Code of fair competition for the gray iron foundry industry as approved on February 10, 1934 by President Roosevelt

Code of fair competition for the gray iron foundry industry as approved on February 10, 1934 by President Roosevelt


Material Information

Code of fair competition for the gray iron foundry industry as approved on February 10, 1934 by President Roosevelt
Portion of title:
Gray iron foundry industry
Physical Description:
p. 419-430 : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Forging industry -- Law and legislation -- United States   ( lcsh )
Iron-works   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1111-04."
General Note:
"Approved Code No. 277."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004952654
oclc - 63655182
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Full Text

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Approved Code No. 277

Registry No. 1111--04





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


For sale by the Superintendent of Documents. Washington, D.C. -


This publication is for sale by the Superintendent. of D~ocuents, Government
Painting Office, Wlashington, D.O., and by district offices of the Bureau of
Brfn and Domestic Commerce.
Atlanta, Ga.: 504 Post Office Building.
Birmninghamn, Ala.: 257 Federal Building.
Boston, Mnass.: 1801 Customhiouse.
Buffalo, N.Y.: Chatmber of Comlmerce Building.
Charleston, S.C.: Chatmber of Commerce Building.
Chicago, Ill.: Buite 1 06, 201 North. ~Wella street.
Clev~eland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianaapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
K~ansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
]Louisville, Ky.: 408 Federal Building.
M/emrphis, Tenn.: 229 Federal Building.
1Minneapolis, hlinn.: 213 Federal Building.
New Orleans, La.: Room 2'25-A, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk, V~a.: 406 East Plume Street.
Philadelphia'a,Pa: 422 Commercial Trust Building.
Pit~tsburgh, Pa.: Chra~mber of Cormmerce Building.
Portland, Oreg.: 215 Nrew Post OBfice Building.
St. Louis, Mo.: 506 Olive Street.
Sanl Francisco, Calif.: 310 Customhouse.
Seattle, WVash.; 800 F~ederal Office Building.

Approved Code No. 277



As Approved on February 10, 1934


An application having been duly made, pursuant to an~d in fulll
compliance with the proviions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Com~petition for the Gray Iron Foundry~ Industry and hearings
having been held thlereon and the Admiitrator having rendered his
report. contaijning an analysis of the said Code of F~air Comapetition
together with his recommendations anld findings with respect thereto,
and the Administ~rat~or having found that the said Code of F~air
Competition complies in all respects with the pertinent provisions
of Title I of said Act and that the requirements of clauses (1) and (2)
of subsection (a) of Section 3 of the said Act have been mzet:
NOWT, TH-EREFORE, I, Franklin D. Roosevelt, President of
the United States, pursuant to thze authority rested irn me by~ Title
I of the N~aational Industrial Recovery Act, approved June 16, 1933,
and otherwise, do approve the report and recommendations and
adopt the findings of the Administrator, and do order that the said
Code of Fair Competition be and it is herebyr approved.
Approval recommended:
HUGH S. Jof-NsoN,
February 10, 1984.
39357*-~376-48-8--4 (410)

Th7e White House.
SmR: This is a report on the Code of Fair Competition for the Gray
Iron Foundry Industry in the United States and on the hearing
conducted thereon in W7\ashington, D).C., on November 9, 1933, in
accordance with the provisions of the National Industra Recovery

The Code provides a forty (40) hour wreek for all employees except
those performing execut~ive or techniedl work, and members of their
staffs individuall receiving pay at the rate of thit-fv dollars (%35)
per wFeek. Petak period emlploymrent is allowed niot to exceed forty-
eight (48) hours durig any calenanr six months' period. Repair and
maintenance employees, firemen, and engineers may be employed
tena percent (10%r) longer hours than ot her employees. In cases of
emergencyT, breakdow-ns, or inz very special cases whn restrictions of
hours of highly skiilled wccorkers would unavoidably reduce or delay
pr~oduct~ion, overt~ime is permitted but mu~st be3 paid for at the rate
of time and one half Wa'tchlmen may w-ork fiifty-siX (56) hours per
w~eeki, but not more than six (6) oult of any seven (7) days. Child
labor is pr~ohibited, andl no person urnder eighteen (18) years of age
may be employed in any dangerous or hazardous occulpation.
Mlinimumln rates of pay are twrenty--five cents (25 ) per hour mn the
extreme Sjout~her District, anrd thirty cents (30C) per houlr for other
parts of the South't, with t~he~rate of thity-five cents (354) per hour
for the States of D~elawanre, M~aryland, West Vir~ginia, and Kientucky;
thirtys-seven (37 g) and forty cents (40 ) per hour are provided for
the NTorthern District. Eighty percent (80%r) of these rates are
paid to learners, and to super~annuat~ed and mailed employees.
Provision in the Code is made for an equitable adjustment of wages
above the minima. prescribed in the Code.
The Gray Iron F'oundry Industry consists of establishments
engaged~r in producing gray iron castings for sale as such. The prin-
cipal products of thEe Industry are3 automotive and motor, machinery,
street equipment, agricultural, boiler, machine tool, engine, beater,
sewing machie, and lawlrn mower castings. It is estimated that there
are approximately sixteen hundred (1,600) plants which, in 1926,
had on the average, sixty-two (62) employees eachi.
The. Gray lIron F~ounders' Society, Inc., which presented the Code
and which represents nearly seventy percent of the Industry in pro-
duction of castings, presents the following figures:
Invested Capital _- ------------- ------------~ $243, 504, 000
Rtate of Production, July 1933, tone per year_-,,,,, .. 1, 400, 000
Production Capacity, tons per ypear_------ --. ...--- 11, 650, 000
Number of Employees, July 1933_----,- .. ... 7?1, 000


Statistical information in regard to the Industry is exiceedingly
Such statistics as are available indicate that in 1926 the average
hours of labor were fifty-five (55), and that ours of fifty-eight (58)
or sixty (60) were not uncommon; some plants working even longer
hours. In that year, less t~han three percent (3%) of the employees
worked as few as forty (410) hours a week. Even in the first quarter
of 1933, over sixteen percent (16%0) of the employees worked over
forty (40) hours a week. Hours of employment since the first quarter
of this year are not available; but, as production in July 1933 (the
latest month for which we have data), was double the rate of produc-
tion in the first quarter, it is safe to assume that this percentage has
materially increased and that a maximum of forty (40) hours a week,
as the Code provides, will materially increase the number of
Pertinent figures relative to the Industryv since 1928 are as follows:

Year Estir e t odf lifinimum wages
tns employees

1928...................................... 2, 400, 000 04, 000
1920--.................................... 2, 810, 000 99, 500
1930...... ---.............. --............ ]1,60, 000 70, 000
1931........................-----......... 1, 260, 000 72, 000
1932___-.~................................ 700, 000 57, 500
1933, fist quarter__. ........--...-........ 700, 000 46, 200 INorth, 30.7 cents; Bouth, 19.5 cents
1933, July~._...-~~-........................ 1, 400, 000 71, 0001 per hour.
Estimated under Code at July level of 1, 400, 0001 81,000 INorth. 37 and 40 cents per hourly
production. I ~South 25, 30, and 35 cents per hour.

It is estimated that operations under the Code wil add nearly
ten thousand (10,000) employees to t~he payroll and two hundreds
thousand dollars ($;200,000) to the weekly payroll and ten million
dollars (,$10,000,000) to the, annual payroll of the Industry, based on
operations at levels of July 1, 1933, for the Industry in general.
Administration of the Code is provided by an adequate Code
Authority on which membership of Administration Representatives
is provided.

The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all thie proceedings
in this matter:
I find that:
(a) Said Code is well designed to promote the policies and purposes
of Title I of the Nat~ional Industrial R~tecovPery Act, including removal
of obstructions to the free flow of interstate and foreign commerce
which tend to diminish the amount thereof and wcill provide for the
general welfare by promoting the organization of industry for the
purpose of cooperative action among the trade groups, by inducing
and maintaining united action of labor and management under
adequate governmental sanctions and supervision, by eliminating
unfair competitive practices, byr promoting the fullest possible utili-
zation of the present productive capacity of industries, by avoiding
undue restriction of production (except as mnay be temporarily
required), by increasing the consumption of industrial and agricultural


products through increasing_ purchasing powerbyrdigad
relieving unempl~oymaent, by imaprovmng standards of elabo~gd~rdcn and b
otherwie rehabilitating industry.
(b) The Code as approved complies in all respects w\ith the pertinent
provisions of said Title of said Act, including without limlitation Sub-
section (a) of Section 3, Subsection (a) of Sect~ion 7, and Subsection
(b) of Section 10 thereof; anld that the applicant group is an industrial
group truly representative of the aforesaid Indust~ry; and that said
group imposes nro mnequit~able restrictions onr adnulssion to mnember-
ship therein.
(c) The Code is not designed to and w-ill not penulit monopolies or
monopolistic practices.
(d) The! Code~ is not designed to and will not eliminate or oppress
small enterpr~ises and will not operate to discriminate against them.
(e) T'hose engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said Code.
For these reasons, therefore, I recommend thiat this Code be
Respe t fullly,
Adm inistrator.
FEBRUARY 10, 1934.

To effectuate the policies of Title 1 of the National Industrial
Recovery Act, the following provisions a~re submitted as a Code: of
Fair Competition for the Gray I[ron F~oundry Industry, and upon
approval by the President, shall be the standards of Fair Competition
for this Industry~.
The terms used in this Code are defined as follows:
SECTION 1. The term United States" means and includes all of
the terri tory su bject to the jurisdiction of the United St t~es of America.
SEc. 2. The term "the President" means the President of thae
United States of ~America.
SEC. 3. The term~ "t~he Industry means and includes the business
of producing anzd selling in the open market ferrous or ferrous base
castings other than steel or malleable iron, castings, whether cast
in sand or other type of mnold, and commonly kno~n. as Gray Iron
Castings and sold in competition with similar G~ray Iron Castings
either i th or without t any subsequlen t proc essinug thaereon performed by
producer, provided, however, that such term shall not include stid
c~astings w~hen produced by a manufacturer in another industry
(includingr any affiliated or parent company of such mlanulfacturer)
(1) a.s part of hi own~ products in such other indulst~ro (includ~ing
finished and semifinished -parts therefore) or (2) as materials for servr-
icing products of such ot her indlustryv (including finished and semni-
finished parts therefor) when such servicing materials are distributed
by such mlanufacturer to the user of products of such other industry
either directly or through such manufacturer's usual distribution
SEc. 4. The term "Anffiliated Comlpany means a company con-
nect~ed with another company where at least more than a half of sulch
affiliated companyg's voting stock is owned by such other company,
either directly or indirectly.'
SEC. 5. The term "Parent Company means a company that owns
more than half of the voting stock of another company or business,
either directly or indirectly.
SEC. 6. The term "'Employees" as used herein includes any and
all persons engaged in the Industry, however compensated.
SEc. 7. The term ""Employer as used herein includes anyone for
whose benefit such an employee is so engaged.
SEc. 8. The term "Mlember of the Industry includes, but without
limitation any individual, partnership, association, corporation or
other form of enterprise engaged in the Industry, either as an, em-
ployer or on his or its own behalf.
(4 23)


SEc. 9. The term the Society mneans Gray Iron Founders'
Society, Inc.
SEc. 10. The term the Board of Dir~ect~ors mesns t~he Board of
Directors of the Gray Iron Founders' Society, Inc.
SEc. 11. The term "Code Authority means the Administrative
body for this Code, as set forth in Section I of Article III.
SEc. 12. TIhe term "tfhe! Adminrist~ra~tor as used in this Code means
the Administrator at the time in office, who has been appointed by
the President to adtminist~er Title 1 of the Act.
SEc. 13. The term export" means and includes shipments of Gray
Iron Castings to foreign countries and to territories and possessions
of the United States.
SEc. 14. The term "Aict" means the National Indulst~rial Recovery
Act as approved by the President June 16, 1933.
SEC'TION 1. "The Ctode Authority shall be the~ general agency for
the administration of this Code, adshall conlsist of eight (8) members,
all of whoml shall be experienced in and actively connected with the
business of the Indust~ry, six (6) of whoml are to be chosen from
among the Board of Dir3ctors of the Society, two (2) of whom shall
be representatives of nonmembers to be selected by ballot by said
nonmembers from amlongst their numbers. If said nonmembers do
not select their two (2) ,representatives within a reasonable length of
time, they shall be then chosen by the Code Authority from among
the said nonmembers. At least one (1) member of the Code Authority
shall "be elected from fthe St~ates enumeratetd in Article IV, Section 3
(a), Subparla.gratphs (1) anid (2). In. addition, the Administrator
may appoint not to exceed three (3) members to serve (without vote)
with the Code Authority ini the administration of this Code. M~em-
bers appointed by the Admninistrator shall serve for terms of from
six (6) months to one (1) year, an their ters of appointment shall
be, so arranged that they do not expire at the same time. The Code
Authority shall:
(a) At all times be truly re~pr~esen tative of the Industry and in other
respects comnpl~y withz thle provisions of the Act. TIhe Admlinistrator
meuay, therefore, prescribe such hearings as he mlay deem proper, and
thereafter if he shall find that the Code Authority is not truly repre-
sentative or does not in other respects comply with the provisions
of the AQct, may require an appropriate modification in t~he method of
selection of the Code Aut~hority.
(b) For the purpose of keeping the President informed as to the
observance or nonobservannc~e of this Code and a~s t~o whether the
Industry is taking appropriate steps to effectuate in all respects the
declared policy of the Act, require from any memer of the Industry,
in ~the event of c~omplaint or otherwise, duly certified reports in such
form as may hereafter be required by t~he P~resident.
(c) Obtanm fr~oml members of the Industry, such information and
r~eport~s as are required for the administration of the Code; and shall
provided for submission by mremb~ers of suchr information and reports
as the Administrator may deem necessary for the purposes recited
in. Section 3 (a) of the Act, whih information and reports shall be
submitted by mnemlbers to such Administrativ~e and/or Government


Agencies' as the Administrator mlay design te. Except as otherwise
provided in the Act, all information and reports obtained from
members of the Industry as are required for the administration of the
Code shall be confidential. Such information and reports shall not
be revealed except as published in composite form to any other mem-
ber of the Industry, except that for t~he purpose of administering or
enforcing the provisions of this Code, the Code AuthorityO shall have
access to any and all such information atnd report~s.
(d) Mlake rules and regulations as mlayV be, necessary for the ad-
mlinistration and enforcement of this Codie, and generally insure the
execution of the provisions of this Code, and provide for compliance
of the Industry wilth the Code.
SEc. 2. Members of the Industry having a common interest. and
common problems may group themselves for administrative purposes
in various territorial subdivisions or product classifications. The
majority of members in each territorial subdivision or product classi-
fication may, with the approval of the Code Aut~hority, ~appoint its
own agency with supervisoryv and/or administrative powers. IZf formal
complaint is made to the Code Authority that thze provisions of this
Code have been violated by any member or members of any terri-
torial subdivision or product classification, the agency for the terri-
torial subdivision or product classification to which the complaint
refers shall institute such inquiry as may be necessaryg to develop the
facts, adj usting said com plaint according to the pronisions of the Code,
and 'finally submitting their findings and conclusions to the Code
SEc. 3. The jurisdiction, under this Code, of thet Code Authority
and of any supervisory agency as provided in Section 2 of this Article,
is expressly limited to that portion of such member's business as falls;
witle the definition of the term "the Indust~ry).'"
SEc. 4. The expense of administering the Code shall be equitably
apportioned among all members of the Industry in the following
The Code Authority shall, from time to time make such assessments
on account of such expenses against all members of the Industry as
shall be equitable and proper. It shall apportion such assessments
upon the basis of shipments in net tons of castings within the Industry
by each member of the Industry for the preceding calendar year, or it
shall apportion such assessments in such other form as may be reason-
able and equitable. Such assessments shall be payable as the Code
Authority shall specify. In the event any member of the Industry
shall not have been in operation during all of the preceding calendar
year, such assessments shall be based on such period as the member
was in operation.
SEc. 5. In order to fully comply with the Act, the Society shall
impose no equitable restrictions on members, and shall submit to
the Administrator true copies of its Articles of Association, By-Laws,
Regulations, and any amendments when and as made thereto, together
with such other information as to membership, organization, and any
and all activities as the Administrator may deem necessary.
SEC. 0). NOthing contained in this Code shall constitute the memb-
berss of the Industry or of the Code Authorityv partners for a.ny
purpose. Nor shall any member of the Industry or of t~he Code
Authority be or become liable in any manner to anyone for any act


of any other member of the Industry, or of the Code Authority, or
of any offcer, agent, or employee of either; nor shall any member of
the Code Authority exercising reasonable dilligence? in the conduct of
his duties hereunder be liable to anyone for any action or omission to
act under this Code, except for his ow-n wilful mistensance or non-

SECTI[ON 1. Pursuant to subsection. (a) of Section 7 of thze Act, and
so long as the Code shall be in effect, the Industry shall be subject to
the following conditions:
(1) TIhat employ-ees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from. interference, restraint;, or coercion of employers of labor,
or their agents, inz the designation of such representatives or in self-
organization or in other concerted activities for the purpose of collec-
tive bargrainingr or other mutual aid or protection;
(2) That no employee and no one seeking employment shall be
required as a condition of employment to join any company union or
to reframn from jommig, orgamizmg, or assisting a, labor organization
of his own choosing;
(3) That employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment,
approved or prescribed by the President.
SIEC. 2. On or after the effective date, no employer shall employ
any minor ulnder Esiteen (16) years of atge, and no one under eighteen
(18) years of age shall be employed inz hazardous occupations. The
Code Authority shall file with the Administrator within ninety (90)
days a list of such occupations.
Sec. 3. (a) On and after the effective! date, the minimu wage
which shall be paid by any employer to common labor engaged mn
the Gray Iron Foundry Industry, shal be as follows:
(1) For the States of North Carolina, South Carolina, Georgia,
Florida, Alabama, lMississippi, and Louisi nann-twentyv-eight cents
(28 ~) per hour, or the rate in effect July 15, 1929, wh~ichever is lower,
but in no event less than. twenty five-cent~s (2514) per hour. (The
optional use of July 15, 1929, rate applies only to the foregoing speci-
fied territory.)
(2) F~or the States of Virginia, Tennessee, Arkasnsas, Oklahoma, and
TIexas--thirty cents (3014) per hour.
(3) For the? States of Delawvare, Mary~lanzd, WIPest Virginia, and Ken-
tucky--thirty-five cents (351t) per hour.
(4) For the remainder of the United St~ates, the minimum~ wage
which shall be paid by any employer to comon labor inr the Gray
Iron Foundry Industr~y shall be as follows:
In Metropolitan Districts and Cities having a population of 25,000
and over--forty cents (40 ) per hour.
For Cities, Town, anrd poltical subdivisions not included in a~ny
Metropolitan D~istrict, having a population of less than 25,000--thirty-
seven cents (37 ) pecr hour.
Provided, that superannuated and maimed ecmployees may be paid
not less than eighty percent (80%r) of the above minimlum wage, but


the total number of such superannuated and mailed employees paid
at such reduced rates shall not exceed five percent (5%o) of the total
employees mn any calendar month.
Provided further that nothing in Section 3 (a) of Art~icle IV' shall
apply to or affect a bona fide apprentice employed under a system
or course of training which, when completed, wil l make the apprentice
a skilled journeyman mechanic, and provided further, that beginnr
or learners who are not so apprenticed, may be paid for a period of not
more than three (3) months, from the date of their employ-ment, a
wage rate of not less than eighty percent (80%J) of the minimum
wages prescribed in Section 3 (a) of Article IV. At no time shall th
total number of such apprentices and learners or beginners, receiving
less than the minimum rate, exceed five percent (5%0) of thie total
(b) On and after the effective date the mlinimum wage that shall
be paid office and salaried employees shall not be less than the fol-
lowmg weekly rates:
In Metropolitan Districts and Cities having a population of 25,000
and over, at the rate of Fifteen Dollars ($15.00) per week.
For Cities, Towns and political subdivisions not included in any
Metropolitan District, having a population of less than 25,000, not
less than at. the rate of Fourt~een Dollars ($14.00) per w~eek.
The population and outliving Mletropolitan District~s used for divid-
ing the areas mentioned 'in Article IV will be that shown in the
"Fifteenth Census of t~he Unit~ed 1Lletropolitan Dist~rict
Population Areas."
Office boys and girls shall be exempt from the provisions of this
Section, provided they are paid at a rate of not less than eighty percent
(80%0) of thle above minimum wage, and provided further, that the
number of such office boys and girls shall not exceed one (1) to every
twenty (20) persons or fraction thereof employed in any office of any
member of the Industry, provided further that each employer shall
be entitled to at least one (1) office boy or girl.
This article establishes a minimuml rate of pay which shall apply,
irrespective of whether an employee is actually compensated on a
time rate, piecework, or other basis.
There shall be an equitable adjustment of wages above the mini-
mum herein prescribed to the end that so far as may be equitable, the
differential which now exists in the Industry between the wage :rates
paid to skilled workers and those paid for unskilled labor shall be
preserved, it being understood, however, that the hourly earnings of
those employees receiving above the minimum rate, shall not be
reduced thereby.
SEC. 4. On and after the effective date, employers shall not operate
on a schedule of hours of labor in excess of forty (40) hours per w~eek
per employee; provided, however, that because of aPny n~n~seasonal or
peak demand which places a temporary burden on thIdsrytt
the number of hours that may be worked by any employee in ex-cess
of that provided in the preceding paragraph shall not be mnoret than
forty-eight (48) in any calendar six (6) months' period, and provided,
further, that in no case shall the number of hours work by anyb

further, that in cases of emergency, breakdowns, or in very special
cases where restrictions of hours of highly skilled workers would


unavoidably reduce or delay production, overtime shall be permitted
beyond those hours specified mn this Article IV and such overtime shall
be paid for at the rate of time and one half, and provided, further,
repair-work, mraintenzance employees, firemren, and engineers may be
employed ten percent (10%o) longer hours than other employees. They
may, however, w'ork additional hours beyond the ten percent (10%/)
longer hours specified inr hi paragraphel, provided such additional
hours beyond the ten percent (10%0) allowed shall be paid for at the
rate of one and one half, and provPided, further, that watchmzen may
work fifty-six (56) hours in. any seven (7) days' period, without pay-
ment of overtime, but not more than six (6) out of an1y seven (7) days.
The Inldustryr recognizes thne desirability of the eight (8) hour
working day for labor and, insofar as it reasonably can, will endeavor
to employ its labor on. thaat basis.
No employee shall be regularly employed more than six (6) out
of sevenz (7) days.
NSo employee shall kno~winzgly be permitted to work for one (1) or
more employers in the aggregate in excess of the above-prescribed
number of hours.
No employer shall reclnssify7 employee esg for dties ourocpatons
performed or engage mn any other sutrgeorteppsef
defeating the purposes or provisions of the Act or of this Code.
No provision herein shall supersede any State or Federal Law
which Imaposes on employers more stringent requirements as to agef\llo elra okn odtos

than are impposed by this Code.
SEc. 5. Nothing in the foregoing provisions with reference to
hours shall apply to Executive, Adm~inist~rative, Supervisoryv and
Technical employees who receive at the rat.e of Thirty-five (835.00)
Dollars or more per wIeek, and outside salesmen.
Such of the provisions of this Code as are not required to be included
therein. by the Act may, with the approval of the President, be modi-
fied, amended, or eliminated as changes in. circumstances or experience
may indicate. It is contemplated that from time to time, and with
the approval of a majority of the Code Authority, amendments and
supplementary provisions to this Code or additional Codes may be
submitted for the approval of th~e President to prevent unfair competi-
tion in price and other unfair and destructive competitive practices
and to e~ffectuate the other purposes and policies of Title I of the Act.
Pursuanzt to subsection (b) of Section 10 of Title I of the Act, the Presi-
dent may from time to time cancel or modify any order, approval,
license, rule, or regulation issued under said Title.
SECTION 1. To accomlplish the purposes contemplated by the Act,
the following practices are thereby declared to be ""unfair methods of
competition ":
(1) Cost Accounting.--To sell or offer to sell anyT products) or
services) below the cost of such products) or servicess.
For this purpose, cost is defined as the cost of direct labor, plus the
cost of materials, plus a normally adequate amount of overhead,


fairly spread over all articles of manufacturere, including an amount
for the use of any plant facilities employed, as determined by cost
accounting methods recognized in the Industry (such cost. accounting
methods to be approved by the Code Alt~hority and the Administr~ator).
(2) Rebates, Subsidies, Commlissions, Etc.--To secretly mnake any
allowance of rebates, credits, subsidies, discounts, commiissions, or
like concessions, whether in the form of money or othlerwise, not given
to a~ll customers of the same class or to change an order for the! purpose
of giving a customer any advantage.
(3) Alloca nces--Preferences, Etc.--To mlakle alIlowances for m achin-
ing and/or welding (except to repair specific defective castings),
pattern repairs, pattern construction, pat.t-ern insurance, or other
services not extended t~o all buyers. under like terms anld conditions.
(4) Com~mercial br~ibery/.-No member of the Inldust~ry shall give,
permit to be given, or directly offer to give, anything of value for the
puirnpos of influenrncin or rewarding the action of any- emllployee,
agent., or representative of another in relation to t~he business of the
employer of such employee, the principal of such agent, or the repre-
sented party, without t~he knowledge of such employer, principal, or
party. Commercial-bribery provTisions shall not be construed to
prohibit free and general distribution of articles commonly used for
advertising except so far as such articles are actully~ used for
commercial bribery as hereina~bovte defined.
(5) Defamataion.-To make, cause, or permit to be made or pub-
lished, any false statement or mlisrepresent nation of, or concerning the
business, policies, methods, or products of a competitor.
(6) Terml~s.--To make terms more fav-orable than a cash discount of
one percent (1%), or in any event to permit cash discounts for payT-
ments made beyond thirty (30) days from the date of shipment.
(7) A~ssumiing Iresponsibillity for losses.r-To assume responsibility
(except. to repair a specific defective casting) for machine work;,
welding, labor charges, or losses or damages caused in any manner
by defective
(8) InterferePnce wcith C~onttractual Relationts.-o a member of the
Industry to attempt to induce the breach of an existing contract
betw-een a competitor and his emlployee, or customer, or source of
supply; or interfere with or obstruct t~he performance of such con-
tra~ctual duties or services.


N~o provision of this Code relating; t~o prices or terms of selling,
sihippi ng or~ mar AkePt~i n (shal apply to gray-irIon c as things shipped directly
by a member of t~he Industry for Export Trade; provided, however,
that th~e provisions of Article IY- shall apply to grayp-iron, casting
shipped for Export Trade.

Violations byv any member of the Industry of any provisions of
this Code, or of any rule or regulation issued thereunder, and approved
by the Pre~sident, shall constitute an unfair method of competition,
and the offender shall be subject to the penalties imposed by the Act.


All employers shall post thze hours and wages provisions of this
Code in conspicuous places, necessible to employees, and in such form
as shall be prescribed by the Code Authority.

All action taken by the Code Authority, or ang other agency,
within the Inzdustry in. connection. with the Admimnstration of this
Code, except where made specifically subject to the approval. of th
Administrator, shall be subject to review and disapproval by the

This Code shall be effective the second M~onday after the fourth
day following the date~ on which this Code shall have been approved
by the President of the UCnitecd States, and shall continue m effect
until June! 16thn, 1935, or the eanrliest date prior thereto on which the
3President shall, by proclamation, or that Congre~ss shall, by Joint
Resolution, declare that the emergency recognized by Section 1 olf the
Act has ended.
Approved Code No. 277.
Registry No. 1111-04.

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