Registry No. Ill8-01
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON OCTOBER 9, 1933
WE DO OUR PRTm
1. Executive Order
2. Letter of Transmittal
3. Text of Code
U.S. DlEP c'7'~ OfrY~
GOVERNMENT PRINTING OFFICE
WASHINGTON s 1983
ar sal br the Superintendent of Docuents. Wubashinton D.C. Price 5I eakr
This ~ubilfintion is for sale by the Superintendent of Documents, Government
Printing Offi--, Washingrton, D.C., and by dlistrirct off~ices of the Bureau of
Foreign andt Domestic Commerce.
DISTRICT OFFICES OF TH`E DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birm~ingrham, ABla.: 257 Federal Building.
Boston, Mass.: 18;01 Customh~ouse.
Buff~alo, N.Y.: Chamber of Commerce Building.
Chal~rltc ton, S.C.: Chamber of Commoerce Building.
ChicagFo, Ill.: Suite 1706, 201 North Weldls Street.
Cleve~land,1 Ohio: Chamber of Commerce.
Dallas. Tex.: Chamber of Comlmerce Building.
Detroit, Mich.: 211.3 First N~ational Bank Building.
Hfouston, Tex.: Chamber of Commerce Building.
Indlianapolis, Ind.: Chamber of Comamerce Building.
Jacksonville, Fla.: Cham~ber of Commerce Building.
Kansas City, Mo.: 1028" Baltimnore Avenue.
Los Alrgh-le-,. Calif.: 1163 South Broadway.
Louisville, K~y.: Room 405, 421 W'est Market Street.
MIemp~hi<, Tenn.: 266 Sjouth Water Street.
Minneapolis, M~inn.: 218 Federnl B3uilding.
New Orleans, La.: Room 225-A, Cust~omhouse.
New York, N.Y.: 734 Customhouse.
Norfolk. Va.: 406 East Plume Street.
Philadlp~ljhin Pa.: Room 812, 20) South Fifteenth Street.
Pittsburgh,. Pa.: Chamber of Commerce Bluilding.
Polrtlandl. Oreg.: 215 Newt Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisc~o, Calif.: 310 Customhouse.
seattle, W~ash.: 1406 Vance Building.
CODE oF FA.IR COMETITIrl'ON FOR THE ArrToxU~nC SPRINKLZER TNDIUSTRY
Anl application having been duly ae usatt n nfl
compiane wth he poviion oftite I of the NJational Industrial
Recovery Act, approved June 16, 1933, for my approval of a Clode
of Fair Competition for the Automatic Sprinkler Industry, and
hearings having been held thereon and the Admninistrator having
rendered his report containing an analysis of thle 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 C~ompetition complies in all respects with the pertinent
provisions of title I of said act and that the requirements of clauses
(1) and (2) of subsection (a) of section 3 of the said act have been.
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 approve the report and recommendations and adopt
the findings of the Administrator and do order that the said Code
of Fair Comlpetition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
THE HVITIE HOUSE,
October 9, 1933.
Approval recommended :
Hoon S. JOHNISON,
OCTORBR 5, 1.933.
The WGthite House.
Mr DEAR AIR. PRESID)ENT: I: have the honor to submit and recom-
mend for your appr~loval the Code of Fair Comnpetition for the Auto-
mattic Spr1inkler Inldust ry.
The following exhibits are included or attached:
(1) better of Transmittal. from Administrator to President.
()Report of Derputy Administrator.
(3) Industrial Advisory Board Approval.
I(4)I Labor Ad-visory Board Approval.
(5Cons~inersr' Advisory3 Board Approval.
(6Legal~ Divisionl Approval.
(7 Research and Planning AIpproval.
( 8) Researc~h and Plannin~g Repor-t ( Statistical).
S(9) Original Letter of Tranlsmittal from Indc~ustry.
(1)Assent of Industry.
(1)Notice of Hearing
(12) A~uthor~izatio~n of Code Coimmittee to act.
(1)List of Wit neses.
(1)Constitution. and By-Labws of Association.
An analysis of the pr1ovisionls of the code has been made by the
Admnisraton.I find that the code complies wcithn the require-
menlts of clauses 1 and 2, subsection (a) of Section 3 of the National
Industrial RIecover~y Act.
I am, mny dear MrI. President,
Very sincerely yours,
Hoon S. JoFNwson,
A dmlin J istator.
CODE OF FAIR COMPETITION AND TRADE PRACTICE FOR
THE AUTOMATIC SPRINKLER INDUSTRY
To effectiuate the, policy of Title I of the National Industrial e-I
covery Act, the following provisions are established as a Code of:
Fair Competitioni for the Auitomatic Spr~inkler 'Industry in theo
(a) The termi "Automiatic Sprinkler Induistry when used in this
Code includes, but witrhoult limitation, a person, partnership ori
corporation engagedl in the business of the manufacture of auto-
matic sprinklers and dlevices and the fabrication and installation
of auitomnatic sprinkler equipment.
(b) The term Construction Labor when used in this Code in-
cludes labor performed by men in the installation of automatic:
(lc)' The term MIanufacturingr Labor ", when used in this Clodel
icudes labor performed in the sops of the. employers in the man-
ufacture and fabr~ication of autonuttic sprinkler devices and- equip-l
ARTICLE II--FROV'ISION;S FROMI NATIONAL RECO\ERY' ACT
The Automatic Sprinkler Industry will comply with the follow-
ing specific provisions of the National I~ndustrial Recovery Act:
(a) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, andl
shall be free from the interference, restraint, or coercion of employ-i
ers of labor or their agents, in the designation of such representatives
o~r in self-organization or in other concerted activities for the pur-
pose 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 employment to join any company union
or to refrain from joining, organizing, or assisting a labor organiza-
tion of his own choosing: and
(c) That employers s all comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment,
approved or prescribed by the President.
(d) In any cases in which the cost of performing contracts entered
into prior to the approval of this Code is increased because of the
operation of this Clode, it is equitable and promotive of the purposes
of the National Industrial Recovery Act and of this Code, for
adjustments of such contracts to be made which reflects such in-
creased costs, and the Automnatic Sprinkler Industry Code Authority,
as provided in Article IX of this Code, is hereby constituted as an
agency to assist in effecting such adjustments by arbitration or other
ARTICLE III[-nEGULAT.~ IIO.NS OF 110IURS OF WORKE
(a) No cons~tru~ction employee in the Automaotic Sprinkler Indlus-
try shall be employed in exrcss of forty (40) hlours per weeki.
(b) No manufacturing employee in the Au~tomatic Spr~ink~ler In-
dustry~ shall be employed in excess of forty (40) hours per weekr,
excep~lt wratchmenl wh~lo mnayT work not to exceed fiftyr-sixs (56) hours
(c) N~o emlploy~eesi in the Automatic SCpr~ink~ler Industry, including
ncc.oulnting,, clerical, office, service, and sales employees (excepting
the emp~loees heretofore specifiedl in this Article II'I, outside sales-
m~en and the employees mn managerial or executives capacity who
receive more than thirty-five (35) dollars per week), shall be emp-
ployedd in exscess of forty (40) hours per week.
ARlTICLE IV -bilIRIUII M WAGE RATESI
(a) The minimum pay for construction labor, except common
labor, shall be at the rate of forty-three andl three quarters~ (433-%)
cents per hour except in the States of Louisiiana, Fclorida, G~eorgan,
Northn Carolina, South Carolina, Alabama, MIississip~pi, Southnern
half of Arkansads aznd Southern half of Vir~ginia, where it shall be
thirty-sevecn and one half (371/2) cents per hour.
1. Commolnlc labor to be paid not less than eighty (80) percent of
the minimum wage, the total number of such common labor em-
ployees in any calendar month not to exceed eight (8) percent of
the total Irnumber1 of skilled and semniskilledl employees during the
(b) The minimum pay for manufacturing labor, except watch-
men, shall be at the rate of folrty (40) cents~ per hour; wTatchlmen
shall be paid~ not les~ than (710) percent of this minimum rate.
(c) The minimumllll pay for accounting, clerical, office, service and
sales employees, except office boys, shall be not less than fifteen ($15
dollars per week in any city of over five h~undcred thou~sand1 (500~,C000
poplulaltion; nor less than fourteen dollars and fifty cents ($14.50
in any city of betw~eenl two hloundrled and fifty thousand (250U,000
and five hundred thousands (500,000) population; nor less than four-
teen ($14.00) dollars in any city of between two thousands five hun-
dred (2,500) and two hundred and fifty thousands (250,000) popula-
tion. Offce boys shall be paid not less than eighty (80) percent
of these minimum rates.
(d) This Article (IV) est.ablishles a guar~anteedl minimum rate of
pay regrardles-s of wrhethier the employee is compn~ensated on thne basis
of a time rate or on a piecework p~erformannce, or ortherwnise.
(e) No emp~loyee shall be classified in any one of thne exceptedl
classes hereinabove defined, unless he performs functions identical
writhn those performed by emlployrees thus claassifiedl on June 16, 193:1.
(f) Ther~e shall be an equitable :readjustmlent of compensation now
in excess of the minimum wages herein established.
AnnCLE -T- flIMUM17 AGE
Empllloyers in the Autom~t~ic Sprinkler I~ndustry shall not employq
anly person under the age of isiteen (16) years; providedl, however,
that where a State law provides a higher mninimumn age, no, person
below the age specified by suchl State law shall be employed within
AirrICLE VI -UNyAun MeRson or COMPETITION
The following practices are thereby dleclar~ed to be unfair methods
(a) To sell any products or services below the reasonable cost of
such products or services.
1. For this purpose, cost !' is defined as thle cost of direct labor
plus the cost of materials, plus a pro-per amount of ov-erheadl, all as
determined on the basis of a system of cost accounting formualated
by the Code Authority with the a~-pproval of the Adlministrator.
(b) To sell Automa'tic Sprinkler D~evices to irresponsible, inexperi-
enced or incompetent contractors.
1. Each manufacturer in the Automnatic Sprinkler Industry shall
file from time to time w-ith the Code Authority a list of automatic
sprinkler contractors qualified under this Section to whoml the manu-
facturer will exclusively sell automatic sprinkler devices. Each
automatic sprinkler contractor, to qualify, must agree in writing
to comply with and be bound by all the provisions of this Code, when
engaged on Automatic Sprinkler installations.
2. The Code Authority, subject to the approval of the Admiinis-
trator, shall approve or disapprove thie list of automatic sprinkler
contractors and shall have the power to strike fromt saidl list any
contractor, who, after hearing, shall be found by it to hav~e violated
this Code or who shall be found to be irresponsible, inexp~eriencedl or
incompetent, and shall likewise add to such list the namie of any
automatic sprinkler contractor omitted therefromn who is qualified.
If any contractor who has been omitted from any list by reason of
disqualification, thereafter becomes qualified, he shall be placed upon
the. list. Any contractor may appeal to the Adlministratorl fromu a
ruling of the Ciode Authority in regard to his status.
3. The operation of this Article VI (b) and the actions of the
Code Authority thereunder shall at all times be subject to the Ad-
(c) To sell automatic sprinkler devices to owners or lessees of
plants or properties for installation on such plants or pr~operties by
such owners or lessees; provided, however, that nothing herein con-
tained shall prohibit sales to owners or lessees for installation by
such owners or lessees in replacement of automatic sprinkler inistalla-
tions theretofore installed by such owners or lessees or their p~redeces-
sors in title; and provided further that sales may be made t~o owners
or lessees for installation by such owners or lessees in any other case,
if the prior written consent of the Code Authority is obtained. 'If
any application of this paragraph should involve unjust discrimina-
tion against any manufacturer or any owner or lessee, such manu-
facturer or owner or lessee may appeal to the Administ rator, who
may grant relief.
(d) To fail to comply with the Rules and Regulations of the In-
surance or G~overnmental authorities having jurisdiction with refer-
ence to the manufacture and installation of Automatic Sprinklers,
pro~vided, however, that if suchr rules and regulations should at any
time hecren;fterl workr har~dship, ulpon any malnulfacturer, said ma~nu-
facturercl ma~y appeal to the ~Admiinistrator, who may grant relief.
(e) To aid and abet the p~ractice by insurance interests of receivl-
ing or qulotinlg of prices for the ins~tallation of nutomantic sprinkler
equipments, or the plrepara;tion of dletalil co.nstruoction plans and speci-
fications for thne installation of nlutomalltic spr~inkler equipments and
the distr'ibutlionl or sale of. sulch plans anld s~ecific~ationls.
(f) To use other than the standard formls of contract and t-he
standalr~d formIl of license~ agr~~leement adopted by the National Aiuto-
mtatic Sprinkler Assoc~iationl as and when approved by the Code:
AuthorityI and the Admini trator,, and provided that this contract
shall not be cons~trudcl to requlire the abrogation of any existing
(g) To leave out of a bid materials or labor required inl planls and
specifie~ntions or to fail to state that cer~tnin work is not ilc-luded f~or
the price submitted, or to sell or install used material or devices or
those which do not conformn to the standards prescribed by Insurance
or Governmental aulthorities having jurisdiction without the prior
consent of the buyer and thle insurance or other authorities hav~\ing
jurisdiction; unless the Administrator has granted relief upon appeal~
to himn as provided in Section (d) of this Article VI.
(h) To give or offer to give rebates, refunds, credits, allowances,
unearnedl discounts, or special services directly or indirectly in con-
nection wFith any work performed or to receipt bills for work of any
kind until payment is made.
(i) To aid and abet in t~he practice known as "' bid p~eddcling,.")
The use of arbitration in the settlement of conulnerlcial disputes
betweectn employers or between buyers and sellers under the arbitra-
tion rules of the American. Arbitration ~Association is recognized as an
economical and effective method of adjusting business controver~sies
ARTICLE VII[II[DMI NIScTRA~TIV\E EXPENSE
Every manufacturer in the Automlatic Sprinkler IndlustryS desir~ing
to participate in thle activities of the Code Authority may do so,
providled that he bears an equitable share of the expense incident to
the administration of this Code of Fair Comlpetition under such
rules and regulations as may be adopted by the Code Authority, sub-
ject to the approval of the Adm-tinistrator.
ARTICLE I1X-ADMIN sI STH.1TIlO --INDUISTRY COM.M ~rITTEE
(a) To effectuante further policies of the AGct, and Automaltic
Sprinkler Industry Committee, called the Code Aulthority, is hereby
designated to cooper1ate: wcith~ the Admninistratorr as a Planlning andr
F'air Practice Ag~ency for the Automat~ic Sp~rinktler Inldustrly Thlis
Code Authorityr shall consist of three rIepr~esenltatives of the Aut~o-
mlatic Sprinkler manufacturing companies elected by a fair meth~od
of selection, to be ap~pr~oved by the Administrator, and not mnore thann
three mnember~s without vote who may be appointed by the Presidenlt
of the Unitedl States, or his dlelega;tedl unithority undril the ~ntio~nal
Industrial Recovery Alct. Such aIgency mlay from tiie to time
present to the Admninistr~ator r~ec~ommlen datioi:ns balsedl on conditionss
in their ind~ustry as thley m-ay develop fiorom timec to timle whichl will
tend to effectuate the operation of the provisionls of this Codle andl
th~e policy of thle National Recovery A-ct.
(b) The Code Authority is emipow~eredl and set up to cooperate
within the Admninlistrator to mauke investigations as to th functioning
and observance of any~ pr~ovisions of th~is Code, at its own instance
or on complaint by any persons affected, and to report thle same to
the Administ rator.
(c) In addition to information to be submittedl to the Code
Authority, there shall be furnished to government agencies sulch
statistically information as the Adlministra~tor may3 deeml necessary
for the purpose recitedi in Section 3(a) of th~e Natioinal Indusjtrial
(d) The Code and all the provisions thereof ar~e expr~esslyl made
subject to the: right of the President., in accordance with th~e pro-
vision of Clause 10b of the National Industrlial Recoveryv Act, to
cancel or modify from time to time any order, ap~proval, license.
rule, or regulation issued under Title I. of said. Act, and specifi-
cally to the right of the President to ennecel or modify his app'rOval
of this Code or any conditions imposed by himn upon his approval
(e) Such of the provisions of this Codle as are not required to be
included therein by the Nationlal Indurstrial Recoveryv Act may
with the approval of the President, or his delegatted authority, b
modified or eliminated as changes in the circumstances or experience
may indicate. It is contemplated that from time to time su~pple-
mentary provisions to this Code or addlitional cod'es will be sub-
mitted for the approval of the President, or his delegated auth~ority,
to prevent unfair competition in price and other purp'Ioses and
policies of Title I of the N~ational Indlustrial Recovery Act con-
sistent with the provisions thereof.
(f) This Code shall become effective not later than ten (10) days
after its approval by the Presid~ent.
UNIVERSITY OF FLORIDA
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