Code of fair competition for the metal treating industry as approved on March 26, 1934


Material Information

Code of fair competition for the metal treating industry as approved on March 26, 1934
Portion of title:
Metal treating industry
Physical Description:
p. 529-539 : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Metals -- Heat treatment   ( lcsh )
Metal trade -- United States   ( 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. 1118-25."
General Note:
"Approved Code No. 367."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004951117
oclc - 63655228
System ID:

Full Text







I'_ I
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents

Approved Code No. 367

Registry No. 1118--25





This publication is for sale by the Sup~erintendent of Documents, Government
Printing Office, 1Yashington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commll~rerce


Atlanlta, Ga.: 5041 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, M~ass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Chiarleston, S.C.: Chanmber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North W~ells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mlich.: 801 First National Bauk Building.
Houstonl, Tex.: Chamber of Commerce Building.
Indiannpolis, Indl.: Chlamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City', MCo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 40S Federal Building.
M\emphis, Tenn.: 220 Fedcr~l B~uildinlg.
MCinneapolis, M~inn.: 213 Federal Building.
N~ew Orleans, La.: Room 225-A, Custombouse.
New Yorkr, N.Y.: 734 Customhouse.
Norfolk. Va.: 406 East Plume Street.
Philadelp~hin, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: C'hamber of Commerce Building.
Portland, Oregr.: 215 New Post Office Building.
St. Louis, Mlo.: 500 Olive Street.
San Franuciisco, Calif.: 310 Customhouse.
Seattle, Wansh.: 809 Federal Oficec B~uildlin~.

Approved Code No. 367



As Approved on March 26, 1934~


Anl applicationi having bteen rluly mad7e purs~un!t to, and in full
complliance w'ithl the provisio ns of T~itle I of the Natiornal Ind~ustrial
Recovery Act, approved June~t 10. 193:3, for apprioval of a Code of
Fair Comipetition for thle Mletl Tr~eating Indlustry. anid hea~r~ings
having been duly heldl thereonll and thet annexedl repor~it on said ~~.cde,
containing findings w~ith respcct theretto!! having bee1 n made and
directed to the Presidlent:
NOWV, THEREFORE, onr beha~lf of the President o~f th-e United
States, I, Hugh S. JohnISOn1, Admllinistlrator)I for' Indiustr~ial Recovery,
p~ursuant to nuthor~ity vestedl in men by Executivec Ordlers of th~e Presi-
dent,? including Executive Orderl N'o. 6543-A, d-ated D~cember 30,
1933, and otherwise; do hereby inicom!or~ate by reference said~ annlexed
report andc do find th:Tt said C'ode comnplies in all res6pectss with the
pertinent provisions andl wTill promotee the p~ohe~ anid pm-~poses of
said Title of said Act; anld do hereby order that said Code of Fair
Competition be and is her~eby~ alpproved provided, howreverl, that ~the
provisions of Article VI, Section 6, insofar as they prescribe a wait-
ing period between the filing withl the C'ode liuthor~ity and the
effective dante of revrised prlice lists or r~evisedl termsl andl conditions o-f
sale, be andt they are hereby~ stayed pending my further Order either
within a period of sixtyr days fromn the effectivet date of this Code or
after the completion of a stuldy of open1 price ass;ociationl s now being
conducted by the National Recovery Adminiistrantion.
Admnin;,ist ractor~ for' Inidusriral RecoverL'~y.
Approval recomm~etended
Div~i~sioni. Adm~in ');s 'istto.
117ar~ch e, 1.93_5.
40030"---423-1 52---34 (t"9)


Th~e Wh'ite Hlouse.
SmR: This is a report onl thle Code of Fair Ciompetitioni for the M~etal
Treatingr Indus1try,' as rPevised after a Publlic Hearing held in Wash-
ington on Januairy IS, 19341, in accordance with the provisions of the
National Indlustrial Recovery Act.


Employees ar~e limited to 410 hlours per wreeke and to 6 days in any
'i, except dluringg peake periods, when they may work -/48 hours per
wreek for 8 wreekrs in any' 6 months' period, provided that no unem-
ployed w~ork~ers possessing the necessarsklaravlbl.Tm
and a half' will b~e paidl to.emnployees wflo work nrin ecess of hur
per day, or 40 hours per week.
The mninimuiim wage w~ill be 4e0 per hour for factory employees, and
$16.00) per w~eek for clerical or office employees. Femanle employees
doing substantillly the some w~ork are to receive thle same pay as male

Unditer the p~rovisions of this Codte, estimates for 19341, based on
opcra7tions~ for the first tw\o months, show a gain in emnploymlent from
about 600U to, about 690 empyloyees or approximately 15%,~ and an
increase inl the overnag we~ekly pay~ro~lls o\f aoutil 25%.
The Indlustry, comprising app~roximately 80 firmls, has an invested
capital o~f about $1,30)0,0~00 andi an average ainrnul sales volume of
approximlately $1~.G00,000.

Thie Deputy Admrinistratorl in his final report to m~e on said Code
having foundl as herein set. forthi, and on the basis of all the proceed-
ings mn this matter:
I find that :
(a) Said Cod.e is well desigrned to promote the policies and pur-
poses of Title I of the National Indlustrial Recover~y Act, including
removal of ob~structionls to the free flow of interstate and foreign
commerce which tenl t~o dliminish the amount thereof, and wFill pro-
vide for the general welfare by promoting t~he organization of indus-
try for the p-ur~pose of cooperantive action among the trade groups,
by inducing and maintaining united action of labor and management
under adequate gov'erinmental sanctions and supervision, by elimninat-
inig unfair competitive practices, by promlotineg the fullest possible
utilization of the present productive capacity of industries, by avoid-


ing undue restriction of production (except as may be tempilorarily
required), byv increasing thle consumption of industrial and~ agricul~-
tural prodclats through increasing ucain oebyrdcn
a nd rel ievi ng u unemployment, byv imI~proving: st a ndards of labor, a n
by otherwise rehabilitalting indlustr~y.
(b) Said Industry normally emplloys not mior~e than 50,000 em-
ploy\ees; andi is not c~lassifiiedl b. me as a mlajo.r industry.
(e) The C'ode as a~pprovedr cocmp~lies in all respec~ts with the perti-
nent p-rov-isions of said Title of saidl Act, including without limita-
tion Subsection (0) of Section 3, Subsection (0) of SCec~tion 7, and
Subsection (b,) orf Sectioni 10 thereof; and that the applicant group
is an indlustrial association truly represcntative~ of thel aforlesaid In-
dustry; andc that said association imposes no inequitab~le r~estric-tions
on admni~ssion to mlemb~ership, t.h~eretin.
(d)j The Code is niot designed to andl will no~t permit monopolies
or monopolistic prnetices.
(e) The CodeP is not des4;igned to anld will nIot elimiinute or oppress
small enterprises and will not operate to discriminate against them.
(f ) Those engaged in other types of the economic process have
not bseen deprivedl of the right to be h~eardl prior to applrovanl of-said
For these reasons, this Code has been ap~provedl by mne.
H17oH S. JTo~Nson,
Adm inistr'ator'.
RIARCHr 26, 1934.



To effectuate thle policies of Title I of the National Ind~ustrial
Rec~overy Act, the follow-ing provisions are established as a Code of
Fair Competn~itionl for the lle ~tal Treating Indlustry and shall be the
standardl of Fair Comlpetition for Su1ch Industry and shall be binding
on every member th~ereof.


1. The termi 1\letal Treating Industry," or the Industry,"' as
used hlerein, melans and includes only the performance for sale of the
processes of treatments of ferrous andi/or nlon-ferr~ous metals
and does not, include the p~erforma~nce of such processes when in
combination with other primary or secondary operations necessary in
thle preparantioni of mneta~ls or metal pr1odlucts for sale or usae.
2. The termi "employee," as; usedI herein_ inclrlude annyne enganged
in t~he industry in any capacity receiving comnpensation for his serv-
ices. irr~espective of the nature or miethodl of payment of such
;3. The termI! emlployer,"' as us~ed herein, includes anyone by whom
any~ su~ch emiployee e is empnloy.ed or c~ompensatedl.
41. Th~e termn '. member of the indlustry," as usedi herein,? includes
anyone engaged in thie indlustry, as above defined, either as an em-
ployer or on1 hlis own1 behalf.
5. The terms Pr~esident,' "A~ct,'' and "Admlinistrator.? as used
herein, shall mean, respectivelyr, the Pr~esident of the Urnitedl St~ates,
Title I of the National Industrial Recovery Act, and thie Adlminis-
trator for Industr~ial Recovery undler said Act.
6. The term Instituite.? as usedl herein, means Mletal Tr~eating
Institute, Inc.

1. No empl-loyee shall be permitted to wor'k in excess of forty (40)
hours inl any one (1) week, or six (6) days in any seven (7) ; pro-
vidd oweert~hat dr-iirng any' period inl which a concentrated
demand upon any division of the indlustry shalll place an unusual and
temnpornry' burden for metal treating upon its facilities, andi no
unemployed w~orkrers possessing the necessary skill to perform said
metal tr~eating wor~k are available, an employee of such division ma~y
be permitted to wFork not mnore than forty-eight (48) hours for not
more than eight, (8) weeks in any six (6) months' period; and pro-
vided further that these limitations shall not apply to employees on
emergency maintenance~ or emergaency repair work, involving break-
dow~ns or the protection of life or property in thie mnembr't~s own
pla nt.


2. WThere in anyr case an em~ployee wrorks in xcessti of eihlt. (8)
hours per day, or forty (40) hours per week, suchl extr~n time shiall
be comlpensated for at. not lessj than one~ andi one-ha~lf (11/,) times
the hourly rate of suich employee.
3. Executives, supervisors, (but notr wo-rking for~emn),i) chemists
a7ndl metallurgissts regularly p-aid thlir~ty-five t $33.00)~ dollars or more
per w-eek, and outsiide salesmen shall be~ exemplt from the max~imnum
limit of hours establish~ed in thiis Ar'ticle. Electr~icians~ enrgaged7 in
the car~e a7nd repair of indlicating~ py'lcllrate r~ and related control
equipmlent shlnl be permitted to wc:1rk noit mlore thian forty-eih~t. (1S)
h~our~s per wreek. pr~ovidedl that one andl one-half (11g) times the
regular r~ate shall be p~aidl for all hocur~s w~or~ked in excess of forty
(410) hiours ,er wFeek or eight (Y) hours per day!.
4l. No employer shall knowingly el~rnge anyi emloyl)ee for any
time, which~, when totaled with alr~eady! performlled with, another
e~mployTer, or employers, in any indtuitry!, exceeds the mnaxiimumi
permitted herein.
5. Clerical or office and shipping andc receiving employees may
be employed forty! (40) hours per weekr.
6. Any emnploer r who regularly does the wvork of an empllloyee
shall be subject to t~he provisions of this Code as to hours of Inbor.

1. No emnployee shall be palid at less thaun the rate of forty-two
(424f) cents per hour, except. as h~ereinafter provided.
2. Ai persoIIn whose earning cnapneity is limited because of agle,
p~hysical or mental handlicap, or other infirmity,, mayl be employedl on
light. workl at a wagnfe below thle minimluml estab~lishled in this Code,
if the emnployer obtains from t~he State Authority,? designatedc' by
the U~nited States Depaltrtment of Labor, a certifciente nuthorizing
such person's employment at such wag~es andl for such hours as shall
be stated in the cer~tificate. Each emnployer shall file monthly with
the Code Authority a list of all such persons emp~loyedl by him, show-
ing wanges pa"id t.0, aInd the maximumH hours of work for such
3. No clerienl or office employee shall be paid less thann the rate
of sixteen ($~16.00) dlollalrs per weekr, excep~ting office boys and girls,
who may be paid at a2 rate not less than eighty (80) percent of the
minimum wange fixed in this section; prov'idedl, hiowever, that no
emlploye r shall engag~e at. any one timle mlore: than one such office
boy or girl for each twenty (20) office employees in r~egular classifi-
cations, with a2 mlaximuml limit of twenty (20) o~ffie, b~oys or girls in,
large~ ofices. but with any~ employer enti tledl to have two.
4. This Artiele establishes a miinimumi rate of payl which shall
apply ir~respective of whether an emnployee is actually compensated
on a time rate, piece rate, or other basis.
5. Female employees performiing suibstantially the same work as
mnale employees shall receive thie some rate of payr as mlale em~ployees.
6. During the first year of ap~prenticeship, th~e minimum rates of
pay shall not applyr to anly apprentice indlenturedl under a systemi of
training which will makre the alppreniti ce a skilledl hent t.reater, pr1o-
vided that the indenture be made inl pur~uanlce of the laws of the


State in which the compalnyg is located. A copy of each indenture
shall be filedl with the C.odle Authority. No employer shall employ
apprenticees in a nulmberI to xceedl the rate of one (1) apprentice
to reiver ten (10) journ~ieyman i wor~kers employed by him in the partic-
ular trade or occulpation at thle time of the employment of such
r. Equitab~le adjustmlents in the rates of pay above~ thle minimum
shall be mnade on the effective: date of this C~ode by every employer
w~ho has not. madle suich adjustments under the National Industrial
Recovery Act. Within thirty (30) days after thle effective date of
this Codie all such'1 adjustmernts made under t~he Act shall be reported
to the Code Authlority andc to the Administrator. In no case shall
r~ates~ be r~edu~ced.
8. Every empl-loyer shall make payment of all wages due in lawful
currency or by negotiable check ther~efor, p~ayable on demand. Em-
p~layers agree thatf wares of employees paid on an hourly basis shall
be p'aid at least twice a month anld SalarieS at. least once a month.
Emplloyers agirlee that wages or salaries shall not be wTithheld.
WageS~ts andic salar~ies shall b~e e~xempt from any parents of pensions,
insurance, or sick benefits other than those voluntarily paid by em-
ployees or required byg state law~. No employer or his agent shall
accept any' rebate. dlirectly or indirectly. onl such wnees or salaries,
nor' give anything of vaHlue or extend favors to any person for the
purpose of influencing rat~es of wa~ges or salaries or the workingr con-
ditions of emplloyvees.
n. No(- emp~loyer shanll reclassify employees or du~ties of th~e occu-
pationls performiedl or engage in anly other subterfuge for the purpose
of defeating the puirposes or provisions of the Act or o~f thiis C~ode.

1. No p~er~son, unier sixteen (10) years of age shall be emnployed in
the industry nor anyone under eighiteeni (18) years of age at occu-
p'ationis or operations hiazardouis in nature or detrimental to health.
The Code Authority shall submit to the Adcministrator within sixty
(60) dayn~s after the effective date of this Code, a list of such opera-
tionsu or occupaitions.. In1 any State, an empllloyer shall be deemed to
havec compglied w5ith this provision as to age if he shall have on file
a certificate or' permit duly issued by the authority in such Sitate
emlpoweredt~ to issue employmennt or age certificates or permits,
showing that the employee is of the required age.
2. In comp~liance w~ith Sec~tion 7 (a) of the Act it is provided:
(3) That employees~ shall have the right to organize and bargain
collectively through rep~resentatives of their ow~n choosing. and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives, or
in self-orga~nization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection.
(b) That no employee and no one seeking employment shall be
required as a condition of employmn-ent to join any company urnon
or to refrain fromt joining, organizing, or assisting a labor organiza-
tion of his own choosing.


(c) That employers shall comply wTith the max~imumn hours o-f
labor, mninimnum rates of pay, andl other condlitionis of emnployment
approved or prescribed by the Presidenlt.
3. No provisions of this C'odle shall sup:, lersed anyi Stalte or Fe~deral
law which imposes on employers m-ore str~ingent r~equirementsnt as to
age of employees, wagnes, hourls o:f work, or as to safety, health,
sa ni tary', or genlerln w orking condition, o-r insurance or fi re
protection, thalln ae imposed by this Code.
4. Everyv emplloyer shall makec reaosolnable provisioni for the hafetyv
and health of his~i emp~loyees at the p~lace and~ urllingr the hiorsI~ of
their emp~loymlent. Stan~dards for safety and~ he~althn shanll be sub-
mitted by the Ciode Authority to the A~dministr~lrato for app~roval
w~it~hin sixty (60) dlays after the effective date of this Code.
5. Eac~h employer shanll p.ost andl keep> posted in conspicuous places,
necessible to all1 emplloy~ees. complete copies o~f this Codle and any
subsequent supp~leme ntary? Codes or amI~endments.rl.
AnnTCuE V~I-A murINISnTrowII)h

To effect further the policies of thle Act, a Code A-uthorityf is here-
by constituted to cooperate with thie Admrinis;trantor1 in the adllminlistrn-
tion of this; Code.
1. Org~anizatrionl and~ C~olntiiltutio o1'fthel Codel~ Authfor~ity.- (a) The
Code A~uthor~ity shall consi t of five (5) mlembers of the Inst~itute
elected by the mempn berls of the Inlstitute, at a meeting duly called for
that purpose or by letter ballot, andi tw-o (2) of mem-
bers of the Industry wrho are not. mlemiber~s of the Insititute, provid-
ing they so desire, and signify their willingness to pay their fair
proportion of the cost of administering thle Code. The representa-
tives of the non-mnemibers shall be elected by thle non-members in a
mleet~ing dully called for thant purlpose~ or by letter ballot. Onle or
more additional members, wFithout vote, ma~y be ap~pointed by the
Administrator, at his discretion, to repr~esetnt tlhe Admlllinistrator or
such groups or interests as he may designate.
(b) The Institute, or any other tra~de asso-ciationi directly or in-
directly participating in t~he selection or activities of the, Code Au-
thority shanll (1) impose no inequitab~le restrictions on mnemiber~ship,
and (2) submiit to the Admninistrator true copies of its articles of
association, byvlaws, regulations, and any~ nmlendml~enlts wh-Ien mnade
thereto, together writh such other informa~tionl as to memtbership,
organization, and activities as the Admlninistrantor may deeml necessary
to effectuate th~e purposes of the Act.
(c) In orders that the Code ALuthority shall at all timiesi be tr~ulyy
representative of thle Industry and in other r~espec~ts to co~mply with
the provisions of the Act., the Administrator miay provide such hiear-
ings as he mnay deemi p~roper; andl thereafter if hie shall find th~at the
Code: Aurthority is not truly r~epresentRtiv~e or does not in other re-
spects comply w~ith the provisions of the Act, miay re~quir~e an aplpro-
priate modification in the method of selection of thle Code Authority.
(d) Nothing contained in this Code shall constitute the members
of the Codle Authority pa~tner~s for anyr purpose, nor shall anyl memi-
ber of the Code Authority- be liable, in any mannner to anyone for an~y
act of any other member. officer, agent, or emlployee of the Code


Authority,? nor shall any member of the Code Authority, exercising
reasonable diligncile in the conduct of his duties hereunder, be liable
to anyonec for anyv action~ or omission to act under this Code except for
his own wilfull misfeasance or nion-feasanice.
(e) If the Adtministrator shall d~eter~mine t~hat any action of thle
Code Aulthlorityl o any agiency thereof maqy be unfair or unjust or
contraryv to thle public interest. the Adiministrator may require that
sulch action be Iuspiende to afford2 anl opportunity for investigation
of the mier~its of such action and further consid-eration by such Code
Author~ityv or agncy, pending final action, which shall not be effective
unless the Admlrinistrator approv~oes or unless he shall fail to disap-
prove after thirty (30) days' notice to himi of intention to proceed
wTithl Su1ch action in its original or modiified formi.
9. Powecri anld dultie~s of the C'ode Aut~or~ity.--The Code Authority
shall have the following duties and power~s to the extent permitted
byl the Act:
(a) Tc adlop~t by-laws, rules and regulations for its p~ocedur~e and
for the admninistration of this Codle.
(b) To insure the execution of the provisions of this Code and~
provide for the compliance of the Industry withl the provisions of
the A~ct, subject to such rules and regulations as may be prescribed
byS the Administr~ator.
(C) To cooperate with t.he Ad~rmjinEit~rator in making investigations
as to th~e functioning And observance of any provision of this Code.
(d) Tro studyS the effect. of the various provisions of this C~ode on
the Indtustrily and consider proposals for amendments or muodi~cations
and mak~e recommendation fr~om time to time thereon to the Admin-
istr~ator.. which amnendlments or modifications will become effective
as pa'rt of t~he Code upon approval by the Admiinistrator after such
notice and hearing as he may specify.
(e) To provide necessary data for the Admiinistration of this
Code, all members of the Industry shall upon request furnish to the
Code Aut~hority such information concerning conditions in thbe In-
dustry~-including wages, hours of labor, number of employees! costs,
p rices, and other matters pertaining to this Code as maybe required
by the Admninistraltor-but this shall be carried out truhsc
channels as to preclude identification of confidential information
furnished by any member of the Industry.
(f) To establish, subject to the approval of t~he Administrator,
discount terms and extension of time of payment to suit regional
3. Repor'ts to Goverlnmnl)t Agencies.-ITn addition to the informa-
tion required to be submitted to the Code Authority and to the
Admiinistrator, there shall be furnished to gov~ernmeent agencies such
statistical information as the Aidministrator may deem necessary for
the: purposes recited in Section 3 (a) of the Act, provided that
nothing herein contained shall relieve anyone of any existing obliga-
tions to furnish reports to government agencies.
4. Appoinitmient of Divisiolnal Colnvm.ittees.--The Code Authority
shall appoint. a Divisionail Committee for each geographical division
and shall delegate to such Commiittees such of its powers and duties
as it shall deem necessary for the proper administration of this Code
under t~he sanction of and w~ith t~lhe approval of the Code Authority.


5. Ac~countingy andc Co~st F;ilng.--The C'ode AJut~horityv shall cause
to be formulated an accountingr systemn and- mnethod~s of finding*
and/;or estimating capable of use by) all mlembl~ers~ of the rIndusltryT.
After such systeml and muethods havu\e been formula~~tted andC approved
by the Admninistrator full dletails conlcernling thiem1 shall be made
av~ailable to all me~mbers. Th~ereafter all membelrl- shall dletermine
and/'or estimate costs in acc~ordalnce~ w~ith the ~r~incriples of .such
6. Openl Pr~ice Flilng.-W\\it~in~ 1.j days- after' the e~ffec~tiveC date of
this Code, each mnember of the Indlustryv shilll file w\ith thle Code
Authority~ a complete list of its current pice3 for ther differntlt
classifications of metal treating erv\ice,, termsn, andi trader di counts.
Such price lists, sterns, an1d discOullS lnts may be i~revs as c~onditions
require by filing samne withl the Code Aulthority., It shall be an
unfair miethodl of competition for any person to sell metal treanting
service at. any other thnn the p~ric~e filed,? or to g.ive any3 Con"Ce~Ssion
directly or indirectlyl, by aIny means, fr~om its: list of prices, terms,
andi discounts, so lonlg as th~e samue r~emainn in for~ce.
A member of the Industry~ may-, submit a r~evise~d price list to the
Codle Author~ity any tim~e. Slc~h revised prices list shall become
effectiver onl the 10thl day) after it is receivedl by thre Cod-e Aluthorityr.
The Code Authority shall immedrc iately miake such'j information avanil-
able to all interested persons as echnrl mlay bet cncernied.lcl When a
memlber of the Indusltry files al rev'isedl pricec, alny other mnembler maiy
file a. revisedl price toj mleet thle ojne first filed~. Th'le second prLil'sl hall
become etf'ective on the eff'ectivet date of the onle first filed.'
7. Members o~f th~e Indlustry shall be entitledl to participate in alnd
share the benefits of the activ~ities of the C'ode Atuthlor~tSity and o
participate in thle selection of the mlembert~lS thereo'if by~ ass~enting to
andi complyiing withi the requir~emlents of this Cod:e and sustalinig
their reasonable share of the expenses of administ~n tionl. Th'ie rea-
sonable share of the expenses of its administration shall1 be deter-
minedl by the Code A~uthority,! subjeCt tor review by~ the AdminiStrlator,
on thle basis of volumlle of business andl or' such others fa~Ctor' s a may~
be deiemed eqluita ble to be taken inito co-nsidera tion.

A~RTICL.E VII--T n~ave, PRAenTc.Es

1. No muembier of the Indus~itr~y ?Ihall defamel any comlpetitorr by
falselyl ;Ii-puting to him dlishonorablel conduct, inablility to performl
contracts, questionable credit standcing, or by other mnisr'epresenta-
tions having thle tendecncy anld capacity to mi~sleal and~ deceive
pulrchaers andl perspective pulrchaseprs of metal treatingr se~rvice.
2. Procuring, otherwise th~an w\ith the c-onsent of any membgr o~f
the Indu~stry, any informal~tio n concerning thle business of suc mntt-
ber which is properly regarded as a2 tradle secret, or confidential
within an organization, is unfair trade practice.
3. No member of' the indlustry shall grive, permit to be given, or
directly offer to give, anything o~f value fror the purpose of infuluecingr
or rewarding the action of any employee, agent, or represjentative
of another in relation to the business of the emiployecr of such em-
I See paragranph of order applrov~ing this Code.


playoee, the principal of such~ agent or the represented party, with-
out the knlow\ledlge of ~uch employer, principal or party. This com-
mercial briberyS provision shall not be construed to~prohibit free and
gene)ral di;stribultin of ar'ticleP coimmonly u1sed for' ad~vertisingI ecept.
so tar as sulch articles ar'e actually used for commercial bribery as
hereinabove defined.
41. It is unlfair tr~ade practice to ma~ke or cause to b.e made, or to
permi t to be miad blly w\ord-o f- mout h or by publiicat ion, a ny falIse or
dleceptiveu statement or2 adivertisement, concerning the grrlade, quality,
chanrneter or finish~ of the process or the workc, which s~tatements may
have thle tendlenicy or effect of mnislending or dleceiving~ customers,
prospectivec custo~mersi, or ultimate retail purchasers of the final prod-
uct, or whlich may~ hiave th~e tendency or effect of injuring tihe business
of a completing mnembier inl the Indlustry.
5. Indlucingr byl anyl means whatever, or attempting to induce, any
par~ty t~o a contract. w~ih a member of the Industry to violate such
contract, is unfair tradle practice.
6. It. is unfanir trade practice to miake either direct or indirect dis-
crimnination inl the p~riac charged t~o several purchasers of metal
treat~ing, service; provided that nothing herein contained shall forbid
differences in prices due to clearly understood differences in the
griade, and quality of the metal treating, or differences in price based
on quantity discounts.
7. The dating of an invoice other than the date of shipment of all
the material included t.herein, and the withholding from,! or inserting
in the invoice of facts whichl make the invoice a false record either
wrholly or in part--of the transaction represented thereby and the
payment or allowannce of secret rebates, refunds, credits, unearned
dliscounts,, whether in the formi of money or otherwise, constitute
u nfa ir comnipet it io n.
8. It. shall be unfair trade practice to subcontract any work in this
Industiry in whole or in part., to any emiployee.
O. It shall be unfair trade practice for any member of the Industry
who is operating hiis plant in competition wvith other members of th~e
Industry, to rent, to lease or to allows the use of any portion of his
factory space or equiipmient capacityr, to employees for t~he purpose of
their performing metal treating operations for the trade in competit-
tionn with other plants in the Industr~y.
10. Exepnt to mept, ther selling price of a bona fide low cost pro-
ducer, it shall be: unfair trade practice. for any member of the In-
dustry to sell metal treating service below his own individual cost
thereof, costs in all cases beiigr determined in accordance with a
syvstemi of accounting acceptable to or established by the Code
Authority with the approval of the Admiinistrator, as mentioned in
paragraph 5, Article VI.
11. It. shall be unfair competition to mnake guarantee against
decline in pr~ic~e, or to give protection against advance in price, ex-
t~ending beyond a period of ninety (90) days~.
12. It shall be unfair competition to make unit prices quoted on~i
a specified quantitg y of metal treating applicabletoalsrquniy
If lesser quantities are shipped under a contract calling for a larger
quantity, billing prices shall be those quoted or consistent with the
actual quantities shipped.


13. It is unfair practice dlelib~erately~ to makle imposs,.~ ib:le delivery
promiises for the purpose of winning ordiers- for mctal trentinga

This (Codle andl~ all of the~ prcvisionsi thereoc`f are expressly made
subject to the righlt of the Pr~esidecnt, in neco! dace;ic c with subsection
(b) of Sec~tion 10) of the Alct, fr'oml timoe to time to~ ennellr or m~odify
any ordler, appr~oval. license, rule, or~~ regulations issuedi under Title
I of saidl Act aondi seccifically, b~ut with~out lim~itationi, to the right of
the President tor cancel or~l modcify hlis approval of this Code or any
conditions imposjedl by himi uplon his appr1oval thereoccf.
Th~is Code, except as~ to- ,r~ovision:; requ~ired:- b! t~he Act, mnay be
modlified on the basi;; of experience or changes in- c~ir~cumstatnces~, such
miodifica~tions to b~e based uponl a ppllica~tion to t he Admlrinistra~ntor and
such notice and~ h~earing as~i he .shall sp~ecify. to becom!le effective on
approval of thle President.

No pr~ovision of this Code shall be so, appliedl as to per1mit mnonopo-
lies or mi-onop~olistic pener~tices, or to elimrinate, or oppress, or discrun-
inste against smainll enterprises.


This Code shall become effective on t~he second Mlonday after its
approval by thec President.
Approvedl Code No. 367~.
Registrya No. 1118-25.


3 1262 08855 7755