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N TIOBT1l MItECOV~ERY ADMINISTRATION
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PRESIDENT ROO6VT' V .
1. Executive Order
2. Letter of Transmittal
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GOVERNMENT' POINTING OFFICE
WASHINGTON : 1933
AB APPROVED ON OCTO 11133
This publication is for sale by the Superintendent of Documents, Government
Printing COffce, W~ashington, D.O., and by district offces of the Bureau of
Foreign1 and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OP COMMERCE
Atlanta, Ga.: 5(%1 Post Office Building.
Birminghaml, Ala.: 257 Federal Building.
Boston, Massk. : 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.:i Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Clevelandl, Ohio: Chamlber of Commere.
Dallas, Tex.: Chambe~r of Commerce Building.
Detroit, l~ifie.: 2213 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksfonville, Fla.: Chamber of Commerce Building.
Kiansas City, \Ilo.: 1028 Baltimore Avenue.
Los Angeles. Calif.: 1163 South Broadway.
Louisville, Kyg.: R~oom: 405, 421 Wlest Ma~rket Street.
111emphis, Tenn.: 206 South WVater Street.
Mlinneapolis, nIlinn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Custombouse.
N~ew Yorkl, N.Y.: 734 Custombouse.
Norfolk-, Va.: 406 East Plumie Street.
Philadelphia, Pa.: Room 812, 20 South Fifteenth Stroot.
Pittsburgh. Pa.: Chamber of Com~merce Building.
Portlandl, Oreg~.: 215 New Post Office Building.
St. Louis, Mo1.: 500 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wa'sh.: 1406 Vance Building.
CODE OF FAIR COMPETITION FOR THE OI~oLER nlANUFACTURING 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, approvedl June 16, 1933, for my approval of a Code of
Fair Coompetition for the Boiler lifanufacturing Industry, and hear-
ings having been held thereon and the Administrator having ren-
dredPP his report. containing an analysis of the said Clode ofFi
Competition, together with his recommendations and findings w-ithl
respect thereto, and the Administrator having found that the said
Code of Fair Competition complies in all respects with the pertinent
provisions of title I of said act and that the requirements of clauses
(1) and (2) of subsection (e.) of section 3 of the said act have been
NOW THEREFORE, I, Fr~anklin D. Roosevelt, President of the
United Atates, pursuant to the authority vested in me by title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations, and
findings of t~he Administrator and do order that the said Code of
Fair Competition be and is hereby approved, except that subpara-
.graph (a) oif article VII must be eliminated.
FRANKLIN D. ROOSEVELT.
THE HIrTE HOUSE,
October 3, 1933.
Approval reconunended :
Hoon S. JoHNSON,
THE~ PRESIDENT, TH-E ~HITE OUISE. PT BE 9.
MrY DEAR: 11R PRESIDEN'rT: I have the honor to submit and recom~-
mend for your approval, the Code of Fair Competition for the Boiler
The following exhibits are included or attached:
(1) Final Code Submlitted
(2) Notice of Hearingo
(3) Stattement of Procedure
(4) Transcript of the Records
(5) Statistical Analysiss of the Division of Economiic Research
(6) Report of Deputyr Administrator
ALn analysis of t~he provision of the Code has been made by the
Administration, I find that the Code complies with the requirements
of Clatuses 1. and 2, Subsectioli (a) of Section 3 of the National In-
dustrial Recovery Act.
I am, my dlear Mir. President.
V~ery sincerely yours,
HUGHr S. Jon~soN,
A dm inistrator.
CODE~ OF FAIR COMPETITION FOR THE BOILER
To effectuate the policy of Title I of the National Industrial Re-
covery Act, the following provisions are submitted as a code of fair
competition for the Boiler Manufacturing Industry, and upon ap-
proval by the President shall be the standard of fair competition for
The term boiler manufacturing industry shall be held to com-
prise all persons engaged in the manufacturing of all types of steel
steam boilers for stationary and marine use (except boilers for loco-
motives and such boilers as may be specifically covered by codes ap-
Sproved hereaf-ter by the President) stokers of 36 square feet of grate
area and over, pulverized fuel equipment, superheaters, air preheat-
.~ers, and economizers, and Class One welded pressure vessels, as de-
fined in the unfired pressure vessel section of the Boiler Code of
the American Society of Mechanical Engineers, and, with the ap-
proval of the Administrator, such other affiliated groups as may
TIhe term "' employer as used herein shall mean any member of
The term employee as used herein shall mean any person em-
ployed in any phase of the industry, however compensated.
The provisions of this Code shall become effective on the second
1Monday after the approval by the President.
The American Boiler Manufacturers Association representing the
industry hereby accepts and agrees to be bound by the following
and/or other regulations established by the A.B.M.A. Committee of
Industrial Recovery (duly constituted by the American Boiler Man-
ufacturers Association in convention assembled June 5, 1933, as the
agency for the preparation and administration of this Code), and
approved by the President of the United States, and enforced im-
partially on all manufacturers in the industry whether members of
;this Association or not.
AnrlCLE IV-CmmL LBon
NJo member of this Industry shall employ any person under 16
years of age, provided, however, that where a State law provides a
higher minimum age no person below the minimum provided by such
State law shall be employed in that State.
ARrICI;E V -HoIRms
SECTION 1. (a) No employer shall employ, in any labor operations,
any person more than 40 hours per week, five consecutive dayg~sl and
eight consecutive hours per day, except as provided under pararap
(b), provided, however, that where it is necessary to workr ~slesthan
40 hours per wveek, the hours may be divided by agreement between
the employer and the employees to a lesser number of days per weeki,
but in no case shall the hours exceed nine per day.
(b) In cases of emergency production, repair, or erection woirk
that cannot be met by- tim employment of additional men and it: be-
comes necessary, in order to protect life or property, to exceed the
hours scheduled in (a), all such excess time shall be paid for at the
rate of not less than one and one half times the hourly rate For ht~op
work~ and not less than double time for all repair, renrewal, 'and
construction and/or erection workr.
(c) No new apprentices shall be employed in the Industry except
that the Admlinistrator may grant the employment of such new~- ap-
prentices if in his judgment the existing surplus of unemployed laio~r
is ab~sorbed in reasornably steady employment.
(d) For all other employees except executive, administrative and
supervisory employees! and travelling and commission salespeople,
the time worked shall not be in excess of 40 hours per week.
SEC. 2. No employee shall be employed or permitted to worku for
one or more employers in the industry in the aggregate in excess of
the prescribed number of hours in a single week ; provided, however,
that if any employee works for more than one employer for an
aggregate period in excess of such maximum without the connivansce
of any one of such employers, said employee shall not be held to
have violatedl this paragraph.
SECTION i. (8) The Blinimum wage that shall be paid by any
employer to any employee of the B~oiler Manufacturing Industry in
labor operations directly incident thereto shall be 340 per hour for
thle S~outher~n ter~ritory and 400 per hour for all other portions of the
United States. The Southern territory is located South of the States
of Malrylrandl, West Virginia, and K~entucky, and East of the Missi-
(b) Old or partially disabled employees, and watchmen are not
included in the above labor provisions, except that they shall in no
case be paid less than 80S% of the above minimtun, and provided that
the total number of such employees shall not exceed 29'o of .the
total number employed by any one employer, or where less than
one hundred persons are employed such employer shall be entitled
to two (2) employees of this class.
(c) Thle minimum wage that shall be paid by any employer to
all employees, others thanl those covered in Section (a) except com-
mission salesp~eople, shaUl be at the rate of $15.00 per week, provided,
however, that office boys and girls mlay be paid not less than SQX
of such minimum wage, but the total number of such office boys or-
girls shall not exceed in any calendar month 5% of the total number
oflr all employees covered by thte provisions of this paragraph (c)
"i'''' and provided further, that drhere a State law provides a higher
mFr'.rinimum wage, no person shall be paid a lower wage than th~at
~areid by such law, within that State.
;i .::_a. 2.-A~ny system of contracting shop work by: which an em-
-ployee undertakes to do a piece of workz at a specific price and en-
;. gages other employees to work for him is prohibited by this Code.
r;SEc. 2. The wage differentials for all operations shall be equitably
in~~tdj-ted, and. inl no castj shall they be decreased. No unfair ad-
ranag shall be taken of any employee in making this code effective.
Eaich.member of the industry shall report all such readjustmlents
.to~the Code Authority within 30 days of the effective date.
8zo. 4. N~o employer shall contract for the fabrication and/or
erection of any product of -this Industry with any employer or em-
plaee, except when such employer or employee agrees to comply with
~thalabur- provisions of this Code during the performance of the
Sun. &i Each employer shall post in each workshop and central
notice board in his factory, Articles V and VI of this Code.
ARTICLE VII-STATUTORY PROVISIONS
..: 11~ employers in the Industry shall comply with the following
provisions of the National Industrial Recovery Act:
1. That employees shall have the right to organize and bargain cof-
lectivelyr through representatives of their own choosing, and shall be
free from the interference, restraint or coercion of employers of
labor, or their agents, in the designation of such representatives or in
'self-organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection.
2. That no employee and no one seeking employment shall be re-
quired a~s a, coalition of employment to join any company umion or
to reframn from joinmng, orgamamig, or assistmng a, labor organization
of his own choosing; and
3. That employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President.
(a) Nothing in this Code is to prevent; the selection, retention, and
advancement of employees on th~e basis of their individual merit.
1. Akny member of the industry may participate in the endleatvors
of- the A.B.M.A., Committee of Industrial Recovery in the prepara;-
~ton of any revisions of, or additions or supplements to, this Code
by scooping the proper pro rata share (in the proportion of dollar
Billings by each in the industry to the total dollar billings of this
industry or in such -other mariner as the A.B.MI.A. Committee of
Industrial Recove-ry may deem advisable, subject to t~he approval of
the~ Administrator) of the cost; and responsibility of administering
thris Code; provided, however, that no inequ~itable restriction upon
li~nebership in the Association shall at any time be imposed.
2. The Associ ation and its members bin d themselves in .evsii,.:
to carry out the spirit as well as the letter of this Code. : .I~~i~::;
3. This Code is adopted in a spirit of fairness to all c~onckr~ernII~;i
and it is the intention of the members of the industry. to alccrd t
those from whom they purchase the same treatment that they.expect
to receive from those to whom they sell.
ARTICLE IX -ADMIINISTRATION *
1. To facilitate the effective administration of this Code, nd
to provide the Administrator with requisite data as to the observance
or nonobservance thereof, the A.B.M.A. Committee of Industrial
Recovery is hereby designated as a Planning and Fair PEractice
Agency to cooperate with the Administrator in the enforcement of~
this Code. The Administrator may also appoint one or more repre-
sentatives to serve with the Committee in an advisory capacity.
Such appointees to have no vote. Such Comm~ittee shall.have the
following powers and duties, all of which shall at all Etimes be
subject to the approval of the Administrator:.
(a) To collect from the members of the industry the reports and
data provided for in this Code, or in any supplement thereof, which
may hereafter be adopted. These reports and data shall be submit-
ted to a, full-time Manager (or his Deputy) who shall be appointed
by the Comlmittee. Aell such reports aInd data shall be krept con-
fidentiall by such Manager (or his Deputy) excepting insofar. as ma
be necessary for thle effective enforcement of this Code, but shal
be available to the Administrator andi his representatives.
(b) In addition to information required to be submitted to the
Committee, there shall be furnished to government agencies such
statistical information as the Administrator may deem al necessary
for the purpose recited in Section 3 (a) of theNainlIdsrl
(c) To authorize the. Manager (or his Deputy) to make such
investigations as in its opinion may be necessary to effectuate the
proper administration of this Code.
(d) To makie reastynable rules and regulations designed to help
effectuate the purposes of the Code.
(e) To hear complaints and, if possible, adjust the same.
AnRICLE X-F~EAIR PRACTICE
1. In the conduct of its business, each member of the indlustry
shall use a method of cost accounting which recognizes and includes
all items entecringa into costs, as set forth in t~he Standard Account-
ing and Cost System adopted by The Machinery Builders Society,
4th Edition, revised September 1933, such system of accounting to ;;
be subject to the approval of the Administrator.
2. No member of this Industry shall sell any combination of prod-~
ucts, except repair and replacement'parts, manufactured bty h~ing
or by any owned or controlled subsidiary, at a price less rthan the.
sum of his established~ selling prices for all items included inauth :
combination. .1;' ,:i
;; o rebates, re~funds, creditl, or ~unearned discounts, whether .in the
form of money or otherwise, or extend to certain purchasers services
'or privileges not extended to other purchasers under like terms and
4 Te settlement of old accounts for less than the full amount as a
consideration for accepting a proposal is prohibited under the mean-
ingC oef clause 3.
5. No member of the Industry shall make a deposit for the privi-
lege of receiving plans and specifications and the opportunity to bid
ona nP IIOtract without an agreement by the issuer that such deposit
will be returned to said member of the I~ndustry when th-e contract
h as been awarded or when said plans and specifications have beenz
Returned by said member to the issuer.
6. The Committee will recommend to the Administrator forms of
contrast which, when approved, will be standard in all respects,
except tat they will not attempt to describe the equipment quoted
uxpon. T"hey will standardize the wording of all general conditions,
warranties, terms, and deferred payments, guarantees of perform-
a~nce (If any) bonus and penalty clauses (if any), etc. These forms
of COn~trt and no others shall be used by the industry except in
cases where Federal, State, or Municipal laws necessitate otherwise.
7., No! member of the industry shall make a guarantee of maninte-
s nance because of the impossibility of defining and maintaining the
conditions under which such a guarantee can honestly be made.
Guarantees of performance are permissible when conditions, under
which such guarantees are to be met, are definitely stated. Guar-
: antees of workmanship and material are quite proper. No member
of the industry shall promise a better performance or make a higher
guarantee than his previous experience leads him to believe he can
8. No member of the industry shall ccp~lt. a. cont.rct. continuing a
penalty clause either for performance of t.he apparatus sold or for
time of delivery, unless the contract shall also contain a cllause pro-
viding a bonus to the contractor at the same rate as the rate of
penalty, except in cases where Federal, State, or Municipal Inws
9. No member of thie industry shall accept a contract containing
a clause providing for liqluidatled damag~bes, except in cases where
c:Federal, State, or Municipal lawfs necessitate otherwise.
10. WVhere purchaser's specifications include a bonus clause for
;i' performance, efficiency, etc., in excess of that gularanteed, no member
of the industry shall deduct from the price any bonus or portion
thereof which he anticipates will be earned by reason of his obtaining
a better performance or efficiency than that guaranteed.
11.i~~ I. Where purchaser's specifications include a penalty clause for
per-formance, efficiency, etc., less than that guaranteed, no member
dl;: f the industry shall make a guarantee in excess of that which he
expects to obtain anticipating the acceptance of a penalty as a basis
1.: ~for redlucing the cost to the purchaser.
*"'12. No member of the industry -shall circulate threats of suit for
iiringent of patents or trade marks among customers of a coml-
petitor not in good faith but for the purpose of harassing and
.lii I ntimaidating customers.
13. No member of the industry shall disseminate falsely or mikleadt-
ing information relative to competitor's products, selling prices,.
credit standing, ability to perform work, or labor conditions, among;
14. No member of the industry shall make false or misleading
statements as to time of delivery, performance, facilities, equipment,
or abilityV to perform work.
15. No member of the ind-iust ry shall attempt to induce the breach
or abandonment of any contract between a manufacturer and his
16. No member of the industry shall be a party to commercial
bribery in any form or under any condition.
17. N~o member of the industry shall enter into a written or oral
agreement with any person that one or more clauses of the contract
or the specification will not be enforced, thereby receiving an unfair
advantage over competitors.
18. No member of the industry shall purchase patents from cus-
tomers, their officers, engineers, or employees, for the purpose of
influencing sales to such customers.
19. No member of this industry shall cause or permit any conduct
by any one of his employees or agents which would constitute a
violation of this Code.
No provision in this Code shall be interpreted or applied in such
a manner as to:
1. Promote or permit monopolies or monopolistic practices";
2. Permit or encourage unfair competition;
3. Eliminate, discriminate against, or oppress small enterprises.
ARTICLE XII-RIGHITS OF PRESIDENT
This Code is hereby made expressly subject to the right of the
President, pursuant to Section 10(b) of thle National Industrial Re-
covery Act, from time to time to cancel or modify any order, ap-
proval license, rule, or regulation issued under Title I of said Act,
and specifically, but without limitation, to the right of the President
to cancel or modify his approval of this Code or any conditions
imposed byl him upon such approval.
Such of the provisions of this Code as are not required to. be in-
eludedl therein by the National Industrial Recovery Act may, with
the approval of the President, be modified or eliminated upon the
application of t~he A.B.M~.A.- Committee of Industrial Recovery as
changes in circumstances or experience may indicate. It is conI-
templated that fromt time to time supplementary provisions to this
Code or additional Codes will be submitted by t~he A.B.M.A. Com-
mittee of Industrial Recovery for the approvall of the Presi~dentr to
further effectuate the purposes and policies of Title I of the National
Industrial Recovery Act consistent with the provisions hereof.
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