NATIONAL RECOVERY ADMINISTRATION
CODE OF FASIR COMPETITION
INaDUSTlRY OF WHOLESALING
PLUMVBIrG' #R~OI~JCTS, HEATING
PRODUCTS, AND/OR DISTRIBUTING
PIPE, FITTINGS, AND VALVES
Approved Code No. 508
Registry No. 1129--3--12
AS APPROVED ON AUGUST 25, 1934
WE DO OUR PART
COVERNMCIENT PRINTING OFFICE
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
This publication is for sale by the Superizntendent of Documents, Government
Printing Office, WTashingrton, D.C., and by district offices of the Bureau of
Foreign and Domestic Comumerce.
DISTRICT OFFICES OF THE DEPARTMCENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingrham, Ala.: 257 Federal Building.
Boston, Manss.: 1801 Custombhouse.
Buffanlo, NT.Y.: Chamber of Com~merce Building.
Charleston, S.C.: Chamber of Commerce Butiding.
Chicago. Ill.: Suite 1706G, 201 North Wells Street.
Clevelandr, Ohio: Chamiber of Commlierce.
Dallas, Tex.: Chamber of Com~merce Buildling.
Detroit, Rlich.: 8;01 First Nationlal Ba-nk Building.
Houston, Tex.: Chamber of Commllerce Building.
Indianapnolis, Ind.: Chamuber of Commle rce Buildling.
Ja~cksonville, F~la.: Chanmber of Commierce Buildingr.
Kinusas City, 310.: 102S Baltjimore Avrenue.
Los Anogeles~. Calif.: 1163 South Broadw~ay.
Louisv'ille, Ky.: 4108 Federal B~uild.ing.
\lemnphis,, Tenn.: 220) Federal Building.
Illinineapolis, Mlinn.: 213 Federal Building.
New Orlenus, La.: Room 225-A, Customhiouse.
New\ Yorkl. N.Y.: 7i34 Customhouse.
N~orfolk, Va.: 400! East Plum~e Street.
Philadlelphiia, Pa.: 422 Comlmer~cil Trus~t Building.
Pittsburgh, Pa.: Chamber of Commerce Buildingr.
Portlandc, Oreg.: 215 NewT Post Office Building.
St. Loui~s, nIlo.: 50r6 Oliv\e Street.
San F~rane'sco, Callif.: 310 Custombouse.
Seattle, Wa'sh.: 809 Federal Offce B3uilding.
Approved Code N~o. 508
CODE OF FAIR COMPETITION
INDUSTRY OF W~HOLESALING PLUMBING PROD-
UCTS, HEATING PRODUCTS AND 'OR DISTRIB-
UTING PIPE, FITTINGS AND VALVES
As Approved on August 25, 1934
APRrovmoG CODE OF FAIR COMPETITION FOR THE INDUSTRY OF ITHOLE-
SALING PLUMBDING PRODUCTS, HEA\TING PRODUCTS AND, OR DIsmRIsUr-
ING PIPE, FITTINGS AND VALVES
An application having been duly made pursuant. to and in full
compliance with the provisions of" the Title I of the Nat~ional Indus-
trial Recovery Act, approvedl June 16, 1933, for approval of a Code
of Fair Competition for thle Industr~y of WVholesaling Pluming;in
Pmiroducts, Heating Producits and/olr Dis~tr~hibting Pipe, Fittings and
Valves, and hearings having been duly held thereon and the annexed
report on said Code, containing findings wFith respect thereto, having
been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of th
President, including Executive Ordler r;o. 65413-A, dated Dec~ember
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do find that said Code complies in all respetss
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act, and do hereby order that said Code
of Fair Competition be and it is hereby approved; pr1ovided that
exemption to the provisions of this Code be and is hereby gYranted~ to
those members of the WVholesale Hardwiare Trade who are comnplying
with the provisions of the Code of Fair Competition for thle WhTole-
saling and Distribut~ing Trade and the Supplemental Code of Fair
Competition for the Wholesale Hardwl~are Trade pending my~ further
order; and provided further, that the provisions of Ar~ticle VIII,
insofar as they prescribe as awaiting period of ten dayse betweenl the
filing with the Code: Authorityv (or such agency as may8! be desigr-
nated in the Code) and the effective date of price lists as origiiinally
filed and.'or revised price lists or revised terms and conditions of
sale, be and theyv hereby are stayed pending my further order.
HowE~ S. JOHNSON,
Admnl.isitractor for' Indu1Strial Recovery.
Approval recommended :
BaRToN W. ManarR ,
Alugcuret 25, 19~3!..
REPORT TO THE PRESIDENT
The Wthite House.
Smn: This is a report on the C~ode of Fair Competition for the
Industry of Wlholesaling Plumbing Products, Heating Products,
and/or Distributing Pipe, Fittings and Valves, a public hearing hav-
ing been conducted thereon in Wlashinigton, D.C., October 3, 1933, in
accordance with the provisions of Title I[ of the National Industrial
The proponents of the Code show representation for 1,011 firms
in ten (10) regional associations out of approximately 1,350 firms in
the Industry~. In 1932 the volume of business amounted to approxi-
mlately $3242,000,000 of which the sponsoring members handled about
$259,000,000, or 83 percent of the volume of sales.
HOUSRS AND WAGES
The Code for this Industry provides for a maximum work weeki of
forty (40 )hours with a limitation of eight (8) hours per day and
six (6) days in each seven (7) day period. Exceptions are allowed
in the cases of executives, and to persons in a managerial capacity
who regularly receive not less than thlirt~y-five (35) dollars per week
and to outside Salesmen. Employees engagedl as WSatchmlen may be
permitted to work fiftyv-six (56) hours per week. The miiinimum rates
of pay per week of forty (40) hours sh~all be in t~he North not less
than $15.00 per week in cities over 500,000 population, $14.50 per
week in Cities of 250,000 to 500,000 and $14.00 per week in any other
place. In the South the rates shall be $1.00 per week lower than the
minimum rates set for thle North.
ECONOMIC EFFECT OF THE CODE
Prior to June 16, 1933, this industry worked on an average of
fifty-fivle (55) hours per week. The adoption of a forty (4l0) hour
standard work week in this industry represents a reduction in
weekly hours of thirty-four (34) percent of the man hours in this
industry. This reduction in basic hours will provide re-employ-
ment for 6,:375 workers or about sixty-one (61) percent of the unemn-
played workers in this industry. The minimum rates of wages
established in the Code represent the same. weekly pay envelopes for
employees for a forty (40) hour week as they formerly received for
a fifty-five (55) hour week in 1933.
The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the proceed-
ings in this matter;
I find that:
(a) Said Code, is well designed to promote the policies and pur-
pouses of Title I of the National Industrial Recovery Act, including
removal of obstrulctions to the free flow of inter-state and foreign
commerce which tend to dliminishi the amount thereof and will pro-
vide for th~e general welfare b~y promoting the organization of indus-
try for the purpose of cooperative action among the trade groups,
by inducing and mlaintainin~g united action of labor and management
under adequate gover~nmentatl sanctions and supervision, by eliminat-
ing ulnfair comnpeti;tive p~n.rctice by promot~ing the fullest possible
utilization of the present. production capacity of Industries, by avoid-
ing undue restriction of production (except as may be temporarily
requiredl), by increasing the consumption of industrial and agricul-
tural prlodlucts thlroughl increasing purchasing power, by reducing
and relieving uinemployment., by impIrovingr standards of labor, and
by ot~herwise rehab~litaRt~ing industry.
(b) Said industry normally employs not more than 50,000 em-
ployees; and2 is not classified by me as a1 major industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (ab) of Se~ction 3, Subsection (a) of Section 7i, and
Subsection (b) of 1Section 10 thereof ; and that the ap~plicant group
is an industrial group truly representative of the aforesaid Indus-
try; and that said grToup imposes no inlequitable restrictions on ad-
mission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) Thie Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against th~em.
(f) Those engaged in other steps of the economic process have not
been dep~rived of the right to be heard prior to approval of said
For these reasons, this Code of Fair Competition for the Industry
of Wholesaling Plumbings Products, Heating Products, and,/or D)is-
tributing Pinpe Fittings4 and Valves has been apmproed
HCCa S. JoHNSON,
A dmin ist~rator.
AvousT 25, 19343.
CODE OF FAIR COMPETITION FOR THE INDUSTRY OFi
W~HOLESALING PLUMBING PRODUCTS. HEATING
PRODUCTS AND/OR DISTRIBUTING PIPE, FITTINGS
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are establishedl as a Code
of Fair Competition for the Industry of Wholesaling Plumnbing~
Products, Heating Products and.'or Distributing Pipe, Fittings and
Valves, and shall be the. standard of fair competition for such Indus-
try and shall be binding upon every member thereof.
SECTION 1. The term Industry of WVholesaling Plumbing Prod-
ucts, Heating Product~s and.-or Distribut~imr Pipe, Fittings and
Valves or Industry ", as used herein, incluie~s the performance of
wholesale functions, such as assemblingr, wvarehousing and buying
from manufacturers the products defin~ed in Sections 2 and 3 hereof,
and the selling, transferring or distributing of such products, either
directly or indirectly, to retailers, institutional, commercial and,-or
industrial users, or to retail divisions, branches or stores for resale
and/or the selling and distributing of pipe, fittinngs and valves, as
defined in Section 4 hereof, but not including sales of pipe? fittings
and valves by Malznufacturer~s.
SECTION 2. Thle term "' Plumbing rdcs" sue een n
cluds Bth ubsLavtores, ink, Wter Closets, Urinals, Showers,
Drinking Fountains, and all other plumbing fixtures with accessory
and comp~lemientury products.
SECTION 3. The term Heating Products ", as used herein, in-
cludes Heating Boilers, Radiators, with accessory and complementary
SECTION 4. The terml Ppe", F~ittings and Valves ", as used
herein, includes Steel, WCrought Iron, Copper, Bruss and other metal
pipes with fittings and valves of like materials for the conveyance
and control of water, steam, gas, air and other liquids, but does not
include oil well tubular pipe.
SECTION 5. The term "' M~ember of t~he Industry ", as used herein
.includes any individual, partnership, corporation, or other form a~
enterprise engaged in the Industry, either as an employer or on his
or its own behalf.
SECTION 6. The term Employee ", as used herein, includes any
and all persons engaged in the Industry, however compensated, ex-
cept a Member of the Industry.
SECTION 7. The terms "' President ", "Act and "A~dministrator ",
as used herein, mean respectively the President of the United States,
Title I of the National Indust~rial Recoveryv Act and t.he Adminis-
trator for Industrial Recovery.
SECTIONN 8. The term "' Joint Nat~ional Committee ", as used herein,
inIcludes t~he t~h irty1 (30) r~epresent~ati ves of the Associ actions present-
ing this Code and the individual members thereof, or as such Com-
mnitte~e may be augmented by the inclusion of representatives of other
Associations and/or m~ember~s of this Industry.
S~EcTION 9. The terml Wholesaler ", as used herein, includes any
M~ember of the Industry whio performs wholesale functions such ats
assemb~ling, wvarehousingr andl buying fromt manufacturers, Plumbing
and,~'or Heating Products as defined in Article II, Sections 2 and 3,
andi whlo maintains at his or its place of business a stock of such
products in such variety and volume as to meet t-he installation re-
quiremecnts, in conformity with the building codes and health regu-
lat~ions of the trading areas mn which he or it operates and whose
major sales aire to Plumbing and Heat~ing Contractors or to Inst~i-
t~utional, Comimercial and Industrial Users.
SECrION 10. The term Jobber "! and,*or '' Distributor ", as used
herein, includes any Memlber of the Industry who buys pipe, fittings
and valves from manufacturers thereof for resale and who maintains
a stock of such products in sufficient quantity and variety to render
SECTION 11. The term '' WIholesaler-Retailer ", as used herein,
includes any M~ember of thle Industry who performs wholesale funo-
tions such as assembling, warehousing a~nd buying from manufac-
tur~ers of Plumbing Products and,/or H~eating Prod~ucts, and who
assigns or sells such products to retail divisions, branches or stores
which thereafter make their major sales to the ultimate consumer.
SECTION 12. The t~er "~lL Plumbinlg Contractor or "L Master
Plumnber ", as used hereinl, is definedl as: Any individual who has
passed a satisfactory examination, where required by law, covering
his technical training and experience in the engineering and manual
aspects of hlis trade, has a license where required, in conformity
with the requirements of the area in whichl he operates, or, in areas
w~here no license is required, is capable of maldng a satisfazctory
installation u~nder either t~he United States Bureau of Stasndards'
Recomlmendled Mliinimum Requiriements for Pliumbing as revised to
Ma~y, 1931", or the ";Plumlbing Code"' approved by the National
Associationi of Mlaster Plumlbers of the United States, Inc., in con-
vention Julne, 1933, or a firm, corporation or other entity organized
for t~he purpose of selling andl installing plumbing: products, any
mlem~ber, oficer, or regular emnployee of which is qualified as above
SECTION 13. 1118 term "Heattng Contractor ", as used herein, isr
definedl as: Any individual, firm or corporation or other form of en-
terprisie which conducts a business as such and who holds itself or
himself out; as qualified by training and experience to install heating,
piping and/or air conditioningT equipment, either in connection wi~th
the sale of such equipment. r independently thereof.
SECTION 14. T 10 term D~stitutiORS@, ~oOmercia~l'nd/or Indue-
trial Users of Plumnbing Produ~cts, as used herein, is defined as:
The United States Govrernment and the agencies thereof, State GovT-
ernments and their political subdivisions, railroads, shipbuilders,
shlip repnfr yardls, and stenmsh~ip companies or anyone wvho pur-
chases Plumb ing Products, on a wholesale qiuantity basis and, who
emiplo!s r~egularly on full time, a pr~operly qualified Mas~ter Plumber,
as def~inled in Section 12 of this Article.
SCECTIOx- 15. (a) The term. Institutional, Commercial and/or
Industrial Users "' of He-ating Produ=l:t, as used herein, is defined as~:
Tkhe United States Government and the agencies thereof, State Gov-
ernments, and~ their political subdivisions, railroads, shipbuilders,
shtip' repair yards, and steamship companies or anyonec who purchases
heating products on a. wholesale quantity basis.
(b) Other classes of purchasers of Heating Products may be so
classifiedl by the Code Authlorit~y, subject to approval by the
Admiini n i trIator.
SECT~IOlN 16. The term Consumer ", as used herlein, is defined as
onre who p~urchases plumbing and/or heating products for its or his
own use and not orthe purpose of resale, except institutional,
rommlercial and/or industrial users, as defined in Sections 14 and 15.
SlernOro 17. The term "L Manufacturer ", as used herein, includes
anyone engaged in the. manufacture of the products of the I[ndustry.
SECTION 1. No employee except. as hereinafter provided, shall be
permitted to work more than eight (8) hours in any one day or more
*than forty (40) hours in anyr one week.
SECTION 2. No W~atchman shall be permitted to work in excess of
fifty-six (56) hours in any one week nor more than six (6) days in
any one week.
SECTION ;3. The provisions of this Article shall not apply to per-
sonls inl a malnageriall or executiv-e capacity who regularly receive
a salary or guaranteed minimum of $35.00 per w~eek or more, or to
SEcTIoN~ 4. In caSe of ne~cessity any employee may be permitted to
work in excess of his maxnimiuml daily and/or weekly hours as speci-
fied in Section 1 of this Alrtcle provided that one. and one-third
(1%5) times his normal rate per hour shall be paid for each hour
work-ed in excess of said maximum daily and/or weeklyl hours. In.
no case, however, shall anly employee be p~erm-itted- to work m~ore thann
eight (8) hours per wTeekI in excess of his maximumr wee~kl~y hours
as sp~ecified~ in. Section 1 of this Arrticle, provided, how\ever, that, this
exception shalll be limlited to not more than twelve (12) weeks in
bEICTION~ 5. Each. EmployIUSer shall, as far as p~racticable~l so adminir-
ister wsork in his chlarg~e as to provide the maximum cocntinuity of
em allymntrl for his personnel.
SECTION2 6. NO employer shall knowingly pr,lmit any employee to
wo~rk for any time which, when addedct to the time spent at work for
another employer or emp~loyers exceedls the maximnum permitted
SECTION ?. NO emp~loyee shall be p~ermit~ted to work; more than six
(6) days in any sceren (7) day period.
s'2003"- 1044-121 ----34----
ARTICLE IV- AES
SECTION 1. The. minimum rates of pay per week of forty (40)
hours shall be as follows ini cities or the population. listed below and
their immediate trade areas:
(a) Over 500,000 p~opulatilon-not less thanr $'15.00 per w-eek.
(b) 250,000 to 500,000 population--not less t'han $14.50) per w-eek.
(c) Less than 250,0300 populaltion--not less than $14.00 p~er week-.
(d) Inr the South at the rate of $1.00 per week: less than the: rates
spein~fied abonve in Pa~nraraplhs (a), (b), and (c). Population for the
purposes of th~lis Code shall be deter~mined by reference to the 1930
Census of the U~nited States. The South shall include the states of
A91lahnama Arizona, Arka;nsas, Flor~ida, Georgia, Kentucky, Loui-
siann, Ai~ssisisippi, New M~exico, North Carolina, South C arolina,
Virginia, Texas, Tennessee and West V~irgainia.
SECTroN 2. No part-time employee, and no employee paidl on an
hourly basis shall be paid less than 400 per hour. Any employee wh~o
woFrkr~s less than the regular full time weekly hours of labor estab-
lished by his emlployer shall be considered a part-time emlployee.
SEenowO 3. (a) Employvees with less than three (3) months' exu-
perience in the trade m~ay be paid at the rate of $1.00 less than the
minimum rates prescribed in Section 1 of this ALrticle IV.
(b) Office boys, delivery boys and messengrer,s; between the ages of
sixteen (16) and eighteen (18) years inclu csive, may be paid at the
rate of $2.00 less per wveekr than the minimum rate prescribed, in
Section 1. of this Article.
(c) Junior employees between the ages of sixteen (16) and eigrht-
een (18) years, a~nd not, in~tclude in the categories EIecified in palra-
gra"ph (b), of this section 3, shall be governed by the provisions of
paragraph (a) of this Section 3.
(d) The total Inum~ber of learners and junior employees as defined
in paragraphs (a), (b) and (c) of this section shall not exceed in
number more than 57'o of the total number of employees of such e~m-
ployer, provided that each employer may employ at least one (1)
learner or junior employTee.
SEcnowN 4. The hourly wage rate or salary of all Emnploy~ees re-
ceiving more than the minrimrum rate or sailar~y herein prescribed
shall b~e equitably adjusted, if such ad~justm~ents have not already
bIeen madce. ~No employee now receivlngr comlpensation at. a rate in
excess of the minimum herein pr~escIfribe shall have hris weekly
comlpensation reduced on account of any redul~ction in weekly hours
of emp'loyme'nt to conform to requirements of Ar~ticle III.
SEGCTION 5. Each employer shall make payment of all wages due
not otherw~ire than ini lawful currency or by negotiable cherlk t~here-
for, payable on temaind. These wTages shall1 be exempt from any
paympntss for pensio~ns, insurance or sick benefits, or another
deduc~tions by thne empll oyer, other than those voluntarily paid by the
wrPage earner, or r~equiredt by law. Wages shllnl be paid at least semi-
monthly, and salaries shall be paid at least monthly. No employer
shall necept any rebate directly or indirectly on such wages or
SETION- 6. A person0' whose earning capacityg is limited because of
age or physical or mental handiicap ma~y be empnloyed in light wor'k
at a wage below the minimum established by this Code if the em-
ployer obtains from~ the State Authority d~esig~nated by thle Unlited
States Dep~artment of Labor a certificate authorizing his emnploy-
ment at such wnages and for such hours as shall be statell in the
certificate. Such authority shall be guided by thre instru~ctionls of
thne U~nited States D~epartment of Labor in issuing certificates to such
Each employer shall. file monthly with the Code Author~ity a list;
of all such per~sols: emlpl~y~ed byT hlim showing the wag~res paid to, and
the mlaximum hours of wtork for such employee.
AnnTCLE VT-GEN.ERAL LAB30n PRUvISI(ows
SECTION 1. No 1person under sixteen (16) years of age shall be
employed in the Industry. No person under eighteen (18) year's
of age~ shall be employed at operations or occupa~tio~ns which are
hazardous in nature or dalngerous to health. Thne Code Autholr:lity
shall submit to the Administrator within 30 days after the effective
date of this Code a list of such operations or occupations. In any
State an Employer shall be dleemed to have complied with this pro-
vFision if he shall have on file a cer~tificate or permit duly issued by
the authority in such State empowered to issue employment or age
certificates or permits showing that the Employee is one of the
re uired age.
1 ECTION 2. (a) Employees shall have the right to organize and
bargain collectively through representatives of their ownr choosing
a~nd shall be free from the interference, restraint or coercion of Em-
ployers of labor or -their agents in- the designation of such repre-
sent~atives or in. self-organization or in other concerted activities for
the purpose of collective bargaining or other mutual aid or pro-
(b) No emnployee and no one seeking employment shall be re-
qluired, as a condition of employment, to join anyT com any umlon
or to reframn from jomning, organizing, or assisting a 1 bor orgami-
zation of his owPn. choosing.
(c) Employ~ers shall comply w~ith the maximum hours of labor,
mimmumn rates of pay, and other conditions of employment, approved
or pIrescribed~ by the Preside~nt.
SECTION 3. Every Mfemb~er of the Industry shall comply with all
rules anrd regulations relative to the posting of provisions of th~is
Cole. which may from time to time be prescribed by the Adminis-
SECTION 4. Employers shall not reclassify Empiloyees or duties or
occupations performed by Emlployees or engage in any other subter-
fuge so as to dlefealt the purpose of the Act or the provisions of this
rSEems~ 5. Ever~y Emlployer shall provPide for the sa fety and hlealthf
of his Emp~loyees at the place and du~ringl the hours of their em~ploy-
m~ent. Standard~cs for safety and health shall be submitted by the
Code Authority to the Administrator for appr~oval w7ith~in sixr (6)
months after th~e effective~ date of this Code.
*SECTIONT 6. No~ employee shall be dismissed or demouted by reason
o~f mak~ing a comrplaint or giving evidence with respc~t to an alleged
violation of this Code.
SECTION 7. Nlo provisions in this Code shl~ll supersede any law
wiithin any Sta~te which impo~cses mo~re str~inge~nt re~quirement~ s on
Employers3'''' as to age of Emlol~cyees, wages~c, hocurs of workl, or as to
Safety, health, sanitary or general w\orking!, condtitionc, or insurance.
or fire prctecitionl than are imlposed~c by this Code.
Seentrlx 8. Thiere may be etab~n~lishled by the~ Admlinisten;tor an In-
dustrial Reclationsl Board for the Indtudry cons~istingr of an equal
number of r~epresentativesu of emp~loyer~s andl employees to deal with
all ma~tters~ inl the C~odei relating to Inbu;r. Whercie a maijor~ity noree-
mlent cannot b;;Ie rea~chd, the Boa.1;rdl shall elect, anI imparclltial chairman
to rendelir a decision. I~f no truly representative\ e labor organization
exists, the employee mremnbers of such Board sh~all be chosen by thle
Labor Advisory Board of the NationnI Recov-ery Administration.
The emp'loyer representatives shall boe chosen by the Code A~uthorit~y.
,The Industrial Relations Boar~d may establish such subsidiary agen-
cies cons~tituited in likre manner as it finds necessarry.
AtRTCLE VI ADTINISTRATION
ORGANIZATION, POWERIS AND DUTIES OF THE CODE ATYPHORITY
SECTION 1. A Code Authority- is hereby constituted to administer
this Code and shall consists of thirteen (13) members, which number
2nay be enlarged or decr1easedi with the approval of t~he Admninis-
trator, to be elected as hereinafter provided and in addition ther~eto
there may be three (3) members, without v.ote, to be known as Ad-
2ninistrative M~embers, to be appointed by the Admninistratorr to serve
for such terms as he m~ay specify.
SECTION 2. (a) Until the election of the Code Authority, as here-
inafter provided, there shall be a temporaryr Code Aut~hority, con-
sistinga of ten. (10). mlember~s, who shall bet elected by the Joint Na-
tional Commlittee withini tenl (10) days after the effective dlate of this
Code anld in addition ther~eto there mlay be ap~pointed byv the Admnin-
istrator four (4) members who shall be nblembers of thle Industry
and who shall not be membler~s of any associattion rep~resented on thle
Joint NI~ational Commnittee, providedt however that. tw~o (2) of such
appo~int~edl members1 shall be WCholesatler-Retailers; andc~ (1) shatll be a
Jobber anld/orr Distr~ibutor and one (1) shall be a W'holesaler, and
there may b-e appointed thereto thle Admlinistrativee M~embers as pro-
v~idedl for thle Codeu Authority in Section 1.
(b) WiTrthin sixty (60) days after thle etfect.ive date of this Code,
the Code Authority shall be elec~ted1 by the Mem~lber~s of the Indlustry
at an e~lec~tio-n conducted pursuant to a plan to be sulbmitted by the
temlporary'\ Code Aiuthorityv to the Admninistrator for his approval.
The: planr andl mthrlod of th~is election shall be submnitted to tihe Ad~-
ministrator by th-e temporaryl~ Code author~ity within thir~ty (30)
days after thle apprloval1 of this Code. Such plan shall provide for
equlitabl>e rlepresel~ntaion of Whlolesclers, W~holesa ler-Rtetailers~, and
Jobbercis and1 or D~istribuitors.
SeemsCI 3. Thle Cod~e ALuthfor~ity, subject to thle apprioval of the
Admirnisit rator, shall hav \e power to divide and, i f necessary, to subJ-
d!rivIde, thle Untited States into su!ch zones, dlistr~ic~ts und.-~or local areas
as, in its jud~gment, will best, facilitate thle administration of this
Codle and, further, shall have power to establish and appoint subordi-
nate Regional Code Clommittees for each zone, district or local area
and to delegate to such subordinate Regional Code Commnitteesa anly
of the powers, duties, and.*l'or functions reposed in t~he Code Aulthor-
itg by this Code. Such Regional Code Comm~ittees shall render their
minutes and reports of each of their activities to the Code Authority
for its review and any action of a Regional Code Commuittee shall be
subject to the approval of t~he Code Aultho~ity. All records and
minutes submitted by such Regional Code Committee shall becomea
a part of the permanent records of the Code Authority. Each
Regional Code Comimittee may establish uniform credlit terms, sub-
ject to the approval of t~he Code A~uthorityl~ and thle A~dminis.trator.
SETI~ON 4. In order that the Code Aut~hority shall at all times be
truly representative of the Industry and in other r~espects comply
w~ith thle provisions of the Act, the Administrator mayg provide such
hearings as he may deem proper; and thereafter, if he shall find that
the Code Authority is not t-ruly representative or does not in other
respects comply with the provisions of the Act, mnay require anl ap-
Propriate modification in the method of selection of thie Code
SECTION 5. Nothing contained in this~L Code shall constitute the
mnember~s of the Code A-uthority partners for any purpose. Nuor shall
any member of the Code Authority be liable in any manner to anyone
for any act of any other memnber, officer, agent or employee of the
Code Authority. Nor shall any member of thle Code Authority,
exercising reasonable diligence in the conduct of his duties here-
under, be liable to anyone for any action or om~issioni to act~ under
this Code, except. for his own wilful malfeasance or non-feasance.
SECTION 6. Subject to such rules and regulations as mayu be issued
by the Admninisitrator, thle Code Authlority shall have the following
powers and duties in addition to those authorized by other provisions
of this Code:
(a) To insure the execution of the provisions of this Code and to
provide for the compliance of the Industry with the provisions of
(b) To adopt byv-laws and rules and regulat~ions for its procedure.
(c) To obtain from M~embers of the Industry such information
and reports as are required for the administration of the. Code. In
addition to information required to be. submitted to the Code Au-
thority, M~embers of the Industry subject to this Code shall furnish
suich statistical information as the Admuinistrator mlay deemr necessary
for the purposes recited in Section 3 (a) of the Act to such Federal
and State agencies as he may designate; provided that nothing in
this Code shall relieve any Me~mber of the Industry of anly existing
obligations to furnish reports to any Governmnent agency. No indi-
iiidual report shall be disclosed to any other MSem~ber of t~he Industry
or any other party except to such other Governmental agencies as
may be directed by the Aidminist~rator. Nothing herein shall be con-
strued to prohibit the publication of general summaries compiled
from such reports.
(d) To use such trade associations and other agencies including
the Regional Code Committe~es as it deems proper for the carrymig
out of any of its activities provided for herein, provided that noth-
ing herein shall relieve the Code Authority of its duties or respon-
sibilities under this Code and that such trade associations and
agencies shall at all times be subject to and comply with the provi-
(e) To makre recommendations to the Administrator for the co-
ordination of the administration of this Code with such other Codes,
if a~ny, as may be related to or affect M1embers of the Industry.
(f) It being found necessary to support the Administration of
this Code and to maintain the standards of fair competition estab-
lished hereunder, and to effectuate the policy of the Act, the Code
Authority is authorized:
(1) To incur such reasonable obligations as are necessary and
prper for the foregoing purposes and to meet such obligations out of
fnds which may be raised as hereinafter provided and which shall
be held in trust for the purposes of the Code:
(2) To submit to the A-dminist~rator for his approval, subject to
such notice and opportunity to be heard as he may deem necessary
(a) ain itemizedl budget of its estimated expenses for the foregoing
purposes, and (b) an equitable basis upon which the funds necessary
to support such budget shall be contributed by M~embers of the
(3) Ahter such budget and basis of contribution have been ap-
proved by the Admlinistrator, to determine and obtain equitable con-
tributions as above set forth by all Miembers of the Indu~stry, end to
that end, if necessary, to institute legal proceedings therfr in its
(4) (a) Each member of the Industry shall pay his or its equi-
table contribution to the expenses of the maintenance of the Code
Authority~, determined as hereinabove provided, and subject to rules
and regulations nprtaijningr thereto issued by the. Administrator.
Only members of the Industry complyving with the Code and con-
tributing to the expenses of its administration as hereinabove pro-
vided (unless duly exempted from making such contribution), shall
be entitled to participate in the selection of members of the Code
Aut~horityr or to receive the benefits of any of its voluntary activities
or to make ulse of any emblem or insignia of the National Recotery
(4) (b) The Codle Authority shall neither incur nor pay any obli-
gation in excess of t~he amount thereof as estimated in its approved
budget, except upon approval of t.he Administrator first obtained;
and no subsequent budget shall contain any deficiency item for ex-
penditures in excess of prior budget estimates except those which the
Administrator shall have so approved.
(g) To recommend t~o the Administrator any action or measures
deemed advisable, including further fair trade practice provisions to
govern M'embers of the Industry in their relations with each other
or with other industries, measures for industrial planning, a.nd sta-
bilization of employment; and including modifications of this Code
which shall become effective as part hereof upon approval by the
Administrator after such notice and hearing as he may specify.
(h) To appoint a Trade Practice Committee which shall meet
with the Trade Pract~ice Commlittees appointed under such other
Codes as may be related to thle Industry for the purpose of formu-
latinga fair trade practices to govern the relationships between em-
players under this Code and under such other codes to the end that
such fair trade practices may be proposed to the Admlinistrator as
amendments to this Code and such other codes.
(i) T'o provide appropriate facilities for arbitration, and subject
to thle approval of the Administrator, to prescribe rules of procedure
and rules to effect compliance with awalrds and determlinations.
SEoTION 7. If thle Adm~inistrator s!ill determine that any action of
the Code Authority or of any Regiional C'ode Crommiittee or any
agency thereof may be unfair or unjust or contrary to the public
interest, the Administrator mnay require that such action be sus-
pended to afford an opportunity for~ inv~estigation of the merits of
such action and further consideration b~y the C'ode Authority or
agency pending final action, whichl shall not be et~Fectiv~e unless the
Administrator approves or unless he shall fail to disapprove after
thirty (30) days' notice to himr of initention to proceed with such
action in its original or modified form.
SECTION 8. Ell707970yT&nt Reports.--(a) Each Employer in. this
Industry shall furnish, to a Confidential agenlt of the Code Aluthor-
ity,, when required by the Codle Auth~ority, on forms to be furnished
by said Code Authorityr, a sworn report of the number of persons
employed, wnge rates in effect, aind hours~ worked in hiis plant or
plants, classified by occupations, together with such other swor~n
employment reports as the Code Authiority may require fromt time
(b) Individual reports shanll not be available to anyone except
the Administrator and thie representativ-es of the Code Authority
(who shall not be in the employ of any 1\emnber of this Indust~ry);
provided, however, that in thle event of a complaint, thle Code
Authority maay require all information pertinent to such complaint.
Total figures comipiled f~rom such reports shall be available to
MIembers of the Industry.
ARTICLE VII--TRADE PunBCTICES
The following p1ractices constitute unifair miethodls of competition
for Mfemler~s of the Inlust~ry and1 are prlohlib.ited:
SECTION 1 (Discrimlination) ---Diserimlinatinga in prices, terms, dis-
cou nts, allow-ances, guarIan tees, or in an1y mother way, between
purchasers of the same class, who purchase in like luanftity.
SECTON 2 (Split Shipments).--Except for a specific building
operation, delivering onlyr portions of orders taken at a quantityv
price with the intent, or having the eif~ect of violating published
SacrxoN 3 (Delivery Chargaes).-WSthere the puiblished price pro-
vides for an extra charge for~ parLpelpost, curtage, or other transpor-
tation, failing to mnake such charge.
SSc'rrow 4 (Re~bates).--Paying or allowing rebates, refunds, coml-
missions, credits, unearned discounts, whether in thle formn of mnonsy
or otherwise, or extending to certain purchasers special prices, ser~v-
ices, or privileges not extended to all purchasers of the same class
on like terms and condlitions~.
SFMono 5 (FiCtitiousB Datingn or Invoicing) .--Post-dating or pre-
dating of quotations, orders, Invoi'es, statements or other sales
documents; making fictitious quotations or invoices, or the entering
of fictitious orders.
SECTION 6 (Inducing Breach of Contract).--Inducing or attempt-
ing to induce the breach of a contract between a competitor and his
customer during the terms of such contract; provided, however, that
nothing in this rule shall prevent a Member of the Industry who
has quoted on the material involved from calling to the attention
of t~he purchaser, even though the order has been placed and
accepted, that the list of materials for which the order has jbeen
placed does not conform in size, quantity or quality to the mate-
ria~ls on which the quotations were solicited.
SECTION 7 (Repudiation of Contracts) .-Repuudiating or attempt-
ing t~o cancel accepted orders, except for legal cause or by mutual
consent for the purpose or with the effect of avoiding the provisions
of Article VIII, Section 2.
SECTION 8 (Lump Sum Bidding).--Quoting a total price on any
schedule of plumbing products, heating products and/or pipe, fittings
and valves, which does not show unit prices, or adding to or deduct-
ing from any such schedule on any other basis than the unit price
shown. This shall not be construed to prohibit quantity discounts
applying to urnts.
SECTIO0N 9 (False Mlark~ing or Branding).--The false marking or
branding of any products o~f the Industry which has the tendency
to mislead or deceive customers or prospective customers, whether
as to nature, origin, size, finish, grade, quality, q uantity, substance,
character or preparation of any product of the. Industry, or
SECTION 10 (M~isrepresentation or False or M13isleading Advertis-
ing).-Mllaking, causing or knowingly permitting to be made or pub-
lished, any false, materially inaccurate or deceptive statement by
way of advertisement or. Otherwise, whether concerning grade,
quality, quantity, substance, character, nature, origin, size, finish, or
preparation of any product of the Industry or credit terms, values,
policies, or services of any M~ember of the Industry, or otherwise,
hvinga the tendency or capacityS to mislead or deceive customers or
SECTION 11 (Substitution.) Furnishing without the consent of the
purchaser articles of more or less expense, of better or inferior
quality, or of larger or smaller size than specified and without mak-
ing the proper adj ustment in t~he quoted price and clearly indicating
the nature of the substitution.
SECTION 12 (Defamation) .--Defaming competitors, customers or
prospective customers by falsely imputing to them dishonorable
conduct, inabilityS t~o perform contracts, questionable credit standing,
or by other false representations or by the false disparagement of
the grade or quality of their goods.
SECTION 13 (Commnercial Bribery).-Giving, permitting to give,
or directly offering to give anything of value, for the purpose o
influencing or rewarding the action of any employee, agent, or rep-
resentative of another in relation to the business of the employer
of such employee the principal of such agent or the represented
party, without the knowledge of such employer, principal or party.
This provision shall not be construed to prohibit free and general
distribution of articles comlmonly used for advertising except so far
as such articles are actually used for commercial bribery as herein-
SECTION 14 (Proterction) .-Selling or offering to sell products of
the Industry under any form of guarantyv to a purchaser or prospec-
tive purchaser against either advance or decline in the price of said
products, exIlcept for a specific project, or when a contract of sale
at a definite delivery date.
SECTION 15 (Thre~ats of Litigation) .-Publishing or circulating
threats of suits for infringemlent of patents or trade marks, or of any
other legal proceedings not in goodt faith, with the tendecylc or effect
of harassing competitors or mntimilatmng their customers;.
SECTION 16 (Espionage of Comnptitors) .--Scuaring confidential
information concerning the business of a comipetit~or by a false or
misleadling statement or representation by a false impersonation of
one in authority, by bribery, or by any other unfair met~hod.
SECTION 17 (Saless at Wholesale Price).--Selling, or offerings to sell,
plumbing products or heating products at W~holesale. Prices to other
tha~n Plumlbing Contranctors, Heating Contractors, Retail Divisions,
Branches or Stores; or Institutional,, Commercial and,-'ar Industriail
uLsers as hereinbefore defined.
SECTrON 18 (Qulota'tionS) .-Allowring a quotation for a specific
building operation which provides for the acceptance withiin a speci-
fled time to remain in effect after the time allowved for the acceptance
SECTION 19 (Pl~ans, Specifications, Est~imating) .-Rendering engi-
neeri ng; services whichc shall not include estimating), w~ithlout
remuneration to cover the actual cost of such service; or estim~atinlg
quantities, types, sizes, or quality of products of thie Indus~try inac-
curately writ~h the intent and effct of miisleading or deceiving cus-
tomers or prospective customers.
SECTION 20O (Secoond Handl Manterial) .-Selling used or damaged
plumbing np"lrouts, heantingr product, and.'or pipe, fittings anid valves
mn the same place of business wFhere new products are sold without
segregating such used and damaged products and clearly identifying
same as suich.
ArntcLE VII;I 1\IARKETINO POLICTES AND DISTRIBUTION 1
SECTION 1 (Invoices).-Arll sales shall be invoiced at tihe time of
shipment, and such invoices together with credit memoranda and all
other documents relating to thle sale shall clearly and scourntely
state all of the essential elements of the sale, including types and
sizes of products, quantities, lwrices, credit sterns, discounts, allow-
ances, late of order, late of acceptance, date of shipment and,0ther
pertinent information. Cop~ies of invoices together with credit mern-
orands~ and all other sales documents, shall be avai'lable to represemnt-
t.iv-es of the Code Authority who shall not be. inethe employ of any
Member of the InduEstryg as alnd when diirectedl by the Code Autho~rity,
'a $eepargraph 2 of order upproving this ~Cod~e.
and in the event of a complaint true copies of invoices, credit memo-
randa and all other sales documents shall be sent immediately to the
Code Authority upon its request.
SECTION 2 (PuIbliShedC P~rtc~es).--(a) Each Member of the Industry
shall file with a confidential and disinterested agent of the Code
Authority, identified lists of all of his prices, discounts, rebates,
allowances and all other terms or conditions of sale or transfer,
hereinafter in this Article referred to as "L price terms ", which lists
shall completely and accurately conform to and represent the indi-
vidual pricing practices of said Miember. Said price terms shall in
the first instance be filed within thirty (30) days after the effective
date of this Code. Price terms and revised price terms shall become
effective ten (10) days after receipt thereof by said agent. Im-
medliately upion receipt thereof said agent shall by telegraph or by
other equally prompt means notify said Miember of the time of such
receipt.. Such lists and revisions, together with the effective time
thereof, shall upon receipt be immediately and simultaneously dis-
tributed to all Mlembers of the Industry and to all of their customers
who have applied therefore and have offered to defray the cost actu-
ally incurred byr the Code Authority7 in preparation and distribution
thereof and be available for inspection by any such customers at
the office of such agent. Such lists shall contain the price terms for
all Plumb~ing Products, Heating Prodlucts and Pipe, Fittings and
Valves as are sold or offered for sale by said Mfember. Said lists
or r~evisions or any part thereof shall not be made available to any
person until released to all M~embers of the Industry and their cus-
tomers, as aforesaid.; provided, that prices filed in the first instance
shall not be released until the expiration of the aforesaid thirty (30)
day period after the approval of this Code. The Code Authority
shall maintain a permanent file of all price terms filed as herein
provided, anid shall not destroy any part of such records except upon
written consent of the Administrator. Upon request the Code Au-
thor~ity shall ,furnish to the Administrator or anly duly designated
agent of the Administrator copies of any such lists of revisions of
(b) When any Mrember of the Industry has filed any revision,
such member shall not file a higher price within forty-eight (48)
(c) No Mlember of the Industry shall sell or offer to sell any
products of the Industry except in accordance with such filed price
(d) No Mt~ember of the Industr~y shall enter into any agreement,
understanding, combination or conspiracy to fix or maintain price
terms, nor cause or attempt to cause any Mlember of the Industry
to change his price terms by thle use of intimidation, coercion, or
any other influence inconsistent with the maintenance of the free aind
open market which it is the purpose of this Article to create.
rSECTION 3. The following practices specifically are violations of
Section 2 of Article VIII:
(a) Publishing false or fictitious price lists.
(b) Issuing price bulletins to customers, salesmen, price clerks,
or to branches, divisions, or affiliates of any Member of thle Industry
performing retail functions containing other than the prices cover-
ing such sales, transfers or deliveries, which shall have been p~ub-
lished as price lists under t~he pr~ecedlingr section.
SmEcTon 4. Subject to the approval of the Code Author~ity andi
the disapproval of the Administrator, the Regional Code Commiittee
of a trading area miay classify certain products as obsolete. In
such instances the published prices shall carrytentto n
invoices for such products shall1 plainly show the f oain nrollowiingr w-ord-
incr: "' Special prices on account of close-out."
bECcrox 5 (Cosit F~indingr).-The Code Authority shall cause to be
form~ulated methods of cost finding andi accountjng capable of use
by all Mfembers of the Industry, and shall submit~ such methods to
the Administrator for reviewr. If apZprov'edl by thie Aldministrator,
full information concerning such methods shall be mande available
to all Miemibrs of the IndZustry. Thereafter, each Memiber of the
Industry shall utilize such methods to tihe extent found prac~ticable,
but if any M~ember of the IndustryS fails; to utilize such methlodls such
Member shall m~ake a full disclosure t~o t~he Code Authority of thle
methods actually employed. If no method of cost. finding or account-
ing is used by a Miember of the Industry he shall so advise thle Code
Authority. Nothing herein contained shall be construed to permit
the Code Aiuthority, or any agent thereof, or any Memernlc of thle
Indus~try to suggest; uniform additions, per'centages or differentials,
or other uniform items of costs whichi are designedl to bring about
arbitrary uniformity of costs or prices.
SECTHON 6. (PIlumlbinga and Heatingr Pr~oducts.)-Ahn y Memb~r
of the Industry w~ho is also a Miember of any other Industry shall1
conduct hiis business in this Industry sep~iaraely from hiis busi-
ness in any other Industr~y by means of separate accounting thecre-
for. It shall constitute unfair competition for anyg M~ember of
this Industry, wvho is also a. member o~f either the retail division of
the Plumbingc Industry or of thle retail dlivision of thle Heatingi
Indus~tl' ry, to sellV7 as nor transfer pllrlumbing products and or' heat-
ing prrroduc~ts from his bus1iness in this Industry to hiis business in the
retail division of the Plumnbing IndustryS or to his business in the
retail division of the Heating Indulstry~ at prices other than as pub-
lished in necourdance with Sjec~tion 2 of this Article.
SEenoN! 7 (Costs andl Pr~ice Cutting).--The standards of fair com-
petition for the Industry w~ith~ reference to pricing practices areo
declared to be as follows:
(a) Wtilfully destructive price cutting is an unfair method of comn-
petition and is forbiddeni. Any member of t~he Inldustry or of any
other industry or the customers of either may at any time complain
to thie Code Authority that ainy filed price constitutes unfair com~pe-
tition as destructive price cutting, imperiling small enterprises or
tending toward monopoly or the imupairment of' code wagest and
working conditions. .The Code Aluthorityr shall within five (5) days~
afford an opportunity to the m~embler Hiling the price to answer such
complaint and shall within fourteen (14) days manke a ruling or
adjustment thereon. If such ruling is not concurred in by either
partly to the complaint, all papers shall Ibe referred to the Research
and Planning Division of National Recovery Administration which
shall render a report and recommendation thereon to the Ad-
UNIVERSITY OF FLORIDA
lillllillllil Illll1 U llllllillllillIIIIIIIIllllill i:47
180 3 1262 08855 7565
(b) WVhen no declared emergency exists as to any given product,
there is to be no fixed minimum basis for prices. It Is intended that
sound cost estimating methods should be used and that considera-
tion should be given to costs in the determination of pricing policies.
(c) W'henl on emergency exists as to any given products, sale below
the stated mrinimumr price of such product, in violation of Section 8
hereof, is forbidden.
SECTION 8 (Emergaency Provisions).--(a) If the Administrator,
after invest gation, shall at anyr time find both ()that an emer-
gency has arisen w~ithiin the Industry adversely afctn mle-
terp~rises or wages or labor conditions, or tending toward smonopoly
or other acute conditions which tend to defeat the purposes of the
Act; and (2) that the dletermrination of the stated mimimum price for ...
a specified product within the Industry for a limited period is nee-
essary to mitigate the conditions constituting such emergency andl to
effectuate the purposes of the Act, the Code Authority may cause an
impartial agency to invlestigaate costs and to recommend to the' Ad- i:
ministrator a determination of the stated minimum price of the prod-
uct affected by the emergency and thereupon the Administrator may ::~
proceed to determine such stated minimum price.
(b) When the Administrator shall have determined such stated
minimum price for a specified product for a stated period, which
price shall be reasonably calculated to mitigate the conditions of such
emergency and to effectuate the purposes of the National IndustrisI
Recovery Act, he shall publish such pr~ice. Thereafter, during sulch:
stated period, no Miember of the Industry shall sell such specified
products at a net realized price below said stated minimum price and
any such sale shall be deemed destructive price cutting. Fromn time
to t~imre, the Code Authority may recommend review or reconsideration
or the Administrator may cause any determinations hereunder to be
reviewed or reconsidered andi appropriate action taken.
ARTICLE IX MODIFICATION
This Code and all the provisions thereof are ex pressly made sub-
ject to t~he righlt of the President, in accordance with the provisions
of sub-section (b) of Section 10 of thle National Industrial Recovery
Act., fromt time to t~ime to cancel or modify any order, approval
license, rule or regulation issued under Title I of said Actad
specifically, but without limitation, to the right of the President to
cancel or modify his approval hereof.
No provision of this Code shall be so applied as to permit monop-
olies or mnonopolist~ic practices, or to eliminate, oppress, or discrimn-
inste against small enterprises.
AnaIcLE XI--EFFECTJVE DATE
This Code shall become effective on the tenth day after its slp-
proval by the President.
Approved Code No. 508.
Registry ND. 1129-3-12.