Code of fair competition for the American petroleum equipment industry and trade

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Material Information

Title:
Code of fair competition for the American petroleum equipment industry and trade as approved on November 2, 1933 by President Roosevelt
Portion of title:
American petroleum equipment industry and trade
Physical Description:
v, 11 p. : ; 23 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
U.S. G.P.O.
Place of Publication:
Washington
Publication Date:

Subjects

Subjects / Keywords:
Petroleum industry and trade -- Equipment and supplies -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

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:
Registry no. 1323-04.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004943097
oclc - 31954204
System ID:
AA00006860:00001

Full Text


Registry No. 1323--04
I


For sale by the Baperintendent of Documents. Washington, D.C. - Prie 5 cents


NATIONAL RECOVERY ADMINISTRATION




C ODE OF FAIR C O MPETIT ION

FOR THE


AMERICAN

PETROLEUM EQUIPMENT INDUSTRY

AND TRADE

AS APPROVED ON NOVEMBER 2, 1933
BT
PRESIDENT ROOSEVELT









U.L.

WE DD OUR PART




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





UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1933























This publication is for sale by the Superi~ntendent of Documents, Government
Printing Office, W~ashington, D.C. and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE D)EPARTMENTL OFr COMM]EROE
Atlanta, Ga.: 504 Post Offce Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building'.
Chicago, Ill.: Suite 1706, 201 North ~Wells Street.
ClevelanId, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 2213 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jackisonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Buildinlg.
New Orleans, La.: Rtoom 225-A, Customhouse.
New York, NS.Y.: 734 Customhouse.
Norfolk, Va.: 406 ]East Plume Street.
Philadelphia, Pa.: 933 Commercial Trust Building..
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 Newr Post Office Building.
St. L~ouis, M~o.: 506 Olive Street.
Ban Francisco, Calif.: 310 Customhouse.
SeaLttle, Wash.: 809 Federal Building.












EXECUTIVE ORD)EIR


CODE OF FAIR COMPETITION FOR THAE AMIERICAIN PETROL.EUM
EQUJIPMVENT INDUSTRY AND) TRADE:
Anl application having been duly made, pursuant to and in full
compliance with the provisions of title I of the N~ational Inadustrial
Recovery Act, approved June 16, 1933, for my approval of a Code of
Fair Competit~ion for the American Petroleum Eqluipment Indrst~ry
and Trade, anld hearings having been held thzereon and the Admilnia-
trator having rendered his rep~ort containing an analysis of the said
code of fair competition togaeth2er withr his recommendations anld find-
ings with2 respect thereto, and the Administrator having found that
the said code of fair competition complies in all respCc~ts with the
pertient pro~visionls of title I of said act and that the r~equirementsnt
of clauses (1) and (2) of subsection (a) of section 3 of the said act
have been met:
NOW\, TH-IEREF"ORE, I, Fran'klin D). Roosevelt, President of thie
United States, pursuant to the authority vested in me by TPitle I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report and recommnendations,
and findings of the Administrat.or and do order that the said code of
fair competition be and it is thereby alpproved.
F"RANKLIN D. ROOSEVELT.
THE PHITE IIOUSE,
N~ovember 9, 1933.
Approval recommended:
HU~aH S. JoENSON,
Aldmn i strator,
OCTOBER 28, 1933.
Th PRESIDENiT,
The Whiite HoiTuse.
SmR: This is a, report on thie Code of Fair Competitio~n for the
Am~erican Petroleum Equipmzent Induistry and Trade in the United
States, conducted in WaTshilngrton onl October 20, 1933, in neco;rdance
with the~ provisions of the Na~tional Indus~trial Recovery Aict.
PROVISIONS F`OR HOURS ANVD WAGES
The maximu of 40 hours a we~ek aver age in any 3 months' period
and 48 hours or 6 days in ainy one w-eek, is provided to all employees
in this Industry~ and Trade, with the followmng exceptions:
Employees in emergency maintenance or repair w~ork w-ill not be
limited to 48 hours or 6 dayvs a week. W1~a tchmlnen and gate mecn will
be permitted to work. 56 hYours a w~eek. Norne of the limitations in
hours apply to executives and their immeldiate assistants, employees
in supervisory capacities and in research atnd tech~nical work w-ho
(m)








receive $35.00 or more per week; nor to outside salesmen and service
men.
The minimum~ wage provided for any employee who works on an
hourly basis is 40 cents an hour, except in specified Southern States
where the minimum provided is 35 cents per hour. Time and a third
will be paid for work in excess of 40 hours a week or 8 hours a day.
The minimum wage to all other employees will be 815.00 per week;
except to office boys whzo will receive $12.00 a week, provided that
they do not number mrore thanl 5 percent of the total employees to
whch this paragraph applies.
The hourly wiage rates apply to employees working on either a
time or piecework basis.
CHILD LABOR

The~ age limitation is 16 years, except in hazardous occupations or
those detrimental to health. The Code Authority will submit to the
Administrator a list of such occupations within 30 days after the
effective date of this Code.

ECONOMIC EFFECT OF THE CODE
The Petroleum Equipment Industry has been effected greatly by
the curtasilmrent of petroleum production. Sales in the Industry
were approximaately $300,000,000 in 1929, but were decreased to
$70,000,000 in 1932. Employm~ent fe~ll from 22,000 in 1929 to ap-
proximzately 9,500 in 1932. In 1929 the Industry employed one man
per $13,250 of yearly sales, but at the beginninga of the year 1933 the
annual rate of sales per employee was $6,650.
The 40-hour week schedule fixed in this Code represents a substan-
tial reduction from an average of 50 hours per week previous to the
enactmnent of the National Recovery Act. The application of the
40-hour schedule together with some increase in business has resulted
since ~March 1, 1933, in an increase of about 4,000 employees, or an
increase of 42 percent in employment from t~he low point of the
depression.
Wage provisions in this Code result in an average mlinimum wa.ge
increase of about 20 percent. Most of the plants in thle Industry
granted a 15 percent wage increase to all classes of employees upon
the application of the 40-hour week. The total wage bill added to
the Industrly through increased wages and additional employees ex-
ceeds 25 percent, which. can only be offset by an increase in business.
In offering the! Code this Industry has demonstrated a ready com-
pliance w1ith2 the spirit of the Act.
FINDINGS
The Administrator finds that:
(a) The Code as recommended complies ina all respects with the
pertinent provisions of Title I of the Act, including, without limita-
tion, subsection (a) of Section 7 and subsection (b) of Section 10
thereof ; and that
(b) The applicant group imposes no inequitalble restrictions on
admission to membershp therein and is truly representative of the
AmJerican Petroleum EIquipmetnt Ind-ustry and Trade; and that







(c) The Code as recommended is not de~signed] to promoted mlonopo-
leorto elsciminate orans ohpprss small enterprises and will not operate
to iscimiat agins temu, andl will tend. to effectuate thle policy
of Title I of the N~ational Inldustrial Recov~eryT A-ct.
It is recommended, therefore, that ths Code be adopted.
Respectfullyg,
WUHua S. JoHNSON,
Administrator.







































































































































































































































































C











COODE OF FAIR COMPETITION O1F THE AM1ERICAN PETROL
L-EU[M EQUIPMENT INDUSTRY ANVD TRADE
ARTICLE) 1EIFINITIONS
SECTION 1. Whenever used in this Code, the terms her~einafter in
this Article I defined shall, unless the context shall otherwise clearly
indicate, have the respective meaningrs hereinafter in this Alrticle I
set forth. The definition of any such term in the singular shall apply
to thre use of such, ter inl the plural and vice versa.
SEC. 2. The term "the Industry" means and includes the businie~s
of marnufacturig m~achiery, equipment, or supplies used in the
Petrleum Industry as in this Article I defined, excepting, however,
any machinery, equipment, or supplies which are specifiedlly included
within any other basic Code of Failr Comnpetition which has been or
may be approved by the President.
SEc. 3. The term '"the Tr~ade" means anld includes the bu~siness
of selling machinery, equipment., supplies, or services to the Petro-
lemn Industry as in this Article I defined, excepting,a however, anly
machinery, equipment, supplies, or services, which are specifically
included with nyin other basic Code of Fair Comnpetitioll~n which has
beenl or may~ be approved by the Presidenzt..
SEC. 4. The termt "member of the Indiustry and Trade"' means
everyone, including, but without limitation, every person, partnership,
association, or corporation engaged, in whole or in part, in the In-
dustry and/or the Trade as in this Article I defined.
Snc. 5. The term "'the Petroleum Industry means and includes the
busijness of drilling, p~~lroducing, pip-line trancnsprting refning, or
storig petroleum, or of producing or pipe-line transporting natu~ranl
gas, in the United St.a tes of Amlerica.
Soc. 6. The term memberr of the Code" means and includes
every member of the Industr and Trade whichl has signed and de-
livered to the Code Authority a letter substantially in the form set
forth in Schedule A attached hereto.
SEC. 7. T~he term '"product" means and includesc anty machinery,
equipment, supplies, or services manufactured for or sold to the
Petroleum Industry as in this Article I defined, exceptingr, however,
a~ny machinery, equipmentn, supplies, or serv\ices, which are specifi-
cally included within anly other basic Code of F'air Competition which
has been or may be approved by the President.
SEC. 8. T~he term "employee" :means and includes anyone en1-
gaged inl the Industry or Trade in any capacity receiving: comlpensatlfon
for his services irespectiveB of thle nature or mleth~od of payment of
such compensation.
SEC. 9. 111 terB1 "enmployeer means and includes anyone by
whom any such employee is compensated or emplloyved.
SEc. 10. The term ""thle Association means and includes the
American Petroleum Equipme~nt Suppliers' A~ssciation.
SEC. 11. The term "price list"" meanls erd includes (a) a list of
minimum prices or prices wfith mlaximnum discounts therefrom at







which thne member of the Industry and Trade filing such list shall
sell ~his or its products direct to consumers or ultimate users, and, if
such products are sold by such members of the Industry and Trade
through jobbers or wholesalers, (b) a list of minimum prices or prices
with, max-imum discounts therefrom at which t.he member of the
Industry and Trade filing such list shall sell his or its products to
jobbers or wholesalers.
SEC. 12. The term "discount for early payment means the
amount of the deduction allow-ed for tfhe cash payment of an invoice
for products before the expiration of the period of free credit in
respect thereof.
S~EC. 13. The term "period of free credit means the period of
time between the date of a 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 prod-
uct or any part thereof whih shall not have been paid prior to the
exrpirationz of such period.
SEc. 14. The termr "the President" means thle President of the
United States.
SEc. 15. The term "the Act" means the National Industrial Re-
covery Act.
SEc. 16. The term, "the Administrator" means the Administrator
of the National Industrial Recoveryg Act.
SEC. 17. 1110 t881 "f1 COde" means and includes this Code as
originally approved by the Presidenlt of the United States an all
amenldmentfs thereof made in accordance with law.
Sj~c.18. The term "the effective date" means the 11th day after
the Code shall have been, approved by the President of thle IUnited
States, pursuant to the Naltional Industrial Recovery Act, upon
which date the Code shall become effective.

ARTICLE II-PURPOSE: O THE CODE
SECTION 1. The purpose of the Code is to effectuate: the policy of
Title I of the Act.
SEC. 2. The Code is adopted puruant to T'itle I of the Act.

ARTICLE I.I-MIEMBERESHIP IN THE CODE
SECTION 1. It is Of the essence of the Code that all members of the
Industry and Trade which shall comply with the provisions of the
Code shall be entitled to participate m its benefits under~ the terms
and conditions set forth, in the Code.
SEC. 2. Any member of the Industry and T~rade is eligible for
membership in the Code.
SEC. 3. Every member of the Association, and every member of
the Industry and T'rade (which is not a memmber of the Association
and which has the right to participate in the election of the Code
Authority and receives the benefits of its activitiess, shall pay to the
Code AuthorityS its pro rata share of the cost of administering the
CodSe. The :reasonable shaare of the expense of administration shall
be determined by the Code Authority, subject t~o review by the
AdSministrator, on the basis of volume of business and/or such other
factors as may be deemed equitable to be takren into consideration.







ARTICLE IV---GENERAL LABOR PROVISIONS
SECTION 1. On1 and after the effective date, no person under 16
years of age shall be employed in the Industry' or Trade, nor anyone
under 18 years of age at operate ions or occ upa tons haza rdous in n atunre
or detrimental to the health of such employee. T'he Code Au thority
shall submit to the Administ~rator within thity- days after the effect-
iv~e date a list of such occuptions.
SEc. 2. Emnploy~ees shall; have the right to organize and harga~in
collectively through representatives of their ownu choosing, andr shall
be fre from the Interference, restracint, or coercion of emplloycr~s of
labor, or their agents, in the designationl of suchn Icrepresenttives or in
self-organization or in other concerted activities for the purp~ose of
collective bargaining or other mutual aid or protection.
SEc. 3. No employee and no one seekingr employment shall be re-
quired as a condition of employment to join any company union or to
reframn from jomling, orgamizmg, or assisting a labor orgalnization of
Shis owF~n choosing.
SEc. 4. Employers sharll comply with. the maximumn hours of labor,
mirnium rlt~es of pay, and other conditions of employment, approved
or prescribed by~ th1e Presid~ent of thie United Startes.
SEc. 5. Writhnll each State no provision of the Code shall supersede
any law~s of such Statfe imposing more stringent requirements on em-
ployers regulantingo the age of employees, wagerrS, hours of labor, or
heltpih, fire or general working conditions, than under the Code.
SEc. 6. Ea~ch member of Lthe Industry) and T'rade shall post in con-
spicuous places full copies of the Code.
SEc. 7. All wagBes shall be paid in lawful currency or by negotiable
check~ paid on demand.
SEc. 8. On and after the effective date, the mninimnum wvage that
shall be paid by anty member of the Industry and Trade to any
employee employed on an, hourly basis shall be forty cents per hour;
except that in Texras, Okrlahomna, Louisiana, Alabama, Georgia,
Florida, North Carolinn, Sout~h Carolina, Ark~ansas. Tennessee,
Mfissouri, an~d Mlississippi the minimum wage that shall be paid by
any member of the Industry and Trade to any such employee shall
be not less than thirty-fiv~e cents per hour. Any employee referred
to in this Section. 8 of Article IV wiho wvorks in. excess of 8 hours per
da~y or 40 hours per week, shall be paid not less than time an~d onze
third for the excess hours so w\orkecd.
SEc. 9. On andl after the effective date, the minimum wvage which
shall be paid by any member of the Industry and Trade to all other
employees shall be at the rate of $15.00 per week, except ing office
boys, who shall be paid not less than $12.00 in any one weekr, pro-
vided, however, that the number of such boys shall not ececed 5%l~
of thze total number of employees engagred by any~ one emlploerr and
included within the scope: of this Section 9 of Article I.V, but in any
event anyT employer may employ at least one office bo~y.
Sections 8 and 9 of this Article IV establish a mininmum rate of
pa~y, regardless of whether an employee is compensated on a time rate,
pieceworkc, or other basis.
SEc. 10. Onl and aftr the effective date, .none of the members of the
Industry and Trade shall cause or permit any employee, except
execu t~ives, their immediate assistants, those emlployed in supervisory
capacities, and in research and technical workz, who are paid not less
18927*--l~-188-12-33--2








than $35.00 per week, and exrcept also outside salesmen and outside
service employees, to work at an average of more than 40 hours per
week in. anly three months' period or to work: m~ore than 48 hours or
more than 6 days in a~ny one weeks. The maximum hours fired in
this Section 10 of this Article IV shall not apply to employees engaged
mn emergency maintenance or emergency repair wnork involving
breakdowns or protection of life or property, but in no event shall
any employee engaged in such emergency work, wTork at an average
of more than 40 hours per week inl any three months' period. The
maximum. hours fixed in this Section 10 of this Article IV shall n~ot
apply to watchmen and gate tenders, provided, however, such em-
ployees shall not be permitted to work in excess of 56 hours in any
one week.
SIEC. 11. Not later than 60 days after the effective date each em-
ployer in the Industry and Trade shall report to the Administrator
through the Code Authority the action taken by such employer since
June 16, 1933, in. adjusting the hourly wage rates for all employees
receiving more than the minimum rates provided in Sections 8 and 9,
of this Article IV.

ARTICLE V--ADMINISTRATION OF THE CODE
SECTION 1. The Association is hereby designate Cde an agenc for
promoting the performance of the provisionso h oe ytemm
bers of the Industry and Trade. The Board of Directors of the
Association, together with two members of the Industry and Trde
which are not members of the Association (if any members of the
Industry and Trade which are not members of the Association so
desire anld so petition said Board of D~irectors), to be elected by such
nonmembers by fair methods of election to be approved by the
Admiistrator, in conjunction with such non-v7oting appointees of
the National Recovery Administration as the Administrator may
deem necessary, are hereby designated the Code Authority for admin-
istering and supervising the performance of thje provisions of the
Code. The aforesaid Board of Directors shall consist of elevPen
members of the Industry as defined in Section 2 of Article I and
eleven members of the Trade as defined in Section 3 of Article I.
SIEC. 2. The Code Authority may from time to time interpret and
construe thze provisions of the Code for members of thle Code.
SEC. 3. The Code Authority may from time to time appoint such
officers or committees as it shall deem necessary or proper in order
to effectuate the purpose of the Code, and it may delegate to any
such officer or committee generally or in particular instances such of
the powers and duties of thne Code Authority under the Code as such.
Code Authority shall deem necessary or proper in order to effectuate
such purpose; provided, however, that the Code Auth'orit~y shall not
be reheved of final responsibility with respect to any such delegated
powers or duties.
SEC. 4. A majority of the m~emrrbers of the Code .Authority shall
constitute a quorum for the transaction of business.
SEc. 5. Each industrial or trade association directly or indirectly
participating in the selection or activities of the Code Authority shall:
(1) Impose no inequitatble restrictions on memabership, and (2) submit
to the Administrator true copies of its articles of association, bylaws,








regulationsl and an amendments when made thereto, together w~ith
such other information as to miember~ship, organization, and activities
as the Administrator may deem necessary to effectuate the purposes
of the Act.
SEc. 6. In order that the Code Aut~horit~y shall at all times be, truly~
representative of the Industry and T'rade and in other respects comply
with t~he provisions of the Act, the Administra~tor mnay provide such
hearings as he may 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, may require an
appropriate maodiiation in "the method of selection of the Code
Authrity.
SEc. 7., The Administ~rator shall have the right to review, cancel,
or modify any decisions or anyT other action pursuant to the Code by
th Code Authority.
ARTICLE VT-OPEN PRICE REPORTING
SECTION 1. Each member of the Industry and Trade shall file with
th Code Authority, within tw-enty days after the eff'ectiv-e date, price
lists, individually prepared by such member, anld his or its terms and
conditions of sale whichh terms and conditions of sale shall specify
the discount for early payment and the period of free credit:), for
products regularlyri manufactured for, or sold or furnished to, the
Petroleum Idstry by such mlember, whiich price lists and terms
and conditions of sale so filed wvith the Code Aulthority shall be open
to inspection at all reasonable times by any member of the Industry
and Trade. Revised price lists or revised terms and conditions of
sale may be filed from time to tie thereafter with the Code Acuthor-
ity by any memlber of the Industry an~d Trade. If the prices noted
in the revised price. list of any such member, or if the revised terms
and conditions of sale are maore favorable? to thae purchanser of prod-
ucts than the terms and conditions of sale of such memberr, thfen on
~file writh the Code Auth~ority, th-e rev-ised price list or revised terms
and conditions of sale shall nlot become effectie until ten days after
the date of the filing thereof; otherwise the sam~e shall become effee-
tive on such date as the member of the Industry and Trade flying the
same shall design, te. Notice of the filing of any such revised price
list or revised sterns and conditions of sale shall be mailed by the
Code A~uthority immediately to all other members of the Industry
and Trade which, at the time of such filing, had on file with the Code
Authorityr prices lists for similar products. An of such other meml-
bers of the Indust.ry and Trade m~ay, if they desire~, flile rev-isions of
their price lists or t~erms and conditions of sale, which shall be~comle
effective on thre date whenl thLe revised price list or revisedl terms and
conditions of sale first filed shall become effective, if thie prices noted
in the revised price lists of such other members are nzot lowetr than
the prices noted in! the rev-ised price list first :filed or the terms and
conditions of sale of such other members are not more favorable to
the purchaser of products than the rev-ised terms and conditions of
sale first filed; otherwise the revised price lists or revised terms and
conditions of sale of suchr other members shall not become effective
until ten days after the date of the .filing thereof. Any member of
the Industry and Trade m~ay, upon request and at the expense of








~such member, obtain from the Code Authority copies of any such
list so filed.
SIEc. 2. Each member of the Industry and TCrade shall ~file with the
Code Authority within tw\enty days after the effective date, and
from time to time thereafter, but not oftener than once eeryrS thirty
days, a list of discontinued lines, or obsolete or surplus stocks, of
products which such member is willing to sell belowr the prices noted
in the price lists or on more favorable terms and conditions of sale
than the termrs and conditions of sale previously filed by such member
with the Code Authority in accordance with the provisions of Section
1 of Article VTI, and in effect at the time of the filing of such list, and
the prices at which, or the terms and conditions of sale in accordance
with which, such member is willing to sell the same or any part
thereof, which list shall contain such information as to the quantity,
size, w\eight, etc., of the products noted therein as the Code Authoritey
may deem necessary. Before any sales of any of such products shall
be made by any member of the Industry and Trade, the list, prices,
and terms and conditions of sale so filed must be approved by the
Code Authority. Notice of the filing of any such list which; shall
have been approved by the Code Authority shall be mailed by the
Code Authority to all members of the Indlustry and TPrade which. at
the date of such filing had on, file with the Code Authority price lists
for similar products. Any member of the Industry and Trade may,
upon request and at the expense of such member, obtain from the Code
Authority copies of anly such list so filed. When all of any class of
products note-d on any such list shazll have been sold, the mlember of
the? Industry and Trade filing such list shall notify the Code Authority
to that e ffc~t The -foregoing provisions of this Section 2 of Article
VI shall at all times be subject to modification or disapproval by thie
Administrator.
SIEC. ;3. Except as provided in Section 2 of this Article VI, no mem-
ber of the Industry and Trade shall sell, lease, rent, exchange, or
furnish any products at prices lower than the prices noted in the
price list or on more fatvoratble terms and conditions of sale thanz the
terms and conditions of sale previously filed b~y such member with
the Cozde Authority in accordance with the provisions of Section 1 of
this Article VI, and in effect at the time of such sale, lease, rental,
exchange, or furnishing of such products.

ARTICLE VII--SALES

]Except as provided in Section 2 of Article VII, no member of the
Industry and Trade shall sell, lease, rent, exchlngre, or furnish any
products at prices that, or upon such terms and conditions of sale as,
will result in the purchaser's paying for such products less than the
cost thereof to the seller; provided, however, that the seller shall be
permitted to meet the price of a competitor whose price does not
violate the provisions of the Code. In order to determine such cost,
each m-ember of the Industry; and T~rade shall conform his or its
costing slystemn to such accounting standards anld shall include therein
such elements of cost as shall be approved by the Code Authority
and the Administrator.







ARTICLE VIII---REPORTS AND T.ISurrrSn
SECTION 1. The Code AuithorityV shall have powecr, fromt timec to
time, to require each member of the Indulstr andt Tradle to furnish
to the Code Alithorit~y suich information concerlnmg the number of
his or its employees, rates of pay (except rates of payu of executives),
ours of labor, and other conditions of emp~loyment, ndl such other
information as may be necessary or proper mn border to adminster the
Code. The Code Aulthority hl not rquire any information
regarding trade secrets or the names of the customers of any member
of the Industry and Trade. In. order that the Pre~sident may be
informed as to~the observance and operation of the Code, the Clode
Authrit shall make such1 reports as the Admiistrator may require.
SEc. 2. In addition to the information I~required to be su~bmit~t.ed2
to thae Code A1uthority, there shall be furnished~ to G~overnment
agencies such sta tisticlr 'information as the Admlinistrator mlay deemr
necessary for the purposes recited ini Section 3 (a) of the Alct.
ARTICLE IX-GROUPING OF hIEMIBERS

Aggregations of members of the Code or aggregation of members
of the Code and of the Indust.ryadTaehvn omnitrs
and ommn prbles ma begrouped by the Code Aut~hority for
administrative purposes ini proper subdivisions or product class~ifica-
tions under such rules and regulations not inconsistent w-ith thze Code
as mlay be adopted, from time to tie, byT the Code Authority.
ARTICLE X-UNFAIR PRACTICES
For the, purposes of the Code, th following described acts shall
constitute unfair practices in the Industry and Trade.
(a) Making or promising to anyl~ purchaser or prospective pur-
chaser of any product, or to any officer, employee, agent, or repre-
sentative of any such purchaser or prospect~ive purchaser, any bribe,
gratuity, gift, or other paymlen t or rem uneration, direc tly or ind irec tly.
(b) Procuring, ot~herwise than with the consent of any member of
the Industry and Trade, an~y information concerning the business of
such member which is properly regarded by such member as a trade
secret or confidential within his or its organization.
(c) The imitation or simulation by any member of the Code of an
design, sty~let mark, or brand used by any other member of the Code,
or the adoption or use by any member of the Clode of the same trade
name or company name of any other member of the! Code.
(d) Using or substituting any material superior in quality to that
specified by the purchaser of any Iproduct..
(e) Cancelling in whle 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 m
connection with the sale of any product any rebate, commission,
credit, discount., adjustment (including wrhat is known in the Industry
or Trade as a policy adjustment) or similar concession other than as is
permitted by the Code and specified in the contract of sale.
(f) Disseminating, publishing, or circulating any false or misleading
information relative to any product or price for any product, of any
member of the Industry and Trade, or the credit. standiing or ability







of any~ member thereof to perform anry work or manufacture or produce
any product, or to the conditions of employment among employees
of anyT member thereof.
(g) Inducing or attempting to induce by any means atny party to a
contract with a member of the Industry and Trade to violate such
contract.
(h) Aiding or abetting any person, partnership, association, or
corporation in any unfair practice, as set forth in tlus Article X.
(i) Mlaking or giving to any purchaser of any product any guarantyv
or protection in anty form against decline in the market price of such
product.
(j) Stating inz the invoice of any product as the date thereof at 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) Ma~king any satle or contract of sale of anyr product under any
description which does not fully describe such product in terms cus-
tomarily used in the Industry- or Trade.
(1) Rendering to any ]purchaser of any product in or in connection
with the sale of such product any service exceptt techncal or engineer-
ing services), unless fair compensation for such service shall be paid
by such purchaser.
(m) Consignment of any product to any prospective consumer or
ultimate user thereof without anly obligation on the part of such
prospective consumer or ultimate user to purchase the same.
The conducting of field tests or demonstrations of new products
by any member of the Industry and T'rade, without compensation to
such member, shall not be deemed to be an unfair practice.
(n) The sale of an indefinite quantity of products for a price certain.
(0) The guaranty of any product beyond the regular gularanty as
sp~crified in the terms and conditions of sale on file with the Code
Authority and in effect at thle time of the sale of such product.
(p) Extendinzg jobbers' or wholesalers' prices to anyone who is not,
in the opinion of the Code Authority, a jobber or wholesaler, after
receiving notice to that effect from the Code Authority.
(q) Buying or offering to buy from purchasers of products any
goods, wares, or merchandise of their manufacture in excess of ordi-
na~ry business reqjuiremesnts, when, the intent or result of such
purchase is to secure business.
(r) The loan for use of any product to any prospective consumer or
ultimate user thereof when there is no obligation on the patrt of such
prospective consumer or ultimate user to purchase, lease, or rent such
product in accordance with the price list and terms and conditions
of sale on file with the Code Authojrity and in effect at the timne of
such purchase, lease, or rental of such product.
Anyr unfair practice by any member of the Industry and Trade shall
constitute at violation of t~he Code by such member.
ARTICLE ~XI--VIOLATIONS OF THE CODE
SECTION 1. Any -violation of any provision of the Code, or any
amrendments thereto, by atny member of the Industry and Trade shall
constitute a violation of th2e Code by such member.
SEc. 2. Up~on written complaint to the Code Authority by any
member of the Code that any of the provisions of the Code have been







violated by any other member of th Code, the Code AuthorityS shazll
investigate the facts in connection with th alleged violation, and to
that end may cause such exanuination or audit to bet made as may be
deemed necessary and proper, and, upon proof to the satisfaction of
the Code Authority tha a vilation, h~as occurred, th Code Authority
shall, without in any way affecting: any penalties and liabili ties imnposed
by statute, take such steps as, m its option, it deems adviable to
prevent a repetition of such violation.
SEC. 3. ReCOglllzing that the violation by any member of the Code
of any provision of either Article VI or Articlef~ VII wil disrupt the
normalcoure of fair competition in ~the IndustradTrdad
cause serious damage to other embers of the Code and Trd ndt~hat it wpill
be impossible fairly to assess the amount of such damage to any
member of th Code, it is he~treby agreed by and among all members
of the Code that if it shall be determined by the Co~de Authority,
after investigation, that any member of the Code has violated any
provision of either said Article VI or Article VII, such member shall
pay to th Treasurer, for the tim being ~in office, of the Association,
as liquidated damages, in addition to all penalties and liabilties
imposed by statute, a sum equal so twenty per rcntum of the invoiced
price of any products in connection with whhich such violation
occurred. Any amounts so paid to, or collected by, the said Trea-
surer of the, Association under thi Article XII shall be held and dis-
posed of by him as part of the general funds of th Association.
SEc. 4. Anything in the Code to the contrary notwvithstanrdi~ng,
the Code Authority by thet affirmative vote of two thirds of all the
members thereof ma~y wvaive any liabilit~vy for liquidated damages
imposed by or pursuant to anyT provision of the Code for any viola-
tion of any provision thereof, if in its discretion it shall decide that
such violation wa~as innocently made and that the collection of such
damages will not in an~y material extent tend to effectuate the policy
of Title I of the Act.

ARTICLE XII- ENER1AL PROVISIONS
SECTION 1. To the extent required or permitted by or under the
provisions of T~itle I of the Act, the provisions of the Code shall appl
to and be binding upon every member of thze IndustryT and Trae
whether or not such member shall be a member of the Code.
SEc. 2. This Code and all the provisions thereof are expressly- made
subject to the right of th President, in accordance wih thze provisions
of subsection (b) of Section1 10 of the; Act, from time to time to cancel
or modify any order, approval, license, rule, or regulation issued under
Title I of said Act and specifically, but without limitations, to the
right of the President to cancel or modify his approval of the Code or
any conditions imposed by him upon his approval thereof.
OEC. 3. The COde is intended to be a basic code and study of the
trade practices of the Industry and Trade will be continued by the
Code Authority with the intention of submlitting from time to time
to the Administrator recommendations for additions, amendments,
or alterations of such proviins of the Code, applicable to members
of the Industry and Trade, as are not required by the Alct to be in-
cluded herein, and for supplemental codes applicable to one or more
branches or subdivisions or product classifications of the Industr







and Trade, such supplemental codes, however, to conform to and be
conlsistenrt with the provisions of the Code as now constituted or here-
after amended. No such proposed additions, amendments, or alltera-
tions to the Code, or supplemental codes, shall, however, be submitted
by the Code Authority to thre Admlinistrator with a recommendation
for approval except only after th~e affirmative vote of three fourths of
all the members thereof.
SEc. 4. If any member of the Industry and Trade is also a member
of any other industry or trade than the Industry or Trade as defined
in Section 2 and Section 3, respectiv-ely, of Article I, the provisions
of the Code shall apply. to and affect only that part of his or its busi-
r eas which. is included in the Industry or Trade.
SEc. 5. Nothin~g in the Code contained, except thce General Labor
Provisions as set forth in Article IV of the Code, shall be deemed to
apply to or affect the sale of any product for direct shipment, or the
sale of any product purchased for direct shipment, in export trade by
any member of the Industry and Trade within tlhe meaning of the
term "export trade" as it is used in the Export T'rade Act, or, unless
and to the extent that the Code Authority shall otherwise dlet~ermine,
the sale of any product for direct shipment, or the sale of any prod-
uct purchased for direct shipment, by any such member, to the Phil-
ippines, Hlawaii, Puerto Rico, the Canal Zone, or ot her insular pos-
sessions of the United States of America.
SEC. 6. Any member of the Industry and Trade may withdraw from
membership in the Code after June 16, 1935, or after such published
date as may be fixed by proclamation of the President or by joint
resolution of the Congress as the date on which the emergency recog-
nized by Title I of th~e Act has ended. Upon such, withdrawal, all
obligations alnd liabilities of such member under the Code shall cease,
except those for liquidated damages or assessments thecretofore ac-
crued under anly provision of the Code.
SCH-EDULE A
FORM OF LETTER OF ASSENT TO THE CODE
AMERICAN PETROLEUM EQUIPMENT SUPPLIERs' ASSOCIATION,
Temporary address, 418 Esperson Bldg., Houston, Texas.
GENTLEMEIN: The undersigned desiring to become a member of the Code of
Fair Competition of the American Petroleum Equipment Industry and Trade,, a
copy of which is annexed hereto, hereby approves, and by this letter subscribes
to, all of the provisions of such Code, effective as of the effective date of such Code,
or as of thle date of the mailing of this letter if it shall have been mailed subsequent
to such effective date of the Code, and hereby agrees with every person, partner-
ship, association, or corporation which shall be or hereafter become a member of
the Code, that the Code shall constitute a valid and binding agreement between
the undersigned and all such other members.
The undersigned hereby authorizes the Board of Directors of the American
Petroleum Equipment Suppliers' Association, or such members thereof as may be
designated by said Board of Directors, hereinafter called the "Presentation Com-
mittee," to represent the undersigned in the presentation and submission of such
Code to the proper authorities of the National Recov~ery Administration for ap-
proval by the President of the United States, hereby~ giving and granting unto
said Presentation Committee full power and authority to consent to or approve
such additions to or modifications thereof e,s may be required by the National
Recovery Administration.









The execution and delivery of this letter by the undersigfned shall be deemed
to be a subscription to and ratification and approval by the undersigned of any
such additions or modifications consente~d to and approved by the Presentation
Committee.
The undersigned herby transfers. assigns, and delivers to thre American Pe-
troleum Eqluipment Supp~liers' Association all rights and causes olf action whvlat-
soever hereafter accuring to the undersigned under thle Code for liqluid~aite dam-
ages by reason of any violation by anyone, and hereby? desijinates and app~loints
the Treasurer, for the time being in office, of said A~ssociatio~n thi t rue andl Ila'full
attorney in fact of the undersignedr to dem~cand, sue for, collect, and re~ceipt. for
any and all amounts t hat shall b~e owvinlg to t he u nders~igned by reason of anly such
right or cause of action, and to compllromise, settle, satisfy, and discharge any
such right or cause of action in the name of the undersigned, or in. the name of
said Treasurer, as said Treasurer shall elect.
Until written notice of a chlanfie of address of the un~dersig~ned is filed~ with. the
Association, thie address of the undersigned shall be? as set forth. at the foot of this
letter.
Very truly yours,
-- -- Presi lenrt.




UNIVERSITY OF FLOIRIDA
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