Proposed code of fair competition for the bolt, nut and rivet industry as submitted on August 24, 1933


Material Information

Proposed code of fair competition for the bolt, nut and rivet industry as submitted on August 24, 1933
Portion of title:
Bolt, nut, and rivet industry
Physical Description:
iv, 16 p. : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Bolts and nuts industry -- Law and legislation -- United States   ( lcsh )
Rivets and riveting -- Law and legislation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


General Note:
Cover title.
General Note:
"Registry No. 1104-01."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004931555
oclc - 63655139
System ID:

Full Text




The Code for the Bolt, Nut, and Rivet Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry


r spa~ele by the Superintendent of Documents, Wsashigton, D.C. - Price 5 eneRI



Registry No. 1104--1






/ :i iiii
I i/li iiii


'" :

Clevelan~d, Ohio, Au~gust 98, 1933.
President Ame ricanl In~stitulte of
Bolt, Net, and Rivret M~anufacturers,
Clevcland, Ohio.
Onas. R. tERGUssoN,
Chairman Code Corarmittee, Ametri4can Insti-
tutfe of Bolt, Nuzt, and~ Rivet Manu~zfacturers,
Pittsbu~rglh, Pae.
GENTLEMEN: Pursuant to a motion unanimously carried at the
meeting of the Bolt, Nut, and Rivet Industry called on August 24,
1933, by the American Institute of B~olt, N~u~t, and Rivet Manufac-
turers, you are hereby authorized to act for this Industry in pre-
.senting its Code of Fair Competition.
The resolution above referred to reads as follows:
"' It was regularly moved and seconded that the President and the
Chairman of the Code~ Committee be appointed as a committee to
present the Code to the National Recovery Administration with the
authority to take any other such persons with them as they may so
desire, and that further, this committee has authority to make such
changes as may be found necessary in order to effect. a Code with
the National Recovery A~dministration."!
Very truly yours,

Clevelanzd, Ohio, Augulst 8, 1933.
Wlash ington, D.C.
Srns: This letter of transmittal is accompanied by twelve (12)
copies of the Code, four (4) copies of the completed application form,
and four (4) copies of the Articles of Association and Bylaws of
the American Institute of Bolt, Nut, and Rivet M~anufacturers, a vol-
untary unincorporated association. The Institute, has no Constitu-
tion except as above stated.
The conditions in t~he Bolt, Nut, and Rivlet Industry have been
gravely depressed in the past three (3) years. Alll the members of
it, so far as we can ascertain, have been operating at a loss during
this period, but since June of this year business conditions have
improved in some degree, although at the present time orders for
products are tending to diminish.

During the whole period all t.he members of the Institute, without
any exception so far as we are aware, have endeavored to keep labor
employed to the greatest possible extent byv staggering terms of
employment, adopting all expediency possible to retain the respec-
tive organizations, and to provide for the support of employees.
Owing to the intense competition many improper methods have
crept into the business which the enclosed Code attempts in a meas-
ure to correct.
The Code is therefore submitted for the consideration of the
Very truly yours,



Wherever used in this Code the terms hereinafter employed in this
Article shall, unless the context shall otherwise clearly indicate,
have the respective meanings as hereinafter in this Article set forth.
SECTION 1. The term the Industry means and includes the
business of manufacturing in t~he United States bolts, nuts, and/or
rivets fabricated from ferrIous metals.
SEc. 2. The term "L member of the Industry means and includes
any person, firm, association, or corporation operating a plant,
plants, or equipment in the United States for the manufacture of
bolts, nuts, and/or rivets, including any manufacturer of such prod-
ucts, whether for its own use or for sale.
SEC. 3. The term "L member of the Code means any member of
the Industry who shall have become a member of the Code, as here-
inafter in article III provided.
SEc. 4. The term the Institute means the American Institute
of Bolt, Nut, and Rivet Manufacturers, a voluntary unincorporated
associ ati on .
SEc. 5. The term Executive Committee means the Executive
Committee of the Institute as from time to time constituted.
SEC. 6. The term "' base price of any product means the price for
such product f.o.b. a basing point before any extras in respect of
such product shall be added.
SEO. 7. The term gross or list price means the price of such
products, subject to trade discounts, f.O.b. a basing point before any
extras in respect of stich product shall be added.


SECTION 1. The Code is adopted pursuant to Title I of the Na-
tional Industrial Recovery Act a.nd submitted for the approval of
the President under Section 3-a thereof.
SEc. 2. The purpose of the Code is to effectuate the. policy of
Title I of the National Industrial Recov~e~ry Act insofar as it is
applicable to the Industry.

SECTION 1. It is of t~he essence of the Code that all members of the
Industry who shall comply with the provisions of the Code shall be
entitled to participate in its benefits upon the terms and conditions
set forth in the Code.
8977---33 y

SEc. 2. Any member of the Industry is eligible for membership
in the Code.
SEc. 3. Any member of the Industry desiring to become a member
of the Code may do so by signing and delivering to the Executive
Committee a letter substantially mn the form set forth in Schedule
A hereto annexed.
SEc. 4. Any member of the Industry may participate in any
endeavors of the Institute, in the preparation of any revisions of,
or additions or supplements to, this Code, by accepting the proper
pro rata share of the cost and responsibility of creating and admin-
istering the Institute, either by becoming 8, member of t~he Institute
or by paying to it an amount equal to the dues from time to time
provided to be paid by a member in like situation of the Institute.

SECTION 1. Pursuant to subsection (a) of Section 7 of the National
Industrial Recovery Act, and so long as the Code shall be in effect,
the Code shall be subject to the following conditions:
(1) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free fromt the interference, restraint, or coercion of employers
of labor, or their agents, in th-e designation of such representatives
or in self-organization, or in other concerted activities for the pur-
pose of collective bargaining or other mutual aid or protection;
(2) That no employee and no one seeking employment shall be
required as a condition of employment to jomn any company union
or tor refrmn from ;nommgr orrgan;izmg, or assistmng a labor orgami-
zation of his own choosing; and
(3) That employers shall comply with the maximum hours of
labor, minimum rates of pa.y, and other conditions of employment
approved or prescribed by the President.
SEc. 2. On and after the effective date of this Code (meaning
thereby ten days after the date on which this Code shall have been
approved by the President, pursuant to the National Industrial
Recovery Act), no member of the Code shall cause or permit any
employee, except executives, those employed in supervisory capacities
and in technical work and their respective staffs, salesmen, and
those employed in emergency work, insofar as practicable and so
long as employees qualified for the work shall be available in the
respective localities where such work shall be required, and having
dlue regard for the varying demands for the consuming and proc-
essinga industries for the product, to work at an average in excess
of forty 40) hours per week in any six (6) months' period or to
work for ore than forty-eight (48) hours or more than six (6)
days in any one week.
SEc. 3. On and after the said effective date, the minimum wage
that shall be paid by members of the Code to any employee engaged
in producing the products of the industry and mn labor operations
directly incident thereto, shall be that shown in Schedule B attached
hereto, unless the rate per hour for the same. class of labor was on
July 15, 1929, less than as shown in Schedule B, in which case the

rate per hour paid shall be not less than the rate'per hour paid on
Juzly Itii 1929, but in no event shall the rate per hour be less than
t~wenty-five cents- (25e) per hour, and provided also that learners
me9y be paid not less than eightyV (80) percent of the minimum rate
paddetermined in the manner above provided, but the number of
learners receiving less than said minimum rate so determined shall
not exceed fiv (5) percent of the total number of employees en-
g~aged. in producing the said product and in labor operations directly
mncident' thereto.
SEc. 4. On and after the said effective date, the minimum wage
that shall be paid by members of the Code to employees engaged in
office work, except commission salesmen, shall be not less than four-
teen dollars ($14.00) per week, provided that offce boys or girls may
be paid not less than eighty (80) percent of such minimum wage,
but the number of said office boys or girls paid at the rate of less than
fourteen dollars ($14.00) per week shall not exceed five (5) percent
of the total number of employees covered by the provisions of this
SEc. 5. N~one of the members of the Code shall employ in or about
its plants in the Industry any person under sixteen years of age.
SECTION 1. The administration of the Code shall be under the di-
rection of the Executive Committee of the Institute.
SEc. 2. The Executive Committee shall have! all the powers and
duties conferred upon it by the Code and generally all such other
powers and duties as shall be necessary to or proper to enable it
fully to admlinister t~he Code and to effectuate its purpose.
The Executive Committee shall have, but not by way of limita-
tion, the following additional powers and duties, to wit:
(a) To enforce the provisions of the Code and through agents or
otherwise to hear and adjust complaints thereunder.
(b) To consider proposals for amendments and make recom-
mendations thereon to the President.
(c) To approve of recommendations for exceptions to the provi-
sions of the Code.
(d) To collect at such times and in such manner as in its discre-
tion may be deemed advisable statistics of plant capacity, volume
of production, volume of sales in units and dollars, shipments, orders
received, unfilled orders, stocks on hand, inventories, both raw and
finished, number of persons employed, wage rates, earnings of em-
ployees engaged in processing operations, hours of work, and such
other data or information as may be desired in order to determine
whether the Industry is taking appropriate steps to effectuate in
all respects the policy of the National Industrial Recovery Act.
To delegate to the proper officers of the Institute the collection of
such statistical and other data as may in its discretion be reasonably
necessary; provided, however, that such statistical and other data be
compiled in composite form and in such manner as not to be preju-
di~icial, to the interests of any individual member.
(e) From time to time to appoint such committees as it shall
deem necessary or proper ,in order to effectuatte the purpose of the

Code and in its discretion to delegate to any such C~ommittee gen-
erallyv or in particular instances such of the powers and dutiesorf
the Executive Comlmittee under the Code as such Exrecutive Com-
mittee shall deemz necessary or proper in order to effectuate such
pu rpose.
(f) From time to time to appoint and remove, and fix the com-
pensation of, all employees, accountants, attorneys, and experts as
such Executive Committee shall deem necessary or proper: for the
purpose of administering the Code.
(g) To call meetings of the members of the Code at any time on
not less than three days' notice, stating the time and place of such
mleeting~s and the purposes thereof.
SEc. 3. Any or all information furnished to the Executive Com-
mitt~ee by any member of the Code shall be subject to checking for
the purpose of verification by an examination of the books and
accounts and records of such mlember by any accountant or account-
ants or other person or persons designated by the Executive Comlmit-
tee and shall be so checked for such purpose, if the Executive Com-
mittee hall require it. The cost. of each such examination shall be
treatedl as an exlpense of admlinistering the Code; provided, however,
that, if upon such examination any such informaition shall be shown
to hlave been w~ilfullyr misrepresented? suc~h cost shall be paid by the
member of the Code who furnished such information.
SEC. 4. (a) Thle expenses of administering the Code shall be borne
by' the members thereof. The Executive Committee from time to
t~ime may make such assessments on account of such expenses against
the members of the Clode as it shall deem proper, anld such assessments
shall be payable as such Executive Committee shall specify. Such
expenses assessed against. each member of the Code shall bear the
samie relation- to the total thereof as t~he total value of shipments of
prodlu.ts in dollars made by such member bears to the shipment of
products in dollars made by all the members. Failure of any mem-
ber of the Code to pay t~he amount. of any assessment against such
member for a period of thirty dlays after t.he date on which it became
payable (unless such period is ect~ended by the Executive Committee)
shall constitute a violation of the Code.
(b) The Executive Committee fromt time to time shall submit to
t.he members of t~he Code in meeting assembled for approval a
detailed budget of proposed expenditures and no commiltments or
exupendlitur~es shall be mnade in excess of' such approved budget.
Sj~c. 5. Failure of any member of thle Code promptly to furnish
to the Executive Committee information required by the Executive
Committee and substantially in the form prescribed by it shall
constitute a violation of the ICode.
SEC. 0). Surv1"ey of Equijpmenlt.-- An engineering survey may be
made of the entire industry under the direction of the Executive
Commiittee with the view of ascertaining the existing production
equipment of each member of the industry whether such member
produces material for sale or for its own consumption or both.
It is thle consensus of opinion of the Industry that until such time
as the demand for its products cannot be adequately met by the
fullest practicable use coexisting equipment, such capacities shall
not be increased or new plants constructed. This provision, how-

ever, shall not be construed to prevent the replacement of old or
obsolete equipment, which replacements are hereby authorized,
providing that such replacements do not increase present capacities.
Any member of the Code as prerequisite to the making of such
replacements of old or obsolete equipment shall file with the Execu-
tive Committee a notice of its intention so to do, furnish complete
data in respect thereof, and obtain t~he approval of the Exrecutive
Committee therefore.
SEC. 7. The members of the Code recognize that questions of pub-
lic interest are or may be involved in its administration. Accord-
ingl~y, representatives of the Administration consisting of the
Administrator and one or two other persons appointed by hiun (who
shall be persons not having or representingr interests antagonistic
to the interests of members of the Industry) shall be given full
opportunity at such times as shall be reasonably convenient to dis-
cuss with the Executive Committee or any committees thereof any
matters relating to the administration of the Clode and to attend
meetings of the said Commiittee at which action on any such matters
shall be undertaken and to make recommendations as to methods
or measures of administering the Code. Due notice of all such
meetings of the Executive Commnittee shall be given to such repre-
sentatives of the Administration. The records of the Executive
Commi~,ttee andl the InstitulteP rIlati;ng in any way to the administ.r~a-
tion of the Code shall be open to such representatives at. all reasonl-
able times. They shall be afforded complete access at all times to
all records, statistical material, or other information furnished or
readily available to the Executive Comimittee in connection with,
or for the purpose. of, the administration of the C:ode. The Execu-
tive Committee, acting di~rrct~ly or through one or mnore committees
appointed by it, shall give due consideration to all requests, sug-
gestions, or recommendations made by suchi representatives of the
Administration and render every possible assistance to such repre-
sentatives in obtaininga full information concerning the operation
and administration of t~he Code, to the end that the President may
be fully advised regarding such ope~a tion and administration
through reports that may be made to him from time to time by
such representatives, and to the end that the President mlay be as-
sured that the Code and the administration thereof do not promote
or permit monopolies or monopolistic practices, or chiminate or
oppress small enterprises, or operate to discriminate against. them
and do provide adequate protection of consumers, competitors,
employees, and others concerned and that they ar~e in furtherance of
the public interest and operate to effectuate the purposes of Title I
of t~he National Industrial Recovery Act.

SEcTroN 1. Basis of quotations aLnd B'a.les.- (a) Members of the
Code shall establish a trade practice of issuing quotations and in-
voices on the basis of percentage discounts from the standard gross
or list prices on varying classes and sizes of bolts, nuts andl rivets,
to be known as Manufacturers' Standard Bolt, Nut and Rivet
Lists ", and hereinafter referred to as the Gross Lists, which lists

shall be prepared after an engineering study, and a scientific analysis
of costs. So-called net prices shall not be used in quoting, selling,
or invoicing any items covered by gross lists.
(b) WYhat is commonly kinow~n in the trade as heavy rivets, viz,
rivets 4..&" dliameter and larger, shall be sold at a base price per.
pound, subject. to published standard extras, which extras shall be
prepared after an engiineering study and a scientific analysis of
(c') W'lhat is commlonly known in t.he trade as large track- bolts,
viz, track bolts 3N" dliameter andc larger, heat treated, shall be sold
at a base price per pound subject to published standard extras,
whichi extr~as sal~l be prepared after anl engineering study and a
scientific anals~is of costs.
(d) The Executbive Committee may revise the Gross Lists and
Extra Lists from time to time as changes in manufacturing and
other condlitionis may warrant, as disclosed by further engineering~
study andi~ scientific analysis of costs, and sales by members shall
thereafter be basedl on tihe latest reised lists in the manner in this
Article hereinabove specified; provided, however, that any such
revisions~ shall hav-e h~ad the prior approval of a maijor~ity of votes~
of t~he members of the Code affected by such revisions.
(Ce) Non1e of the foregoing shall apply to the quotation or sale
of any miiscellaineous items (other than listed bolts, nuts, and rivets),
such~ as. for example, pipe bandcs, silo rods, foundation rods, both
sctraighlt and upset, dock rods, andi all bolts,' nuts, and rivets larger
than listed sizes. The Executive Comnmittee shall divide these items
into proper classifientions, anid members shall file their costs with
the desiginat~ed officer of the Institute, on each classification. A
statement of these costs shall b~e furnished each member filing
samle, and all1 sales shall be based onl c~ost. Any accessories, speci-
fele inl conjunction with the above items, shall be sold at not less
than the malnlufacturing or pur~chasing cost.
SEC. 2". .Special Pr'ocessin5g, PackXing. Ete.--On items for which
schIedulles cover~ing extra charges for special processing and packing
are, included in the G~ross Lists, no miember shall in any case waive,
in all or. in par~t. the chrglingll of sulch extras; nor shall any miem-
ber sell, or offer for sale, any product others than items covered in
the Gross Lists,, andr known~ as specials," at. a price less than would
be obtaiiedl by ap~ply'ing~ his current miaximium discount to the near-
est size andr dliamieter as shiow\ n on th~e G~rous Lists; nor shall any
miemb~er sell, or offer for sale, any "' special itemi or product at a
price which fails to take into consideration the added cost over and
above th~e co~st of the neanrest size andl diamneter shown on the Gross
S~c. 3. Havsing; Fo'ints .-MJembrl ers of thle Code shall establish the
trade p~racti~e cof busing qulotations and sales of bolts, nuts, and rivets
at various points which constitute centers of steel production, which
vai~rius poinits shall be Birmiingham, Chicago, Cleveland, and Pitts-
burgh, r~egardless of the actuial point of manufacturers~ or shipment.
T'he price char~ged to the buyer shall be the mlembers' current price
f~o~b. thle nearetst basing point to dlest~ination, pIlus t~he regular rail-
roadc t arIi ff ra te of freight, either ea rlondl or less-t han-carloadl de-
pend~ing~ on the shipment ir~respective of actual means of transporta-
tioni, except on shipmlentss to Pacific Coast. points where the rail and

water rate from Birmingham to point of destination shall be added.
This shall not apply to sales or shipments made to common carriers
which come under the supervision of the Interstate Commerce Com-
mission, of material for their own consumption. On sales and ship-
ments made to common carriers as above described, t~he amount of
freight to be added from basing points shall be determined by the
Executive Committee, and shall be calculated on what is commonly
known as line-haul costs.
No niember shall equalize freight. charges based on what is comn-
monly known in the trade and under the Interstate Comimer~ce Act.
as Fabrication in Transit rates.
SEC. 4. FiliNlg Of Price and Discount S~ch~edurles.--Each member of
the Code shall within t~en (10) days after the effective date of the
Code file with the officer designated by the Executive Commit~tee
a statement of his maximum discounts and miinimum base prices on
each class of standard product, and from and after the expiration
lof such ten (10) days, such member shall at all times maintain on
file with the officer such a statement and shanll not manke any change
in his prices except. as herein provided. Eachl such statement shall
state the: date upon which it shall become effective which shall not
be less than ten (10) d~ays after the dante of filing, provided, howT-
ever, that. the first statement filed by any member of the Cod-e shall
take effect on the date of filing thereof.
None of th~e maximum discounts or minimum base prices shown in
anyv statement filed by any member of the Code as herein provided
shall be changed except by the filing of such member with the officer
of a. new statement. which shall become effective on the effective date
therein specified, which shall not be lezss than ten (10) dlays after
the: date on which such new statement of discounts and base prices
shall have been so filed.
Copies of the originals as well as the revised statements with
notice of the effective date specified shall iimedliately be sent, to
all known~ manufacturers of such product who thereupon m~ay file,
if they so dlesi re revisions of their state me!nts which shall
become effective upon the date when t~he statement first filed shall go
into effect.
Any member quotingr or selling below his filed price during the
time that such price is effective shall be considered as having violated
the Code.
Obsolete, damaged, rusty, shopworn, or excess material may be dis-
posed of in a special mannner, prior approval so to do hav-ing first
been secured fromt the Executive Comnmittee.
SEC. 5j. (ar) Unl~form). Cost A ccountin'lg.--Im ditel upon the
adoption of this Code, the Executive Committee shall tauke steps to
provide a uniform method of cost accounting for the Industry,
through such channels: as may be designated by t~he said Committee.
(b) Pr~ice~s Belowc Cost.-N~o member of the Code shall sell or offer
its product for sale, or file withl the designated officer of the Insti-
tulte any nprCie or priPcs which fail to equanl its own ncs of pmroducing
each individual itemi which shall be subject to review by Executbive
Committee. But nothing herein contained shall be deemed to r'e-
quire any such member to sell his product above the published or
established selling price of a.ny other member. Pendlingi the adop-

t.ion of a uniform cost-accounting system, cost is defined as meaning
th~e suml of all items ordinarily included in computation of costs,
including raw material, wages, salaries, executive and sein
expense. depreciation and general overhead, reserves, taxes n
(c) Exrecurtiv~e Commlzitte~e to In~vestigate Costs.--Should any mem-
ber of the Code file a selling price with the designated of~cer of the
Institute, based onl a cost which appears to be at considerable
variance from the costs of other members, the Executive Committee
may institute an investigation and determine whether or not such
costs have been properly computed. If such costs are found to be
in error, such member shall immediately file revised selling prices.
A notice of all decisions of the Executive Clommittee under this See-
tion 5, together with the reasons therefore, shall be filed with the
SEc. 6. Brokenl. ConLtainer quantities.--No member of the Code
shall dev'iate from the recognized differential for shipment of broken
container quantities, as may be provided in the Gross Lists, regard-
less of the total size of the order or shipmentt.
SEC. 7. C'Ofl.t lUCtJ.--Members of the Code sh all not contract for
the sale of bolts. nuts, andi rivets for longer than calendar quarterly
periods or at a price which is lower than that so filed by such mem-
ber~ for t.he first monthly of said period. All contracts shall be for
speciftied mnaximumi quantities, and without option of extension or
renewal on the part of either buyer or seller. All shipments on con-
tracts shall be ma~de within fifteen days after expiration date, or as
soon thereafter as seller can manufacture and ship the same. No
quarterly contract shall be made more than thirty (30) days prior
to the beginning of the calendar quarter and shall be at the price
effective at. the time of the making of the contract.
SEC. 8. Te~rm&s Of Pay~nwnlt.--In the case of products shipped from
plants located on or east of the Mlississippi and Mlissouri Rivers to
Pacific Coast Ports and which shall be invoiced from such plants--
1/2 of 1%~ shall be deducted if the invoice of such products shall be
paid within 25 days from tlhe date of such invoice. In all other
cases--1/2 of 1%0 shall be deducted if the invoice of such products
shall be paid within 10 days from the date of such invoice; Iprovided,
howevert, in the latter case, that anly member of the Code may allow
such discount. of 1% of 1% on the basis of settlements two tunes in
each month, as follows:
(1) On invoices for products dated fromt the 1st to the 15th,
inclusive, in any month, such discount may be alloweed on payment
of such invoices' on or before the 25th of such month;
(2) On invoices for products dated from the 16th to the 31st,
inclusive, in any month, such discount may be allowed on payment
of such invoices on or before the 10th of the following month.
Any discount allowed in accordance wit.h the provisions of this
Schedule shall apply only to the invoices~ value of the products
specified t.herein and not to anyr part of the transportation charges
on such products.
In the case of products shipped from plants located on or east
of the Mississippi and Missouri Rivers to Pacific Coast Ports and
which shall be invoiced from such plant -the free time shall be
45 days; in all other cases--30 days.

Sec. 9. The maximum periods of free credit which may be allowed
by any member of the Code shall be the periods herein specified,
unless and until suchl periods shall be changed by t~he Executive
Committee. Except as aforesaid, all invoices for products sold by
any member of the Code after the effective date of the Code shall
hear interest at 6%J from and after the. expiration of t~he period of
friee credit. Nothing in the Code contained shall prevent any mem-
ber of the Code from allowing credit to any purchaser or allowing
any purchaser to delay payment in respect of any invoice for a
longer period than the maximum period of free credit herein above
spi~ecified; but, if any member of the Code shall allow credit to any
purchaser or allow any purchaser to delay payment in respect of
any invoice for a period longer than such me ximum period of free
creditt, then such member shall charge and collect. interest at 6%~
on t~he amount in respect of which credit shall be so allowed or the
payment of which shall have been so delayed.
The term period of free credit means t.he period of time be-
tween the date of a shipment of a product to the purchaser of such
product and the date from and after which such purchaser shall be
required to pay interest on the purchase price of such product or
any part thereof which shall not have been paid prior to the
-exp~iration of such period.
SjEC. 10. Nothing in the Code contained, however, shall be so
.construed as to prevent the performance by any member of the
Code of a valid, firm contract existing and2 to which it is a party
at the effective date of the Code for a definite quantityv of anyr prod-
act or for all or a substantial part of the requirements of the pur-
chaser thereof (a) at a fixed price, or (b) at a price that can be
diefnitely determined in accordance with the provisions of such con-
tract, or (c) at the market price for such product at the date when
a definite quantity thereof shall be specified under such contract.
If any member of the Code shall at the effective date thereof be a
party to any contract for the sale of any product by such member
which, by its terms, is to continue after December 31, 1933, a~nd by
its terms the price to be paid for such product by the other party
to such contract is related to the market price thereof at the date
when a definite quantity thereof may be specified under such con-
:tract and mayI be less than such market price, then such member
shall within thirty days after the effective date of the Code file a
copy of such contract with the Exectuive Committee in order that
the said Committee may consider it and take such action in respect
thereof consistent with the rights and obligations of the parties to
s~uch contract as such Committee shall deem proper.
SEc. 11. G6a~ranlteed Prices.--Members shall not sell or offer for
.sale, any product of the Industry, under any form of guarantee
against decline in price.
S Ec. 12. Solicitatio n of Busrin~ess--Recognieition of Prope r F~unc~tionz
~of Jobbers.--The Industry, in accordance with the above plan of oper-
ation, declares its minimum filed prices to be applicable to wholesale
jobbinga and wholesale consumling trade, and the Executive Commit-
tee may prescribe such rules and regulations as it shall deem proper
by which the question of whether or not any purchaser or prospective
purchaser of any product for resale is a jobber or wholesale con-
sumer shall be determined.

Brokers, commission agents, and dealers in used or distress stock
of materials shall not in any case be considered a jobber or a whlole-
sale consumer.
All common carriers coming under the supervision of the Inter-i
state Comm'erce Commlission shall be considered wholesale con-
SEc. 13. Nothing herein contained shall be deemed to prevent maem-
bers of the Code from selling materials to other members of the
Code for resale at prices approved by the Executive Committee.
SEc. 14. Nothing in the Code contained shall be deemed to apply
to or affect the sale of any product for direct shipment in export
trade by any mnemlber of the Code within the meaning of the terml
" export trade as it is used in the Export Trade Act or, unless, and
to the extent. that the Executive Committee shall otherwise deter-
mine, the sale of any product by any such member for direct ship-
ment to the Philippines, Hawaii, or Puerto Rico, or other insular
possessions of t.he United States of America.

SEOTION 1. For all purposes of the Code, the acts hereinafter de-
scribed shall constitute unfair practices.
(1) The payment to manufacturers' agents ", as the same are
known in the industry, of commissions in excess of five percent in-
cluding office, traveling, and all other expenses. The selling of
products to a manufacturer's agent is prohibited.
(2) The continuance by a member of the Code in its or his eml-
ployment of any manufacturer's agent who shall split or divide his
commission with the buyer or the agent of the buyer.
(3) The appointment by a member of the Code of a jobber or
dealer of any character as his agent on any basis.
(4) Shipments of products by any mlember of the Code on a
consigned basis, which is hereby defined to be a shipment boy the-
member of products, to b~e paid for by the consignee as sold, or
shipments on any other basis than that provided in this Code.
(5) Any member inducing or attempting to induce the sale of
the products of this Industry by means of an offer to sell any other
article which such member might manufacture or resell at less than
regular market prices for such product.
(6) No member of the Clode shall permit. the return by any pur-
chaser of any product covered herein delivered in compliance with
any contract nor shall atny such member purchase or repurchase such
products after the delivery thereof by whomsoever delivered to such
(7) Inducinng or attempting to induce by any means any party
to a contract with a, member of the Code to violate such contract.
(8) The solicitation or acceptance of orders for pooled shipments
of any character, whether in carload lots or less, regardless of the
method of invoicing proposed, when it is known or ascertainable
byv t.he member that the material so ordered is for more than on~e
(9) Sales by any member under any form of group purchasing.
(10) The deviation from the established standards of size and
quality, unless the buyer is fully informed of such deviation.

I?(1)I Thte sale of products not plainly and correctly described
and; n~ot. in.fuill compliance with trade requirements and definitions.
(12) .) The failure to specify in every. quotation ~for sale of the
prices and terms and all the conditions surrounding such quotations
for sale.
(13) Cancelling in whole or in .part, or permitting the cancel-
lation in whole or mn part, of any contract of sale for anly product
except for a fair consideration, or paying or allowing to any pur-
chaser in connection with the sale of any product any bonus, rebate,
cosunission, credit, discount, adjustments. or similar concession or
subsidy other thari is permitted by the 'Code and specified in the
contract of sale or included in the price paid or bid.
(14) Stating in the invoice of any product as the date thereof
a date other than .thne date of the shipment of such product or the
inclusion in any invoice of any product shipped on any other date
than ithe date of such invoice.
(15) Making or promising to any purchaser or prospective pur-
chaser of any product, or to any officer, employee, agent, or repre-
sentative of any such purchaser or prospective purchaser, any bribe,
gratuity, gift, or other payment or remuneration, directly or
(16) Procuring, otherwise than with the consent of any member
of the Code, any information concerning the business: of suchl mem-
ber which is properly regarded by it. as a trade secret or confidential
within its organization, other than information relating to a viola-
tion of any provision of the Code.
(17) Imitating or simulating any design, style, mark, or brand
used by any other member of the Ciode.
(18) Disseminating, publishing, or circulating any false or mis-
leading information relative to any product or price f~or any product
of any member of the Code, or the credit standing or ability of any!
member thereof to perform any work or manufacture or produce
anly product, or to the conditions of employment among the em-
ployees of any member thereof.
(19) Aiding or abetting any persPon, firm, association, or corpora-
tion in any unfair practice.
.(20) The. inclusion of any product with other shipments, thereby
obtaining lower cost of transportation than is herein provided.
.(21) Any violation of any other provision of the Code, whether
or not therein expressed to be such, or using, or employing any
practice not hereinabove described, which t.he Executive
shall have declared to be a practice that would tend to defeat thle
policy of Title I of the National Induusriazl Recovery Act and2 there-
fore a~n unfair practice, and of which determination by such Execu-
tive Committee notice shall have! given to the members of the Code
and to the President of the United Stat~es.
Such unfair practices and all other practices which shall be
declared to be unfair by the Executive Commlittee, as providled in
subdivision (21) herein or by any amendment to the C~ode adopted,
sashereinafter in Article IX provided, and at thle time in .effect,
slhll be deemed to be unfair methods of competition mn commerce
within the meaning of the statutes in such cases made. and provided,
and the using or employing of any of them shall be deemed to be a

violation of the Code and any member of the Industry which shall
directly or indirectly through any officer, employee, agent or repre-
sentative knowingly use or employ any of such unfair practices shall
be guilty of a violation of the Code.

SECTION 1. The members of the Code recognize that pursuant to
subsection (b) of Section 10 of the National Industrial Recovery
Act, the President may from time to time cancel or modify any order,
approval, license, rule, or regulation issued under Title I of saint
Sj~c. 2. Any notice, demand, or request required or permitted
to be given to or made upon any member of the Code shall be s~ufhi-
clently given if mailed postage prepaid, addressed to such member
at the address of such member on file with the Executive Committee.
A waiver in writing, signed by any member of the Code, of any
such notice, demand, or request, and delivered to the Executive Conr-
mlt~tee shall be deemed to be the equivalent of a notice, demand, or
request duly given or made, whether or not such waiver was signed
and delivered before the t~imne when such notice, demand, or request
was required or permitted to be given or made.
SEC. 8. NOthing herein contained shall be deemed to constitute the
members of the Code partners for a~ny purpose, and no officer, com-
mittee, or employee appointed under the Code shall be liable for any
act or omission to act under the Code except for his malfeasance or
SEO. 4. At a meeting of the members of the Code, each member
thereof shall have as many votes as shall equal the quotient obtained
by dividing by one hundred thousand the aggregate amount in dol-
lars of the invoice value of the products delivered by such member
for consumption within the Unitedl States during the preceding cal-
endar year. Fractions in such quotient shall be disregarded; pro-
vided. however, that each member of the Code shall have at least
one vote.
SEc. 5. As soon as members of the Industry which would, if then
members of the Code, have the right to at least 662/3%0 Of all the
votes that migrht be cast at a meeting of the members of the Code, if
all members of the Industry were then members of the Code and
present at such meeting, shall sign and deliver to the Executive Com-
mittee letters substantially in the form set forth in Scheduls "A"'
annexed hereto, the Executive Committee shall submit the Code to
the President for approval pursuant to the provisions of the National
Industrial Recovery Act, and upon the approval of the Code by the
President pursuant to the provisions thereof, it shall constitute a
binding contract byr and among the members of the Code and the
provisions thereof, shall be the standards of fair competition for the
Industry, subject to the amendment or termination thereof, as in
Article IX herein provided.
SEc. 6. To the extent required or permit~tedl by or under the provi-
sions of Title! I: of the National Industrial Recovery Act, the provi-
sions of the Code shall apply to and be binding upon every member
of the Industry, whether or not such member shall be a member of

the Code. To the extent that it shall be necessary or proper in order
to effectuate the purpose of the Code, t~he term member of the
Code wherever used in the Code shall be deemed to mean a member
of the Industry, but no member of the Industry which shall not also
be a member of the Code in good standing shall be entitled to vote
at any meeting of members of the Code or to any other right, power,
or privilege provided in the Code for the members thereof.
SEO.7l. The Executive Committee shall have power from time to
time to interpret and construe the provisions of the Code, including,
but~ without, anyr limitation uponn the foregoing, the power to deter-
mine what are products within the meaning of that term as it is
used in the Code. Any interpretation or construction placed upon
the Code by the Executive Committee shall be final and conclusive
upon all members of the Code. However, no provisions of this Code
shall be interpreted or applied in such manner as to (a) promote
monopolies; (hb) permit. or encoulrage unfair competition; (ct) elimi-
nate or oppress small enterprises; (d) discriminate against small
enterprises; or (e) impose inequitable restrictions on admission to
membership therein; it being the intent hereo~f that such membership
shall be truly representative of the industry.
ARrxcu;E IX

SECTION 1. This Code may be amended at any time by an amend-
ment proposed by the Executive Committee by vote of the majority
of the members thereof and submitted to a of the mem-
bers which shall be called for such purpose upon notice given as in
the subdivision (g) of Section 2 of Article V herein provided. If
a~t. such meetings members of t~he Codel having the right to cast at
least 75% of all the votes that might be cast, at such meeting if all the
members of the Code were present threat shall vote in favor of
the adoption of such amendment, such amendment shall be sub-
mnitted by the Executive Committee to the President. for approval,
provided approval by him shall then be required by law, and upon
approval of such amendment the same shall take effect, as a part
of the Code.
SEC. 2. This Code shall continue in effect for a period of ninlety
days from its effective date and thereafter until termlinated. I
mayv be terminated at any time after the expiration of such period
bythe same action by members of the Code as is above provided for
amendment thereof, and, when so terminated, all obligations
and liabilities under the Code shall cease except. those for unpaid
assessments theretofore made in accordance with the provisions of
the Code.
It shall also be subject to the reserved power of the President to
cancel or modify his approval thereof, as is provided in Section 1
of Article VIII hereof.
SEc. 3. Nothing in this Code~ contained shall be deemed to con-
sltitute a waiver of any constitutional right of any member.



Avouser --, 1938.
AYmmucaN INsrTITUTE or Bour, NbTr & Rrvlcr MALNorkJeruBe,
Guacrdian Bldg., Cleveland, Ohio.
DEAB SIBa: The undersigned desiring to become a member of the Code of
Fair Competition of the American Institute of Bolt, Nut & Rivet Manufacturers,
a copy of which is annexed hereto, hereby assents to all the provisions'of said
Code effective as of the date on which the Code shall have been approved
by the President as therein provided, or, as of the date on which .this letter
shall hlave been delivered, if delivery thereof shall have made subsequent to
the date on which the Code shall have been approved by the President, as
aforesaid, and by the signing and delivery of this letter becomes a member of
the Code and hereby agrees with every person, firm, association, and corpora-
tion who shall then be or thereafter become a member of the Code, that the
Code shall constitute a valid and binding contract between the undersigned and
all such other members.
The address of the undersigned until it shall fie with the Beeretary of said
Institute written notice of the change of such address shall be set forth at
the foot of this letter.
Very truly yours,

Address :


per hour
1. Eastern District ----- ----------------- -------------- 35
2. Johnstown District _-- --- -- ----------------------- 37
3. Pittsburgh District ---- -------- ---------- ------- 40
4. Youngstown Valley Distr-ict _-------------- 40
5. North Ohio River District---------------- 40
;'0, Can ton, Massillon, ~a nsfield ~C umb s, DorrDu rict_ -------- 37
' 7. Cleveland District_-- -------- ------- -- ----------- 40
8. Bu~ffalo District -- -- ------------- ------ ------------- 38
9. Detroit-Toledo District---- -------- --------- 40
10. South Ohio River District--_-- -- -------- ---- 37
11. Indiana-Illinois-St. Louis District_- ____---_-_--- 37
12. Chicago District_ ____ -----_------ ------- 40
13. Southern District------ _--------- _--------- 25
14. Birmingham District ------- ------ ------------ -- --- 27
15. Kansas City District-____--_----_--- 35
1. ID.uluth-Minneapolis District_----- -------- ----- 37
17. Colorado District---------------- 40
18. Utah District.___-_--_-------- 39
19. Seattle District----- ------ --------- ---- 38
20. San Francisco District___-----------_- 37
21~. ~os Angeles District- ----------------------- 35


1. Eastern District comprises that part of the United States which
is north of the State of Virginia and east of a line drawn north and
south through the most easterly point of Altoona, Pennsylvania;
that part of the State of Mlaryland which is west of such line; and
the Counties of Monongalia, Marion, and Harrison in the State of
West Virginia.
2. Johnstown District comprises Camnbria County and the City of
Altoona in the State of Pennsylvania.
3. Pittsburgh District comprises t~he Counties of WCestmnoreland,
Fayette, Greene, W~ashington, Allegheny, Beaver, Butler, Arm-
strong, and Jefferson and that part of the County of Clearfield
which is west of a line drawn north and south through the most
easterly point of Altoona, all in the State of Pennsylvania.
4. Youngstown Valleyr District comprises the Counties of Law-
rence, Mercer, and Venaugo in the State of Pennsylvania and the
Counties of Trumbull, Mahoning, a~nd Columbiana in the State of
5. North Ohio River District comprises the cities along the Ohio
River north of the City of Parkersburg, W~est Virginia, a~nd the


16 HIIR l~ IlRR Illlal
3 1262 08582 9835
Counties of Belmont and Jefferson in the State of Ohio aPin~t the
Counties of Marshall, Ohio, Brook, and Hancock in the Statte W
West Virginia.
6. Canton, Massillon, Mansfield, Columbus, and Dover District
comprises the Counties of Porta~ge, Stark, Tuscarawals, Stzanmit,
Franklin, and Richland in the State of Ohio.
7. Cleveland District comprises the Counties of Ashtabul;:anLke.,
Cuyahog~a and Lorain in the State of Ohio.
8. Bufa~lo District comprises that part of the State of New York
west of a line drawn north and south through the most easterly point
of Altoona, Pennsylvania, and Erie County, Pennsylvania.
9. Detroit-Toledo District comprises the Counties3 of Senecat anld
Lucas in the State of Ohio and the Counties of Monroe, Lensawee
Jackson, Wayne, Oakland, Macomb, and Washtenaw in the State of
10. South Ohio River District comprises the State of Kntu
the City of Parkersburg, West Virginia, the cities alon h 1n
River south of said City, the Counties of Guernsey, Musinum
Jackrson, and Butler in the State of Ohio and the Count~y ofWod
in the State of West Virginia. ...
11. Indiana-Illinois-St. Louis District comprises ai1 th~e W~ittip of~)
Indiana,- except the County of Lake; all the State of Iinois, anneptl~r
the Counties of Lake and Du Page and the Chicagfo ifSw";;itcingDi
trict; the City of St. Louis and the County of St. Louis iii 'tha ~Stsite .i
of Missouri; and the County of Rock in the State of W~iscomb~i. .-
12. Chicago District comprises the Chicago SwitchingD ;rat
the Counties of Lake and Du Page in the State of Illinois; th C~oanty
of Lake in the State of Indiana and the Counties of Ketignha,~i R -'.
cine, and Milwaukee in the State of Wisconsin. i:;
13. Southern District comprises all that part of the UTnited Statiesp
south of the States of Maryland, West V~irginia, K~entucky, and
Missouri, and the States of Texas and Oklahoma, but does not Include
the County of Jefferson in the State of Alabama.
14. Birmingham District comprises the County of Jes~~ersjon: in
the State of Alabama.
15. Kansas City District comprises the County of Jackson ~ifuthea
State of Missouri. t!
16. Duluth-1Minneapolis District comprises the State of MI~inni~sota.
17. Coloradto District, comprises the State of Coloraddol.- 1i~
18. Utah District comprises the State of Utah.
19. Seattle District comprises the County of King in the Srtatedf
Washington and the County of Multonomah in the State-of Ok~egn.
20. San Francisco District comprises the Colinties of S8an M5ated$,
Alameda, Sacramento, and Contra Costs in the State'of Califera~ith
21. Los Angeles District comprises the Coulnty orf Los Ange~ilein
the State of California. ~ .~~;