i __.. Registry No. 1314-01
S NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
SI FIRE EXTINGUISHING APPLIANCE
AS APPROVED ON NOVEMBER 4, 1933
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UNIV. OF FL i.
D US. DEF011EI.En3In STATES
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CODE OF FAIR COMPETITION FOR THE FIRE EXTINGUrSIING APPLIANCE
An application having been duly made, pursuant to and in full
compliance with the provisions of title I of the National Recovery
Act, approved June 16, 1933, for my approval of a Code of Fair
Competition for the Fire Extinguishing Appliance Industry, and
hearings having been held thereon and the Administrator having
rendered his report containing an analysis of the said code of fair
competition together with his recommendations and findings with
respect thereto, and the Administrator having found that the said
code of fair 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 (a) of section 3 of the said act have been
NOW THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise do adopt and approve the report, recommendations and
findings of the Administrator and do order that the said code of
fair competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
THE WHITE HOUSE,
November 4, 1933.
HUGH S. JOHNSON,
*,' .. ,. 1 ::'::
NOVEMBE 3, 1983.
The White House.
Smi: The proposed Code of Fair Competition for the Fire Extin-
guishing Appliance Manufacturing Industry was submitted to the
Administrator on August 23, 1933, by the Chemical Fire Extin-
guisher Association, Inc., representing approximately 60% of the
known manufacturers of the Industry and approximately 85% of
the sales volume. The hearing was conducted in Washington on
October 23, 1933, and the code was revised during the recess of the
Hearing and is submitted in its present form for approval. All
persons who requested appearances were properly heard in accord-
ance with statutory and regulatory requirements.
The Industry, while relatively small in numbers of manufacturers,
is of great importance to the entire country in the development
devices for extinguishment of fires. The research and development
divisions of the Industry maintained by a substantial number of the
members are constantly seeking to improve present fire-extinguishing
devices, and to discover through new chemical formulae and other-
wise, more efficient appliances for the purpose of reducing the
enormous annual fire loss (1932, approximately $500,000,000). To
this extent the Industry must be recognized as doing a constant
public service, not only from the standpoint of reducing fire losses
but in the reduction of fire-insurance rates on stores, factories,
During the past four years the Industry has experienced a drop in
sales in excess of 70%, but in an attempt to spread the work among
their employees have only decreased the number by 338/3%. It is
estimated that with a return of the average business of the 1928-
29-30 period and with the hours of work reduced from 46 hours to
35 hours per week, the Industry would employ approximately 33%%
more workers than it employed during the period above.
Article III.-Provides a 35 hour week, averaged over a 3 months'
period, and excepts only watchmen, outside sales and service men,
and employees receiving a salary in excess of $35.00 per week.
Article IV.-Provides a minimum rate of 40 cents per hour for
factory or mechanical workers or artisans. Female employees
engaged in similar lines of work receive the same wage. An equi-
table adjustable of wages above the minimum for all employees is
Article V.-Providcs Mandatory Labor Provisions, minimum age
requirements of 16 years, and prohibition against reclassification of
Article VI.-Provides a Code Authority of seven members by the
Industry with the right of the Administrator to appoint two addi-
Stional nonvoting members. The Code Authority upon approval and
subject to the approval of the Administrator, will take steps immedi-
ately to adopt (from data 'to be supplied by the members to an
impartial agency) a representative cost of products of the Industry.
The Industry agrees not to sell products below such representative
cost as defined in this Article.
Article VII.-Provides Unfair Trade Practices.
Article VIII.-Publicity of Prices and Terms and Conditions of
Article IX.-General Provisions.
Article XII.-Effective Date.
The Administrator finds: 'A. This Code complies in all respects
with the pertinent phrases of Title I of the Act including without
limitation subsection A of Section 7 and subsection B of Section 10
thereof. B. The Chemical Fire Extinguisher Association, Inc., is
truly representative of the Chemical Fire Extinguishing Appliance
Manufacturing Industry, and the bylaws of this Association contain
on inequitable restrictions on membership. C. The Code is not de-
signed to promote monopolies or to eliminate or oppress small enter-
prises and will not operate to discriminate against them and will
tend to effectuate the policy of Title I of the National Recovery Act.
It is recommended, therefore, that this Code be approved.
SHUGH S. JOHNSON,
CODE OF FAIR COMPETITION FOR THE FIRE EXTINGUISH.
ING APPLIANCE MANUFACTURING INDUSTRY
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are submitted as a Code of
Fair Competition for the Fire Extinguishing Appliance Manufac-
turing Industry, and upon approval by the President shall be the
standard of fair competition for such Industry and shall be binding
upon every member thereof.
Wherever used in this Code or in any schedule or supplement
appertaining thereto, the terms enumerated in this article shall have
the meanings herein defined unless the context shall otherwise clearly
SECTION 1. The term the President" means the President of the
United States of America.
SEC. 2. The term the Industry" as used in this Code shall mean
the manufacturing in the United States and sale by manufacturers
of fire-extinguishing appliances of all types, including hand-portable,
two-wheeled portable, and stationary appliances, and devices there-
for; and charging units and chemical compounds used therewith;
and service parts; and such other products as may from time to time
be included under this Code. This term is not intended to include
motor fire apparatus or automatic-sprinkler systems.
SEc. 3. The term "Code products" as used herein means the
products enumerated in Section 2.
SEc. 4. The term member of the Industry includes anyone en-
gaged in the Industry as above defined, either as an employer or on
his own behalf.
SEC. 5. The term "Association" means the Chemical Fire Extin-
guisher Association, Inc., an incorporated association having its
principal office at present at 7 East 44th Street, New York City.
SEc. 6. The term the Act" means the National Industrial Recov-
ery Act as approved by the President June 16, 1933.
SEC. 7. The term the Administrator" means the Administrator
appointed by the President under the Act and at the time in office.
SEC. 8. The term "primary market" means that in which the
"distributor or jobber purchases from the manufacturer.
SEc. 9. The term "secondary market" means that which is served
by the distributor or jobber."
SEC. 10. The term "employee" as used herein includes anyone
engaged in the Industry in any capacity receiving compensation for
his services, irrespective of the nature or method of such compensa-
SEc. 11. The term "employer" as used herein includes anyone by
whom any such employee is compensated or employed.
SEC. 12. Trade Factors known as "distributors" are defined as
follows: "Anyone engaged regularly in selling Code products, who
buy them from a manufacturer for resale, who advertise them-
selves on their letterhead or otherwise as in the fire-protectica
business and as being distributor for the manufacturer's Code prod-
ucts, and who function to all intents and purposes as the factory
branch of the manufacturer in that trade area." Other "Trade
Factors shall be defined as provided in Article VI, Section 2, (f).
SECToN 1. No factory or mechanical worker or artisan shall be
permitted to work in excess of 8 hours in any twenty-four (24)
hour period nor in excess of 35 hours per week averaged over a
three months' period, with not more tan 40 hours in any one
week; no other worker shall be permitted to work in excess of 40
hours in any one week or 8 hours in any twenty-four (24) period;
provided, however, that such limitation shall not apply to watch-
men, outside sales and service men, and employees in a managerial
or executive capacity who receive more than $35.00 per week.
SEC. 2. The maximum hours fixed in the foregoing section shall
not apply to any employee on emergency maintenance or emergency
repair work involving breakdowns or protection of life or property,
but in such special case at least one and one third (11/i) times his
normal rate shall be paid for hours worked in excess of the maximum
hours herein provided.
SEC. 3. No employees shall work or be permitted to work for a
total number of hours in excess of the number of hours prescribed
for each week and day, whether employed by one or more employers;
provided, however, that if any employee should be employed by
more than one employer for an aggregate period in excess of such
maximum without the knowledge or connivance of any one of such
employers, such employer shall not be held to have violated this
SECTION 1. No factory or mechanical worker or artisan shall
be paid at less than the rate of forty (40) cents per hour, nor any
other employee at less than thirty-five (35) cents per hour, except
outside commission salesmen; and except that learners and appren-
tices (for a period of not to exceed six (6) weeks), casual and
young girl employees engaged in mail room and miscellaneous office
work, superannuated or partially disabled employees and pensioners
may be paid at the rate of not less than 80 percent of the foregoing
rates; provided, however, that the number of such employees who
are factory or mechanical workers or artisans, shall not, at any time,
constitute more than 5% of the employees of any member of the
industry, nor shall the total number of all such employees exceed
10% of the employees of any member of the Industry.
SEC. 2. Female employees performing substantially the same work
as male employees shall receive the same rates of pay as male
" .. SE83. Minimum hourly rates of pay established by this Article
s:. shall apply regardless of whether an employee is compensated on
a time-rate piecework, or other basis.
SEc. 4. An equitable adjustment shall be made of the wages of
the employees now receiving more than the minimum wage as
provided in this Code. In no case shall the rates be decreased.
ARIncLE V-GENERAL LABOR PROVISIONS
I SEcrow 1. No person under 16 years of age shall be employed in
the Industry, and no minor under 18 years of age shall be engaged in
any harzardous occupation.
SEC. 2. Employees shall have the right to organize and bargain
collectively, 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 nutual aid or protection.
SEO. 3. No employee and no one seeking employment shall be re-
quired as a condition of employment to join any company union or to
refrain from joining, organizing, or assisting a labor organization
of his own choosing.
SEc. 4. Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President.
SEc. 5. Within each State, this Code shall not supersede any laws
of such State imposing more stringent requirements on employers,
regulating the age of employees, wages, hours of work, or health,
fire or general working conditions, than under this Code.
Sae. 6. Employers shall not reclassify employees or duties of oc-
cupations performed by employees so as to defeat the purposes of
SEO. 7. Employers shall post in a conspicuous place, accessible to
all employees, the labor provisions of this Code.
To further effectuate the policies of the Act, a Code Authority
is hereby constituted to cooperate with the Administrator in the
administration of this Code.
SECTION 1. Organization and Constitution of Code Authority.
(a) The Code Authority shall consist of seven (7) individuals
representing members of the Industry, selected by a method approved
by the Administrator. The Administrator, in his discretion, may
appoint not more than two (2) additional members, without vote.
(b) The Association and any other group or association directly or
indirectly participating in the selection or activities of the Code
Authority shall: (1) impose no inequitable restrictions on member-
ship, and (2) submit to the Administrator true copies of its articles
of association, bylaws, regulations, and any amendments when made
thereto, together with such other information as to membership,
organization, and activities as the Administrator may deem neces-
sary to effectuate the purposes of the Act.
(c) In order that the Code Authority shall at all times be truly
representative of the Industry, and in other respects comply with
the provisions of the Act, the Administrator may provide such
hearings as he may deem proper; and thereafter if he shall find that
the Code Authority is not truly representative or does not in other
respects comply with the provisions of the Act, may require an
appropriate modification in the method of selection of the Code
SEc. 2. The Code Authority shall have the following duties and
powers to the extent permitted by the Act, subject to the right of
the Administrator on review to disapprove or modify any action
taken by the Code Authority:
(a) With a view to keeping the President and the Administrator
informed as to the observance or nonobservance of the Code, and
as to whether the members of the Industry are taking appropriate
steps to effectuate the declared policy of the Act, the Code Authority
shall report to the Administrator at such times and concerning such
conditions in the Industry as he may from time to time require,
and each member of the Industry shall file in the office of the Asso-
ciation or such other office as the Code Authority may designate and
at such time, in such form, and for such periods as required by the
said Code Authority, reports with respect to wages, hours of labor
conditions of employment, number of employees, production, and
other matters pertinent to the proper supervision of the Industry
as determined by the Code Authority.
(b) All information of any nature which may be required by the
Code Authority shall be collected by the Association or through a
disinterested and impartial agency selected by the Code Authority,
and such information shall be kept confidential by the agency, except
such as is required by the Code Authority for the proper enforce-
ment of the Code, and with the further exception that all such
information shall be fully available to the Administrator. Only
information which is essential to the proper supervision of the In-
dustry or to the enforcement of this Code may be so requested by the
(c) The Code Authority shall designate an agent or agents to
investigate complaints or violations of the Code. If upon such
investigation any complaint of a violation of the Code shall be sub-
stantiated in any material respect, the member of the Industry
guilty of such violation shall be subject to all penalties provided
for in the Act.
(d) The Code Authority shall study conditions in the Industry
and shall make any recommendations from time to time to the Ad-
ministrator which it deems desirable to further the policies of the
Act, including those specifically mentioned below, which upon ap-
proval of the President and after such hearing as may be pre-
scribed shall become a part of this Code and shall have full force
and effect as provisions hereof.
(e) The Code Authority shall proceed to establish a uniform sys-
tem of cost accounting in conformity with accepted standards, for
use by the members of the Industry. Upon approval by the Adminis-
trator, such system of cost accounting shall be used by each member
of the Industry in determining his costs. Each member of the In-
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S dustry shall report his individual costs, computed in accordance with
said system, to a disinterested and impartial agency designated by
the Code Authority. Such agency shall determine the costs of that
representative member of the Industry whose costs are lowest. Such
representative costs shall be published to the Industry. No member
of the Industry shall sell products of the Industry below such repre-
sentative costs. Such representative- costs shall be revised from. time
to time at reasonable intervals. The term "representative member
S of the.Industry" is defined as being one who manufactures within
F his own plant a representative line of the products of the Industry,
w', ho maintains research and development departments for improve-
ment in the art of fire extinguishment, and who through educational
i.: publicity and sales promotion broadens the market and develops
business for all members of the Industry.
-.r (f) The Gods Authority shall establish definitions of Trade Fac-
tora and such standard differentials in price to the various classes
6f Trade Factors thus defined, as may be necessary to preserve stabil-
ity in the primary and secondary markets for the products of the
Industry. Upon approval by the Administrator, such definitions
and differentials shall be binding upon every member of the Industry.
it is contemplated that such standard differentials will be based upon
differences incost in selling to the various classes of Trade. Factors
sad differences in the services rendered thereby. -
(g) If the Code Authority should have reason to believe that any
report submitted by any member of the Industry is inaccurate, it
may. designate a disinterested and impartial agency to- verify such
report by an examination of the relevant books and records of the
member of the Industry concerned.
.(h) Members of the Industry shall be entitled to participate in
and share the benefits;of the activities of the Code Authority and
to participate in the selection of the members thereof by assenting
to and complying. with the requirements of this Code and sustaining
their reasonable share of the expenses of its administration. The
reasonable share of the expenses of administration shall be determined
by the Code Authority, subject to review by the Administrator, on
the basis of volume of business and/or such other factors as may be
deemed equitable to be taken into consideration.
SEc. 3. In addition to the information required to be submitted to
the Code Authority, there shall be furnished to government agencies
such statistical information as the Administrator may deem necessary
for the purposes recited in Section 3 (a) of the Act.
SEc. 4. Appeals.
(a) Any interested party shall have the right of complaint to the
Code Authority and a prompt hearing and decision thereon, under
such rules and regulations as it shall prescribe, in respect to any
act of any agent or agency designated by the Code Authority to
act in its behalf.
(b) Any interested party shall have the right of appeal to the
Administrator, under such rules and regulations as he shall prescribe,
with respect to any decision, rule, regulation, order, or finding made
y: the Code Authority, or in the event of failure of the Code Author-
ity to take action within a reasonable time after a request or
complaint by an interested party.
ARTICLE VII-UNFTAI TRADE PBACTIrcE
The following practices constitute unfair methods of competition
for members of the Industry and are prohibited.
SECTION 1. Mi8representation.-Misrepresentation on a price list,
quotation sheet, advertising matter, etc.: as to the average weight or
any other feature of a product; or the use thereon of a misleading
comparison with a competitive type of product. A misleading
statement as to the business integrity, merchandise, policy, or finan-
cial standing of any competitor. Misrepresentation on a place or
a label or otherwise, either on the merchandise or on its carton, as
to an exclusive, patented, or other feature.
SEC. 2. Faulty Invoicing.-Fictitious invoicing of merchandise;
or omission from an invoice of any of the special features of the
product shipped against the invoice or of any of the terms pertain-
mg to the sale. Allowing terms of payment more favorable than
2% cash discount 10th proximo or more favorable than net 80th
proximo, or granting future invoice dating on any shipment of
Code products (except to "distributor ").
SEc. 3. Improper Deductions.-Permitting a customer in making
his remittance, to make any deduction not covered by the terms of
sale appearing on the invoice.
SEc. 4. Extras.-Granting a rebate under the guise of an "extra"
at no extra cost to the customer.
SEc. 5. Excessive or Misleading Allowances.-Offering or granting
to a customer an excessive allowance for alleged defective merchan-
dise, an alleged shortage, or for adjusting a complaint of any kind;
or offering an unnecessary and/or unreasonable allowance on goods
taken in trade; or offering goods minus some necessary item which
it is the published and established practice of the manufacturer and
of.the Industry to include as a part of a Code product; or allowing
freight other than at lowest l.c.1. freight rate effective on date of
shipment, or on shipments of less than 100 pounds; or an allowance
for cartage outside the normal city delivery radius from a manu-
facturer's factory or factory branch stock.
SEC. 6. Free Goods.-Offering to ship or the shipping or in any
way delivering free goods of any kind to any customer for resale by
SEC. 7. Subnormal Pricing of Other Products.-The pricing of any
product manufactured and/or sold by a manufacturer in this In-
dustry, whether or not such product is included under the Code
of Fair Competition of this Industry, at a price below the published
prices of the manufacturer of that product, when such product is
ordered or sold with Code products.
SEc. 8. Excessive WVarranties.-Guaranteeing a product, whether
voluntarily or on request, on condition more favorable to the pur-
chaser than the following: Freedom from defects in material and
workmanship under the use and service for which the product is
recommended by the manufacturer; obligation to replace or repair,
f.o.b. manufacturer's factory, any part or parts returned to his fac-
tory, transportation charges prepaid, the manufacturer to be the
judge of whether or not the alleged defect is present; no obligation
for consequential damages or other items of expense which normally
: : : '. 7 ..
:canu ot. be anticipated and equitably comprehended. in original costs
r; telling prices.
SEa: :.9 Djis yn in.0tiorlo Betwoee.n PIurchasers.--Discrimination in
prices or terms of sale between purchasers of the same class, whether
by misclassifi ation or otherwise.
SE. '100.Failty .Methods of Handling Orders and Quotations.-
Handling orders or.quotations as follows: .
(o) .Accepting orders incomplete with respect to specifications,
prices, terms, and the like.
). (b),'Making quotations which are not. contingent upon a change in
the.market, except (x) quotations to the Federal Government, a State
Government, or a county or a municipality, in response to an official
inyitation.for bids containing stated delivery requirements; and (y)
quotations .for a specified quantity of Code products for. a specific
S building or other construction project, if a record of such quotation
.is filed with the Secretary of the Association.
(c) Giving a purchaser the benefit of lower prices on orders re-
ceived prior to or on the effective date of a price increase duly filed
pursuant to Article VIII on this Code, unless shipment is made with-
n:.twenty (20). days (Sundays and holidays excluded) following the
.effective date of such price increase. A postmark on a letter or the
filing time on a telegram shall be deemed the date of receipt thereof.
Provided, however, that nothing ip this paragraph (c) shall apply to
a written order from the Federal Government or a jState Government
..r a county or municipality; or to a written order for a specified quan-
tity of Code products for a specified building or other construction
project; if a,record of such order is filed with the Secretary of the
.Association at the time of its acceptance.
(d) Making guarantees against market advance or decline.
.SE. .11. Destructive Marketing.-Continuing to supply any trade
factor whose practices are duly proved to be destructive of the market,
,at prices which enable him to continue destructive marketing.
SEC. 12. Selling.Below Published Prices.-Selling at a price which
.is below current published prices, excepting that discontinued lines or
surplus stocks or inventories which must be converted into cash to
meet immediate needs, may be sold at such prices as are necessary to
.move. the merchandise into buyers' hands; provided, however, that
all such stocks or inventories must first be reported to the Code Au-
thority, and be disposed of subject to the approval of the Code
SEC. 13. Other Unfair Practices.-Nothing in this Code shall limit
the.effect of any adjudication by the courts, or holding by the Federal
Trade Commission on complaint, finding and order that any practice
or method is unfair, provided that such adjudication or holding is
not inconsistent with any provision of the Act or of this Code.
ARTICLE VIII-PUBLICITY or PRICEs, TERMS, AND CONDITIONS OF SALE
SSECTION 1. Each member of the Industry shall not before twenty
(20) days but within thirty (30) days after the effective date of this
Code, file in the office of the Association or such other office as may
be designated by the Code Authority, for immediate distribution to
all members of the Industry copies of his price lists or discount
sheets showing the prices for all of the Code products which he
markets, and from and after the expiration of such thirty (80) days
each member of the Industry shall at all times maintain on file with
said office price lists or discount sheets showing the prices for all its
said products and shall not make any change in such prices, except
by filing notice of such price change as hereinafter provided.
SEC. 2. None of the prices shown in any price list or discount sheet
filed by any member of the Industry as herein provided, shall be
changed except by the filing by such member of the Industry, for
immediate distribution to all members of the Industry, copies of
his new price lists or discount sheets.
SEC. 3. Each price list or discount sheet shall state the date upon
which it shall become effective, which date shall be not less than ten
(10) days after the date of filing such price list or discount sheet
with the said office: Provided, however, That the first price lists or
discount sheets filed by any member of the Industry, as above pro-
vided, shall take effect on the date of filing thereof.
SEC. 4. In all instances, members of the Industry shall employ the
pricing system of list price subject to discount.
SEw. 5. The operation of the foregoing shall at all times be subject
to the approval of the Administrator.
SECTION 1. Each member of the Indutsry shall be responsible for
the observance of this Code by any controlled subsidiary or affiliate
SEC. 2. If the operation of any provision of this Code should in-
terfere with the exercise of existing lawful patent rights or of rights
under an existing lawful patent rights or of rights under an existing
lawful patent licensing agreement, any one affected thereby may
apply to the Code Authority, which shall have power to grant an
exemption, subject to the approval of the Administrator.
SEC. 3. Articles VII and VIII of this Code shall not apply to
direct export sales of products of the Industry. The Code Author-
ity, subject to the approval of the Administrator, shall have power
to grant a similar exemption, upon application by a member of the
Industry, in regard to sales destined ultimately for export.
SEC. 4. Nothing contained in the Code shall be deemed to consti-
tute any of the members of the Industry partners for any purpose.
SEC. 5. If any member of this Industry is also a member of another
Industry, the provisions of this Code shall apply to and affect only
that part of his business which is included in this Industry.
SECTION 1. This code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provision of subsection (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule, or regu-
lation 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 by him upon his
SEC. 2. The Code Authority shall from time to time make to the
Administrator such recommendations, including amendments of the
Code, as in their judgment will aid the effective administration of
this Code or may be necessary to effectuate within the Industry the
purpose of the Act as administered.
SEc. 3. Such of the provisions of this Code as are not required to
be included therein by the Act may, with the approval of the Presi-
.: dent, be modified or eliminated as changes in circumstances or expe-
riences may indicate. It is contemplated that from time to time
S supplementary provisions to this Code will be submitted for the
* approval of the President, including in particular, but without
limitation thereto, supplementary provisions to prevent unfair com-
petition in prices and other unfair or destructive competitive prac-
tices and to effectuate the other purposes and policies of Title I of the
Act consistent with the provisions thereof.
ARTICLE XI-MONOPOLIES, ETC.
No provision of this Code shall be so applied as to permit monopo-
lies or monopolistic practices, or to eliminate, oppress, or discriminate
against small enterprises.
ARTICLE XII--EFFECTIVE DATE
This Code shall become effective on the day of its approval by the
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