Registry No. 1118--06
_ _I I
Fer emi by the Superandent of ~Docaments Washington, D.C. . Price 5 cents
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
FABRICATED METAL PRODUCTS
MANU FACTURI NG AND METAL
FINISHING AND METAL COATING
AS APPROVED ON NOVEMBER 2, 1933
II ir iF
> OUR PARTL
2. Letter of Transmittal
GOVERNMENT PRINTING OFFICE
This publication is for sale by the Superinteendent of Documents, Government
Printing Office, W7Cashington, D.C., and by district offces of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federcl1 Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C. Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Weulls Street.
Clevelanld, Ohio: Chamber of Commerce.
Dallas, T~ex.: Chamber of Commerce Building.
Detroit, M~ich.: 2213 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Bluilding.
Jacksonville, Fla.: Chacmber of Comrmerce Building.
Kansas City, M/3o.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louie~ville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, L~a.: Room 225-A, Customhouset.
New York, N.Y.: 734 Customhouse.
: Norfolk, Va.: 406 East Plume Street.
Phniladelphia, Pa.: 933 Comumercial Trust Building.
(Pittsburgh, Pa.: Chamber of Commerce Buildin~g.
Portland; Oreg;.: 215 New Post OEfice Buildin~g.
S6t. Louis, M~o.: 506 Olive Street.
San Franclisco, Calif.: 310 Customhouse.
Seat tle, Wa'sh.: 8409 Federal Building.
CODE OF FAIR COMPETITION FOR THE FABRICATED hlETAL PRODUCTS
h'IANUFACTURING AND hfETAL COATING INDUSTRY
An application having been duly made, pursuant to and in full
compliance with the provisions of title I of the N~at~ional Industrial
Recovery Act, approved June 16, 1933, for mny approval of a Code of
Fair Competition for the Fabricated M~etal Products Mfanufacturing
and Mletal Finishing and M~etal Coating Industry, and hearings hav-
ing been held thereon and the Administrator having rendered his
report contallining an analysis of the said code of fair competition,
together with his recommendations and findings with respect thereto
and the Administrator having found that the said code of fair compe-
tition complies in all respects with the pertinent provisions of title I:
of said Act and that the requirements of clauses (1) and (2) of sub-
section (a) of section 3 of the said act have been met:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by Title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations and
findings of the Administrator, and do order that the said code of fair
competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
The WHITE HOUSE,
November 8, 1988.
HUGH S. JoENSON,
The PRESIDENT, OtBn3,13
The W'hite H~ouse.
SIR: This is a report on the proposed code of fair competition for
the Fabricated Mietal Products Mlanufacturing and Mletal Finishing
and Metal Coating Industry, and on the hearing conducted thereon
in Washington, D. C., on October 5, 1933, in accordance with the
provisions of the National Industrial Recovery Act.
Before outlining in detail the provisions of this Code it seems appro-
priate to describe the industry and the problems involved, both for
the industry and the Administration, in the development of this Code.
In the broad field of metal working is included the manufacture of
such articles as automobiles, electrical apparatus, machinery, farm
implements, plumbing goods, ship building, etc.
These large divisions of the metal working field have been well
orgalnizedl through trade associations or similar institutions; codes
have been submitted and, in most cases, approved, and are now
Beyond these larger units of the Industry are the manufacturers
of thousands of articles, a few of which are kitchen utensils, w~ire
goods, pressed and stamped metal parts, hardware, small tools,
metal boxres, wood screws, roller anld ice skates, chains, mlet~al signs,
pins of all kinlds, cutlery, razor blades, vanity cases, and such items
as animal traps, bird cages, and ~fly swatters.
The need of a code of fair competition for the employers and
employees of these smaller industries is as real and important as for
the larger industries, and should receive equal consideration.
The classification of these separate industries, presented a most
serious and complicatted problem. T~he many codes required t.o be
submitted and given public hearings would involve grea t expense;
and the time consumed would, to a considerable extent, tend to defeat
the purposes of the Nationlal Inldustrial Recovery Act.
The problem wvas complicated, further, by the fact that. hundreds
of manufacturers produced manly diversified item~s. The applical.t~ion
of separate codes for these different items, when produced in the same
plant, would require the operation of a factory under varyringr wages
and hCour provisions of the separate codes, causing confusion and, in
many cases, impossible operating conditions.
The Administration wFpas faced with the further problem of seeing
that literally thousands of small shops, employing the somne classes
of labor, manufacturing specialties of one sort or another, wer~e cov-
ered by a code. Generally these shops were -not mlember~s of any
trade group, nor were they grouped together in an agency for t~he prep-
aration and submission of a code.
On August 10, 1933, approximately 60 trade association represent-
ativ~es and manmy individual manufacturers mnet inform~ally to discuss
the problems involved. They were encouraged by the Admrinistra.-
tion to join together under some plan which would simplify these
problems for the industry. At this meeting the Fabricated 1\fetal
Products Fiederation was formed and a basic code was prepared to
cover the whole industry. TIhis code contained uniform employment
provisions and the opportunity for all well defined and represent.at.ive
trade groups to surbmit supplemental codes to cover the trade prac-
tices of each. subdivisionl and to create a Code Authiority to admlinister
such trade practices.
The Fabricated lifetal Products F~iederntion proceeded at once to
enlist thze support of a truly representative number of trade associa-
tions and individual members. 'With 113 such trade associations
and approximately 600 individual members, the Administlration re-
gards this result as truly representa tive of the industry, as defined in
the Basic Code submitted herewith.
The problems of definition likiewise was serious. It was finally
w-orked out to cover the broad metal working industries, specifically
exarhcluingr however.T such banic? brTrnhesf of meta~l wor~kingc as m achinery,
automobile parts and accessories, railway supplies and equipment, etc.
A standardized form of supplementary code anid a simple procedure
for public hearings and the adoption of supplementary code~s has been
prepared, so that each branch of the industry may get thae benefit of
such fair trade practices in addition to those contained in the Basic
Code as may be necessary for the benefit of its ow-n branch, and the
benefit of individual administrative agencies se~t up to administer
In order to be sure that, insofar as possible, every one interested
should receive notice of public hearing, individual notice of hearing
was sent to over 7,700 concerns in addition to the standard form of
notice. With each notice there wvas enclosed a copy of the code and
a letter calling specific attention to the fact that the definition in the
code as proposed would cover the operations of the manufacturer
to whom notice was addressed. Since it was impossible to determine
in all cases the specific product manufactured by a particular firm~,
there were some instances of notice being sent to firms whose products
were covered by other codes. These, however, const itu ted a rela timely
small number of the firms to whom notices were sent.
WAGES AND HOURS
A 40-hour week with a 400 per hour wa-ge for males and a 35g per
hour wage for females is established in the Northern W7age D~istrict,
and a 350 per hour wage for males and a 301 per hour wage for females
is established in the Southern Wage District.
Because of the fact that this industry covers plants manufacturing
countless varieties of products, located throughout all parts of the
country, special provision is made with respect to :female wage rates.
Generally speaking, it is a light manufacturing industry, and probably
twenty percent of its employees are female, and it is estimated that
a minimum wage differential of approximately t~en cents heretofore
has existed. It was felt advisable therefore to provide a wage differ-
ential between male and female workers, with a proviso that where
female employees are used to replace male employees to perform cer
tain classes of work, such female employees shall be paid the same rate
of pay! in effect for the male employees at the time of such replacement.
It is estimated that eighty-five percent of thie employees in the
Industry are in the Northern Wage District. A fair adjustment for
wages in the south was made by providing for the payment of the
rates in existence for the same class of work on Jul 15, 1929, except
that in no case are the minimum rates to be less than eighty percent
of the standard minimum rates in the Southern District.
Child labor is prohibited.
Exceptions to the minimum hour and wage provisions are permitted
in the case of beginners without experience for a sixty-day period, an
in the case of disabled employees and boys and girls between the ages
of 16 and 18 years. These exceptions are limited to approximately
five percent of the total number of employees and are to receive not
less than eighty percent of the minimum wages
Payment of tune and one half is provided mn all cases where hours
of labor exceed those for which provision has been made.
ECONOMIC EFFECT OF THE CODE
Because of the short time available, and because of the fact that,
except in specific trade groups, the industry was not organized, it was
impossible to present accurate data fromt all plants as to the effect
of this code on this industry. In general, however, it is well to point
out that in normal times thiis industry operated on schedules of from
50 to 55 hours a weekr. I believe, with the adoption of the 40-hour
week las provided in the code, there will be an increase in thle number
of persons employed, on the same basis of activity, of approximately
Th2e industry estimated, using as its basis the Unlited Stat.es Census
of Manufacturers and Bureau of Labor Stat~ist~ics, that during the
period from 1926 to 1929 there were normally employed 350,000
employees. The Federation which is sponsoring the code estimated
that there are at present 313,752 employees in the industry, an in-
crease of approximately 109,237 since th~e first quarter of t.he y~ear.
An anatlysis of some sixty representative concerns shows t.hat the
number of employees has been increased by 53 percent since t~he
first of the year, anld that the average wage rate for unskilled workers,
to whom the minimum rates apply, has beenz incl~resed 1091 per~cent.
The mninimnum rates per hour have been increased nearly to t~he
rates for unskilled labor in 1926, and under the code will be further
increased to the 1926 rates, or higher. T'he total weekly payr rolls of
these 60 representative concerns, including equitable adjust~ments of
wages above the minimum, have since April 1, 1933, been increased
98.9 percent, from $152,613 to $303,546.
The average hours worked in these 60 representative concerns have
been reduced 5.7 percent since July 1, 1933, and under the code will
be reduced another 3 percent at least. Under a mnaximumu 40-hour
week it is estimated that the reduction in hours will amount to ap-
proximately 10 percent less than such mnaximum., If the rate of
production in evidence October 1, 1933, continues, it is estimated
that the code provision will result in a further increase in t~he number
of employees of approximately 11 percent.
In thec administration of the code the Fabricated ~Metal Products
Federation is set up as the Code Authority, to collect such data and
statistics as are required by the Admimistrator, and provision is
made for the Code ALuthorities in supplementary codes, wherever
possible, to collect and compile this data for transmission to the
All action taken by the Administrative agency is made subject to
the~ disapproval of the Administrator.
I believe that this code accomplishes the following:
1. It covers the operations of several thousand small1 metal work-
ing firms, who might otherwise not be included in any code of fair
competitionl submitted to the Administration;
2. It materially reduces the normal hours of opera tion for employees
in the industry;
3. It sets a fair minimum basic wage rate with equitable adjust-
ments provided for those receiving higher wages, which will result
in material wvage increases in the industry;
4. It sets up uniform warrge and hour conditions over this broad
industry, simplifying the problems of the manufacturer and at thle
same tune permitting him to obtain thle benefits of the National
Industrial Recovery Act; and
5. Ilt eliminates a tremendous ;amount of detail work and expense
whih would be involved in conducting several hundred public hear-
ings on separate codes.
I believe that the code is fair to I~ndustryg, to Labor, and to the
Consumer, and iin accordance with the intent and purpose of the
National Industrial Recovery Act.
I find that:
(a) The code as recomlmended complies in. all respects with the
pertinent provisions of Title I of the Act, including without limit~a-
tion, subsection (a) of Section 7 a~nd subsection (b) of Section 10
thereof ; and that
(b) The applicant group imposes no inqitable restrictions on
admission to membership therei and is trul representative of the
Fabricated M~etal Products Mfanufacturing: and Mfetacl Finishing
and Metal Coatig Indust~ry; and that
(0) The code as recommended is not designed to pro~m~oniote moopo-rtt
lies or to eliminate. or oppress small enterprises andilnoopre
to discriminate against them, and wiill tend to effectuate the policy
of Title I of the National Industrial Recoveryr Act..
Accordingly, I hereby recommend the approval of this proposed
Code of Fair Competition for the F'abricated 1\fetatl Products A~lanu-
facturingn and Meta~l Fi;nishingr and Mietal Coating Industry.
]HUou S. JOHNSON,
A dm inistra tor.
A BASIC CODE OF FAIR COMPETITION FOR THEi FABRI-
CATED METAL PRODUCTS MANUFACTURING AND~ M~ETIA
FINISHING AND MfETAL COATING INDUSTRY
To effectuate the policies of Title I. of the Ndationatl TIndustrial
Recovery Act, the following provisions~ are submittedl as n Clode of
Fair Competition for the Fab-ricated Mfetail Products Mannulfacturing
and Mletal Finishing and MietAl Coating Industry, Anld upo~n appr~oval
by th President shall be thet standard of fair co~mpettiti n for such
industry and shall be binding uponr every~ member ther~eof.
The term "Fabricat~ed M2etanl Product~s M~anufactur~in~g ad Mel~tal
Finishing andi Metal Coating Industry ", hlereaft~er referredt to as the
Industry is defined to mean the manufcature for use or for sale of
products in whole or in substantial part. of metall (but not including
machinery and machine parts for assembly thecrein, nor. t~he etrection
of metal products in building construction) which are beyond the
points of finished mill shapes or foundry operations, and which mlay,
for practical administration of the National Industrial Recovery Act,
be too varied and general to be defined and classified specifically in
a separate code but which products can be classified in subdivisions
of this particular Industry, as provided for herein; and, specifically,
excepting such metal products as are subject to basic codes whhich
have been approved by the President or which may be so approved.
The term "'employee" as used herein includes anyone engaged in
the Industry in any capacityg receiving compensation for hris services,
irrespective of the nature or method of payment of such com pensa tion.
The term "employer" as used herein includes anyone by whom
any such employee is compensated or employed.
Teterm memberr of the Industry includes anyone engaged in
the Industry as above defined, either as an employecr or on his own
The terms "'President"', "Act", and "Administrator"' as used
herein shall mean respectively the President of the United States, the
National Industrial Recovery Act, and the Administrator of Title I
of said Act.
The term "Federat~ion", as used herein, is defined to mean Fabri-
cated Miet.al Products Federat~ion, or its successor.
The term Code Authority ", as used herein, is defined to mlean
the Executive Committee of Fabricated Meptal Product~s Federation.
The Southern Wange District is defined as comprising North Caro-
lina, South Carolina, Florida, Georgia, Alabama, Tennessee, Mlissis-
sippi, Arkansas, Louisiana, Oklahoma, and Texas; and the Northern
Wage District is defined as comprising all other States in the United
States proper, including the D~istrict of Columbia and Alaska.
18029"--188--12B~--33 1 1
ARTrl. IIC 1- -AGES
1. As required by Section 7 (a) of Title I of the National Industrial
Recovery Act, the following provisions are conditions of this Code:
(1) That employees shall have the right to organize and bargain
collectively through representatives 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-organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection; (2) that no
employee and no one seeking employment shall be required as a con-
dition of employment to join any comapanyg union. or to refrain from
?ommzlg, orgamizm~g or assistm~g a labor organization of lus ow~n chioos-
ing; and (3) that employ-ers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment
approved or prescribed byT thae President.
2. On and after the effective date, employers shall not em~ploy anyv-
one under thec age of 16 years, and no one under 18 years of age sha~ll
be employed in hazardous occupations; provided, however, that where
a State Law provides a higher minimum age no person below the
minimum age of said State La w shall be employed in that State.
3. On and after the effective date the minimum wage which shall
be paid by any employer to an employee engaged in thae processing
of products in the Industry and any labor incident thereto, shall be
40C per hour for males anid 35~ per hour for females in thie Northernr
Wage District; provided, however, that for a period of 60 days from
the effective date of this Code, as provided for in Article 8 hereof, the
minimum rates for female employees shall be 32%~ per hour in the
Northern Wage District.
On and after the effective date the minimum wrage which shall be
paid by anly employer to any employee engaged in the processing of
products of the Industry or any labor incident thereto shall be 35p!
per hour for males and 30~ per hour for females in the Southern
Wage District, unless the hourly rates for the same class of work on
July 15, 1929, wvere less than the above-specified minimums in the
Southern Wage District, in which latter case the minimum hourly
rates shall not be less thanl the rates inl effect on that date; but in no
case shall the minimum rates be less than 80%J of the minimum rlt~es
of 35~ for male employTees and 30p for female employees in the Southern
Provided further, that for a period of nlot to exceed 60 days, beg~in-
ners, without experience, Imay be paid not less than 80%3 of the
minim~uml ages of 4011 for male employees and 351 for female em~-
ployees in the Northern Wa~ge District, a~nd 354 for male employees
and 30~ for female employees in the Southern Wage District; antd
the total number of such beginners shall not exceed 5%0 of thne total
number employed by any such. employer ine any calendar month; and
Provided further, that where anry State Law requires any higher
minimum wages thanI those specified in this section, such higher
mninimuml wages shall apply in all cases.
Equitable adjustments to maintain differentials existing as of 10ay
1, 1933, in all pay schedules of factory employees (and other em-
ployees receiving less than $35.00 per week) above the mlinimums,
shall be made on or before~ fifteen days subsequent to the effective
date of this Code by any employers who have not heretofore made
such adjustments or who have not. maintainedc rates ComnPaTrale with
such equitable adjustments; and the first reports of wag~es, required
to be filed under this Code, shall contain all w\age increases made
since May 1, 1933.
In the, case of employees performning w~ork\ for wh'~iCh thley are. paid
per piece of work performed, the minimum rate of pay which each
member of the Industry shall pay for such work shall produce earnings
per hour per employee for the number of hours worked in any pay
period at least equal to the minimum rate of pay per hour provided
in this Code for the same type of labor on an hourly basis.
4. The principle of equal rates of pay for male andl female employees
under like conditions of employment., performing subhstantially the
same work is accepted herein; and where female employees are used
to replace male employees performing certain classes of wrork such
female employees shall be paid the rates of pay in effect for the male
employees at the time of such replacement..
5. On and after the effective date, the minimum wa-ge that. shall be
paid by any employer to all other employees, except commission sales
people and all employees covered by Section 3 of Article III hereof,
shall be not less than at the rate of $15.00 per week in any city of over
500,000 population, or in t~he immediate trade area of surch city; nor
less than at t~he rate of $14.50 per week in any city of between 250,000
and 500,000 population, or in the immediate trade area of such city;
nor less than at the rate of $14.00 per week in any city of between
2,500 and 250,000 population, or in the immediate trade area of such
city; and in towns of less than 2,500 population, to increase all wages
by not less than 20%, provided t~hat this shall not require minimum
wages in excess of at t~he rate of $12.00 per week.
Office boys and girls, 18 years and under, shall be exempt from the
provisions of this section, provided they are paid at a rate of not less
than 80%J of t~he above minimum wages.
Hours.-1l. On and after the effective date employers shall not op-
erate on a schedule of hours of labor in excess of 40 hours per week per
Provided, however, that these limitations shall not apply to
branches of this Industry in which seasonal or peak demands or
break-dowvns place an unusual and temporary burden upon such
branches; and that in no case shall the hours worked in any one week
exceed 48 hours during such seasonal or peak periods; and
Provided further, that the number of excess hours worked in any
six (6) months' period, without the payment of overtime, may not
exceed 32 hours, in the cas~e of employees engaged in the processing
of products in the Industry and labor mcident thereto; and may not
exceed 48 hours, in the case of all other employees except executive,
administrative and supervisory employees who receive $35.00 or
more per week and outside salesmen, commission salesmen, and
service men; and
Provided further, that any employee at the request of the employer
may work additional hours beyond those specified in the two pre-
ceding paragraphs, provided such additional hours shall be paid for
at the rate of time and one half.
No employee shall knowingly be permitted to work in the aggregate
in excess of the above prescribed number of hours irrespective of
whether suchl employee be on the pa~y roll of more than. one employer;
Provided further, that nothing in the foregoing employment pro-
visions shall apply to executive, administrative, and supervisoryg
employees who receive $35.00 or more per week; and outside sales
and service men.
General labor provisions.-1-. It is understood, however, that old and
partiadllyr disabled employees are not included in the above wvage pro-
visions, except tha~t they shall in no case be paid less than 80%o of
the above minimums, and provided that the total number of suc~h
employees shall not exceed two employees in plants having less thlan
100 employees; nor more than 2%0 of ~the total number of employees
in such plants employing 100 or mnore.
It is further understood that wvatchmenl are not included in the
labor provisions of this article, except that they shall in no case be
paid less than 80%0 of the minimum wages herein specified and in no
case shall they be permitted to work longer than 56 hours in anly onze
week unless they are paid time and one half for any- hours in excess
of 56 hours per week.
2. Employers shall not reclassify employees, or duties, or occupa-
tions of employees so as to defeat the purposes of the Act.
1. With a view to keeping the President informed as to the obsery-
ance or nonobservance of this Code, and as to whether the Industry
is taking proper steps to effectuate, in all respects, the declared policy
of the National Industrial Recovery Act, each member of the Industr
shall furnish to the Federation duly certified re~por~ts on forms pre-
scribed by the Federation covering employment and production
Provided however: that when any trade group within thre Industry
is represented by a truly representative trade association, such asso-
ciation shall collect such statistics as are called for by the Federation
and send them in compiled form to the Federation. Thze statistics
covered by this paragraph shall conform with those which may be
required by thae President.
2. TIhe Fiederation, the applicant herecin, is hereby constituted the
agency o collect anid receive such rePOrts.
3. Aldata filed in accordance with the provisions of this Code
shall be confidential and shall niot be revealed to anyone other than
an authorized governmental agency.
In addition to the information required to be submitted to the
Federation there shall be furnished to government agencies such sta-
tistical information as the ~Administrator may deem necessary for the
purposes recited in Section 3 (a) of the National Industrial Recovery
4. To further effectuate the policies of the Act, the Code Author-
ity of the Federation shall. adnunister this Basic Code and shall hold
itself inl readiness to assist and keep the Administrator fully advised,
anld to meet with the Admlinistrator's representative from, time to
time as requested; to consider and study: any suggestions or proposals
presented upon behalf of the A~dmimlstrator or any member of
the Industry regarding the operation, observance, or administration
of this Code. The President may appoint not. to exceed three mem-
bers, without vote, to serve with the Code Authority in its admin-
istration of this C'ode. Such members if and wrhen appointed shall
serve for a term of fromt six montbs to one year and their appoint-
ments shall be so arranged th~at they do not expire at the same time.
5. There shall be no inequitable rest ric t ions imposed on membership
in the Federation and the Federation shall submit to the Adminis-
trator true copies of its articles of association, b~y-laws, regulations,
and any amendments when made thereto, together wit such other
information as to membership, organization, and activ-ities as the
Administrator may deem necessary to effectulate. th purposes of the
6. H7xen formal complaint is made t.o the F~ederationr by a~ny mem-
ber thereof that any of the provisions of ths Code have been violated
by any employer or group of employers, then, after every effort has
been made to settle such complaints~ within the subdivision (if any)
falling under thbis Codte, the proper agency of the Federat~ion shall
make such invrestigation as is necessary to determine thle facts per-
taining to the complaint and to that e~nd may cause such exnaminion
or audit to be made of such pertinent. data and records as may be
necessary, and report to the Administrator th~e result of such exa~mi-
nation and investigation; such examination or audit shall be made by
an impartial agency.
7. Each member of the Industry, subject to the jurisdiction of thi
Code and accepting the benefits of t.(e activities of the Federation
hereunder, shlla pa.y to the Federation his proportionate share of the
amounts- necessary to payJ the,,, cost f assmblin, analyzing, and pub-
lication of such reports and data and of the maintenance of the
Federation in connection with its activities relative to the preparation
and administration of this Code; said proportionate share to be based
upon the volume of business and/or such other factors as the Code
Authority may prescribe.
8. Any action taken by t~he Code Authority or other trade group
within the Industry, for the purpose of making effective the pro-
visions of this Code, may be submitted to the Administrator for
approval and shall in any case be subject to the disapproval of the
ARTICLE V--TRADE PRACTICES
The following acts as described shall constitute unfair methods of
A. The sale or exchange of any product in whole or in part below
the reasonable cost of such product to any individuall employer; such
costs to include all labor charges at rates provided for under this
Code whether such products in whole or in part are produced in the
United States or elsewhere. All methods used to deter mine such
costs shaUl be subject to the approval of the Administrator;
Provided however, that dropped lines, seconds, or inventories which
must be converted into cash to meet emergency need, and new kines
being introduced at high cost, may be disposed of in such manner and
on such terms and conditions as are necessary to move such products
into buyer's hands; and all such intended sales or other dispositions
of such products shall be reported immediately to the proper member
trade association or directly, by the individual members of the Inldus-
try to the Code Authority of the F(ederation, as the case may be;
Provided further, that selling below cost (as defined in paragraph
one of this article) to meet ex-isting competition on products of equi-
valent design, character, quality, or specifications shall nzot be
deemed a violation of this Article, except as provided for in supple-
mental codes, as and when approved for any branch, subdivision or
trade group of the Industry; and
Provided further, that when a, supplemental code filed by any~
branch, subdivision. or trade group of the Industry under the Basic
Code of the Fabricated Metali Products Manufacturing and Metal
Finishing and M~etal Coating Industry shall have been approved by
the President, the sale or exchange of anly product, in whole or inl
part, below the price conditions established in the supplemental code
shall constitute a violation. of this Code and be an unfair method of
Provided further, that the provisions of this paragraph A shall not
be deemed to apply to or affect the sale of anry product for direct
shipment in export trade by any member of the Industry within the
meaning of the term "export trade" as it is used in the Export Trade
B. Withholding from, or inserting in anly invoice a false record,
wholly or in part, of the transaction represented on the face thereof,
and the payment or allowance of secret rebates, secret refunds,
secret credits, unearned discounts (whether in the form of money or
otherwise), or the extension to certain purchasers of prices, services,
or privileges not extended to all purchasers under like conditions.
C. To defame or disparage a competitor directly or indirectly, by
words or acts which. untruthfully impulgn his business in tegrity,
htis ability to keep his contracts, his credit standing, or the quality of
D. To imitate or simulate the trade mark, trade name, package,
wrapper, or label of a competitor's product to such a degree as to
dreeive or have a tendency to deceive customers.
E. To give, or permit to be given, to agents or employees or repre-
sentatives of customers, or agents, employees, or representatives of
competitors or of prospecti-ve customers, without the knowlTedge of
their employers or principals, money or anything of value, to induce
them to influence their employers or principals, to purchase, or
contract to purchase, products of this Industry, or to influence such
employers, or principals, to refrain from contracting with competitors.
F.The false marking or branding of anly product of the Indu~stry
which has the tendency to mislead or deceive customers or prospective
customers, whether as to the grade, quality, quantity, substance,
character, nature, origin, size, finishh or preparation of any product
of thne Industry, or otherwise.
G. The making or causing or knowingly permitting to be made or
published anly false, materially inaccurate or deceptive statement, by
wa~y of advertisement or otherwise, whether concerning the grade,
quality, quantity, substance, character, nature, origin, size, finish, or
preparation of anry product of the Industry, or the credit terms,
values, policies, or services of any mlemaber of the Industry, or ot~her-
wise, having the tendency or capacity to mislead or deceive customers
or prospective customers.
1. This Code is intended to be a Basic Code and to cover the entire
Industry. It is understood, however, that trade associations, groups
of manufacturers or trade groups representing a substantial part of
any specific subdivision of this Indust~ry may formulate Supplemen-
t~ary Codes of Fair Competition, defining specifically the subdivision
and covering such regulations as are considered advisable by them.
However, all em~ployFment. provisions of such Supplemlentary Codes
shall conformi with t~he Basic Code. Such Codes when approved by
the President. shall have the same force and effect as thiis Basic Code.
2. It is further understood that if at any time any representative
group within the! Industry, as defined in the National Industrial
Recovery Act, included under this Basic Code, wishes to function ouit-
side the Basic Code, it. may submi t a separate code defining and cover-
ing its specific subdivision of t~he Indust~ry. Such a Code when
approved by the President shall have the same force and effect as
1. As required by Section 10 (b) of Title I of the National Indus-
trial Recovery Act, the following provisiorr is contained in this Code:
The President may from time to time cancel or modifyv any order,
approval, license, rule, or regulation issued under said Title.
2. This Code, except as to provisions required by t~he Act., ma.y be
modified on the basis of experience or changes in circumstances, such
modification to be based upon application to t~he Administrator and
such notice and hearing as he shall specify and to become effective on
approval by the President.
ARTICLE VIII-EFFECTIVE DATE
This Code shall become effective on the tenth calendar day after
its approv-al by thle President.
UNIVERSITY OF FLORIDA
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