Code of fair competition for the iron and steel industry

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Material Information

Title:
Code of fair competition for the iron and steel industry as approved on August 19, 1933 by President Roosevelt
Portion of title:
Iron and steel industry
Physical Description:
1 p. l., 35 p. : incl. tables. ; 23 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
U.S. Govt. Print. Off.
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Iron industry and trade -- United States   ( lcsh )
Steel industry and trade -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

Additional Physical Form:
Also available in electronic format.
General Note:
At head of title: ... National recovery administration.
General Note:
Includes: 1. Deputy administrator's letter of transmittal to administrator. 2. Executive order. 3. Text of code.
General Note:
Code no. 1116/02.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004952740
oclc - 23723983
lccn - 33036104
System ID:
AA00007089:00001

Full Text



Registry No. 1116--02


NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION

FOR THE


IRON AND STEEL INDUSTRY

AS APPROVED ON AUGUST 19, 1933
BT
PRESIDENT ROOSEVELT


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


1. Deputy Administrator's letter of transmittal
to Administrator
2. Executive Order
3. Text of Code








UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHIINGTON :1933












































































































































































:i













The American Iron and,Steel Institut~e, which presented the Code
July 15th, reported that signers of t~he Code then represented 90%'
of the t~ot.al pig-iron and steel-ingot capacity in the U'nit~ed States and
that it expected total signatories representing 95%~ of such capacity.

DESCRIPTIV'E OF THE INDUSTRY

The Industry ats defined in the C'ode includes all those producing
in the United States pig iron, iron or steel ingots, and rolled or drawn
iron or steel products. Purposely excluded from the scope of the Code
are other operations and products of iron and steel pr~oducers, such
ass mining of iron ore and coal, transportation, production of cement
and other byproducts, castings, and the bulk of forgings. Included,
how-ever, are some iron and steel products, not pr~operly or fully
describedl by the words rolledd or drawn", and which alre processed
after rolling or drawing by the producing company, such as spikes,
tiepnlates, wire fenciPng nails and staples, t~in plate, and other coated
products.
The following statistics are from the Census of M~anufactures, 1929,
and 1931 Mlimeographed Reports:


19213 1929 1931
Iron and steel industry iblas~t fur~n'Ces, steel works,
and rolling mills,:
W\age earners.... .............~..... ......~.......... 424. 900 420. 500 278, 100
Totasl wages...................... .............~ .... $6,97, 000,000 $;33,000,O.000 5358, 000, 000
Wages per w~orker...... ...........- ~ ............... $1. 640 SI,742P SI,2h7
Value of product........~. ................... ........ $4, 162, 000, 000 $1, 137, 000,0100 $1, 714,000r. 000
Ratio of wages to value added by manufacture
percent.. 54.0 45. I 57.4
AH1 other manufacturing industries, wagecs per
w~orker...................................... $1, 234 SI, 203 SI, 102


It is signifiennt that 1923 and not 1929 was the peak year for the
Indust ry in point, of value of product, although the grea test production
and wage payments were in 1929. Since then the IndustryI has fully
experienced the difficulties of the depression, its opera ting rate dteclin-
ing to 15%b and lower during late 1932 and early 193;3. Thle low rate
of operations coupled with low prices resulted in substantial operating
losses for pra~ctically all companies. The Industry opera ted over 50%
capacity in July of this year, how\ever.
Attention is dlirected to t.he fact that many members of the Code
have~ been onpr~ating under it~s wage provisions since the middle of
July, both as to minimum a.nd higher rates.
It should also be r~emarked that this Industryr has been a leader
in the "'pshare-e- -work" movement since 19219.








SUMaMARY AND DISCUSsION or CODE PnovlStows
COLLECTIVE BARGAINING
The mandatory clauses of subsection (a) of Section 7, Title I,
N.I.R.A., are stated without qualification. Section 2, Art. IV, of the
original Code and its companion Schedurle relating to "Employee
Representation Plans" were withdrawn at the hearing, prior to
which these had been subjected to much criticism.
EM~PLOYMENT--ROURS AND WAGES
A full study of the hour and wage provisions of the Code is con-
tained in the Report of the Division of Economic' Research and
Planning, their summary of which is given below:
The IndustryS emiployed 421,000 in 1929, 210,000 in 1932, and
272,000 at the end of July 1933. The hours in the Code should allow
of a production without undue strain of about 3,580,000 tens per
standard month, this being the half-way recovery point from the
Mlay 1933 level of 1,916,000 per standard month to the average of
4,516,000 tons for 1929. This wrill require 62,000,000 man-hours per
month, or say, 65,000,000 to provide for seasonal peaks. This
could be provided by 417,000 men on a 40-hour week.
Experience shows that, on the average, 10%o of the nominal working
time is lost through voluntary absences, breakdown, inability to
schedule operations perfectly, and lack of sufficient business for
particular products to keep the departments for those products busy
all the time; that is, with a, maximum work week of 40 hours the
hours actually worked cannot average over 40 per week, 36 hours
is the maximum eftectivle work week, or 156 hours per month.
65,000,000 +156 = 417,000.
About 272,000 men were employed at the end of July and working,
roughly, 43 hours a w~eek. With a maximum 40-hour week and 36
hours effective, it is estimated that this number would be increased
to about. 325,000.
Reemnployvment, in this Industry, with its subdivisions and speciali-
zation of labor, can be much larger than would at first appear from
the average hours worked. This is because many men will be working
considerably longer than the average, and many considerably shorter.
As those working longer are brought down to the Code hours, addi-
tional men have to be taken on. But these groups working shorter
hours cannot in general double up and release men to the other groups;
there are limits to a "'share-the-man" movement in the steel industry.
The 8-hour day and 40-hour week will create a great many jobs
in cases like the following:
(a) MILill working one 10-hour shift 6 days a week, total of 60 mill-
hours per week. The only practicable readjustment would be two
8-hour shifts working 4 or 5 days a week, giving a total of 64 or 80
mill-hours. The number of jobs would be doubled.
(b) M~ill working two 10-hour shifts 6 days a week, giving total of
120 mlill-hours. The practical readjustment would be three 8-hour
shifts working 5 days a week, giving a total of 120 mill-hours. The
number of jobs would be increased 50%.








Wages are about half the value added by manufacture.
1920
Value of steel products.-- _-- ..... ..... _... ........... $3, 366, 000, 000
Raw m materials_ __ -_.... ... .... ... .. .... ... ... 1, 904, 000, 000
Value added, steel_.______ ............. .........._ 1, 462, 000, 000
Value added, iron and st~eel.__ ..............~-- ...... 1, 623, 000), 000
Wages I(including wrages of blast-furnace w~orkers)............_ 733, 000, 000
Ratio to value added .. .................. ___perc~... ..p rcn 45
Walge rates wvere mnuchi bet.tber than average malnufa~cturingr wage
rates, in the period 1921-1930, but w~ere barely up to thze rates paid
in those industries requiring skilled labor. Steel wages dropped
further than others in 19.31 and 1932, and fell definitely below skilled
wage rates in other industries. Unskiilled wange earners (Inhor~ers)
averaged about 41.4~ an hlour in 1929. The: C~ode minimum rates
average about 39.5c" in the Pit~tsbur~gh and Great Lakes regions
(average on weighted basis), 35@ in the Easter~n Region, and 26.5f
in the Souther~n. Compar~ed writh 1929, these vary~ from a decrease
of 16% in the East to an increase of 13% in the South. The Code
minimum wanges in the Pitt~sburlgh, Grleat Lakes, alnd M~iddle West
Regions wiill be 10% below t~he 1929 rate. In relation to early 1933,
the Code minima represent advances of fromt '22% (Pittsburgh) to
anywhere from 350 t~o 80%b (t.he South~).
T'he proposed minimum wages vary from 25~ per hour in the
south to 40~ in Pittsburghi. T~he necessity for thle lowe~r wage in
the south lies in the longer freight hlauls t.o pr~incipall interior markets,
and also in a high mining cost in terms of labor. One mnan-hour in
Alabama produces 0.533 ton of crude iron ore of 20.1% iron con-
tent, or 0.107 ton of iron, whlile one maln-hlour in IVinnesota pro-
duces 1.132 tons of crude iron ore of 419.5Cc iron content, or 0.56
ton of iron. (Figures for 193'2; special study by Bureau of M~ines.)
One man-hour produces 0.413 ton of coal in Alabama, 0.598 in
Pennsylvania, 0.810 in Illinois, and 0.7i31 nWetVrii.In
addition, the Alabama coal has to be washed, which reduces the net
yield t~o 0.37i ton.
Another difficultyV facing the South is imports. The South nor-
mally ships a Ilargae part of its output. to t~he At~lantic, G1ulf, and
Pacific seaboard.
Both these difficulties are reflected in income account, and balance
sheets, which reveal a definit~elyv poorer financial status than the
Northern companies. One Southern company is in default on bond
interest and sinking fund.
The decline in wage rates during the depression has been partially
cushioned by the concurrent decline in livings costs. The 1929
average common labor rate was 41.4@ and the 1933 rate about 314
estimatedd on basis of common labor entrance rates of July 1, 1932,
which were 31.841, and U.S. Steel recent miinimumi of 33 ). 3Living
costs early in 1933 were below 70~ in terms of 1929 = 100, so that tht
314-rate represented in actual purchasing power over 441~ an hour
(31+-.70 =44), or more than in 1929.
The code minima, which average about 39~ an houlr, represent about
52C an hour in 1929 purchasing power, taking the cost of living as
75% of 1929, to allow~ for increased costs.
H~ile the hourly wages show up very well indeed on a real wage
basis, the weekly wages do not. Employees worked about 541 hours a








week in 1929 and often less than 26 in 1932 and earlyr 1933. The
unskilled average weekly wage was, therefore, about $22.40 in 1929
($~0.414 X 54) and $8.05 in 1932 and early 1933 ($0.31 x 26). (Unskilled
workers ma~y have worked longer hours than the average and so have
earned more than t~he above; the National Indust~rial Conference
Board reports unskilled average weekly earnings of $11.97 in the
first four months of 1933.)

I MIoney
Hourly Hours Weekly Cost of Real wages for
wages per week earnings living wages I 20~s~l~
power

1. 1929.....~.._. ......._.~.......... ._...%. $041 54 $22. 40 100 $22. 40 $ 22.40L
2. Early. 1933..~.~..~..~~..........~.~.... .31 26 8. 05 70 11. 50 15. 70
3. Early 1933. ...~............... ...~.~.. .31 ...... 1 97 7 71 57
4 J ly193....................... .31 40 12.407 1.0 6
5. Code.................. ............ .39 36 14. 05 75 18. 7016 0
6. Code....~...~..... .....~...~.......... .39 40 15. 60 75 20. 80 16. 80

Nors.--Nationsl Indiustrial Conference Board figure of $11.97 probably not comparable with others.

It. will be seen that working for 31~ an hour for 26 hours gives a
weekly purchasing power of only $11.50 or but. slightly more than
half 1929. In July 1933 the average work week was above 420 hours.
Average weekly money wrages were about $12.40 (before the 15%
wage increase on July 15) which represents $17i.20 in 1929 purchasing
power. The code rates for 36- and 40-hour weeks, respectively, will
give $14.05 and 815.60 in mioneyr wages and $18.70 and $2~0.80 in
1929 purchasing power.
CHILD LABOR

None of the members of the Code shall employ in or about its
plants in the Industry any person under 16 years of age.

AlAXIMUM HOURS FOR ALL EMPLOYEES

Not over 40 hours per week average in anly 6 months' period.
Not over 48 hours, or more than 6 days, in any one week.
On and after November 1, 1933, if operating at 60%~'-' of capacity
or more, not over 8 hours per day.
(Exremp tions--Executives, those in supervisors and technical work
and their staffs, and emergency work.)
The large number of different manufacturing processes, the depend-
ence of each process upon various percentages of highly skiilled
workmen such as boss rollers a~nd furnace men, and other craftsmen,
and the physical hazards caused by untrained men all contribute to
the real obstacles in the way of interchangeability of labor, reduction
of workiing timze, and absorption of unemployed workers in this
Industry. By systematic and consistent training methods, men will
be provided for the highly skilled jobs. This will require some time,
however, and meanwhile the provisions for averaging hours and for a
48-hour maximum week have been provided to take care of seasonal
and peak labor loads. While the foregoing applies principally to the
highly skilled workers, it is applicable in lesser degree to the much
larger class of senuiskilled workers.








h'flNIMUM RATES OF PAY FOR COMMhON LABOR ARE: AS XJOLLOWS FOR
THE VAGE DISTRICTS INDICATED
401 PER HOUR


Pittsburgh Dist~rict
Y'oungst.own Vatlley\ District
North Ohio River District
Cleveland District


Chicago District
Det~roit-Toledo D~istrict
Colorado D~istrict


(The above including approximately 60 percent of the Industry.)


39k PER HOUR

38~ PER HOUR
Seattle DIistrict


Utah District

Buffalo District


37~ PER HOUR
Cant~on-R;lassillon-M~ansfield Dis-
trict
South Ohio Rivrer District
Indiana-Illinois-St. L~ouis Distr~ict
35~ PER HOUR


Johnstown District
Duluth District
San Francisco District


Eastern District comprisingg ap-
proximatelyv north of the St~ate
of Virgoinia and East of Altoons,
Pennsylvania)


K~ansas City District
Los Angeles Dist~ric t


27~ PER HOUR
Birmingham District (Jefferso~n County, Al~abamas).
25~ PER HOUR
Southern District (all southeastern and south-central United Stadtes,
except Jefferson County, Alabama)
(Exceptions: Apprent~ices and Learners.))

All employees receiving on July 14th pay at a rate per hour in
excess of the common-labor rat.es then in effect are to receive a rate6
of pay per hour which shall be at least 15%0 above that of Jurly 14th,
but not a bove similar rates in1 the same district t paid by other members
who have made the 15%/ increase.
Piecework to yield on the average not less than the minimum
rate per hour for common labor.
While it. is apparent fromt the foregoing sunummryr by the D~ivision
of Economic Research and Planning t~hat the Industry as a whole
through its wage increases has made a genuine contribution toward
the objectives of National Industrial Recovery Act, nevertheless, it
should be stated that the Bureau of Economiic Research and Planning
does not necessarily give approval to t.he continuation of the w~age
differentials in the Code for the various districts but desires to study
this subject further in the light of pertinent data not nows available
but which it will collect and examine during tlhe 90-da~y period of
o bse rv nation .








Exceptions from the hour and wage provisions will be subject to
study and recommendations by the Administrator and his representa-
tives during the 90-day observation period.
PRODUCTION AND PRICE PROVISIONS

The production and price provisions of the Code provide for a,
present limitation on the construction of new furnace capacity and
possible future production control by the Directors, both subject to
the approval of the President of the United States; together~ with
adherence to listed prices, subject to control by the Directors, with
notice of decisions of the Directors to the President of the United
States. Prices are to be listed for a considerable number of basing
points and charged to include listed prices plus rail freight to the
points of delivery.
While the members of the Industry and the Industry Advisor
report that the scheme of the Code involves no substantial change from
present practices, a number of protests have been made against
alleged changes in basing points a~nd against the price provisions of
the Code as a whole. Protests have also been made against the control
of deductions for transportation costs cheaper than all-rail, against
the control of quantity discounts, and against the operation of through
rail rates on products fabricated in tra~nsit. The protestants have not
satisfactorily established their objections to the operation of the Code.
In view of the protests and the fa.r-rea~ching effects of the provisions
of the Code, it seems wise to provide for a 90-day period of experi-
mental observation of the operation of the Code. This period will
make it possible to insure that competitive conditions continue to
exist in the markets for steel, thazt competitors and purchasers of steel
receive adequate protection, and that the Industry has adequate
opportunities for reasonable stabilization of its business. F~or this
purpose, the Code as amended expressly provides t~ha~t the operation
of its provisions shall be subj ec t to scru tiny by the Admlinistrator of the
Recovery Act, and one or two representatives appointed by him.
These representatives may advise the Directors about the desirability
of modifying practices provided for in the Code; and they may further
recommend to the President the exercise of his reserved power to
cancel the Code.
It is to be observed that in partial compensation for increased
labor costs, the Steel Industry seems likely to derive substantial
market advantages from the- price-stabilization provisions of the
Code. While leaders in the Industry indicate that they would gain
no advantage by raising present prices, they evidently refer to pub-
lished official base prices. Members of the Industry have not, as
is conceded, been able to secure these prices uniformly under the
competitive conditions recently prevailing. On the other hand, it
seems likely that these prices will be firmer, and result in substantial
increases in profits, under the influence of provisions requiring publi-
cation of base prices and prohibiting concessions contained in the
Code. Further, the mere elimination of credit abuses should greatly
help the Industry. Sbiiaonopresmyhave a favorable
effect on employment and business generally. O h te ad
the operation of the market influences in question must be subjected
to careful observation by t.he representatives of the Admzinistration.







REPORTS AND STATISTICS

As amended, the Code provides for reports and statistics to be
furnished the Administrator on production, sales, conditions of em-
ploymient, prices, and other information necessary for the, purpose of
the Code (Art. V, Sec. 1; Art. IX, Sec. 5; Sched. E, Sec. 13; Sched. H,
See. h1).
ADMINISTRATION

The Code is to be administered by the ]Board of ~Direct.ors of thre
American Iron and Steel Institute. As finally submitted, recognizing
that questions of public inter~est are or may be involved, provision is
made for the Administrator and one or t.\o of his representatives to
attend meetings of t~he Directors, secure, information, and matke
recommendations relating to the administration of t.he Code and the
effectuation of Title I, National Industrial Recoveryv Act (Art. VI,
Sec. 7i).
FINDINGS
I have found that-
(a) The Code complies wit~~h t.he pertinent provisions of Title I,
National Industrial Recovery Act., including, without limitation,
subsection (a) of Sec. 7~, and subsection (b) of Sec. 10 thereof.
(b) The American Iron and Steel Inst~itute is truly representative
of thle Industry and imposes no ineqluitable restrictions upon ad-
missions to membership.
(c) The Code, as amended and finally submitted, imposes neces-
saryF conditions for the protection of consumers, competitors, and
employees, wTill not permlit monopolies or monopolistic practices, or
eliminate or oppress small enterprises, and will not operate to dis-
crmunna.te against them.
The Code has been approved by thne Labor Adivsory Board, the
Industrial Advisory Board, and the Consumers' Advisory Board.
I have, therefore, recommended azppr~oval of the Code, as amended
and finally submitted for a period of 90 days, as provided in Sec. 2 of
Art. XII t~hereof.
Respectfully submitted.
KE. MI. SIMrPSON, Deputy~ Admz~inistrator.

ExECUTIVE ORDER CODE OFE FEiAIR COMIPETITOION OR THE IRON AND
STEEL TNDUrSTRY

An application hlaving been dtly mlade, pursuant to and inl full com-
pliance wit~h the provisions of Tit~le I of the N~ational Indust~rial Rte-
covery Act., approved Julne 16, 1933, for my approval a Code of FIiair
Competition for the Iron and Steel Industry, and hearings having been
held thereon and t~he ALdmi nistrat or havi ng re ndered his report, together
w~ith his recommendations and finding with respect thereto, a~nd the
Admiinistrator having found that fthe said Code of Fair Competition
complies in all respects with t~he pertinent provisions of Tit~le I of said
Act and that t~he requirements of clauses (1) and (2) of subsection (a)
of Section 3 of the said Act have been met:
Now, therefore, 1, Franklin D. Roosevelt, President of the U~nited
States, pursuant to the authority vested inr me by Ttle I of t~he
9669--33--2








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.
(Signed) FRANKLIN D. ROOSEVELT.
Approval Recommended.
(Signed) HUGH S. JOHNSON,
Ad ministrator.
THE TVHITE HOUSE,
August 19, 1988.













CODE OF FAIR COMPETITION OF THE IRON AND STEEL
INDUSTRY

AQRTICLE I--DEFINITIONS
H~lrerever used in this Code or in any schedule anpprt.a~iningr hereto;
the t.er~ms hereinafter in this Art~icle and in Schedule E annexed her~eto
defined shall, unless the contextt shall otherwise clearly indicate, have
the respective meanings hereinafter in this Article and in such
Schedule E set forth. TIhe definit~ion.0f any such termn ini the singular
shall apply to the use of such term in the plural and vice. versat.
SECTION 1. The term "the Unit~ed States" means and includes all
of t~he territory of the ULnit~ed St~ates of Amlerica on thie NCIorth American
con tinen t.
SEc. 2. The t.erm t~he President means the President of the
United StaRtes of America.
SEC. 3. The term "'products"' means only pig iron, iron or steel
ing~ot~s, and the rolled or drawn ir~on or steel products which are gener-
ally named in Schedule F to the Code as at the tim~ein effect and stasnd-
ard Tee rails of more than 60 pounds per yard, angle bars and rail
joints, or any of such products.
SEC. 4l. The t~ermI "t~he Industry"' means and includes the business
of producing in the Unit~ed States andi selling products, or any of theml.
SEC. 5j. The term memberr of the Industry'" means and includes
any prson, f irm I~~ associ nation or orponrat~ion onpra t~in a plant or pl an ts
in the United St~ates for the production of products, or any of them.
SEC. tj. The t.erm the Code' means and~ includes this Code and all
schedulles atnnexed hereto a~s originally approved by the President and.
all amendments hereof and thereof made as hereinafter in Article XII
provided.
SEc. 7. The t.erm "'member of t.he Code means any member of the
IndustryT who shall haver become a member of the Code as hereinafter
in Section 3 of Article III provided.
SEC. 8. The (tem i' t 0 IDSltilt.9 BleaDS AmerleSD ITOn and Steel
Institute, a. New York membership corporation.
SEc. 9. The term "the Board of Directors" mleans the Boar'd of
Directors (as fromt time t~o t.imne const~itu ted ) of the Ilnstitute.
SEc. 10. The te~rm the Secretary means the secretary of the
Institute at. the time in o~ffice.
SEC. 11. The term the Treasurer' means the t~reasurer of the
Institute at the t~ime in office.
SEC. 12. The term ';unfalf prai.ctlce"' means and includes nny act
described as an unfair practice in Schedlule H annexed hereto.
SEc. 13. Wherever used in the Code w~ith reference to tht7e Industry
or any member of the Industry or any member of the Code, unless t~he
context shall otherwise clearly indicate.
(a) The term plant means only a. plant for the production of
one or more products in the Industry;








(b) The term "prices" includes only prices for products produced
in t~he Industry;
(c) The term "wa.ges" includes only wages for labor performed in
the Industry ;
(d) The term "labor means only labor performed in the Industry;
(e) The termi "hours of Inbor" or "hours of work" includes only
hours of labor or hours of work in the Industry and
(f) The termn employeee" means only an employee in the Industry.
SEc. 141. Thie term the National Induistrial Recovery Act means
the N'ationa~l Industrial Recovery Act a~s approved by the President
Ju ie 1 6, 1933.
SEC. 15. The term "'t.he effective date of the Code means the date
on which the Code shall have been approved by the President pur-
suant to the Na~tional Industrial RecoveryF Act.
SEC. 16. The term the Admninistrator means the Administrator
appointed by the President. under the Nat~ional Industrial Recovery
Act and at t.he time in office.
SEC. 17. The term the Administration means the agency estab-
lished pursuant to the provisions of Section 2 of the N\Yational Indus-
trial Recovery Act.

ARTICLE II--PURPOSE OF THE CODE

SECTION 1. The Code is adopted pursuant, to Title I of the National
Industrial Recovery Act..
SEC. 2. The purpose of the Code is to effectuate the policy of Title
I of the Nat~iona.1 Industrial Recovery Act insofar as it is applicable
to the Industry.

ARTICLE III--11EMIBERSHIP IN THE CODE
SECTION 1. It is of t~he essence of the Code that all members of
t~he Industry which shall comply w~ith the provisions of the Code
shall be entitled to participate in its benefits upon the terms and
conditions set. fourth in the Code.
SEc. 2?. Any member of t~he Industry is eligible for membership in
t~he C'ode.
SEC. 3. Any member of thie Industry desiringr to become a member
of t~he Code mayv do so by signing and delivering to the Secretary a
let~t.er suibstantially in the form set forth in Schedule A annexed hereto.
SEC. -1. The rules and regulations in respect of meetings of mem-
bers of' the Code are set. forth in Schedule B annexed hereto.

ARTICLE ITY-)IOURS OF LABOR, RATES OF PAY, AND OTHER CONDI-
TIONS OF EhIPLOYMhENT

SECTIov 1. Pursulant. to subsection (a) of Section 7 of the National
Indusltriarl Recovetry A~ct, and so long a~s t~he Code shall be in effect,
the Code shall be subject t~o t~he following conditions:
1.1) Tha~t employees shall have the right to organize and bargain
collectiv.ely through representatives of their own choosing, and shall
be fr~ee fromn the interference, r~estraqint, or coercion of employers of
labor, or their agents, in t.he designation of such representatives or
in self-orgainization 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 emplloym~ent shall be
required as a condition of employment, to join any company umion
or to reframn from joining, orgamizmg, or assisting a labor organnizat~ion
of his own choosing; and
(3) That employers shall comiply with the miaximumi hours of labor,
minimum rates of pay, and other conditions of employment, approved
or prescribedt bv t~he President.
SEC. 2. Since the beeginning of the present. depression and the con-
sequent reduction in the total number of hours of work~ availablle in
the Industry, its members have made every ecf3fort to distributed, and
with a remlarkable degree of success have distributed, the hours of
work available in their plants so as t~o give emnploymnent to the maxRi-
mum number of employees. It is the intention of the Industry to
continue that policy insofar as practicable, to the enId that the policy
of Title I of the National Industrial Recovery Act may be et~ec t.u nt~ed,
and that work in the Industry shall insofar as p~rActicable be dis-
tributed so as to provide emp~loyment for the emlployvees normally
attached to the Industry. The basic processes in the Industryy are
of a continuous character and they cannot be changed in this respect
without serious adverse effect upon production an~d employment.
As demand for the products of the industry and, therefore, for labor
shall increase, hours of labor for employees in the Industry must
necessarily increase; b ut., except. in the case of executives, those emn-
ployved in supervisory capacit~ites and in technical work and their
respective staffs and those employed in emiergency work, insofar as
practicable and so long as employees qualified for the workr required
shall be available in the respective localities w-here such worke shall be
required and havinga due regardl for t~he varying demands of the con-
sumling and processing industries for t~he respective products, none of
the members of the Code shall cause or permit, any employee to workr
at an average of more than 410 hours per weeki in any six months'
period or to w~ork more than 48s hours or more than 6 days in any one
week. On or after Novemiber 1, 1933, as soon as the members of thee
Code shall be operating at 60% of capacity~, they shall adjust the
operations of their plants so that, except as to execurtives, those em-
ployed in supervisory capacities and in technical work and, their re-
spective staffs alnd those employed in emergency w5or~k, they will
establish the 8-hour day for all their employees. For the purposes
of this Section 2 the first six months' period for eachz emlployee in t~he
employ of any member of the C~ode at t.he detective date thereof shall
begin wit~h that, date, and t~he first six months period for anyq employees
thereafter employed by any member of t~he Code shall begin with the
date of employment of such emlployee by such mnemb~er. After the
date of the employment by any member of the Code. of anly emnployee
such member shall not knowingly permit such employee who atlso
shall have performed work for one or more other employers to wcork
for such member such number of ours as w~ou~ld result in a violation
of the Code had all such work been performed for such member.
SEC. 3. NOne of thbe members of the Code shall emiplov in or about
it~s plants in the Industry any person under 16 years of age.
SEC. 4. ThrOughout the history of the Indu~stry geogralphIicl walge
differentials have existed, due in the main to differences in living costs
and general economic conditions and the ability adequately to manz
the industries in the respective localities. The Yestablishment~s in t.he








Industry in the different localities have been developed under such
differences in wages and, after a, survey of the matters bearing on
such differences in the various sections of the United States, for the
purposes of this Article IV the wage districts described in Schedule
C annexed hereto have been established.
SEc. 5. Until changed by amendment of the Code as hereinafter
in Article XII provided, the minimum rates of pay per hour which
shall be paid by members of the: Code for common labor (not includ-
ing that of apprentices and learners) in the Industry in the respective
wage districts described in such Schedule C shall, be the rates set
forth in Schedule D annexed hereto. None of the members of the
Code shall pay common laborers (not including apprentices and
learners) in its employ in the Industryv in any such district a~ny rate
of payv less than the rate specified for such district in such Sch~edule
D, and a.ny violation of this provision of the Code shall be deemed
an unfair practice. Such rates of pay shall not, however, be under-
stood to be the maximum rates of pay for their respective districts,
but, until changed as aforesaid, none of the members of the Code
shall be required to pay its common laborers in the Industry in any
of such districts a rate of pay higher than the rate specified for such
district in such Schedule D, except as such member shall have agreed
to pay suIch higher rat~e in any agreement heretofore! or hereafter
made byr suIch member lit~h its employees. Until this provision shall
have been changed by amendment as aforesaid, each member of the
Code will pa.y to each of its employees in the Industry who on July
14, 1933, was receiving pay at a rate of pay per hour in excess of the
rate of pay~ per hour then being paid by such member for common
labor a. rat~e of pay per hour whlich shall be ait least 15%0 greater than
that which such employee was then receiving; provided, however,
that, thel foregoing provision shall not be. so construed as to require
any member of the Code to make a~ny increase in the rate of pay
per hour to be paid by such mlember to any of its employees in any
wage district that will result in a. rate of pay per hour which shall be
higher than the rate of pa~y per hour paid to employees doing sub-
stant~ially the same class or kind of labor in thle same wage district
by any other member of the Code which shall have increased its
rates of pay per hour in accordance with such provision. In the case
of employees (not including apprentices and learners) performing
work for which they are paid per piece of work performed, thle mlini-
mnum rate of pay which each member of t.he Code shall pay for such
work shall be sufficient to produce at the average rate of performance
of such w'ork at the time prevailing at the plant of such member
where such work is performed the minimum rate of pay per hour
provided in the Code for common labor at such plant.
ARTICLE V -PRODUCTION AND NEW CAPACITY
SECTIONN 1. It. is the consensus of opinion in the Industry that it
is not necessary, in order to effectuate: the policy of Title I~ of the
National Industrial Recovery Act., t~o make any specific provision in
the Code for controlling or regulating the volume of production in the
Industry or for allocating production or sales among its members.
It is believed t~hatt t~he elimination of unfair practices in the Industry
will aut~omwt~ically eliminate any overproduction therein and any








alleged inequities in the distribution of production and sales among
its members. Adeqluaite provision shall be made under thle Clode for
the collection of statistics regarding production and2 of other da~ta
from which it mlay be determined fromt t~ime to time whether over-
production in the Industry exists and whether in thze circumstances
any restriction of production is necessary mn ordler to effectuate the
policy of Title I. The Board of Directors shall furnish to the Ad-
ministrator summatries or contpilat.ions of such statistics a~nd other
data in reasonable det~ail. Should it at any timne in thle circumstances
as they shall then exilst appear to the Board of Directors that the
policy of such Title I wll not be effectuated in the Industryv because
of the fact that through the Code production therein is not controlled
and regulated, then the Board of Directors is hereby emnpowered, sub-
ject t~o the approval of t~he President after such conference with or
hearing of interested persons as he may pr~escribe, to make, modifyv,
or rescind such rules and regulations for the purpose of conltrollinga
and regulating production in the Industry, including the fixing of
such liqu~idatted damages for violations of suchl redles antd regulations,
as such Board shall deemt t.o be necessary~ or proper in order to eff'ee-
tuate t~he policy of such Title I. All such rules and regulations from
time t~o time so made and in effect shall be binding upon each mem-
ber of the Code to which notice t~her~eof shall have been given.
SEc. 2. It, is also t~he consensus of opinion in the Inidustry that,
until such time as the demandl for its products cannot adequately be
mnet by the fullest. possible use: of existing capacities for producing
pig iron and steel ingots, such capaccities should not be increased.
Accordingly, unless and until t.he C~ode shall have been amended as
hereinafter provided so as to permlit it, none of the mtemtbers of the
Code shall initiate tihe construction of any new~ blast furnace, or open
hearth or Bessemer steel capacity. The President mnay, how~ever,
suspend t.he operation of the provisions of this section.
ARTICLE VTI--ADMINISTRATION OF THE CODE
SECTION 1. The adinilnstrantion of t.he Code sh~all be under the
direction of t~he Boatrd of Directors. Thle Boardtl of Directors~ shall
have all the powers and duties conferred upon it by the Code and
generally all such other poerrs and duties as shall be necessary or
proper to enable it. fully t~o adminiister the C'ode and to effectuate its
purpose.
SEC. 2. The Secretary shall act as Secretary under thhe Code.
Under t~he direction of the Board of Direct~ors, he shall keep all books
(except books of account) a~nd records under the Code and, except as
such Board shall otherwise provide, shall collect, file, and collate all
statistics and other information required by the Board of' Directors
for the proper administration of the Code.
SEC. 3. The Treasurer shall act as Treasurer under t~he Code and,
under the direction of the Board of Direct~ors, he shall have custody
of, and have charge of t~he disposition of, all funds collected under the
Code;r and he shall keep proper books of account showing t~he collection
and disposition thereof.
SEC. 4. The Board of Directors shall have power fromt time to
time (a) t~o appoint and remove, and to fix the compensation of, all
such other officers and employees and all suchi accountants, a attorneys,








and experts as the said Board shall deem necessary or proper for the
purpose of administering the Code'and (b) to fi the compensation of
the Secretary and the Treasurer for their services mn acting under t~he
Code.
SEc. 5. The expenses of administering the Code shall be borne by
the members thereof. The Board of Directors may from time to time
make such assessments on account of such expenses against the mem-
bers of the Code~ as it shall deem proper, and such assessments shall
be payable as such Board shall specify. The part of such expenses
which shall be assessed against each member of the Code shall bear
the same relation to the total thereof as the number of votes which,
pursuant to the provisions of the Code, such member might cast at a
meeting of the members thereof held at the time of any such assess-
ment shall bear to the total number of votes that might be cast
threat by a~ll the then members of the Code. Failure of any member
of the Code to pay the amount of any assessment against such member
for a period of thirty days after the date on which it became payable
shall constitute a violation of the Code.
SEc. 6. The Board of Directors may from time to time appoint
such committees as it shall deem necessary or proper in order to
effectuate the purpose of the Code, and it may delegate to any such
committee generally or in particular instances such of the powers and
duties of the Board of Directors under the Code as such Board shall
deem necessary or proper in order to effectuate such purpose. Any
member of any such commiittee may be a members of the Board of
Directors or an officer or a director of a member of the Code or a
person not having any official connection with any member of the
Code or with the Institute, as the Board of Directors shall deem
proper.
SEC. 7. The members of the Code recognize tha~t questions of public
interest are or may be involved in its administration. Accordingly,
representatives of the Administration consisting of the Administrator
and one or two other persons appointed by him (wNho shall be persons
not having or representing interests antagonistic to the interests of
members of the Industryv) shall be given full opportunity at such times
as shall be reasonably convemuent to discuss with the Board of Di-
rectors or any committees thereof any matters relating to the admin-
istration of the Code and to attend meetings of the Board at which
action on any such matters shall be undertaken and to make recom-
mendations as to methods or measures of administering the Code.
Due notice of all such meetings of the Board of Directors shall be
given to such representatives of the Administrtation. The records
of the Board of Directors relating in any way to t~he administration of
the Code shall be open to such representatives at all reasonable times.
They shall be afforded by the Board of Directors complete access at
all times to all records, statistical material, or other information
furnished or readily available to the Board of Directors in connection
with, or for the purposes of, the administration of the Code. The
Board of Direct.ors, acting directly or through one or more committees
appointed by it, shall give due consideration to all requests or recom-
mendations made by such representatives of the Administration and
render every possible assistance to such representatives in obtaining
full information concerning the operation and administration of the
Code, to the end that the President may be fully advised regarding








such operation and administration through reports that. may be made
to him from time to time by such representatives, and 1.0 thet end that,
the President may be assured that the Code and the administration
thereof do not. promote or permit monopolies or monopolistic prac-
tices, or eliminate or oppress small enterprises, or operatte to discrimn-
inat~e against them and to provide adequate protection of consumers,
competitors, employees, and others concerned and that, they are in
furtherance of the public interest. and operate to effectuate the pur-
poses of Title I of the National Industrial Recovery Alct.
ARTICLE VII---PRICES ANLD TERMSS OF PA.IMENTT

None of the members of t~he Code shall make any sale of any
product at a price or on terms and conditions more favorable to the
purchaser thereof than the price, terms, or conditions established by
such member in accordance with the provisions of Schedule E: annexed
hereto and in effect at the t~ime of sucht sale; nor,~ except as otherwise
provided in such Schedule E, shall any member of the Code make any
contract of sale of any product at, a price or on terms and conditions
more favorable to the purchaser thereof than the price, terms, and
conditions established a~s aforesaid and in effect, at the time of the
making of such contract of sale.

ARTICLE VIII--UNFAIR PRACTICES

For all purposes of the Code t~he acts. described in Schedule. H
Annexed hereto shall cons titu te unfair practices. Such unfair
practices and all other practices which shatll be declared to bet unfair
practices by the Board of Directors as provided in paragraph M: of
such schedule H or by any amendment t~o the Code adopted as here-
inafter in Article XII provided and at the time in1 effect, shall be
deemed to be unfair methods of competition in commerce withi
the meaning of the Federal Trade Commission AcL~t, as amended,
and the using or employing of any of them shall be. deemed to be a
violation of the Code, and any member of th~e Inr~dustr whch1 shall
directly or indirectly, through any officer, employee, agent, or repre-
se~nt~ative,~ knowingaly use or employ any of such unfair practices, shall
be guilty of a violation of the C~ode.

ARTICLE X -REPORTS AND STATISTICS

SECTION I. The Board of Directors shall have power fromn time to
time to require each member of t~he Code t~o furnish to the Secretary
for the use of t.he Board of Dir~ectors such information concerning
the production, shipments, sales, and unfilled orders of such member
and the hours of labor, rates of pay, and other conditions of employ-
ment at the plant or plants of such member and such other informa.-
tion as the Board of Directors shall deem necessary or proper in
order to effectuate the purpose of the Code a~nd the policy of Title Ii
of the Nat~ional Industrial Recovery Art. The Board ofr Directors
may reqture that any such information be furnished periodically
at such times as it sh~all specifyv and mayv require that any or all
information furnished be sworn to or otherwise certified or authen-
ticated as it shall prescribe. Failure of any member of t.he Code
966E-33--3





16


promptly to furnish to the Secretary information required by. the
Board of Directors and substantially in the form prescribed by It,
shall constitute a violation of the Code. The Board of Directors
shall not require any information regarding trade secrets or the names
of the customers of any member of the C~ode.
SiEc. 2. Any or all information furnished to the Secretary by a~ny
member of the Code shall be subject t~o checking for the purpose of
verification by an examination of the books and accounts and records
of such member by any accountant or accountants or other person or
persons designated by the Board of Directors, and shall be so checked
for such purpose if the Board of Directors shall require it. The cost
of such examination shall be treated as an expense of administering
the Code; provided, however, that, if upon such examination any such
information shall be shown to have been incorrect in any material
respect, such cost shall be paid by the member of the Code which
furnished such information.
SEC. 3. 1110 BOard of Directors shall require the members of the
Code from time to time to furnish such information as shall be neces-
sary for the proper administration of the Code.
SEC. 4. TO the 8Xtet8R 611& the BOard of Directors may deem that
any information furnished to the Secretary in accordance with~ the
provisions of the Code is of a confidential character in the interest
of the member of the Code which shall have furnished it and that the
publication thereof is not essential in order to effectuate the policy
of Title I of the National Industria~l Recovery Act, such information
shall be treated by the Board of Directors and by the other members
of the Code, if any knowledge of it shall have come to them, as strictly
confidential; and no publication thereof to anyone or mn any manner
shall be made other than in combination with similar information
furnished by other members of the Code, in which case the publica-
tion shall be made only in such manner as will avoid the disclosing
separately of such confidential information.
SEC. 5. Summaries or compilations in reasonable detail of all in-
formation which shall be furnished to the Secretary pursuant to the
provisions of this Article IX shall be made periodically and sent to
the Administrator.

ARTICLE X--PENALTIES AND DAM1AG'ES
SECTION 1. Any violation of any provision of the Code by any
member of the Industry shall constitute a violation of the Cod~e
by such member.
-SEC. 2. Recognizing that the violation by any member of the Code
of any provision of Atrticle VII or of Schedule E of the Code will
disrupt the normal course of fair competition in the Industry and
cause serious damage to other members of the Code and that it will
be impossible fairly to assess the amount of such damage to any
member of the Code, it is hereby agreed by and among all members
of the Code that each member of the Code which shall violate any
such provision shall pay to the Treasurer as an individual and not
as treasurer of the Institute, in trust, as and for liquidated damages
the sum of $10 per ton of any products sold by such member in viola-
t~ion of any such provision.








SEC. 3. Except in cases for which liquidated damages are fixed in
the Code and in cases which shall give rise to actions in t.ort in favor
of one or more members of the Code for damages suffered by it or
them, the Board of Directors shall have pow-er from time t~o t~ime to
establish the amount of liquidated damages payable by any member
of the Code upon the commission by such member of anyT act con-
stituting an unfair practice under the Code and a list of the amounts
so fixed shall from time to time be filed with the Secretary. Upon
the commission by any member of the Code of any act constituting
an unfair practice under the Code and for which liquidated damages
are not fixed in the Code or which does not give rise to an action in
tort in fa.vor of one or more members of the Code for damages suffered
by it or them, such member shall become liable to pay to the Treasurer
as an individual and not as treasurer of the Instit~ute, in trPust, liqui-
dated damages in t~he amount at the time established by the Board
of Directors for such unfair practice and specified in the list then on
file with the Secretary: as atforesa~id.
SEc. 4. All amounts so paid to or collected by the Treasurer under
this Article X or under Section 4 of Schedule E of the Code shall be
held and disposed of by him as part of the funds collected under the
Code, and each member of the Code not guiltyr of the unfair practice
in respect of which any such amount. shall have been paid or collected
shall be credited with its pro rata. share of such amount onl account of
any and all assessments (other than damages for v-iolaztion of ancy
provision of the Code) due or to become due fromt such member under
the. Code, or, in t~he case of any excess, as shall be determiined by the
Board of Directors, such pro ratal share to be comlputed on the same
basis as the last previous assessment made against such member on.
account of the expenses of administering the Code as hereinbefore in
Section 5 of Article VI: provided. All rights of any persons who shall
at any time be the Treasurer in respect of any amounts which shall
be payable to him because of the commission by any mlember of the
Code of any act constituting an unfair practice under the Code,
whether payable under the provisions of this Art~icle X or under an~y
other provision of the Code, shall pass to and become vested in his
successor in office upon the appointment of such successor.
SEC. 5. Each member of the Code by becoming such member agrees
with every other member thereof that the Code constitutes a valid and
binding contract by and among all members of the Code, subject,
however, to the provisions of Section 6i of Article XI, and that, in
addition to all penalties and liabilities imposed by statute, any v-iola-
tion of any provision of the Code by any member thejreof shall con-
stitute a breach of such contract and shall subject the mlemlber
guilty of such violation to liabilityT for liquidated damages pursuant
to the provisions of the Code. Each member of the Code by becom-
ing such member thereby assigns, transfers, and delivers to the Treas-
urer as an individual and not as treasurer of the Institute, in trust,
all rights and causes of action whatsoever which shall thereafter
accrue to such member under the Code for such liquidated damages
by reason of any violation of the Code by any other member thereof,
and thereby designates and appoints the Treasurer as such~ individual
the true and lawful attorney in fact of such mlember to demand, sue
for, collect, a.nd receipt for any and all amounts which shall be owing
to such member in respect of any such right or cause of action, and to








compromise, settle, satisfy, and discharge any such right or cause-of
action, all in the name of such member or in the name of the Treasurer
individually, as he shall elect.
SEc. 6. Anything in the Code to the contrary notwithstanding, the
Board of Directors by the affirmative vote of two thirds of the whole
Board may waive any liability for liquidated damages imposed by or
pursuant to any provision of the Code for any violation of any pro-
vision thereof, if in its discretion it shall decide that such violation
was innocently made and that the collection of such damages will not
to any material extent tend to effectuate the policy of Title I of the
National Industrial Recovery Act.
ARTICLE XI--GENERAL PnovisxoNs
SECTION 1. Any notice, demand, or request required or permitted
to be given to or made upon any member of the Code shall be sufficiently
given if mailed postage prepaid addressed to such member at the
address of such member on file with the Secretary. A waiver in
writing signed by any member of the Code of any such notice, demand,
or request and delivered to the Secretary shall be deemed to be the
equivalent of a notice, demand, or request duly given or made, whether
or not such waiver was signed and delivered before the time when
such notice, demand, or request was required or permitted to be givezij
or made.
SEC. 2. Nothing contained in the Code shall be deemed to consti-
tute the members of the Code partners for any purpose. None of
the members of the Code shall be liable in any manner to anyone for
any act of any other member of the Code or for any act of the Board
of ~Directors, the Treasurer or the Secretary, or any committee, offcer,
or employee appointed under the Code. None of the members of
the Board of Directors or of any committee appointed under the
Code, nor the Treasurer, nor the Secretary, nor any officer or employee
appointed under the Code, shall be liable to anyone for any action or
omlission to act uilder the Code, except for his wilful misfeasance or
non fen sance. Nothing contained in the Code shall be deemed to confbr
upon anyorie other than a member of the Code any right, claim,''br
demand whatsoever not expressly provided by statute against any
member of t~he Code or a.ga.inst any member of the Board of Directors
or of any committee a.ppoint-ed under the Code or against the Treas-
urer or t.he Secret~ary or any officer or employee appointed under the
Code.
SEC. 3. As soon a~s members of the Industry which would, if then
members of the Code, have the right to cast at least 75%0 of all the
votes that might be cast at a mzeetingothmebrofheCdi
a~ll members of the Industry were tho then members of the Code, ad
present at such meeting, shall sign and deliver to the Secretary letters
subst~ant~ia~lly in the form set forth in Schedule A annexed hereto, the
Board of Director shatll submit the Code to the President pursuant
to the provisions of Title I of the National Industrial Recovery Act
and, upon the a.pprovall of the Code by the President pursuant to the
provisions of such Title I, it shall constitute a binding contract by
and among the members of the Code and the provisions thereof shall
be the standards of fair competition for the Industry; subject, however,







to a~mendmlent or terminationi as hereinafter in Article XI~I prov~ided,,
and subject also to the provisions of Section 6 of this Article XI.
SEC. 4. To the extent required or made possible by or under th~e
provision of Title I. of the National Industrial ~Recovery Act t~he pro-
visions of the Code shall apply to and be binding upon every member
of the Industry whether or not such member shall be a member of
the Code.. No member of t~he Industry which shall not also be a
member of the Code shall be entitled to vote at any meeting of mem-
bers of the Code or to any other right, power, or privilege provided
in the Code for the members thereof.
SEC. 5. The Board of Directors shall have power from time to
time to interpret and construe the provisions of the Code, including,
but without any limitca~tion upon the foregoing, the power to deter-
mine w~hat. are p lroduts9 it~hin t~he mea ning of that terml as it is used
in the Code. Any interpretation or construction placed upon t~he
Code by the Boa~rd of' Directors shall be final and conclusive upon
all members of the Code
SEc. 6. The members of t~he Code recognize that, pursuant to sub-
section (b) of Section 10 of the National ]Industrial Recovery Act,
the Pr~esid'ent may from t.imle t.o time cancel or modify any order,
approval, license, rule, or regulation issued under Title I of said Act.
A ARTICLE I I-AlBl EN DMIENTS----TERMI NATION

SECTION 1. The Code may be amended at anzy time in the manner
in t~his Section 1 provided. The changing of any schedule hereto or
the addition hereto of any new schedule shall constitute an am~end-
ment of the. Code. All amendments shall be proposed by the Board
of Directors by v.ote of the majority of the members thereof at the
timie in office. Each amendment so proposed shall be submitted to
a meeting of t~he members of the Code which, shall be called for such
purpose upon notice given in accordance with t~he provisions of Sec-
tion 1 of Schediule B and Section 1 of Article XI: of the Code. If at
sucrh meetings mlembcer of thel Co(de havingr the right to east at least
75% of all the votes that might be cast at such meeting, if all the
members of t.he Code were present threatt, shall vote in favor of the
adoption of such amendmentt, such amendment shal be submlitted
by the Board of Direet.ors t~o the President for approval, if approval
thereof by himn shall then be required byv law~. 1Every such, amend-
mient shall take effect as a part, of the Code uipon the adoption thereof
by the members of the Code a~s above provided and the approval
thereof by the President., if atpprova~l thereof b;y' him shall be required
a.s aforesaid.
SEc. '2. The Code shall continue in effect for a period of ninety
(90) da.ys after the effective date thereof, in order to alffordi to the
President, an opportunity to determine upon the recommendations
of the representativess of the Administration, for which provision has
heretofore been made in Article V'I, whether its provisions will effee-
tuate t~he purposes of Title I of the National Industrial Recovery
Act., as further defined in said Article VI, subject., however, to amiend-
mlent at any t.imle as hereinbefore provided, anid also subject to t~he
reserved power of the President to cancel or miodify~ his approval
thbereof. The Code shall continue in effect. after the expira~tion of
said period of ninety (90) days in t~he absence of the exercise of surch






20

reserved power on the part of the President, or in the absence of
the exercise by members of the Code of the power which they hereby
reserve to terminate the Code at any, time aftern the expiat iono
said period of ninety (90) days bythsmeciobyhmasi
above provided for the amendment thereof. When so terminated all
obligations and liabilities under the Code shall cease, except those
for unpaid assessments theretofore made in accordance with the
provisions of the Code and those for liquidated damages theretofore
accrued under any Ijrovision of the Code.
AUGUosT 17, 1933.



















SCHEDULE A--FORMI OF LETTER OF ASSiENT! TO THE: CODEH


To the Secretary of American Iron and Steel Institute, Empire State Building,
Newu York, N. Y.
DEAR SmR: The undersigned, desiring to become a memer of th~e Code of
Fair Competition of the Iron and Steel Industry, a copy of which is annexed hereto
marked Annex A, hereby assents to all of the provisions of, said Code (herceinaf~ter
referred to as the Code), and, effective as of the date on which the Code: shall
have been approved by the President of the United States of America as therein
provided, or as of the date on which this letter shall have been delivered, if
delivery thereof shall have been made subsequent to the date of which the Code
shall have been approved by said President as aforesaid, by the~ signing and
delivery of this letter becomes a member of the Code and effective as aforesaid
hereby agrees with every person, firm, association, and corporation whoe shall
then be or thereafter become a member of the Code that the Code shall constitute
a valid and binding contract between the undersigned and all such other members.
Effective as aforesaid, pursuant to Section 5 of Article X of said Code, the
undersigned (a) hereby assigns, transfers and delivers to; the Tsreasrr under the
Code, as an individual and not as treasurer of American Tron and Steel Institute,
in trust, all rights and causes of action whatsoever hereafter accruing to the
undersigned under the Code for liquidated damages by reason, of any violation
thereof by anyone, and (b) hereby designates and appoints said Treasurer as
such individual the true and lawful attorney in fact of the undersigned, to de-
mand, sue for, collect, and receipt for any and all amounts which shall be owing
to the undersigned in respect of any such right or cause of action, and to comn-
promise, settle, satisfy, and discharge any such right or cause of action, all in
the name of the undersigned or in the name of said Treasurer, as said Treasurer
shall elect.
For all purposes of Section 1 of Article XI of the Code the address of the under-
signed, until it shall file with the Secretary of American Iron and Steel Institute
written notice of a change of such address, shall be as set forth at the foot of this
letter.
Very truly yours,
(21)























SCHEDULE B--THE RULES AND REGULATIONS IN RESPECT OF MVEETING8B OF
IVIEMBERS OF THE CODE

SECTION 1. A meeting of members of the Code mayS be called and held at any
time by order of the Board of Directors, or by members of the Code having the
right to east at least 50%0 of all the votes that might be cast at such meetings if
all the members of the Code were present threat, on not less than three days'
notice to each of such members stating the time and place of such meeting and
the purposes thereof.
SEC. 2. At each meeting of the members of the Code each member thereof
shall have as many votes as shall equal the quotient obtained by dividing by
500,000 the aggregate amount in dollars of the invoiced value of the products
delivered by such member for consumption within the United States during the
preceding calendar year. Fractions in such quotient shall be disregarded; pro-
vided, however, that each member of the Code shall have at least one vote. All
questions as to the number of votes which each member of the Code shall be en-
titled to cast at any meeting of the members thereof shall be determined by the
Board of Directors. Any person or firm who shall be a member of the Code may,
and any association or corporation which shall be a member of the Code shall,
vote at meetings of the members of the Code by proxy in writing duly executed
by such member and filed with the Secretary. Any such proxy may be for a
specified meeting or be a general proxy for any or all meetings that may be held
until such proxy shall have been revoked by an instrument in writing duly exe-
cuted by the member of the Code which gave such proxy and filed with the
Secretary.
SEC. 3. At each meeting of the members of the Code, members thereof having
the right to cast at least 75%~ of all the votes that might be cast at such meeting
if all the members of the Code were present threat, shall constitute a quorum for
the transaction of business at such meeting.
(22)












SCHEDULE C--DESCRIPTION Or WJAGE DISTR1ICTS


1. Eastern~ District.-Comprises that part of the United States which is north
of the State of V'irginia, and east of a line drawn north and south through the
most. easterly point of Altoona, Pennsylvania; t~hat part of the State of M~ary~-
land which is w~est of such line; and the Counties of Monongalia, Marion, and
Harrison in the State of West Virginia.
2. Joh nstownlt Dist ric.- Comprises Cambria C~ounty and thle Cityr of Altoona
in the State of Pennsylvania.
3. Pittsb urgh District .-Comprifses the Counties of Westmoreland, Fayette,
Greene, W'ashingt~on, Allegheny, Beaver, Butler, Armlstrong, and Jeffe~rson and
that part of the County3 of Clearfield which is west of a line drawn north and
south through the most easterly point of Altoonab, all in the State of Pennsyl-
VRDER.
4. Y'oun~gstown Ialley District.--Comprises the Counties of Lawrence, M~ercer,
and Venango in the Stat~e of Pennsy~lvania and the Counties of Trumbull, Ma-
honing, and Columbisans in the State of Ohiio.
5. North Ohio Riv~er District.--Comprises the cities along the Ohio River
north of the CitSy of Parkersburg, West Virginia, and the Counties of Belmont
and Jefferson in the State of Ohio and the Co~unties of Marshall, Ohio, Brook, and
Hancock in the State of W'est irginia.
6. Canton, Mlassillo~n, and ansj~qield District.--Comprises3 the Counties of
Stark, Tuscarawas, Summit., and Richland in the State of Ohio.
7. C'levela nd Dist ricl.--Com prises the Counties of Ashitabula, Lake, Cuyahoga,
and Lorain in the State of Ohio.
8. Bufahlo District.-C~omprises that part of thre State of New~ York west of a
line drawn north and south through the most easterly- point of Altoona, Penn-
sylvania, and Erie County in that. State.r l F
9. Detroit- Toledo District.-C-o~prises the Cjountiles of Seneca and Lucas in
the State of Ohio and thle Counties of Monroe, Lenawee, Jackson, WPayne3,
Oakland, M~acomnb, and Wanshtenaw in the State of Michigan.
10. South Oh io Rivler D~istrict .-Conmprises the State of K~entucky-, the City of
Parkiersburg, W.Yas., the cities along the Ohio River south of said City, the
Counties of Guernsey, Muskinggum, Jackson, and Butler in the State of Ohio
and the Count.y of W'ood in the State of W'est Virginia.
I1. Inldia na-Illinois-St. Loutis District.--Comprises all the State of Indianoa,
except the Counrty of Lake; all thle State of Illinois, exe~pt the Counties of Lake
andDu ageand t~he Chicago Sw~itching District; the City of St. Louis and the?
of W'isconsin.
12. Chlicago District.-Comprises the Chicago Swvitching District; the Counties
of Lake and Du Page inl t.h~e State of Illinois; the County of ]Lake in thie State of
Indiana; and the Coulnties of Kenosha, Racine, and Mlilwauk~ee in thze State of
Wisconsin.
13. Southern District.--Comprises all thnat part of the Unlited State~s south of
the States of Manryland, WVest Virginia, Kentucky, and MIissouri, and thne States
of Texats and Oklahlomai, b:ut does8 not include the County of Jefferson in the State
of Alabamas.
141. Bl',iringhami District.-~Comprises the Cou nt y of Jefferson in the State of
Alabama.
15. Kan~sas CitU~ District.--Comlprises the! County of Jackson in the State of
M~issouri.
16. DulthB Districl.--Com prises t.he County of St. Louis in the State of
Mlinnesota.
17. Coloradlo Distril.--Comprises the State of Colorado.
18. Utanh Dist rict.--Co mprises the! StaLt e of Utah.
19. Seattle District.--Comprises the County of King in the Stat~e of Wtashing-
ton and the County of M~ultniomah in the State of Oregon.
20. San FranRcisco District.--Com prises t he Count ies of Ban Masteo, Ala medal,
Sacramento, a.nd Contra Costa. in the St.ate of California.
21. Los Aingeles Dist rict.--Com prises the County~ of Los Angeles in the Stae
of Californiia.
(23)






































ScHEDULE D-MI~ZNInsu~ RATES OF PAY FOR COMMON LABOR
Per hour
1. Eastern Distne~t.--_-------------------_____ ............ ..... 80. 35
2. Johnstown District...____ ._________ ...__--.................... .37
3. P~ ~ittsburgh Distrc t... .. .. .. . .40
4. Y'oungsto wn Valley Dist rict.... .. .. .. 40
5. North Ohio River District.................................. ..... ,40
6. Canton, Alassill~on,and Muansfiehi District .......... ... ......._ .37
7. Cleveland D istrict...... ...... ..... .. ... .... .... ..... .40
8. IBuffalo D istrict... ..... ..... ..... ... ..... ..... ..... .38
9. Detroit-Toledo D istrict.._._--- ................................ 40
10. South Ohio ]River Dist~rict..... ...... .......... .......... .37
11. Indiana-lllinois- St. Louis District..._ __ ... ... ... ___ 37
12. Chicago District............ ....... ______ ......40
1 3. Southern D ist rict.. .. .. .. ........ ___ ___ ___ ___ ... .. ___ 25
I14. Birmingham IDistrict........__ ... .. ......__............. .27
15. Kansas Cityr District..----- ..................... ......... .. .35
16. Dauluth District...--~- .........--___ ............. ...... ... .37
17. Colorado Dist~rict............... .... ....... .... _. ....--- .40
18. Utah D istrict...... ............. .._ __ .. 39
19. Seattle District.. .. .. __ .. ,--- 38
20. San Francisco District.. . .. .. ___-__-_-___------- 37
21. Los Angeles District.. ..___________...___ _...... .__ __ 35

(24)













SCHEDULE E--CONCERNING PRICES AND TERMS OF ]PAYM16ENT

SECTION i.' IWherever used in t.he Code t~he terms hereinafter in this Sectionr
1 defined shall, unrless the context shall otherwise clearly indicate, have the
respective meaninges hereinafter in this Section 1 set forth. The definition of
any such term inl the singular shall apply to the use of such term in the plural and
vice verSe.
(a) Urntil Schedule F of this Code shall haver been amended as in Articlet XII
of the Code provided, the term "'basing point" for a~ny product means one of the
places listedl in such Schedule F as a basing point for such product. Thereafter
the terml shall mean one of the places listed in, such Schedule F as at ther time in
effect as a basing point. for such product.
(bi The term "bhase price" of any product means the price for such product
f.o.b. a basing point, before any extras in respect of such product shall be added
or any discounts for early payment o~r deductions shall be allowed or made.
(3'1 The term "'period of free credit means the period of time between the
date of a shipment of a product. to the purchaser of such, product and the date
from and after which such purchaser shall be required to pay interest on, the
purchase price of such product or any part thereof which shall not have been
paid prior to the expiration of such period.
id) The termn "date of invoice"' means the date of the invoice of any product.
(ei The term "discounlt for early pay-ment "" means the amount of the deduct ion
allowed for the: paymenlt of an invonice of products before the expiration of the
period of free credit in respect thereof.
(f) The term "'an affiliatted group" means one or more corporations connected
through stock ownership w~ith a common patrenit corporation, if (1t) at least 75%'
of t he st ock of each oif sulch corporate ions except such common. pa rent corpora tion)
is owned directly by3 one olr more of thle other corporations, anld (2) su~h. commonl
p~arenlt corpo:rat:Ion ow.ns directly at least 75%L of the stock of at least one of the
other corporations. The term "an affiliated company of a member of the Code'"
means (1) a corporation which is one of an affiliated group that also includes
such member of the Code, or (2., in case the member of the Codeis a person,
firm, olr association, a corporation at least 75% of the stock of which is owned by
such member. For th-e purposes of this paragraph (f) the term "stock" does not
include no-nvoting: stock which is limited and preferred as to dividends.
SEC. 2. Each mlember of t~he Code shall, within ten days after the effective
date of the Code, file w~it~h thle Secretanry a list showing the base prices for all its
products, and from anid after t~he expiration of such ten days such member shall
at all times maintain on file w~ith t.he Secretary a list showing th~e base prices for
all its products and shall not make any change in such base prices except as
provided in this Schedule E. Each such~ list. sh-all state the date upllon which it
shall b~ecomle effective, which date shall be not less than ten days after the date of
Sailing such list w~ith the Secretary; provided, however, that the first list of base
prices filed by any member of t.he Code as above provided shall take effect on
the dat.e of filing thereof. None of t~he base prices shown in any3 list filed by any
member of the Code as herein provided shall be changed except, by the filing by
such member w~ith the Secretary of a nlew list of its base prices, which shall
become effective on the effective date thereinl specified whiich shall not be less
than ten days after the date on which such new priet list shall have been so filed.
In the case of pipe of sizes or kinds which are sold on a list and discount basis,
for the purposes of this Section 2 the list of base prices shall consist of a price list
and one or more basing discount lists, from which the base prices of such pipe
shall be determined; provided, however, that in the case of oil country tubular
goo~ds there shall be filed in lieu of a list of base prices a price list and one or more
basing discount lists from which the delivered prices of such goods shall be
determined.
SEc. 3. Except as hereinafter otherwise provided in respect of standard Tee
rails of more than 60 pounds per yard, angle bars, and rail joints, the base price
for any product shown in any: list. of base prices filed by a member of the Code
in accordance with the provisions of the foregoing Section 2 shall be as follows:
(25)









(a) If such member shall operate a plant for the production of such product
which is located at a basing point for such product, f.o.b. such basing point, or
(b) if such member shall operate a plant for the production of such product
which is not located at a basinig point for such product, f.o.b. the basing point
for such product nearest in terms of all-rail freight rates to such plant, or (c) if
any~ Gulf or Pacific Coast port shall be listed as a basing.point in Schedule F
of the Code as at the time in effect, f.o.b. cars dock such port. Except as other-
wise provided in this Schedule E, each member of the Code shall file with the
Secretary and maintain on file w~ith him a list showing the base price for each
of its products for each basing point for such product at which a plant of such
member for the manufacture of suich product shall be located and for each basing
point for such product which shall be nearest in terms of all-rail freight rates to
any plant of such member for the manufacture of such product not located at a
basing point for such product; and if any Gulf or Pacific Coast port shall be listed
in such Schedule F as a basing point for a product, such member may show in
such list its base price for such product at such basing point. All base prices
abow~n in the list so filed shall constitute the published base prices of such member
for the products and for the basing points shown in such list. Except as afore-
said, none of the members of the Code shall 61le any list of base prices showing any
price for any of its products other than the base price for such product f.o.b.
the basing point or basing points for such products as hereinbefore provided.
The published base price of each such member for any product (except standard
Tee rails of more than 60 pounds per yard, angle bars, and rail joints) for any
basing point for such product other than that or those shown in the list of base
prices so filed by such. member shall be deemed to be the lowest base price for
such product at such other basing point which shall be shown in the list of base
prices filed by any other member of the Code and then in effect. All base prices
for standard Tee rails of more than 60 pounds per yard and all base prices for
angle bars and rail joints shall be f.o.b. mill of the producer thereof, or, in the
case of rails, angle bars, and rail joints carried by water from any Atlantic Coast
or Gulf port to any Gulf or Pacific Coast port., c.i.f. the port of destination.
Lists of prices filed with the Secretary pursuant, to the foregoing Section 2 and to
this Section 3 shall be open to inspection at all reasonable times by anyone.
Sec. 4. Except as otherwise provided in this Schedule E of thle Code, all prices
quoted and billed by any- member of the Code for any product (except standard
Tee rails of miore than 60 pounds per yard, annle bars and rail joints and oil
country tublular goods, w-hich shall be quoted anld billed as hereinafter provided)
sold by --uch members from and after ten days after the effective date of the
Codle shall be delivered prices, which (disregarding the extras, if any., required
by, and the deductions, if any, that may be made pursuant. to, the provisions of
the Codler shall be no~t less tlha~n the s~um of (~a' thie published base price of such
member for suich product effective at the time of t~he sale thereof and Ibl the all-
rail published tariff freight charges from the basing point on which such base
price is based to the place of deliver y to the purchaser thereof or, (1) if such
place of deliver y shall be at suchl basing point, thle published tariff switching
charges to such place of delivery from the plant of any member of t~he Code for
the production of such product. at such basing point. nearest. in terms of such
sw~itching charges to sulch place of delivery; or, i2) if such place of de~livery shall
be at a Gullf or Pacific Coast. p~ort that. is listed in Schedule F as a basingq point, the
published tariff switching chasrges t~o such place of delivery from the dock for dis-
charg~ing products nearest. in t~ermrs of such switching charges to such place of
dlelivery; prov~ided, h~ow\ever, thant delivered by other than all-rail transplortation, thle mrembher of the Code selling
suchJ pr)odulct mlAy allowr tor the purchaser a reduction in thle delivered price other-
w\ise cham~eabllle under this Section 41 at a rate w-hich shall have been previously
app~rov~ed by the Board of Directors and filed wr\ith the Secretary; and (b) in the
case of plates, shapes, or b~ars intended for fabrication for an identified structure,
for thle purllpos of est~ablishings t~he delivered price thereof, the place of delivery
shall be deemecd to be the freight station at or nearest to the place at. which such
sftlrutureC i to b1e erected, and not. the shiop of the fabricator; andi (c) subject as
hereinafter in this Sectionl 4 provided, if any\ list. of prices filed with the Secretary
by\ any memblter ojf the C'ode pulr;unnlt to this Schedule E annd at. t~he time in effect
shall show a specified rate of dleduction fromi the price of any product to be allowed
by suich member on any sale o~f suich product to any3 job-ber for resale, such mem-
ber may, fromn and after thle date on which suich list shall have become effective,
allow to any? jobber to whomii suich member shlall sell such product for resale a
deductIonl froml sulch price to suchi jobber for such product at a rate not greater








than t~he rate so shown in such list; and provided, further, that the Boardi of Direcl-
tors by t~he affirmative vote of three fourths of the whole Board may permit any
member of the Code in special instances or mnemb~rs of the Codle generally to sell
or contract for the sale of any product produced by\ slc~h member or members at, a
base price which shall be less than th~e then published ba:se rinc~e of such member
or members for such product at. thle respec~tiv~e basing points therefor o~f such
members, if by such v-ote such Board shaull determine that the making of such sale
or contract of sale at such less base price is in the interest. of the Industry or of any
other branch of indlustry and w~ill not tend to defeat the policy of Title I of the
National Industrial Recovery ALct by. making possible the using or emnployilng of
an unfair practice. The Board of Directors shall prescrib~e such rules and regula-
tions as it. sh~all deem proper by which th~e question of whether or not any pur-
chaser or prospective purchaser of any prod-uct for resatle is a jobber shall be deter-
mined, and in granting any- permission as aforesaidi, the Board of Directors shall
prescribe such rules and regulations in respect thereof as in its ju~dgment shall be
necessary in order to insulre to the members ofi r-the Coll e that action in accordance
with any such permiission shall not result in an unfair pjractice; anid thlereafter
such Board mnay by likie vote rescind an? permissioi so granted or modify, cancel,
or add to anly rules and regulations so prescr~ibed. Thle S~cretary shall, send to
each member of the Code a COpy! of all euchi rules and regulations prescribed by
such Board with respect to t~he determiinationi of the question of wh~-ether a p~ur-
chaser or prospective purrchalser for resale is a jobber and he shall give notice inr
writing of all action so taken by the Board of D~irectors to each member of the Code!
which at the time shall be engaged in producing the kind of product in respect
of which any such permission w-as granted. Before any member of the Code shall
allow any suIch dedu~t~ion to any job:ber o~r Sell for resale to any purchaser who
shall not. be a jobber any product pursuant. to any- permission so granted to such
member, such member shall secure from such jobber or such oth-er purchaser an
agreement substantially in a form theretofore approved by the Board of Direc-
toirs and filed w~ith the Secr~etary whereby- such jobber or other purchaser shall.
agree w-ith sulch membl~r Ina) that uc~h j-bberr or other purchaser will not, without
the alpprov-al of thie Boardl of Directors, sell such product to any third party at a
price which at t he t ime of theII sale t hereof shasll be less than the price at which such
member might at that timne sell suich product to such. third party, and (b) that,
if such jobber or such other purchaser shall violate any such agreement, he shall
pay to the Treasurer as an individual andl n~ot as treasurer of the Institu~te, in
trust, as and for liqulidated damages the sum of $10 per ton of any prodlc~t sold
by sulch jobber or such other purchaser inl violation thereof. Except as aforesaid,
all prices quoted and billed by any member of the Co~de for standard Tee rails
of more than 60 pounds per yard, angle bars, and rail joints sold by it froma and
after ten days after the effective date of thle Code (disregarding: extras and deduc-
t~ions as8 aforesjaid) shall be not less thann thie publ-lished base price of such, member
for sucrh rails, angle bars, and rail joints effectivet at the time of the sale thereof
f.o.b. mill of the producer, or, in the case olf rails, angle bars, or rail joints carried
by water from any At~lantic Coast or G~ulf pilrt to any Grulf or Pacific Coast port,
c.i.f. the port of destination. Excep~t as aforesaid, all prices quoted and billed by
any member of the Code for oil country tubula~r goods sold by it from and after
ten days after the effective date of the Code disregardingg extras and deductions
as aforessid)r shall be not. less than the delivered price for such goods determined
by deducting from t.he published list price of such member for such goods effee-
tive at. the time of the sale thlereof the published basing discounts app~licabjle to
such goods effective at such time. In case at thne etrectiv-e date of the Code any
valid, firm contract. to which a member of the Code shall be a party shall exist
for a dlefi ni tec q uan t i t of any1! produ~rct or for all or~ a substantial part of the~ req ui re-
ments of the pulrchaser thereof (a.) at. a fixed price, or (b) at a price that can be
definitely determined in accordanice w~ith the prov-isions of such contract, or (c)
at. the market price for such product at the date when a definite qluantity thereof
shall be sp~ecified under such contract and such contract covered a sale of 20o~
or more of the total quanutity of such product produiced and sold in the U~nited
States in thle calendar y.ear 1932, it is recognized tha~t such contract will tend to
establish the market. price for suich product during the remainder of it~s life and
that, if the other members of the Code which produce and sell such product
shall by the foregoing: provisions of this Schedule E be prevented from selling
such product. during the remainder of the life of such contract st. as favorable a
price anid on as favorable terms and conditions as those provided for in suich
contract, then unfair competition as between the member of the Code w-hich
shall be a party\ t~o such contract and the other members thereof anTd also as be-






28

tween the other party to such contract and its competitors may result. Accord-
inglyr, anything herein to the contrary notwithstanding, during the remainder of
the life of such contract any member of the Code may sell-ouch product at a price
and on terms and conditions as favorable as (but not more favorable than) the
price, terms, and conditions provided for in such contract.
SEC. 5. The Board of Directors shall have power on its own initiative, or on the
complaint of any member of the Code, to investigate any base price for any
product at any basing point shown in any list filed with the Secretary by any
member of the Code, and for the purpose of the investigation thereof to require
such member to furnish such information concerning the cost of manufacturing
such product as the Board of Directors shall deem necessary or proper for such
purpose. If the Board of Directors after such investigation shall determine
that such base price is an unfair base price for such produce at such basing point,
having regard to the cost of manufacturing such product, and that the main-
tenance of such unfair base price may result in unfair competition in the Industry,
the Board of Directors may require the member of the Code that filed the list in
which such unfair base price is shown to file a new list showing a fair base prices
for such product at such basing point, which fair base price shall become effective
immediately upon the filing of such list. If such member of the Code shall not
within ten days after notice to it of such determination by the Board of Directore-
file a new list showing such fair base price for such product at such basing point
the Board of Directors shall have power to fix a fair base price for such products
at such basing point, which fair base price, however, shall not be more than the
base price of any other member of the Code at that time effective for such product
at. such basing point and in respect of which the Board of Directors shall not
theretofore have begun an investigation or a complaint shall not have been made
by any member of the Code. When the decision of such Board fixing such fair base
price shall have been filed with the Secretary and the Secretary shall have given
notice thereof to such member, such fair base price shall be the base price of
such member for such product at such basing point, uqtil it shall have been
changed as in the Code provided. A4 notice of all decisions of the Board of Diree-
tors under this Section 5, together with the reasons therefore, shall be filed with
t~he President.
SEC. 6. 1110 BOard of Directors by the affirmative vote of a majority of the
whole Board may establish maximum rates of discount and maximum periods of'
free credit, other than those specified in Schedule G of the Code, which may be
allowed by any member of the Code with respect. to t~he sale of any product or
products to jobbers for resale as permitted by t~he provisions of Section 4 of this
Schedule E. The Secretary shall give notice in writing of any action taken by the
Board of Directors in accordance with the provisions of this Section 6 to each
member of the Code which at the time shall be engaged in producing the kind of
product in the sale of which any such other rates or periods shall have been estab-
lished by such action. Except as aforesaid and except as elsewhere in this Sched-
ule E of the code otherwise provided, the maximum rates of discount for early
payment and the maximum periods of free credit which may be allowed by any
member of the Code shall be the rates and periods specified in said Schedule G.
Except. as aforesaid, all invoices for products sold by any member of the Code
after the effective date of the Code shall bear interest from and after the expiration
of the period of free credit at a. rate which shall be not less than the then current
rate established by the Board of Directors and filed with the Secretary. Nothing
in the Code contained shall prevent any member of the Code from allowing
credit to any purchaser or allowing any1 purchaser to delay payment in respect of
any invoice for a longer period than the maximum period of free credit specified
in such Schedule G or such other maximumn period as shall be established in
accordance w~ith t.he provisions of this Section 6; but, if any member of the Code
shall allow credit to any purchaser or allow any purchaser to delay payment in
respect of any invoice for a period longer than such maximum period of free
credit, then such member shall charge and collect interest on the amount in
respect of which credit shall be so allowed or the payment of which shall have been
so delayed at, a rate not less than the current rate established and filed as aforesaid.
SEC. 7. Except as in this Schedule E of the Code otherwise provided, any
extras added to, and any deductions made from, the base price for any product
sold by any member of the Code in determining its quoted or billed price for such
product shall be uniform for all members of the Code. The rates of such extras
and of such deductions shall be those approved from time to time by the Board
of Directors as being in accordance with the trade practice customary in the
Industry at the effective date of the Code and as meeting the requirements of the








Code. Lists showing such rates shall be filed w~ith the Secretary anld shall be! open
to inspection at all reasonable times by anyone. In case! any member of the Code
shall sell any product to which any such rate of extra or deduction shall apply,
except as aforesaid, such member shall add an extra at a rate which shall not be
less than the rate of extra applicable to such product theretofore approved by the
Board of Directors as aforesaid and at the time in effect and none of the members
of the Code shall make any deduction at a rat.e that shall be more favorable to
the purchaser of such product. than the rate of deduction applicable to such
product theretofore approved by t~he Board of Directors as aforesaid and at the
time in effect; provided, however, that. nothing in the Code contained shall be
so construed as to prevent any member of the Code from selling or contracting to
sell any product for use by the purchaser thereof in t~he manufacture of articles
for shipment in export trade within the meaning of the term "export trade" as
it is used in the Export Trade Act. under an agreement by such member of the
Code with such purchaser that, w~hen such articles shall have been shipped inr
such export trade, sulch member of the Code shall make an allowance at a rate
approved by the Board of Directors and a statement of the approval of which
shall theretofore have been filed w~ith the Secretary, which rate in the opinion of
such Board shall be sufficient to enable such member of th~e Code or such pur-
chaser to meet foreign competition in the sale and delivery of such product or
such articles, as the case may? be.
SEc. 8.--The practice of shipping prodnects on, consignmient may result in
unfair competition and it is the intention of thne Industry to eliminrate such
practice as soon as possible after the effect~ive date of the Ciode. Accordingly,
except to the extent necessary to carry out arrangements existing on the effee-
tive date of the Code and which shaU~ hav\e been reported to the Broard of Direc-
tors, from and after such date none of the members of the Code shall deliver
products, other thanl pip~e, on consignment except to an affiliated company of
such member. All arrangements for the delivery~ by anly member of the C~ode
of products on consignment mother than consignments to an affiliated company
of such member and other than consignlments of pipe) existing on the effective
date of the Code shall be terminated on or before June 30, 1934, and all stock
held on consignment on that. date shall either be sold to the consignee or posses-
sion t hereof shall be taken by t he consignor. The Board of Directors shall investi-
gate problems presentedl inl the elimiination of consigned stocks of pipe and
shall recommend to the members of the Code which shall be parties to then
existing arrangements w~ith respect to shipments of pipe on. conisignmecnt (other
than consignmuent.s frolm a member of the Codec to an affiliated company) such
action in resp~ect thereof as such Board shall deem proper and designed to accom-
plish t~he termination of all such arrangements (other than as aforesaid) at as
early a date as possible.
SEC. 9. FOr all purposes of this Schedule E, a delivery of any product made
pursuant to a contract of sale shall be regarded as a, sale thereof mnade at the
time of the making of such contract.. Except in the case of a, product required
by a purchaser for a specified definlite contract of such purchaser with a third
party at a fixed price, none of the members of the Code shall malke any contract
of sale of any product. by the terms of which the shipment of such product is
not required to be complleted before the end of the calendar quarter yetar ending
not, more than four months after the date of the making of such contract.
SEc. 10. Nothing in the Code contained, however, shall be so construed as
to prevent the performance by any member of the Code of a valid, firm contract
existing and to which it is a party at. the effective date of the Code for a definite
quantity of any product or for all or a substantial part of the requriretments of
the purchaser thereof (a.) at a fixed price, or .b') at a price that canl he definitely
determined in accordance w~it.h the provisions of such contract, or (c) at the
market price for surch product at the date whenl a definlite qruantity thereof shall
be specified under such contract. If any member of the Code shajll at the effee-
tive date thereof be a party~ to any contract for the sale of any product by such
member which by its terms is to continue after December 31, 1933, and by its,
terms the price to b~e paid for such product by the other party~ to surch contract
is related to the market price thereof at the date when a definite qulantityv thereof
may be specified under such contract and may be less than such market price,
then such member shall w~it~hin thirty days after the effective date of the ~Code
file a copy of such contract w~ith the Secretary in order that the Boar of Direc-
tors may consider it and take such action in respect thereof consistent w\\ith t.he
rights and obligations of t.he parties to such contract a~s such Board shall deem
proper.








SEc. 11. A sale made by any member of the Code indirectly through any
affilated company of such member shall be deemed to be a sale made by such
member.
SEc. 12. Nothing in the Code contained shall be deemed to apply to or affect
the sale of any product for direct shipment in export trade by any member of
the Code within the meaning of the term "export trade" as it is used in the
Export Trade Act or, unless and to the extent that the Board of Directors shall
otherwise determine, the sale of any product by any such member for direct
shipment to the Philippines, Hawaii, or Puerto Rico or other insular possessions
of the United States of America.
SEC. 13. If and to the extent requested by the Administrator, all decisions of,
permissions, and approvals given by and rules and regulations made by, the
Board of Directors pursuant to any provisions of this Schedule E shall be reported
to him.














SCHEDULE F--LIsr or BASING PoNers


The places her~einafter in this Schedule F listed are the basing points for the
respective products named.


Axles--Rolledi or forged:
Pittsburgh, Pa.
Chicago, Ill.
Birmingham, Ala.
Bale Ties:
Pittsburgh, Pa.
Cleveland, Ohio
Chicago, Ill.
Birmingham, Ala.
Dulut~h, M~inn.
Gulf Ports 1
Pacific Coast Ports 2
Bars--Alloy steel, hot rolled:
Pittsburgh, Pa.
Buffalo, N.Y.
Chicago, Ill.
Canton, Ohio
Alassillon, Ohio
Bethlehem, Pa.
Bars--Cold finished, carbon, and alloy;
Pittsburgh, Pa.
Buffalo, N.Y.
Cleveland, Ohio
Chicago, Ill.
Gary, Ind.
Bars-Concrete reinforcing:
Pittsburgh, Pa.
Buffalo, N.Y'.
Cleveland, Ohio
Chicago, 1I.
Gary, Ind.
Birmingham, Ala.
Y'oungstow~n, Ohio
Gulf Ports
Pacific Coast Port.s
Bars--Iron:
Pittsburgh, Pa.
Troy, N. Y.
Jersey City, N.J.
Dover, N.J.
Philadelphia, Pa.
Columbia, Pa.
Lebanon, Pa.
Reading, Pa.
Danville. Pa.
Burnham, Pa.
Creighton, Pa.
Richmond, Va.
Louisville, KyS.
Terre Haute, Ind.


Bars-MRerchant steel:
Pittsburgh, Pa.
Buffalo, N.Y.
Cleveland, Ohio
Chicago, Ill.
Gary, Ind.
Birmingham, Ala.
Gulf Ports
Pacific Coast Ports a
Bars--Tool steel:
Pittsburgh, Pa.
Sy~racuse, N.IY.
Bethlehema, Pa.
Girder rails:
Loratin, Ohio
Steelton, 1Pa.
Ingots, blooms, bmlets, and slabs--
Alloy:
Pittsburgh, ]Pa.
Buffalo, N.Y.
Chicago, Ill.
Canton, Ohio
Massmlon, Ohio
1Bethlehem, Pa.
Ingots, blooms, billets, and slabs--
Carbon:
Pitt~sburgh, Pa.
Buffalo, N.Y'.
Cleveland, Ohio
Chicago, 'Ill.
Gary, Inld.
Birminghama, Ala.
YJoungstown, Ohio.
Light rails--60 lbs. or less per yard:
P i t t s b u r h P a
Birmingham, Ala.
Mechanical tubing:
Pittsburg'h, Pa.
Catnton, Ohio
Shelby, Ohio
Detroit, Mich.
Milwaukee, WCis.
Pig iron--Foundry, malleable, open-
hearth basic, and Bessemer:
Buffalo, N.Y.
Cleveland, Obio
Chicago, Ill.
Birmingham, Ala.
Y~oungst~owni, Ohio


* Except as ot herwnise shown in this Schedule F, the G ulf Ports are RIlobile, Ala.,N\ew Orleans, La., and
Orange, Port Arthur, Beaumont, Baytowfn, Galveston, and Houston, Tex.
1 The Pacific Coast ports are San Pedro (includes WYilmington) and Sa~n Francisco (inclde Oakland)
Calif.; Portland, Oreg.; and Seattle (includes Tacoma), W~ashington; and San Diego, Calif.; for Plates and
Structural Shapes only.
(31)









Pig iron--Continued.
Neville Island, Pa.
Sharpsville, Pa.
Erie, Pa.
Bethlehem, Pa.
Sw~edeland, Pa.
Birdsboro, Pa.
Hamilt~on, Ohio
Jackson, Ohio
Toledo, Ohio
Granite City, Ill.
Detroit., Mich.
Duluth, MCino. (except open-hearth
basic)
Provo, Utah
Everett, Miass.
Sparrows Point, M~d.
Pig iron--Low phosphiorns:
Birdsboro, Pa.
jt~eelton, Pa.
Standish, N.'.
Johnso~n City, Tenn.
Pipe-Rigid electrical conduit:
Pitt~sburgh, Pa.
Evanston, Ill.
Pipe--Standard, line pipe, and oil
country tubular products:
Pittsb~urgh, Pa.
Gary, Ind.
Lora~in, Ohio
Plates:
Pittsbuirgh, Pa.
Chicago, Ill.
Gary, Ind.
Birminigham, Ala.
Coatesville, Pa.
Sparrow~s Point, Mid.
Culf Ports
Pacific Coast Ports
Railroad tie plates:
Pittsburgh, Pa.
Buffalo, N.Y'.
Chicago, Ill.
Birmingham, Ala.
St. Louis, Mo.
Kansas City, Mo.
M~innequa, Colo.
Weirton, W.Va.
Portsmout~h, Ohio
Steelton, Pa.
Pacific Coast Ports
Railroad track spikes:
Pittsburgh, Pa.
Buffalo, N.Y.
Cleveland, Ohio
Chicago, Ill.
Birmingham, Ala.
Youngstow~n, Ohio
Port~smouth, Ohio
Weirton, W. Va.
St. Louis, Mio.
K~ansas City, M~o.
M~innequa, Colo.
Philadelphia, Pa.
L~ebanon, Pa.
Columbia, Pa.
Richmond, Va.


Railroad track spikes--Continued.
Jersey Cit~y, N.J.
Pacific Coast Ports
Sheet bars:
Pittsburgh, Pa.
Buffalo, N.Y'.
Cleveland, Ohio
Chicago, Ill.
Y'oungstown, Ohio
Canton, Ohio
Sparrows Point, Md.
Sheets:
Pittsburgh, Pa.
Gary,. Ind.
Birmingham, Ala.
Pacific Coast Ports
Skelp:
Pittsburgh, Pa.
Buffalo, N.Y.
Chicago, Ill.
Youngst~own, Ohio
Coatesville, Pa.
Sparrows Point, Md.
Steel sheet piling:
Pittsburgh, Pa.
Buffalo, N.Y'.
Chicago, Ill.
Gulf Ports
Pacific Coast Ports
Strip steel--Cold-rolled:
Pittsburgh, Pa.
Cleveland. Ohio
Worcest~er, Mass.
Strip steel--Hot-rolled:
Pittsburgh, Pa.
Chicago, Ill.
Structural shapes:
Pittsburgh, Pa.
Bulffalo, N.Y'.
Chicago, Ill.
Birmingham, Ala. (standard shapes
only).
Bethelhem, Pa.
Gulf Ports
Pacific Coast Ports
Tin plate, tin mill black plate and terne
plate:
Pittsburgh, Pa.
Gary, Ind.
Pacific Coast Ports
Tubes- Boiler :
Pittsburgh, Pa.
Tube rou nds:
Pittsburgh, Pa.
Buffalo, N.Y.
Cleveland, Ohio
Chicago, Ill.
Birmingham, Ala.
Wheels--Car, rolled steel:
Pittsburgh, Pa.
Chicago, Ill.
Wire-Drawn, except as hereinafter
specified:
Pittsburgh, Pa.
Clevreland, Ohio
Chicago, Ill.
Birmingham, Alat.









Wire-Continued.
A\nderson, Ind.
Dulut~h, M1~inn.
W'orcester, 1\lass.
Gulf Ports
New Orleans, La.
Galveston, Tex.
Houston, Tex.
Pacific Coast Ports
Wire nails and staples,
and w~ire fencing:
Pittsburgh, Pa.
Clev~eland, Ohio
Chicago, Ill.
Birminghamn, Ala.
Anderson, Ind.
Duluth, Mlinn.
Gulf Ports
Pacific Coast Ports


Wire rodls:
Pittsiburgh, Pa.
Clev~eland, Ohio
Chicago, Ill.
Birminigham, Ala.
Wire--Spring:
SPittsburgh, Pa.
SCleveland, Ohio
Chicago, Ill.
Worcest~er, M~as.
Pacific Coast Port~s
Wire--Telephone:
Pittsburgh, Pa.
Cleveland, Ohio
Waukega n, Ill.
Mluncie, Ind.
Trenton, N.J.
W'orcester, MIass.
Sparrow~s Point, 1\id.


barbed w'ire,





















SCHEDULE Gr--RAAXIMUMl RATES OF DISCOUNT FOR EARLY PAYMENT AND MAXI-
MUM PERIODS OF FREE CREDIT

MAXIMUM RATES OF DISCOUNT FOR EARLY PAYMENT
In the case of products shipped from plants located east of the Mississip~
River to Pacific Coast Ports and which shall be invoiced from such plants--%o
1%b, if the invoice of such products shall be paid within 25 days from the date o
such invoice; in all other cases--% of 1%, if the invoice of such products shall be
paid ~it~hin 10 days from the date of such invoice; provided, however, in the
latter cases, that anyr member of the Code may allow such discount of Ng of 1%'
for payment within 10 days on the basis of settlements three times in each month,
as follows:
(1) On invoices for products dated from the let to the 10th, inclusive, in any
month, such discount may be allowed on payment of such invoices on or before
the 20th of such month;
(2) On invloices for products dated from the 11th to the 20th, inclusive, in
any month, such discount may be allowed on payment of such invoices on or
before the 30th of each month; and
(3) On invoices for products dated from the 21st to the end of any month,
such discount may be allowed on payment of such invoices on or before the 10th
of the next following month.
Any discount allowed in accordance w~ith the provisions of this Schedule G
shall apply only to the invoiced value of the products specified therein and not
to any' part of the transportation charges on such products.
MAXIMUM PERIODS OF FREE CREDIT

In the case of products shipped from plants located east of the Mississippi
River to Pacific Coast ports and which shall be invloiced from such plants---45
days; in all other cases-30 days.
(34)













SCHEDULE H--LIsT or UNFAIR PRACTICES


For all purposes of the Code t~he following described acts shall constitute unfair
practices:
A. AlIaking or promising to any~ purchaser or~ prospective purchaser of any prod-
uet, or to any officer, employee, agent or representative of any such purchaser or
prospective purchaser, any bribe, gratulity, gift or other payment or remunerat-
tion,, directly or indirectly.
B. Procuring, otherwise than w~ith~ the consent of an~y member of the Code,
any information concerning the business of such member \which is properly re-
garded by it as a trade secret or confidential within, its organization, other than
information relating t~o a violation of aniy provision of the Code.
C. Imitating or simulating any' design, style, mark, or brand used by any other
member of the Code.
D. Using or substituting any material superior in quality to that specified
by' t~he purchaser of any product. or using or substituting any material or any
method of manufacture not in accord w~ith any applicable law, rule, or regulation
of any gov.ernmnental authority.
E. Cancelling, in whole or in part, or permitting the cancellation in whole or
in part of any contract of sale of any- product, except for a fair consideration, or
paying or allowing tol an~y purchaser inl connection with. the sale of any product
any rebate, commission, credit., discount, adjustment, or similar concessions other
than as is permitted by the Code and specified in thme contract of sale.
F. Disseminating, publishing, or circulating any false or misleading informa-
t~ion relative t~o any product or price for any product of anly member of the Code,
or the credit. standing or ability of any member thereof to perform any work or
manufacture or produce any product, or t.o th~e conditions of employment among
the employees of any- member thereof.
G. Inducing: or attempting to induce by any means any party to a contract
wit~h a member of the Code to violate: such contract.
H. Aiding or abetting any person, firm, association, or corporation in any unfair
practice.
I. 1\laking or giving to any' purchaser of any product any~ guaranty or pro-
teetion in any form against. decline in the market price of such, product.
J. Stat ing in t.he in voice of any prod uct as t he date thereof a date later than thme
dat.e of the shipment of such product, or including in a~ny inlvoice anly product
shipped on a date earlier than the date of such invoice.
Ki. 1\laking any sale or contract. of sale of any product under any description.
which does not fully describe such product in terms customarily used in the:
Industry.
L. Rendering to any? purchaser of any product in or in connection with the
sale of such product any service, unless fair compensation for such service shall
be paid by such pruchaser.
1\l. Any violation of any other provision of the Code, whether or not therein
expressed to be such, or using or emuploying any practice not hereinabove in this
Schedule H described which the Boardi of Directors by the affirmative vote of
three fourths of the whole Board shall have declared to be a practice that would
tend t~o defeat th policy of Title I of the National Industrial Recovery Act rand,
therefore, an unfair practice, and of which determination by such Board the Secre-
tary shall have given notice to the members of the Code and to the President.




UNIlVERSITY OF FLORIDA
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