery Administration and the representatives of the various labor, legal and similar boards. The Code as printed, therefore, represents a great mafay concessions and compromises which have vinally been agreed to ; ;. by the signers of the Code and represents many departures from ! ( ; the Code as originally presented to the Administration. While ; ' . j there are undoubtedly numerous changes that the members of the ' industry would like to make in the code, nevertheless it now : [ represents the agreement that has been reached and the members ^ of the industry who have signed the code and who represent a r very large majority of the total industry are willing to accept this code..as the charter of the Asbestos Industry and, if it is approved in this form, are willing to proceed from this point on in a sincere and earnest attempt to administer the provisions of the code in the interests of the whole Industry and of all ; those connected with it. Hence, we do not have any official changes to make in the ; 'Code as printedfor public hearing, with the exception of the j': j; following minor typographical errors that perhaps should be ' ij mentioned at this time so that correction can be made before the i 42 final copy of the code is approved. For your information, I will say that my references refe^ to the copy of the code printed by the United States Government Printing Office. The following errors should be corrected: . In Article III, Section 3, on Page 2, in the next to the r last line after the word 11 product ion" insert a period (1) and eliminate .the balance, of. .the sentence reading, "provided, how- j ever, that employees in such cases shall not work more than 48 : hours in any one week." 1 This clause was left in by the print-1 er and was not agreed to by the industry. i In Article VT, Section 2, sub-head C, on Page 6, in the next to the last line, change the word '`of" to "if", thus mak ing the sentence read, "and if a member of the code, any other : penalties provided for said member's Division of the Code." This is a purely typographical error on the part of the printer. For the benefit of those interested, I should now like ' briefly to present some data in reference to the Asbestos In- ; duetry that may have some bearing on tho acceptance of the Code. Up until the nevessity'for organization was brought about through the passage of the National Recovery Act, the Asbestos Industry had never been organized as a unit. Between the : middle of May and the end of July, 1933-, those manufacturers in the United States.who have been competing in the markets with products made from the common mineral asbestos were . I 43 brought together for the sole purpose of cooperating with the Government under the national Recovery Administration. Asbestos is a peculiar, fibrous mineral that has been known to man for many hundreds of years. Legends handed down assert that it was known to the early Greeks and that the EmperorCharlemagne had a tablecloth made of it, which, when it became .dirty, was cleansed by throwing it into a blazing fire from which it was extracted without harm. The mineral is fouqd in large quantities in three impor- I tant areas; namely, Canada, South Africa and Russia. There ! j: are also deposits, some of which habe been mined for many years, !. .I ; in other countries, the most important of which, perhaps, are ; |j those in the United States where we have several mines in ; j! : !| Arizona and at least one in Vermont. But in terms of tonnage i the greatest quantity of fibre is produced in the three areas ; which I just mentioned;* ; These facts, however, are only of general interest since ; ' the Code here presented does not cover mining but only manufac turers of products containing some asbestos fibre and also includes some closely allied products in which there may be |; no asbestos fibre but which are manufactured by the same group |j of manufacturers and sold through the same channels of trade ; i| or to the same kind of customers. ; |; While asbestos fibre has been known to man a long time, J _. ' , it is only during the last seventy-fives years that he has j 44 really learned to make use of it in a substantial way in com mercial products. In order to understand the complexity and diversity of the products manufactured by members of the Asbestos Industry, it is necessary that I mention very briefly now this Industry came into being in this country. The-earliest manufacturer, starting just prior to the Civil War, in this country, had only a brief knowledge of asbestos fibre and its peculiar resistance to heat and fire, to weather and decay, and that it was the only fibrous sub stance having these properties that could be spun and woven. Thu pioneers in the industry started out to find uses for this mineral. With the crudest, of implements and with the most primitive type of research they began to create the products that are now commonly used by most of the major in dustries in the world and to organize companies and build fac tories to manufacture and sell these products. Over the years the products increaoed in number as the needs of customers were determined and the means for satisfy ing those needs discovered. The first two types ofproducts that were developed were made from asbestos paper and asbestos textile products which were made by spinning and weaving the asbestos fibre. Next came asbestos cement products in which the asbestos fibre is used as a reinforcing agent. These products were 45 developed after Portland cement became popularized as a build ing material. . In this same class came the use of asbestos fibre as a binding material in high temperature insulation products which were developed to prevent the transference of heat from boilers and pipes. And-, last but not least, the largest group of all, which is the brake lining and related friction products materials, which with the advent of the automobile developed into the largest use in terms of dollar volume of any of the groups mentioned. Asbestos has also found a large use in the manufacture ofpackings which are used in almost every industrial plant in the Country. The group of manufacturers wno make asbestos packings might well have become a section of the Asbestos In dustry were it not for-the fact that packings are also made from other materials such as rubber, copper and graphite with the result that these manufacturers have organized themselves as a separate group and are presenting a separate code of fair competition to the National Recovery Administration. As time went on, employees who had learned the business with the older companies separated themselves and organized competing companies, or other groups of citizens seeing the success of the early.pioneers organized companies to produce similar competing products, or inventors who had discovered 46 new adaptations to meet the needs of industry organized com- j, panies to develop, manufacture and sell products made in ac! ; cordance with their new inventions. j: i ' I ; L Thus it came about that we have companies in this inaus- i try who manufacture all of the products listed in Schedule I ; of the Code, and we have other companies who manufacture part |j of these products but not the balance and we hav also companies; 1 who manufacture only one group of these products. ; I; With such a situation it is only natural that while the i .1 : basic interests of the manufacturers may be the same and where-, : as their iproblems may be similar, nevertheless because of the ; ii .i wide diversity and lack of standardization of the products ! i; manufactured it was necessary that we divide the industry into ; ,I; ' )> several groups whose problems wero as nearly similar as possible, ji For this reason the basix organization of the asbestos ti i; industry id divided into five divisions. Each manufacturer : ' i : has membership in one or more divisions depending upon whether \ * or not he manufactures the products classified in each division. Hence, you will understand that some manufacturers are members of all five divisions, others are members of- two or more, and still other manufacturers are members of only one division. i; While this sounds complicated, it is in fact relatively ;! : ij simple. It is not an arbitrary classification but rather one ; I ' i j that is a result of long practical experience and more or less '1 ' . I the manner in which companies themselves subdivide their 47 business. i There is one other general statement that I think should ; be made in order to clarify just what the Asbestos Industry ; consists of: namely, that a very large number of the com- ; panies who are members of the Asbestos Industry also manufac ture other products that are not related in any way to this manufacturing group and are therefore classified under other j codes that are being submitted to the National Recovery Admin- ! istration. In thebeginning, %* some of the members ofthis.industry j ' were dealing with more than fifteen different codes and it was ! in an effort to simplify this problem to some extent that the Asbestos Industry wasorganized and at least five of these j smaller groups were brought under one code. ; Another fact that needs to be understood about this in dustry is that it manufactures a great variety of products. Items in which any one company sells more than a few hundred thousand dollars a year are raro and the business itself Is characterized by a relatively small volume of sales on any particular item or line. The important corollary to this fact is that relatively little advance planning: is possible and by far the greatest majority of the products in this industry are I ' It made up after the order is received from the customer. j It is for this reason that the industry must be given .' . . great flexibility in the number of hours of work permitted so ' i : i ! 48 j ii that it can take care of the needs of the many industries which; this industry supplies. ? For the purpose of this Code, therefore, the Asbestos Industry is composed of manufacturers producing and selling products made wholly or in part of asbestos fibre and includes some few items that are so closely allied as to be practically inseparable bpt may not, of necessity, included asbestos fibre. Schedule I of the Code on page 12 lists the five divisions of the Asbestos Industry and the products included. Members of the industry are therefore companies^with their subsidiaries, affiliates andagencies who manufacture . ! j the products listed in Schedule I. ; i jIn explanation of the figures that I am about to give you .| on the else of this industry, I wish to say that in some cases ; it has been most difficult to secure any adequate figures for tfc the reason that most of the companies keep their figures on . 1 their business as a whole and a large number of the members of | this industry also manufacture other lines ofproducts that are not included in this industry. Hence, there was no reason in years past for segregating the figures on the particular prod ucts now included in the Asbestos Industry and while diligent effort has been made to secure adequate statistics, it is im- t possible in many instances to get them covering past years. 49 However, from those data collected It appears that in 1929 : ; ' this Industry as defined in tljis code employed approximately ? 9 workers and that on thii basis total employees engaged : in this Industry must have totalled between 10,OCX) and 11,000 i employees. Sales amounted to 60$ of the 1929 level and "were about 38$ of the pre-depression value. j It must be kept in mind that in dealihg with these averages ; the figures will toary considerably for the five Divisions of the ! Industry. For example, some of the products of certain Divisions are largely used in the building Indus try. As you know, the . - .* . Dodge statistics for contracts let in the twenty-seven States i f I east of the Rocky Mountains showed for the five years prior to 1930 an average volume of building in excess of $6,000,000,000 j per year. In 1932 th* total was less than $1,40(5^00,000 and in I 1933 the total would appear to be only slightly in excess of $1,000,000,000 which is a decline of more than 80$. Hence those , products that are directly related to building suffered most ; and unempldyment developed to the greates t extent in the factories making those products. ' Moreover, as a result of the financial difficulties with which the country is confronted and the lack of mortgage money, . there has been only a very small revival so far in the building : i business and hence inthose Divisions the figures'on re-employment are not as encouraging as we would like. ' " Figures as to capital investment in this business are in- j i j 50 "^complete. The reason for this is that the members of the Divi sion have been unable to segregate accurately the `proportion of their plants devoted to the manufacture of asbestos products* However, I estimate that the capital assebs involved in this industry, if they could be properly segregrated, would approxi- ; j mately be at least $50,000,000. In this Industry there are 58 different companies. There | are, however, many subsidiary companies which are not included j ` in this figure. These companies operate 71 plants. Most of the. j! plants are located East of the Mississippi River and North of the s * l Ohio River. A few are located in the Pacific Coast. There are >. * ` also a few plants in the Southern States although the proportion ! .' - *' : of employees in the south, as defined in the Code, amounts to i;; less than 4 per cent of the total. The difficulty, however, with ' ; these plants in the Scubh is that they either also manufacture i textiles and operate under the Textile code or are in localities i j. adjoinging factories who operate under the Textile Code and it ' ie therefore imperative that Insofar as these plants in the . : South are concerned they be given consideration unti}. such time i as the Textile Industry in the South changes the basic conditions l: under which they operate. " , It has been impossible to secure complete detailed statis- !| tics as to exact capacity of the factories engaged in the manu- j ;j ' ! j facture of asbestos products. The reason for this is that there ; ij . ; ii j are so many different items that can be manufactured on the iI j given machinery that the amojnt at capacity that could be turned j li * ' . I i 51 out of any one item would be very large whereas the necessity ' of producing goods in the variety in which the orders are * ` actually received makes it almost impossible to arrive at any ' i accurate figures as to capacity. However, it is estimated that ij ** . . :: even in 1929 there were only a few plants working at actual. . capcity and in that period of the greatest volume ever known to ii the Industry, the plants might still have takdn care of at least *25 per cent volume. Hence It can be seen that in 1932 when sales j. volume was off 62 per cent, the plants were operating at only " about 30 per cent of capacity. . ,* j The Asbestos Industry as covered by this Code is dependent "largely upon other basic industries in this country, as" followst! . > 1. Automobile and truck business . * " : i i 2. Building industry . .1 3. ElectricaLindustry . 4. Oil industry ti . -* _ ' .. 5. Chemical industry t- 6. Railroads . 7. steel and- iron industries ' !i - 8. Miscellaneous * : : A brief review of that list will indicate that practically . :| all of the products of the Asbestos Industry are primarly used ! in what might be termed capital asset expenditures and in the '. !> ** ' ii repair and maintenance of capital goods. Moreover, it is com- ij . ji mon knowledge that most of the capital goods industries have ' j ! ! : j . i i tffcred a very large depreciation of their volume with conse quent excessive Ihaees. The tremendous loss of volume In these industrieo has ; naturally been reflected in proportionate losses to the Asbestos Industry and has resulted in not only great hardship to our employees* but has also brought losses to the companies in the Industry. While it ie impossible to segregate the published . statements;of companies to show only the profits or losses as applied to asbestos products, nevertheless I have taken the \ published statements for 1933 of nine companies out of the 58 and these figures may be considered typical. They Indicate net lOBses of $3*918,168. Furthermore, it is safe to say that with very few exceptions the companies in the Asbestos Industry lost money last year and 5' * the extent that they may ha#e reduced their losses in the fir&t sox months of this year was due largely to the further reduction of expenses. It also indicates quite clearly why it required considerable courage for the employers in this Industry to sign up under the President's Reemployment Agreement and to deliberate ly undertake to increase their costs lnthe face of the conditions then existing. l .^ t However, I am proujtd to state that the first act of the j , Asbestos Industry, after its organization at the end of July 1933, '; ; was to come to'Washington and file a Code of Fair Practice and 1 u ij sign the President* Reemployment Agreement. From August, prac- ji 1 tically every company in the Asbestos Industry has been flying I ' ' ' " r I 5 ; the Blue Eagle and doing their part in the war on the depression! . The minimum wages and maximum hours in the proposed Code . of Fair Competition for the Asbestos Industry are so nearly ; I 1 the same as those under which the Industry ha8 been operating ; i l since August under the President's Reemployment Agreement, that ;! a few facte as to the changes that have taken place in employment, hours of work, and wages, bear directly on the reasons why we it are asking-for. a continuance of* a 40 hour, week and a minimum . * \ j; of 40 in the North and 37-^$ in the South. . j 5 /e ' i : These facts have been gathered from members of the Industry ' i ;; and cover 85 to 90 per cent of the wage earners engaged in manu-, t. i facturing products covered by the Code. ' ij ` ... . "' ...... ' j ' i Ih-the^following data, I will give you the outstanding MJ f-' * . ' . ; faeto. ' .. * 'I . ; A. Employment. If we take the number of factory employees in . :I 1 i ! ; 1929 as 100, then in February 1933 employment had declined to 59. '" ; I1 ; Thi6 means that 41 out of every 100 employees engaged in the Industry in 1929 were no longer employed in February 1933. j ;| However, the effort of employers to spread employment is j indicated very clearly by the fact that if we take the number of man hours in 1929 as 100, the number utilized in 1933 was only ;38, thus indicating that whereas the number of man hours was ; > `* -i jreduced 62 per cent. This indicates very clearly that employers! ;| i i1j in this Industry were making every" possible effort to keptogether* i! ij jas many of their trained employees as they possibly could. : .' " .j j In May 1933, Spring business had brought some small improve- { -[ I i` 1 54- ment in employment, raising the index from 59 to 62 end the men hours employed from 38 to 48. ' ; I However, at the endccrf Aughsi, after the Industry had edop- ted. the FreeidentTs employment Agreement, the index of employ ment had arisen to 90, thus indicating that at that time the In dustry was employing within 10 per cent as many employees in - factories as in ISESj whereas the 'r.oex of n.an hours employed had only, risen to 71,...thus., indicating clearly the' effect of the 40 : hour week in the spreading of employment. . j . If we look at the figures from the standpoint of average !* hours worked per factory emoloyee, the same change is evident, .. ` In August 1929, factory employees worked on an average of 52.8 ; ! -j I hours per week. In the last week in August in. which the statis-: .* ' i '! tics were taken, there was- a' decrease in the average weekly hour's . i worked as compared with 3 929 cf 28.8 oer cent and a decrease" of I ' ' * 'j 9 per cent as compared, with Kay cf this year. ' ; ** . v* ?! If we analyze the statistics on the average hourly earnings,! we see that in August 1929, fhetaveragel raterperrhour:. of a employ-.1 eee in this industry was 52.9 cents and I amy say by way of ex- planation, that this Industry is characterized by a large group . of unskilled labor at close to the minimum rates and also a rel- i atively large group of highly skilled who receive a great deal j .| more than minimum wqges. . > As stated before, in August,*. 1929 the average hourly earnings were 32.9 cents. In May 1333, they were 42.7 cents. Thus the < 2 55 increese in hourly earnings since May of this year amounted to 15 per cent; and the decrease in hourly earnings between August 1S29 end August 1933 amounted to only 8 per cent, which is much more than offset by the cost of living as compared to 1939. Figures compiled from our Industry indicate that in August 1929 the average earnings were $37.97, due, as you will under-? stand, to the fact that the average factory employee worked al- most,.53 hourqv per . week.. In May 1933 when the average hours wojr- ' i ked was 41.4, the pay envelc-e contained on an average of $17.49 and in the latter part of August, as a result of the changed o. conditions brought about as a result of the President's Reem- ' ployment Agreement, employees average weekly earnings were ; $19.43 for 40 hours of work, equivalent after correcting for a' 23 per cent drop in the cost of living to $25.30 in 1929. . . To summarize, this Industry with a 40 hour- week under pres ent conditions has been able to give w\fcrk to more then 90 per : cent of the factory workers which were employed in 1929, even . though our business in dollar volume is still less than 50 per' cent higher than the minimum required by the G9de and Show a 15 per cent increase since May of 1933. In further reference to Article IV of the Code covering wages, May I point out that Section 7 which reads, "no distinc tion shall be made between male and female employees where the same class cf work is performed", represents a distinct advance' in the actual conditions that have,, occurred in the Industry ' 56 for over seventy-five years ana that this forward step repre- ! i sehts a distinct increasa in cost to the manufacturers even tr_ though in August 1933.only about 10 per cent of the total fac tory employees were women, . In reference to Article V of the Code covering Child Labor, I wish to stste the Industry is at the present time employing no person under 16 years cf age and he.s agreed that the Code in i elude the-provision that no person under 18 years shall be em- j ployed when operating hazaradoue manufacturing machinery. : That part of the factory cost of the products of the Asbes-; toe Inou6try represented by wages paid to labor, varies for dif-1 ferent products from 15 per cent to 40 per cent. Large items l are, of course, the cost of raw materials and the cost of power and steam for processing, as well as the charges on the large i i capital investment necessary to manufacture these products. In! principle, the majority of the members of the Asbestos Industry ere not opposed to the payment of higher wage rates but are only concerned with the problem of business recovery to a point where the selling price can cover the costs cf doing business, in- ; eluding such labor costs, end leave a reasonable profit for the stockholders who have invested their savings in these businesses This Industry sells its products primarily to other large indus tries and in the building construction field. The building con- 1 structions field will lag behind the general recovery of business i I by as much as one or-two years i f we are to judge by the history 4 of the past. 57 In selling; to large industries, we are confronted with companies who themselves st* having to meet rising costa of doing business end whose purchasing agents ere doing every thing they possibly can to keep dov:n the costs of their raw ma terials until the time element will enable them to Eucure cTices for their products adeouate to cover replacement costs. S Hence the Asbestor Industry has gone as far as it esn, ana perhaps further then it should in the minimum wages outlined in the procosed code. Ksny of our products are sold to industries on the basis of annuel requirement contracts so that costs of advanced selling prices remain where they were set at the end of 1932. In other words, the time element in the Asbestos In dustry as & whole moves slowly. The recovery of replacement costs will crove difficult end particularly as it applies to 1 meny of the smaller comoeniee whose capital reserves ere Small^ I nr.sy well {move embarrassing end dangerous before/ the volume of |!~ business increases to such a point that they will be able to support increased, labor and raw material costs, as well as char ges on fixed assets capable of producing several tim.es the cur rent volume of business. In reference to Article III, Hours of Labor, I wish to re fer again to the fact that employers in the Asbestos Industry are not opposed eventually to shorter hours, if in fact this will enable the country to absorb the unemployed. But the re duction from 52,a hours in 1929 tc the present 40 hour week, 58 j Is quite a remarkable sccomplishment, considering that In dustry generally required severs! deced.es to reduce the aver- i age working hour b of factory employees from score than 60 to. about 40. Furthermore, in our industry further reduction of \ hours could only be accomplished if the teetile industry were to tricke the came readjustment. I would. also like to call to your attention that in this . .................... , -v. | Code, provision is made-for'payment for over-time wcrk, This Is an innovation in the Industry. It representa a very ig | concession to the viewpoint of the Labor Bosrd of the u.R,A. j and has been agreed to by the members of the Asbestos Industry i only because it acts as a penalty to check the amount of oveh- time work used. i The provisions of the Code under Article III have been ; worked out as a result of the practical experience of the members of the Industry in connection with the President's r Re employment Agreement. They are In no sense intended, to ' i evade the essential purpose of the Act which is to increase ; purchasing power and employment, With that the members of the Industry are in sympathy. ,,r But flexibility is of the utmost importance in our In- , duEtry and without flexibility it is practically impossible ! to onerate without excessive cost, Tnile I mentioned the importance of flexibility before, | II I would like to amplify my remarks;'somewhat on that subject, I 6 59 To take s very concrete case, I would like to mention the Brake Lining Division of the Industry, which together with that portion of ti e Textile Division B.EU'jfecturere yarn out of which Brake Lining is woven, represents 50 per cent or more cf the Industry. One of the large markets for Brake Lin ing are the manufacturere cf automobilee. Three automobile coit- par.ies manufacture 75 per cent of the number of automobiles manu factured each year. Speaking in round figures, about' ten feet 1 of brake lining is recuired for each new automobile produced. i Automobile onmnaniee are farccue for having developed the system cf having their raw materials come In one Poor of the factory and applied directly to the car with s minimum cf inventory on 1 band. The result has been that the manufacturers who supply the Brake Lining to the automobile manufacturers have had to perfect their croceseee to a high defree cf efficiency in order to meet this basic requirement. Production schedules cf automobiles change frequently and telegraph srd telephone crdere are a com mon occurrence which require the utmost speed in manufacture and delivery if the entire production chain of an autobobile plant is to be kept moving. Hence the Asbestos Industry carrot agree to fixed rules that absolutely limit the hours of work. TThere there are so., many dif ferent items as to size ana kind manufactured, it is imperative that employees engaged in the preparation, care, 3rd maintenance of plant, machinery, and production facilities must be able to 7 60 set up end change ever tsefcinee st times that no net interfere with the rejrul&r production run* And v.hile we in thie industry do not have very many continuous ;recess workers, nevertheless, where they are employed, it ie essential thet rigid lijnitfctione on these processes he not imposed. . Moreover, c great mieny of the factories engaged in manufac turing' Asbestos products ere smell, r.ecess 1 teting many of the employees being skilled in more than one activity end thus gees- * - l ' u , . . ` . - ir.gr from one operation to another. Fct example, from the statis tical reports turned in by the various Divisions of the Asbestos Institute, the Departments cr Factories engaged in menufecturing these particular products are tabulated as a total of 62 olanls of which 3S employed less than 100 factory workers; and in the Brake Lining Division, cut of 23 plants, 15 employed less than . 100 "crVerfi. t In addition to the above, this Industry is confronted with a very wide seasonal variation in sales. In order to get speci fic data on this, we asked the members cf each Division for In formation as to the percentages of total sales for the'year that are shipped in eachc.onth cf the year. Vfhile these tables involve a great many figures, a careful analysis Indicates that on the average the volume of production in the highest month cf the year is times as great as an the lowest mongh and in some \. Divisions of the Industry, the ratio cf the highest month avera ges three times as great as in the lowest month. In many compan ies it runs up to 10 to l a Tfcifi t on tbs face of It, indicates not only & need of reserve capacity, bat it also inoicatee clearly the need of I; flexibility unless the industry resorts to constant hiring end firing of employee?, which ie certainly unco ticf e c tsry to the j emolpyee end to the employer. Only s fraction of the problem can "be ta.ken cere of by manipulating inventories because change? in scscificfrlions take place to such an extent that only In a relaiivhey Email portion of the business can inventories be . built up to take care of seasonal peaks. `" Article VT of the Code covers administration. The Code I i iauthority is set up as a representetive body of the Industry to administer the Code and has no connection with any trade : ' ' J . ' ;j. cesociation or institute, Membership in the JQivieions are ocen to any member cf the Industry end theipe ere no Inttouliable re- r strict ions, upon such membership. One member of the Code Au thority is elected by a two-thirds vote cf tbemembere cf each Division iiuii the Division re(.rese;'.t6tiv;3 thus chosen elect an additional member. i : t Sub-Code Authorities are set up in each Division to ad ? 'minister thoffle provisions of the Code that deal with the sale of :goods and unfair trade practice aoto of the members of the r> Division. Members of the Code agree to bear their proportionate l; share of the expense of the Code Authorities and its activities | : and no effort is made to assess Dart of these expenses against a j. - ! .... member of the Industry who ia not a Eisner of the Code, The duties and powers of the Code Authority axe defined, i all of which are subject to the review of the AAttinl.et'rp-tor of * :the National Industrial Recovery Act, Ample prevision is made i* for appeal on any point on the part of any interested party to i` the Code Authority or to the Admini stxator &o that the rights of f ." 'every member ox the Industry are amply protected. Thus unfair t requests, for cor.fidential Information can be the cause of an S:an*neal to.the Administrator. a ; Pro vision is made for the development and promulgation of codes of ethic a Ejid merchandising plans best calculated to promote fair competition in each Dlcision, Such plans cannot at fth.ie time be made a part of the Code because come of them are .still in process of being irorked out. Furthermore, as worked '.out they must be eesily changed to correct mistakes and abuses, !_ If the Code itself had to wait until each of the live Divisions ij had irrevocably agreed upon all the detailE of a common nerchan- !;,. dicing plan, I am afraid that the term!nation data of the national Industrial Recovery Act would arrive "before any code whatever was adopted. Hence if the first problem of this Act, j * ; which is the reduction of unemployment and the increase nf pur- j, chasing power, is to become an accomplished fact, permanent codes ,j must be adopted and provisions must be made for industry Ip-ter h ? to solve their many complicated and difficult problems to what- 1 ever extent the large majority of the Industry is able to agree ; }, - upon such plans. Article Vll covers simply a statement of recognised un :: trade practices. It is -written in general terras primarily be- : cause trade oractices differ in the five different Divisions of , i the Industry and the uniform detailed definition of a trade '' practice might not be acceptable in all Divisions. '! - Articles Vlll and IX of the Code are designed primarily i to bring about some improvement in the comoetltive conditions i that have been charncterietic of the Asbestos Industry for many ,3 years. Because of the large number of companies engaged in the ji ! } Asbestos Industry and because of the lacs of standardization of i products, Lliia industry has been charecterlzed for years by cut throat competition, price ware, secret prices and rebates, nie- classlfication of customers, selling below cost and other unethical and unfair practices which have been destructive and |! disastrous to capital in our business and which has also had : iits effect upon labor conditions in our business, because.if \- | :! capital cannot earn an adequate wage and if unbridled competi- ` ' I 64 tion exists, then labor has to suffer also* Hence in out Code you will find provisions which, it is hoped, will tend to correct j . at least pc.Tt of theEe abuses both for the benefit of capital : and labor equally.' Moreover, competition is so much a part of v* ' this Industry that our customers will also be protected, t As a result of the rapid growth of this Industry from !1914 to 1929, it Is at present over-built and has the capacity j- . ,, .. - v, . . to produce three times more than the demand requires. This . [ over-capacity was developed primarily to take care of the build- ii . ing constSuction industry as well as to keep pace with the tre- C mendouely rapid development of the automotive industry and the 4 : oil Industry. Anyone who studies these facts carefully will realize that this Industry is not going to get bach to the l volume of the boom period of 1314 to 1339. The problem that con- a. fronts this Industry is trying to organize ourselves no as to j make a fair profit on a much lower volume of business. But it ;i i is a very serious problem that confronts both the stockholders, I | the management and the employees in this Industry. The solutions of this same problem that are being dieI cussed bji some of the natural resources industries are im- i, j. practical for this Industry, ",'ith such'a diversity of products and such a lack of standardization of specifications, there is ii no possibility of stabilization and economic planning through !: ii pro-ratinv of production. For is there any inclination nor it intention on the part of the Industry to fix prices except ] 65 fr: irft`i . insofar as certain items are controlled by patent rights ad- X ministered by owners of patents. k it * We recognize clearly that merely being public as to .! prices, terms and conditions of sale will not solve the basic V fi _ j: problems of this Industry, but it is hoped that this forward step will at least eliminate some of the unfair trade practices i t that have existed in the past and will tend to eliminate unfair ` discrimination as to customers and tend to bring about stabili- i zation at some level. Whether stabilization takes place at a !. profitable level can only be determined by the bitterness and '.is extent of the competitive struggle and the economic factors in- 4. volved, but with the provisions of publicity enforced, it will at least be a struggle in the open. it Article IX, it is hoped, will serve in some measure as a brake to prevent the possibility of soma investigation taking place if destructive competition does carry selling prices below cost. But It also provides that, pending such investigation, I the hands of one competitor shall not be tied by a rule of law promulgated in the Code while a competitor who has developed an economic advantage or pretends to have one takes away his business without a struggle. Moreover, in those cases where one member of the Indus try has a low cost as the result of his enjoying a large colume order (for example, the Brake Lining business of Ford, General Motors or Chrysler), it is obvious that unless a competitor is i 'allowed to meet such a mcaberc price (this regardless of hie own i present cost), then such a competitor may never he able to build i;ii ' [up enough business bo to die tribute hie overhead as to meet his ! competitors cost. Thus without such a provision one member of | the intustry might by rule of law be given a monopoly and small [ Industriee prevented from growing. y*' Clearly this is not the , intent and purpose of the Act. a I! jj .. In brief, this Code provides fox competition, but it t also makes possible the gradual working out, by members of the ! , * Industry, of rules and regulations for the conduct of this F _business that will change the competitive struggle from whet r. i might be likened to Indian warfare to a more logical use of 3 \ . competitive weapons. It is hoped that, by so doing, the Industry ?will gradually bring itself out of the depression and into a j! |l scondition of prosperity tnat will enable it to pay fair wages ' to its employees and taxes to the Government. i; Article X of the Code contains the labor provisions as ..prescribed by the national Recovery Act and, in addition, Section 4 which is commonly known as the "merit clause1'. This section has caused a great deal of argument and i: discussion. I do not wish to go into the patter again here |je ;because I am sure that we are all familiar with both sides of | the question. The members of this Industry, however, are firm in their conviction that Congress, in passing the National J. O1 Industrial Recovery Act, covered only one side of a problem .which like most problems has tvro sides* ;* The Asbestos Industry has neveT been characterized by : : labor disputes. as pointed out previously, most of the i : factories are small and the contact between management and labor : i very close. Hence this clause is inserted in the Code not to Jcreate controversy but to clarify, if clarification is needed as a means of avoiding' misunderstanding in the future and to f j; continue a basis of understanding that has existed in the past. I In closing, I would like to call your attention to !i Article XI, Section 7, which reads: "By presenting the Code i ', the members of the Industry assenting hereto do not thereby i Mr consent to any modification thereof, and reserve the right to i: object individually or jointly to any such modification," i This provision does not in any way attempt to restrict the I i *' ;; right of the Trccident under Section 10 (o) Title 1 of the r Act but it does indicate that members of this Industry have r i signed this Code as written and if any changes are made therein, : then we must obtain their consent before their signatures can be binding. This provision is not inserted with any intent to make \ more difficult the oromulgation of the 6ode of Fair Competition i" i ! . for the Industry but siinly because the Asbestos Industry is ! ; ' extremely complex and provisions that may be <ncceptable to ; 0ne Division of the Industry may be entirely unacceptable to 63 , another Division because the conditions under which it operates i* i; are entirely different. Hence it would be eminently unfair for even a well-qualified representative of a Division to bind a majority of the members of that Division without their knowledge, i'1i or consent, In conclusion, this Code of Fair Competition represents m the re evilt; of months of work by the members of this. Industry and. their acts to date indicate clearly that they are sincerely and * i earnestly trying to carry out the purposes of the national 1 Industrial Recovery Act. - This is the first time that the j. Asbestos Industry has ever been brought together in a unified j- 1 , * group capable of constructive work. The extent to which this ! I; Industry will continue to operate as a unit beyond the expire- is r./ tion of the President's Reemployment Agreement, which expires . the end of this year, will depend largely upon the promulgation ! by the national Recovery Administration of this Code of Fair Competition. I hone that the time element involved in compiling end promulgating such a ccce is therefore as short as possible. 1 ,, . OTSIilTH Hr. Administrator, I would like to reserve permission, FLS AT 11:00 if you will give it to me, to later Eubmit some few other facts, j; Assistant Deputy Erady: You may do that. \' \ 69 7SMITH is :n$e TJTN 'BESTOS iDUSTRY )-19-33 Assistant Deputy Brady; Ur. Brown, I simply want to say: I here that If the future wort of your Institute is to be judged 1 by the way you have prepared the code and prepared this brief, I think you are going to have wonderful success. I want to compliment you and your Code Committee on the information that has been packed into this brief, and I want to call it to the particular attention of gur Research Depart- ! i ment , Ur. Spencer Reed, for study, before he prepares hie re- , port, and aleo to our labor representative, Dr. Edmund. Eckel, for hie study. We will take up the code, article by article. Number 1 is standard. There is nothing on that. Article IX. Ur. George W, Hills, of the Philip Carey Manufacturing Company, has asked to be beard on that. STATEMENT 07 MR, GEORGE D. CRAB33, President, THE PHILIP CAREY MANU FACTURING COUTANY Ur. Crabbs; We desire to submit thi,p brief to clarify certain things. j. Assistant Deputy Brady; Are you Ur. Mills? !' I Ur. Crabbs; George- D. Crabbs. j; , 1 desire to submit this brief, as I have suggested, \- I ? clarifying and modifying Article IX, Section 5 (a), and Arttele; I 70 , XI, section 1. t , I have a copy, lir, Administrator, and want to submit it. c Assistant Deputy Brady: It may be put into the record i. at this point. 1 (The brief referred to is as follows:) CODE CF FAIR COLEFETITION FOR THE ASBESTOS INDUSTRY II : BRIEF OF \ THE PHILIP CAREY 2u!ANUFACTORING COMPANY FILED AT THE PUBLIC HEARING OCTOBER 19, 1933. The Philip Carey Manufacturing Company, a member of the Asbestos Industry, suggests modifying Article II, Section 5 (a) and Article XI, Section 1, of the proposed Code of Fair Compe- { tit ion. tHf. ' The Sections with the modifications we arequeBt are Bet fbrth below and for convenience we have underscored the por- ! tlons which we suggest adding. Article II, Section 5 (a), embodying our propose amend- i ment would read b follows: I i The term "affiliates'1 means legal entities which, by ii i contract with the manufacturer, performs the manufacturer's ; selling function -e--x---c--l-u---s--i-v---e--l-y*-- for such manufacturer -i-n-----a--n----e---r-.-cl--vu 'ii territory. it doeB not include jobbers, dealers, apply- t ing contractors and other such customary channels of dietribuiI:! ; tion which do not coma within the above definition. :i ii Article XI, Section 1, embodying our proposed amendment 71 would, read as follows: For the purpOBOS of the code, all transactions between manufacturers who are membere of the industry and their respect ive subsidiaries or affiliates, as defined in Article II, Sections 5, 5 (a) and 5 (b), shall be considered as interdepart mental transactions of the manufacturer. No such manufacturer shall sell to Buch subsidiary or affiliate unless such subsidiary V ;: ' J '> or affiliate shall agree in writing to conform, and does conform, to the pertinent provisions of this code and also agrees to maintain prices, terms and. conditions of sale provided for in the manufacturer's current published prices, terms and conditions of sale. A manufacturer shall be responsible to the full extent of the penalties provided herein for any and all acts by such manufacturer's subsidiaries, or affiliates, or agencies, under this code. The Philip Carey Manufacturing Company is one of the large *? k ,i> companies in the Asbestos Industry, haring been manufacturing and selling asbestos products for upward of fifty years. It sells its products through the Philip Carey Company, a wholly ,owned subsidiary of the Philip Carey Manufacturing Company. In this Industry there are many different methods of distribution, but for upward of twenty-five years the Philip Carey hanufactur- r ing Company and its subsidiary, The Philip Carey Company, have consistently used two methods of distribution. (1) Branch offices of the Philip Carey Company located In va.ri.uu6 cities throughout the country and operated to sell jCarey products In defined territories. (2) District Distributors under contract with the Philip Carey Company, allotting to the Distributor an exclusive terri tory, in which exclusive territory the distributor has the exclusive right to sell Carey products. (These District Dis- j tributors correspond to the affiliates provided for in the Code submitted.) In selling and distributing The Philip Carey Company has upward of seventy branches and District Distributors. Of this number thirty-five are District Distributors, These District b Distributors perform in the selling and distributing of the products, the same function that a branch office performs. This 1i Distriot Distributor method of distribution has been used con tinuously for upward of twenty-five years and many of the pre- ; sent District Distributors have served in the same capacity throughout that entire period. These District Distributors have contracts with The Philip Carey Company, many of theca being ten year contracts, under which a separate territory 1b provided for distributor and he is given the sole right within that ter ritory to sell Carey products. These contracts are exclusive : in that they give to the distributor the exclusive right to sell 4 1 Carey products in an exclusive territory. i -. In territories where the Philip Carey Company does not nave District Distributors, it has branch offices. The District; 73 v Distributors In their respective territories function Just as the branch offices function in other territories. This' method of distribution through District Distributors under contracts, covers a very large portion of the United States. For instance, District Distributors are located in: Albuquerque, New Mexico . Birmingham, Alabama . Buffalo, Now York Chattanooga, Tennessee Chicago, Illinois l Cleveland, Ohio i# - ' Denver, Colorado ] El Paso, Texas * Ft. Smith, Arkansas Jacksonville, Florida Los Angeles, California Memphis, Tennessee Minne&polio, Minnesota. New Orleans, Louisiana New York.City, New York 1 Portland, Oregon '*T .jJ1 San Francisco, California ? Seattle, Washington Washington, P. C. and other points In the United States. This method of dietribut- 74 ion is the established, policy of The Philip Carey Manufacturing Company. These distributors having the exclusive right to Sell Carey products each in his own separate exclusive territory, with branch offices of The Philip Carey Company each operating in another like territory, provide a complete and thorough .diR- tribution of the products of The. Philip Carey Manufacturing Com- |:party throughout the United States. m , . . . The amendments proposed and suggested above to Article II, j Section 5-la), and Article XI, Section 1, are for the purpoee of : bringing within the scope of the code the method of doing busi- . ness through offili&teo. Thece affiliates oorreepond under the definition with the District Distributors which The Philip Carey Manufacturing Company and its wholly owned subsidiary, The Philip Carey Company, have been using for years, a method which ! because of contracts they are required to continue. The proposed amendments enable the continuation of this method of doing bus iness without in any way interfering with existing contracts, , having several or more years to run, with upward of thirty District Distributors. By inserting in Article II, Section 5 (a), the restriction : as to the affiliate having exclusive rights in an exclusive : territory, there will be no overlapping of territories between :affiliates of the same manufacturer which would tend to confusion ;! in the Industry and would probably result in Unfair situations f' I , ' I 75 ''i arising as well as difficult pro' blems reg.arding violations or alleged violations of the provisions of the code. With an affil iate operating in an exclusive territory exclusively for a given manufacturer it would, in so far as that territory is concerned* be a comparatively simple matter to trace the activities of that member of the Industry and thereby reduce the problems of the ^Code Authority and the Administrator. . ... .J ., By our suggested amendment to Article II, Section 5 (a), we also narrow the definition of an affiliate so that the affiliate . will approximate more closely the branch operation by giving the ' affiliate the exclusive right in an exclusive territory to Rell to all classes of trade in that territory just as a branch would if located therein. The addition to Article II, Section 5 (a), of the words ."which do not come within the above definition" we submit clari fies and more clearly, defines affiliates by excluding from tfe definition of .affiliates any and all customary channels of die- tribution that are not legal entities having a contract with a manufacturer of the character provided for in the definition of affiliates. The proposed addition to Article XI, Section 1, tends to place these affiliates or subsidiaries, in the same position, having the same obligations and being liable for the same penalt- i .. .lee ar a manufacturer or a branch of any manufacturer. By provid- i ing that the affiliatiea maintain the prices, terms and conditions o 76 y/oi sale set by the manufacturer, the affiliate becomes, for the : purpose of the code, a branch of the manufacturer. Where there : are two or more manufacturers operating in a given territory one through a branch, another through a subsidiary, and the i! .. \ third through an affiliate, under the amendment as we propose . it, the products of each manufacturer will be sold and distribu- : ted on the same basis in that territory with the same obligations under the code. Under this proposed amendment any violations of the provisions of the Code, or the Code of Ethics or lierchand- ising Plan which may be approved under the Cod9, or of published : prices, terms and conditions of sale, will apply whether a ' manufacturer is operating through a branch, a subsidiary, or an ' i; affiliate. ; As submitted, Article XI, Section ?*. ^he Code after providing for "transactions between manufacturers *** and their ' respective subsidiaries or affiliates11 provides that the "sub sidiary or affiliate shall agree to and doew conform to the pertinent provisions of this Code*'. If this means that the affiliate or subsidiary shall conform to and maintain the prices, ! terms and conditions of sale provided in the manufacturer's ;; published prices, terms and conditions of sale under Article ? | VIII of the Code, there can be no objection to the addition \^ which we suggest to this Article XI. If the Article without our suggested addition means something else, then we submit :i that there Bhould be a limitation requiring the subsidiaries . I 77 and affiliates to maintain the manufacturer's published prices, terms and conditions of sale. Without this there would not be any publicity under Article VIII of the Code between the man ufacturers operating in a territory in which some of them had a branch or traveling salesman while others operated through aXfiliates as an affiliate wvuld not be bound by published schedule of the manufacturer he represented. We submit that by the suggested amendments, subsidiaries, affiliates and branches will all be substantially in the same position respecting their competitive activities in the market and this we believe and submit is as it should be. We respectfully urge, therefore, that our amendments to Article II, Section 5 (a), and Article XI, Section 1, be em bodied in the Code as finally approved. Respectfully, THE rillLIF CAREY MANUFACTURING COM . - FANY . By G. D. Crabbs. " President. 7S^g Assistant Deputy Brady: Is there anything else on that article? Article III'. Someone has asked to be heard on that. Articles III and IV are usually considered together, hourB and wages. , .. , STATEMENT OF WALDO C. HOLQflS, ON BEHALF OF THE AMERICAN ' FEDERATION OF LABOR FOR THE WORKERS IN THE ASBESTOS i INDUSTRY. .f : +i . ; Mr. Holden: Mr. Administrator, I have a brief on that. . i 5 Assistant Deputy BradyP Mr. Waldo 0. Holden. You want ; 1 to read this? I. ij , Mr. Holden: .! ; If I may. ' . . (Reading;) ARTICLE III ----- HOURS OF LABOR Section (1) Subetitnte; No employee shall be permitted : to work in excess of 35 hours in any one week, or 7 hours in any 34 hour period. To accommodate seasonal demands, the hours of : work for factory employees may be increased to 40 during any 13 weeks in the year. All such work, however, shall he paid at , ; the rate of time and one-half for ail hours over 7 per day or . i 3b per week. ii!i . ij Section (3) ij :j Section (3) ' to be eliminated from the code. t. i to be eliminated from the code, !i ii Section (4) The limitation as to hours of labor shall VI \J not apply to outBido ealeemen, not to persona in a managerial, executive, or supervisory capacity who receive wore than $35.00 per week. These maximum hours fixed in the above section shall not apply to any employee on emergency maintenance or emergency repair work involving breakdowns or protection of life or prop erty, but-in any. such special case at least one and one-half times his normal rats shall he paid for hours worked in excess of the maximum hours herein provided. Section (5) No employer shall work any accounting, olerioal, offioe, ineide caloo, or other aiaried employee not provided for above who receives less than $35.00 per week, more than 35 hours per week. REASONS FOE PROPOSED CHANGES Hours of Labor. The reco mmendation of a 35 hour week for this industry isnot only one step toward the work-week which must be fected if unemployment is to "tee reabsorbed. Current statistics are not available, but in 1931 wage earners in the industry had declined to 69 per cent of the 1929 figura. (Table I). Considering, therefore, that unemployment in general has doubled since 1931, it is obvious that a 30 hour week or less is necessary to restore the former employees to their places. A general allowance for hours to be worked over the 80 maximum specified is not felt to be necessary, because actual records for the industry do not show substantial fluctuations from month to month. (Tables II and III) . Actually, the variations in total wage earners by months I have in all cases, except for December, 1939, been within limits of 10 per cent above or below the yearly average. Furthermore, | increaBes"and decreases to these maximums and minimums have been gradual. ; ;; The tolerances proposed in Section 3, with the privilege ; ; of a six months' average, detract seriously from the advantages! } which result from a flat maximum allowance and render any foi- i low-up ofhours in the industry much more difficult. ' Since overtime is permitted under Section 4, for main; tenance or repair work, under special conditions, it is not ; necessary to provide a longer work-week for these men. : In the case of other exceptions, it will be found that :: by working the hours specified, while not necessarily the same \ hours of the day as manufacturing departments, additional :: hours will not be needed. (Tables I and II and III are made- a part of this record : in the form of an appendix, and will be found Immediately fol lowing the transcript of the proceedings of this hearing.) Mr. Holden: (Continuing to read:) I ARTICLE IV ___ MINIMUM WAGES . !i - !; Section (l) Substitute: No employee shall be paid ei at lees than the rate of $16.00 per week of thirty-five hours. Section (3) to be eliminated from the code. (Section (3) Substitute: This Article establishes a minimum rate ofpay, regardless of whether an employee is com pensated on a time ratef piece work, or other basis. Section (4) Substitute: Accounting, clerical or office employees-shall not be paid less than at the rate of j $16.00 per week. Section (5) Substitute: The wage rates for occupa tions other than those receiving the minimum wage herein pre- ; scribed shall at least maintain the difference in earning for : these occupations fox a full-time week, existing on or about October, 1, 1939; provided, however, that these rates shall be subject to reconsideration and adjustment by the Administrator.- Section (6) to be eliminated from the code. . Add Section (10) An employer shall make payment of all wages as due in lawful currency or by negotiable check, i therefore payable on demand. These wages shall be exempt from any payments for pen sions, insurance, or sick benefits other than those voluniarily paid by the wage earner. ARTICLE IV ----- MINIMUM WAGES In this article the following wage differentials axe made; first, between male employees and female employees; 83 second, "between the Northern section and the Southern section; third, for clerical workers, between the different sizes of communities; fourth, between regular employees and learners and apprentices. The recommendation in all cases iB for a $16.00 per week minimum. . . None of the exceptions made should be included. . , The article provides "No distinction in rates shall be made between male and female employees where the same class of work is performed, '; This is one of the fundamental principles of our program,, and is very essential. The tendency to pay female employees at a lower wage has : grown largely from the fact that the market price for female labor is lower. In many cases, the work performed by these female employees is of a skilled and dextrous nature, which can not" be performed so efficiently by men. Such work, there fore, is fully entitled to the minimum wage received by men, : and in many oases to a higher wage. Assistant Deputy Brady; Mr. Holden, may I ask if you heard Mr. 3ronn'e statement on what the industry is doing in this respect? ; t They are already operating under those conditions. : They are receiving the same rate. ; 83 I wonder if you are working according to the old coda, or the new provisions. Mr. Holden: I have to, primarily, because that is all I have to work with. Arris tant Deputy Brady: All right. Hr. Holden: Idy main point here is that the minimum is specified*, without variations. . -. A blanket minimum wage for women is unfair to the women employees who are doing more skilled woTk than many men. The differentials proposed between the North and the bouth, and between different sized communities, are not based on an absolute difference in the cost of living. Due to the interplay of various factors, there may be variations in the cost of living throughout the country; but because of the complicated interplay between the effect of population on cost of living and the effect of locality on the cost of living it is not equitable to set up the differentials as outlined. With regard to the minimum rate of pay for office or messenger boys or girls, and for learners, this is another departure from our purpose; namely, to establish an absolute minimum throughout the industry. Not only do such exemptions weaken our purpose, but further, in many cases, these special allowances prove to-be serious flaws in our plan. 84 STATEMENT OF MR. GUT GEORGE GABRIELSON, ON BEHALF OF THE SALL MOUNTAIN COMPANY. Mr. Gabrielson: submit a brief. Mr. Administrator, I would like to Assistant Deputy Brady: Did you ask to be heard? Mr. Gabrielson: I merely want to point out that I have a brief that I wish to file for the record. Assistant Deputy Brady: If you will send your name to the chair, we will call on you, on the article that, you Want to be heard on, at that time. Mr. Gabrielson: You have passed the article already. Assistant Deputy Brady: What is your name? Mr. Gabrielson: Guy George Gabrielson, President of the Sail Mountain Company. Assistant Deputy Brady: You may go ahead. Mr. Gabrielson: T just want to present a brief on be half of the Sail Mountain Company. Assistant Deputy Brady: Do you want to say anything about it? Mr. Gabrielson: No. Assistant Deputy Brady: It will be received, and will go into the record at this point. (The brief feferred to is as follows;) Memorandum submitted by theSall Mountain Company at the 85 I public bearing on the code of fair competition for the AsbestOB j | Industry on October 19, 1933. i 1. This memorandum is submitted based on the proposed ji Code of Fair Competition for the Asbestos Industry, as revised ; I; > September 27, 1933, and set for public hearing October 19th, 1933. If j| 2. "Article II, Section 5, 5a and 5b and Article XI, j , Section 1, permit a member of the industry to Bell to eubeid- !; i; . ' iaries, affiliates, or agencies without the disclosure of . i ] f prices as called for by Article Till. If it is to be the purpose of the industry to have an open price policy, we believe : that this should be carried the entire way, the only exception ; i; i | to be where a member of the industry is selling to another ! i icorporation allof whose stock ofevery kind, nature and des- i; !: cription and its entire capital is owned by the manufacturer. i , ! ; ' Allowing any member of the industry to sell at an undisclosed ' price beyond that point is bound to create unfair competition, ! particularly where the so-called affiliate is not only a re : sailer, but also an applier of asbestoB products. I! If, as a i matter of policy, the publicity of prices, terms and conditions ; of Bale called for by Article VIII Is a desirable one, there 1b : no reason why this should not be extended to all forms of Bell ing, withthe one exceptionheretofore noted. !' . : 3. With the above statements which are to be construed 1 i 86 i, ae a reservation the Sail Mountan Company subscribes to the r Code,- as hereinbefore described, : BALL MOUNTAIN COMPANY . : BY . GUY GEORGE GABRIELSON ; PRESIDENT. I Assistant Deputy Brady: , - Mr. Brown^ may I ask you with regard to Article III, Section 2, where you are averaging for fi ' i overtime payment, over a six months1 period? j; Don't you feel that that would involve complicated fig- | uring? j! Suppose someone left in the middle of that period, or J end of it, how would you figure that overtime? ' Mr. Brown: In oaG a man. left in the middle of that ; time? Assistant Deputy Brady: Yes. ji Mr. Brown: I should say, if he had worked overtime, i. we would have to make a settlement with him on the basis of !i that, irrespective of the day that he left, but this problem !r :i applies primarily to a group of employees who axe not changing ;j very often. i; j! They are watchmen, machinists; making ove/plants, main- ;j tenance of plantB, and of. machinery; and, in actual practice i I generally are a rather stabilised group of employees, because | of their knowledge and skill. 87 In a small plant they know so many different jobs that : : they are pretty much assured of continuous employment, 1 What we were trying to do there was simply to work out a ; ;; tolerance and, if they worked more than an average week, then, ; we axe willing to pay them time and one--third- Assistant Deputy Brady: Well, isn't that average a f- misprint?.-- . : -i : Isn't that after forty hours? ; \ Mr. Brown: No. j - These people are permitted to work ten per cent additional' 'i , hours over and above forty hourB per week, which makes an aver- j age of forty-four hours per week, or eight and eight-tenths ; i .! is hours in any day, and, primarily, the reason for that is that ; i; I: many of these people, for example, in a group, you have to ; , ; change over the machinery, make certain alterations, keep it in i shape, so that the regular groups of employees can operate on their regular hours. Secondly, on shippers and delivery employees, we have a 5 i group who, when the day is finished, have to finish getting the i, ' !; work of the balance of the organization .into the cars, or into l theexpressoffices, or the mail, and there ia a little time . trl' ' | required to clean up and get it on its way, if we are to get j ;! prompt shipment, which is bo vital to this industry. i: ; ! ; ji ! ;,half Assistant Deputy Brady: adaySaturday? That doeB not mean Saturday,worlq! i S J 88 Mr- Brown: No, not necessarily. It means forty-four hours per week. . It does not say that they shall not work on Saturday. It primarily means that they have to work extra hours; either before,getting ready in the morning, making the set-up,or, in the evening, after the machinery has closed down, so they can start cff next-day.-...... ... ; It is simply one of thooe provioiono which provides for t; a flexible type of planning. We haVB tried to handle ouror- ; . ganization on that line. : ' Many of them are small organizations. t1 i We are required to make prompt shipments, and we have I got to have flexibility. Itis an important thing to us. It ; is for flexibility. Assistant Deputy Brady: Doctor Eckel, Labor Adviser, ; would like to ask one or two questions on these provisions, at : tHka time. Doctor Eckel: There is just one, to clarify the point, Mr. Brown. That is: Subsection flAtt in Section 2, Beems to corres pond almost exactly, but not quite, to subssection B, in sec- ; tion 4. i: ' ; But, they have a different basis of hours. . That is, one is on a forty--four hour limit, and tho other' on a forty-eight hour limit. 89 j1 Don't you think that those two groups are essentially the same? ' `1 Mr. Brown: ' Well, that was not the intended purpose; it ' was not intended to he. Doctor Eckel: flo; I think it was not. Mr. Brown: But it is written in there, ^ Doctor Eckel; It needs clarifying. i ; Mr. Brown: What I am trying to explain, in this group, ! in section 4, the industry had in mind emergencies. : a plant is flooded, and you have &ot an emergency, work j ij i ji that does not matter about an eight-hour day, or anything else, | and you have got a day or two of intensive work, from everybody 'J . thatyou canthrow in, to get theplant inoperation. . : : For instance, a fire occurB, and the plant is semi-gutted, : or any other emergency of that kind takes place, and that is , what we .are trying to get at in that particular section of the ' code. f:i ji Assistant Deputy Brady: Mr. Brown, is your particular ; code committee going to be in town after this hearing, this l !| afternoon? ' Mr. Brown: Tes. AssistantDeputy Brady: We havefound byexperience i J that if you can clear up the little points, especially about i j: hours and labor, before you leave, it saves a lot of time for ' 90 ue later- Me Brown: We will be delighted to go into session this afi; i teraoon, or tomorrow, if necessary. i. ^ Assistant Deputy Brady: This may be all right, but they Ji need, perhaps, a little clarification, to explain why you have i some of those things in the code. If I can not be present myself, I will have somebody from i . :- '! ' the office, one of my assistants, present, and he can meet you ! immediately after you talcs this up with Doctor Eckel. ; t i. ' Any time that is convenient to him this afternoon possibly. would be better, and you can get away. Mr. Brown: That will be perfectly satisfactory. We ! i. will be willing to be here on any of these, today and tomorrow, j i; whichever you want. : ; Assistant Deputy Brady: r; ; that, I believe. Article ?. There is nothing on . _ ; STATEMENT OF MR. WALDO 0. HOLDEN. ; (Resumed.) ' ' Mr. Holden: I understand that I am on record for and ); * , including Article V. I. ' ,! Assistant Deputy Brady: ' Mr. Holden. ii :! Mr. Holden: Article V----- Child Labor. jl i| Substitute; No person under IS yearB of age shall be !i i employed in the industry, and no person under 18 years of age !i 1 . H |i in manufacturing operations. 91 ARTICLE V -- Child Labor * . Our recommendation for the exclusion of all persons under 18 years of age from manufacturing operations is based on the recommendation of the Hazardous Occupations Committee, urging the exclusion of all minors under 18 from occupations [involving exposure to asbestos dust. . Furthermore, I include for the record a statement by the [Children1s Bureau of the Department of Labor, which covers not only the dust hazard in this industry, but also the ever present hazard from machine processes. In addition to the 18 i- . : year minimum which this evidence justifies, such materials must he given full consideration in determining the maximum hours ! . . ' and minimum wages which are specified in the approved code. EXHIBIT 1 -- ' Re: Hazards in the manufacture of asbestos products, ; Children's Bureau, Dept, of Labor. ; Ho statistics are available in the Census as to the number : of minors under 18 years of age employed in establishments :K [ manufacturing, asbestos products. According to the Census of 'Manufactures for 1929 ( Vol 2, page 827 ), the average number of wage earners, in all asbestos manufacturing establishments hj ;i in 1929 was 15,358. The number of persons under 13 working in ; this industry is therefore comparatively small, cut the hazard ; is such that minors under 13 should be prohibited from manu- 92 , factoring processes. There is not only a mechanical hazard, k "but also a health hazard from the asbestos dust. (Occupation : and Health, No. 37, International Labor Office, C-eneva, 1925. i; (Asbestos)). i While processes differ to a certain extent in different . establishments, the August, 1932, Industry Report ( Atlanta t! I Retail Credit Association, Atlanta, Georgia) gives a brief I: ' ' V summary of the general methods used in making products of ' i: asbestos: After the asbestos has been mined and milled and received by the manufacturer, it is sent to the picking '* machines to be graded and separated according to kind and ei2 ; the fibre is then carded or combed by machines into strands | so that all the fibres lay. in the same direction. I It is next .sent to the op inning room -where it is converted into yarns . I of various types. Copper or brass wires may be inserted into ' the fibre by a twisting machines to increase tensile - strens-th. l! !i '1 :i ;! ii!I 93 The asbestos is then ready for weaving into sizes and '1 "thicknesses varying from l/8th inch to 120 inches wide and from ;l/8th inch to inches thick. . The making of asbestos paper is much like the making of any pulp paper and involves similar mechanical hazards; millboard is made in a somewhat similar manner except that it is pressed between plates in hydraulic presses and after drying is cut into I! - convenient sizes; shingles may be made of the fibre and cement, in which case they are subjected to tremendous hydraulic pressure. From this, it will be seen that the manufacture of products from asbestos requires the use of numerous power driven machines ''carding, picking, spinning, twisting and weaving machines, mix- 1 Ing machines, presses of all kinds, punches for punching holes 'into shingles, paint spraying machines for spraying paint on shingles, etc. Studies of industrial aoacidents have shown not only that power driven machinery is one of the major causes of accidents :to minors, but that it causes a larger proportion of accidents to minors than to adults, thus indicating the need for special ;protection of immature workers from machine hazards, i For instance, in a study of industrial injuries to minors made by the Children's Bureau, it was found that in Massachusetts [nearly twice as large percentage of the accidents from all [causes to minors under 31 than of the accidents to adults, was [duo to power driven machinery. Children's Bureau Publication ' No. 152, U.S. Dept, of Labor. The recent report of the New Jersey Department of Labor, "Compensable CaseB Closed during the Year ending December 31, i. 1933", bears out the same trend. In a total of 20,198 compensable accidents, that is, acci dents causing death, permanent disability or disability of more than 7 days, . machines caused 27.4 per cent of the accidents to minors 16 and 17 as compared with 11.2 per cent of the accidents to persons 18 years of age and over. Industrial Accident re port, New Jersey Department of Labor, Bureau of Statistics and Records. Moreover, the Children's Bureau Report cited above showed that minors IS and 17 years old suffered proportionately more severe injuries than either the younger or older workers. Death or permanent partial disability resulted from 13.4 per cent of all injuries to workers 16 and 17 years of age; for workers under 16 corresponding percentage was 10.7 and for workers 18, 19, and 20, it was 12,7. Industrial Accident Report, New Jersey Department of Labor, Bureau of Statistics and Records, page 88. The Hazardous Occupations Committee, a technical committee of safety engineers, industrial hygienists, and labor law administrators, in its report in 1933 urged the exclusion of all it's minors under 18,from ocoupations involving exposure to asbestos dust. 95 Assistant Deputy Brady: Article VI. I have Borne names of witnesses here that have not stated the article, so that if any of them are to be heard on Article VI, you might mention your names now. STATEMENT OF MR. HOWARD SHOW, General Manager and Treasurer, .. --SOUTHERN FRICTION FABRIC COMPANY. Mr. Snow: Mr. Administrator, i would nice to file a brief. : Assistant Deputy Brady: Mr. Snow, j Mr. Snow: Shall I read these sections now? ; Assistant Deputy Brady: Yee. is \ Mr. Snow; Mr. Administrator, this is filed by the ii I Southern Friction Fabric Company, covering two sections in the r code. It reads as follows: October }8,JL933. ; BRIEF To the Administration of the N. R. A.: Re: Asbestos Code. ; We, the undersigned, having reviewed the proposed Code of Fair Competition for the Asbestos Industry, request the following amendments to the code for the reasons stated; i Section 5 of Article VIII ji Insert after tlie word "buyer" atthe endof line 3, the ; jj words "more than one trial order". i; j This is to permit those cf us thatsellby mail to avoid 1 ' I delay in filling first orders. . ii .1*. jj Section 3 of Article vi ' Add the following as sub-division (c) of the above jj, section aiid. article: ., \t. .. i- . . "Provided any concern promptly file such appeals with a : | : . Sub-Code jtathority and cooperates toward the prompt decision j, i' thereof, any restrictions which arise from the Merchandising i. ii jj Plan or Rulings of the Sub-Code Authority provided for herein i . . j but supplemental to and not specifically covered by this Code, ' 1 if disputed by a member on the grounds that said restrictions t ! ; i ; \ or rulings will handicap hie legitimate methods of operation i ji or distribution tending toward jeopardizing his existence, will i; not be binding on such member until such appeal has been heard [; and finally decided." i; ; The reason for the above is that under fjie Code we are i delegating to a Sub-Code Authority which will in all probability !! ' ii consist cbiefly of competitors power to originate and approve ; jj subject only to the review of the Administrator and appeal to j! same, merchandise policies governing the entire industry and therefore our own operations and distribution. : I j SOUTHERN FRICTION FABRIC COMPANY V .- ' By V' Howafd Snow [I General Manager and Treasurer 97 Assistant Deputy Brady: Article VII, unfair trade prac tices. Is there someone to be heard on that? Our Consumers1 Adviser, Mr. M. G. Johnston, has certain questions to aBk about Articles VII and VIII and IX, but he says that it is not necessary to bring it out here. He would like to be in, or have a meeting with the Code Committee on those articles. I think that the Industrial Adviser, ----- in fact, all of the advisers, ----- might meet together with your Code Committee before you leave Washington. At the same time, you can take into consideration the present protests and briefs that have been filed, so that they may be cleared up and you can get the code then, in the time that you expect it. Article VIII. Mr. Snow, your name is down on this again. Mr. Snc : I have covered that. STATEMENT OF MR. G. F. STONE, REPRESENTING THE KEASBEY 4 MATTISON COMPANY, AMBLER, PENNSYLVANIA. Mr. Stone* I think the other name is Stone. Assistant Deputy Brady: Mr. G. F. Stone. Mr. Stone: My name is G. F. Stone. I represent Mr 98 ,i A. S. Blagden, president of the Keasby and MattiBon company, ; jj and I have his brief, which I wish to submit. '' !j In his brief he asks for a modification or amendment to [i Article VIII, Section 5, simply in the Interest of clarifica- |l tion of the wording. r If necessary, I will read this, or do you wish me to f jj submit it'for the record?. . . : j I: ! : Assistant Deputy Brady: Just as you Bay. If you wish | II * !] to fileit, itwill be considered in exactly the samemanner j I !i i ab if it were read, and it will be put into the record at this : : .i point. | Mr. Stone: I will leave it, then, for therecord. ; V (The brief referred to is as follows*.) i. |i KEASBY 4 MATT I SON COMPANY 1 : j AMBLER, PENNSYLVANIA Brief submitted at public hearing on code for the Asbestos j; Industry, Carlton,Hotel, Washington, D. C., October 19, 1933. ii': " j1 The Keasby 4 Mattieon Company, Ambler,-^Pennsylvania, a i member of the Asbestos Industry, through its President, Mr. A. ! * l S- Blagden, submits a minor amendment to Article VIII, Section iI', i 5JI5f the proposed Asbestos Code, for the purposes of clarlfi(j | cation, as follows* j jj jj "After dates to be specified by each Sub-Code Authority :j . !; for its Division no member of tho Division shall sell to any ii!i . Buyerfor resaleunless thebuyer has agreed in writing i i- (1) To observe all the provisions of ventorB mer- i' I chandlsing plans as adopted under the Code, in bo far as they = . |i are applicable, and i: t- (3) To maintain vendors sale or suggested resale ; prices." i' , We are in accord with the intent and spirit of the amend- ! ment in the proposed code, but feel that the above clarifica\ ; tionofwording isnecessary. I: ; KEASBT & MATT I SON COMPANY i A. S. Biagden , : ; i : i I !ji' President. F i! ------ O--------- ti: jj Assistant Deputy Brady: Article IX. 1r i: Mr. Brown] I am not going to raise any objections, be- | cause it is not my business, but I desire to call attention to i I- something on which I know that various Advisory Boards have :: already registered objection in other cases.' ; That is in Section 1, Article IX, all items of overhead '! ' !! expense. ii ! That is a thing that I think leads to all kinds of 1, j trouble, and I would like to have you clear that point up, - j| particularly with the Consumers' and Legal Advisers. Article X. 100 STATEMENT OF MR. WALDO 0. HOLDEN (Resumed.) Mr. Holden: Artiole X ----- Labor Provisions. Section (4) to be eliminated from the code. Add Section (5) Within each State this Code shall not supereede^any lairs of such State imposing more stringent re quirements on employer regulating the age of employees, wages, hours of work, or health, fire or general working conditions than under this Code. Add Section (6) Each employer shill post in conspicu ous places full copies of this Code. Assistant Deputy Brady: Did you say anything about the merit clause? Mr. Holden: I mentioned it. Assistant Deputy Brady: Is there anyone else to be heard? STATEMENT OF MR. JTOKN W. GARVEY, General Representative of the INTERNATIONAL HOD CARRIERS' . BUILDING AND COMMON LABORERS* UNION OF AMERICA, 35 SCHOOL ST., QUINCY, MASSACHUSETTS. f Mr. Garvey: ... Mr. Administrator, I filed an appearance. Assistant Deputy Brady: What 1b your name, please? Mr. Garvey: John W. Garvey. 101 Assistant Deputy Brady: Yes. We have Mr. Garvey on here, "but it waa not stated what article you wanted to comment on. Mr. Garvey; I want to present a brief on Articles III, j: IV, VI, and X. With yourpermission, I will present the brief, but I 1 would like-to present our objections to Article X.. Assistant Deputy Brady: All right. i, ;; Mr. Garvey: The last objection we wish to make 1b to Section 4 of Article X, dealing with the Hright to select, re ; tain, or advance employees on the basis of individual merit," : which we desire to be eliminated from the Code, because it 1b i- | inconsistent with Section 7 (a), of the National Industrial 1: j: Hccovery Act. i; I will file the brief. It will cover the other articles. I Assistant Deputy Brady; 1Is' this point. It may go into the record at (The brief referred to is as follows;) Brief presented by Joseph 7. Moreschi, General President, ; i; and John W. Garvey, General Representative, of the International; i! ' | Hod Carriers' Building and Common Laborers' Union of America, ; ; j ! 25 School Street, | ii ij try Code hearing, Quincy, Massachusetts, at the Asbestos IndusCarlton Hotel, Washington, D. C. , October 19, l : i : ; 1933. 103 The International Hod Carriers' , Building and!. Common ,, Laborers' Union of America wishes to go on record on behalf . of the laborers in the Asbestos Industry protesting against certain articles in the proposed code for the said industry as i!'! " : well as offering certain recommendations. We object strongly to Article 111 on hours, of labor. It is a well known fact how great the unemployment situation is . in this country and so as to carry out one of the purposes of v the Industrial Recovery Act, unemployment mytst be greatly re- : : duced so as to put more men back to the limited amount of work ; < that there is. Therefore, we ask that sections 1, 2, and 3 be -' ! revised and that our recommendation be considered as a possible solution to relieve this great unemployment problem. We re- l 1 !! commend that the maximum hours of labor in the Asbestos Industry , '.excluding managerial work shall not be more than 30 hours per - ji - j week consisting of 5 days of S hours each; and in case of an i' ; emergency an employee may be employed more than the maximum of ; 30 hours but in no case more than 36 hours per week, and all , i* time employed over the maximum of 30 hours shall be paid the ; ' customary double time so as to enforce the restriction to em- !ploy more men. j ! The next article we strongly object to is Article IV i 1 on the minimum wages,'because the proposed minimum wages of `1 l!.40 and 37^ for the North and South respectively is entirely ]} too low and inadequate, and it will never bring about conditions 103 ! so as toimprove the standards of labor, nor will it increase j 1 the purchasing power. We ask that this article be revised and . in it*a place we recommend that the minimum wage rate for the i i ; ` laborers in this industry shall be not less than sixty-two and half (.G2|) cents per hoar irrespective of northern or southern . \ divi,sions. ? - The "thing we want to object to is Article VI on Adminis- (i ! . tration. We request that a representative of labor should be included in the Code Authority which will carry out the effect-- : iveness of this code so that he will look after the laborers' i; welfare as well as to create a better understanding between i employer and employe. This representative of labor shall have L' the right to file amendments or revisions, and when approved, 1 shall become binding to this code. ~ ; The last objection we wish to make is that Section 4, of Article X, dealing with the "right to select, retain, or ad- [' !: vance employees on the basis of individual merit", be eliminate i! from the code because it is inuonsisLent with Section 7 (a) of the N.I.R.A. 104 An Auditor: represents? I way x ask whom Mr. Garvey, who just spoke, I I Mr. Garvey: I am General Representative of the Inter- a i national Hod Carriers' Building and Common Laborers' Union of j f America. * i i'' - - : ;< ; i Assistant Deputy Brady: Article XI. No one has asked > !' to,..be-,heard- on that. l! Article XII. - -. ::/ . ----- -/ - - . ' w--;..-.., Schedule I. . , s jl Mr. Brown, I ha4 something to ask you on that. r As I " jj understand, asbestos insulation and asbestos board do not come f- . -- ' if | under this code. ... . . Mr. Brown; Asbestos insulation does come under the code. IL! jj Assistant Deputy Brady: They do? ,1 j ij .j | I see it here. j .. . j - .| | ' Mr. Brown;' High temperature insulation, and all insulati J ing lines do come under the code. ?i II Assistant Deputy Brady: Did you know that there was aI I `I jj code filed by the Asbestos Insulation Industry of western----- of certain western States? I I desire to call your attention to that. . Mr. Brown: No. I did not know that. Assistant Deputy Brady: It might be a good idea to I look that over. ., -. 105 ! Mr. Brown: Jtre they applying that to contractors? Assistant Deputy Brady: Well, L will not answer any questions on it.. I will let you see the code. I do not know enough about it in detail. Mr. Brown: All right. : j. ...Irtaew-./that one group, of contractors, who are not urn. . ; facturers, were planning to formulate a code covering activi- ! ties in the western States, and they were Invited into our f . . .- ' i organization. | That was in the N. R. A. , operating through the Oonstruc- tion League. | I think that waB under Mr. Pimie. Under Mr. Pimie's activities. I. . They were organizing a national group of contractors, ! and they should rightfully become an association, or a sub- j heading, or comply with the provisions of that code. i ' I would like to see their letter, however. Assistant Deputy Brady: No one 81se has asked to be heard. The procedure from now on is that within forty-eight hours the Administrator, or his Deputy or Deputies, gets a report from each of:the five divisions that are advisory to tho Administrator. - -On the basis of those reports, and on the basis of the 106 | briefs that are filed the judgment is made on this code of fait, competition. i The Administration does not want to ba arbitrary, ejrpe. daily onanything that relates to your own trade practices- : j ? 1 That is why we insist on saying that, in these public hearings,1 that if the Code Committee will stay long enough in Washington j to get together and iron those things out, it will be better for them, and make it easier and better for us. Thio will enable us to get the code out without a great deal of correspondence, which takes up time. In this case, I must compliment you that you have ironed l !: out practically all of your difficulties, in advance, and the jj Legal Adviser tells me that there is very little if anything jl : to go over with him.i i I suggest that you do eee him before you leave, and I i: j hope you,will bear in mind that we will txy to get your code out in a very rapid shape. One thing more, Hr. Brown. While you are in Washington, I would like to have you come into the office and see if I can not have arrangements made for your code committee to meet Hr. Hulx, who is the Deputy Administrator, and I would like to tell him what a fine job you have dona. Mr. Brown; . *, Thank you. - 107 We will do that. Assistant Deputy Brady: If there 1b nothing else, 1 iI : .. .. , the meeting is recesedd, and not closed definitely. * i . .[ The purpose of that is that any of these further meetings | 'i are really a part of this hearing, so that anyone who has any : objections still may coma along and be present, or fila any additional brief's. : There has never been a case, except in the.coal code, j i that the hearing has had bo be opened again publicly, and I am j Bure it will not in this case. - ! The meeting is recessed. (Thereupon, at 11:35 o'clock a. m., a recess was taken as indicated.) ... . / 108 TABLE I ASBESTOS PRODUCTS KASS EARNERS. 7aGES. VALUE CF PRODUCTS. WAGE FEflCEKTAGE G? VALUE OF PRODUCTS % - him i him iiii.iii mi mi mwrm I HI * Index 1S29-1QQ ~*',v Census of Manufactures Year Wage Earners Index * Washes (Avg. for M year) Index * Avg? Value of TTeeitly Products ft age 1925'" 13,315' 1927 12,283 ' "79.5 $15,763,990 s eo.o I6??60il05c 77.1' ` -$34.e3- ' $80,144 ,:39 79. 7 35.49 87,200,68 1929 15,358 100.0 30,437,126 ieo.o 25.59 101,597,17 1931 10,7.14 69.8 11,635,768 56.9 20.87 ' 60,574,57 Yesr s i Waee Fercentse-e* of Value of Products ' 1S25 j, 1937 ^ 1929 t * 1931 19.7 .18.7 20.1 19.3 \ i! Commuted Vi'. *,y AW 2 asbestos products WAGE EARNERS BY MONTHS - EXPRESSED AS PERCENTAGE OF YEAH AVER- ACE CENSUS CF MANUFACTURES TABLEII s* Other,-.Than Steam Packing and Pioe & Boiler Covering Year Jan, Feb. ' Mer. Aprl. May June July Aufr, Sept. 1925 5647 5586 5783 5321 5931 6073 6256 6397 6416 j -1939.. 7^:. .7809 : 8019.. 8284 8461..,8461'. 8550 ; 8742: 8543 ; 1931 6117 6324 6366 6307 6469 6241 5999 5796 5661 !; 1935 92.1- 91.1 94.4 96.6 96.8 99.1 101.7 104.4 104.7 \ 1939 94.7 96.5 99.1 102.4 104.6 104.8 105.7 1C3.0 105. S \ 1931 101. 8 105.2 106,3 105,0 107. 7 103.9- 99,8 96. 5 94,2 ii i ji Year K l 1925 1 ; 1929 . i; 1931 i3j.1635 fe 1929 i 1931 '* Oct. 6444 8060 5647 . 105.1 99.6 94.0 Kov. Dec. 6526 6587 .7556 5563 106.5 7038 5600 107. 5 93.4 S3. S 87.0 93.3 Average 6129 8092 6009 ii ii I A* 3 110 v asbestos products i I - WAGE SA2HSRS B MCiTJTHS-EXFHESSED AS PERCENTAGE CF YAR_AVSRAGE , j CENSUS OF MANUFACTURES , j S TAELS III ' i jj Steem ISTOther Packing. Pipe A Boiler Covering, & Gaskets, net j elsewhere classified \ XeAx-8- Feb. Ear. Aprl. kay 1925m- &SS48- ?t584as- .5874 .v t 5934 -- - 6003 June 6046 . l 6136 - j 1929 1931 1335 6603 7083 4655 ' 4679 . 7215 5042 7539 4S48 92.8 96.1 96.5 . 93.6 7948 5107 . 8061 4967 7913 4721 ; !t S i< '} i 99. 3 . 100.8.- . 101.7. j 1939 1931 Yesr 1925 1929 1931 90.9 98.9 97.5 99.3 103. 7. 107.2 103.8 109.4 105.2 ' 108. 5 AU. ' cl87 7412 4593 Sect. Oct. 6296 7106 4407 6291 7036 4405 Nov. 6363 6604 4395 Dec. 6406' 6468 4340 110.9 105.6 108.9 100,3 . Aver a !i | 41ti 1i | i 60 e 67266 4705 I i i) i 1S25 1329 1931 101'7 102.0 97. 6 16315 97.8 93.7 103,4 96.9 S3, G 104,6 93. 6 S3. 4 105.3 89.0 92. 3 1i l \ * Computed / IIDEX TO WITNESSES ASBESTOS IHDUSTRT lurch 19, 1934 a*e to. O. 0, Gabrielson ; Representing the Code Committee 1*3' `M'r' 1. NATIONAL RECOVERY ADMINISTRATION Washington, D. C. March 19, 1934 HEARING ON AMENDMENTS TO THE CODE OF FAIR COMPETITION FOR THE ' . . ........ . . ASBESTOS,INDUSTRY . * * * . ..... . ... ti The above--entitled matter came on for hearing at 2:30 o'clock p.m. , Room A, Washington Hotel, Assistant Deputy Ad ministrator A* C. Cook presiding# There were presentalso; ., Dr. W. L* Schurz Of the Labor Advisory Board: Solomon Barkin . Virgil Bankeon Of the Consumers1 Advisory Board: A. w. McQuillen Of the Planning and Research Division: i W. Kinnear 1 Of the Legal Division: ", - ' .. '* * ; ; w. Earle Butler ; ! ( ; PROCEEDINGS j I ~ ~r "" r . i ; Assistant Deputy Cook: The meeting will please come to J :' . ' . ' - | order. This la a hearing on the proposed amendments to the 2 : Code Of Fair Competition for the Asbestos Industry, approved !; code #80, and is called In accordance with the notice of hear ing #192--B. . .; i; Theoe hearings on amendments are more or.lees the same : ; as hearings on an original code* The hearings are not Jucl- cial nor legislative in character, but are administrative. it ' . | There 1 b. no argument on the. floor as to law or legal right, pei*^ "i mitted. The hearings constitute a convenient way to get evi- 1; dence, and all persons who are heard are heard as witnesses* . The Administrator is the sole Judge as to who will be witnesses, and, technically, witnesses should file applications ; . I to be heard twenty-four hours in advance of the hearing, but : ji because of the fact that we desire to get all the evidence post il ;; 8ible, if there ie anyone here who has not filed a request to ; ;! be heard, if he will pass his name up to the Chair he will be . - called on at the proper time. `: . Witnesses may appear on proposals for elimination of specific portions of a code, on proposals for modifications, or on proposal for additions thereto. ` There: Isliiq rebuttal permitted on the floor, but anyone, may file a brief, and in such a small crowd if the material is <| at hand he may ask it to be heard, and I will hear him , and ii ^ i! written briefs may be filed, and they will be given exactly the 1 . ' i It same attention as If the statements were made on the floor. All j| questions are to be directed through the Administrator. 3 ,j The code raodifications and amendments will be presented i! by Mr. G. G. Gabriel son. : STATEMENT OF G. G. GA3RIELS0N ; REPRESENTING THE CODE COMMITTEE -. Mr* Gabrleleon: Mr. Administrator, I should like to di vide these so-called amendments into two groups, ij ......Amendment #4 and amendment #6. to be in one; group. And < . the balance of tlte amendments in another group. The balance of . the amendments', leaving aside 4 and 6, are for the purpose of : 5 clarification only. A question arose in the discussions of the Code Authority meetings &b to just -what was meant by certain :l ' words In the code, and these were suggestions made at that raeet- ij ing to propose as amendments in order to clarify the provisions ' of the code. ;. Amendment #1, which amends Article VI, Section 1 (e), ; -> the code as it now stands reads as follows: "i ; . "At least five voting members of -the Code Authority shall !i be selected from the members of the code. One voting member shall be elected by a two-thirds vote of the members of each j division of the code." i1 After the word "division" the amendment Inserts the three . Mi ii words "who are members", so the aemtence will read: .j l! I jj "One voting member shall be elected by a two-thirds vote '' \ ! of the members of each division arc are members of the code." j A: question's-'arose as-to" whether*7 or- nott afiuin&'u6tr$ fth'd1 could classified* as* In a particular division would have a right to i vote foi?faaetot>fei*:of the code authority, even though they had not slgned^thee cod eS erAndf1*ascobteihtentlon*-$r1thvt he-1hsertibn : i bfltthiscamendment?that?onlyf-hhoee-mBfiifeere^br tEB division wEb" areumembers of1 the': code'beipfermitti&d Vo?votBe for^the^electlon I ,! i of a meinbecrofc the! Code AhthbFlt$r*to adopt rules or procedure j j1 to -testAmendiflehtefS: tsJlnrth'ecnext-paragrapfti +-That-is1 eub-dl- ?- i j| vision tfphoticectlontl oiArticl&EVl^ t the^tepref^tfife pagg.j |i $ ThB sehtehcetreadscastfoirowfl't amendment #6. ij . . || Alfcnshall deiegatestonaAefth-code^autfibritJ? 8f(fie member divisldn'i consisting of^thrBe members' elected by each division ij . ij the admfhl efcrAtiO'n^Ofoail^artic I e s r except Ap 4}i5Pnd-l4> ?of PtETs cddejL Subjecttto thS review ofrtKe?Adii'fnflraoi!rf "S^y other penaltiAiflendifife'rit"#2 * wi'll-uread?erte efTow wit'llfihat ^amendment fini i . fltoghail^d&Idgat e~tc>EaK8uE-cAdePautHb'riif o eeach unem--j b'erldrvfbi on consisting of three members elected hy the members of the 8dde dftleaih.~di~vi:ffl<?n^-he industry shall be subject to | all perSdt^eE'agaitfic'onffrig' the Election of:rassu6-co^dautlfoff;f _ ti 1 ri ? ea etr`dfvreron* to ` t II6'w embere of' tfee co d e- ro f-;thatTeloru1*" That cl's `carrying or^ui? t-ther'sB^e *thdugh't?'"as * Am nd m Shi* iJ-e Pro^ vided fAneridmdht* #3toe duf-scf^ypaf,agrapifIT{'g)'^ eectfdnir8flFArt'l- ola Vl' aThe seotloit ai? PdsdrilJereSdi. be subject to the penal ties prM'hdcmejnbef-^fof d^Aclfrdi'-vl`'&l^Aveliarj? adopi^tfielS^'own rules .'of.prbce'du^wftli atfeot1 nVtMncor^ P8 .I 6 up for the moment, and take up amendment #7, which occurs in Article IX, section 8$ which is similar to the amendment #5 that I Just read. The code as it appears now in this particular portion says; "The guilty member shall be subject to all penalties provided for In the Act, and If a member of the code any other. I; penalties provided for by said member's division of the code.*; ^ As. amended It would read: j ; "The guilty member of the Industry shall be subject to ` all penalties provided for in the Act", and so forth. ! :! I think that was the original intention in drawing it, : but this is purely a matter of more clearly stating what was : ; in the minds of the drafters of this code. . !i ^ ' aa Now, lir. Deputy Administrator, as far/the other two ; , !; amendments are concerned, which, are amendments numbers 4 and . *i - '. j: ; 6, amendment #4 is a suggested addition to Article VI, section : 1 (g), an additional sentence added to the last of that para-- graph, the sentende to read as follows: ' ; i ij "Each division may upon the approval of the sub-code au- ;1 ^ ; thorlty of such division and by three-quarters of the code mem! ;; i ; bers of the division create sub--divisions within each division." li ' ij Assistant Deputy Cook: Just what is the purpose of iti , ij that, Mr. Gabrielson, will you tell us, please? i; - ! Mr. Gabrielson: As the code was originally set up there 7 : wre divisions created, five In number. They appear In schedule i 1 of the 1 code. ; Products* Division #1 is the Asbestos Paper and Allied ; Division #2, Asbestos Cement products. Division #3, Asbestos Magnesia products. . , Division #4, Asbestos Technical products. ' And #5, Brake Lining and related friction products. ' The reason for this amendment was brought about very J ; forcibly in attempting to work out a merchandising plan in Di-? is vision #l, which la the Asbestor Paper and Allied Products Dl- ..vision* It developed that theremexlsted a different type of ` !^; " ` . i distribution. Different customs-had grown up so that certain members of the Division were only engaged in one of the five, had no relation at all to the other parte of the division. If: I we knew as much at the time this code was proposed as we do now I think we would probably have created more divisions. But as' ;> a matter of working It out, as discussed In the Code Authority- ir , i; and the different sub-code authority meetings it was thought i better to make an amendment to the code which would make it per !; missive for the division to sub--dlvlde Itself in order to more :j ; smoothly function. ! Now, if I may bring in the amendment #6 with this, I !! think you will more clearly understand why this amendment #4 !j was proposed* Amendment #6 waa passed by the Coda Authority and the sub-dlvlBionsi^care by the divisions, rather, and then e i. through an error on the part of the secretary of the sub-code h : fi r , authority was sent down to the Department worded Incorrectly. ; ;i ' i As soon as that was discovered the secretary Of the Code Au- ; thorlty took the matter up with the Administration. I ; Now, the amendment to #0, If I may, Ur. Deputy Adminle- trator, I should like to go through the three phases of this, j The original provision, the proposal as forwarded to the Admln-j- lstration originally, and with your permission, offering from : i; the floor the amendment to that provision, amendment #0, has to !i do with Article VI, section 4 (b), and now included In the code this paragraph reads as follows: . i :| . i "The members of each division of the industry may pre- . pare simplifications and standardization specifications and a j ;; ' ' . .I merchandising plan for such division, incorporating the mer- : .. chandising policies best calculated to promote fair competl- . tlon in such division subject to the review of the Administra- . tor,.every such merchandising plan or specification and stand- ardizatlon specifications when approved by three-quarters of i ij j the code members of the division and filed with the sub-code ; '! authority shall be binding upon all members of the Industry who i ;| are members of the division to which Buch merchandising plan or '1 j | specifications apply. Changes may be made in any such merchan- iI i, I j dlsing plan or specifications in the same manner that the or- j lglnals were established." ... ... ` ! I i - ... /: ' . I 9 The amendment which I should like to read now aw it was ( > submitted originally to the Administrator carries out the thought that I was discussing with you on amendment #4* It is permit- ting.a division to set up sub--divisional merchandising plan. ' . | The proposal is to delete all of the paragraph (bo) that was Just read and to substitute in place and Instead thereof the following, so that section 4 (b) will read aa follow: ' "The members of each division of the industry or any : sub-division thereof may prepare ejfcmplkf 1 cat ions and standard-.. lration specifications and a merchandising plan for each di- > vision or subdivision thereof, as the case may be, Incorporat- .' . i' ing the merchandising policies best calculated to promote fai*r competition In such division or sub-divisipn, subject to the review of-the Administrator. If such merchandising plan or simplification and standardization specifications when ap proved by the Code Authority of such dlvisision and by three- t quarters of the code members of a division or sub-divleion, as the case may be, and filed with the sub-code authority, shall . - t-t ' , be binding upon all members of the industry who are members of the division or sub-division in which such merchandising plan or specifications apply. Changes may be made in such merchan dising plan or specifications in the same manner." That Is as the amendment came down, but was, through a ' Jmistake, as I stated, in the secretary's office, it had left 10 ; out certain methods of approval. ts . I should like, with your permission, to amend that. ' I. . shall state the amendments first, and then read the section as; amende<gLr In the second sentence of the originally proposed amendment it says; "When approved by the sub-code authority of such division and by". After the word "by" Insert the word . "either". Continuing on, "either three-fourths of the code mem- here of that division; or sub-division, as the ease may be." ' Then add on there as an amendment to the amendment, the follow- lng; .' 'I .. "who are present at a meeting expressly called for that[ \ 'purpose, or by a three-quarters vote of the members of the di vision or sub-division by written ballot as the case may be." ` [So the amendmended amendment will read as follows; "The members of each division of the industry or any eud- `division thereof may prepare simplification ana standardiza- tlon specifications and a merchandising plan for each division 'or sub-4iviBlon thereof as the case may be, incorporating the ; * 4 w merchandising and policies best calculated to promote fair com petition in each division or sub-division, subject to the re- \ view of the Administrator. Every such merchandising plan or i1!1 ' "simplification and standardization specifications when approved i! . ' | [by the sub-code authority of such division and by either three- !i . i [quarters of the code members of, the division or tbe sub-division, I " " / | as the case may be, who are present at a meeting expressly called ! * ' J' I , i .i i :l 11 ' i _ for that purpose, or by a three-quarters vote of the members 1 i of the division or sub-division by written ballot, as the case may be, shall be binding upon all members of the Industry who i : are included or come within," that is, strike out. the words j - "membere of, Included,or come within the division or* mibdivl- i . slon to which such merchandising plan or specifications ap- j plyf ,:,changes may be made in.such merchandising plan or spec!-; ficatlona in the same manner." . ; Assistant Deputy Cook: This brings up a question, Mr.; Gabrlelson. This change reached ue too late to be advertised*I . with the original amendments, or,rather, too late to change . the original amendments. ` . Mr. Gabrlelson: Have you all three-of those! ;; i ; : . Aseistant Deputy Oookt Yce. ; ; Mr. Gabrlelson: All three changes I Just read? : Assistant Deputy Cook: Yes. : j - Mr. Gabrlelson; That ie the word "either-, and the In-- ; elusion of the longer one? ~ Assistant Deputy Cook: Mr. Haynes sent them to us. Mr. Gabrlelson: In thelast onestrike out the word" , "membere of, putting in the words "included or come within the division. " ' i ; Assistant Deputy Cook: Yes. ;j ... i; Mr. Gabrlelson: Yes. . j Assistant Deputy Cook: I will ask the Legal Advisor 12 j ; to tell us the proper steps In cases where an amendment amends ;i an amendment which has not been offered In connection with the ` original amendment* . ; '^Mr. Butler: I think the proper procedure at thiettime ; , would be to Inform Mr* Gabrielson that a 15 day stay period be tacked onto this approval of the Administrator, giving any con- ^ troversial. problem a chance to have an opportunity.to be heard. ` on It. And if they do not within that time it will be approved, and If there is any controversy over it a hearing can be re- ' ; noticed, or this particular amendment can be noticed properly* " ; > ' , Mr. C-abrielson: Is that, may I ask, 15 days from to day's hearing or 15 days from the time the Administrator ap- . r proves it? '. . Mr. Butler: Fifteen days from the time the Administra tor approves it. Mr* Gabrielson: May I ask another question? ; ' Mr. Butleri Yes sir. . Mr. Gabrielson: Poes that also mean,that he will ap- prove It subject to a 15 day stay, or he win merely look it over and leeuethe 15 day stay ana then approve It at the end of the 15 days? i Mr. Butler: I do not know what he will do* My recom- ; i mendatlon would be after a 15 day stay it would go into effects ! . J , Mr* Gabrielson; Automatically? : |i .' v1 i| 'Mr* Butler: That would be my'recommeh&atlon, but wlth- : ' .. \ ' 7: . i 13 out committing the Deputy or myself. Assistant Deputy Cook: Do you have some other state- mente, Mr* Gabrielson,. you wish to make at this time? I Mr* Gabrielson: I think not. I think that covers what ' I have in mind. Assistant Deputy Cook: Ho one has asked to be heard on amendment #1, no one on #2, #3, #4, #5, or #6, or #7. . Dp the . advisors have anything to offer at this time? . (No response.) . Mr. Bankson: Mr. Cook, may I submit for the record certa; recommendations which we would like to submit for the industry? Assistant Deputy Cook: Is this something you wish to put in the record? : Mr* Bankson; Yes; I do not want to read it. I would simply like to have the industry consider it, eo that, at the next conference of amendments it might be then considered more fully. ; AnHiflt.nnt Deputy Cook: According to the notice of hear ing only proposals germane to the original amendment can be considered at this time, will be glad to have the industry consider these proposals for future action. (The recommendations referred to are as follows:) 1 AMENDMENTS TO THECODE OFFAIR COMPETITION FOR ! THE AS3EST0SINDUSTRY.". ! I i 14 Article IIX. Section 1* Add, "nor more than six (6) days in any . ( seven (7) day period,* and chance sub-section (b) to read, "In excesa^of eight (8) hours m any twenty-four (24) hour period,: except that to meet seasonal requirements or emergencies more than eight (8) hours may be worked, provided, that time and one- third is paid ror overtime in excess or eight (8) hours in any^ one day and/or forty (40) hours in any one week." cc' :;.Sect!on 2.' In place of the clause beginning with the word "provided." "Provided that any such work by such em ployes In excess of eight (8) hours per day and forty (40) hours . .. i I per week shall be compensated for at the rate of time and one-. IJ- \ third. I ' ' .j ' i Section 3* Add "provided that all hours in excess of ; eight (8) hours In any one day and/or forty-{40) hours in any ; one week." ' Section 4. (a) Delete phrase, "ealee-service men, tech-; *nlclans" etc. (b) "providing that such emergency overtime work In excess of eight hours In any one day and/or forty (40) hours In any one week shall be paid for at the rate of time and one- . 'third." . : Section 5. Delete, "Less than thirty five ($35.00) dol- ! lars per week." Change to "an average of forty (40) hours per ! ;i \ ('week during a four (4) . week period, nor more than forty-eight / (48) hours during any one.week*" 15 Section'd. Substitute for "a six .month period1', "four seeks! ARTICLE IV. --Section 1. Eliminate "except that for such light work as doea not usually require the strength and skill of make labor ----- - to end of paragraph.* Section 2. Delete. ........ Add: Section 1C. An employer shall not make payment of wages ' due other than In lawful currency or by negotiable check there for payable oh demand. These wages shall be exempt from any pay ;> ' ' l ments for pensions, insurance or sick benefits other than those voluntarily paid by the wage earners, or required by law. Pay- periods for wages shall be at least at the end of every week, and salaries at least at the end of every month. The employer .or his agent shall accept no rebates directly or Indirectly nor give anything of value or Extend favors to any persons for the purpose of influencing rates of wages or the^working conditions of his employes. ahtigle::x. Add: . i; Section 3. Every employer shall provide for the health and i! ' *! 'safety of his workmen. He shall comply with all Kationa, State; |! . ' | and local ordinances and provisions of safety and health; and to ^protect hie employes by Workmen's Compensation Insurance accord| 16 ing to the amounts required in the State of Jurisdiction or the United States Employes Compensation Insurance if that State has not established a compensation scheme forthls industry. -*v standards for safety and health shall be submitted by the Code Authority to the Administrator for approval within six months after the effective date of this code. ' Ur. McQuillen: Mr* Administrator, this merchandising plan that is discussed in amendment 6 ----- ^ Mr. Uabrlelson: Yes sir. ' - '' Mr. McCJulllen: Does that refer to the merchandising - : plans that were submitted some time in January I think for con sideration? Mr. G-abrielson; The merchandising plan that was sub-. ! mltted in January, as I understand it, was the merchandising plan of the brake-lining division. This has no reference to the .the brake-lining division as such, and I do not understand that they expect to have any sub-division of that merchandise ; plan at all. You see the way the code ie arranged each divi sion prepares and submits their own divisional merchandising plan. , Thee amendment to the code as submitted here today- are to assist region #1. I have heard no statements or any ; intention on the part of other divisions, or of any of the j - -' ' i othep four divisions to .create, sub-dlvlsions within their own .! r. . ,,; ` ^ * ,r` 1 --- ` . ' 17 : divisional activities. The merchandising plan of the partleu- ii : lar division I understand to have assumed as a unit. i " * : Mr. McQullleni Any merchandising plan will be submitted only.jfc.o the Code Authority for their consideration? <i Mr. Gabrlelson; No, they will be submitted to the sub- j code authority and will be subject to the review of the Admin-- ; letrator. ... \ Mr. McQullleni would you object to changing that to code approval? - .. | ,i Mr. Gabrielsom Yes. I would. 1 would because it ; I would make it inconsistent with the balance of the code. I - ' : :[ . " ... . I Throughout the rest of the code it is provided in regard to j :j various other things "subject to the review of the Admlnistra-- i ; tor. * ' Mr. McQulllen: Any time a merchandising plan would j. i definitely affect the market? Mr* Gabrielson; We hope so. . : Me. McQ,ullleni It will be quite Important that the Ad .. it ; * ministration should approve any such plan or disapprove it? \ Mr. Gabrielson: Under the present thought that we have ;j now, the set-up that we have it says, "subject' to the review 'j ; of the Administrator*" It refers to the merchandising plan an- :i ` i ; proved by three-fourths of the code members of the division and filed with the sub-code authority shall be binding upon all members of the industry, etc. The plan we have pursued is that, 18 i as your records in the department will show, Is that when we : , j had our code prepared and when we had our merchandise plan prer~ ;j pared, rather, we brought it to the Administration and are working on it, working it out with the Administrator. I do J * /' - ' l not think that merchandising plan hao been concluded yet, I ; ' do not believe it has been approved yet; in fact, the general ii ' : I code authority of the.Asbestos.Industry has been advised.that ^ '* the Administration and the particular dlvlcion, which is the 1 | Brake-Lining Division, have finally worked out' all of their !. t, . . -. .. i '. -J ! Ij difficulties and differences in regard to the merchandising plan. We would, very much prefer to keep this amendment, (1) with the other terminology in the asbestos code "subject to review," . .. Assistant Deputy Cook; Do you not think we. man discuss ii that after the meeting, Mr, Gabrlelson, and also the Legal Di li ' ' " . ." | vision? . ]: , - Ur. c-abrielson; Yes. Assistant Deputy Cook: Is there anything else to come Ij j! before the meeting? The next step in the orocedure is for the r` Advisors tO:report;to;.the-.Deputy within 4-8 hours, after which the Deputy renders his decision and takes up the matter fur ther. ' If there 1b nothing, else to come before the meeting, we will be adjourned - subject to the call of the Administrator.! ... (Whereupon at 3:15 ofclock p.m.i, on March IB,''. 1934 , the above hearing was adjourned subject to the call \ of the Administrator) .,