NATIONAL RECOVERY ADMINISTRATION
CO(DE OF FAIR C OMPE TITI ON
~DROP FORGING INDUSTRY
glo esle byJ the Superintendent of Doculments, W~ahlagton, D.C. - PRice 5 cente
Approved Code No. 423
Registry No. 1110--02
AS APPROVED ON MIAY 10, 1934
WE DO OUR
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U. S. sEP~'4';.C~ZF ~' s
GOVERNMENT PRINTING OFFICE
This publication is for sale by the Superintendent of Documents, Government
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Approved Code No. 423
CODE OF FAIR COMPETITION
DROP FORGING INDUSTRY
As Approved on May 10, 19343
APPROVING CODE OF FAIR COMPETITION FOR THE DROP
An applicat~ion having been duly made pursuant to and in- full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Comp~et~ition for the Drop For~ging Industry, and hearings
having been duly held t~her~eon and the annexred report on said Code,
containing findmgs with respect thereto, having been made and
directed to the President:
NOW, THEREF;ORE, on behalf of thle President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recoviery,
pursuant t~o authority rested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do find that said Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do thereby order that said
Code of Fair Competition be and it is hereby approved; provided,
however, that the words ninety-six (96) hours as contained in
Section 2 (d) of Article III be deleted and the words "L seventy-two
(72) hours be substituted therefore; provided further, that Section
3 of Article IX be deleted; providedl further, that the provisions
of Section 4 of Article VII, insofar as they prescribe a waiting
period between the filing with the Code Authority and the effective
date of revised price lists or revised terms and conditions of sale
be and they are hlereby stayed pending my further Order either
within a period of sixty (60)f darys from, the effective date of this
Code or after the completion of a study of open price associations
now being conducted by the National Recovery Administration; and
provided further, that the continued participation of the American
Drop Forging Institute in the Code A~uthorityp after thirty (30)
days from the effectiv-e date of this Code shall be contingent upon
its amending its constitution and by-laws to the~~ satisfaction of the
HUGH S. JoHNsoN,
Ad~miinistrator for Indbustri~al Receovery.
Approval recommended :
A. R. Gr act
Div~isionm A inistrator.
MaCy 10, 1934~.
REPORT TO THE PRESIDENT
The Wth ite House.
Smr: This is a report on the Code of Fair Competition for the
Drop Forging Industry, a Public Hearing having been held thereon
in Wanshington, D.C., on February 1, 19341, in a~ccordan~ce with the
provisions of the National Industrial Recovery Act.
PROVISIONS AS TO HOURS AND WAGES
The Code provides for a 40 hour and 6 day week, except as
herein specified below~:
Those employedt in an executive, supervisory or admiinistrative
capacity or their immediate assistants, and salaried technical men
and fieldt service engineers, all of whlom are being paid at thle rate
of $E35.00 or more per weeki, and outside salesmen;
Watchmen, provided their hours shall not exceed 56 per week,
and plant engineers and firemen, provided they shall not be per-
mit~ted to work in excess of 45 hours p~er week, and further provided
that all three classes shall be given one day of rest in seven;
Those engaged when a seasonal or peak demand period exists, or
when the re~quiremlents of a continuous process, or breakdlown, or
emergency plaee an uniusrual temporary burden on t~he Industry or
when restriction of hours of skilled workers would unavoidably delay
other p~rodcuctive workers, provided that the hours worked per man
per week shiall not, exceed 48, and that t~he number of hours worked
in exess~ of a~llowable hours in any 6 months period shall not exceed
96 (this period has been lim~itedl to 72 hours in the Administrative
Die and tool maklers, hammner crews and maintenance men, who
may work beyondl the mnaximium hours when additional highly skilled
workers are not available, andt when restriction of their hours would
unavoidably reduce the hours of other productive workers, pro-
viding time and onie-half shall be paidl for overtime.
The Indlustry recogruzes the desirabilityS of the 8 hour day and
in so far as it reasonably can will endeavor to employ its labor on
The Code etatblishes a 40 cent minimum rate with the exception of
the following States in which the minimum is 32 cents: North Caro-
lina, South Carolina, Georgia, Florida, Alabama, M~ississippi! Louisi-
ana, Arkansas, and Tennessee.
Persons emnployedl in clerical, office, engineering sales (except out-
side salesmen), or delivery workr shall not be paid less than at the
rate of $15.00 per week.
Apprentices may be paid a starting rate of 80%0 of the rate of a
competently skilled mechanic, provided he shall not be paid less than
24 cents per hour and provided that the ratio of new apprentices to
skiled mechanics shall not be more than one to five. They shall be
advanced at regular intervals.
The standard clauses regarding equitable adjustments, employees
of limited capacity and females performing the same labor as males
are embodied in this Code, as well as the standard general labor
This Industry has been keenly affected by the depression. Esti-
mated annual sales declined from $;98,763,000. in 1929 to $15,44~6,000.
in 1932 or 84%. Based on returns from National Recovery Admin-
iptration questionnaires, sales in 1933 amounted to $19,382,000, an
increase of 25%0 over the previous year. The following table demon-
strates clearly the trend of the Indlustry from 1929 through 1933 as
to invested capital, production capacity and annual sales:
TASBLE I.--lH1l'Cted capital, pr-odurction capacity andr anlutal sales, 1928-1988
Col. 1 Col. 2 Col. 3 Col. 4
YearIna~ d er uion Annual sales,l Andua sales,
1s92..~~___._._..__..__._.~................. $57. 097 $130. 523 $98, 763 $94, 473
1930.............~~~-~---~................... 58, 810 133, 803 55. 588 .......
1931_______._._~~_.__._..................... 51. 533 129, 588 27, 231 .......
1932_. _~_____.__.~ ~_.~._.................... 46, 836 120, 660 15, 446 15. 554
1933_ ______.__~._.__._...................... 44, 195 116, 688 I 8, 460 10, 382
r Source: Code application.
r Questionnaire returns sent out by National Recovery Administration: 71 concerns reporting 1920; 70
concerns report i g 1932 and 1933.
i 6 months; estimated for 12 months; $16,920,000.
In 1929 there were approximately 16,425 persons employed, of
which 95.3%0 were factory wsorkrs. T1he decline in factory employ-
ment has been drastic, dwindling from 15,653 in 1929 to a low of
3866 or 75%b in the fourth quarter of 1932. This total subsequently
was increased to 7091 in the fourth, quarter of 1933.
The estimated number of man-houlrs declined from 738,822 in 1929
to 114,4134 in thle fourth quarter of 1932, and increased to 253,843 in
the third quarter of 193;3. As average hours worked in November
1933 were 32.4 per week, an increase in employment under this Code
will depend almost entirely on improvement in1 productive activity.
If production should increase to a point where man-hour reqluire-
ments would reach 400,000, approximately 10,000 workers would be
employed, or 63.9%0 of the 1919 wForking level.
The Assistant Deputy Administrator in his final report to me on
said Codle having found as herein set forthz and on the basis of all
the proceedings in this matter:
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Indust~rial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminishl the amount thereof and will pro-
vide for the general welfare by promoting the organization of Indus-
try for the purpose of cooperative action among the trade groups, by
indlucingr and maintaining united action of labor and management
under adequate governmnental sanctions and supervision, by elimi-
nating unfair competitive practices, by promoting the fullest utiliza-
tion of the present productive capacity of industries, by avoiding
undue restriction of production (except as may be temporarily re-
quired), by increasing the consumption of industrial and agricul-
tural products thr11ough~ increasing purchasing power, by reducing
an re( Plieving 1l~l unemloyvmenlt, b i mprroi ngr standards of labor, and
by otherwise rehabilitating Industry.
(b) Said Indulstry normally employs not more than 50,000 em-
ployees; and is not clnssified by mue as a major Industry.
(c) The C'ode as ap~proved complies in all respects with thle per-
tinent provisions of said Title of said Act., including without limit-
tationn Mubsction (a) of Section 3, Subsection (a) of Section 7, and
Subsection !b) of Section 10 thereof; and that the applicant group
is an industrial group truly representative of the aforesaid Industry;
and that said group imposes no inequlitablee restrictions on admission
t~o membe~trship therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
For these reasons, therefore, I have approved this Code; provided,
however, thiat the words ninety-six (96) hours as contained in
Section 2 (d`) of Article III be deleted and the words "' sevent~y-two
(72) hours "' be substituted therefore; provided further, that Section
3 fArticle IX be deleted; provided further, that the provisions of
Section 4 of Article VII, insofar as they prescribe a waiting period
between the filing with the Code Authorit~y and the effective date of
revised price lists or revised terms and conditions of sale be stayed
pending my further Order either within a period of sixtyv (60) days
from the effective date of this Code or after the completion of a
study of open price associations now being conducted by the Na-
tional Recovery Administration; and provided further, that the
continued participation of the American Drop Forginrr Institute
in the Code Authority after thirty (30) days from the e fective date
of this Clode shall be contingent upon its amlending its constitution
and by-laws to the satisfaction of the Administrator.
HUGH S. JoHNson,
MSaY 10, 1934.
CODE OF F~AIR COMPETITION FOR THE3 DROP FORGING)
To effectuate the policies of Title I of the National Industrial Re-i
cover Act, the following provisions are establishedl as a Code of
Fair Competition for the Drop Fori~ng~ Industry, and shall be the
standard of fair competition for such Industry, and shall be binding
upon every member thereof.
The term Drop Forging Industry as used herein includes per
sons actively engaged in the manufacture for sale of articles prop-
erly ~classified as drop forgings.
Teterm "L drop forging as used herein includes t~he basic cleaned,
trimmed, and sized metal article (except when made from aluminum
or copper base metals), initially formed by placing and working hot
metal in a plastic but solid state between reciprocating die impres-
sions, forms or cavities in closed dies, and includes such above-de-
scribed articles made according to user's specifications prepared
either withi or without subsequent dissimlilar operations such as fin-
ish grinding or machining, except when stocked and catalogued for
general sale by the maker.
The term L member of the Industry includes all those engaged
in the Industry either as an employer or on his or its own behalf
other than as an employee. For the purposes of this Code a corporaz-
tion and its subsidiaries and also concerns which in effect are under
practically the same ownership shall be regarded as one person.
The term "L Institute as used herein, refers to the American Drop
The words neutral agency shall refer to the neutral agency
specified in Section 7 of Article VI.
The term "' person as used herein includes an individuual, firm,
association, corporation, trust, trustee, or receiver.
The term employer as used herein, means any person engaged
in the Industry as an employer.
The term "' employee as used herein means anyone enggdi h
Industry in any capacity receiving compensation forhsercs
irrespective of the nature or method of payment of such, com-
The term apprentice as used herein shall mean an, employee
who is regularly engaged in learning a trade under a course of train-
ing designed to advance him systematically in the various operations
of such trade to become a competently skiilled mechanic.
The terms President ", "A~ct ", and "LAdministrator as used2
herein shall mean respectively the President of the United States,
rTitle I of t~he National Industrial Recovery Act, and the Adminis-
trator for Industrial Recovery.
Population for the purposes of this Code shall be determined by
reference to the 1930 Federal Censuis.
ARTICLE III TYORKING HOURS
SECTION 1. No employee shall be permitted to work in excess of
forty (40) hours in any one week or more than six (6) days in any
seven (7) day period, except as otherwise expressly provided in this
SECTION 2. (a) The provisions of this Article III shall not, apply
to executives, those employed in a supervisory or administrative
capacity or their immediate assistants, and salaried technical men
and field service engineers being paid at the rate of ThirtyI-five
Dollars ($~35.00) or more pler week; and
(b) Outside salesmen; and
(c) WTatchmen, plant engineers and firemen, provided, however,
that watchmlen shall not be permitted to work in excess of fifty-six
"(56) hours per week and plant engineers and firemen shall not be
permitted to work in excess of forty-five (45) hours per week and
both watchmen, plant engineers and firemen shall have at least one
()day off in seven (7i).
(d) The foregoing limitations shall not apply when seasonal or
peak demannds, or the reqluiremlents of a continuous process, or break-
dlown, or emergency, place an unusual andl temporary burden on the
Industry or when restriction of hours of skilled workers woulld un-
avoidably dlelay other productive workers. In any such ense such
number o~f hours may be worked as are required by t~he necessities
of the sitalntion, provided that. in no such case shall t~he hours worked
by any ~or~ker mn any one week exceed forty-eight. (48) and pro-
vided further that the number of hours worked by any worker in
any) six (6) months period, in excess of forty (40) hours per week
(or fifty-six (56) hours for watchmen and forty-five (45) hours
for plant engineers and firemen) shall not. exceed ninety-six (96)
hours. Anyv employer may adopt. for each location such six-month
per"~iod as is most appropriate for the business there conducted.'
(e) Providled further that when additional skilled men are not
avaniflble, die and tool makers, hamlmer crews and~ maintenance men,
at the request of t~he employer, may work additional hours beyond
those specified above in this Art~icle TIII, when restriction of hours
of these higrhly skilled workers would unavoidably reduce the hours
of other productive workers, provided such additional hours shall
be paid for at the rate of time and one-half.
SECTIONK 3. The Industry recognizes the desirability of and accepts
the principle of the eight (8) hour working day for labor and in so
far as it, reasonably can, the Industry will endeavor to employ
its Inbor on that basls.
SECTION 4. No employer shall knowingly permit any employee to
work for any time which, when totaled with that already performed
with another employer or employers exceeds the maximum permitted
1 See paragraph 2 of order approving this Code.
SECTEON 5. Any employer who does the work of ans employee shall
be subject to the provisions of this Code as to hours of labor.
SECTION i. NO employee shall be paidl less than at the rate~ of forty
cents (409) per hour except asi herein otherw~is-e provided and except
that the minimum hourly rate of wages for employees in North. Caro-
lina, South Carolina, G orgia, Floridla, Alabamn, M~ississjippi, Louisi-
ana, Arkansas and Tennessee shall bje thirty-two cents ( 32) per
SECTION 2. No person emnployed inl cler~ical, oilice, engineering, sales
(except outside salesmlen:), or delivery wor~k shall be paid at a rate of
less than fifteen dollars (015.0~) p~er' weeki.
SECTION 3. This article establishes a miinimnum rate of pay which
shall apply, irrespective of whether ani emiployee is actually comn-
pensated on a t~imie rate, piece work, or other basis.
SECTION 4. ApprLentices shall be paid a starting rate of not less
than t~hirty (30)) per cent of the rate paid to a competently skilled
mechanic mn the trade in which the apprentice is being trained and
prevailing in t~he shop where the apprentice is employJed, provided,
however, that the starting rate paid to anyZ apprienitice shall not be
less than twenty-four cents (249) per hour.
Wages paid to apprenti ces shall b~e advanced at intervatls in nliens-
ured amounts so that t~he rate for t~he last period of apprenticeship
shall not be less than eighty~ (80) p~er cent. of the ratfe paid to a
compet~entlyl skilled mlecha~nlc in the particular trade in the shop
where the apprentice is emlployed.
If a~n ap~pr~entice is paid during hours in which he is solely ob-
taining school training, or if an apprentice is paid a bonus at the
end of his apprenticeship, such payments may be credrited in
computing his compensation.
At no time shall a new atpprelt~ice be adlmit~ted to apprenticeship
by any emnployer when such axltion will brling= the total number o
such apprentices so employed t~o a ratio of more than one apprenitice
to five compyetently skilled mlechanie~s employed by such employer
in the particular trade in question.
SAll apprentice Jindentures or written contracts shall be submitted
to t~he Code Authority fcor approval and shall be made available
to the Aldministrator.
SECTION 5. Equitable adjustment of compensation of employee
receivinga more than t~he mninimnum rates of pay herein prescribedshl
be made by all employers who havre not. herretofore made such adl-
justments, and all employers shall within thirty (30) days after
approval of this Code, report. in full to t~he Code .Authority con-
cerning such adjustments whether made prior to or subsequent to
such approval, providedl, however, that in no event shall hourly rates
of pay' be reduced.
SiECTION 6. A )person whIose earnings capacity is limited because of
age, physical or mental handicap, or other infirmiityv, may be em~-
ploy~ed on light wnork- at a w~gre belowf t.he minimum established by a
code, if the employer obtains from the State authority, designated
by' thle U.S. Department of Labor, a certificate authorizing such
person's employment at such wages and for such hours as shall be
stated in the certificate. Such authority shall be guided by sthe
instructions of the U.S. Department of Labor in issuing certified
to such persons. Each employer shall file monthly wi~th the Code
Authority a list of all such persons employed by him, showing the
wFoages paid to, and the maximum hours of work for such employee.
S~ECTION 7. Minimum rates of pay shall not apply to outside
SECTION 8. Female employees- performing substantially the same
work as male employees shall receive thle same rate of pay as male
ARTICLE VT-GENVERAL LABOR PnonIslows
SECTION 1. No individual under sixteen (16) years of age shall be
employed in the'Industry. No individual under eighteen (18) years
of age shall be emnployed in processing the products of the Industry.
An employer shall be deemed to have complied with this Section,
if it shall have a certificate or permit issued by governmental or
municipal authority showing that the employee is of the required
SECntIN 2. As required by Slub-section (a) of Section 7 of the
Act, the following provisions are conditions of this Code:
(a) Employees shall have the right to organize and bargain col-
lectively through representatives of their own choosing, and shall be
free from interference, restraint, or coercion of employers of labor
or their agents in the designation of such representatives or any
self-organization or any other concerted activities for the purpose o
collective bargaaih~ing or other mutual aid or protection.
(b) No employee anrd no one seekiinga employment shall be required
as a condition of employment to join any company union, or to
refrain from jolmlng, organizing, or assisting a labor organization
of his own choosing; and
(c) Employers shall comply wi~th the mlaximum hours of labor,
minimum rates of pay1, and other conditions of employment approved
or prescribed by" th~e President.
S~ctroN. 3. Noemploy~er shall reclassify employees or duties of
occupations performed or, engage in any other subterfuge., for th~e
~"purpose of defeating the purposes or provisions of the Act or of this
SECTION 4. Every employer shall make reasonable provision for the
safety and health of his employees at the place and during the hours
of their employment. Standards for safety and health shall be sub-
mitt.edl byz the Code Authority t~o the Administrator for approval
within sixr months after the effective date of this Code.
SECTION 5. No provrision in this Code shall supersede any laws
within any State which impose more stringent requirements on em-
ployers as to age of employees, wages, hours of wvorkr, or as to safety,
health, or sanitary conditions, or insurance or fire protection, or
general wPorking conditions than are imposed by this Code.
SECTION 6. Within ten (10) days after the effective date of this
Code employers shall post copies of Articles I[II, IV, and V of this
Code in, conspicuous places accessible to employees.
Anacu-L V'I--CODE AvmI~ouRrr P
SEcTrlow 1. The Executive Commiiittee of the Institute shall be the
temporary Code Authority until the next annual meeting of the
Institute at which time a C'ode Aluthoritty, consisting of five members
one each from five geographical districts, shall be ejected by- all
members of the Indlustr~y in the respective geogranphical districts by
vote weighted by volume and class of business. Any member of the
Industry shall b'e eligible to memrber~ship on th~e Cod~e Authority. -The
geographical districts and the voting power of each member of the
Industry andi other matters r~elating to the election of the members
of the Code Authorit~y shall be governed by the By-Lawrs of the Code
Aut.hority,! as drafted by the temporaRry Code Author~ity, provrided2
that such geographical districts, voting power, and other mnattecrs
relating to t~he election of thle Code Author~ity shall not become
effective until approved by thle Adlminist rat~or. E~ach- member of the
Code Authority shall serve for one year or until his successor is
elected and qualifies. Yancancies in the Code Authority shall be filled
by the majority of the reminining members, but the succeeding m~em-
ber must be from the samec geograpihical district as the former
The Admninistrator mayl appoint one to three members without vote
to serve withl the C~ode Aut~horityr, (wirthoout expense to the Industry,
unless the Code Authorityl agrees to pay such expensee, in ~thead
ministration of the Code. Such mem~~-ber~s whien. appoint~ed shall be
given reasonable notice of eachl meeting of the~ Code Authority and
may sit at any meeting thereof.
SECTION 2. Each trade or indlustr~ial association directly or indi-
rectly participating in the selection or activities of the Code Author-
ity shall (1) impose no ineqluitabhle restrictions on membership, and
(2) submit to the Administ rator true copies of its articles of associa-
tion, by-laws, regulations, and any amendments when. made thereto,
together wit~h such other information as to memnber~ship, organiza-
tion alnd activities, as is necessary to effectuate: the pur~pose~s of th~e
SECTION 3. In order that the Code Aut.hor~ity shall at all times be
truly representative of the Industry and in other respects complyr
writ.h~ the provisions of the Act., the Adm~inistra.tor may p~rerscribe such
hearings as he mlay deem proper; and thereafter if he shall find that
the Cod-e Authority is not truly representative or does not in other
respects comply w~ith~ the provisions of the Act, he ~ma~y require, an
appropriate modification in the method of selection of the Code
Authority by t~he members of the Indust~ry.
SECTION 4. Every member of thie Industry shall pay Jto";~,"~, ( the od
Authority his reasonable share of the expensesofamnsrngti
Code by the Code Authority. Such reasonable. share shall be det.er-
mined by the Code Authority and assessed by it against t~he members
of the Industry on the basis of the volume and' class of business of
the various members of the Indus~try.
Failure of any member of the Industry to pay any such assessment
for a period of thirtyv (30) days after the date on which it shall
2 See paragraph 2 of order approving this Code.
become payable shall entitle the Code Authority to deprive such
member of t.he Industry of all participation in the administration
and/or any benefits of the Code, and such member of the Industry
shall continue to be liable for his share of all assessments.
SECTION 5. The Code Authority shall have all powers and duties
conferred upon it by the Code and generally all such other powers
as shall be necessary and proper to enable it fully to administer the
Code and effectuate its purposes.
The Code Authority may delegate from time to time any of its
authorities and duties to persons or committees designated by it. It
shall have power, from time to time, to revoke any eeaino t
authority or duties and to change the personnel of suchaai commites,
provided that nothing contained in this Section (5) shall relieve the
Code Authority of its duties or responsibilities under this Code, and
that such agencies shall at all times be subject to and comply with
the provisions hereof.
The Code Authority, except as otherwise specified, shall act by
a majority vote.
SECTION 6. The Code Authority may make recommendations to
the Administrator for the coordination of the administration of this
Code, with such other codes, if any, as may be related to the
The Code Authority may recommend to the Administrator further
fair trade practice provisions to govern members of the Industry in
their relations with each other or with other industries and may
recommend to the Administrator measures for industrial planning.
SECTION 7. The Code Authority shall have the power to obtain
from members of the Industry all reports, including statistics, as
the Code Authority, subject to the disapproval of the Administrator,
may deem necessary for the administration of this Code. All such
reports and information shall be made to a neutral, confidential
agency to be designated from time to time by the Code Authority.
The neutral agency may makze and distribute composites and aver-
ages, but shall not disclose any individual report except in connec-
tion with an alleged breach of the Code, or except when such report
discloses a violatio~n of the Code. All reports and statistics shall be
in such form and detail as the Code Authority may from~ time to
time determine, subject to the approval of the Administrator.
In addition to the information required to be submitted to the
neutral agency there shall be furnished to the Administrator such
information as is necessary for the purposes recited in Section 3-A
of the Act to such FEederal and State agencies as the Administrator
may designate; nor shall anything in this Code relieve any person
of any existing obligation to furnish reports to Government agencies.
SECTION 8. Nothing contained in this Code shall constitute the
members of the Code Authority partners for any purpose; nor shall
any member of the Code Authority be liable in any manner to anyone
for any act of any other member, officer, agent, or employee of the
Code Author~ity. Nor shall any member of the C~ode Authority
exercising reasonable diligence in the conduct of his duties here-
under, be liable to anyone for any action or omission to act under
this Code, except for his wilful misfeasance or nonfeasance.
SECTION 9. If the A~dministrator shall determine that any action
of a Code Authority or any agency thereof may be unfair or unjust
or contrary to the public interest, the Administrator may' require
that such action be suspended to afford an opportunity for investi-
gation of the merits of such action and further consideration by
such Code Authority or agency pending final acrtiorn which shall not,
be effective unless the Administrator appr~oves or unless he shall fail
to disapprove after thir~ty (30) days' notice to him of intentions to
proceed with such action in its original or modified form.
ARTICLE VTII-COSTS3 A-ND ACCOUsnTNO
SECT*ION 1. The Code Authority shall cause to be for~mulated an
accounting system and methods of cost finding and/or estimating
capable of use by all members of the Industry. After such system
and methods have been formlulated, full details concerning them
shall be made available to all miemlbers as shall full details of all,
changes therein as and when made. Before becoming effective the
cost syVstem and methods of cost finding andt estimating and all
changes thnerein shall be fledl with thle Admrinistrnt~or subject to his
disapproval within thirty (30) days. Thereafter all members shall
determine and estimate costs in accordance therewrithl.
SECTION 2. NO Dmember of the Industry! shall sell or offer to sell
any product of the Industry for less than cost of such member deter-
minedl in acco~rda~nce with the accounting syst~em and mlethodls of cost
finding and est~imatinga prescribed byv the Code Authority, subject
to such restrictions as the Administratoo r mlay deem~ necessary pro-
vided that it shall not. be a violation of this section to sell or offer
to sell forgings below cost. to meet the price of a member of the
Indiustryr whose delivered costs are lower, for forgings of equivalent
character, quality and specifications.
SECTION :3. WChen the Code Authority determinets that an emer-
gency exists in this Industry and that the cause thereof is destrue-
tive price-cutting such as to render ineffective or seriously endanger
the maintenance of the. provisions of this Code, the Code, Authiority
may cause to be determined the lowest r~easonable cost of various
classifications of industry products selected by it, such determiination
to be subject to such notice and hearing as the Admninistrator may
require. The Admninistrator may approve, disapproved, or miodify
the deteirmination. Thereafter, during the period of the emergency,
it shall be an unfair trade practice for any members of the Industry
to sell or offer to sell any' products of the Industry for which the
lowest reasonable cost has been determined at surch prices or upon
such terms or conditions of sale that. the buyer will pay less there-
for than said lowest reasonable cost of such products.
When it appears that conditions have changed the Code Authority,
upon its own initiative or upon the request of any interested party,
shall cause the determination to be reviewed.
SECTION 4. The Code Authiority may~ from time to timne select and
specifyT classifications of products as to which any l itmember of theta nu
Inustry may after notice of such determination tl ihtenu
tral agency a price list prepared by such member of the Industry
showing its current prices as to such classifications of products, but
if such price list is filed more than ten (10) days after such notice,
it shall not be effective until seven (7) business days after fiing.
whc Whenever anynew classification of products is added to those for
whih pic litsmay be filed the Code Authority shall notify all
members of the Industry known to it. The neutral agency shall
immediately send notice of such prices to all members of the In-
dustry known by the neutral agency to be engaged in the manu-
facture of t~he classification of products covered thereby. Revised
price lists may be filed from time to time thereafter with the neutral
agency by any member of the Indlustry to become effective upon the
date specified therein, but such revised price list shall be filed with
the neutral agency at least seven (7) business days in advance of its
effective date unless the Code Authority shall authorize a shorter
period. Similar notice of such revised prices with notice of the ef-
fective date specified shall be immediately sent to all members of
the Industry known by the neutral agency to be manufacturing the
cl~asifiention of prrirouts covered by sucrh changes, any or all of
whom thereupon may file revisions of their respective price lists
as to such classification of products, specifying the effective date
which (if the revised price is not lower than a price then in effect
or whichl has been filed within seven (7) business days), may be the
date when the revised price list first filed shall go into effect. All
price lists in effect shall be available to all interested parties. No
member of the Indlustry may sell, or offer to sell, any forging mn
any such classification of products for less than the lowest price
shown on a price list of such -classification of products which is in
effct and on file with the neutral agency but may sell at the lowest
listed price without regard to cost. However, no member shall
initiate any listed price less than his own costs determined by the
accounting system and cost finding met~hods herein npnreribed. The
Code Authority may specify the form of price lists and the in-
for~mation to be included therein.s
ISECTION 5. The Code Authority shall have power on its own
initiative or on the complaint of any member of the Industry, to
require any member of the Industry against whom complaint has
been made to furnish such information concerning the cost of any
product as the Code Aut~hority shall deem necessary or proper for
SECTION 6. The sale price for the purpose of this Code shall be
the net price after concessions of every character, including cash
SECTION 7. NO Order for fabrication at one setting of the dies in
quantities less than those stated in the contract of sale shall be
accepted without adjusting the price to cover the increased cost of
the smaller quantity.
SECTION 8. A contract by a person in the Industry to manufacture
or fabricate material owned by ~others shall be deemed a contract
of sale in interpreting the provisions of this Code.
SCTION, 9. Whenever,,,1 a,.:,,;:, sale,, reuiesorgialdesan/o sec
tools (i.e., original with or new to the company quoing~r), the dies
and special tools shall be paid for by the purchaser at not less than
the full estimated cost. The charge for new dies shall be in addition
to the die maintenance item included in the cost of forging.
See paragraph 2 of order approving this Code.
AaRTcLE VII I-TRDE PRaCTICE RUL;ES
SacTIow 1. For all purposes of the Code, the acts described :in this
Article shall constitute unfair practicee?. Anry member of the In-
dustry who shall, directly or indirectly, through any offce, employee,
agent or representative, knowingly use, employ or permit to be emn-
ployedl any of such unfair prnetices shall be guilty- of a violation of
RULE 1. Offering inducemeiints to bring about cancelation or reduc-
tion in price or qiuantity in contracts of sale already madc~e with other
persons in the Indlustry.
RULE e. NO member of the Indlustry shall release any person from
all or any portion of a contract for the sale of any products of the
Industry unless the puirchalser pays all unabsorbedl die co ts and
all losis onr material purchaisedl to fill t~he cancelled portion of the
contract, including material wholly or partially fabr~iented.
RULE 3. The making or giving t~o .ny pulrchaser of anly guaranteed
or protection in any forml against decline mn pric~e.
RULE 41. Selling or contracting to sell any product under any
description which does not fully describe it in terms f'ustomarl~lily
used in the Industry.
RULE 5. M~akinlg an. invoice wh~lilh is false or misleading ini anyr
parti cul ar.
RULE ). 1Partakinga 1H Or aiding or abetting in any .manner any
violation of this Codie.
A ARTICLE IX-M--omrIIC:Anow
SECTION 1. This Cfode and all the provisions thereof are expressly
made subject to the right of the President in accordance with Sjub-
section (b) of Section 10 of thne National Industrial Recovery Act
from time to time to enncel or modify any order, approval, license,
rule or regulation issued under Title IY of said Act.
SECTION 2. Thllis Code, except as to provisions required, by the Act,
may be mexl~ified or amended from~ time to time, such modifications
or amendments to be basedr upon application by- the Code A~uthority
to the Administ~rator and such notice and hearing as he shall speclify,
and to become effective on approval of the A~dmninis;;trator.
SECTION 3. No person consenting to this Code shall be held to have
consented to any modification hereof.4
No provision of this Code shall be so applied as to permit monop-
olies or monop~olistie practices or to eliminate, oppress, o~r discrim~i-
nate against small enterprises.
AnaTICIP, XI--EFFECTIV'E DATE AND TERMINATIONN
This Code shall become effective on, the second M~onday after its
approval by the Adlministrator, and shall continue in effect until
Deleted. see paragraph 2 of order approvlug this Code.
UNIVERSITY OF FLORIDA
11IIIl lIIIII11111II ll|1ll IIY II IU I IIIII III ll illll||
gs 3 1262 08856 0593
Julne 15, 1935, unless prior thereto Title I of the Nationelddustral
Recovery Act ceases to be in effect. Such termination sh'all rot
relieve any member of the Industry from the payment of any unpaid
Approved Code No. 423.
Registry No. 1110--02.