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For sale by the Superintendent of Documents, Washington, D.O. - Pric 5 cents
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
HEAVY FORGING INDUSTRY
AS SUBMITTED ON AUGUST 30, 1933
REGISTRY No. 1110--01
The Code for the Heavy Forging 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 AJd ministration
as applying to this industry
GOVERNMENT PRINTING OFFICE
WABRINGTON : 1933
CODE OF FAIR COMPETITION OF THE H-EAVY FORGING
Wherever used in this Code or in any schedule appertaining hereto
the terms hereinafter in this Article and in Schedule E annexed hereto
defined shall, unless the context shall otherwise clearly indicate, have
the respective meanings hereinafter in this Article and in such
Schedule E set forth. The definition of any such't~er~m in t~he singular
shall apply to the use of such term in t~he plural and vice versa.
SECTION 1. The term "the United States"" means and includes all
of the territory~ of the United States of America on the North Ameri-
SEC. 2. The term "the President'" means the President of the
United States of America.
SEc. 3. The term "the Industry '" means and includes the business
of manufacturing and selling in the U3nited States hammered an~d/or
pressed forgings, except as produced andl/or sold by an owning or
affliating department or company as a part of the products of another
industry, as defined in Section II, Paragrraph (a) hereof.
SEC. 4. The term memberr of the Industry means and includes
any person, fi rm, associations, or corpora tion operatmig a, plan t or pla nts
in the United States for the production of products, or any of them.
SEc. 5. The term the Code "' means and includes this Code and
all schedules atnnexied hereto as originally approved by the Pr~esident,
and all amlendmentss hereof and thereof madle as hereinafter in Article
SEc. 6. The terml memberr of thce Code." means any mem~rber of the
Industry who shall have become a member of the. Code as hereinafter
in Section 3 of Article III provided.
SEc. 7. The term the Association means Forging M~anufacturers
Association, a New Y'ork membership corporation.
SEC. 8. The term "'Executive Commnittee" means the Executive
Committee (as from timue to time constituted) of the Association.
SEc. 9. The terml the Secretary-Treasurer means the Secretary
and Treasurer of the Association a't the time in office.
SEc. 10. The term unfairr practice"' means and includes any act
described as an unfair practice in Schedule G annexed hereto.
SEC. 11. WhereVer used in the Code with reference to the Industryr
or any member of the Industryv or any member of the Code, unless
the context shall otherwise clearly indicate--
(a) The term "products" includes hammered and/or pressed forg-
ings and the further processing thereof, other than forgings made
exclusively on drop forging or equivalent equipment, except as pro-
duced and/or sold by an owning or affilialtinga department or comp-
panyy as a part of the products of another industry.
(b) The term plant means only a plant for the production of
one or more products in the Industry.
(c) The term "prices" includes only prices for products produced
in the Industry.
S(d) The term "wages" includes only wages for labor performed in
(e) The term "labor means only labor performed in the Industry.
(f) The term "hours of labor" or "hours of work" includes only
hours of labor or hours of work in the Industry; and
(g) :The term employee means only an employee in the Industry.
S~.12. Theft term National I~ndustrial Recovery Act means the
National Industrial Recovery Act as approved by the President June
SCEc. 13. The term "effective date of the Code means ten days
after the date on which the Code shall have been approved by the
President pursuant to the National Industrial Recovery Act.
SEc. 14. The term the Administrator means the Administrator
appointed by the President under the National Industrial Recovery
Act and at the time in office.
SEC 15. The term "the Administration" means the agency estab-
lished pursuant to t~he provisions of Section 2 of the National Indus-
trial Recovery Act.
ARTICLE II--PURPOSE OF THE CODE
SECTION 1. The Code is adopted pursuant to Title I of the
National Industrial Recovery Act.
SEC. 2. The purpose of the Code is to effectuate the policy of Title I
of the National Industrial Recovery Act in so far as it is applicable
to the Industryv.
'ARTICLE 'III--AEMBERSHIP IN THE CODE
SECTION 1. It is of the essence of the code that all members of the
industry which shall comply with the provisions of the code shall be
entitled to participate in its benefits upon the terms and conditions
set forth in the code.
SEc. 2. Any member of the Industry is eligible for membership in
SEC. 3. A~ny member of the Industry desiring to become a member of
the Code may do so by signing and delivering to the Secretary a letter
substantially m the form set forth in Schedule A annexed hereto.
SEC. 4. The rules and regulations in respect of meetings of members
of the Code are set forth in Schedule B annexed hereto.
ARTICLE IV-ouns or LABOR, RATES OF PAY, AND OTHER CONDI-
Trows or EMPLOYMENT
SEC. i. PUTSURDL tO subsection (a) of Section 7 of the National
Industrial RecoveryT Act and so long as the Code shall be in effect, the
Code shall be subject to the following conditions:
(1) That employees shall have t~he right to organize and bargain
collec~tivly through represent t~ives of their own choosing, 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-organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection;
(2) That no employee and no one seeking empltoyment shall be
required as a condition of employment to join any company union or
to reframn from jommig, orgamizmg, or assisting a labor orgamlzat~ion o~f
his own choosing; and
(3) That employers shall comply with the maximum hour of labor,
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President.
SEc. 2. Since the beginning of the present depression and the con-
sequent reduction in t~he total number of hours of work available in
the Industry, its members have made every effort to distribute, and
with a remarkable degree of success haecr distributed, th hours of
workr available in their plants so as to gie employmnent to th maxi-
mum number of employees. It is thae intention of the Industry to
continue that policy insofar as practicable, to the end that the policy
of Title I of the National Industrial Recovery Act may be effectua ted
and that wRork in the Industry shall insofar as practicable be distrib-
uted so as to provide employment for the employees normaly
attached to the Industry.
Certain processes in the Industry are of a continuous character and
they cannot be changed in this respect, without serious adverse effect
upon production and employment.
As demand for t~he products of the Industryr and, therefore, for labor
shall increase, hours of labor for employees in the Industry must
necessarily increase; but, except in the case of executives, those
employed in supervisory capacities and in technical wPork and their
respective staffs, and those employed in em~ergenrcy maintenance and
repair work, insofar as practicable anad so long as employees qualified
for the work required shall~ be available in the respective localities
where such work shall be required, and having due regard for the vary-
ing demands of the consuming and processing industries for the
respective products, none of the members of the Code shall cause or
permit any employee to wpork at an average of more than 40 hours
per week in any six months' period or to work; more than 48 hours or
more than six days in~ any one week exrcept in th ca.se of executiveirs,
those employed in supernvsor~y capacities and in technical work and
their respective staffs, and those employed on emergency maintenance
and repair work. Two months after the effective date of this Code,
asn soon as t~he me~mbers of the Code shall be ope~rat~ing a.t, 60 peFrcent
of capacity, they shall adjust the operations of their plants so that,
except as to executives, those employed in supervisory capacities and
in technical work and their respective sta~ffs, and those employed on
emergency maintenance and repair work, they will establish t~he .,
8-hour day for all their employees. No member of the Code is to use
any subterfuge to frustrate the spirit and intent of this Code wh`fich is,
among other things, t~o increase employment by a universal covenant.,
to remove obstructions to commerce, and to shorten hours, a~nd to
raise wages for the shorter week to a living basis.
SEC. 3. NODO Of the members of the Code shal employ in or about
its plants in t~he Industry any person under 16 years of age.
SEC. 4. For the purposes of this Article IV the wage districts
described in Schedule C annexed hereto have~ been established.
SEC. 5. Until changed by amendment of the Code as hereinafter in
Article XII provided, the minimum rates of pay per hour which shall
be paid by members of the Code for common labor (not including that
of apprentices and learners) in the Industry in the respective wuage-
districts described in such Schedule C shall be the rates set forth in
Schedule D annexed hereto. None of the members of the Code shall
pay common laborers (not including apprentices and learners) in its-
employ in the Industry in any such district any rate of pay less than
the ra te specified for such district in such Schedule D, and any viola-
tion of this provision of the Code shall be deemed an unfair practice.
Suxch rates of pay shall not, however, be understood to be the mlaxi-
mum rates of pay for their respective districts, but, until changed as
aforesaid, none of the members of the Code shall be required to pay
its common laborers in the Industry in any of such districts a rate of
pay higher than the rate specified for such dListrict in such Schedule D,
except as such member shall have agreed to pay such higher rate mn
any agreement heretofore or hereafter made by such member with its.
employees. Until this provision shall have been changed by amend-
ment as aforesaid, each member of the Code will pay to each of its
employees in the Industry who on t~he date on which it became such
member was receiving a rate of pay per hour in excess of the rate of
pay per hour then being paid by such member for common labor a,
rate of pay per hour which shall be at least 15%0 greater than that.
which such employee was then receiving; provided, however, that the
foregfoing provision shall not be so construed as to require any member
of the code to make any increase in the rate of pay per hour to be paid
by such member to any of its employees mn any wage district that will
result in a rate of pay per hour which shall be higher than the rate of
pay per hour paid to employees doing substantially the same class or
kind of labor in the same wage district by any other member of the
code which shall have increased its rates of pay per hour in accordance
with such provision. It is agreed that this paragraph establishes a
guaranteed minimum rate of payv regardless of whether the employee
is compensated on t~he basis of a time rate or on a piecework per-
ARTICLE V--NEW C~APACITY'
SECTION 1. Until such time as the demand' for its products cannot
adequately be met by the fullest possible use of existing capacities for
producing forgings, such capacities shall not be increased.
ARTICLE VI.---DMINISTRATION OF THE CODE
SECTION 1. The administration of the Code shall be under the direc-
tion of the Executive Committee. The Executive Committee shall
have all the powers and duties conferred upon it by the Code and gen-
erally all such other powers and duties as shall be necessary or proper
to enabhle it fully to admlinister the Code and to effectuate its purpose.
SEC. 2~. The Secretary-Treasurer shall act as Secretary under the
Code. Under the direction of the Exuecutive Commlittee he shall keep
all books (except books of account) and records under the Code and,
except as such committee shall otherwise provide, shall collect, file,
and collate all statistics and other information required by the Exec-
utive Committee for the proper administration of the Code.
SEc. 3. The Se~cret~ary-Trealsurer shall act as Treasurer under the
Code and, under the direction of the Exuecut~ive Commlittee, he. shall
have custody of and have charge of the disposition of al funds col-
lected under the Code; and he shall keep proper books of account
showing the collection and disposition thereof.
SEc. 4. The E~xecutive Committ~ee shall have powe fromt timne to
time (a) to appoint and remove, and to fix the compensation of all
such other officers and employes and a~ll such accountants, attorneys
and experts, as said Ex-ecutive Committee shall deemz necessary or
proper for the pulrpose of adjministepring thre Code and (b) to fix the
compensation of the Secretary-Treasurer for his services in acting
under the Code.
SEc. 5. The expenses of administering the Code shall be borne by
the members thereof. The Execut~ive Comlmittee may 1from tie to
time make such assessments on account of such expenses against the
members of the Code as it shall deem proper and such assessments
shall be payable as such Committee shall specify. The part of such
expenses which shall be assessed against each mlember of the Code
shall bear the same relation to the total thereof as to the number of
votes which, pursuant to the provisions of the Code, such member
might cast at a meeting of the members thereof held at the tim of
any such assessment shall bear to the total number of votes that might
be cast threat by all t~he then members of the Code. Failure, of anry
member of the Code to pay t~he amount of any assessment against,
such member for a period of thirty~ days after t~he date on which it
became payable shall constitute a violation of the Code.
SEc. 6. The Executive Committee may from tie to tim appoint
such Committees as it shall deem necessary or proper in order to
effectuate the purpose of the Code., and it may delegate to any such
committee generally or in palrt~icular instances such of the powers and
duties of the Executive Committ~ee under the Code as such Com-
mittee shall deem necessary or proper in order to effectuate such2 pur-
pose. Any member of any such committee may be a member of the
Executive Committee or an officer or a director or a member of thre
Code or a person not having any official connection with any member
of the Code or with the Association, as t~he Executive Comnulttee shall
SEC. 7. The members of the Code recognize that questions of public
interest are or mary be involved mn its administration. Accordmngly,
representatives of the Admainistration consisting odf t~he Administrator
and one or two other persons appointed by him. (who shall be persons
not having or representing interests antagonistic to the interests of
members of the Industry) shall be given full opportunity at such
times as shall be reasonably convenient to discuss with the Executive
Committee or any committees thereof any matters relating to the
administration of the Code and to attend meetings of the Executive
Committee at which action on any such matters shall be undertaken
and to miake recommendations as t~o methods or measures of adminis-
tering the Code. Due notice of all such meetings of the Commit~tee
shall be given to such representatives of the Administration. The
records of the Executive Committee relating in any way to the
administration of the Code shall be open to such representatives at all
reasonable times. They shall be afforded by the Executive Commlittee
complete access at all times to all records, statistical material or other
information furnished or readily available to the Executive Commit-
tee in connection it~h or for the purposes of the administration of the
Code. The Executive Committee, acting directly or through one or
more committees appointed by it, shall give due consideration to
all requests, suggestions or recommendations made by such repre-
sentatives of the Administration and render every possible assistance
to such representatives in obtaining full information concerning the
operation and administration of the Code, to the end that the Presi-
dent may be fully advised regarding such operation and administrat-
tion through reports that may be made to him from time to time by
such representatives, and to the end that the President may be
assured thbat the Code and the administration thereof do not promote
or permit monopolies or monopolistic practices, or eliminate or oppress
small enterprises, or operate to discriminate against them and do pro-
vide adequate protection of consumers, competitors, employees, and
others concerned and that they are in furtherance of the public inter-
est and operate to effectuate the purposes of Title I of the National
Industrial Recovery Act.
ARTICLE VTII--PRICES AND TERMS OF PAYMENT
None of the members of the Code shall make any sale of any product
at a price or on terms and conditions more favorable to the purchaser
thereof than t~he price, terms or conditions established by such mem-
ber in accordance writ~h the provisions of Schedule E annexed hereto
and in effect at. the time of such sale; nor, except as otherwise provided
in such Schedule E, shall any member of the Code make any contract
of sale of any product at a. price or on terms and conditions more
favorable t~o the purchaser thereof than the price, terms, and condi-
tions established as aforesaid and in effect at the time of the making
of such contract of sale.
ARTICLE VIII--UNFAIR PRACTICES
For a~ll purposes of the Code the acts described in Schedule G
annexed hereto shall constitute unfair prac tices. Such unfair practices
and all other practices which shall be declared to be unfair prac-
tices by the Executive Committee a.s provided in paragraph P of
such Schedule G or by any amendment to the Code adopted as here-
inafter in Art~icle XII provided and at t~he time in effect shall be
deemed t~o be unfair methods of competition in commerce within the
meaning of the Federal Tra.de Commission Act a.s amended, and the
using or employing of any of them shall be deemed to be a violation of
the Code, and any member of the Industry which shall directly, or
indirectly through any officer, employee, agent or representative,
knowringly use or employ any of such unfair practices shall be guilty
of a violation of the Code.
ARTICLE IX-REPORTS AND STATISTICS
SECTION 1. The Executive Committee shall have power from time
to time to require each member of the Code to furnish to the Secre-
tary for the use of the Executive Committee such information con-
cerning t~he production, shipments, sales, and unfilled orders of such
member and t~he hours of labor, rates of pay, and other conditions of
employment at the plant or plants of such member and such other
information as the Executive Committee shall deem necessary or
proper in order to effectuate the purpose of the Code and t.he policy
of Title I of the National Industrial Recoverly Act. The Executive
Committee may require that any such information be furnished
periodically at such times as it shall specify and may require: that any
or all information furnished be sworn t~o or otherwise certified or
authenticated as it shall prescribe. Failure of any member of the
Code promptly to furnish to the Secretaryv information required by
the Executive Comlmittee and substantially inr the form prescribed
by it shall constitute a violation of the Code. The cExecutive
Committee shall not require any information regarding trade secrets
or the means of the customers of any member of the Code.
SEC. 2. Any or all information furnished to the Secretary by any
member of the Code shiall be subject to chieckring for the purpose of
verification by an examiination of the books and accounts and records
of such member by7 any accountant or accountants or other person
or persons designated by t~he Executive Commiutt~ee anid shall be so
checked for such purpose, if the Executive Committee shall require
it. The cost of each such examnination shall be. trea ted as an expense
of administering the Code; provided, however, t~hat., if upon such
examination any such information shall be shown to have been
incorrect in any material respect, such cost shall be paid by the mem-
ber of the Code which furnished such information.
SEC. 3. The Executive Commritt~ee shall require the members of
the Code from time to time to furnish such inrformation as shall be
necessary for t~he proper administration of the Code.
SEC. 4. To the extent that the Execut~ive Committee mnay deem
that a~ny information furnished to the Secretary in accordance wit~h
the provisions of the Code is of a confidential character in the interest
of t~he member of t~he Code which shall have furnished it and thatt the
publication thereof is not essential in order to effectuate the policy of
Title I of the National Industrial Recovery Act., such information
shall be treated by the Executive Committee anrd by the other memu-
bers of the Code, if any knowledgae of it shall have come to them, as
strictly confidential; and no publication thereof to anyone or inI any
manner shall be made other than in combine tion wit~h similar informa-
tion furnished by other members of the Code, in which case the pub-
lication shall be made only in such manner as will avoid the dis-
closing separately of such confidential information.
SEC. 5. Summaries or compilations in~ reasonable detail of all
information which shall be furnished to t'he Secrets.ry pursuant to
the provisions of this Article I~X shall be made perriodically and sent
to th~e Administ~rator.
ARTICLE X--PENALTIES AND DAMAGES
SECTION 1. A~ny violation of any provision of thie Code byt any
member of the Industry shall constitute a v-iolation of the Code by
SEC. 2. Recognizing that the violation by- any member of the Code
of any provision of Article VII or of Schedule E of the Code will dis-
rupt the normal course of fair competition in the IndustryI and cause
serious damage to other members of the Code and that it will be
impossible fairly to assess the amount of such damage to any member
of the Code, it is hereby agreed by and among all members of the
Code that each member of the Code which shall violate any such
n provision shall t ,,,;~pays to the Secretaryy-Treasurer as an individual and
notas reaure ofthe Association, in trust, as and. for liquidated
damages the sum or 25~0o of the price a~s filed by such member for
any products sold by such member in violation of any such provision.
SEc. 3. Except in cases for which liquidated damages are fixed in
the Code and in cases which shall give rise to actions mn tort in favor
of one or more members of the Code for damages suffered by it or
them, the Executive Committee shall have power fromt time to time
to establish the amount of liquidated damages payable by any member
of the Code upon the commission by such member of any act con-
stituting an unfair practice under th~e Code and a list of the amounts
so fixed shall from time to time be filed with the Secretary. Upon
the commission by any member of the Code of any act constituting
an unfair practice under the Code and for which liquidated damages
are not fixed in the Code or which does not give rise to an action in
tort in favor of one or more members of the Code for damages suffered
by it or them, such member shall become liable to pa.y to the Secre-
tary-Treasurer as an individual and not as treasurer of the Association,
in trust, liquidated damages in th~e amount at the time established by
the Executive Committee for such unfair practice and specified in the
list then on file with the Secretary, as aforesaid.
SEC. 4. All amounts so paid to or collected by the Treasurer under
this Article X or under Section 4 of Schedule E of t~he Code shall be
held and disposed of by h~im as part of t~he funds collected under the
Code and each member of the Code not guilty of the unfair practice
in respect of which a~ny such amount shall have been paid or collected
shall be credited withl its pro rata share of such amount on account
of any and all assessments (other than damages for violation of any
prov-ision of the Code) due or to become due from such member under
the~ Code, or, in the case of any excess, as shall be determined by the
Executive Comnmitt~ee, such pro rata share to be computed on the
samle basis as the last previous assessment made against such member
on account of t~he expenses of administering the Code as hereinbefore
in Section 5 of Article V'I provided. All rights of any person who
shall at any time be the Treasurer in respect of any amounts which
shall be payable to himn because of the commissions by any member of
the Code of any act constituting an unfair practice under the Code,
whether payable under the provisions of this Article Xi or under any
other provision of the Codle, shall pass to and become vested in his
successor in office upon the appointment of such successor.
SEC. 5. Each member of the Code by becomingnn such member
agrees w\ith every other member thereof that the Code constitutes a
valid and binding contract by and among all members of the Code,
subject., however, to t~he provisions of Section 6 of Article XI, and
that, in addition to all penalties and liabilities imposed by statute,
any violation of any provision of t~he Code by a~ny member thereof
shall constitute n breach of such contract andf shanll subject the member
guilty of such violation to liability for liquidated damages pursuant
to the: provisions of the Code. Each member of the Code by becom~-
ing such member thereby assigns, transfers, and delivers to the Secre-
tary-T'reasurer as an individual and not as treasurer of the Associa-
tion, in trust, all rights a~nd causes of action whatsoever which shall
thereafter accrue to such member under the Code for such liquidated
damages by reason of a~ny violation of the Code by any other member
thereof, and thereby designates and appoints the Secretaryv-Treasurer
as such individual the true a~nd lawful attorney-in-fact of such member
to demand, sue for, collect, and receipt for a ny nd all amounts which
shall be owing to such member in respect of any such right or cause
of action, and to compromise, settle, satisfy, and discharge anyJ such
right or cause of action, all in the name of such member or mn the
name of the Se~cretary-Treasurer individually, as hne shall elect.
S~c. 6. Anything in t~he Code to t~he contralry notw~ithst~anding: the
Executive Commlittee by the affrmative v~ote of tw.o thirds of the
whole Commit~tee may wraive any liability_ for liquidated damages
imposed by or pursuant to any provision of thie Code for any 7violation
of any provision t.hereof, if in its discretion it shall decide that such
violation has been innocently made and tha~t the collection of such
damages will not to any material extfent tend to effectuate thne policy
of Title I of t.he National Industrial Recover~y Act.
ARTICLE 11--GENERAL PROVISIONS
SECTION 1. Any notice, demand, or request required or permitted
to be given to or made ulpon any member of the Code shall be suf-
ficiently given if maniled postage pr~epaid addressed to such. member
a~t the alddress of such mnember on file writhl thle Siecretary. A waiver
in writing signed by any membert~ of the Code of any such notice,
demannd, or request and delivered to the Secr~etary\ shall be deemed
to be the equivalent of a notice, demannd, or request ;2uly given or made
whether or not such waiver -was signed and delivered before: the timre
when such notice, demand, or request was required or permlittedi to
be given or made.
SEC. 2. NJothing contained in the Code shall be deemed to const.it.ut~e
the members of the Code partners for any purpose. None of the
members of t~he Code shall be lishle, in any m~ann~er to anyone for any
act of any other member of the Code or for any act of the Executive
Commnitthee the Secretary-Treasu rer, or any committee, officer, or
employee appointed under thie Code. Nonle of the members of the
Executive Commiuttee or of any committee appointed under the Code
nor the Secretary !-Treasre er nlor any officer or employee appoi nted
under the Code shall be liable to anyone for any action or omnissioni to
act under the Code, except for his wilfl mnisleasance or nonfeasance.
Nothing contained in the Code shall be deemed to confer upon any-
one other than a member of the Code anly rights, claim, or dlemand
whatsoever not expressly provided by statute against any mlembler
of the Code or against anyv memlber of the Executiv-e Committee or of
any commrit~t.ee appointed under the Code or agAinlst the Secretary-
Treasurer or any officer or employee appointed under the Code.
SEC. 3. To the extent required or made possible by or under the
provisions of Title I: of t~he National Industrial Recovery Act the
prov-isions of the Code. shall apply to and be binding upon every mem-
ber of the Industry, whether or not such member shall be a member
of the Code. No member of the Industry which shall not also be a,
member of the Code shall. be entitled to vote at anyr meeting of mem-
bers of the Code or to any other right, power, or privilege provided in
the Code for the members thereof.
SEc. 4. The Executive Comimittee shall have power from time to
time to interpret and construe th1e provisions of the Code, including,
but without any limiita tion uipon the foregoing, the, power to determiine
what products are products within the meaning of that term as it is
used in the Code. Any interpretation or construction placed upon
the Code by the Executive Committee shall be final and conclusive
upon all members of the Code.
SEc. 5. Nothing contained in this Code of Fa~ir Competit~ion shall
be construed as prohibiting any member of the industry from exercis-
ing all its and/or their law~ful patent rights or as requiring any member
of the, industry to do any act in convict wTith t~he terms of a patent
licensing agreement legally binding upon such member.
SEc. 6. The members of the Code recognize that, pursuant to sub-
section (b) of Section 10 of the Nat~ional Industrial Recoveryv Act, the
President ma.y from time to time cancel or modify any order, approval,
license, rule, or regulation issued under Title I of said Act.
ARTICLE XSII--AMIENDMENTS, TERMINATION
SECTION 1. The Code may be amended a~t any time in the manner in
this Section 1 provided. The changing of any schedule hereto or the
addition hereto of any new~ schedule shall constitute an amendment
of t~he Code. All amendments shall be proposed by the Executive
Committee by vote of the majority of the members thereof a.t the
time in office. Each amendment so proposed shall be submitted to a
meeting of the members of the Code which shall be called for such
purpose upon notice given in accordance writh the provisions of
Section 1 of Schedule B and Sect~ion 1 of Article XI of the Code. If at
such meeting members of the Code having the right to cast a~t least,
75%0 of all the votes that. might be cast a~t such meeting, if all the
members of t~he Code were present threat, shall vote in favor of the
adoption of such amendment, such amendment shall be submitted by
the Executive Commnitt~ee to the President for approval, if approval
thereof by him shall then be required by law. Every such amend-
ment shall take effect as n part of the Code upon t~he adoption thereof
by the members of the Code as above provided and the approval
thereof by the President, if approval thereof by him shall be required
SEC. 2. The Code shall continue in effect for a period of ninety (90)
days after the effective date thereof, in order to afford to the President
an opportunity to determine upon -the reconunendations of the
representatives of the Administration, for which provision has
heretofore been made in Article VlI, whether its provisions will
effectuate the purposes of Title I of the National Industrial Recovery
Act, as further defined in said Article VI~, subject, however, to amend-
ment at any time as hereinbefore provided, and also subject to the
reserved power of the President, to cancel or modify his approval
thereof. The Code shall continue in effect a.ft~er the expiration of
said period of ninety (90) days in the absence of the exercise of such
reserved power on the part of the President, or in the absence of the
exercise byV the members of the Code of the power which they hereby
reserve to terminate the Code at any time after the expiration of
said period of ninety (90) days by the same action by them as is
above provided for t~he amendment thereof. WC1hen so ternuinated
all obligations and liabilities under the Code shall cease, except
those for unpaid assessments theretofore made in accordance with
t~he provisions of the Code and those for liquidated damages thereto-
fore accrued under any provision of the Code.
FORMr OF LETTER GIVING AssumT To CODE:
To the SECRETARY OF THE FORGING RZ.ANUFACTURERS AssocurrIow,
7' East ~44h Street, N~ewr York, N.Y.
DEAR SIR: The undersigned, desiring to participate under the Code of Fair
Competition of t.he Heavy Forging Industry, hereby assents to all of the pro-
visions of said Code, and to such changes in the same as may be made by the
Executive Committee of the Association in order to meet the requirements of the
National Recov~ery Administration. Effective on thie date on which thle Code is
approved by the President of the United States of Amlerica, as thereinl provridetd,
or a~s of the date on which this letter is delivered if delivery is made after such
date of approval by the President, the undersigined, by the signing and delivery
of this letter, becomes a participant under said Code, as provided in Article III
of the Code, and hereby agrees w~ith every person, firm, and corporation who shall
then be or thereafter become a participant under said Code, that this Code shall
constitute a valid and binding contract between, the undersigned and all such. other
(Name of Company)
(Signature of A~uthorisecd Officer)
(Title of Authorized Officer)
THE RULES AND REGULATIONS IN RESPECT OF R'IEETINGS OF hlEMBERS OF THE
SECTION 1. A meeting of members of the Code may be called and held at any
time by order of the Executive Committee, or by members of the Code having
the right to cast at least 50%b of all the votes that might be cast at such meeting,
if all the members of the Code were present threat, on not less than three days'
notice to each of such members stating the time and place of such meeting and
the purposes thereof.
SEC. 2. At each meeting of the members of the Code each member thereof
shall have as many votes as shall equal the quotient obtained by dividing by
50,000 t~he aggregate amount in dollars of the invoiced value of the products
delivered by such member for consumption within the United States during the
preceding calendar y-ear. Fractions in such quotient shall be disregarded;
provided, however, that each member of the Code shall have at least one vote.
All questions as to the number of votes which each member of the Code shall be
entitled to cast at any meeting of the members thereof shall be determined by
the Executivre Committee. Any person or firm w~ho shall be a member of the
Code may, and any association or corporation which shall be a member of the
Code shall, vote at meetings of the members of the Code by proxy in writing
duly executed by such member and filed w~ith the Secretary. Any such proxy
may be for a specified meeting or be a general proxy for any or all meetings that
may be held until such proxy shall have been revoked by an instrument in
writing duly executed by the member of the Code which gave such proxy and
filed w~ith the Secretary.
SEC. 3. At each meeting of the members of the Code, members thereof having
the right to cast at least 75%b of all the votes that might be cast at such meeting,
if all the members of the Code were present threat, shall constitute a quorum
for the transaction of business at such meeting.
DEscRIPTION O~r WAGE: ISITRIICTS
1. Enasern District.-Conmprises that part of the United States which is north
of the State of Virginia. and east of a line drawn north and south. through the most
easterly point of Altoons, ]Pennsylvrania; that part of the State of Miaryland
which is west of such line; and the Counties of hlonongalia, Mlarion, and H~arrison
in the State of West Virginia.
2. Johnstlown District.--Comprises Camnbria County and the City of Altoona in.
the State of Pennsylvania.
3. Pilttburgh District.--Comprises the Counties of! Wiestmoreland, Fayette,
Greene, Washington, Al~legheny', Beaver, Butler, Armlstrong, and Jefferson and
that part of the County of Cle~arfield which is west of a line drawn north. and
south t~hroughl the most easterly point of Altoona, allin the State of :Pennlsylvania.
4. Y'oungstow~n I'alley District.--Comprises the Counties of LawFrence, MLlercerr,
and Venango in the State of P~ennsylvania and the Counties of Trumnbull,
Mahoning, and Columbiana in the St~ate of Ohio.
5. North Ohio Hiver District.--Comprises the cities along thre Ohiio River north
of the City of Parkersburg, W~est Virginia, anrd the Countie~s of Belmont and
Jefferson in the St~ate of Ohio anld the! Counties of Marshall, Ohio, Brook, and
Hancock in the State of West Virginia.
6. Canton, Allassillon, and Mlansfield D~istrict.--Comprises the Counties of
Stark, Tuscarawas, Summit, and Richland in the State of Ohio.
7. Clevelanzd District.--Comprises the Counties of Ashtabula, Lake, Cuy~ahoga,
and L~orain. in thec State of Ohio.
8. Buflo District.-Comprises that part of the State of New York: west of a
line drawn north and south through fthre most easterly point of ~Altoona, Pennsyl-
vania, and Erie County in that State.
.9. Dtetroit- Toledo Di~strict.-Comprises the Counties of Seneca anld Lucas in
the State of Ohio and the Counties of Monroe, Lenawee, Jackson, Wayne, Oak-
land, MNacomrb, a~nd Washtenawv in the State of Michigan.
10. South Ohio Rivler District.--Comprises the State of K~entucky, the City of
Parkersburg, We~st Virginia, the cities along the Ohio Rtiver south of said City,
the Counties of Cuernsey, nluskinrumn, Jatckson, and Butler in the State of Ohio
and the County of Wood in t~he Stat~e of West Virginia.
11. India na-il~linoi~s-t. Louis District.--Comprises all the State of Indiana,
except the County of Lake; all the State of Illinois, except the Counties of L~ake
and Du Page anmd the Chnicago Swvitching District; the City of St. L~ouis and the
County of St. Louis in, thne State of 1Missouri; and the County of Rock in the State
12. Chicago District.--Comprises the Chica~go Switching District; the Counties
of Lakie and Du P~age in the State of Illinois; the County of Lake in the State
of Indiana; and t~he Counties of K~enosha, Racine, anld 1\Iilwauk~ee in the State of
13. Southern D~istrict.~-Comprises all that part of thne United States south of
the Stat~es of Miaryland, West Virginia, K~entucky, and M~issoulri, and the States
of Texas and Oklahoma, but does not include the County of Jetferson in. the
State of Alabama.
14. B3irminghm D~istrict.--Comprises the County of Jefferson in the State of
15. Kiansas City D~istrict.-Comprises thie County of Jackson in the State of
16. Duluth D~istrict.--Comprises the County of St. Louis in the Stafte of
17. Colorado District.--Comzprise~s thec State of Colorado.
18. Utaoh District.-Conmprises the State of Utah.
19. Seattle district.--Co mlp rises t he Coulln t of K~ing in the State of WaVsh ing-
ton and the County of Mu~ltonomuah in the State of Oregon.
20. Sa n FranIcisco district.--Comnprises the Countiesi of Sa n M at eo, Alameda,
Sacramento, and Contra Costa in the State of California.
21. Los Angeles district.-C~ompries the County of Los Angeles in the State of
1\hmucnu RATES OF PAY Fon ComLMON LABOR
1. Eastern Dist~rict-------__ .--------..__ .................... 35
2. Johnstowfn D istriet ----... -..... .. ... ....... ...... ... .. 37
3. Pittsburgh Eiatrict ...... ...... _......_____ ___.........._ 40
4. Yioung~stown Valley District.-__.............. ...... ........ 40
5. North Chio River District_........ ..__ .. ....... .......... 40
6. Canton, Alassillon, and Alansfieki District.............. ... ...., 37
7. Cleveland Eiatrict... .... ..... ___ ____.. ._ 40
8. IBuffak> District ........... _-_ ____ ._ .. .. .. .. 38
9. Detricit-Toledo Dist~rict ---------_ ........- -.... .. ... .... 40
10. South O~hio River District..... ... __ ............... ... 37
11. Indiana-Illinois-St. Louis District__............... .............. 37
12. C hicago D istrict ...... ...... .... ..... ...... ...... ... 40
13. Southern D district .. ... ...... ...... ..... ..... ..... 25
14. Birmingham District.............. ....._____ ......... .. 27
15. Kansas City Eistrict____-_ __......___ ........ ._.. .._ 35
16. D ululth D district ...... ...... ...... ..... ...... ... ..... 37
17. Colorado D istrict.... ..... .... .._ .... .... .... .. ____ 40
18. U tah D district .... ...... ... ...... ..... ..... .... 39
19. Seattle D district ..... ...... .... ... ...... ..... ..... 38
20. San Francisco District.._____ ..............__ ... ... .. ..... 37
21. Los Angeles District... ... ....... _________ .........._ 35
CONCERNING PRICES AND TERM OF PAYMENT
SECTION 1. Wherever used in the Code the terms herinafter in this Section 1
defined shall, unless the context shall otherwise clearly indicate, have the respective
meanings hereinafter in this Section I set forth. The definition of any such term
in the singular shall apply to the use of such term in- thie plural and vice vera.
(a) The term "base price" of any product means the price for such product
f.o.b. manufacturer's plant with actual freight allowed to destination.
(b) The term "period of free credit" means fthe period of time between thte
date of shipment of a product to the purchaser of such product and the date from
and after which such purchaser shall be required to pay interest on the purchase
price of such product or any part thereof which shall not have been paid prior to
the expiration of such period.
(e) The term "'date of invoice means the date of the invoice of any product.
(d) The term "'discount for early payment means the amount of the deduction
allowed for the payment of invoice of products before the exrpirattion of the period
of free credit in respect thereof.
(e) The term "an affiliated group" means one or more corporations connected
through stock ownership with a common parent corporation, if (1) at least 75%
of the stock of each of such corporations (except such common paret~~ corpor~a-
tion) is owned directly by one or more of the other corporations, and (2) such
common parent corporation owns directly at least 75%b of the stock of at least
one of the other corporations. The term "an affiliated company of a member of
the Code means (1) a corporation which is one of a~n affiliated group that also
includes such member of the Code, or (2), in case the member of the Code is a
person, firm or association, a corporation at least 75%b of the stock of which is
owned by such member. For the purposes of this paragraph (e) the term "stock'"
does not include nonvoting stock which is limited and preferred as to dividends.
SEC. 2. Each member o~f the Code shall, within thirty days after the effective
date of the Code, file with the Secretary a list showing the base prices for such, of
its products as may have been classified by and in a manner approved by t~he
Executive Committee, and from and after the expiration of such thirty days
such member shall at all times maintain on file with t~he Secretary a list showing
the base prices for such classified products and shall not make an~y change in such
base prices except as provided in this Schedule E. Each such list shall state
the date upon which it shall become effective, which date shall be not less thant
ten days after the date of filing such list with the Secretary; provided, however,
that the first list of base prices filed by any member of the Code as atbo~ve pro-
vided shall take effect on the date of filing thereof. None of the base prices shown
in any list filed by any member of the Code as herein provided shall be changed
except by the filing by such member with t~he Secretary of a ne~w list of its base
prices, which shall become effective on the effective date the~rein specified which
shall not be less than ten days after the date on which such new price list shall
have been so filed. Any member of the Code may have any of its products
classified upon request in wrriting to the Exuecutive Committee.
SEc. 3. The Executive Committee shall have power on its own initiative, or
on the complaint of any member of the Code, to investigate any base price for
any product shown in any list filed with the Secretary by any- member of the
Code, and for the purpose of the investigation thereof to require such member
to furnish such information concerning the cost of manufacturing such product
as the Executive Committee shall deem necessary or proper for such purpose.
If the Executive Committee after such investigation shall determine that sulch
base price is an unfair base price for such product, having regard to th cost of
manufacturing such product, and that the maintenance of such unfair base price
may result in unfair competition in the Industry, the Executivle Commit~tee may
require the member of the Code that filed the list in which such unfair base price
is shown to file a new list showing a fair base price for such product, which fair
base price shall become effective immediately upon the filing of such list. If
such member of the Code shall not within ten days after notice to it of such
determination by the Executive Committee file a new list showing such fair
base price for such product, the Executive Committee shall have power to fix
a fair base price for such product, which fair base price, however, shall not be
more than the base price of any other member of the Code at. that time effective
for such product and in respect of which the Executive Committee shall not
theretofore hav\e begun an investigation or a complaint shall not have been made
by any member of the Code. When the decision of such Committ~ee fixing such
fair base price shall have been filed w~ith the Secretary and the Secretary shall
have given notice thereof t~o such member, such fair base price shall be the base
price of such member for such product, until it shall have been changed as in
the Code provided. A notice of all decisions of the Executive Commit~tee under
this Section 5, together with t~he reasons therefore, shall be filed with the President.
SEC. 4. Except as in this Schedule E of the Code otherwise provided, the
maximum rates of discount for early payment and the maximum periods of free
credit which may be allowed by any member of the Code shall be the rates and
periods specified in Schedule F of the Code, unless and until such rates or such
periods shall be changed by the Executive Committee by the affirmative vote of
twro thirds of the whole Committee and embodied in a new Schedule F filed with
the Secretary. Except as aforesaid, all invoices for products sold by any member
of the Code after the effective date of the Code shall bear interest from and after
the expiration of the period of free credit at a rate which shall be not less than the
then current rate established by the Executive Committee and filed with the
Secretary. Nothing in the Code contained shall prevent any member of the Code
from allowing credit to any purchaser or allowing any purchaser to delay payment
in respect of any invoice for a longer period than the maximum period of free
credit specified in such Schedule F, but, if any member of the Code shall allow
credit to any purchaser or allow any purchaser to delay payment in respect of any
invoice for a period longer than such maximum period of free credit, then such
member shall charge and collect interest on the amount in respect of which credit
shall be so allowed or the payment of which shall have been so delayed at a rate
not less than the current rate established and Bled as aforesaid.
SEc. 5. Except as in this Schedule E of the Code otherwise provided, any
extras added to, and any deductions made from, the base price for any product
sold by any member of the Code in determining its quoted or billed price for such
product shall be uniform for all members of the Code. The rates of such extras
and of such deductions shall be those approved from time to time by the Execu-
tive Committee as being in accordance with the trade practice customary in
the Industry at the effective date of the Code and as meeting the requirements
of the Code. Lists showing such rates shall be fied with the Secretary and shall
be open to inspection at all reasonable times by anyone. In case any member of
the Code shall sell any product to which any such rate of extra or deduction shall
apply, except as aforesaid such member shall add an extra at a rate which shall
not be less than the rate of extra applicable to such product theretofore approved
by the Executive Committee as aforesaid and at the time in effect and none of the
members of the Code shall make any deduction at a rate that shall be more favor-
able to the purchaser of such product than the rate of deduction applicable to
such product theretofore approved by the Executive Committee as aforesaid and
at the time in effect; provided, however, that nothing in the Code contained shall
be so construed as to prevent any member of the Code from selling or contracting
to sell any product. for use by the purchaser thereof in the manufacture of articles
for shipment in export trade within the meaning of the term "export trade" as
it is used in the Export Trade Act under an agreement by such member of the
Code with such purchaser that, when such articles shall have been shipped in
such export trade, such member of the Code shall make an allowance at a rate
approved by the Executive Committee and a statement of the approval of which
shall theretofore have been filed with the Secretary, which rate in the opinion of
such Committee shall be sufficient to enable such member of the Code or such
purchaser to meet foreign competition in the sale and delivery of suchproduct or
such articles, as the case may be.
SEc. 6. The practice of shipping products on consignment may result in unfair
competition and it is the intention of the Industry to eliminate such practice as
soon as possible after t.he effective date of Iche Code. Accordingly, except to the
extent necessary to carry out arrangements existing on the effective date of the
Code and which shall have been reported to the Executive Committee from and
after such date, none of the members of the Code shall deliver products on con-
signment except to an affiliated company of such member. All arrangements
for the delivery by any member of the Code of products on consignment. (other
than consignments t~o an affiliated company of such member) existing on thie
effective date of t~he Code shall be terminatedl on or before June 30, 1934, and all
stock held on consignment on that date shall either be sold to the! consignee or
possession thereof shall be taken by the consignor.
SEc. 7. All contracts for forgings are to be limited to a three months' pe~riod.
SEc. 8. A sale made by any member of the Code indirectly through any affiliated
company of such member shall be deemed to be a sale made by suchr member.
SEc. 9. Nothing in the Code contained shall be deemed to apply to or affect
the sale of any product for direct shipment in export trae by any member of the
Code within the meaning of the term "export tdrad" as it is used in the ]Export
Trade Act or unless and to the extenlt that the Executive Committee shall other-
wise determine, the sale of any product by anly such member for direct shipment
to the Philippines, Hawaii, or Puerto R'ico or ot her insular possessions of the-
United Stat.es of America.
SEC. 10. If and t.o the extent requested by the Administraor, all decisions of,
permissions and approvals given by, and rules and regulations made by the
Executive Committee pursuant to any' provision of this Schedule E shall be re-
ported to him.
R~AxIMUM RATE OF DISCOUNT FOR EARLY PAYMENT AND 11AXIMUM PERIODS
OF FREE CREDIT
MAXIMUM RATES OF DISCOUNT FOR EARLY PAYMENT
In t~he case of products shipped from plants located east of the Muississippi
River to Pacific Coast ports and which shall be invoiced from such plants,
%1 of 1 percent if the invoice of such products shall be paid within 25 days from
the date of such invoice; in all other cases,-4h of 1 percent if the invoice of such
products shall be paid within ten day~s from the date of such invoice; provided,
however, in the latter cases, that any member of the Code may allow such dis-
count of fMi of 1 percent for payment within ten days on the basis of settlements
three times in each month, as follows:
(1) On invoices for products dated from the first to the tenth, inclusive, in any
month, such discount may be allowed on payment. of such invoices on or before
the twentieth of such month;
(2) On in voices for prod ucts dated from the eleventh to the tw~ent~ieth, inclusive,
in any month, such discount may be allowed on payment of such invoices on or
before the thirtieth of such month; and
(3) On invoices for products dated from the tw~enty-first to the end of any
month, such discount may be allowed on payment of such invloices on or before
the tenth of the next following month.
Any discount allowed in accordance with the provisions of this Schedule F shall
apply only to the invoiced value of the products specified therein and not to any
part of the transportation charges on such products.
MJAXIMUUM PERIODS OF FREE CREDIT
In the case of products shipped from plants located east of the M~ississippi
River to Paci~c Coast ports and which shall be invoiced from such plants,
forty-five daSYs; in all other cases, t~hirty~ day~s.
LIsTr or UNXRm PRACTICEE
For all purposes of the Code the following described sets shall contlaitufte unfar
A. Making or promising to any purchaser or prospective purchase of any
product, or to any officer, employee, agent, or reresentative of anyr such pur-
chaser or prospective purchaser, any bribe, gratuity, gift, or othr payment or
remuneration, directly or indirectly.
B. Procuring, otherwise than w~ith the consent of any member of the Code, any
information concerning the business of sruch member which is properly regarded by
it as a trade secret or confidential wvithin its organization, other than informa-
tion relating to a violation of any proviion of the Code.
C. Imitating or simulating any design, style, mark, or branld used by any other
member of the Code.
D. Using or substituting anyr material superior in quality to that specified byT
the purchaser of any product or using or substituting any material or aryl mehod
of manufacture not in accord with any applicable law, rule, or regulation of any
E. Canceling in whole or in part, or permitting the cancellation in whole or
in part of, any contract of sale of any product, except for a fair consideration,
or paying or allowing to any purchaser in connection with the sale of any product
any rebate, commission, credit, discount, adjustment, or similar concession other
than as is permitted by the Code and specified in the contract of sale.
F. Disseminating, publishing, or circulating anyT false or msleading informaa-
tion relative to any product or price for any product of any member of the! Code,
or the credit standing or ability of any members thereof to perfor any work: or
manufacture or produce any product, or to the conditions of employmrrent among
the employees of any member thereof.
G. Inducing or attempting to induce by any means any party to a, contract with
a member of the Code to violate such contract.
H. Aiding or abetting any person, firm, association, or corporation in any
I. Making or giving to any purchaser of any product any guaranty or protee-
tion in any form against. decline in the maarket price of such product.
J. Stating in the invoice of any product as the date thereof a date later than
the date of the shipment of such product, or including in any invoice any product
shipped on a date earlier than the date of such invoice.
K. Making any sale or contract of sale of any product under ~any description
which does not fully describe such product in terms customarily used in the
L. Rendering to any purchaser of anyI product in or in, connection with the
sale of such product any service, unless fair compensation for such service shall be
paid by such purchaser.
MC. Selling any product or service below the cost, and for this purpose cost is
defined as cost of direct labor plus cost of material plus adequate amount of over-
head including the amount for th~e use of plant facilities employed as determined
by cost-accounting methods recognlized in, the industry~ and approved by the
N. The selling of any product on a lump sum basis or a guaranteed weight.
O. Payment by a manufacturer of any inspection fees or expenses incurred by
reason of an inspection required by the purchasers.
P. Any violation of any other provision of the Code, whether or not therein
expressed to be such, or using or employing any practice not hereinabove in this
Schedule O described which the Executivle Committee by the afEirmativ~e vote
of three-fourths of the whole Committee shall have declatred to be a practice
that would tend to defeat the policy of Title I of the National Industrial Recovery
Act and, therefore, an unfair practice, and of which determinaion by such Comm-
mitteee the Secretary shall have given notice to there members of the~ Code and to
UNIVERSITY OF FLORIDA
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