Registry No. 1129--1--06
NATIONAL RECOVERY ADMINISTRATION
PROPOSED CODE OF FAIR COMPETITION
DOMESTIC WATER HEATER
The Code for the Domestic Water Heater Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery administrationn
as applying to this industry
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
WE DO OUR PART
AS SUBMITTED ON AUGUST 31, 1933
DOMESTIC: WATER HEATER MANUFACTURERS' ASSOCIATION
PROPOSED CODE OF FAIR COMPETITION FOR THE
DOMESTIC WATER HEATER INDUSTRY
ARTICLE I PIuRPoSE
The purpose of this Codle is to definitely outline the rules of trade
practice for the Domestic Wlater Heater Industry for full comnpli-
ance withl the Industrial Recovery Act and realization of its objects.
This Code is designed to improve the conditions of labor by reduc-
tion of hours and establishment of minimum wage levels which shall
maintain the highest practicable standard of living; to restore in-
come to this industry which shall assure. its profitable continuance
and" progress in the public interest; to provide as fully as possible
for self-government of this industry in the interests of its wage
earners, its owners and the general public, with revisions of wages
and hours of labor as needed to reflect currently the adjustment to
variations in the cost. of living.
Participation in this Code, and any subsequent revision of or addi-
tion to t~he Code, shall be extended to any person, partnership, or
corporation manufacturing Domestic WVater H~eaters who accepts
his share of the cost andi responsibility, as well as the benefit, of such
participation by becoming a member of the Domestic Wat~er Heater
Manufacturers' Association. No initiation or entrance fees shall be
charged, but there shall be dues assessed equitably and proratedl
among the members upon the basis of their volume of business, to
produce an amount sufficient to finance the activities of the associa-
tion in administering the Industrial Recovery Act and all duties
ARTICLE III DIVISIONS OF TH3E INDUSTRY
A. Piowers.--For the purpose of the administration of this code
the Domestic Water Heater Indlust~ry shall be divided into three gaen-
eral divisions, namely: Tank Water Heaters, Automatic W'ater
Heaters, and Indirect Water Heaters. These may be subdivided to
represent different types of heaters within each general division.
Each division and each subdivision shall designate or establish its
own administrative agency or agencies. Each such division and
sulbdivision shall be independent and self-gaoverninga in respect of
all conditions and problems relating exclusively to the said group.
Proposals in respect of matters affecting more than one division mnay
be initiated by any division, and shall be submitted for consideration
to the Emergency National Committee of the Domestic W'ater
Heater Industr~y, hereinafter described, and its determination shall
be binding upon said division and all other divisions affected thereby.
B. Eseouctie Cornoittee.--Each of the above divisions, and alny
others which may subsequently be formed within this industry, shall
set up an Executive Committee for the purpose of administering
the provisions of the Code, to secure adherence thepeto, to hear and
adjust complaints, to consider proposals for amendments thereof
and exceptions thereto, and otherwise to carry out within the division
the purposes of t.he Nat~ional Industrial Recovery Act as set forth
in this Code.
If a division or subdivision does not concur in the submittal of
this Code; or if, at any time thereafter, a division fails to perform
its obligations as provided hereunder, the Emergency National
Committee of the industry, hereinafter described, is hereby empow-
ered to adopt a Code for the dissenting or evading division and may
provide for the administration of such Code with full authority.
ARTICLE IV--DTIvraon REGUTLATIONS
A. Labor C~ode.--Each division of the industry, and any others
which may subsequently be formed, shall promptly undertake the
formulation of a labor code.
The labor code established by the said division shall, upon ap-
proval of the Emergency National Committee of the Domest~ic
Water Heater Industry, be binding upon all producers in such divi-
sion. The labor code of each division shall contain the following
(a) Employees in this industry shall have the right to organize
and bargain collectively through representatives of their own choos-
ing, and shall be free from the interference, restraint, or coercion
of employers of labor, or their agents, in the designation of such
representatives or in self-organizations or in other concerted activi-
ties for the purpose of collective bargaining or other mutual aid or
(b) No employee in this indristry, and no one seeking employment
therein, shall be required as a condition of employment t~o join any
company union or to refrain fromt joining a labor organization o
his own choosing.
(c) Employ~ers of labor in this industry agree to comply with the
maximum hours of labor, minimum rates of pay, and other working
conditions approved or prescribed by the President.
(d) No individual in the domestic water heater industry will
be employed in excess of fortyr hours in any one week except as
exempt in the Act.
(e) The minimum rate of pay for labor in the domestic water
heater industry shall be 40c per hour.
(f) No person under 16 years of age may be employed in the
ARTICLE VT-E~rERGIENCY NATIONAL COMMITTEE
A. Representfation.-There shall be an Emergency National Com-
mittee of the Domestic Water Heater Industry to consist of a repre-
sentative, or representatives, of each division, selected by the said
division, representatives of the industry at large to be selected by
divisional members, and representatives of any subdivisions which
may' be entitled to representation.
B. Pouoers.--This Emergency National Committee shall be the
general planning and coordinating agency for the industry. Its
members selected by established divisions shall be empowered by
the said divisions to act for them conclusively in respect to all matt-
terss before the committee for consideration and within its jurisdic-
tion. The committee shall have powers and duties as provided
herein, and in addition thereto it shall
(a) from time to time require such reports from divisions as in
its judgment may be necessary to advise it adequately of the admin-
istration and enforcement of the provisions of this Code;
(b) upon complaint of interested par~ties. or upon it~s own initia-
tive, make such inquiry and investigation into the operation of the
Code as may be necessary; a~nd
(c) makes rules and regulations necessary for thle adlministrationl
andi enforcement of this code. The Committee mayr delegate any of
its authority to the National Admninistrator of the industry her~ein-
ARTICLE \TIINDUSTRY REGULATIONS
A. Market~ing C'odes.-The Emergency National C.omnmittee mlay
establish a MCarketing Code with provisions writh respect. to:
(a) group selling;
(b) classification of outlets or purchasers and r~ecognit~ion of
standard a nd economy ically! justifiable price differentials a mong
(c) adoption of uniform grading of products;
(d) simiplification andi standardizationi of products;
(e) cooperative advertising for the industry;
(f) collection andi interchange of credit information;
(gr) cooperative administration of insolvent debtors;
(h) and 'or other aspects of marketing.
B. ReguIlation) of Trade Pr~acticer.--(a) To accomnpis h the purposes
contnpatmplte by this Act., all members of t~he associations and all
subscribers to this code agree that it. shall be an unfair method
of competition to sell below a reasonable cost arr1ivedl at by formula
established by the association.
(b) It. shall be a violation of this codle for any manufacturer or
assembler of domestic water heaters to give rebates, refunds, special
allowances, unearned discounts, or special services of any kind, di-
rectly or indirectly, in connection with the sale of their products.
(c) Every subscriber to thisi code shall publish a sheet or sheets
quoting prices and terms of sale on all of his saleable products, and
it shall be an unfair method of competition to discriminate in their
application between different purchasers of the same kind and class
ARTICLE VII STATISTICS
In order to provide data necessary for the administration of the
National Industrial Recovery Act, the members of the Domestic
WVater Heater Industry shall furnish, and the Emergency National
Committee shall gather, statistical information from all the mem-
bers of the industry.
A-RTICan VIII--NBT[owNB ALDMINISTRATOR OF THE INDUSTRY
The Emergency National Committee of the Domestic Water Heater
Industry shall appoint from its own membership a National Ad-
ministrator of the industry who shall exercise such authority as
may have been delegated to him by the said Emergency National
All communications and conferences of this industry with the
Presid-ent or with his agents concerning the approval or amendment
of this Code or of any of its provisions, or any matters relating
thereto, shall be through the said National Admimistrator of the in-
dustry. The National Adlministrator of the industry shall serve as
an exuecutive agent for the Emergency National Committee of this
industry, and shall be charged with the enforcement of the pro-
visions of this Code and with the duties, through agents or other-
wise, of hearing and adjusting complaints, considering proposals for
amendments an~d making recommendations thereon, approving recom-
mendations for exceptions to the provisions of this Code, and other-
wise administeringa Its provisions. Any division or any adherent
to the provisions of this Code or subject to its terms shall have
the right of appeal to the Emergency National Committee from
decisions of the National Administrator of the industry, and the
decision of the said Emergency National Committee on said appeal
shall be final.
The function of this Administrator shall be the general planning
and coordinating for the Domestic Water Heater Ind2ustryr.
1. No pr~ovision in this Code shall be interpreted or applied in such
a manner as to:
a. Promote monopolies,
b. Permit or encourage unfair competition,
e. Eliminate or discriminate against small enterprises.
2. Every manufacturer of Domestic Water Heaters, whether or
not he is a member of this trade association or otherwise a subscriber
to this code, shall be subject to its regulations as finally approved
by federal authority.
3. This Code or any of its provisions may be cancelled or modified
and any approved rule issued thereunder shall be ineffective to the
extent necessary to conform to any action by the President under
section 9 (b) of the National Industrial Recovery Act.
4. Amendment of this Code may be proposed by any Established
Division or Subdivision to the Emergency National Committee or
may be initiated by it, and when approved by the President shall
5. Violation by any producer of Domestic W~ater Heaters of any
provisions of this Code, or of any approved rule thereunder, is
an unfair method of competition.
6. In order to avoid undue delay3 in mankin~g effective throughout.
the industry this Code of Fair Competition, the following provisions
are adopted, and other provisions of the Code in conflict therewith.
are suspended until such timne as the Emergencg National Commnittee
shall determine that the purposes of the Article have been accom-
a. Each Established Division or Subdivisio~n shall submit as
promptly as possible to the Emergency National Commnittee, a comn-
plete Division code in conformnityv with the general provisions of
this Code. Such Divisional Code, if found substantially to pr~omote
the purposes of the National Code, shall be accep~tedl provisionally
by the Emergency National Committee and its immediate enforce-
ment authorized. The Emergency Nat~ional Comnmittee shall there-
upon proceed as rapidly as practicable to make such adjustments
of and coordination between the provisions in respect to hours, wag7es,
production, and costs of several divisional codes as may be necessary
to bring them into conformity with the provisions of the National
(1e ~l) Codnsultation and negotiation between the Divisions affected.
(2) By its own findings after full consideration of all factors
b. If any Division fails to submit within a reasonable time code
provisions as provided in subsection (a) of this Article, and if in the
judgment of the Emergency National Committee such failure is
unduly delaying the effective operation of this Code, the said Crom-
mittee is authorized to act as a Divlisional agency for said Division
and to submit on its behalf the necessary code provisions which
upon approval by7 the President shall be effective until the said
Division shall have submitted satisfactory code provisions.
7i. This Code shall be in effect beginning ten days after its approval
by the President.
UNIVERSITY OF FLORIDA
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