Code of fair competition for the alloy casting industry as approved on January 30, 1934


Material Information

Code of fair competition for the alloy casting industry as approved on January 30, 1934
Portion of title:
Alloy casting industry
Physical Description:
p. 563-573 : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Metal castings industry -- Law and legislation -- United States   ( lcsh )
Alloys   ( lcsh )
non-fiction   ( marcgt )


General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Approved Code No. 237."
General Note:
"Registry No. 1201-1-02."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004931526
oclc - 646192180
System ID:

Full Text

Approved Code No. 237

Registry No. 1201-1-02







DOCU1 ..'7- '.T .:.

U.S. .EPQ-n^: ..


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Approved Code No. 237



As Approved on January 30, 1934




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 Code of
Fair Competition for the Alloy Casting Industry, and hearings hav-
ing been duly held thereon and the annexed report on said Code,
containing findings with respect thereto, having been made and di-
rected 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; do hereby incorporate by reference said annexed
report and do find that 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 Code of Fair Com-
petition be and it is hereby approved; provided that the continued
participation of the Alloy Casting Association in the Code Authority
after thirty days from the effective date of this Code shall be contin-
gent upon its amending its constitution and by-laws to the iatisfac-
tion of the Administrator; and further provided that the provisions
of Article VII, (Section 1), insofar as they prescribe a waiting pe-
riod between the filing with the Code Authority and the effective
date of revised price lists or revised terms and conditions of -ale be

36707 313-155---34



and they are hereby stayed peldinig my further Order either within a
period of sixty days from the effective date of this Code or after the
complet:,-n of a study of open price associations now being con-
ducted by the Nntinal Recovery Administration.
A d 7 i r .' ,a.o r for Industrial, R(;co ve y.
Approval recomn tended.
Division Administrator.
Jan uary 30, 1934.

The White House.
SIR: This is a report on the Code of Fair Competition for the
Alloy Casting Industry as revised after the hearing conducted
thereon in Washington, D.C., on November 2, 1933, in accordance
with the provisions of the National Industrial Recovery Act.


This Code provides for a maximum work week of forty (40)
hours, with permission for forty-eight (48) hours per week during
peak periods, not to exceed twelve (12) weeks in any year. A
tolerance of ten (10) percent longer hours is provided for repair
work employees during emergencies.
Those who are exempted from the provision for maximum hours
are managers, executives, and research technicians, receiving more
than thirty-five dollars ($35.00) per week, outside salesmen and
service men and watchmen. The watchmen are limited to fifty-six
(56) hours per week.
The minimum wage rate provided is forty (40) cents per hour,
regardless of the basis upon which workers are compensated. Ex-
ceptions are made for partially incapacitated workers. Office work-
ers are to be paid not less than fifteen dollars ($15.00) per week,
and office boys and girls are to le paid at not less than eighty (80)
percent of the minimum weekly wage.
Equitable adjustments of wages above the minimum are provided
" for and employers are prohibited from reclassifying employees so
as to defeat the purpose of the Act.


The industry is small and comparatively new. The invested capi-
tal amounts to $4,000,000 and the annual sales volume, calculated
on the rate of operations during November, was $1,700,000 although
the annual capacity of the industry, expressed in dollar volume, is
The number of employees in 1929 was 900, in 1932 it was 500, in
October 1933, 600, and under the Code it is estimated that 650 per-
sons will be employed, an increase of about nine (9) percent. It is
estimated that the pay roll of the industry will be increased about
$1,000 per week.
The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the proceed-
ings in this matter:


I find that-
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the Natinal Illndulltrial Recovery Act. including
removal of obstructions to the fre,- flow of interstate and foreign
ccmrnlleric which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of indus-
try for the purpo:c of cooperative action among the trade groups, by
inducing and maintaining united antioii of labor and management
under adequate governmental sanctions and supervision, by eliminat-
ing unfair competitive practices, by promoting the fullest possible
utilization of the prc-ent productive capacity of indu-tries, by avoid-
ing unildu.' retiiction of production (except as may be temporarily
reIiqired), by increa-ing the consumption of industrial and agricul-
tural products throutigl increasing purcha-ing power, by reducing
and relieving un lemploymnent, by improving s-tandards of labor, and
by rehabilitating industry.
(b) Said Indlustry normally employs not more than 50,000 em-
plo"yee,-; and is not clas-ified by me as a major industry.
(c) The Code as approved complies in all respects with the per-
tinenit. provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant group
is an induii.trial group truly representative of the aforesaid Indus-
try; and that said group imposes no inequitable restrictions on
admiiiion to membersliip therein.
(d) The Code is not designed to and will noit permit monopolies
or monopolistic practices.
(e) The Code- is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Tho-,e engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
For these reasons, therefore, I have approved this Code subject to
the following condition: that the continued participation of the
Alloy Casting Association in the Code Authority after thirty days
from the effective date of this Code shall be'contingent upon its
amending its constitution and bylaws to the satisfaction of the
Respect fully,
2A d(i t'niif; ator.
JANUARY 30, 1934.



To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code of
Fair Competition for the Alloy Casting Industry, which shall be the
standard of fair competition for the industry, and shall be binding
upon every member thereof.


The term "alloy castings as .ued herein includes only castings
containing nickel and/or chromium in excess of 16% and substan-
tially free from copper, zinc, lead, or tin, except that this Code shall
not apl)ply to alloy castings produced and/or sold as a part of the
products, including finished and semifinished parts thereof, of an
owning or affiliated company but not sold in the open market as
rough alloy castings (as distinguished from finished and/or semi-
finished parts) in competition with similar rough castings produced
by other manufacturers.
The term affiliated company means a company whose relations
to another company are such that either one has directly or indi-
rectly more than 50% stock interest in the other, or that a third
company has directly or indirectly more than 50% stock interest
in both.
The term "member of the industry" as used herein means and
includes any manufacturer of products subject to this code.
The term association as used herein means the Alloy Casting
Association, Inc., a nonprofit corporation devoted to the betterment
of the industry and the effectuation of the National Industrial
Recovery Act.
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 payment of such
The term employer as used herein includes anyone by whom
any such employee is compensated or employed.

SECTION 1. Except as hereinafter stated no employer shall employ
any employee for more than forty (40) hours in any week, pro-
vided, however, that in order to meet increased demands over which
the employers have no control, the said hours of employment may


be ircrea.sed to meet such contingencies, but in no event shall such
employees work nliire than a total of forty-eight (48) hours per
week for not to exceed twelve (12) weeks in any year. Repair-work
employvee-, to the extent required by emergencies may be employed up
to 10'' longer hours than other factory employees.
SEC. 2. All -employees of every kind and character of every em-
py! 'er are included in this Article II, except executives, those em-
ployed in a managerial or executive or supervisory capacity, or as
research technicians, who receive more than $35 per week, traveling
and outside salesmeTi, and outside service men, when expenses are
paid by the company; and watchmen, provided that such watchmen
are not employed in excess of 56 hours per week, or six days out of
SEC. 3. No employer shall knowingly permit any employee to
work for any time which, when totaled with that already performed
with another elrmployer or employer,, exceeds the maximum permitted
SEc. 4. The industry recognizes the desirability and accepts the
principle of the eight hour working day for labor and, insofar as
it reasonably can, the industry will endeavor to employ its labor on
that basis.

Sicr1ON 1. No employee of an employer shall be paid less than
forty (40) cents per hour, except as hereinafter provided.
Siwc. 2. This article establi.shes a minimum rate of pay which shall
apply, irrespective of whether an employee is actually compensated
on a time rate, piecework, or other basis.
SEC. 3. No employee engaged in office or clerical work and no
-al;arieil employees .-hall be paid less than at the rate of $15.00 per
wi-ek excepting office or messenger boys or girl, who shall be paid at
the rate of not less than SO' I of the above minimum salary. One
such ,iies.c-ngtr or office boy or girl may be employed in any office
regardless of the number of employees and additional such messenger
or police nboys or girls mavy e employed not to exceed one to each
twenty other office employees.
SEC. 4. Not later than ninety (90) days after the effective date of
this Code. each employer in the industry shall report to the. Admin-
istrator, through the Code Authority hereinafter provided for, the
actionn taken by such emlploiyer in adjusting the hourly wage rates for
J:l eimplovees- receiving more ilan the minimum rates provided in
Sections 1 and 3 of this Article III. Such adjustment shall not
reduce the hiwirly wage rate of any such employee.
SEC. 5(. A persTon wlhoe eParninl capacity is limited b1ecawne of age
or physical or mental handicap i,1y be employed on light work at
a wage below the miniminmin established by this Code if the employer
obtains fromi the State Authority designated by the United States
Depairtniint of Labor a certific-:ie autlhorizing his employment at
.siuh wages and for sIuch hours as shall be stated in the certificate.
Each enlmploye -hall file with tlie Code Authority a list of all such
pers, iI.s ciiilt,'y d 1 ,v him.


ARTICLE IV-GENERAL 1.uI;, ,: u-Pn1nI-i'ON.

SEC'TON 1. No person under sixteen (16) years of age shall be
employed in the Industry. No person under eighteen (18) ya;ir
of age shall be employCd at operations o o occiiii.tion, which are
hazardous in nature or dangerous to health. The Code Au thority
shall submit, to the Administrator within ninety (90) d:iys a li-t of
such operations or occupationl.
SEC. 2. In compliance with Section 7 (a) of the Act, it is providled
(a) Employees shall have the right to organize and bargain col-
lectively, through representatives of their own choosing, and .shall
be free from the interference, restraint, or coercion of emplo,,yer- of
labor, or their agents, in the designation of such representatives or
in self-organization or in other concertedl activities for the purpose
of collective bargaining or other mutual aid or protection.
(b) No employee and no one seeking employment shall be required
as a condition of employment, to join any company union or to re-
frain from joining, organizing, or naW-iting a labor organization of
his own choosing, and
(c) 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. 3. No employer shall reclassify employees or duties or occlupa-
tions for the purpose of defeating tle. purposes or provisions of the
Act or of this Code. or engage in any subterfuge for such purpose.
SEC. 4. No employer r employee shall contract his work to any
person except when such person is subject to the provisions of this
SEC. 5 Every employer shall make reasonable provision to the
extent required by existing law for the safety n.dl health of his em-
ployees at. the place and during-the hours of their c mploymeniet.
SEC. 6. Within each State this Code shall not.-sulpersede any laws of
such State imposing more stringent requirements on an emplloyer
regulating age of employee. wages, hours of work,orr health, fire, or
general working conditions than under this Code.
SEC. 7. Each employer shall post in conspicuous places Articles
II, III. and IV, the Labor Provisions of this Code.


SECTION 1. To further effectuate the policies of the National Indus-
trial Recovery Act, the 7 members of the Executive Committee of the
Association then in office are set up to cooperate with the Adminis-
trator of the National Industrial Recovery Act as the "Code Au-
thority to administer the provisions of this Code. If the Admin-
istrator hereafter shall find that the Code Authority is not truly
representative of the industry or does not in other respects comply
with the provisions of the Act, he may require an appropriate modi-
fication in the method of selecting the Code Authority. The Admin-
istrator may appoint from one to three representatives without vote
to serve on the Code Authority whose terms of office shall be so ar-
ranged that the services of not more than one expires in any one year.


These appointees shall be persons not having or representing inter-
ests selfish or antagonistic to the interest of members of the Alloy
Casting Industry. Absence of such representatives from any meet-
ing of this Committee shall not prevent its complete functioning.,
SEC. 2. Members of the industry shall be entitled to share the
benefits of the activities of the Code Authority by assenting to and
complying with the requirements of this Code and sustaining their
reasonable share of the expenses of its administration. Such rea-
sonable 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.
SEC. 3. The manufacturers engaged in the industry will furnish
such information and make such reports to the Code Authority as
may be necessary in order to enable the Code Authority to collect
and furnish to the Government the information required under the
terms of the National Industrial Recovery Act. In addition to in-
formation required to be submitted to the Code Authority, there
shall be furnished to Government, agencies such statistical informa-
tion as the Administrator may deem necc--ary for the purpose re-
cited in Section 3 (a) of the National Industrial Recovery Act. The
manufacturers shall keep their accounts in such form as may be
necessary to enable them to furnish information desired by the
SEC. 4. Members of the Industry having a common interest and
common problems may group themselves for administrative pur-
poses in various subdivisions or product classifications, subject to
the approval of the Code Authority. The majority of members in
each subdivision or product classification may appoint its agency,
with supervisory and/or administrative powers, subject to the Code
Authority. In the event that no such agency is so appointed, then
the Code Authority may appoint such agency. If formal complaint
is made to the Code Authority that the provisions of this Code have
been violated by any member or members of the Industry, the agency
for the subdivision or product classification to which the complaint
refers, shall institute such inquiry as may be necessary to develop
the facts and shall report the results of such inquiry to the Code
Authority. "
SEC. 5. The Code Authority may act by or through any committee
or representative or representatives to which or to whom it may from
time to time delegate authority. Except as otherwise provided in the
National Industrial Recovery Act, all statistics, data, and informa-
tion filed or obtained in accordance with any of the provisions of
this Code shall be confidential. The statistics data, and information
of one manufacturer engaged in the Industry shall not be revealed
to any other manufacturer engaged in the Industry except that for
the purpose of enforcing or administering the provisions of this
Code, the Code Authority by its duly authorized representatives
(who shall not be connected with or in the employ of any manu-
facturer engaged in the Industry affected by this Code) shall have
access to any and all st:tittics, data, and information that may be
x See pair. 2 of urdr approving this Code.


furnished or obtained in accordance with any of the provi-io,_ns of
this Code.
SEC. 6. The Jurisdiction of this Code and of the Code Authority
over any manufacturer engaged in the Industry is expressly limited
to that portion of the business and employment of sinuh mniiiufactu.irer
which is within the Industry.
SEC Any alleged violation of the provisions of this Code shall
be investigated by an unbiased authorized representative or repre-
sentatives of the Code Authority as provided for in Article V, Section
5, and members of the Industry shall facilitate such investigations
by opening their pertinent correspondence, books and accounts for
examination and by furnishing relevant information. Upon the
disclosure of any violation of any provision of this Code, the Code
Authority shall present evidence thereof to the Administrator.
SEC. 8. Recognizing that violation of any provision of this Code
will disrupt the normal course of fair competition in the Industry
and cause serious damage and that it will be impossible fairly to
assess the amount of such damage, each member of the association
who shall violate any such provision shall pay to the association, in
trust as and for liquidated damages, a sum equal to '.5, of the
invoice value of any alloy casting sold in violation of any such pro-
vision, such funds to be applied to the administration of this Code.
The Code Authority by the affirmative vote of two-thirds may waive
any liability for such liquidated damages as may be imposed by or
pursuant to this provision of this Code, if in its discretion it so
decides that such violation was innocently made and that the collec-
tion of such damages is not necessary in order to effectuate the policy
of Title I of the National Industrial Recovery Act.
SEC. 9. The Code Authority shall make a careful study of the
question of limitation of alloy melting capacity and shall submit
to the Administrator for his approval such plan or plani- as are
deemed necessary and which will further effe'.tiiate the policies of the
National Industrial Recovery Act.
SEC. 10. If the Administrator shall determine that. any action of a
Code Authority or any agency thereof is unfair or unjust or contrary
to the public interest, lhe Admini.trator may require that such action
be suspended for a period of not to exceed thirty days to afford an
opportunity for investigation of the merits of such action and further
consideration by such C(ode Authority or agency pending final action,
which shall be taken only upon approval by the Administrator.

1. For all purposes of the Code the acts de-cribed in this article
shall constitute unfair practices. Any nmenber of the industry who
shall directly, or indirectly through any ,ifficr, employee, agent. or
representative use, employ, or permit to be employed, any of/such
unfair practices shall be guilty of a violation of the Code.
(a) The use of other than actual shipping weights as a basis for
billing except for machined products specitically classified by the
Code Authority.
(b) Assuming transportation expense on pattern equipment either
to or from manufacturer's plant.


(c) Assumption of responsibility for machine work, labor charges,
or other expenses incurred by the customer on castings which are
rejected as defective.
(d) Assumption of any cost for inspection of castings by outside
individuals or agents when done at the request of the purchaser.
(e) The selling or advertising for sale. and/or marking of prod-
iicts with the intent to mislead or deceive a purchaser or prospective
purchaser regarding their quality, substance, or service features.
(f) The fictitious invoicing of products.
(g) Permitting a customer to make any deduction from the
invoice not, covered by the terms of sale.
(h) The shipping or other delivering of free goods of any kind
to any customer for resale or consumer's commercial use.
(i) Give, permit to be given, or directly offer to give, anything of
value for the purpose of influencing or rewarding the action of any
employee, agent, or representative of another in relation to the busi-
ness of the employer of such employee, the principal of such agent
or the represented party, without the knowledge of such employer,
principal, or party. Commercial bribery provisions shall not be
construed to prohibit free and general distribution of articles com-
monly used for advertising except so far as such articles are actually
used for commercial bribery as hereinabove defined.
(j) To purchase from customers any commodity at a price in
excess of the public hed prevailing open-market price for the com-
modity in question; to purchase scrap materials of another manu-
facturer from customers at a price in excess of the published
prevailing market price for such materials; to pay more for his own
scrap than 2< per pound premium over prevailing market prices.
This provision shall not be construed as abrogating any existing
contract whereby a manufacturer is obligated to take back scrap from
ca4tinis of his own manufacture at a fixed price.
(k) The giving of terms more favorable than net thirty days from
date of shipment. A discount of 1/ of 1%, may be allowed, provid-
ing payment is made within ten days from date of shipment.
(1) Absorb all or any part of the machining cost. of castings
sold as machined castings.
(m) The selling of products other than alloy castings at prices
below the prevailing market to influence a sale of alloy castings.

SECTION 1. Each member of the Industry manufacturing prod-
ucts falling within any subdivision or product classification, as de-
scribed in Article V, Section 4, shall, within ten (10) days after
notice of the establishment of any subdivision or product classifica-
tion, file with the agency for such snlllivision or product classifica-
tion a price list prepared by such member of the Industry, showing
his current pi ices and the agency shall immediately send copies
thereof to all inimbers of the Industry engaged in the manufacture
of sliuh sp''citied priod lIt. Revised price lists may be filed from time
to time therecafter with the agency by any such member of the In-
dustry to become cirrtiv'- upin the late specified therein but such
revised price list shall be filed witl tlic agency not less than eight


(8) nor more than ten (10) davs in advance of tiI effective d:ite.
Copies of such revised price lists with notice of the effective date
specified shall be immediately sent. to all ijimbl Ir of the Industry
manufacturing such product who thereuipon may file, if they so de-
sire, revisions of their price lists :p'cifyiin the effective Odit', which
may be on or after the date when the reviedl price list fir.-t filed
shall go into effect. No member of the Industry shall sell directly
or indirectly by any means whatsoever any product of the Indlii-try
at a price less than the price shown for .iurh product, in the list
filed by such member.2


SECTION 1. This Code, except as to provisions required by the Act,
may be modified and supplemented on the basis of experience or
changes in circumstances, such modifications and supplements to be
based upon application to the Administrator and such notice and
hearing as he shall specify, in compliance with Section 3 (a) of the
Act and to become effective on approval of the Admini istrator.
SEc. 2. The President of the United States may from time to time
cancel or modify any order, approval, license, rule, or regulhlation
issued under Title I of the National Indultrial Recovery A,-I.


No provision of this Code shall be so applied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or di-criim-
inate against small enterprises.


This Code shall be effective at 12:01 A.M. on the fifth calendar day
after its approval by the President of the United States, and shall
continue in effect until June 16, 1935, or the earliest date prior
thereto on which the President shall, by proclamation, or the Con-
gress shall, by Joint Resolution, declare that the emergency iecog-
nized by Section 1 of the National Industrial Recovery Act has
Approved Code No. 237.
Registry No. 1201-1-02.
2 See par. 2 of order approving this Code.

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