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NATIONAL RECOVERY ADMINISTRATION
C ODE O F FAIR COMlPE TITION
CHEMICAL WATER TREATMENT
AS SUBMITTED ON AUGUST 30, 1933
REGISTRY No. 699---15
The Code for the Chemical Water Treatment Manufacturing 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 Administration
as applying to this industry
GOVERNMENT PRINTING OFFICE
i ~DlglinZed bjy [he Inlennel Archive
1n 2011 with fundingiic from
University of Florida, Georg~e A. Smnathers Llbral les with supports from LYRASIS and the Sloan Foundallon
CODE OF FAIR COMPETITION FOR THE CHEMICAL, WATER-
TR`IEATM`NIENTI MANUFACTURING INDUSTRYE
To EFFECTUATE THE ~PounC or TITLE I OF THE NATIONAL INDUS-
-TRIAL RECOVIE1Y. ACT, THIE FOLLOWING PROVISIONS ARE ESTAB-
LTSHED AS A. CODE OF FAIR COMPETITION FOR THE CHEMICAL
PATER TREATMENT MANUFACTURING INDUSTRY
(1) Wherever used in this Code, the term "the Industry means the
business of compounding chemicals and selling such compounds for
the treatment of water used in the generation of steam and in other
industrial operations to prevent, eliminate, or minimize scale forma-
tion, pitting, corrosion, foaming, or emnbrittlement., or to reduce or
change the mineral content of such water.
(2) The term "Mfember of thze Industry-" used herein means any
person, firm, or corporation owning or leasing and operatinIg a plant
in the Industry.
(3) The term "Emnployee"' as used herein means any employee
in th~e Industry.
(4) The termJ '"E~ffective Date as used her~ein means the second
Mfondaiy after the approval of this Code by the President of the
(5) The term "Pay Roll" as herein used shall mean and include the
payt of all employees directly engaged in production in the IndustryT
and that proportion of the pay of all employees antd other personnel,
including supervisory, a fm inis traitive, engineering, dev-elopment,
sales, servicing, and executive, that is properly chargeable to the
business of thae member in the Industry. Such proportions shall be
thatf part of the total dollar gross sales of the member for all products
manufactured or sold by the member which is realized from sales of
the member's products in the Industry.
(6) The term "Mlemlber in Good Standing as herein, used means a
mlember wvho has complied with this Code and all rules and regula-
tions issued in connection~ therewsit.h.
HOURS OF` LABOR, RATES OF PAY, AND OTHER CONDITIONS OF
(1) PIursuant to subsection (a) of Section 7 of the Nalztional Indus-
trial Recovery Act and so long as the Code shall be in. effect, the
Code shall be subject to the following conditions:
(a) That employees shall have! the right to organize. and bargain
collect~ively through representatives of their own choosing, and. shall
be free from interference, restraint, or coercion of emlployers of
labor, or their agents, in the designation of such. repr~esentatives or
in self-organiza.tion or in other concerted activities for the purpose
of collective bargaining or other m~utual aid or protection.
(b) That no employee and no one seeldjng employment shall be
required as a condition of employmle~nt to join any company union or
8682--33 [1 1
to reframn from jonug, orgamizmg, or assisting a labor organization
of his own choosing, a ad
(c) That emrployrers shall comyplyr with the maximum hours of
labor, minimum rates of pay, and other conditions of employment,
approv-ed or prescribed by the President.
(2) On and after thze effective date no member of the Industry
shall employs any employee excepting outside salesmen, emergency re-
pair crews, superintendents, and supervising employees more than
forty hours per week.
(3) On2 and after thei effective date no member of the I~ndustry
shall pay atny employee other than, outside salesmen at a rate less
than 35 cents per hour.
(4) No member of the Industry shall employ any person under six
teen years of age.
PUBLtICATION OF PRICES
(1) Each membher of the Industry shall, on or before the effective
date, file with the Secretary of the Code Commnittee at list of all his
products in the Industry an~d the minimum prices thereof to all classes
of customers, including all quantity differenltials or other discounts,
al terms of payment, freight, nilrowances, prepayments, and equaliza-
tions. Such prices shall be available to any member of the Industry
on request of the Secrectary of the Code Committee.
(2) No mlemlber of the IndustryS shall make any'p reduction in the
miimum price of any product on the list on file with the Secretary
effective less than t~en days after such revised price shall have been
filed with the Secretary~3.
(3) he sle f an prdutby ny mmber of the Industry at less
than the efeciv pie of su p~chllc member for such. product then on file
withr the Secretaryl) shall be a vio~lation of this Code.
(4) Each memblller a~rlees that he will no~t sell a product ofE t~he Indus-
try to a p~urchalse r for resale wuhio shaall not agree to resell said product
at prIices equal to or in excess of the lowest urltimate consumers' price
thierefor fied withl the Scretary3 by any .memb\er.
(1) For a~ell purp~ose of the8 Code the following acts shall constitute
unfirprctie ndshiall be deemeiid to be unfair methods of competi-
tio~n in colnunerele within the menic ing of thle Federal Tralde Commis-
sion Alct as amendelclt d, an1d thie usingb or employing of any of them~ shlll
be deemed~ to be- a vio~lutio~n of this Codte, andl any member of the
Indu~stry3 whlich shall directly or indtir~ectly, through any officers, eml-
ployee, agent. ,I or representative, usei or emnploy any of such unfair
practices shiall be guiltyl of a violaltionu of thle Code:
(a) Makling or promiising r to an pulr chalser or prospec t ive P urchaser,
or to any olilkri, employ-ee, relative~, agercnt, or representative of any
such pulrchaser or prIospective p~urchauser any bribe, gratuity, gift, or
other paymlent or remurneration, direcctly or indirectly.
(b) Th'le diefamaltionl of completito r~s by falselyr impluting to them
disho~norable conduct, innbilityv to- perform contract, questionable
credit standlcingI, or by other false rerlresentations, or false dispar~rag-
mnclt of thle grad1le or equality' of their wor.cl'i
(c) T~he imitation ofI thet tradle ma~rks, trade namnes, slogans, or
otherI marks of idenrt ifie1t innI of compel~t itoCrs.
(d) 1\faliciously enticing away the employees of competitors with
~he pulrpose or effctnl of ulndulyl hamlpering, inuring, or embarrassing
competitors mn their business.
(e) Securing information from comlpe ti tors concerning their business
by false or misleading statements or representations, or by false imper--
sonations of one in authority, and the wrongful use thereof to unduly
hinder or stifle the competition of such competitors.
(f) Paying or allowing or offering to any purchaser or prospective
purchaser any secret or dliscrimlina story reba te, commission, credit, dis-
count, adjustment, or similar concessions.
(g) Ind~ucing or attempting to induce by any means any party to
a contract with a member of the Industry to violate such contract.
(h) Any misrepresen t~.tion as to the quality, quantity-, origin, or
other material condition of any product or service.
(i) .Accept~ance of any form of paper or security in payment at
more than the true value thereof.
(j) The shipment of any product to anyT person without a definite
advaRnce order thlerefor from. such person.
(1) To the extent required or permitted by or ulndeir the provisions
of Title I of the Na-tional Industrianl Recovery Act the provisions of
the Cod~e shall apply- to and be binding upon every member of the
Industry whether or not such member shall be a member of the Code.
(2) Every membrner of the Industry ~who shalll signify in writing; his,
a~ccep tance of the Code and who shall not be in, defau~lt in the payment
of any assessment or the observance of any provision of the Code
shall be a membr~er of the Code.
(3) M heetingrs of mnember1s of the Code may be called from time to
time by the Chairmnan of the Code Commnit tee, by at majority of the
members of the Code Committee, or by members of the Code having
not less than 30%Tl of the vocting pRowr. F~iifty percent of the v~otin~g
power of the members of the Code shall b~e necessary for a quorum,
but. less thancl a quorumr may adjourn any meeting to anly time.
(4) Notice of the time andc place of holding any meeting of the
memnber~s of the Code shall be sent to enchl mlembercl of the Induzstry
as thEen listed by the Code Commnittee not less than ten. days before
(1) At each meeting of thTe members of the Code each member
thereof in good standing shall hav\e as many votes as shall equal the
quotient obtained- by dividing by 1,000 the aggregalte amount of'
dollars of the payroll in thre Indu~stryS of suchl mlember~ls dur~ing the
preceding calendar year. F~ractio~ns shall be disregarded; provided,
however, thiat each mlembler of the IndT ustlry shall have at all times at
lest. one vote. All questions as to the number of votes that each
member of the Code shall be entitled to cast in any mecetingb of the-
members thereof shatll be determined byT the Code Commit~tee.
(2) Each member of the Code shall file with the Secretary a state--
ment sworn to by a responsible officer of such member, sett~ing~ forth
the pay roll on the basis of whlich the voting power of suchl member
shall be determlined.
(1) The members of the Code shall elect a Code Committee at the
AIrnnual Mlleetinzg, composed of five members, all of wnhomz shall be
officers or other representatives of the members of the Industry.----bm
(2) Pending a meeting of the members of the Code t~he folwg
persons in the Industry are constituted the Codee Comlit~tee to serve
.as such until the first meeting of the members of the Code and until
their respective successors a~re elected and qualified:
George R. Carr W. E. Ridenour
L. F. E~dwatrds F". H-. Thorne
(3) Any member of the Code Commlitt~ee may designate an alter-
nate to act in his absence at any meeting of the Co~e. Committee.
(4) T~he Code Colmmitttee shall be the general planning and co-
ordinat~ing agency for the Induzstry and shall have the. following
powers and duties:
(a) T'o represent the! members of the Industry at all. conferences,
hearings, and other nlegotiationcs with. the Presidertnt of the United
States or his representatives with respect to the azpprovral of ths Code
or any' amendment thereof, or any of its provisions, or any matters
(b) TCo em~ploy sulch agents, clerkis, and a attorneys as may be neces-
sary or desirable to administer this Code or to advise a~nd represent
the Committee in any of its furnctions.
(c) To provide itself with offices anrd make the necessary expendi-
tures jin connection therewith.
(d) To sel ec t a Chanirmlan, Vice Chairm~an, Secre tary, and
(e) TCo make inzvestigations upon written complaint or upon its
own~ initiative of violations of the Code and to levy appropriate
penarlties, which in the case of salles shall not exceed 25%~' of t.he selling
price. Thle Code Commnittee m1ay also refer an complaints of viola-
tions of this Code to the. President of t'he United Stat.es or lus re~pre-
sen talt i es for the imposi tio~n of the penalties provided by, the National
Ind st ria~l Recovery Act.
(f) To levy such ass~e.;;me~nts on the mnemlbers of thle Indust~ry in
pnroportion ton their respecPtive~ pay~ rolls during the preceding year as
maII.y be necessary to cover fthe expense of the administration of the
Code and r~easonalble reserves.
(gS) To make! such rules and regulations as many be necessary2 for
thle adm~inistratltion and enforcemlent t of this Code.
(h) T'o determine wheither a membee r of the Code is in good
(5) A mal~jolit~y of theC membercls of thet Code Clommittee shall
const itute a qu oruim.
(1) Pursuedlll to iubsecrtion (b) of Section 10 of the National
Industr~ial JcRc,\cvery Act, thec Presidencrt of thc U'nited ~States miaY at
( In ('\.ent ;Iny\ memberl~I of the Industryf shall111 flail to file a1 report
of its pay,? roll1 for ther prccedting calendorll l ?-ourI w\ithin thle timei specified
in the request th~ere~for byT the Code Committee, or in event the-
Code Commlit~tee shall be of the opinion that any such report whenz
filed by anyT such member shall not have been. prepared in the man-
ner specified herein or fails properly to reflect the pay roll of said
mlember, said Code Comm~ittee, shall ha-ve thne right during reasonable
business hours to cause t~he books and records of any one oi' more of
such members of the Industry to be examllined byT a reputable firm
of disinterested Certified ]Public Accountants in order to compute
t~he pay roll of such member or members to determine whether any
report t~heret~ofore prepared and filed by such member was accurately
prepared in accordance with the proper applications of the terms of
(3) In the event said Certified Public Accountants shall investigate
and verify the accuracy of said report, the expense of the examination
of the books of said member shall be borne by the members of the-
Code. In the3 event said Cert~ified Public Acco~untants shall find
said report or reports to be substantially erroneous and to reflect im-
properly the actual pay rolls of said member, the expense of such
examlination shall be borne by the member making such erroneous
(1) This Code may be amended at anyT time on the recomnmenda-
tion of t.he Code Committeez by a meeting of the members of the,
Code which shall be called for such purpose upon notice given of the
substance. of the proposed atmenrdment in, accordance with thne provi-
sions of the Code. If at such meeting at least 75%L~ of all the votes.
cast at such meeting shall be in favor of the adoption of such amend-
ment., such amenrdmenlt shall be submitted by the Code Commcittee
to the President of the United States for approval, if approval thereof'
by himl shall then be required by law.
(2) Eachn such amendment shall take effect as a part of the Code
upon the adoption thereof by the members of the Code and the ap-
proval thereof by the President of the U~nited States as above provided.
UNIVERSITY11 OF111111111 FLORIDA11111111 1111