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rlieed Code No. 38-Amendment No. 1
Registry No. 1103-01
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON APRIL 16, 1934
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Approved Code No. 38-Amendment No. 1
AMENDMENT TO CODE OF FAIR COMPETITION
BOILER MANUFACTURING INDUSTRY
As Approved on April 16, 1934
APPROVING AMENDMENT TO THE CODE OF FAIR COMPETITION FOR THE
BOILER MANUFACTURING INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Supplement
"A" to the Code of Fair Competition for the Boiler Manufacturing
Industry, approved October 3, 1933, and hearings having been duly
held thereon and the findings with respect thereto having been made
and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; de hereby incorporate by reference said annexed
report and do find that said Supplement "A" of said Code complies
in all respects with the pertinent provisions and will promote the
policy and purposes of said Title of said Act; and do hereby order
that said Supplement "A" to said Code of Fair Competition be and
it is hereby approved; provided, however, that the provisions of
Article V, Section I (d), insofar as they prescribe a waiting period
between the filing with the Code Authority and the effective date of
revised price lists or revised terms and conditions of sale be, and they
are hereby, stayed pending my further Order either within a period
of sixty days from the effective date of this Code or after the
completion of a study of open price associations now being con-
ducted by the National Recovery Administration.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
A. R. GLANCY,
April 16, 1934.
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report on the Supplement "A" to the Code of Fair
Competition for the Boiler Manufacturing Industry, approved Oc-
tober 3, 1933, as revised after a Public Hearing held in Washington
on the 27th day of December, 1933, in accordance with the provisions
of the National Industrial Recovery Act.
I find that:
(a) Said Supplement to said Code is well designed to promote the
policies and purposes of Title I of the National Industrial Recovery
Act, including removal of obstructions to the free flow of interstate
and foreign commerce which tend to diminish the amount thereof
and will provide for the general welfare by promoting the organiza-.
tion of industry for the purpose of cooperative action among the
trade groups, by inducing and maintaining united action of labor
and management under adequate governmental sanctions and super-
vision, by eliminating unfair competitive practices, by promoting the
fullest possible utilization of the present productive capacity of
industries. by avoiding undue restrictions of production (except as
may be temporarily required), by increasing the consumption of in-
dustrial and agricultural products through increasing purchasing
power, by reducing and relieving unemployment, by improving stand-
ards of labor, and by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c) The Supplement and the Code as approved complies in all
respects with the pertinent provisions of said Title of said Act, in-
cluding without limitation Subsection (a) of Section 3, Subsection
(a) of Section 7, and Subsection (b) of Section 10 thereof; and that
the applicant, the Code Authority of the Boiler Manufacturing In-
dustry, constituted by Article IX of the Code. and approved by
Administrative Order, dated February 1st, 1934, is truly representa-
tive of the aforesaid Industry.
(d) The Supplement and the Code is not designed to and will not
permit monopolies or monopolistic practices.
(e) The Supplement and the Code is not designed to and will not
eliminate or oppress small enterprises and will not operate to dis-
criminate against them.
(f) Those engaged in other steps of the economic process have not
1iPen deprived of the right to be heard prior to approval of said
Supplement of said Code.
For these reasons, this Supplement to said Code has been approved
Respect f lly,
HUGH S. JOHNSON,
Ad m inistrat or.
APrmL 16, 1934.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE BOILER MANUFACTURING INDUSTRY
Pursuant to Article XIII of the Code of Fair Competition for the
Boiler Manufacturing Industry, duly approved by the President
on October 3, 1933, and further to effectuate the' policies of Title I
of the National Industrial Recovery Act, the following provisions
are submitted as a supplement to said Code of Fair Competition,
and, upon approval by the President, shall be binding upon every
member of the Boiler Manufacturing Industry.
(1) The term "the Code", as used herein, shall mean the Code
of Fair Competition for the Boiler Manufacturing Industry, duly
approved by the President on October 3, 1933.
(2) The term Boiler Manufacturing Industry ", or Industry ",
as used herein, shall mean the Boiler Manufacturing Industry as
defined in Article II of the Code.
(3) The term Branches of the Industry ", as used herein, shall
mean those groups of members of the Industry who manufacture
specific classes of products of the Industry, such as water tube boil-
ers, fire tube boilers, air preheaters, economizers, superheaters, stok-
ers, pulverized fuel equipment, Class I welded pressure vessels and
such other specific classes of products of the Industry as defined
from time to time by the Code Authority.
(4) The term Code Authority ", as used herein, shall mean the
Planning and Fair Practice Agency constituted by Article IX of
the Code and approved by the Administrative order dated February
1, 1934, and variously referred to in the Code as the A. B. M. A.
Committee of Industrial Recovery or the Committee.
(5) The term Manager ", as used herein, shall mean the Man-
ager (or his Deputy), appointed as provided in Article IX of the
(6) The term Member of the Industry ", as used herein, shall in-
clude but without limitation, any individual, person, partnership,
association, corporation or other form of enterprise engaged in the
manufacture or sale of the products of the Industry either as an
employer or on his or its own behalf.
(7) The term ultimate consumer", as used herein, shall mean
one who purchases the products of the Industry from a member of
the Industry for use and not for resale.
(8) The terms employer and employee ", as used herein, shall
have the meaning as set forth in Article II of the Code.
(9) The provisions of this Supplement shall become effective im-
mediately upon approval by the President.
SECTION 1. The Code Authority may, subject to the approval of
a majority of the members of each of the several branches of the
Industry, as defined in Article II, appoint a Supervisory Committee,
for each of such branches, which shall among other duties cooperate
with the Manager as Trade Practice Compliance Boards for the
several branches of the Industry; provided, however, that nothing
herein contained shall relieve the Code Authority of any of its duties
and responsibilities under the Code or under any Supplement
thereto; and provided, further, that the Administration representa-
tives on the Code Authority may act in the same capacity on these
SECrION '2. Nothing contained in the Code or in this Supplement
shall constitute the members of the Code Authority partners for any
purpose. Nor shall the Code or this Supplement be construed to
render any member of the Code Authority or of any Supervisory
Committee liable in any manner to any one for any act of any other
member, officer, agent or employee of such Code Authority or Super-
visory Committee. Nor shall this Code be construed to render any
member of the Code Authority or of any Supervisory Committee,
exercising reasonable diligence in the conduct of his duties hereunder,
liable to any one for any action or omission to act under this Code
except for his own wilful misfeasance or nonfeasance.
SECTION 3. If the Administrator shall at any time determine that
any action of the Code Authority or any Supervisory Committee
or any agency thereof may be unfair or unjust or contrary to the
public interest, the Administrator may require that such action be
suspended to afford an opportunity for investigation of the merits
of such action, and further consideration by such Code Authority
or Supervisory Committee or agency thereof pending final action
which shall not be effective unless the Administrator approves the
same or unless he shall fail to disapprove the same after thirty
(30) days' notice to him of intention to proceed with such action in
its original or modified form.
ARTICLE IV-SALES BELOW COST
SECTION 1. Upon approval by a majority of the members of any
branch and due notice of such approval to the Administrator the
following provision shall become effective as to such branch, not less
than five (5) days after the filing of such notice to the Administrator.
It shall be a violation of the Code to sell, or offer to sell, directly or
indirectly by any means whatsoever, any product of such branch of
the Industry, any product purchased for resale in connection with
the installation of products of such branch of the Industry, service,
and/or erection, at a net realized price less than the members indi-
vidual cost determined as prescribed in Article X, Section 1 of the
Code, with such modifications as may be (a) required by the condi-
tions effecting such member (such as abnormal volume of business,
etc.,) and (b) approved by the Supervisory Committee of the branch
involved, all subject to the approval of the Code Authority and the
Administrator; provided, however, that nothing in this Section shall
prevent a member from quoting a price lower than his individual cost
determined as herein provided to meet the price of a competitor, who
is not violating any provisions of the Code or any Supplement
thereto, for products of equivalent type, quality, specification and/or
performance; provided, further, that nothing herein shall limit the
effect of Article VIII, Section 2 of this Supplement.
SECTION 2. Obsolete or discontinued lines of products, or distress
merchandise, may be disposed of, at a net realized price less than cost,
by any member, if such member has at least ten (10) days prior to
the date of such sale filed with the Manager a list of such items.
ARTICLE V-PRICE LISTS
SECTION 1. (a) Upon approval by a majority of the members of
any branch and due notice of such approval to the Administrator
the following provisions shall become effective as to such branch,
not less than five (5) days after the filing of such notice to the
Administrator. The Supervisory Committee of such branch shall
require the members of said branch to prepare and file with the
Manager, within thirty (30) (lays, price schedules which may be in
the form of net prices or prices with discounts, for such of his prod-
ucts as are sufficiently standard to permit of such pricing.
(b) The price schedules prepared and filed as provided in Section
1 above, shall become effective on filing and shall be the prices which
he will quote to all ultimate consumers.
(c) Upon receipt of the above described price schedules the Man-
ager shall at once distribute copies of same to all members of the
(d) None of the price schedules so filed shall be changed by a
member of the Industry except by filing with the Manager new
price schedules setting forth such change or changes to become effec-
tive on the tenth clay after the date on which such new price sched-
ules shall have been received by the Manager who shall immediately
notify the member filing such revised price schedule of the effec-
tive date resulting from the date of receipt. Copies of such revised
price schedules, either increases or decreases, together with notice
of the effective date thereof shall be immediately sent by the Man-
ager to all other members of the branch of the Industry affected, who
thereupon may file similar revisions. Such similar revisions if filed
prior to the effective date of the revised schedules first filed shall
take effect upon that date, except when the revised price first filed
constitutes a decrease, and such similar revision is more favorable
to the purchaser than such revised price first filed, in which case such
similar revision shall not take effect until ten (10) days after the
date when the same shall have been received by the Manager.'
(e) All current price schedules on file shall be open to inspection
by any customer or prospective customer or other interested party
at all reasonable times.
SECTION 2. Each member of the Industry who makes products of
special design that do not lend themselves to standard prices shall
not sell such products at a price less than the sum of the filed prices
on standard products, used in such products of special design, and
SSee paragraph 2 of order approving this Amendment.
the cost (determined as provided in Article IV, of this Supplement)
of all additional products, or parts of products that enter into the
construction of such complete products of special design.
ARTICLE VI-INTRA INDUSTRY TRANSACTIONS
All members of the Industry do not manufacture all of the prod-
ucts of the Industry. Many sales involve a combination of products,
some of which some members do not manufacture. To enable all
members, who desire, to compete on an equitable basis for such
sales, all members shall publish to the Industry the discount which
they will allow when and if selling products or parts of products
to other members for incorporation in or assembly with products of
the Industry of the purchasing member's own manufacture and shall
agree to take no unfair advantage through the use of such a dis-
count when competing for such sales of a combination of products.
The provisions of Article IV and Article V of this Supplement
shall not prevent or restrict the allowance of such a discount.
ARTICLE VII-EXPORT SALES
SECTION 1. As trade practices in foreign countries are governed by
foreign laws and as foreign manufacturers are not subject to the
Code, it is understood the provisions of this Supplement "A" do
not apply to export trade; provided, however, that should the total
export business of the Industry in any three (3) months period exceed
five (5%) percent of the total domestic business of the Industry for
the same period, it is expressly understood that the Administrator
may require the modification of this Section 1 in such manner as
may be calculated to effectuate the purposes of the Act.
SECTION 2. The term export" is defined as shipments to all
countries of the world except the United States of America, or any
territory or possession thereof.
ARTICLE VIII-FAER TRADE PRACTICES
SECTION 1. Each member of the Industry shall send to the Manager
(who shall hold same in strict confidence) immediate notice of each
inquiry received on which he proposes to quote, a copy of each letter
of proposal and estimate sheet made, and a copy of each order
received, including prices and terms; provided, however, that such
reports need not be made in connection with repair or renewal parts
or such other products as may be excepted by the Code Authority,
upon request of the majority of the members of the branch affected
and with the approval of the Administrator.
SECTION 2. No member of the Industry shall change any quotation
submitted unless a change is made in the specifications, and, in the
event of such change in any specifications, the price and terms of the
new quotation shall be determined in the same manner as in the
original quotation. Where the original quotation has been reported,
the revised quotation, with changes noted, and the reasons therefore
indicated, shall at once be reported to the Manager.
SECTION 3. No member of the Industry shall accept secondhand or
used equipment of any kind whatsoever as part payment towards the
purchase of new equipment.
SECTION 4. No member of the Industry shall accept an order or
contract for the products of this Industry, except Class I welded
pressure vessels, which includes the construction of foundations,
structures other than those necessary for the support of the equip-
ment, or the removal of old equipment or structures, except in the
case of repair or renewal of parts, unless the order or contract is so
written that that part covering the products of this Industry and
subject to the provisions of the Code and this Supplement is definitely
The provisions of the Code are hereby specifically recognized to be
applicable to this Supplement.
Approved Code No. 38. Amendment No. 1.
Registry No. 1103-01.
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