NATIONAL RECOVERY ADMIlNISTRATION
CODE OF FAIR COMPETITION
IRON AND STEEL INDUSTRY
mle by Lth Superinsendeas~ of Doeumsnent Washington, D.C. Price 5 canag
Approved Code No. II-Abmendment No. 1
Registry No. 1116--02
AS APPROVED ON MAY 30, 1934
WE DO OUR PART
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Approved Code No. 11ll-Amendment No. 1
AMlENDIMENT TO CODE OF FAfIR COMPETITION
IRON AND ST]EE~L INDUSTRY
As Approved on lMay 30, 1934
EXEc-~ CU_'[ITIVE ORDER
'RE1TSED COD)E OF 1LAIR COMPETITION OF TE TRO AND) STEEL INDUSTRY
Anl application having beenr duly made pursuant to and in full
compliance w~lith thie provisions of TIitle I of the National Indulstrial
Recovery Act approved June 16, 1933, for mry appr~oval of certain
amendments to the Code of Fair Comipetition of the Iron and Steel
Industry as approved on AugTust `19, 1933, a copy of which amend-
ments are hetreto attached as Exrhibit A, and the Administrator, havP-
ing rendered his report showingS that said amnendments have be~en
proposed, adopted and submitted for may approval, pursuanlt to the
provisions of Section 1 of Article XYII of said C~ode and having
recommended that said~ application be granted;
NTOW, THEREFORE. I, Fr~anklin D. Roosevelt, President of the
United States, pursuant to the authority vestd in me by Title I of
said Act, and otherwise, do adopt and, approve the r~epo-t, recom-
miendations and findings of the Admiinistrator and do hereby order
that said amendments to said Code be, and they hereby are, approved
and that said Code as amended by said amnendmients, a copy of which
is hereto attached as Exhiibit B, be anid it hereby is; applrovedl, said
revised Code incorporating said amiendmnents to become effective on
June 11, 19341, prior to which effective date the Code of Fair Compe-
tition approved August 19, 1933, shall continue in full force and
In connection with the foregoing approval I desire to make two
1. Conditions of economics emergency ma~ke necessary the retention
in mnodifiedl form of th~e mrultiple basing point system~ adopted in the
original code and effective in the indlustry for many years. But re-
visions made in this Code, increasing substantially the number of
basing points, and modifications in practicee under the Code, while
alleviating some of the inequlities in t~he existingr system, illustrate the
6447" 7-1--34---1~- (~ 1~~ '1~`~C J~~
desirability of wo~rk~ling toward the end of having prices quoted on
the basis of areas of production anrd the eventual establishment of
basing points coincident with all such areas, as well as the3 elimi~na-
tion of artificial transportation charges in price quotations. There-
fore, I have directed the Fiederal Trade Commnissionl anld the NEiatioinal
Recoveryr Admlinistration to study further and jointly the operation
of the basing point system and its effect on prices to consumers, and
any effects of the existing system in either pe~rmit~ti;n or encourag-
ing price ~fixing, or providing unfair competitive advantages for
producers, or disadvantages for consumers nlot based on actual causes.
I have requested that the results of this study be! reported to me
within six month-s, tgther with any recommendations for revisions
of the Code, in accordance with thne conclusions reached.
2. In order to insure the free exercise of thle rights of employees
under the provisions of Section 7 of this Act and of Article IV of
this Code, I will undertake promptly to provide, as the occasion may
demand, for the election by employees in eachn industrial unit of
representatives of their own choosing for the purpose of collectivert
bargaining alnd other mutual aid and protection, under the super-
vision of an appropriate governmental agency and in accordance
with suitable rules and regulations.
FRANKLIN D. ROOS1EVELT.
Approval recommended :
HUGH S. JOHENSON,
STHIE HTT~ ]HOUSE,
Miay 30, 1934.
LETTER OFi TRANSM\ITTIA~L
The W~thite House.
SmR: The revisions of the Steel Code which have been agreed to
by the Code Authority include (1) revisions resulting from the
insistence of representations of N.R.A. that changes should be made
to meet justifiable complaints andl criticisms of the Code; and (2)
revisions proposed by the Code Author~ity to improve the wvorkability
of the Code and the fair application of its requirements.
We "will summarize the more important changes:
1. The previous power of the Code Authority to set aside an
" unfair "' price filing and to fix a fair base price "" is annulled by
striking out Section 5 of Schedule E of the Code approved August
19, 1933. There is no minimum price or 'i cost recovery "' provision
now left in the Code.
2. The basing point system has been revised (Sched-ule F`) by
adding new basing points to take care of outstanding complaints
(such as Worcester, M~ass., Duluth, MIinn., Corpus Christi, Tex.,
Stockton, Cal.). Criticisms of basing point prices are also met in
part by providing for modification of transportation charges and
price filinga requirements as hereafter shown.
3. All-rail transportation charges, which are included in delivered
prices quoted under the Code, may be reduced when delivery is by
other means (such as water or motor transportation) at rates ap-
proved by the Code Authority as "L equitable and necessary in. order
that competitive opportunity to producers and consumers shall be
maintained "'-(Schedule E, Sec. 4), subject to review of such action
by the Administrator. (Art. XI, Sec. 6.) By a further revision. of
the Code sales below a published base price or delivered: price may
be authorized by the Code Authority--also subject to review by the
Administrator. Under these revised provisions various complaints
of producers and consumers are already in process of adjustment.
4. The price filing provision has been revised to permit any pro-
ducer to meet a lower price quoted by a competitor without waiting
ten days (Schedule E, Section 2). Under the Code also any pro-
ducer can quote as his price the lowest base price filed by any
competitor at a basing point where he himself does not file. (Sched-
ule E, Sec. 3.)
1. The 8 hour day is now established unconditionally for the
entire industry by an amendment of Art. IV. The average 40 hour
week and maximtun 6 day week is retained.
2. Piec:eworketcrs are guaranteedl the mrinimlum rates of pay for
hourly wTorkerCIs by an amendment of Art. IV, Sec. 5.
3. Wage Distrlc~ts have been added to provide minimum wages
for areas of employmellnt not previously included.
The Administrator is empowered (byl a new provision) to suspend
and disappro-ve any action by the Code Authority which constitutes
in, his opinion z Imodifleation of the Code or exemption of anyone
from its provisions. (~Art. XI, Sec. 6.)
Three nlew definitions~ of unfair practice are added to Schedule HI~.
1. Orders cannot be sought by promising to file new prices subse-
quaently--thereby engaging~ m secret price-cutting. (Clause Mf~.)
2. Products not properlyr classified as scrap cannot be sold as
"( scrap." (Clause N.)
3. The use of coercion or coercive means to induce a producer, to
wit~hdraw or to change his ~base price, is forbidden. (Clause O.)
1. A new provision in Schedule E, Sec. 8 permits making a contract
calling for delivery beyond the end of the next calendar quarter year
if products are required for an identified structure, railroad cars and
locomotives, or a definite project of federal, state, county or miunici-
pal g~ove'mrnmet. (The limitation against long term contracts, is
written to prevent speculation and the exception is mnade in public
and private contracts~t which cannot be used for speculative buying.)
2. Under an amendment o~f Schedule ]E, Sec. 3, prices ~fixed in
contracts to be fulfilled in the next succeeding quarter may be reduced
if lowcser prices are~ ubisequently filed--thus allowing producers to
give their contractual customers the benefit of general declining
prices or lower prices made byT competitors.
SMA.-LL ENTERPRISE :REPRESENTATION
At~ revision of Atrticle VI, Section 5i reduces the expense of the
code for small producers by apportioning the total expense accordt-
ing to t~he invoiced~l value of delivered products during the preceding
calendarl year. Each mlem~ber of the Code r~etains at least one vote
regardless of th~e invoiced value of his products, but the code expense
of small producers mayg be materially reduced.
The ter~minatio~n clause (Article XI1I, Section 2) is revised to
provided simply that the Co.de mnay be termninatedl at any time, by
action of the President, or by a vote of seventy-five percent of the
members of the Code.
nasours or verE EXPERIMENTAL PERIOD
The Code was originally approved for a trial period of 90 days.
Upon the reports made to the President at thes end of that period
and the recommendation of the .Administrator, the trial period was
extended by the President to May- 31, 19341, thus giving a total trial
period to date o~f a little over nine months.
During this trial period the volume of complaints from producers
ini the industry, or users of its products has been very small when
consideration is given to the magnitude of the industry. So far as
members of the ICode are concerned its operation and adminis-t.ra-
tion have given general satisfaction. Many complaints from users
of code products have been adjusted by action of the Code Author-
ity, exercising its discretionary powers under the Code. Provision
is made in th revised Code for the adjustment of outstanding com-
plaints either in the revisions, or in action authorized under the
Coe. There have been a; certain number of complaints which have
not been adjusted and some whiich mnay be diflicult of adjustment.
But the major criticisms of the Code are not those of specific injury
of individuals or individual enterprises, but largely theoretical criti-
cisms of the price provisions of the Code, on the ground that they
might operate in si~d of monopolistic practices.
The economic issues involved in these criticisms are fundamental
and far reaching. It is doubtful whether any well integrated :indu~s-
try can operate to protect the stability of its operations and to main-
tan~, without violent fluctuation, employment and wage standards
without being subjected to the criticism that any such effective self-
government might bring about what might be wrongly called monop-
olistic practices. For example, the multiple basing point system is
designed to maintain existing areas of production and channels: of
distribution and to prevent violent dislocations proceedings from such
unrestrained comptition as has resulted in the past all too frequently
in increasing concentration of business in the hands of large pro-
ducers, with violent fluctuations in prices anrd wiPages in a ruthless
struggle to survive.
This industry is highly: competitive and it is a fact that in recent
years the smaller enterprises in the indulstry- have steadily increased
their proportionate production at the expense of the lalrger enter-
prises. This is not a monopolistic trend. On the other hand, con-
sumers may claim that the integration ofE the industry and nethods
of fair competition adopted do not provide for the consumers the
transient benefits of unrestrained cut throat competition. Represen-
tatives of the N.R.A. believe that it would be in th1e public interest
to provide for the joint study of th~e operation of the basing point
system by representatives of the N.R.A. and the F~ederal Trade Com-
mission, in conjunction with representatives of the industry, for the
purpose of determining to what extent and in what manner the prac-
tices of the industry, particularly in regard to the multiple basing
point system, may be improved so as to preserve, for the benefit of
all concerned, the stabilizing effect of the existing sysem and at the
same time to insure full opportunity, through fair competition, to
pass on to consumers the benefits of increasing productive efficiency,
while continuing to improve labor and providing greater stability of:
The labor pr"'ivisins of the Code have operated to produce great
benefits for the wage earners, but hnavPe also given rise to conflicts con-
cerning the right of labor orgaanization andi collectiv~te bargaainingi,
which call imperatively for better assurances than are now provided,
that employees may exercise the rights provided in Section ? (a)
of thec Naationlal Industrial Recovery Act.
The rights of labor organization are clearly defined in the Act and
in 'the Code, but the moist serious complaints which have been re~-
cei-ved durilng the trial period have been the complaints that exercises
of these rights has been restrained in violation of the law. It cannot
be suggested, however, that labor would benefit in the present situa-
tion by a cancellation of the Code. Indeed the complaint is not
against the provisions of the Code, but agaainlst disregard for these"
LABOR BENEFITS UNDER TH~E CODE
The benefits derived by labor from this Codle may be sunrunarized
in the following comparison of employment and earnings in Julne,
1933 and April, 1934:
June 1933 April 1934 Change for Ahpril 19:~34 mas cmpre
Grand total all employees:
Total number employees_ .......-- 338, 146 431, 086 Incfrease 92,940, or 27.4;..
Total wages and salaries ........ $30 560, 761 j$45, 471, 878 Inerease $14,911,11,, or 48.7%.
Average hours per week.._ ........- 39. 7 34. 4 Decrease 5.3 hourrs, or 13.45".
Average earnings per hour .......l 53. Of 71. 4( Increas 18.40, or 34.7%.
Total hours worked_~_.__ 57, 555,359 63, 690, 525 Increase 10.6%~.
Wage earners (employees receiving
hourly, tonnage, or piece~work rates):
Number of wage earners ....____ 305, 320 392, 069 Inerease 86,830, or 28.4%6.
Total wages ..-. _-......... $24,$2 441, 054 $~36, 778, 026 Increase $12,336,972, or 50.4%0.
Average hours per week ......... ._ 39. 4 33.7 Deerease 5.7 hours, or 14.5%J.
Average earnings per hour. ........ 47. 30 64.88 Increase 17.5L, or 37%.
.A eroge ernlings per week ........_ $18. 64 $21.84 Increase $3.20, or 17%.
7 ot.> ho-ur:-workied ......___ 51, 645, 321 56, 723, 813 Increase 9.8%r.
By Comparing the foregoing figures with the year 1929 it appears
that, in April 1934, although the industry was then. operating at
less than 75% of its 1929 operations, it was employing nearly as
many employees as the average for the year 1929.
CONSUMERS INTERESTS UNDER THEF CODE
A comparison of the first six months of 1933 with the last six
months of 1933 shows that total income of 190 companies increased
by approximately $54,000,000 -while the total payroll increase was
approximately $108,000,000. TPhe consumers therefore bore~ only
one-half on the bur~en. of payroll increases.
SMALL ENrTERPR~ISES UNDER THIE COD)E
Reports for 1~933 show that 57 companies producing steel ingots
(the large, integrrated companies) increased payrolls $100,000,0300;
inlcreatsed income only $44,000,000; and showed a net loss of nearly
$65,000,000; while 133 smaller, non-integrated companies increased
payr'olls $8,000,000,000; increased income $1_0,000,000 and showed a
net profit of over $5,000,000. The larger companies in the aggregate
lost 3,( of 1%n on their reported investment and the smaller com-
panies earned over 1%fe on their investment.
It is evident in1 the flight of these figures that consumers w~ere! not
being exploited and that small enterprises were not being oppressed
under the Code. It is also clear beyond question that employment
and wBage payments have increased remnarkably under the Code, and
the standard of living of thne average w~orler has been substantially
It is our recommendation that a continuannce. of the Code as
revised in accordance with the amendments approved by the N;RA.
and agreed to by the Code Authloriyis desirable, with th~e distinct
understanding that wve believe the Coecan be and should be sub-
j ect to further revision and that the members of the indust'Bry should nr
cooperate with the representatives of the govrmninbngn
about full and unquestioned compliance with the requirements o
the law and the Code which protect the rights of employees in self
organization and collective bargainin-g.
HeanI S. Jorrlson,
K. Ml. SurrISON,
MAY 29, 1934. IOADR IHEG
CODE OF` FAIR COMPETITION OF` THE IRdON AND STEEL[
ARTICLE I- DEFINITIONS
Wherever used in this Cfode or in, any schedule appertaining here~to
the terms hereinafter in, this Article and in Schedule E annexed
hereto defined shall, unless the context shall otherwise clearly indi-
ca~te, have the respective meanings hereinafter in this Arc~tile anad
in such Schedule E se~t forth. T'he definition of any such terma in
the singular shall apply to the use of such term in the plural and
SEcTION 1. The term "' the Un~ite~d States means and includes all
of the territory of thle U~nited States of America on the North Amner-
SECTION 2. The term "L the 1President means the President of the
Un~rited States of ALmerica.
SECT'ION 3. The termn products means the iron or steel products
which are generally named in Schedule F annexed hereto as at the
time in effect and standard Tee rails of more than 60O pounds per
yard and angle bars and rail joints therefore, or any of such products.
SESCTION 4. The term "' the Industry means and includes thle busi-
ness of producing in the United States and selling products, or any
SECTION 5. The term "L member of the Inldustry means and in-
cludes any person, firm~, association or corporation operating a plant
or plants in the Unitecd States for the production of produLcts, or
any of them.
SECTION 6. The term. the Code means and includes this Code
and all schedules annexed hereto as originally approved~ by thea
President and all amendments hereof and thereof made as herein-
after in Article XII provided.
SECTION 7. The term "' member of the Code means a~ny mnlberllc
of the Industry who shall have become a member of the Codes as
hereinafter in Section 3 of Article 3III provided.
SECTION 8. The term "L the Institute means American Iron and
Steel Institute, a New Y~orkI membership corporation.
SECTION 9. The termn the Board of Directors means thte Board
of Directors (as from time to time constituted) of the Institute.
SECTION 10. The term the Secretary means the secretary of
the Institu~te at the time in office.
SECTION 11. T'he term t~he Treasurer means the treasurer of
the Institute at the time ini o-ffice.
SECTION 12. The term "L unfair practice means and includes anly
act described as an unfair practice In Schedule H annexed hereto.,
SIECTI[ON 13. Wherever used in the Code with. reference to' the
Industry or any member of the Industryr or any member of the
Code, unless the context shall otherwise clearly indicate,
(a) the term "' plant means only a plant for the production of
one or more products in the Industry;
(b) t~he term "' prices "' includes only prices for products produced
in the Industry
(C) the term 'L wages includes only wanges for labor performed
in the Industry;
(d) the term ""labor means onlyr labor performed in the In-
(e) the ter "L hours of labor "' or "i hours of wcorkr J" includes only
hours of. labor or hours of work in the Industry; andl
(f) the term employee means only an emplloyee in the In-
SECTION 14. The term "~the Naltional Industrial Recovery Act "
means the N~ational Industr~ial RecovFery A~ct as appyroved~ by the
President June 16, 1933.
SECTION 15. Thle term L"the effective date of the Code "~ means
the date on which the Codle shall have been approved by th~e PEresi-
dent pursuant to the. National Industrial Recovery Act..
SECTION 16. The. term the Administrator means the A1~dmin-
istrator appointed by the President under the National Indulrstrial
Recovery Act and at the time. in office.
SECTION 17. The term the Ad~minlistration "" means the agency
established pursuant to the provisions of Section, 2 of the National
Industrial Recovery Act.
ARnTICLE II--PURPOSE OF THE CODE
SECTION i. Thle Code is adopted p~ursunnt to Title I of the Na-
tional Industrial Recovery Act.
SECTION 2. The purpose of the Code is to effectualte thle p~olicS of
Title I of the National Industrial Recovery AcLt in so far as It is
applicable to the Industry.
ARTICLE I-11-bEMBIERSHIPP IN THIE CODE,
SECTION 1. It is of the essence of thle Code that all members of
the Industry which shall comply with the provisions of the Codle
shall be entitled to participate in its benefits upon the terms and
conditions set forth in the Code.
SECTION 2. Any member of the Industry is eligible for miember-
ship in the Code.
SECTION 3. Any member of the! Industry desiring to become a mem-
ber of the Code mnay do so by signing and delivering to the Secretary
a letter substantially in the form set forth in Schedule A annexed
SECTION 4. The rules and regulations in respect of meetings of
members of the Code are set forth in Schedule B annexred hereto.
~ARTICLE IV--Houns or LBnon, RATES OF PAY AND OTHER CONDITIONS
SECTION 1. Pursuant to subsection (a) of Section 7 of the Na-
tional Industrial Recovery 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 the right to organize and bargain
collectively through repretsent~tatives of their own choosing, and shall
be free from the inter~fere~ncec, rest~raint, or coercion of employers
of labor, or their ugernts, in. the dlesignaltion of such representativess
or in self-organizatiorn or in other concerted netivities for the pur-
pose of collective bargaining or other mutual aid or protection;
(2) that no employee~ and no one seeking employment shall be
required as a condition o~f employment to jomn any company umion
or to refrain fromt joining, orgalnizing, or assisting a labor orgrani-
zation of his own choosing; and
(3) that employers shall comply wrsith the maxiinnon~ hlour~s of
labor, minimum, rates of pay, and other conditions of employment,
approved or prescribed by the President.
SECTION 2. Since the beginning of the present depression and the
consequent reduction in the 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 have distributed, the hours
of work avanilable in. their plants so as to give emnploymente to the
maximum number of employees. It is the intention of the Industry
to c~ontinuer that policy in so far as p~racticable, to the end that thre
policy of Title I of the National Industrial ~Recovery Act may be
effectuated, and that work in the Industry shall in so far as prac-
ticable be distributed so as to provide employment for the employees
normally attached to the Industry. The basic processes in the Iln-
dustr are of a continuous charn:wlerr and they cannot be changed
in this respect without ser~io.us adverse effect upon production anad
employment. A-s demand for the products of the Industry and,
therefore, for labor shall increase, hours of labor for employees in
the Industry must ne~cessarly~ increased; but, except in the case of
executives, those employed in supervisory capacities and in technical
woCrk( and their respective staffs and those employed in, nemergency
work, in so far as practicable and so long as emlploy-ees qulalified
for the work required shall be available in the respective locali-
ties where such work shall be required and having duei regard for
t~he varying demands of the co~nsumning and processing industries
for the respective products, none of the members of the Code shall
cause or permit any employee to wc:rki at an average of more than 40
hours per week in any six months period or to workr more than
48 h!oulrs or more than 6 days inl any one week or more than 8 hours
in anyT one day~. Fior thne purposes of this Section 2 the first six
.months period for each employee in the employ of any mec:mber of
the Code at the effective date thereof shall begin with that date,
and the first six months period for any em~ployeie thtrea fter employed
by aniy member of the Code shall begin with thre date of employ-
ment of such employee by such mnembler. After the date of the
employment by any maemb~er of the Code of any employee such~
m-~emberl shall not knowingly permit such employee wrho also sha~ll
have performed work for one or more other employers to work: for
such member such numnbe~r of hours as would result in a vciolation of
the Code had all such work~l been performned for such mem~ber.
SECTION 3. NTone of the members of the Code shall em~ployp in or
about its plants in the Indlustry any person under 16 years of age.
SwrrIow 4. Throughout the history of the Industryr geographical
wage differentials hasve existed, due in the ma~in to differences in
living costs and general economic conditions and the ability ade-
guately to man the industries in the respective localities. The estab-
hishments in the Industry in the different localities havle been devel-
oped under such differences in wages and, after a survey of thle
matters bearing on such differences in thle various sections of the
United States, for the purposes of this Article IV the wage districts
described in Schedule C annexed hereto have been established.
SECTION 5. Until changed by amendment of the Code as herein-
after in Article XII provided, the mninimlum 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 thle Industry in the
respective wage diistricts described in suchi Schedule C shall b~e the
rates set forth in. Schedule D annexed hereto. None of thle mnem-
bers of the Code shall pay common laborers (not including appren-
tices and learners) in its employ in the Industry in any such district
any rate of pay less than the rate specified for such district in such
Schedule D, and any violation of this provision of thle Code shall
be deemed an unfair practice. Such rates of pay shall not, however,
be understood to be the maxzimum 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 Indlus-
try in any of sciih d~t~ric~ts a rate of pay higher than the rate speci-
fled for such district in such Schedule D, except as such member
shall have agreed to pay such higher rate in any agreement hereto-
fore or hereafter made by such member with its employees. Until
this provision shall have been changed by amendment as aforesaid,
each member of the Code will pay to each of its employees in the
Industry who on July 14, 193;3, was receiving pay eat a ratehir raof pay
per hour in excess of the rate of pay per hour then h bengpidb
such member for common labor a rate of pay per hour whichshl
be at least 15%0 greater than that which such employee was then
receiving; provided, however, that the foregoing provision shall not
be so construed as to require any member of t~he Code to make any
increase in the rate of pay per hour to be paid by such member to
any of its employees in 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. In the case of employees (not including ap-
prentices and learners) performing work for which they are paid
per piece of work performed, the minimum rate of pay which each
member of the Code shall pay for such workr shall be suffcient to
produce the minimum rate of pay per hour provided in the Code
for common labor at such plant.
ARTICLE V--PRODUCTION AND NEW CAPACITY
SECTION 1. It is the consensus of opinion in the Industry that it
is not neessary, in order to effectuate the policy of Title I of the
National Industrial Recovery Act, to make any specific provision
in the Code for controlling or regulating the volume of production
in the Industry or for allocating production or sales a mong its mem-
bers. It is believed that, the elimination of unfair practices in
the Industry will aultomaltically eliminate any ovTerproduction therein
and any alleged inequities in the distribution of production and sales
among its members. Adequate provision shall be made under the
Code for the collection of statistics regarding rdcinado
other data from which it may be determnined~ from ctimean to tm
whether overproduction in the Inrdustry exiists ~and whether in the
circumstances any restriction of production is necessary ini order to
effectuate the policy of such Title I. The Board of Directors shall
furnish. to the Administrator summalries or compilations of such sta-
tistics and other data in reasonable detail. Should it at any time inr
the circumstances as they shall thesn exist appear to the Board of Di-
rec~torsa that the policy of such. Title I will not be effectuated in the
Industry because of the fact that through the Code production there-;
in is nrot controlled and regulated, then the Board of D~irectors is
hereby empowered, subject to the approval, of the President after
such conference with or hearing of interested persons as he may pre-
scribe, to make, modify or rescind such rules and regulations for the
purpose of cojnt rolling and regulating production in th~e Industry, in-
cluding the fixing of such liquidatedl damages for violations of such
rules and regulations, as such Board shall deem to be necessary
or proper in order to effectuate the policy of such Title I. All such
rules and regulations from time to time so made and in effect shall
be binding upon. each member of the Code to which notice thereof
shall have been given.
SECTION 2. It is also the consensus of opinion in the Indlustry
that, until such time as the demand for its products cannot ade-
quatelly be mret by the fullest possible use~ of existing capacities for
producing pig iron and steel ingots, such capacities should not be
increased. Accordingly, unless and until the Code shall have been
amended as hereinafter provided so as to permit it, nlone of the mem-
bers of the Code shall initiate tlhe construction of any new blast
furnace or open hearth or Bessemer steel capacity. T1he ]President
may, however, suspend the operation of the provisions of thias
ARTICLEE VI-ADMINISTRATI[ON OF THE CODE
SEICTI[ON 1. The administration of the Clode shall be under the
direction of the Board of D~irectors. T'he Board of Directors shall
have all th~e powers and duties conferred upon it by the Code and
generally all such other powers and duties as shall be necessary or
proper to enable it fully to administer the Code and to effectuate its
SECTION 2. The Secret~ary shall act as Secretary under the Code.
Under the direction. of the B3oard of Dlirectors, he shall keep all
books exceptt books of account) and records under the Code and
except as such B~oard shall otherwise provide, shall collect, file n
collate all statistics and other information required by the Board of
Directors for the! proper admiinistration of the Code.
SEConow 3. The Treasurer shall act as Treasurer under the Cod~e
and, under the direction of the Board of Directors, he shall have
custody of, and have charge of the disposition of, all funds collected
under the Code; and he shall keep proper books of account, showvingr
the collection and disposition thereof.
SECTION -1 The Board of Directors shall have power fromt time to
time (a) to appoint annd remove, andl t-o fix the compens""atio~n of,
all such other officers and employees and all such. accountants, at-
torneys and experts, as said Board shall deem necessary or proper for
the purpose of administering the Code and (b) to fix the compensa-
tion of the Secretary and the Treasurer for heir services in acting
under the Code.
SECTION 5. The expenses of administering the Clode shl~l: be borne
by the members thereof. The Board of Director~s mayn fr~oml time to
time maoke such assessments on account of such expenses against the
members of the Code as it shall dleem proper aInd suchl assessments
shall be payvable as such Boar~d shall specify. 'The part ozf such exr-
penses which shall be assessed against each member of the Code
Hall bear the same relation to the total thereof as the aggregate
amount in dollars of the invoiced value of the products delivered
bysuch member for consumption within the United State~s during
thepre~;cedn calendar year shall bear to the agreg~ctate amount in
dollars of the invoiced value of the p~rodulcts delivered byv all the
members of the Code for consumption within the Unitedl States
during such enlendlar year. Failure of anly member of the Code to
pay the amount of any assessment against such member for a period
of thirty days after the date on which it became payable shall
constitute a violation of the Cod~e.
SEcTION 6. Thle Board of Direrctors may from time to timre appoint
such committees as it shall deemi necessary or proper mn order to
effectuate thle purpose of the Code, and it may delegate to any sulch
committee generally or in particular instances such of the powers aind
duties of the Board of D~irectors under the Code as such Board
shall deem necessary or proper in order to effectuate such purpose.
Any member of any such commiittee miay be a member of the Board
of Directors or anl officer or a director of a member of the Code or a
person not having any official connection with an member of thes
Code or with the Institute, as the Board of D~irectors shall deeml
SECTION 7. Trhe members of the Code recognize that questions of
public interest are or may be involved in its administration. Ac-
cordingly, representatives of the Aldministration consisting of thle
Administrator and one or two other persons appointed by hlim
(who shall be persons not having or representing interests antago-
nistic 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 Board of Directors or any committees thereof ainy
matters relating to the administration of t~he Code and to attend~
meetings of the Board at which action on any such matters shall be
undertaken and to make recommllendations as to methods or measures
of administering the Code. Due notice of all suich meetings of the
Board of Directors shall be givenl to such rep~resentatives of the
Administration. The records of the Board of Directors relating
in any wayv to the administration of the Code shall be open to sulch
representatives at all reasonable times. They shall be afforded by
the Board of Directors complete access at all times to all record,
statistical material or other information furnished or readily avail-
able to the Board of Directors in connection ivith, or for the plur-
poses of, the administration of the Code. The Board of Directors,
acting directly or through one or more committees appointed by it,
shall give due consideration to all requests, suggestions or recomn-
mendations made by such representatives of the Admllinistration and
render every possible assistance to.such repre~sentatives in obtaining
full information concerning the operation and administration of
the Code, to the enld that the President mlay be fully advised regardl-
mng such operation and administration through reports that muay
be made to him from time to time byr such representatives, and to th~e
end that the President may be assured that the Code and th~e admuin-
istration thereof do not promote or permit monopolies or mlonopo-
listic practices, or eliminate or oppress small enterprises, or operate
to discriminate against them and do provide adequate protection of
consumers, competitors, employees and others concerned an~d that
they are in furtherance of the public interest and operate to ef-
fectuate the purposes of T~itle I of the Nationlal I~nd ustri al
ARTICLE VIT--FRICES AND TERMS OF PAYMENT
None of the members of the Code shall make a~ny sale of any prod?-
uct at a price or on terms and conditions more favorable to th~e pur-
chaser thereof than the price, terms or conditions established byT such
member in accordance with the provisions of Schedule 1E 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 con-
ditions more favorable to the purchaser thereof than the price,. terms
and condiitions established as aforesaid and in effect at th-e time of
the making of such contract of sale.
ARTCLE VIII TUNFAIR PRACTICESS
For all purposes of the Code the acts described in Schedule Hl an-
nexed hereto shall constitute unfairsP:a prcies Suchae ob unfairpac
tices and all other practices which salb elrdt eufi
practices by the Board of D~irectors as provided inl paragraph 1P of
such Schedule H or by; any amendment to the Code adopted as here-
inafter in ~Article XIprovided and at the time in effect, shall be
deemed to be unfair methods of competition, in commerce within
the meaning of the Federal Trade Commission Act as amended, andl
the using or employing of any of them shall be deemed to be a viola-
tion of the Code, andj a~ny member of the Industry which shall
directly, or indirectly through any officer, employee, agent or repre-
sentative, knowingly use or employ any of) such unfair practices shall
be guilty of a violation of the Code.
.ARTIcLE I~XREPORTS AND STATI.suesC
SECTON 1. The Board of Dir~ector~s shall have power from time
to time to require each m~emb~r of the Code to fur~nishl to th~e Secre-
tary for the use of the Board of Directors such. information concern-
ing the production, shipments, sales and unfilled orders of such
member and the hours of labor, rates of pay and mother conditions
of employment at the plant or plants of suich member andl such
other information a~s the B3oard of Dlirec~tors shall deemn necessary
or proper in order to effectuate. the purpose of t.hle Codle and the
policy of Title I of the iNational Indus~trial Recovery Act. The
Board of Directors mnay require that any such information be fur-
nished periodically at such times as it. shall specify and may require
that any or all infor~mation fulrnished be! sworn to or ot~herwise
certified or authenticated as it shall preesriibe. Failure! of any mem-
ber of the Code promptly to furnish to the Scr~etary3: information
required by the B~oard of Directors and- sulbstantliallyv in the form
prescribed by it shall constitute a violation of the Coderi. The Board
of Directors shall not require any infolrmaition Iregrding trade
secrets or the names o~f th~e customers of an~y member of the Codle.
SECTION 2. Ainy or all informaitionn fulrnishedl to the Secretalry by
any member of tlhe Codte shall be subject to checking for thle puirpos~e
of verification by an examination of the books and accounts andl
records of such member by any accountant or accountants or other
person or persons designated by the Board of D~irectors and shall
be so checked for such purpose, if the Board of Director~s shall re-
quire it. T~he cost of each such examiination Ehall be treated as an
expenses of adrministeringr the Code;~ provided,~l however,~i~ thaLt, if upon
such examination any such information sh~all be shown;BI to hare been
incorrect in any material respect. sulch cost shall be paid by the
member of the Code wFhich furnishedl such information.
SECTION 3. The Board of Direcito~rs shall require the members
of the Code from time to timec to furnish such information as shall
be necessary for the proper administration of the Code.
SECTION 4. To the extent that the Bjoard of D~irectors may dleem
that any information furnischedl to the Secretary in" accordance w~ith
the provisions of the Code is of a confidential charneter in the in-
terest of the member of the Codle which shall have furnished it
and that the publication thereof is not essential in order to effectu-
ate the policy of Title I of the N'ational Industrial Recovery Act
such information shall be treated by the Boar~d of Direct~ors a nnd
by the other members of the Code, if any knowfledge of it shall have
come to them, as strictly confidential; and no publication thereof
to anyone or in any manner shall be made other thian in comibina-
tion with similar information furnished by other members of the
Code, in which ense the publication shall be made only in such
manner as will avoid the disclosing separately of such confidential
SECTION 5. Sumnmaries or compilations in reasonable detail of all
information which shall be furnished to the Secretary pursuant to
the provisions of this Article IX shall be made periodically and
sent to the Administrator.
AnRTICLE S PEhNALTIES AND Ar).AG~ES
SECTION 1. Any violation of any provision of thle Code by any
member of the Industry shall constitute a violation of the Code
by such member.
61647"-0--57-12 34 2
$ECTIONJ 2. RecOgnizing that the violation. by anly member of th~e
Code of any provision of Article VI[I or of Shedlule E of the Code
will disrupt the nomral course of fair competition. in the Industry
and cause serious damage to other members of the Code and that
it will be! impossible fairly to assess the amnoun of such damage
to any member of thne Code, it is hereby agreed by and among
all members of the Code that each member of the Code whTEich
shall violate any such provision shall pay to the Treasurer as anr
individual and not as treasurer of thne ~Institute, in trust, as and
for liquidated damzages the sum of $10 per ton of any products sold
by such member in violation of any such provisions.
SECTION 3. Except in cases for which liquidated damages are
fixed in thce Code and in cases which shall give rise to actions in
tort in favor of one or more members of the Code for damages
suffered by it or thnem, the Board of Directors shall have power from
timed to time to establish the amount of liquidated damages payable
by any member of the Code upon the commission by such member
of any a-ct constituting an unfair practice under the ;Code and at list
of the -amounlts so fixed shall from timze to time be filed with the
Secretary. rUpon the commission by any member of the Code of
any7 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 pay to the Treasurer as an individual and not as
treasurer of thle Institute, in trust, liquidated damages in the amount
at the time established by the Board of D~irectors for such unfair
practice and specified in the list then on file with the Secretary as
SECTIrON 4. All amounts so paid to or collected by th~e TPreasurer
under this A~rticlb XI or under Section 4 of Schedule E of thne Code
shall be held and disposed of by him as parlt of the funds collected
under the Code and each member of the Code not guilty of the
unfair practice in respect of -which any such. amount shall have been
paid or collected shall be credited with its pro reta share of such
amount on account of any and all assessments otherr than dlamages
for violation of any provision 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 Board of D~irectors, such pro 7rfaa
share to be computed on the samne bansis as the last preious assess-
mnent made against such member on aciounlt of the expenses of ad-
mliniister~ing the Code as hereinbefore in Section 5 of Article VI
provided. All rights of any person whoe shall at any time be the
Trreasurer in respect of any amounts which shall be payable to him
because of the commission by any member of the Code of any~ act
constituting an unfair practice under the Co~de, whether payable
under the provisions of this ALrticle X Lor under anyS other provision
of th~e Code, shall pass to and become vested in his successor in office
upon the appointment of such successor.
SECTION 5. Each member of the Code by becoming such member
agrees with every other member thereof that t~he Code constitutes
a valid and binding contract by and am-Ionwr all members of the
Code, subject, however, to the provisions of Section 7 of Article
XI, and that, in addition to all penalties and liabilities imposed by
statute, any violation of any provision of the Code by any member
thereof shall constitute a breach of such contract ana shall subject
the member guilty of such violation to liability for liquidated dam-
ages pursuant to the provisions of the Code. Each member of the
Code by becoming such member thereby alssigrns, transfers and dte-
livers to the Treasurer as an individual and not as treasrer of the
Institute, in trust, all rights and causes of action whatsoever which
shall thereafter accrue to such member undecr thze Code for such
liquidated damages by reason of any violation of the Clode by any
other member thereof, and thereby desigrnates and appoints the
Treasurer as such individual the true and lawful attorney-in-fact
of such member to demand, sue for, collect and receipt for any and
all amounts which shall be owing to such member in respect of any
such right or cause of action, and to compromise, settle, sa~tisfy and
discharge any such right or cause of action, all in the nam of such
member or in the name of the Treasurer individually, as he shall
SECTION 6. Anything in the Code to tlhe contrary notwithstand-
ing, the B~oard of Directors by the affirmative vote of two-thirds of
the whole Board may waive any liability for liquidated damages
imposed by or pursuant to any provision of the Code for any viola-
tion of any provision thereof, if in its discretion it shall dlecide that
such violation was innocently made and that the collection of such
damages will not to any material extent tenid to effectuate th policy
of Title I of the Nationial Industrial Recoveriy Act.
AuRICLE XI GENERAL PROV'ISIONKS
SECTION 1. Any notice, demand or request required or permitted
to be given to or made upon any member of th~e Ciode shall be suif-
ficiently given or made if mailed postage prepaid addressed to such
member at the address of such member on file wTith the Secretary.
A waiver in writing signed by any members of the Code of any
such notice, demand or request and deliveredl to the Secretary shall
be deemed to be the equivalent of a notice, demrlandl or request duly
given or made, whether or not such w-aiver wans signed and delivered
before the time when such notice, demand or request was required
or permitted to be eiven or made.
'ECTION 2. Nothing contained in the Code shall be deemed to con-
stitute the members of the Clode partners for any purpose. None
of the members of the Code shall be liable in any manner to anyone
for any act of any other member of thle Codec or for any act of the
Board of Directors, the Treasurer or the Secretary, or any committee,
officer or emnployee appointed. under the Codle. None of the members
of the Board of Directors or of any committee appointed under thle
Code, nor the Treasurer, nor the Secretary, nor any officer or em-
ployee appointed under the Code, shall be liable to anlyone for anly
action or omission to act under the Code, except for his w-ilful mis-
feasance or nonfeasance. Nothing contained in the Code shall be
deemed to confer upon anyone other than a member of the Code any
right, claim or demand whatsoever not expressly provided by statute
against any member of the Codle or against ainy member of the
Board of Directors or of any committee appointed under the C'ode or
against the Treasurer or the Secretary or any officer or employee
appointed under the Code.
OECTION 3. ~As soon as members of the Industry which would
if then members of the Code, have the right to cast at least 75%0 oP
all the vcotes that might be cast at a meeting of the members of thre
Code, if all m~emlbers of the Industry were thnen members of the Code
and present at such meeting, shall. sign and deliver to the Secretarya
letters substantially in the form set forth in Schedule A annexe
hereto, the Board of Directors shall submit the Code to the President
pursuant to the provisions of Title I of the Nat~ional Industrial Re-
cover~y Act and, upon the approval of the Code by the President
pursuant to the provisions of such Title I, it shall constitute a bind-
mng contract by and among the members of the Code and the provi-
sionls thereof shall be thne standards of fair competition for the
Industry-; subject, hotoever, to amendment or termnination as he~re-
inafter in Article XII provided, and subject also to the provisions
of Section 7 of this Article X;I.
SECTION 4. T~O the extent required or made -possible, byr or under
the provisions of Title I of the NPational Industrial Re~covery Act
the provisions of the Code shall apply to and be binding upon every
member of the Industry, whether or not such member shall be a
member of the Code. No member of the Inrdustry whlich shall not
also be a member of the Code shall be entitled to vote at any .meeting
of members of the Code or to any other right, power or privilege
provided in the Code for the members thereof.
SECTION 5i. The Board of Directors shall have power from time
to time to interpret anld construe thre provisions of the Code, includ-
ing, but without anyr limitation upon the foregoing, the power to
determine what are products within the meaning of that term as it
is used in the Code. Any interpretation or construction placed
upon the Code by thle Booard of Directors shall be final and con-
clusivre -uponl all members of th~e Code.
SECTION 6j. In case any action taken by the Board of ~Directors ini
the exercise of the power vested in it by the provisions of the Code~
m~ay appear to thre A~dministrator to constitute a modification of the
Code or an exemption of any one or more members of thle Industry
from the application of the provisions of the Code, th~e Admimis-
trator m~ay require that such action be suspended in order to afford
a~n opportunity for investigation by hima of the merits of such action
and further consideration thereof by the Board of Directors.
Pending the determination on such investigation or further con-
sideration, such action shall not become effectively unless the Aidmlin-
istrator shall approve it or unless he shall fSall to disapprov'e it
after thirty (30) days notice to him of intention to proceed with
such action in its original or modified form.
SECrzon 7. The members of the Code recognize that, pursuant to
subsection (b) of Section 10 of the National Industrial 1Recovery
At~ct, the President m~ay from time to time cancel or modify any
orde, aproval, license, rule or regulation issued under Title
of said Bt
ARTICLE XIIT-AM~S~ENDTEN --TERJflNr.\TION
SECTION 1. The Code may be amended at anv time in the manner
in this Section 1 provided. The changiing ofl any schedule hereto
or the addition hereto of any newv schedule shall constitute an aimend-
ment of the Code. All amendmeznts shall be ~propos~ed. by the Board
of Directors by vote of the majority of th~e mxembers thereof ait the
time in office. Each amendment so prop~osedt shall be submitted to
a meeting of the members of the Code wvhichn shall be called for
such purpose upon notice giv\en in necordanrce w~ith thle provisions
of Section I of Schedule B a~nd Section 1 ,of Article XI of the Code.
If at such meeting members of the Cod~e having the rigt to cast at
least 7570 of all thle votes that might be cast at sjuch meeting, if all
the members of the Code were present therea~t, shl~~l vote i~n favor
of the adoption of such amendment, such amnerllnmen shall be sub-
mitted by the Board of Directors to the President for approval, if
approval thereof by him shall then be required by lawf. Every such
amendment shall take effect as a part of thle Code upon the adoption
thereof by the members o~f the Code as above prov~ided and the ap-
proval thereof by the President, if approv-al thelreof by him shall
be required as aforesaid.
SECTION 2. The Code may be terminated at any time either by
action of thle President as hereinbefor~e prov'ided' or by the same vote
of the members of the Codle as is above provided~ for the. amendle~nt
thereof. When so terminated all obligations andi liabilities under
the Code shall cease, except those for unpaid' assessments theretofore
made in accordance with the provisions of the Code and those for
liquidated damages theretofore accrued under any provision of the
Approved Code N'o. 11.-Agmendment No. 1.
Registry No. 111(M2.
Fonxl or LarrzB Or AssIENT TO THE: CODE
To the Secretary of
AMERICAN IRON AND STEEL INSTITUTE,
Empire Staste Buildin2g, New, York, N.Y.
DEAR Sla: The undersigned, desiring to become a member of the Code of
Fair Competition of the Iron and Steel Industry, a copy of which is annexed
hereto marked Annex A,, hereby assents to all of the provisions of said Code
(hereinafter referred to as the Code), and, effective as of the date on which
the Code shall have been approved by the President of the United States of
America as therein provided, or as of the date on which this letter shall have
been delivered, if delivery thereof shall have been made subsequent to the
date on which the Code shall have been approved by said President as afore-
said, by the signing and delivery of this letter becomes a member of the Code
and effective as aforesaid hereby agrees with every person, firm, association
and corporation who shall then be or thereafter become a member of the Code
that the Code shall constitute a valid and binding contract between the under-
signed and all such other members.
Effective as aforesaid, pursuant to Section 5 of A8rticle X of said Code, the
undersigned (a) hereby assigns, transfers and delivers to the Treasurer under
the Code, as an individual and not as treasurer of American. Iron and Steel
Institute, in trust, all rights and causes of action whatsoever hereafter accru-
ing to the undersigned under the Code for liquidated damages byg reason of
any~ violation thereof by anyone, and (b) hereby designates and appoints said.
Treasilrer as such individual the true and lawful attorney-in-fact of the under-
signed, to demand, sue for, collect and receipt for any and all amounts which
shall be owing to the undersigned in respect of any such right or cause of ae-
tion, and to compromise, settle, satisfy and discharge any such right or cause
of action, all in the name of the undersigned or in the name of said Treasurer,
as said Treasurer shall elect.
For all purposes of Section 1 of Article XI of the Code the address of the
undersigned, until it shall file with the Secretary of American Iron and steel
Institute written notice of a change of such address, shall be as set forth at
the foot of this letter.
Very truly yours,
Tea RULES AND REDULA'~TIONS INT RESPECT OF MEETING OF M(IEM~BER OF T CODQ
SacrioNu 1. A meeting of members of thie Code may be called and held at any
time by order of the B~oard of Director~s, or by members of the Code having the
right to cast at least 50%b of all the votes thlat might be cast at such meeting,
if all the members of the Codle were present thereat, on not less thian three
days' notice to each of such members stutinga the time! and place of suchfi meeting
and the purposes thereof.
SwnrloN 2. A~t each meeting of the members of the Cod~e eech member thereof
shall have as many votes as shall equal the quotient obtained by dividing by
500,000 the aggregate amount in dollars of the invoiced value of thle products
delivered by' such. member for c~onsumpt~ion within the United States during the
preceding calendar year. Fralctio~ns in such quotient shllnl be disregarded;
provided, however, that each moember of the Code shaill have at least one vote.
All questions as to the number of votes wYhich each memtwbr of the Code shall
be entitled to cast at any meeting of the members thereof shall be determined
by the Board of D~irectors. Any person or firm who 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 thle Secretary. Any such proxy
may be for ta specified meeting or be a general proxy for any or all meetings
that may be h~eld until such proxy shall have been revoked by an instrument
in writing duly executed by the member of the Code which gave suchi proxy and
filed with the Secretasry.
BEcroTIO 3. At each meeting of the members of the Code, members thereof
having the right to cast at least 7.5% of atll 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.
)EsCRITIO or WAGE~ DISRICT
1. E:A s7:ny DISaler.--Com rise's that part of th United States which is
north of the State of Vir~ginia and east of a line draw~n north and south
through the most easterly point of Altoocna, Pennsylvania; that part of the
State of Ma lryland which is west of such line; and the Counties of Monongalia,
M\a rion and Harrison in the State of W~est Virginia.
2. JoHNsTowvn DisTRc.--Comprises Cambria County and the City of Al-
toona in the State of Pelnus?'lva~n ni
3. PITTSBU~RGH DISTKlor.-CoprisesS the Counties of W~estmoreland, Fayette,
Greene, Washing~to~n, Alle~gheuyv, Beaver, Butler, ArmustrongF and Jefferson and
that part of the County of C'learlientl which is west of a line drawn north
and south through the most easterly point of Altoona, all in the State of
4. YovGNosTows' VALLEY DISTRICT.--COmPLpiSeS the COUnties Of LRWreBCO,
M~lercer and Venango in the State of Pennsylvania and the Coulnties of Trum-
bull, MVahoning and Columbiana in the State of Ohio.
5. NoRTE Onlo RIVER DISanzerT.-ComIprises the cities along the Ohio Rivcrr
north of thie City of Prker~ rsb~urgr, West Virginia, aind the Counlties3 of Btelmon~t
and Jrffe~rslon in the State of Ohio and the Counties of Alarshall, Ohio, Brook
and Hancock in the State of WTest Virginia.
6. C'.\x-os. MASSILLON AND nI.ANSFIELD DISTRICT.-COU mpriSPS the COUnties
of Stark. Tusl.ornwa\,s, Sunulnit. Richland and Marion in the State of Ohio.
7i. CLEVEGLAND DISTRI'IOT.-GO Impri~ieS the CORties of Ashtabula, T~lbke, Cuya-
hocgal and L~orain in the State of Ohio.
8. B3UFrvro D3IStmo~r.-Compll rises that part of the State of New York west
of a line drawn north and couth through. the most easterly point of Altoona,
Penin;;!lvanlia, anld the Counties of Erie, Crawford and Warren in the St~ate
9. D)Emol-TOL nol DIsrawrG.--ComIprises the Counties of Seneca and Lucas in
the State of Ohio and the Counties of Mon~rc-e, Lenaweeri. Jackson, Wriayne,
Oakland, Macomb anid Washtenaw in the State of Mfilhigin n.
10. Sou~rn OmIo RIVEREE DISTRcT.---Comprises the State of K~entuckiy, the City
of Pa'rkerl1sbury.;~ West rirgitinia the cities :Ilang the Ohio River south of said
City, the Counties of Guernsey,' Musk~linumu~ Jackson, Liceking and Butle~r in
thze State of Ohio and the County of Wood in the State of West Virginia.
11. INDI~,arA-ILuJNols-ST. LoUIs Dismica.-Comprises all the State of Indi-
ana, except the county of Lake; all the State of Illinois, except the Counties
of Lakie and Du Page and the Chic~ago Switching District; the City of St.
Louis and. the County of St. Louis in the State of Missouri; the County of
Scott in the Stalte of Iowva; and the Counties of Rtock and Ozaukee inl the State
12. Caroaco DI~smIcT.-Comprises the Chicago Sw\itching District; thze Coun-
ties of Lakre and Du Page in thle State of Illinois; the County of Lake in the
State of Indiana; and~ the Counties of Ke~nlsha. Raicine and Milwaukee in the
State of W~isconsin.
13. So`Our2Nm DISRCTr.--COmprises all that part of the U~nited~ SC~tats south
of the States of Manry~landr. WCest VFirrgini, K~entucky and Mlisso~uri. and the
States of Texsl- and Oklahoma, but does not include the County of JefEferson
in the! State of Alabama.
14. BIRMINIiGHAM DIsraCT.--Comp~rises the County of Jefferson in the State
15. KAd~isas Crrr DITRatcT.-OomPrises the County of Jackson in the State
of Missouri and the County of Polk: in the State of Iowa.
16. DULLUTH DI)sralr.-Com~prises the County of St. Louis in the State of
17. COLORADo DIsTrawr.-Compriscs the State of Cololrado.
18. UTAll Dreanur.-4:omprises the State of I'rahl.
19. SmarrLE DisTrawr.--compri~ses; rbe .'ounty olf Kig inL the Statre of Waush-
Ington and the County of Multnrnlah in the State~ of Orego~n.
20. SA an ahcisco DlIsrnwr.-Comprise thle Cocuntiew~ of San Mateo,, ALllclamea
Sacramento and Contra Consta in the Staite of r'alifolrnia.
21. Los ANGELES UISTRIGP.-COmpriBOS the (:OU ty !Of LOS AigeICS inl the bit t.
MIlnIMuM RATES or PAY Ton CoBM~oE Lhnon
1. IEastern D~istrict____-_- 35
2. Johnstownm District----- 37
3. Pittsburgh D~istrict------ 40
4. Youngstow-n Valley District_ 40
5. North Ohio River D~istrict__ 40
6. Canton, Massillonl and M~ans-
field District______- 37
7. Cleveland District_,---- 40
8. Buffalo District_------ 38
9. Detroit-Toledo D~istrict___ 40
10. South Ohio River District_- 37
11. Indiana-Illinois-St. Louis Dis-
trict .,,-,,---,- 37
12. Chicago District .,--,-_ 40
13. Southern District ..._,__ 25
14. Birmingham D~istrict__-, 27
15. Kansas City District .,,, 35
16. Duluth District __- ._~, 37
17. Colorado District .. .,_, 40
18. Utah D~istrict__ ._, __, 39
19. Seattle District-__, __, 38
20. San Francisco District_, 37
21. L~os A~ngeles District,-,,- 35
CONcErNING ]PRICES AD TEBM OF PaYMENT
Serr~ox 1. Wherever used in the Code the terms hereinafter in this Section
1 defined shall, unless the context shall otherwise clearly indicate, have the
respective meanings hereinafter in this Section 1. set forth. The definition
of any such term in the singular shall apply to the use of such er itnr the
plural and vice versa.
(a) Until Schedule F of the Code shall have been amended as in A~rticle
XII of the Code provided, the term basing point for any product means
one of thle places listed in suchi Schedule F as a basing point for suchi prod-
act. Thereafter the term shall mean on of the places Listed in suh Schedule
F as at the time in effect as a basing point for such praodct.
(b) The term base price for any product means th~e price for such prod-
uct f.o.b. a basing point, before any extras in respect of such product shall
be added or any discounts for early payment or deductions shall be allowed
or made. 1
(c) The term place of delivery "" as used with respect to an~y product
means (1) the railroad freight station at or nbeares to the place at which
the purchaser shall latend to use such product or at which such purebaser
shall have a place of business and shall store such product for resale, or (2),
in the case of a product sold to a jobber for direct shipment by a member of
the Code to a purchaser of such product from such jobb~er, the railroad freight
station at or nearest to the place at which such purchaser shall intend to use
such product, or (3), in the case of a product destined for delivery at a port
in the Canal Zone or in Alaska, a dock at such, port, or (4), except as the:
Board of Directors shall otherwise determine, in the case of carload quantities
of plates, shapes and bars intended for fabrication for an identified structure,
the railroad freight station at or nearest to the place at which such structure
is to be erected.
(d) The term identified st~rurcture"" means a structure whicb, when the
product or products that enter into its construction are Rassembled or erected,
la fixed in its location for use at the point of the assembly or erection of suc
product or products, or a ship or a barge.
(e) The term shipment as used with respect to any product means the
delivery of the possession of sueb product to a carrier for the transportation
thereof to the place of delivery, or, when such product shall be transported by
the member of the Code which shall have sold or contracted to sell it, the
completion of the loading of such product and the commence~ment of th trans-
portation thereof to the place of delivery.
(f) Except as hereinafter in this paragraph (f) provided, th term "all-rail
plublished tariff freight charges as used w~ith respect to the sale by a member
of the Code of any quantity of any product means the freight charges asppricable
to the quantity of such product shipped at one time at the all-rail published
tariff freight rates In effect at thie time of the shipment thereof, and as used
with respect to the sale by a member of the Code of anyv quantity of any product
sold at one time for use in the construction of an idlentifiedl structure, such
term means the freight charges applicable to such quantity of such product
at the all-rail published tariff freight rates in effec at the time of suc sale.
In the case of a sale or contract of sale of a enrload or more of various prod-
nets for shipment in mixed carload lots, whether the respective base prices
for such products be based on the same or different basing points, the term
"all-rall published tarift freight charges" means the freight charges applicable
to the respective quantities of such products sold from the basing point or
basing points on which the respective base prices of such products are based
to the place of delivery thereof at the all-rail published tariff carload freight
rates in effect at the time of the shipment of such products.
(g) 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 interesst on
the purchase price of such. product or any part thereof which shall not have
been paid prior to the expiration of such period.
(h) The term date of invoice means the date of the invoice of anyJ
(i) The term discount for early payment means the amount of the dedue-
tion allowed for the payment of an invoice of products within a specified
number of days after the date of such invoice~.
(3') The term an affiliated group means one or more corporations con-
nected thiroughl stockl crwnerrship with a common parent corporation, if (1) at
least 75%/ of the stock of each of such corporations (except such common
parent corporation) is owned directly by one or muore 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 com-
pany1~ of a member of the Code" means (1) a corporation which is one of an
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
7i5%~ of the stock of which. is owned by such member. For the purposes of this
palnragrap (j) the term stock does not include non-voting stock which is
lim:tedl and preferred as to dividends.
SECTION 2. Each member of the Code which shall have become such within
ten days after the effective date of the Code shall prior to the expiration of
such ten days file, and each member of the Code which shall become such aIfter
the expiration of such ten days shall upon becoming a member of the Code
file, with the Secretary a list showing the base prices for all its products, and
from and after the expiration of such ten days or, in the case of any such
list filed at or after the expiration of such ten days, fromr and after the date
on which, such list shall be filed, such member shall at all times maintain on
file with the Secretary a list showing the base prices for all its products and
shall not make any 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, except as hereinafter in this Section 2 otherwise pro-
vided,, shall be not less than 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 thle Code as above provided shall take effect on the date of the filing
thereof. In3 naming a product in any such, list the name of such product shown
in Schedule F of the Code shall be used, and none of such lists filed. by any
member of the Code shall show more than one base price for any product ofl
any description at any basing point for such, product, except that in any list
of base prices for pipe filed by any member of the Code both a carload price
and a less-than-carload price may be shown. None- of the base prices shown in
any list filed by any member of the Code as herein provided shall be changed,
except by thle filing by such member, with the Secretary of a new list of its
base prices, which shall become effective on the effecctive date therein specified,
which, except as hereinafter in this Section 2 otherwise provided, shall not be
less than ten days after the date on~ which such new list of base p~rices sh~ll
have been so filed. If at any time there shall1 be on file with the Secretary lists
of base prices in which two or more base prices for any product at any- basing~
point shall be shown, any member of the Code which shall have filed a list of
base prices in, which a base price for such product at such bunsing po~int sha:ll
be shown may file a new list of base prices in which a new base price for such
product at such basing point may be shownl as low as the lowest base price for
such product at such basing point shown in a list of base prices filed by any
other member of the Code and such new list of base prices shall become effeec-
tive in so far as such product is concerned on t-he da~te specified thlerein, which.
date may be (a) the same date as that on which such list of base prices in
which such lowest base price shall be shown shall become effective, if such
In:st-menltillned list of base prices shall not have become effective on the date
of the filing of such new list of base prices, or (B) the date of the filing of
such new list of base prices, if the list of base prices inl which such lowest base
price shall be shown shall the~n be effective. In the case of products wihich1
are sold on a list and discount basis, for the p~urproses of this Sectionl 2 the list
of base prices shall consist of a price list and one or more basing discount
lists, from whichi the base prices of such products shall be determined.
Bectrmcl 8 Except as hereinafter otherwise provided In respct of standard
Tee rails of more than 60 pounds per yard and angle bare anad rail jointsr
therefore, the base price for any product shown In any list of base prices filed
by a member of the Code in accordance with the provisions of the foregoing
Section 2 shall be as follows: (a) If such memnber shall operate a plant for the
production of such product which is located at a basing point for suhi product,
f.o.b. such basing point, or (b), if such member shall operate a plant for the
production of such product which is not located at a basing pint; for such
product, t.o.b. the basing point for such product nearest in terms of all-rail
freight rates to such plant, or (c), If any Gulf or Pacific Coast port shall
be listed as a basing point for such product in Schedule F of the Codle as at
the time in effect, f.o.b. cars dock such port, or (d), if any Atlantic Coast
port shall be listed in such Schedlule F as at the time in effect as a basing
point for ferro-manganese or spiegeleisen, then for such product f.o.b. crar
dock such port, or (e), so long as Palmerton, Pa., shall be listed ini such
Schedule F as at the time in effect as a basing point for spiegeleisen, then for
such product f.o.b. such basing point. Except as otherwise provided in this
Schedule E. each members of the Code shall file with the Secretary and main
tain on file wpith him a list showing the base price for each of its products for
each basing point for such product at which a plant of such member for the
manufacture of such product shall be located and for each basing poitn for such
product which shall be nealrest in terms of all-rail freight rates to any plnnt of
such member for the manufacture of such product not located at a basinga
point for such product; and, if any Gulf or Pacific Coast port shall be listed
in such Sebedule 1F as a basing point for a product, such member may show
In such list its base price for such product at such basing point. A:ll blslei
prices shown in the list so filed shall constitute the published base prices ~ofi such
member for the products and for the basing points shown in sunch list. Except
as aforesaid, none of the members of the Code shlall file any list of bas prices
showing any price for any of its products other than the base price for suchl
product f.o.b. the basing point or basing points for such product as herein-
before provided. The published base price of each such member for anyj
product (except standard Tee rails of more than 60 pounds per yard and
angle bars and rail joints therefor) for any busing point for such product
other than that or those shown in the list of base prices so filed by such
member shall be deemed to be the lowest base price for such product at such
other basing point which shall be shown in the list of base prices tiled by a~ny
other member of the Code and then in effect.
All base prices for standard Tee rails of more than 60 pounds per yard
and for angle bars and rail joints therefore shall be f.o.b. mill of the producer
thereof, or, in the case of such rails, angle bars and rail joints carried by
water from any Atlantic Const or Gulf port to any Gulf or Pacific Coast port,
edi.f. the port of destination. Except in the case of contrnets of the character
described in the exception contained in the second sentence of Section 8
of this Schedule E, none of the members of the Code shall sell or contract to
sell any product for shipment in any calendar qluarter-year, until such member
shall have filed with the Secretary a list of base prices in which ~the base
price for such product at the busing point, or the base prices at the respectiv-e
basing points, of such member for such product for such quarter-year shall
be shown and such list shall have become effective; prov~ide~d, however, thiat
nothing herein contained shall be so construed as to prevent such member
from filing at any time a new list of base prices in which shall be slownn
a base price for such product at such basing point or any of such busing
points which shall be lower than the base price for such product at suc~h
basing point shown in the list of base prices which was last filed by such
member prior to the date on which such new list of base prices was so
filed; and provided, further, that, if such member shall file a new list of hase
prices showing any such lower base price at any basing point, any member
of the Code may change any contract which it shall theretofore have made for
shipment of any quantity of such product in such quar'ter-yealr at a price
which was based on such basing point, other than a contrnet of the character
described in the exception contained in the second sentence of said Seation
8, so as to provide that any part of the q~uantity of such product covered
by such contract which shall not have been shipped prior to the effective dalte
of such new list of base prices and which shall be shipped thereafter in such
quarter-year may be billed at a price which shall be determined by the use
of such lower base price. Noctw~ithsta~nding the fact that a mrtember of the
Code is not permit tedl to have on file a list of base prices in whic base
prices for a period lower than a calendar quarter-year shall be shown, any
base price of any product shown therein for any busing point shall be deemed
to be in effect in determining the delivered price of such product for such
basing point required by aoy~ contract to be shipped in, any subsequent quarter-
year as permitted by the provisions of Section 8 of this Schiedule Et. Lists
of base prices filed with the Secretary pursuant to the foregoing Section 2
and to this Section. 3 shall be open to inspection at all reasounble times by
SECTION 4. ExPep~t as otherwise provided in this Schedule E, all prices quoted
and all prices billed by any member of the Code for any product (except
stanldardl Tee rails of more than 60 pounds per yard and angle bars and rail
joints thesrefor, which shall be quoted and billed as hereinafter provided)
sold by such member from and after ten days after the effective date of thie
Code shall be delivered prices, which (disregarding the extras, if any, required
byg, and the deductions, if any, that may be made pursuant to, the provisions
of the Code) shlall be not less than thle sum of (a) the published base price
of such member for such product effective at the time of and for the sale
thereof and (b) an amount equal to the all-rail published tariff freight charges
from the basing point on which such base price is based to, the place of delivery
to the purchaser thereof, or, (1) if such place of delivery shall be at such
basing point, the published tariff switching charges to such place of delivery
from the plant of any member of the Code for the production of such product
at such basing point nearest in terms of such switching charges to such place
of delivery; or, (2) if such place of delivery shall be at a Gulf or Pacific Coast
port that is listed in Schedule F of the Code as a basing point for such, product,
the published tariff switchting charges to such place of delivery from the dock
for discharging products nearest in terms of such switching charges to such
place of delivery; providedl, however, that (a) in any case in which such
prouduc~t shall be delivered by other than all-rail transportation, the mnemnber
of the Code selling such product may allow to the purchaser a reduction in
the delivered price, otherwise chargeable under the provisions of this Section 4
at such rate previously approved by the Board of Directors and ~filed with
the Secretary as the Board of Directors shall deem equitable and necessary,
in order that competitive opportunity to producers and consumers of products
shall be maintained; and (~b),. subject as hereinafter in, this Section 4 provided,
if any list of base prices filed with the Secretary by any member -of the Code
pursuant to the provisions of this Schedule E and at the time in effect shall
show a sp~ecifiedt rate of deduction from, the base price of any, product to be
allowed by such member on any sale of such product to any jobbser for resale,
such member may, fromt and after the date on wNhich. such list shall hrave become
;effective, allow to any jobber to whom such mcemlber shall sell such product
for resale a deduction from such base price to such jobber for such product at
a rate not greater than the rate so shown in such list; and prov~idedt, further,
that the Board of Directors by the affirmative vote of three-fourths of the
whole Board may permit any member of the Code in special instances or
members of the Code generally to' sell or contract for the sale of any product
produced by such. member or members at a base price which shall be less than
the then. published base price of such member or members for such product at
the respective basing points there-for of such members, or at a delivered price
which shall be less thatln the delivered price otherwise chargeable under the
provisions of this Section 4, if by such vote such Board shall determine that
the making of such sale or contract of sale at such less base price or less de-
livered price is in the interest of the Industry or of anly other branch of indus-
try and will not tend to defeat the policy of T'itle I of the National Indlustrial
Recovery Act by making possible the using or employing of an unfair practice.
The Board of D~irectorrs shall prescribe such rules and regulations as it shall
deem proper by which the question of whether or not any purchaser or prospee-
tive purchaser of any product for resale is a jobber shall be dleterminedl, and ini
granting any permissionl as aforesaid, the Boardc of Dirlctorls shallI prescribe
suey rules and regulations in respect thereof as in its judgment shall be neces-
sary in o~lrder to insure to the members of the Code that action in accordance
with any such permission shall not result in an. unfair practice; and thereafter
such B3oard may by like vote rescind any permission so granted or modify,
cancel or add to anly rules and regulations so plrsc~ribed. The Secretary shall
send to each member of the Code a copy of all such rules and regulations
prescribed by such Board with respect to the determination of the question
of whether a purchaser or prospective purchaser for resale is a jobber and
he shall give notice in writing of all action so taken by dile Board of Directors
to each member of the Code which at the time shall be engaged in producing;
the kind of product in respect of ~hic~h anly such permlliSSion waLS granted.
Before any member of the Code shall allow any such~ deduction to anly jobber
or sell for resale to any purchaser who shalll not be a jobber any' product pur-
suant to any permission so granted to such membellhr, suchl memberucl shall secure
from such jobber or such other purchaser an agreement substantially in a form
theretofore approved by? thle Board of Directors and filed with the Secretary
whereby such jobber or other purchaser shall ag~rete withr such membller la) that
such jobber or other purchaser will not, without thle alpprovanl of the Doulrd of
Directors, sell such product to any third party at a pr'ice which at the~ time of
the sale thereof shall be less than the price at which such member might at
that time sell such product to such thlird party', and ( b) that, if suchl jobber
or such other purchaser shall violate any such agr'eement, he shall pay to the
Treasurer as an individual and not as treasurer of thle Institutte, in trust, as
and for liquidated damages the sum of $10 per ton of any product sold by suc
jobber or such other purchaser in violation thereof. In thle usne of a pr~oduct
destined for delivery at a place in the Canal Zone or at a port in Alaskia, the
member of the Code selling such product, in determining its delivered prie
therefore, shall add to its published base price for such product effective at thle
time of and for the sale thereof such charges in respect of tr~an~siertationi as
shall have been previously approved by the Board of Directors aInd tiled with
Except as aforesaid, all prices quoted and billed by any~ member of the Code
for standard Tee rails of more than 60O pounds per yard and angle bars and
rail joints therefore sold by it fromt and after ten days after th~e effective date
of the Code (disregarding extras and deductions as aforesulid) shall be not less
than the published base price of sueb member for such rails, angle bars and
rail joints effective at the time of and for the sale thereof f.o.lb. mill olf the
producer, or, in the case of such rails, angle bars or rail joints carried by water
from any Atlantic Coast or Gulf port to any Gulf or Pacific Co~a.-t palt., c.i.f.
the port of destination. Wheerevr provisions of the Code or of any resolution
adopted thereunder by the Board of Directors require, either sp~ecifill--nly r in
effect, that in determining the delivered price that may be quotedl a~nd billed
for any product an amount equal to any published tariff freight charges shall
be added, an amount not less than the appropriate tariff freight charges
shown in any tariff published pursuant to authority of the Board~c of Dir~ectors
shall be added in determining such delivered price; pr~ovided, however, that
when switching charges for the delivery of a product at a bu~sing point aire
required to be added in determining such delivered price, the Board of Directors
may by resolution fix such an arbitra~ry switching charge or such arbitrary
switching charges for thle delivery of such product as such Board shall deem
proper with a view to preventing unequal competitive condition in respect
of the sale of such product for delivery at such basing point; and prov~ided,
further, that, if and when the Board of Directors shall fix any such arbitrary
switching charge or arbitrary switching charges for the delivery of a product
at a basing point, thereafter not less than the amount of such charge or
charges shalll b~e added in determining the delivered price of such prdu'tlct.
In case at the effective date of the Code any valid, firm contract to which
a member of the Code shall be a party shall exist for a definite quantity of any
product or for all or a substantial part of the requirements of thle purchaser
thereof (a) at a fixed price, or (b) at a price that can be definitely de~terminled
in accordance with the provisions of such contract, or (c) at the market price
for such product at the date when a definite quantity thereof shall be specified
under such contract and such contract covered a sale of 20%b or more of the
total quantity oIf such product produced and sold in the United States in the
calendar year 1932, it is recognized that such contract may influence to an
important extent the market price for such product during the remainder of
its life and that, if the other members of the Code which produce and sell such
product shall by the foregoing provisions of this Schedule E be prevented from
selling such product during the remainder of the life of such contract at as
favorable a price and on as favorable terms and conditions as those provided for
in such contract, then unfair competition as between the member of the Code
w\hic~h shall be a panrty to such contract and the other members thereof and also
as between the other party to such. contract and its competitors may result. Ae-
ccrrdinlyl~ anything~ herein to the contrary notwithstanding, during the remain-
der of the life of such contract ainy member of the Code may sell such product
at a price andi on terms and conditions as favorable as (but not more favorable
than) the price, terms and conditions provided for inl such contract and the
Board of Directors may take such action, in respect of sales of such product by
members of the Code consistent with the terms of such contract as will insure
the prevention of such unfair competition. In case any contract in existence
at the effective datte of the Codie shall require that the price quoted and billed
for any product that is covered by a patent shall be based on, a basing point
other than as Ilrov'ired in Section 3 of this Sched~iulr E, then, any~thing in this
Schedule Ei to the contrary nntw~ith;tandling 1 any member of the Code which.
shall produce and sell such product or any other product which the Board
of Directors shall determine to be competitive in sale and use with such prod-
uet may file a base price for such prolulct or such other product for such basing
point or basing points as will meet the requirements of such contract wiith
respect to the product covered thereby and may quote andi bill delivered prices
for such product or such other product b isedl on such basing point or basing
SECTION\ 5. The Board of Directors by the affirmative vote of a majority of
the whole Board ma~y establish marximumn rates of discount for early pay-
ment and maximum periods of free credit, other than those specified in Sched-
ule G annexred hereto, which may be allowed by any member of the Code with
respect to the sale of any product or products to jobbers for resale as per-
mitted by the provisions of Section 4 of this Schedule E. The Secretary shall
give notice in writingr of anly action taken by the Board of Directors in ac-
cordance with the provisions of this Section. 5 to each member of the Code
which at the time shall be engaged in producing the kind of plroduc~t in the
sale of whieb any such other rates or periods shall have been, established by
such action. ExscepIt as aforesaid and except as elsewhere in this Schedule E]
of the Code otherwise provided the maximum rates of discount for early pay-
ment andi the maximum periods of free credit which may be allowed by any
member of the Code shall be the rates and periods specified in said Schedule
G. Except as aforesaid, all invoices for products sold by any member of the
Code oftrr the effectiver date of the Code shall bear interest from anld after
the expiration of the period of free credit at a rate which shall be not less
than the then current rate estab~lishedr by the Board of Directors and filed
with the Secretary. Nothing in the Code contained shall prevent any member
of the Code from allowing credit to any purchaser or allllowing any purchaser
to delay payment in respect of anly invoice for a longer period than the maxi-
mum period of free credit specified in such Schedule G or such other maximum
period as shall be established in accordance with the provisions of this See-
tion 5; but, if any member of the Code shall allow credit to ainy purchaser or
allow any purchaser to delay payment in respect of any invoice for a period
longer thlan such maximum I-erriod~ of free credit, then such member shall
charge and collect interest on the amount in respect of whtich 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 filed as aforesaid. Anytgrh ing in the
Code to the contraryg no~twithatalnd~ing, the Board of Directors shall have p~ower
to authorize any member of the Code to compromise or settle on such terms
and conditions as the Board of Directors by resolution shall approve any claim.
for the principal of, or the interest on, any indebtedness~s to such member on
ticcount of any product or products sold by it.
S~ctron 6. ExKept as in this Schedule E: otherwise prov\idedl, any~ extras
adr'erl to, and anyg deductions made from, the base price for anly product sold
by any member of the Code in determining its quoted or billed price for such
prodl-uct shall be uniform for all members of the Code. Thie rates of such
extras and of such. dleuctionss shall be those approved~ from time to timer by
the Board of Directors as being in accordance with the trade practice c~ustomaNry
in the Industry at the effective date of the Code and as meeting the require-
ments of the Code. Lists showl~~ine such rates shall be filed 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 Suc(h rate of extr~a
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 Board of Directors as afolresaid and at the
time inl effect and none of the members of the Code shall make any deduction
at a rate that shall be more favorable to the puchse of such product than
the rate of deduction applicable to oneh prodnet theretofore approved by thie
Board of Directors as aforesaid andl at the time in effect; provided, howver
that nothing in the Code contained shall be so construed as to prevent anly
member of the Code from selling or contracting to sell anyv product for use
by the purchaser thereof in the manufacture of articles for shipmlent in exp~ort
trade within thle meaning o~f th~e tem export trade as it is used in the
Export Trade Act under an agreement by such member of the Code w~ith such
punrchaser that, when such articles shall have been shipped in sunch export trade,
such member of the Code shall make an allowvance at a rate approved by the
Board of Directors an a statement of the approval of which shall theretofore
have been filed with the Secreta ry, which rate int the opinion of such Bord
shall be sufficient to enable such member of thei Code or such purchaser to meet
foreign competition in the sale and delivery of suc~h product or such articles,
as the case may be.
SECTIONu 7. Thle practice! of shipping products on consignment may result in
unfair competition and it is the intention of the Industry to eliminate such
practice as soon1 as possible after the effective date of the Codie. Accordingly,
except to the extent necesary to carr out arrangements existing on the
effective date of the Code and which shall have ben reported to thbe Bonrd
of Directors, from and after such date non of th members of the Code
shall deliver products, other than pipe, on c'onsignmlent except to an affiliated
company of such member. Al a1 rrangements for the delivery by any member
of the Code of products n c~onsignment (other than consignments to an
afiliated company of suc member and other than consigfnments of pipe)
existing on the effective date of the Code shall be terminated on or before
June 30, 1934, and al stock held on consignment on that date shall either be
sold to the consignee or possession theref shall be taken by the consignor.
The Board of Directors shall investigate problems presented in the elimina-
tion of consigned stocks of pipe and shall recommn~d to the members of the
Code which shall be parties to then existing arrangements with respect to
shipments of pipe on consiignment (other than consignments from a member
of the Oode to an affliated company) such action in respec thereof as such
Board shall deem proper an designed to accompsih the termnination of all
such arrangements (other thanl as aforesaid) at as earlyl a date as possible.
SEclrlON 8. For aill purposes of this Scehedule E, a delivery of any product
made pursuant to a contract of sale shall be regarded as a sale thereof mnade
at the time of the making of such contract. Except in the case of a product
required (a) by a purchaser for the construction of an identified structure
or new railroad cars or locomotives under a specified definite contract of such
purchaser with a third party rat a fixed price, or for the construction of such
a structure or such cars or locomotive3 owned ~or to be owned by such pur-
chaser, in each of which cases the product shall be sold under a contract which
shall expressly provide that suc product shall be used only for such structure,
or (b) by the Federal Governmzent or any state, county or municipal goverrn-
ment or any department or division thereof for a definite project, and except
as the Board of Directors shall determine to be necessary for the manufacture
and dlelivery of a product or necessary or advisable In order to aid the Federal
Government or any state, county or municipal government in carrying through
its program of economic recovery, reemployment-of labor or relief of distress
or otherwise for the advancement of public purposes and the general welfare,
none of the members of the Code shall make any contract of sale of any
product by the terms of which the shipment of such product is not required
to be completed before the end of the calendar quarter-year ending not more
than four months after the date of the making of such contract. Every con-
tract made on or after June 1, 1934, for the sale of any product which by
the terms of such contract is required to be or may be delivered after the ex
piration of ten days after the date of such contract shall be in writing. On
and after June 1, 1934, none of the members of the Code shall make any con-
tract for the sale of all or any part of the requirements of the other party to
such contract for any product, unless the moaximu quantity of such product
to be delivered under such contract shall be specified therein.
SEUTON 9. Nothing in the Code contained, however, shall be so construed
as to prevent t he peromance by any member of the Code of a valid, firm con-
tract existing and to which it is a party at the effective date of the Code for a
definite rantity of any product or for all or a substantial part of the require-
ments of the purchaser thereof (a) at a fixed price, or (b) at a price that can
be deftinite~ly d~terminedu in accordance with thie provisions of such contract, or
(c) at the ma~rket prlil-e for such product at the date when a definite quantity
thereof~t shall be sptc~ifiedl under such contract. If any member of the Code shall
at the effective dlate thereof be a partly to any contract for the sale of any
plrodulct by such member which by its terms is to continue after December 31,
1933, and by its terms the price to be plaid for such. product by the other party
to such contract is related to the market price thereof at the date when a
definite qluantity thlereofr may be spec~illed under such contract and may be less
than such market price, then such member shall within thirty day's after the
effective dalteF of the Code file a copy of such contract with the Secretary in
order that the Board of D~irectors mayr consider it and take such action in
Irespect thereof consistent withL the rights and obligations of the parties to
such contract as such Board shall dee~m proper.
SECTION 10. None of the provisions of the Code shall alpply to the sale by
any member of the Code to an alliliated company of such member of anyr
product (aG) for resale as the same product or (b) for its own` use (but not for
use in the production in whole or in part of any article sold byr it which is
not a Code product, that is, a product as that term is defined in Section 3
of Article I of the Code) or (c) for use by it in, the production of one or
more Code products to be soldl by it; provide-d, however, that a sale by anl
attiliatedc co~mllanyJ of any member of the Code (1) of anly Code product acquired
by such alliliated company from such member or from one or more attilialted
companies of such member or (2) of any Code product produced by such
affiliated company froma one or more Code products acquired by it from such
member or from one or more? alliliated companies of such member shall be?
deemed to be a sale matde by such member of the Code.
SECTION 11. Nothingll in the Code contained shall be deemed to apply to or
a ske~ct the sale of any product for direct shipmnent in export trade by any
member of the Code within the meaning of the term export trade as it
is used in the Expocr~t Trade Act or, unless and to the extent that the Board
of Directors shall otherwise dletermine, the sale of any product by any such
member for direct shipment to the Philippines, HEawaii or Porto Rico or other
insular possessions of the United States of America.
SECTION 12. If and to the extent Irequested by the Administrator, all de-
cisions of, permissions and approvals given by and rules and regulations made,
by, the Daurd of Directors pursuant to any provision of this Schedule E shal
be reported to him.
Liter o B~erNo PoTBTs
The places hereinufter in this Schedule FJ listed are the
the respeive products named.
basing point fo
XI.LES---ROLLED OR POGD
BALE: TIE-S-INGLE ~LOOP
Pacific Coast Ports'
BPAnar-bU.OY STEEL, ROTY BOLE
H~s-cr rmann ~Olsso AND ALUor
BAB---DONEPP REENFORCN, STRICT I.EGTB
Jersey City, N.J.
Pacific Coast P~orts
BARBS, INGOTB, BIDOMS AND BILL~TS-IBOON
Cuyahoga Falls, O.
Terre Haute, Ind.
a Except as otherwise shown In this Behedule F, the Gulf Ports are Ikfobile, Ala.; New
Orleans and L~ake Charles, La.; and Orange, Port Arthur, B~eaumont, Baytown, Galveston,
Houston and Corpus Christi, Tez
SExcept as otherwise shown in this Schedule F, the Pacifle Coast Forts are San Diego,
San Pedro (includes Wlmington and Los Angelesi, Long Beach. San Francisco (includes
Oakland). Stockion and Socramento, Cal.; Portland. Ore.; and seattle (Includes Tacoma),
Everett and Bellingham, Wash.
Moline, Ill. (Rail Steel only)
Pacific Coast Ports
iFERRO-MABNGANESE AND) SPIEGELLEISEN
New York, N.Y.
Palmerton, Pa. (Sp~-iegeleisenl only)
Chicago, Ill. (Spiegeleisen only)
Mobile, Ala. (Ferro-manganese
New Orleans, La.
GIRDER RAILS ANED SPLICE BARS THEREEFOR
INGOTS9, BLOOMS, BILLETS ABND BJLABS-A-LLOY
Canton, O .
INPGOTS, BLOOMS, BILLET ANVD sLABBS--CARBON
Duluth, Minn. (Billets only)
IMS. OB LESS PER YARD-A-ND SPLICE &BABS
AND ANGLE~ BARS~
PIG; IRtON--FO)UNDRY, HIGH SILOON1 S~ILVERY, MALLEABLE, OPIEN HE~ARTH BA~SIC,
BESSEMER AND HIGR SILICON BESSEIMER
Granite City, Ill.
D~uluth, M~inn. (except Open HRearth
Sparrows Point, M~d.
Ne~ville Is., Pa.
I ZIBON-LO)W PHOSPHORUS
Johnson City, Tenn.
PIPr~--STANDARD LINE~ PIPE AD OIL COUNTRY TUBL PR;ODUCTS
Ga rv, In].
St. Louis, JIo.
Ktansas City, Mlo.
Spa:r~rows Point, IAid.
Pacific Coast Ports
POSTS--FL NCE AND SIGNE
Puc~Riti Coast Poirts
RALROABD TI~E PLATE
]Pacific Coast Ports
RAIBOA TRACK( SPIKES
St. Louis, 1Mo.
Kansas City, Mo1.
Jersey City, N.J.
Pacific Const PortsJ
Sparrowss Point, M\d.
Pacifl Coasrt Ports
C~on tesville, Pa.
Spa:rr~ows Point, Mdr.
BTEW SHEET PILING
Pacific Coast Ports
Pacific Coast Ports
TIN PLATE, TIN MILL BLAOKi PLATEi AND TE~RNE PLATE:
Pacific Coast Ports
wUELS-OAR, RO)LLED STEEL
WIRE--DRAWN~, EXTCEPT AS IIEREFINAFTER SPECIFIED
Anderson, Ind. (M~erchant Wire only)
Glassport, Pa. (Hlot Copp~er-covered
Gulf P~orts (Mlerchanzt W~ire only) :
New Orleans, Laz.
Lake Charles, La.
Corpus Christi, Tex.
Pacific Coast Ports
WIRE HOOPS-T~WISTE OR WELDED)
WIRE NAILS AND STAPLES, TWVISTIED BARB~LESS WI'RE ArrED WInE, TWISTED WIRE'I
FENCEL STAYS AND VIIWIE FENCINGD EXCEPTT CHAIN-LINK FENCI[NG)
Pacific Coast Ports
Pacifle Coast Port:
San Francisco, Cal.
Pacific Coast Ports
Sparrows Point, Md.&
MAxIMUM\ RATES OF DISCOUNT FoR EARLY PAYMENT ALND MAXIMUMY PERIODS OF
MAXIM)IUM BATES OF DISCOUNT F'OR EARLY PAYMENT
SECTION. 1. Except as in this Schedule G otherwise provided, in the case of
products shipped by water from the plant of a member of the Code from or
through any Atlantic Coast or Gulf port to any Paci~fic Coast port, or through
a Pacti~fic Coast port to a place of tlelivery' in the State of California or the
State of Oregron or the State of Wa~Vshington, or to a place of delivery in the
Canal Z~one or to an Alaskanu partl', the maximum rates of discount for early
payment shall be %~ of 1%a of the invoiced value of such products, if the invoice
of such products shall be pa8id writhin 30 days from the date of such invoice;
in all other cases, except, as hereinafter provided, %a of 1%b of such invoiced
value, if the invoice of such products shall be paid wvithin. 10 days from th~e
date of such invoice; provided, however, in the latter cases that any member
of the Code may allow such discount of %z of 1%l for pay~ment within 10 days
on the basis of settlements twice in each month, as follows:
(a) On invoices for plrcrulcts dated from the 1st to the 15th, inclusive,
of any month, such discount mal~y be allowed on payment of such invoices
on or before the 25th of such month;
(b) On invoices for p~roducts datted from the 16th to the end of any
month, such discount may;~ be allowed on. payment of such invoices on or
before thle 10th of the next following month.
In the calse of products shipped. by water as sp~ecified in, this Section 1 similar
to products prodtuc~ed at Pacific (loast plants and sold for delivery at any place
in the States of California, Ocean- l and Washington, the maximum rate of
discount for easly ptl inen('t shall be ya of 1%r of the invoiced value of such
products, if the invoice thereof shall be paid within 40 days from the date
of such invoice.
SECTION 2. In the case of Pipe, Boiler Tubes and 1Mechanical Tubing (herein-
after in this Schedule G referred to as Pipe) sold to purchasers other than
jobbers, the maximum rate of discount for early payment shall be 2%~ of the
invoiced value of such Pipe, if the invoice thereof shall be paid within 10
days from the date of such invoice; providled2, however, that any member of
the Code may allows such discount of 2%r for payment within 10 days on the
basis of settlement twice in each month as hereinbefore provided. In the
case of :Pilpe sold to jobbers, t-he maximum rate of discount for early payment
shall be 2% of the inv~oiedl varlue o~f such Pipe, if the invoice thereof shall be
paid on or before the 15th day of the month following the date thereof; pro-
o~ded, however, that during such period as the consignment of stocks of Piple
shall be continued under the (lCoe, in thle case of Pipe sold to jobbers w\ho
have been accustomed to pur'chalse such Pipe outright under arrangements by
which payment of any invoice of such Pipte is made by a non-interest bearing
trade ncpc(tanc~re due in not mnore than 120 days from the atent of thle shipment
of such Pip~e, a discount of 2%~ of the inv~oiced value of such. Pipe may be
allowed on the payment of such trade acceptance.
SECTION 3. Even~~lt as in this Section 3 otherwise provided, in the case of
Merchant Wire produc1I-ts and Fience and Sign Posts, the maximum rate of
discount for early payments shall be 2%r of the invoiced value thereof, if
the invoice of such products shall be paid within 10 days from the date of
such invoice; pr'ovidecd, how~ever, that any member of the Code may allow such
discount of 2%0 for payment: within 10 days on~ the basis of settlements twice
in each month as provided in Section 1 of this Schedule G; and pr~ovided,
further, that, inl the case of such products shipped by water as sp~ecified in
Section 1 of this Schedule G, any member of the Code may allow such discount
of 2%r, if the invoice of'such pr'oducts shall be paid within 30 days from. the
date of such invoice, or, in the case of any such products so shipped similar
to products produced at Pacific Coast plants andl soldc for delivery at any
place in the States of California, O~regonl and Wanshing~ton~, if thle invoice thereo
shall be paid within 40 days fromt the date of such invoice. In the case of
Woven Wire Fencing in lots of 500 rods or more~ and of Fence and Bign Posts
in lots of 500 posts or more which shatll be poldi to purchasers for resale, the
maximum rates of discount for early panYment shall be as fellows:
BPRING TERM 8
For shipments on and afte December 1st a~nd on or before the following
4%~ discount for ensh on or before the following January 10th;
3L%%~I discount for cash on or before the following February 10th;
3%~ discount for cash on or before the following March 10th;
2%%~1 discount for cash on or before the following April 10th; and
2%~ discount for cash on or before the following Miay 10th.
For shipments after April 1st and on or before MYay 31st:
2%~ discount, if the invoice shall be paid within 10 days fromn thre date of
For shipments on and after June 1st anld on or before the forllowing October
4%0 discount for cash on or before the following July 10th;
8%%/ discount for cash on or before the following August 10tht;
3%6 discount for cash on or before the following September 10th:
23r%4 discount for cash on or before the following October 10th; and
2% discount for cash on or before the fo>llow~inp November 10th.
For shipments after October 1st and on or before Nov'ember 30th:
2%0 discount, if the invoice shall be paid within 10 days from the date of
Secrrosu 4. Any discount allowed in accordance with the foregoing prodi-
sions of this Schedule G in r~espect of anly product shall apply only to the in-
voiced value of such product after excluding anly and all amounts added on
necount of freight or other transportation charges to the base price for such
product in determining the delivered price thereof.
MAXIMUM PERODS OF BEE O~BEDIT
SwceloN 5. Except as hereinafter in this Schedule G: otherwise provided, in
the case of products shipped by water from the plant of any member of the
Code from or through any Atlantic Coast or Gulf port to any Pacific Coalst
port, or through a Pacific Coast port to a place of delivery in the State of
California or the State of Oregon or the State of W~ashington, or to a place
of delivery in the Canal Zone or to an Alas~kanr port, the maimoum period, of
free credit shall be 50 days from the date of the invoice of 3uc~h, products;
in all other cases, except as hereinafter provided, 30 days from th3e date of
such invoice; provided, however, in thfe latter cases, that anly member of the
Code which shall make and invoice a series of ablipments of products to any
purchaser during any calendar month may allow payment without interest
of the invoices of such products on or before the 20th of the net following
month. In the case of products shipped by water as specified in this Section 5
similar to products produced at Pacific Coast plants and sold for delivery at
any place in the States of California. Oregon and Washington, the~ maximum
Period of free credit shall be 60 days from the date of the invoice of such
SECTION 6. In the case of Pipe sold to jobbers, the maximumn period of fre
credit shall be 60 days from thre date of the invoice of such Pipe; provided,
however, that in the case of Pipe sold to a jobber who has bee accustomed to,
purchase such Pipe outright under arrangements with any member of the Cod
by which a line of credit or ledger debit balance is allowed by such member to
such jobber in specified amounts, without interest, if the invoiced value of the
Pipe purchased in excess of the amount of the credit or ledger debit balance
allowed in each ease shall be paid on regular term for such Pipe, then such
member of the Code may continue such arrangements during such period as
the consignment of stocks of Pipe shall be continued ~under the Code.
SEOTION 7. Except as in this Section. 7 otherwise provided, in the' case of
Merchant W'ire products and Fence and Sign Posts, the maximum period of
free credit shall be 60 days fromt the date of the invoice thereof. In the case
of Woven W~ire Fencing in lots of 500 rods or more and of Fence and Sign Posts
in lots of 500 posts or more which shall be sold to purchasers for resale, on
shipments mzade on and after December 1st and on or before the following
April 1st thie maximum period of free credit shall end on the following May
81st; on shipments made after April 1st and on or before the following IMay 31st
the maximnum period of free credit shall end 60 days after the date of the in-
voice of such products; on. shipments made on and after June 1st and on or
before the following October 1st the maximum period of free credit shall end
on, the following November 30th; and on shipments made after October 1st and
on or before the following November 30th the maximum. period of free credit
shall end 60 days after the date of the invoice of such products.
SECTION 8. FOr all pHrpOSes Of this Schedule G a member of the Code may
treat the date of the mailing of any check or other order for the payment of
money sent by mail in payment of any invoice of products sold by such member
as the date of such. payment.
SEcTION 9. Nothing in this Schedule G: contained, however, shall be deemed
to apply to any sale or contract for the sale of any product to the Government
of the United States of America or to any agency thereof in any case in which
such Government or agency shall pursuant to law impose terms of payment
other than, those prescribed in this Schedule G; provided, however, that in any
such ease none of the members of the Code shall allow to such Government
or any agency thereof terms of payment more favorable than those which shall
be prescribed by such Government or agency pursuant to law.
LIsT or UNraza PACTI~CEB
For all purposes of the Code the following des~cr~ibd acts shall contstitut
A. Making or promising to any purchaser or prospective purcaser of any
product, or to any officer, employee, agent or representative of any such pur-
chaser or prospective purc~hasr, any bribe, gratuity, gift or other payment or
remuneration, directly or indirectly.
B. Procuring, otherwise than with the consent of anly member of the Code,
any information concerning the business of such membr which is pr'operly
regarded by it as a trade secret or confidential within its organization, oter
than information relating to a violation of any provision of the Code.
C. Imitating or simulating any design, style, mark or brand used by an
other member of the Code.
D. Using or substituting any material superior in quality to that specified
by the purchaser of any product or using or substituting anly material or any
method of manufacture not in accord wvith any ap~plienble law, rule or regula-
tion of any governmental authority.
E. Cancelling 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 pu'c~haser in connection with the sale of any
product any rebate, commission, credit, dliscount, adjustment or similar conr-
cession other than as is permitted by the Co~de and specified in the contract
F. Disseminating, publishing or circulating any false or misleading informa-
tion relative to any product or price for any product of any~ member of the
Code, or the credit standing or ability of any member thereof to perform any
work or manufacture or produce any product, or to the conditions of emoploy-
ment among the employees of any member thereof.
G. Inducing or attempting to indulce 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 anyT product any" guarantyT or proteo-
tion in any form against decline in the market 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 inv~oie any
product shipped on a date earlier than the date of surb :invoice.
K. MUaking any sale or contract of sale of any product under any description
which does not fully describe such product n3 tems cu~stomarily used in the
L. Rendering to any purchaser of any product in or in connection wnitht the
salle of such product any service, unless fair compensation for such service
shall be paid by such purchaser.
Mi. Agreeing or promising, as a condition of, or in consideration for, receiv-
ing an order for any product or the making of the purchase of an~y product
or receiving other advantage, to file a new list of base prices in, which a ne
base price for such product or new base prices for any ote products shall
N. Belling as scrap any product for any use other than for remelting par
poses or which may reasonably be considered as having a vale other than for
O. Using coercion or coercive means to induce a member of thle Colde to
withdraw or change a base price for any product at any busing point.
P. Anly violation of anly other provision of the Code, whether or not therein
expressed to be such, or using or employing any practice not hereinabove in
this Schedule H3 described which the Board of D~irectors by the affirmative
vote of three-fourths of the whole Board shall have declared to be a practice
that would tend to defeat the policy of Title I of the National Industrial
Recovery Aect and, therefore, an unfair practice, and of which determination
by such Board the Secretary shall have given notice to the members of the
Code and to the President.
Approved Code No. 11-Amendment No. 1 Registry No. 1116-02
AMTENDMENT TO CO4DE OF FAIR COMPETITION
IRON1~ AND STEEL INDUISTRYT
As Approved on May 30, 1934
Pagre tw\o (2) ex~c~utivet order, te~nth line, the w~ord "' actual "' should
bet "L natural.""
Pagre sixi (6) letter to the Pr1esidlent, last line, 8,000,000,000 "
should be "C 8,000,000."~
O. S. GOVERNMENT PRIN(TING Of FICes 195
UNIVERSITY OF FLORIDA
11 I111111#lllil ll 1 111111 i llil
3 1262 08856 0734