Code of fair competition for the valve and fittings manufacturing industry


Material Information

Code of fair competition for the valve and fittings manufacturing industry as approved on December 15, 1933 by President Roosevelt
Portion of title:
Valve and fittings manufacturing industry
Physical Description:
ii, 29-45 p. : ; 23 cm.
United States -- National Recovery Administration
U.S. G.P.O.
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Pipe fittings industry -- United States   ( lcsh )
Valve industry -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
Includes: 1. Executive order. 2. Letter of transmittal. 3. Code.
General Note:
Approved Code no. 153.
General Note:
Registry no. 1335-1-03.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004950832
oclc - 31990085
System ID:

Full Text





I' I
Fur sale by the Superintendent of Documents. Washington, D.C. - Price 5 center

Approved Code No. 153

Registry No. 1335--1--03



1. Executive Order
2. Letter of Transmittal
3. Code


This publication is for sale by the Superintendent of Doc~uments, Government
Printing Office, Wa~shington, D.C., and by district offices of thle Bureau of Foreign
and Domestic Commerce.


Atlanta, Ga.: 5041 Post Otice Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Ma~ss.: 1801 c~ustomubouse.
Buffalo, N.Y.: Cha~mber of Commuerce Building.
Charleston, S.C.: L'hamnber of Coummrerce Buildling.
Chlicago, Ill. : Suite 1700,. 201i Nolrth 11'lls Street.
C'leve~land, Ohio: chambuler of CLoliiumerce.
Dallas, Tex.: C~hambePi l Of ('olmulrce ule, Mlich.: 22113 First National Bank Bilng
Houston, Tex.: Chamber of C'ommlerce Buiktling.
Inlianrapolis, Ind.: Chanmber of Comme~rie Buildling.
Jacksonv'ille. F~la.: c:hamiber of Commuerce Building.
Kiansus c~ityv, Mo.: 102,8 Baltimore An ~nue.
Los A\ngeles, Calif.: 1163 South Broadwayn.
Louisville, Ky'.: 408 Federal Building.
Metmp~his, Tennl.: 2290 Federal Building.
1\Iinunepolis, llinni.: 213 F~ederal Building.
N'ew Orlea~ns, La.: Room 225-A, C~ustomhouse.
N'ew 'ork;, N.Y.: 731 Custombouse.
1Norfolk,, Va.: 4100; East Plum~e Street.
Phiiladlelphia, Pa.: 9~33 Commercial Trust Building.
Pittsburg~h, Pa.; C~hamber of Commnerce Buildinig.
Portland, Oreg.: 215 New Post Offce Building.
St, Louis, nIlo.: 506j Olive Street.
San Franelsuco, Calif.: 310 Custombouse.
Seattle, Wash.: 800 Federal Building.

Approved Code No. 153




As Approved on December 15, 1933

Executive Order

An application having been duly made, pursuant to and in full
compliance with the provisions of Ititle I of the National Industrial
Recovery Act, approved June 16, 1933, for mny aypproval of a Code
of Fair Compet~ition for the V'alve and Fittings Mannufacturing: In-
dustry, and hearings having been held therePon and the Ad~min-
istrator having repndered hs report, contaniningr an a~narly~is of the said
code of fair competition together with his recomme~ndation~s and
findings with respect thereto, and the Administrator having found
that th~e said code of fair competition complies in all respects with
the pertinent provisions of title I of said act and that~ the require-
ment~s of clauses (1) and (2) of subsection (a) of section 3 of the
said act have been met:
NOW, THEREFORE, I, Franklin D. RIoosevelt, President of the
United States, pursuant to thle authority vested in me by title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report and recommlendations,
and findings of thle Admlinistrantor and do order that the said code
of fair competition be and it is hereby approved, on condition that
the filed effective price lists, as shown in article IV, section (1),
paragraph (4), shall be open to thie inspection of thne trade factors
Approval recommended :
HUGH S. JoHNson,
December 15, 1933.

DECEMBER 4, 1933.
Thie Wh'Iite House.
SIR: ThiS is a report on the Code of Fair Competition for the
Valve and Fittings Mianufacturing Industry, the hearing having
been held in Washington on the 18th day of September 1933 in
accordance with the provisions of the National Indlustrial Recovery

Employment is limited to 8 hours per day, or 40 hours per week,
with the exception of those employees engaged on emergency, main-
teniance and/ior repair work or in cases where reduction of hours of
hiighly skilled workers would unavoidably reduce or delay employ-
ment of others or cause damage to equipment or products. Exemp-
tions are made for executives and employees in a managerial, advis-
oryv, or technical capacity receiving more than $35.00 per week; and
wantchmlen; provided, that watchmen shall not work more than 6 days
nor more than 56 hours per week.
A minimum rate of 40 cents per hour is established with exception
of 32 cents per hour minimum In the following states: New M~exico,
Texas, A rka nsas, Tennessee, North Ca rol ina, South Carolina,
Greorgia, Florida, A~labama, Miississippi, and Louisiana.
Females employed on operations n7ot requiring technically skilled
men may be paid not less than 90%1 of the minimum rate but not
less than 30 cents per hour. Inexperienced employees between the
ages of 16 and 21 years, a~nd superannuated employees may receive
not less than 80%1 of thle minimum rates; provided, that in total they
do not exceed 5% of the total number of factory mechanical workers
employed by any employer.
The minimum weekly salary of $15.00 per week is established in
cities of over 500,000 population; $14.50 per wFeek in cities of over
250,000 and not exceeding 500,000 population; and $14.00 per week
in any city of less than 250,000 population, except office boys or girls
may be paid not less than 80%0 of such minimum salary.
Complete copies of the wage and hour provisions of this code
shall be posted in conspicuous places by each employer.

In June 1933 employment in this industry had reached the low
level of 16,000 employees, but since operating under the President's
Reemployment Agreement, over 19,000 are now employed. Pay rolls
have correspondingly increased.
The industry is represented by seven separate and distinct groups
brought together under one industrial code. The coordinating of

these units must inevItably result in eliminating many of the Iprawj
tices that have been harmful to the industry in the past.
The Administ~rator finds that.:
(a) The Code as recommended complies in all respects with the
pertinent provisions of Tit~le I of the Act, including, without limita-
tion, subsection (a) of Section 7i and subsection (b) of Section 10
thereof : and that
(b) The applicant grroup imposes no ineqtiitable .restrictions on
admission to mlembersh~ip therein and is truly representative of the
Valve and Fittingrs Alanufacturing Industry; and that
(c) The Code as recommended is not designed to promote monop-
olies or to oppress or eliminate small enterprises and will not operate
to discriminate against them], and will tend to effectuate the policy of
Title I of the National Industrial Recovery Act.
It is recommended, therefore, that this Code be approved on. conl-
dition that the filed price lists as shown~ in Article IV, Section (1)
paragraph (4), shall be open to the inspection of the Trade Fiactors
I~nvan S. JoaNson,



To effectuate the policies of Title I of the National Industrial Re-
covery Act, the following provisions are submitted as a Code of Fiair
Competition for the Va-lve and Fittings Manufacturing Industry, and
upon approval of the President shall be the standard of fair compe-
tition for this Industry and shall be binding upon every member

Prlesidet, Act, Adm7~inistr Iator.--The terms President ", "Act ",
and "Administrator ", as used herein, shall mean, respectively, the
President of the United States, Title I of the National Industrial
Recovery Act, and the Adlministrator of said Title I of said Act.
Institute.--The term Institute ":, as used herein, shall mean the
Valve andl Fittings Institute.
Di~rctorsc.-The termn Director ", as used herein, shall mean the
Boards of Dir~ector~s of the V'alve Division andl of the Fittings
Division of t~he Inst.itute actingb jointly Ftig" sue een
Pr~odulcts.-The termi '' alves "ad"Ftig sue een
include all dlesigns of valves, pipe-fittingas, fire hydrants, and acces-
sories, of all classes of ferrous and nonferrous materials, for use
in the handling of all classes of fluids and gases, such as steam, water,
oil, gas, air, etc.; provided, however, that as used in this Code, these
terms shall not. apply t.0-
(a) Va~lves and/or fittings, made by a producer of products within
another Industry as a part thereof or of a separate assemmbly peculiar
to such other Industry, including parts therefore anl/'or for servicing
such articles and not. produced and/or sold as separate valves or
fittings in the general valve or fittings market;
(b) Plated or plain brass plumbing fittings, show-er fittings, lava-
tory fittings, sink fittings, drinking-fountain fittings, and other
finished, plated, or plain brass fittings for use in connection with
plumbing fixtures;
(c) Such gas cocks as are made and sold for use on gas ranges,
gas water heaters, gas space heaters, gas furnaces, gas conversion
burners, gas incinerators, gas refrigerators, or any other household
appliances ;
(d) C~at-iron fittings having hub, bell, or spigot connecting, ends
for attachment to cast-iron "' soil pipe and/or "' pressure pipe 'hav-
;ng simiilar connecting ends;
(e) The products of t~he Cast Iron Pressure Pipe Industry, pro-
vided,, how-ever, the provisions of Article IV and no other of this

Code shall apply to those members of t~he Cast Iron Pressure Pipe
Industry who normally quote or sell cast-iron flanged fittings and
flanges of diameters sixteen inches or less on a list and discount
basis, the said provisions of Article I\' hereinabove to apply to, and
only to, cast-iron flanlged fitt~ingos and flngnes of dliameter~s sixteen
inches or less in instances where they are qluotedl or sold on a list
andi discount basis by such member of the Cast Iron Pressure Pipe
Industry ;
(f) patented lubricated valves aid, or cocks;
(g) pipe nipples as defined in the Code of Fair Competition for the
Pipe-Nipple Mlanufacturing Industry, duly approved by the Presi-
dent on November 27, 19-33..
M2emzbers of the Industiy.--T~he term "~ members of the Industry "'
as used herein, shall mean any prod-ucer who manufactures, wholly
or in pr~t, any of t.he products of the Industry, as herein definedl,
for sale; and any Pipe-Fabricator who assembles any of said prod-
ucts with pipe fabricated by him, for sale.
Members of code.--The terml '" members of Code ", as used herein,
shall mean any member of the Industry who shall expr~esslyy signify
assent to this Code.
Mlarklets.-T~he term markets "', as used herein, shall mean
SECTION 1. No provision of this Code relating to prices or terms of:
se;lling,~ shipping or marketing, shall apply to export markets. Ex-
port markets, as used herein, shall include manrkets in any terri-
tories or possessions of the United States not on the Continent of
North America? and the Panama Canal Zone except whenl the United
States Grovernment is the purchaser.
SEc. '2. Subject to the approval of the Code Authority, the excep-
tions established by t.he: foregoing section shall apply also to sales
or shipments of products of this Industry actually used in manu-
facture or assembly for export markets.
Pi~nunry MVarkXet.-Al primrnly market ~is that in which a IDis-
tributor purchases from a member of the Industry.
"L S'eco~ndary Mlarket~a.--A secondary market is that which ma;1y be
served by a Distributor.
Trade -Factos.--The term trade factors ", as used herein, shall
Dist~ributor.--One whose prIincipal business is thie purchase and
resale, to consumers or other trade outlets, of products of theIndus-
try~, and who maintains a stock of products in sufficient quantity to
render normal service to customers.
Pipe fabricato~.--One whose principal business is thle thread~ingi,
flanging, bending, or otherwise fabricating of pipe to specifications
and dimensions, and who also may purchase products of the Industry
for assembly therewith, for resale to contractors or consumers.
Pipe conLtractor.--One whose principal business is the installation
of piping systems not fabricated by himself or fabricated wholly
or in part by himself.
Genr~ral contractor.--One whose principal business is the construe-
tion and equipment of a, plant for a customer and who sublets the
purchase, fabrication, and installation of piping to a pipe contractor.

Original equlipment ma~nufacturer.--One whose principal business
is the manufacture of devices or equipment in connection with which
products of the Industry are used as parts or accessories.
Cozs~u-me'.--One who purchases products of the Industry for his
own use and not for resale.
Emnployee.--The term "' employee ", as used herein, shall mean any
person engaged in any phase of the Industry in any capacity in the
niatur~e of emnployee, Irrespective of the method of payment of his
Emnploye~.--The termn employer ", as used herein, shall mean any-
one who engages the services of employees.
Effective d~at!.--The term "Leffective date ", as used herein, shall
mean five (5) days after this Code shall have been approved by
the President of the Unzited States.


SECTION 1. All members of the Industry shall be subject to the
provisions of the Act set fourth in subsection (a) of Section 7, Title
I, thereof, as follows:
(1) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
laborr, or their agents, in the designation of such representatives or in
self-organization, or in other concerted activities for the purpose of
collectieP bna~rgaining or other mutual aid or protection;
(2) That 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, orgaruzmng, or assisting a labor organization
of his own choosing; and
(3) That emnployers shall comply with the maximum hours of
labor, miiinimum rates of pay, and other conditions of employment.
approved or prescribed by the President.
SEc. 2. (1) No employer shall employ (a) any person under the
age of sixteen (16) years, or (b) any person under the age of eighteen
(18) years in any hazardous occupation; provided, however, that
nothing contained in this Article III shall exempt any employer
from complying with employment regulations duly enacted by the
State in which he is engaged as an employer subject to such
(23) Femnale employees performing substantially the same work as
male employees shall receive the same rate of pay as male employees.
SEc. 3. (1) No employer shall pay any factory or mechanical
worker less than thirty-t~wo (32) cents per hour in the States of
New M~exico, Texas, Ark)ansas, Tennessee, North Clarolinat. South
Carolina, Georgia, Florida, Alabama, Mississippi, and Louisiana;
nor less than forty (410) cents per hour in any other part of the
UZnited States, or any territory or possessions thereof, on the Con-
tinent of North America; provided, however, that an employer may
employ (a) female employees, for such operations as do not require
the strength and technical skill of men, at not less than 90%~ of the
minimum rates fixed in this paragraph, except that in no case shall
the rate be less than thirty (30) cents per hour; subject, however,

to the provisions of Section' 2, paragraph 2 of this Article; and (b)
inexperienced employees of the classes m~entionedl in this paragraph,
between the ages of sixteen (16) and twecnty-one (21) years at a
rate of not less than eighty (80) pecen'ct of the m~inimumz ra~tes fixed
in this paragrraphl; prov\-idedl further, that the total munlber of those
less than tw-enty-one years of age so compensrllated~ by noyf employer
shall not exceedi five (5) per~icnlt of the total number fall those
employed as factory and mechannical workers.
(2) The ratesQ of comnr~pensaltiorn est bll~ilhed in fo~regoi~ng Paragraph
1 shall be guaranteed minimumu rates regardless of whiiether thle em-
ployee~ is comlpensanted~ on the ba-sis of a time rate, pi~c~ewor~k or
otherwise; and any~ factory or mnechlaniedl workrer wF\ho shall be re-
quired to work for mocrle than the maximum hours set forth in
Paragraph 1 of Se~ction 4 hereof, shall be comrpensatedc' for the over-
time worked at ~the rate of time and one half of his or her regular
(3) No employer shall pay7 any employees not coer~ed under Para-
graph 1 of this Section 3, including anyT necournting clerical, office,
service, or sales employee within the United States or any territory
or possessions thereof on the Continennt of North Amrin,~~c~ less than
at the rate of $15.00 per weekr in any city of over 500,000 population,
or in the imlmediate trade area of such. city; nor less than at the rate
of $14.50 per week in anyT city betw-eenI 250,000 and 500,000 popula-
tion, or in the immnedinto te~nde area of such city; nor less
the; ra te of $14.00 per week: in any city or trade area of less than
250,000 poopulation, wrchether these m11inunum1I1 rates of icomnpensantion
are calculated on an hourly, weekly, monthly, piecework, or any
other basis; provided, however, that an emloyerS~1 may employ office
boys or girls at not less than eighty (80) percent of the minimum
rates fixedl in this pal~rlagraph provided further, that the total num-
ber of office boys and girls so compensanted by anyr employer shall
not. exceed five percent of the total numb'ter of all employees covered
by this pa ragraph.l
(4) The hourly wage rate or salary of all emp~loyees receiving
more thann thne minimumrl rate or salaIry pr~ovided~ in this Section. 3
shall be equitabl~y adjusted -within five (5) days from that on which
the President apprlove~s this Code, if such adjustments shall not have
been prevriously made. Report of such adjustments, whether made
prior to or. subsequent to thle approval of this Code, shall be mad3re to
the Codle Aulthority within 90 durs from the dante of appr,1oval of this
(5) To permit the emp~loy~ment of workers who are physicanly
hlandicapp~ed and to avoid their b~ecomingr a burden to the St~tate~, uch
employees shall be paid- not less9 than eighty (80) percent of the
minimum ra~tes, pr~ovid~ed however, that such employees toge~thfer w~ith
such employees as mentioned in Paragrar~ph 1 (b) of Section 3 of this
Article III shall not exceed in number five (5) percent of the total
number of wFor~kers employed by a mllnembe of the Inrdustry, anld that
each empllloyer shall report, monthly to the Code Authoritiy the num~-
ber and the names of such employees.
SiEC. 4. (1) NO employer shall emlploy any factory or mechanical
w~orkler for more than forty (40) hours in anyl\ one week and no suchl
26618"---2-l+--153-3--- Y2

employee shall be employed for more than eight (8) hours in any
one day.
(2) NJo employer shall employ any other employee including ay
accounting, clerical, office, service, or sales employee (except outside
salesmen) for more than forty (40) hours in any one week.
(3) The maximtunl hours fixed in paragraphs 1 and 2 of this
section 4: shall not apply to (a) employees on emnergency maintenance
and/or repair w\ork, or to cases where reduction of hours of highly
skilled workers would unavoidably reduce or delay production or
employment of others or cause damage to equipment or products;
(b)wathme, provided, however, that watchmen shall work not
more than six dasi ahsvndypriod nor more than fifty-
six (56) hours in any one week; nor to(cexutieanemles
in a managerial, supervisory, or technical capacity receiving more
than $35.00 per week.
(4) The maximum hours hereinabove prov,\ided mar~k thle total
number of hours during which any employee may be employed
whether by one orr more employers; provided however, that if any
employee should work for more than one employer for a~n aggrre-
gate period in excess of such; mrJaximumn hours without the knowledge
or connivance of any one of such employers, such employer shall
not be deemed to have violated this par~agraph.
(5) Nio employee shall be classified in any one of the foregoing
exemipted classes unless he performs functions identical with those
performed by employees thus classified on June 16, 19;33.
(6) Each employer shall post complete copies of this Article TII
in conspicuous places in his establishment or establishments accessible
to his employees.
AcrrrIar IVr--DISnuRIRrION

SEC'TION 1. Pzlb ished Price Policy.--(1) Each member of t~he In-
dustry shall publish the prices current on th~osEe of his products which
are normnally available to the trade~. Within five days after receipt
of notice of thet effective date of this Codle, he shall file, with the
Code Authorit~y, his prices to each of the Trade Facto'rs defined
inr Article II, provided that the lowest prices that may be filed shall
be the prices at which he shall sell his products to his Distributors.
In all practicable instances, a member of the Industry shall employ
the pricing system of list-price subject to discount or plus per-
centage ", and where this system~o is found impracticable, the m-emnber
of the I~ndustr shall file his equivalent net prices with the Code
(2) Eachi member of the Industry shall also file with the Code
Authority a complete statement of his terms and other conditions of
(3) Thereafter, revised prices and,/or revised terms and other
conditions of sale shall. likeewise be filedl with the Code Authority.ipf I~f
the revised prices of any such member are lower than, o fth
revised terms and other conditions of sale of any such member are
more favorable to the purchaser than the prices and/or terms and
other conditions of sale of such member then on file with the Code
Authlority, the ~r;revised rice and//or revised terms and other con-
ditions of sale shall not become effective until 10 days after the

date of the filing thereof; otherwise the same shall become effective
on such date as the member of the In dulst ry filing the same shall
designate. Any other mrembers of the Industr~y mayn, if they so
desire, filee revisedl prices and/or revisredl terms atnd other c-onditions
of sale whiichi may become effective on~ such date as the member of
the Ind~ustry filing the sam~e shall designate, which date shall not be
earlier than the date on which. the revised~ pricesl and/or revised
terms and other conditions of sale first filed shall become effectiv-e,
if the, revisedt prIices of such other members are not lower tha~n, or
if the revised terms and others co~nditions of sale are not more favor-
able to t~he purchaser thann the revised prices and/or revised- termlls
and other conditions: of sale first. fled:; otherwise thie revised prices
and/or revised' terms and other conditionsr of sale of such other
members shall not become effective until 10 danys after the r'ate of the
filing thereof. No prices filed under the provisions of this scc-tion
shall b~e retroactive. Any member of the Indulstr~y m-ay, upon reqluest
and upon payment of the reasonable cost th-ereof by such mnembler,
obt.ain from the Cod-e Au~thor~ity copies of any such p~ricecs and/or
terms and other conditions of sale so filed.
fh(40) All prices and/or terms and other cond-itio~ns of sale filed at
theoficeofthe Code Authority as int this Section. 1 provided, shall
.be open to the inspection of members of the IndustryT.
(5) N~o member of the Industry shall sell or offer to sell, directly
or indirectly by any means whatsoever to any Trade-Factors, any
pIroduct, of the Indnetry at a price or on more favorable terms anrd/or
oter conditions of sale other than those which he has filed with
thre CodeP Authority and which have beco~mel effective.
(6) All prices anrd/or terms and other conditions of sale and re-
visions thereof shall become e~ffective not later than ten (10O) days
after ~filing.
SEC. 2. Marktc' Study.--The Code Authority may undertake the
sturdy of reco~~mmenda tions to be submit ted to the Adm~inistrator for
consideration reintive to gradalrtio-ns of factory~-shipmnent price ratcs
for the various Trade-Factors ~which study shall have due regard
to the functions performed and services rendered by the Trade-
Factors and to differences in the cost thereof.
SEc. 3. Gradation of product values.-(1l) U~nder a plan subject
to the approval of the Ad~ministrator, th~e Institute shall formulate
rand esta~blish indc~exes of general recla-tion values of sizes and/or
types a nd weights of various classes or kinds of products of the
IZndulstryc, and when any such index has beein so establishedl each
mlemlber of the Indneitry w-ho is a Proldurcer of the: products for which
eabch. such index has been establishedl, shall publishi and employ List
Prices reflectingf the index value w~ith the least pernetie~nble delay
(2) If any alction~ take byT the Institutfe under this Section 3 shall
work any harndship on anry member of the ICndu~try wh~o is the pro-
dulcer of' a p!llrodct c~over~e by any! such in~dex, ruchl member of the
Industry mayT appear to the Adml~inistraLtOr for relief.
SEC. 4. HL~tatnin po~ic/.--(1) Each qulotation shall define terms
and conditions of sale.
(2) Each~ quor~tation shall be a firmn p~ropocsal subject to revision only
to correct errors; or, when petrmnissible under conditions specified
therein, to adjust to rerflect changes in published pric~es.

(3) No member of the Industry shall quote a lump-sum price on
any schedule of products of this Industry which does not itemize, or
which is lower than, the sum of suchi member's regular unit selling
prices of the particles comprising the schedule; and, when quoting a
comibinedl bid including purchased materials, no member of the Indus-
try shall quote prices for such purchased material less than the
published- prices of the manufacturer t~hereof.
From timle to time the Code Authority, subject to the approval of
the Atdministrato r may classify articles that are to be treated as
units undi'/or groups of units within thle meaning of this paragraph.
(4) No member of the Indust~ry shall be permitted~ to revise any
quotation on products of this Indlustry merely for the purpose of
"7 matching~ or underquoting prices previously quoted by a
com pet itor.,
(5) Niew schedules of prices shall be applicable to all noncontract
business pinced3 beginning as of thle effective dante thereof, the date
of the pheainlg of business by mail to be determined by the postmark.
(6) Nio member of the Industry shall give advance notice to the
trade of an intention to file revrisedl prices on hlis products.
(7) No member of the Industry shall predate any nor
accept anyr predated order or other contract.
SEc. 5. Credit poijcy~.--Credit, privileges shall be restricted to those
whose moral and financial integrlity may be reasonably well estab-
lished. The p~urplose of this broad~ rule is to make it incumbent upon
each mlembller of the Indlustry to exercise due diligence and sound
judgment~t in earnest effort to avoid action relating to the granting
of clrediit privileges which~ might introduce inlstability~ into the market.
SEC. 6. T87788 Of plyinrent.--(1) Invoices shall bear the date on
which delivery is made to the carrier at the point of shipment. Post-
datingr of invoices is forbidden.
(a) For purposes of simiplification the following terms are em-
ployed in succeerding pafragraphs of this Section 6i, viz: Pacific
ZLone co~mprising Alasks andl the States of Arizona, California,
Ore on, andl Wash~in ton; Eastern Zone comprising the District
of C'ollmb~in and~ the States not included~ in the PacificZone.
(2) The net duie date shall not be later than the last dlay of the
first month following date of invoice; except that the net due date
may be the last day of the second monthi following date of an invoice
cover~ing shipment (a) to the Pacific Zone from a member of the
Indlustlry'ss plant situatedl in the Easter~n Zone, or (b) to the Eastern
Zonre froml a mzembuer of ther InduILstr.y' plant situated in the Pacific
Zone. Accounts not paid- within the allowaible net period shall, so
far as practicable for each one of the members of thle Industry, be
made to bear interest from the net due date at an annual rate of six
(6) percent unless the! legal rate in th~e State in which the debtor
is situated: is less than six (6) percent, in which event, such legal rate
shall apply.
(3) No member of th~e Indust~ry shall give any cash discount at a
rate exceedinga two percent (2%), and the period in which it may be
deducted shall not, exceedl ten (10) days fromr date of invoice with the
following exceptions:
A9. That thle period may be extended to thirty (30) days from
date of invoice covering shipment (a) to the Pacific Zone from a

member of the Industry's plant situated in thte Eastern Zone, or (b)
vice versa.
B. That to purchasers whose requirements necessitate frequent
billings, the cash discount may be made deductible from remittance
covermg~ all charges of the first half-month perio (i~e., the 1st
to 'and 15th) and fromt remittance cov.eringa all crgsof the second
half-monith period (i.e., 16th to and last day of the month) as
follows :
(a) For the first half'-month p~eriod, when both parties are in the
Eastern Zone or when both parties are? in the Pacific Zone~-on the
25th instant; and when the parties are nlot in the same zone, on the
25th proximo.
(b) For the second half-mnonth period, wPhen both parties are in
the Eastern Zone, or when both parties are in the Pacific Zone, on
the 10th proximo; and when the parties a~re not in the same Zone-
on the 10th of th~e second month follow-ing.ealwdo tasrin
(4)In oisac hl ahdsoutb loe ntascin
financedl through the medium of a trade acceptance or a note.
(5) The agreement to accept bonds or other securities involved in
the financing of a project in part or in whole payment for products
of the Industry is forbidden.
SEC. 7. Te~rms of shipment.--(1) Eachl memberl of the Ind~ustry
shall provide that the purchaser shall assume full responsibility for
losses or damages created by conditions beyondl the control of the
member of the Industry. In instances where it is required that
transportation charges be prepaid by the seller, the member of the
Industry shall provide that such prepayment shall not relieve the
purchaser from any portion of the purchaser's responsibility as
therein provided. T'he member of the Industry, however, shall pro-
vide all reasonable assistance to the purchaser in the preparation of
justifiable claim~s.
(2) Eachl member of the Industr~y shall provide that he shall not
be responsible for dlelays caulsed by strikes, fires, or other similar
causes beyond his control, nor for any delays caused by changes in
(3) Thle Code Author~ity mnay study the problem of freight allow-
ance and present recomnmendations to the ALdministrator w~ithl respect
(4) Fromi time to time the Code Authority- mary approve standard
practices for p>ackingr and shipping "~American Standa~rd pipe fit-
tings, and upon such approval each member of. the Industry1 shall
make an extra charge sutfieient to dlefray t~he extra cost; to such mnem-
ber for any special packing and/or shipping requiremnents of the
Pu rch ase r.
SEC. 8. IJ/COj~~t~7Nltl G/d 8pe Cr'iniliOn.- (1_) No member of t~he I~n-
duistry shall accept any order for or otherwise commnit himself to
deliver products on any other basis than the basis of price subject
to change upon the filing of revised schedules by such member, except
in the case of :
(a) Fully specified orders the execution of which has been delayed
or which may be delayedl through no fault of the purchaser; or
(b) Orders for products for use in a specific project as provided
in Section 9, paragraph (1) of this Article IV; or

(c) Orders by original equipment manufacturers for products to
be used as parts or accessories, for the devices or equipment
manufactured and sold by such manufacturers.
SEC. 9. F.ut.Ure delivtery commlliitme n ts.-(1)j A member of the In-
dustry miay commiit himself to furnish products of the Industry over
an extended period, at fixed prices, for use in the construction of a
particular project, if the character of the project is clearly defined
and identified, and if the volumie of products to be delivered is speci-
fled within minimum and maximum limits defined in terms of value
and,'or quantity on the basis of anticipated requirements.
(2) Proposals to furnish products under a prospective contract
for use in the construction of a giv'en project shall specify a definite
acceptance dlate, not later than which the prospective purchaser must
formally accept the samne in order to obtain advantage of the prices
quoted therein; except, however, that in the event the member of the
Industry advances his prices prior to the previously specified accept-
ance date, he may change the acceptance date to not later than fift~een
(15) days subsequent, to thie eff~ectiv.e date of his new prices
(3) W'hen a member of the Indlustry has conmmitted himself under
such contract, he shall immediately register the fact with the Code
Authority, giving it (a) date and number of the contract; (b) name
and address and character of thie project; (c) namie and address
of thle contractor who is to perform the work;3 (d) namne and address
of the charges; (e) total value and,*or quantity, size, and kind of
products he has contracted to furnish; and (f) discounts and/or
net prices at which the contract was closed.
(41) The member of the Industry shall identify each invoice
applying to service against such contract by means of (a) date and
number of contract; (b) name and address of the project; and (c)
the pricinga therein by means of the term contract price when
net. prices are employed, and the term contract discount before
each discount when the billing is done by list price and discount
or plus percentage.
SEc. 10. Factoryv-worlaekouse serv2ice.-- The Code Authority may
undlertauke the study of recommendations to be submitted to the
Admlinistrator for consideration relative to proper charges, terms,
andi conditions for renderingr service out of or through factory-ware-
houses operatedl by members of the Industry and for r~enderinga other
classes of special delivery services which study shall have due regard
to thle cost of services rendered by such factory-w~arehouse.
SEC. 11. CO)1ig'led stfochk.--The Code Authority shall investigate
problems presented in the elimination of consigned stocks of products
of the Indul~stry and shall recommend to the members who are parties
to then existing arrangements with respect to shipments on consign-
ment, such action in respect t.hereof as the Code Authority shall deem:
proper and designed to accomplish t~he termination of all such
arrangements at as early a date as possible.
S~EC. 1.2. Dis817888 n,8Chcandise.--Surplus stocks or inventories that
must, be converted into cash to meet immediate needs and obsolete
lines may be sold at such prices as are necessary to move the prod-
nets into purchlasers' hands; provided, however, that all such surplus
stocks or inventories and obsolete lines first must be reported to the
Code Authority and shall be disposed of only subject to the ap-

proval of the Code Authority and under such rules; and regulations
as the Code Authority ma pirescr~ibe; provided further, that appeal
may be hadl to the Administrator by a member of the Industry from
any decision of the Code Authority; provided, further, that if the
Code Authority does not notify the member of the Inusutry of its
decision within ten (10:) days from t~he receipt of the application,
such member may app~eal to the Administrator.
SEc. 13. ProducingY affli~ite.--AL sale made by any7 member of the
Industry through any affiliated producing company of such member
shall be deemed to be a sale mande by such member.
SEC. 1-1. CHn.fcir f~trade pryi~cfLes.--(1) After an awar~d has been
made by a duly authorized authority, there shall be no attempt to
prevent a contract being ma~de thereunder, nor shall there be anly
attempt to induce a breachi of contract betw-eeni any competitor and
his customer.
(2) There shall be no (n) dispniarang statements made respect-
ing another member of thie Ind~ust~ry s business methods, practices,
pdrroducts, or fina crialinegty (b) publiention or circulation, by
advetismentor therise ofany false, misleading, or deceptive
statement conlcerninlg t.he grade, quality, character, or origin of
products; or (c) misbranding~ for the purpose or with the effect of
misleading or deceiving purchasers or p~rosp~ective purchasers with
respect to quantity, quality, size, grade, or substance of products.
(3) There shall be no (a) payment. or allowance, in the form of
money or otherwise, of secret rebates, secret refunds, secret credits,
or unearned discounts; (b) payment of bribes or other forms of ille-
gitimate inducement, in the form of money or otherwise, to in~fluence
the specification, demand, or acceptance of products; (c) any exten-
sion of services or privileges to certain purchasers not extended to
all purchasers of the same class, under likie terms and conditions; or
(d) any agreement to assist any purchaser of products in the sale of
bonds or other securities in which he may be interested directly or
i ndi rectly3.
(4) There shall be no substitution or deviation from the specifi-
cations or furnishing products of the Industry other than those
described in the quotation.
SEc. 15. Guaranty on pr'odu-ct.--(1) Mlembers of the I~ndustry shall
place on all articles made byp theml an :identifying mark, such as their
name or trademark. unless the size of design of the article will not
permit of their doing so.
('2) No guarantee on product, whether given voluntarily or upon
request, shall provide for more than (a) freedom from defects in
material and workmanship under the use and service for which thle
article is recommended by the producer thereof, and (b) the obliga-
tion to replace or repair any defective part or parts returned to
his factory.
(3) A guaranty which miay make the producer responsible for con-
sequential damnages and other items of expense which normally can-
not be anticipated and equitably comprehended in original costs or
selling prices, creates conditions of unfair competition and therefore
is forbidden.


SECTION 1. (1) Immediately after the approval of this Code by
the President there shall be constituted a Clode Authority consisting
of not less than eight and not more th~an eleven members as herein-
aft~er provridedt.
(2) The Directors shall nominate fourteen (14) persons and the
members of the Code, at a duly called meeting thereof, or by letter
ballot, shall vote on the persons so nominated and t~he seven (7)
persons receiving the greatest number of votes shall be members of
thte Code Authority, w~ho shall serve for such terms as the directors
shall determine; and the remaining seven (7) persons shall be alter-
nate members of' the Code Authority.
(3) M~embers of the Ciode who are not members of the Institute
may elect one member of the Code Authority and one alternate by a
fair method of election approved by thle Admiinistrator.
(4) The Admninistrator, in his discretion, may appoint not more
than three additional members without vote to represent the Ad-
.ministrator or such groups or interests as may be agreed upon.
(5) ~In order that the Code Authority shall at all times be truly
representativee of the Indust~ry and in other respects comply with
th~e provisions of the Act! the Adlministrator may provide such hear-
ings as he miay deem proper; and thereafter, if he shall find that
the Code Authority is not truly representative or does not in other
respects comply with the provisions of the Act, mnay require an
appropriate modification in the method of selection of the Code
(6) No inequitable restriction on membership in the Institute shall
be imposed at any timie.
(7) Nothing contained in this Code shall constitute the members
of thle Code Authority partners for any purpose. Nor shall any
provisions of this Code be considered to render any member of the
Code Authority liable in any manner to anyone for any act of any
other member? officer, agent, or employee of the Code Authority.
Nor shall any provisions of this Code be considered to render any
member of the Code Authority, exercising reasonable diligence in the
conduct of his duties hereunder, liable to anyone for any action or
omission to act under this Code, except for his ow-n willful mis-
feasance or nonfeasance.
SEC. 2. (1) 1 e COde Authority is hereby designated as the agency
to coop~erazte w-ith thle Administr'ator in administering, supervising,
and promoting observance of the provisions of this Code, subject
to the righlt of the Admlinistrator upon review to approve o~r dis-
:rpprove any action taken by~ the Code Author~ity.
(2)l The Code Authority may adopt byvlaws and rules and regula-
tions for its procedure and for the administration and enforcement
of the Cod-e.
(3) The Code Authorit~y shall have the powers and duties set
forth in this C'ode.
SEC:. 3. The Code Authority may (a) investigate on its own initia-
tive, or on complaint, the operation of this Code and any violation
thereof by anyone; (b) hold hearings and grant to persons
interested in the subject matter of any investigation or complaint

a fair and reasonable opportunity to be heard; (c) make findings
of fact and state its conclusions as to whether or not there has been
any violation of any provision of this Code; and (d) take such steps
within its authority as it may deeml necessary or adlvisable us
connection therewith.
tSEC. 4. NO member of the Code Authority shall part~ic~ipat~e as
a member of such C'ode Aut~hority in any proceedings in which hie is
interested by virtue of any connection w~ith the complainant~ or re-
spondent and in the event of any such disqualification the remaining
members of the C'ode Authorit.y shall1 certify such dlisqyualificat~ion,
togaether wTithl the r~eason~s therefore to the Chairman of the Code
AuthorityS who shall promptly desiignate one of the duly elected
alternates to act in the place of the disqualified member of the Codle
SEC. r7. The C'Ode Authiority may exercise its functions through
such agents or committees as it mnay select, to operate under its
SupervISIOn .
SEC. f>. (1) The C'ode AuthorityT shall have power to require fromi
all members of the Industry such information and reports as may be
pertinent to th~e admiinistration of this Code, including, but without
limiitation, reports on th~e followings subjects:
Emp~loymenti.--(A ) Separations du~ringr previous month: (a)
numbl:er of quit.s; (b) number of dischargets; (c) numbrnci of layoffs;
and (d) total number of separations.
(B) Number of Accessions during previous mnonith includingr
both first employment and rehires).
(C) Number of fnetory workers on Pay Rolls: (a) Numrber on
pay roll at bseginninga of previous month.
(D) Fnet.ory Pay-roll Analysis (for previous m~ont~h to end of
Inst full calendar w~eek): (a) Wag~e rate, elusses; (b) number em-
played in each rate-class; andt (c) total hours worke~td in each rate-
Distrizbustion.- A~. Total of shipments billed during previous month
(to be reported by tonnage, piece or dollar value, whiche\-er is the
most. practienble mepthodl of report~ing).
(2) In addition to information required to be submitted to the
Code Author~ity, there shall be furnished to Government Agencies
such statistical information as the A~dministrator miay deem nmeces-
sury for the purpose recited in Section 3 (a) of the Act.
SEC. 7i. (1) If an appeal is desiredl from a determination of the
Code Authority to a Boatrd~ of Appeal constituted in accordance
with this section, notice shall be given of such intention to the Code
Authority within five (5) days after receipt of notice of the de-
termination of the Code Authority; provided, howeverl, that thle
determination shall be controllimr until a decision on the appeal
has been rendered by t~he Board ofelppeal.
(2) The Codle Aixthority shall designate its appointee, who sha~ll
be ready to proceeds with the appeal within five (5) days after notice
has been received by it.
(3) A Board off Xppeal shall be composed of three (3) members;
one chosen by the C'ode Authority, one chosen by5 the appellant, the
third to be chosen by them~. If t'he first two chosen ~fail to agree in
their choice of the thirdl member, then the third shall be appointed
by the Admninistrator.

(4) Such Board of Appeal shall have authority to hear appeals as
provided in Paragraph (1) of this Section 7i, and shall affirm or
reverse the determination of the Code Authority in the case under
(5) N~o provision of this Sect~ion 7 shall deny to any member of
the. Code or to any party in any proceeding the right to appeal to the
Admlinist~rator nor prevent, at any time, direct appeal to him from
any determination of the Code Authority. The Code Authority
may', if it chooses, invoke the procedure provided for in this section.

SECTION 1. (1) Each member of the Code shall be entitled to par-
ticipate in and share the benefits of the activities of the Code
(2) Each member of the Code shall pay his pro rata share of the
expenses of administration of the C~ode either by becoming a member
of the Institute or by payment of an equitable pro rata share of the
expense of the administration of the Code, such pro rata share to
be, determined by the Code Authority, subject to the approval of the
Administrator, on the basis of t~he dollar value of net sales.

SECTION 1. This Code and all the provisions thereof are exPt;ressly
made subject to the right of the President, in accordance wit the
provisions of Section 10 (b) of the National Industrial Recovery
Act, from time to time to cancel or modify any orderaprvl
license, rule, or regulation issued under Title I of saicl ape~t, oaand
specifically to the right of the President to cancel or modify his
approval of this Code or any conditions imposed by him upon his
approval thereof.
SEc. 2. Such of the provisions of this Code as are not required
to be included therein by the National Industrial Recovery Act may,
with the approval of the President, be modified or eliminated as
changes in circumstances or experience may indicate. It is contem-
plated that from time to time supplementary provisions to this Code
or additional Codes will be submitted for the approval of the Presi-
dent to prevent unfair competition in price and other unfair and
destructive competitive practices and to effectuate the other purposes
and policies of Title I of the National Industrial Recovery Act con-
sistent with the provisions hereof.
SEc. 3. (1) Any member of the Code may propose an amendment
thereto; when any duly proposed amendment shall have been ap-
proved by vote of a majority of the Code AuthorityV, it shall be sub-
mitted to a joint meeting of all said members, and, when approved by
vote of a majority of such members, such amendment shall be sub-
mitted by the Code Aluthority to the President of the United States
for approval.
(2) The proposed amendment shall be set forth in the notice of the
meeting at which the amendment is to be considered and acted upon.


No provision of thiis Code shall be so applied as to permit
monopohies or mlonopohistie measures, or to ehinuna~te, oppress, or
discrimiinate against small enterprises.


SECTION 1. ThIis C'ode shall be effective five (5) days after the
approval thereof by thle Presidenlt of the U'nited~ States, and it shall
continue in force and effect. until June 10, 1033, or as provided in
Section 2 (c) of Title I of thec Act, until sulch earlier d~ate as that on
which the President of thie UTnited States shall by proclamaition, or
t~he Congress of the Unlited States shall by joint resolution, declare
that the emlergency recognized by ~Section 1, Title I: of the Act, has
Approved Code No. 153.
Registry No. 1335-1-0)3.

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