Code of fair competition for the copper industry as approved on April 21, 1934


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Code of fair competition for the copper industry as approved on April 21, 1934
At head of title:
National Recovery Administration
Physical Description:
p. 379-405 : ; 24 cm.
United States -- National Recovery Administration
U.S. G.P.O.
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Publication Date:


Subjects / Keywords:
Copper industry and trade -- United States   ( lcsh )
federal government publication   ( marcgt )
bibliography   ( marcgt )
non-fiction   ( marcgt )


Includes bibliographical references.
General Note:
Cover title.
General Note:
Approved code no. 401.
General Note:
Registry no. 1209-1-02.

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University of Florida
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Approved Code No. 401

Registry No. 1209-1-02









For le by the uperienden o Douments Washington D.C Price 5 cen
For sale by the Superintendent of Documents, Washington, D.C. Price 5 cenla

This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.


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.. *' ( '- ....

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Approved Code No. 401


As Approved on April 21, 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 Copper Industry, and hearings having been
duly held thereon and the annexed report on said Code, containing
findings with respect thereto, having been made and directed to the
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 Pres-
ident, including Executive Order 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 purposes and policy of said Title of
said Act; and do hereby order that said Code of Fair Competition
be and it is hereby approved; provided, however, that (1) the pro-
visions of Article VII be deleted entirely and there be substituted
therefore the following to be called 'New Article VII':

1. Sales to be covered and reported.-The provisions of this Article
shall apply only to sales of duty free copper for domestic consumption
except as provided in subsections (17) and (18) of Section 6 hereof.
All sales of copper for domestic consumption shall be reported to the
Sales Clearing Agent, and charged against sales quotas as hereinafter
provided for, provided however, the tonnage of all other sales of
duty free copper shall also be so reported.
2. Filing of prices.-At least two days prior to the effective date of
the establishment of any sales quota pursuant to the provisions of
this Code, each party to whom such sales quota has been assigned
shall file with the Sales Clearing Agent a statement showing his selling
price of copper, as herein defined, together with his existing differen-
tials. Not later than during business hours of the day preceding the




effective date of the establishment of sales quota, the Sales Clearing
Agent shall notify each member of his filed price and differentials,
and also those of all other members, to become effective the next day.
Thereafter selling prices and/or differentials may be changed by giving
notice thereof to the Sales Clearing Agent prior to two o'clock P.M.
(New York City time) on any business day except Saturday, which
riew price and/or differentials shall be effective at the beginning of
business on the next business day. Notice to others shall be given in
each case, as above provided. After notice of any such change of
price and/or differential has been received by the Sales Clearing Agent
any other party having a sales quota may give like notice during the
balance of that day and in such case all such new prices and/or differ-
entials shall become effective at the beginning of business on the fol-
lowing business day. After the effective date of this Code no sales
of copper shall be made at a price or differential other than that speci-
fied by the seller in his filed statements and in effect at the time of the
sale. The Code Authority shall have the average weighted sales price
computed each day and immediately furnish it to the trade papers
and public press as the "Quotation issued by the Code Authority for
Copper offered for sale in the Domestic Market pursuant to the pro-
visions of the Copper Code", and the trade papers and public press
shall be requested to use this quotation only for copper so offered, and
to issue a scparat.e quotation for copper not offered for sale pursuant
to the provisions of this Code. The Code Authority with the approval
of the Administrator, or the Administrator on his own initiative, may
from time to time make such other rules and regulations with refer-
ence to filing of prices and/or differentials and the averaging and
publication thereof as it may deem necessary.
3. Filing of treatment charges by secondary producers.--In addition
to selling prices as filed there may, and upon request of any two
producers of secondary copper there shall, be filed by producers of
secondary copper a schedule of treatment charges covering the
different grades of scrap material and these may be amended in the
same manner as any other filed prices. Custom smelters and/or
refiners shall not treat on toll any secondary copper-bearing material
(a) Scrap or other similar material produced by fabricators or
manufacturers in the normal course of fabricating operations and
tendered by such fabricators for treatment and return to them, or
(b) Scrap or such other material, the treatment of which is the
subject of contracts entered into prior to March 12, 1934, or renewals
thereof if approved by the Code Authority for exception.
(c) The Code Authority with the approval of the Administrator
may make other exceptions upon request by the custom smelters
and/or refiners.
By "treatment on toll" is meant treating material for a service
charge payable in money or metal, and returning the copper content
in refinery shapes only or its equivalent, in whole or in part.
4. Relief against excessive selling price.-If at any time during the
effective period of this Code the selling price of copper shall reach a
level which in the judgment of the Code Authority or the Adminis-
trator is deemed to be unreasonably high, considered both with respect
to the cost of production and with respect to the consuming public,
the Code Authority with the approval of the Administrator, or the


Administrator on his own initiative, may temporarily suspend any or
all of the marketing provisions contained in this Article VII as shall
be deemed most effective in the holding of the prices to reasonable
levels and in the event such action is deemed to be necessary any such
stay may be made permanent.
5. Exemption from sales plan.-If at any time during the effective
period of this Code anyone holding a sales quota thereunder shall, by
virtue of the operation of the Sales Plan, have accumulated a deficit
in his allocated sales in the aggregate equal to one full month's sales
quota of such party, and he shall have notified the Code Authority of
the existence of such deficit, and if thereafter such deficit should
increase to an amount equal to the party's sales quota for one and
one-third months, then upon the party giving a supplemental notice
of the fact to the Code Authority, after an interval of at least ten days
after said preliminary notice, all the provisions of this Article VII
shall terminate, including the agreements referred to in subdivision 6,
subsection 12, paragraph (c), of this Article VII.
6. Sales plan-quotas and allocation.-(1) From and after the effec-
tive date of this Code all sales of copper by those governed by this
Code shall be made in conformity with the provisions of this Article
The Administrator upon his own initiative, or the Code Authority
with the approval of the Administrator, may establish rules and regu-
lations to effectuate the purposes of the Sales Plan. Until the estab-
lishment of such rules and regulations by the Code Authority the
Sales Clearing Agent shall set up rules and regulations which in his
judgment are designed to carry out the spirit and intent and general
purposes of the Sales Plan, subject to the review and disapproval of
the Administrator. The purpose of this Sales Plan is to provide in
so far as possible a first place in sales for current production and
then to provide for a fair and equitable sale of stocks.
(2) Until such time as the Code Authority may determine that such
member has failed to comply with the provisions of this Code and
such determination has been approved for the purpose by the Ad-
ministrator, the monthly sales quota for each primary producer of
the industry listed below and the relative annual productive capacities
of such members, arrived at solely for the purpose of establishing
sales quotas, shall be as follows:

Tons Monthly
per annum sales quotas

Kennecott Copper Corporation.-.......-- .. .... -............ ......-- -......-- 366,500 1.67
Anaconda Copper Mining Company........---..-- ......--.....-....-....------ 225,000 1.67
Phelps Dodge Corporation..------....--------... ....-- ...-..-- .....----------- 168.000 1.67
United Verde Copper Company...............................................--68,000 1.90
Calumet & Heela Consolidated Copper Company..............------.. -- ------. 50,000 2.20
Miami Copper Company-..--... --........---....... .............--- .....--- -.. 36.000 2.30
Magna Copper Company------..........--...-....-.... ....................... 25, 000 2. 50
United Verde Extension Mining Co...--------------..............--.....--..-------------- 24,000 2.50
Consolidated Coppermines Co---.......-----.......---....-... ..-------- -- 21,000 2 70
Copper Range Company--... ------------.... .. --........ ............. ....... ---17.500 3.00

(3) In addition to the sales quotas provided above an aggregate
sales quota of 9,500 tons per month shall be allocated as individual
sales quotas among the producers of secondary copper by some
equitable method agreed upon by such producers and approved by


the Code Authority. In the event the producers of secondary copper
are unable to agree then such allocation shall be made by the
(4) Any producer who shall assent to the Code and/or Sales Plan
who is entitled to, but has not received, a sales quota may apply for
a sales quota. If, however, the product of such producer is treated
by a custom smelter or refiner such custom smelter or refiner may,
if the producer shall fail to apply for a quota, make application in
its name but for the account of such producer. During the first sales
period each producer of custom and by-product copper shall have
a quota equal to fifty (50%) percent of the copper produced and
treated at the treatment plant. The allocation of such quota in the
amount of fifty (50%) percent of the production treated during such
first sales period shall not serve as a precedent or in any way be con-
trolling in the determination of the sales quota applied for by any
such producer for the period subsequent to said first sales period.
(5) The Code Authority shall have no power to decrease sales
quotas established pursuant to subsections (2) and (3), of this Section
6, save upon unanimous vote of the Code Authority and the consent
of the party or parties whose quotas are to be thereby decreased.
But the Code Authority upon a two-thirds vote of its membership
and with the approval of the Administrator, may increase any such
sales quota. In the event the sales quotas of primary producers are
generally increased they shall be increased ratably to the end that
the increase for each individual producer will be such as to arrive
simultaneously at a sales quota equal to fifty (50%) percent of their
respective capacities; and further in the event of any increase in
quotas of primary producers proportionate increases shall be made in
the sales quotas of secondary producers as shall be justified by the
then existing conditions.
Nothing contained herein, however, shall be construed so as to
limit the right of the Administrator at any time after proper notice
and giving all parties an opportunity to be heard, to make such change
as he may deem necessary in the sales quotas, or Sales Plan provided
for herein.
(6) Until a change is approved by the Administrator and the Code
Authority, or by the Administrator alone, the aggregate sales quotas
given pursuant to Subsection (2) and Subsection (4) of this Section 6
shall not exceed twenty thousand five hundred (20,500) tons per
(7) Allocations of sales must be accepted by those holding sales
quotas provided they have copper available for delivery within the
delivery period covered by such allocation, except as provided in
Subsection (14) hereof. A member unable to accept a sales allocation
shall have no right subsequently to make up the deficiency, except
that if any producer or producers of secondary copper have been
unable to accept future sales allocations beyond the current month
to the same extent that such future allocations have been accepted by
primary producers, then commencing with the first of the month for
which such future sales allocations have been made all sales subject
to allocation shall be allocated to such secondary producers to the
exclusion of primary producers to the extent of the current intake of
such secondary producers until such time as each of the secondary
producers are brought into a proper relation with such primary pro-


ducers as regards such allocated sales, provided, that this provision
shall not be applied so as to give any producer of secondary copper
a greater allocation of sales than if it had accepted all such future
(8) Sales as made shall be proportionately applied to sales quotas
for the current month and at the end of the month unsold sales quotas
shall be carried forward for sale and allocation during the following
month, except that the unsold quotas carried forward at the end of
each month for each secondary producer shall be adjusted to eliminate
the tonnage by which its shortage of accumulated actual secondary
intake as compared with its accumulated sales quota exceeds its sales
quota for one and one-half months. If sales quotas for the current
month have been sold then all sales in excess thereof shall be applied
to the subsequent month for which the sales quotas have not been
completely sold so that sales shall be applied to sales quotas for the
current month, then to each of the two succeeding months. After the
sales quotas of the current month and next two months have been
sold, further sales during the current month shall be allocated to and
applied to copper stocks; provided, however, that prior to a general
allocation to copper stocks there shall first be set aside fifty percent
(50%) of all sales then to be allocated to copper stocks, which fifty
percent (50%) shall be divided so that two-fifths shall go to secondary
producers in proportion to their respective holdings of secondary
copper accumulated since October 1, 1933, but limited in any event to
such accumulations, and three-fifths to by-product and other primary
stocks, and then the remaining fifty (50%) percent (or whatever larger
amount there may be available pursuant to the foregoing) shall be
allocated to copper stocks generally and not to sales quotas. The
Code Authority shall propose a plan for the handling of such alloca-
tions to stocks generally which shall be effective when approved by
the Administrator, and which shall provide for the disposal of such
accumulations by an orderly liquidation, and such sales from stocks
shall be Blue Eagle Copper within the meaning of this Code.
(9) The sale of copper by any member of the Industry without
first having received an assignment of a sales quota pursuant to the
provisions of this Code, or otherwise in contravention of any of the
provisions of this Code, shall be a violation of this Code; provided,
however, that holders of copper who are without sales quotas and
who are unable to obtain sales quotas and custom smelters and/or
refineries whose intake is in excess of their sales quota and to the ex-
tent of such excess may sell such copper but it shall not be eligible
to be called Blue Eagle Copper and shall not be considered copper
. offered for sale pursuant to the provisions of the Copper Code, and
all invoices and papers covering such transactions shall be plainly
marked "The copper covered in the transaction is Not Blue Eagle
Copper and is Not qualified to be used in the manufacture of any
articles for sale to the U.S. Government as provided for in the Presi-
dent's Order of Approval for the Code of Fair Competition for the
Copper Industry." All sales of copper, however, shall be promptly
reported to the Sales Clearing Agent of the Code Authority.
(10) It shall be a violation of this Code for any member of the
Industry by any transaction with another member to buy, sell,
exchange or receive any stocks of copper so as thereby to be allowed,
or enable another to participate in the Sales Plan and/or receive a


sales quota and dispose of copper pursuant thereto, to an extent or
in such manner as would not otherwise have been possible if such
purchase, sale, exchange or receipt of copper had not taken place,
provided, however, that this provision shall in no manner prohibit
the bona fide sale of copper produced by the seller or owned by it on
the effective date of this Code, in the event that such sale is made
pursuant to the other provisions of this Code.
(11) All allocations of sales quotas and stock shall be made by the
Sales Clearing Agent. A computation shall be made by the Sales
Clearing Agent daily of the percentage of sales applied to each sales
quota in relation to the aggregate of all quotas and a daily allocation
shall be made at the average price of all sales made on that date,
after making such eliminations and additions, as to sales, as may be
required by virtue of the other provisions of this Code. In the event,
at the end of the month, sales and purchases are necessary between
those holding sales quotas in order to adjust actual sales to sales
quotas, they shall be made pursuant to the daily computations and
allocations made by the Sales Clearing Agent during that month.
Proper allowance shall be made by the Sales Clearing Agent for differ-
entials including freight charges, varying types and quality of copper,
sales commissions, and time of delivery. Full information may be
obtained upon request from the Sales Clearing Agent concerning
any such computations or allocations.
(12) In order to maintain the proper relation between sales and
(a) Any primary producer in operation and producing copper on
the effective date, or any other primary producer not producing
copper on that date but which after the effective date resumes such
production, which fails to produce its sales quota reasonably averaged
over a period of three months, or such longer period as the Code
Authority or the Administrator may have approved, shall thereafter
lose its right to participate in the allocation of sales by the Sales
Clearing Agent proportionately to the extent of such decrease in pro-
duction; provided, however, that the foregoing provision shall not
apply in the event of a shutdown or decrease in production on account
of causes beyond the control of the producer or for any reason which,
in the opinion of the Code Authority and the Administrator, or the
Administrator on his own initiative, justifies such shutdown or
decreased production; provided, further, that in addition to limita-
tion on sales of primary copper provided in this Article VII primary
producers shall limit their production so as to conform to the plan and
purpose of this Code, and to coordinate the production of primary
copper with current sales, quotes in order to avoid excessive accumu-
lation of stocks and any failure reasonably so to do to the satisfaction"
of the Code Authority shall be a violation of this Code.
(b) No specific limitations or requirements shall be imposed upon
the intake of secondary copper producers, but in lieu thereof sales of
secondary copper shall be controlled and limited as provided in this
Article VII. Custom smelters and/or refiners shall endeavor, so far
as practicable, to limit their intake of secondary copper so as to con-
form to the plan and purpose of this Code, and to coordinate the flow
of copper and of intake material with current sales quotas in order to
avoid excessive accumulation of stocks.
(c) All consumers of copper, including fabricating or manufacturing
companies owned or controlled by producers who are members of the


Industry, shall be urged by the Code Authority to assist in the
stabilization of the Industry by regular monthly purchases of copper
in as large an amount as may be practicable in each case, and shall be
similarly urged to enter into agreements to make such purchases.
Upon the execution of such an agreement by a copper consumer in
form and substance satisfactory to the Code Authority, or the Admin-
istrator, and for so long as the terms of such agreement are complied
with, and no other copper other than Blue Eagle Copper is purchased,
all copper sold and/or fabricated by such consumer shall be "Blue
Eagle Copper", as defined herein. The Code Authority of this
Industry shall cooperate with the Code Authority and/or Super-
visory Agency of the Copper and Brass Mill Products Industry and
the Wire and Cable Subdivision of the Electrical Manufacturing
Industry in effectuating the purposes of the marketing and fair trade
practice provisions of this Code.
(d) For the purpose of the Sales Plan, sales and/or transfers of
copper by a member holding a sales quota (including any of its sub-
sidiaries or affiliates) to its fabricating plants or to any subsidiary
fabricating company, shall not be subject to said plan, except to the
extent set forth in agreements made by the fabricating subsidiaries
of such producer under the terms of the preceding paragraph (c);
provided, however, that in case a member owning a fabricating plant
or the fabricating subsidiaries of any one holding a sales quota should
fail to make an agreement under the terms of the preceding paragraph
(c), the sales of copper by that member shall be determined by the
Administrator or in the event of his unwillingness t.o act, by the Code
(e) In order to provide equitably for an increase in employment
by increasing current production and/or to facilitate liquidation
of excessive copper stocks in a manner which will not interfere with
the operation of the Sales Plan pursuant to the provisions of this
Code, the Code Authority, with the approval of the Administrator,
may negotiate bulk sales of copper to, through, and/or with the ap-
proval of government agencies, provided, however, that no commit-
ment shall be made for or become binding on any member of the
Industry unless he shall accept the allocation made to him by the
Code Authority of his proportionate share of any sale so negotiated,
except to the extent he is obligated to sell copper under the provisions
of this Code.
(13) All sales of copper made during the period from March 22,
1934, to the effective date of this Code shall be deemed for the pur-
poses of the Code to be sales made after the effective date and shall
be allocated in accordance with the Sales Plan provided for herein.
All sales commitments under subsection (c) of Section 12 of this
Article shall also date from March 22, 1934, and be included in the
first sales period.
(14) In order to facilitate the sale of the aggregate of all sales quotas
in any current month, any one having a sales quota may, prior to
the first of each month, with the approval of the Code Authority,
waive his sales quota or any part thereof, for the following month.
(15) In no event, however, shall any member of the industry be
required to accept allocation of sales made pursuant to the Sales
Plan which will require him to reduce the amount of copper stocks
held by him and unsold on March 1, 1934, less stocks liquidated by


such member since that date, by more than 25% thereof, but no
such limitation shall apply until the Code Authority receives notice
from any such member of the Industry that further sales will require
him to reduce his stocks beyond that percentage.
(16) The first sales period shall be deemed to terminate on the
last day of the current month in which the effective date of the Code
occurs, subject to the provisions of subsection (13) of this Section 6
and accordingly the first sales period shall extend from March 22, 1934,
to the last day of the month in which such effective date occurs.
The sales quota for such first sales period shall be decreased or in-
creased as the case may be if necessary so as to bear the proper pro-
portion to the number of days in such first sales period.
(17) In addition to other limitations which may exist pursuant to
other provisions of this Code, the Code Authority with the approval
of the Administrator, or the Administrator on his own initiative, may
make rules and regulations governing any sales of copper in excess
of sales quotas, which may limit the quantity of copper which may
be sold and may also make such provisions as may be necessary to
prevent excessive purchases by consumers in relation to their rea-
sonable requirements for the immediate future; provided, however,
that no provisions shall prohibit any member of the Industry from
selling the full production requirements of any of its subsidiary
fabricating companies.
(18) No member of the Industry shall engage in destructive price
(19) Whenever, upon complaint or on its own initiative without
complaint, and after affording an opportunity to any interested party
to be heard, the Code Authority is of the opinion that an emergency
exists within the Industry in that destructive price cutting and/or
excessive production is being engaged in to such an extent as to
render ineffectual or seriously endanger the effectuation of the pur-
poses of this Code or of the Act so as to require the establishment of
minimum prices for the sale of copper and/or regulation of produc-
tion, the Code Authority shall certify any such conclusion to the
Administrator and, upon his approval thereof, after hearing on such
notice as he may prescribe, such minimum prices and/or regulation
of production may be established and the Code Authority may adopt
rules and regulations satisfactory to the Administrator governing
the establishment of such minimum prices for the sale of copper and/or
regulation of production based on such factors and/or conditions as
may be found necessary to meet such emergency; provided, however,
that no provision of this Code or of any rules and regulations which
may be promulgated pursuant thereto shall be interpreted so as to
require any member of the Industry to reduce his production below
his sales quota as originally established pursuant to the provisions of
this Code. When a minimum price as herein provided for shall be
established any sale below such price will be considered destructive
price cutting and a violation of this Code; and (2) there shall be
added to, and as a part of Article VIII the following provision:
In order to facilitate the enforcement of the Executive Order of the
President No. 6246, dated August 10, 1933, and the Executive Order
of the President No. 6646, dated March 14, 1934, concerning Govern-
ment Contracts for supplies, and to effectuate the purpose of the Act
and this Code, it is provided that:


(a) Only copper sold pursuant to the marketing provisions of this
Code shall be entitled to be called "Blue Eagle Copper" and only
"Blue Eagle Copper" shall qualify as complying with the Executive
Orders above referred to. Certificates for the purpose of complying
with said Executive Orders of the President shall provide that all
articles covered by such certificates shall be completely free of any
copper save "Blue Eagle Copper."
(b) For no other purpose of this Code shall copper be deemed to be
such copper as has been sold pursuant to the provisions of this Code
if the same shall contain any copper other than "Blue Eagle
(c) The Code Authority, or the Administrator, shall provide rules
and regulations for determining the eligibility of copper to be called
"Blue Eagle Copper."
(d) All "Blue Eagle Copper" shall either be stamped with the
replica of the N.R.A. insignia when such copper passes through the
smelter and/or refinery, or be accompanied by a certificate by such
smelter, refiner, and/or Code Authority that such copper is "Blue
Eagle Copper."
(3) The last sentence of Section 2, Article IX, shall be changed to
read as follows: "Any action taken by the Coordinating Committee
under any of the provisions of this Article IX shall be subject to the
approval of the Administrator"; and
(4) The last two sentences of Section 5 (d), Article VI, which impose
the costs of investigation, examination, or audit on a member of the
Industry complained against if the complaint is justified and on a
complainant member of the Industry if the complaint is not justified,
shall be effective only as to those members of the Industry who shall
have assented to the Code.
AAdministrator for Industrial Recovery.
Approval recommended:
Division Administrator.
April 21, 1934.


The 1thite House.
SIR: This is a report on the Code of Fair Competition for the
Copper Industry, as revised after a Public Hearing conducted in
Washington, D.C., on March 12 and 13, 1934, adjourned and recon-
vened on March 20, 1934, in accordance with the provisions of the
National Industrial Recovery Act.

Before outlining in detail the provisions of this Code it seems
appropriate to describe the condition of the Industry and some of the
problems facing it.
Copper is practically an indestructible metal. Nearly all the copper
that has been mined is either in use or available for use. Refined
copper is derived from two sources, primary or new copper produced
from mining operations, and secondary copper resulting from the
reprocessing of materials containing copper which is flowing back to
the market in the form of junk or scrap. In recent years secondary
copper has supplied about twenty percent (20%) of the total con-
sumption. However, the flow of scrap back on the market is not in
direct proportion to consumption and in the last year the percentage
of scrap has been somewhat higher.
Copper is mined in many states. The more important, and prac-
tically the only mines in operation are located in Arizona, Utah,
Montana, Nevada, New Mexico, and Michigan.
The annual production capacity of domestic mines is approxi-
mately 1,000,000 tons of copper per year. To this must. be added an
estimated production of 125,000 tons of secondary copper. As of
January 31, 1934, stocks of copper amounted to approximately
775,000 tons. Subtracting from these stocks, normal mill inventories
and future sales commitments, there was approximately 450,000 tons
of free stocks on hand.
If the probable production of copper from scrap was added to the
free stocks there would be 575,000 tons of copper on hand at the end
of the next twelve months less actual consumption. With an esti-
mated consumption of 400,000 tons per year, it is apparent that there
is copper on hand or coming in the market from scrap to take care of
domestic requirements for eighteen months without any current mine
In other words, if all the copper mines were to shut down for eighteen
months there would be sufficient copper available for all estimated
needs during that period.
The number of people employed in the Industry averaged about
45,000 per year for the period from 1923 to 1929 inclusive. Since the
latter date employment has gradually decreased. There were
approximately 16,000 employees in 1933.


A large number of those employed in the Industry live in commu-
nities built around the mines. In most cases there is no other type of
employment available in the community. The falling off of employ-
ment has been felt very acutely and has resulted in great hardships,
distress and suffering. It is imperative that current production be
maintained at a rate equal to current consumption, in order to keep
as many as possible employed. To do this it is necessary to freeze
a large part of the existing stocks and a plan is provided that should
accomplish this.
Another factor in the situation is the development of large copper
deposits in Africa. The copper produced from this source together
with Canadian and South American production is enough to care for
world requirements. Due to low labor costs this foreign copper is
produced at a price that this country has difficulty in meeting.
The United States price of copper at refinery for the last fifteen
years has been as follows:

Prices in cents per pound

Year High Low eary Year High Low Yearly
average average

1199................ 22.319 14.856 18.691 1927.----.-------... 13.774 12 370 12.020
1920... .....------ .. 18.918 13. 188 17.436 1928 .........-..... 13 844 13 823 14. 570
1921-.........-- .... 13.555 11.634 12.502 1929................ 21.257 16.603 IS. 107
1922........-....-.. 14 074 12.567 13.382 19.30........-- .....- 17.775 9 597 12.982
1923...........---------.. 16.832 12 574 14.421 1931................ 9.85l 6 558 8. 116
1924..--............. 14.260 12.327 13.024 1932............... 7 060 4 813 5.555
1925 ............------------- 14.709 13 252 14.042 1933................ 8. 775 4 773 7.025
1926...-----............ 14.17 13.302 13.795

Prior to 1919 the lowest average yearly price was 9.560 per pound
in 1894. The normal price heretofore has been about 130 per pound.
Copper has maintained a reasonable relation to the value of gold.
The present market price in terms of gold is under five cents per
Improved equipment, mining mill and smelting practices have
gradually reduced the cost of producing copper but the present
average cost including reasonable depletion is in excess of the present
selling price.
The Industry, faced with these problems of excessive stocks, low
consumption and a depressed price, has endeavored ever since the
passage of the National Industrial Recovery Act, to work out. a Code
that would offer a solution to their difficulties. The Industry was
unable to agree among themselves on a plan and finally submitted a
Code covering only the labor, administrative, and mandatory pro-
visions, with the permissive right to submit to the Administration at
a later date a plan agreeable to all members to cover problems of
production, sales and price.
The National Recovery Administration felt however, that. in view
of the necessity of maintaining employment, and to provide for an
orderly recovery through regular purchases of copper and the freezing
of existing stocks, a plan should be provided and made effective
immediately to accomplish this end.
There is therefore, included in the Administrative Order of
Approval a plan which it is believed will accomplish this and the In-
dustry has indicated a willingness to cooperate in making this effective.


A 40-hour week averaged over three months is established and
provision made for an impartial investigation to be made covering
the averaging feature.
Wage rates ranging from 30t to 47);2 per hour are established.
Equitable adjustments are to be made in all wage rates above the
mmunum. It is further provided that in no event shall any wage
rates be reduced. No one under 18 years of age shall be employed
except in clerical and similar office work where an age limit of 16
years is set.
Copper is largely used in the Capital or Durable Goods Industry
and any increase in consumption is dependent upon increased ac-
tivity in these branches of Industry.
While it is impossible under present conditions to provide for any
but a slight increase in employment the Code provisions will un-
doubtedly prevent the closing of mines now in operation, avoid
destructive price cutting, and at the same time provide adequate
control of prices in the public interest.

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 proceedings
in this matter:
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of industry
for the purpose of cooperative action among the trade groups, by
inducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision, by elimin-
ating unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity of industries, by avoid-
ing undue restriction of production (except as may be temporarily
required), by increasing the consumption of industrial and agricultural
products through increasing purchasing power, by reducing and
relieving unemployment, by improving standards of labor, and by
otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the per-
tinent 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 associa-
tion is an industrial association truly representative of the afore-
said Industry; and that said association imposes no inequitable
restrictions on admission to membership therein.
(d) The Code is not designed to and will not 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) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said Code.
For these reasons, therefore, I have approved this Code.
APRIL 21, 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 Copper Industry, and shall be the standard
of fair competition for such industry and binding upon every member
As used in this Code, words and phrases have the following mean-
1. The term 'Copper Industry' or 'Industry' includes the mining,
production, treatment, and/or sale of copper in the United States,
but excludes (1) the fabrication thereof or the sale thereof in fabricated
form, and (2) such minor operations either in whole or in part in
relation to secondary copper as will not jeopardize or materially affect
the purposes of the Code, the exclusion of which may be specifically
approved by the Administrator.
2. The term "member of the Industry" or "member" means
anyone engaged in the Copper Industry or in one or more of the phases
involved thereip.
3. The term "copper" includes lake copper, electrolytic copper,
casting and best select (fire-refined) copper of whatever grade, bes-
semer, blister and black copper of whatever grade, but does not
include fabricated copper in any form. The term "Copper" does
not include casting copper produced from scrap by fire-refining
suitable for casting purposes in foundry use and for copperizing steel
but not suitable for rolling or drawing or for use in copper or brass
sheet, wire, tube or rod mills.
4. The term "Primary Copper", as distinguished from secondary
copper and by-product copper hereinafter defined, means new copper
derived or procured after the effective date of the Code from mining
or metallurgical operations in the United States, including copper
commonly known as "Custom Copper" produced from the same
sources as primary copper.
5. The term "Secondary Copper" or "Secondary Metal", as
distinguished from primary copper and by-product copper as herein
defined, means that copper produced in the United States by smelters
and refiners by re-working scrap-copper, scrap-brass, and scrap alloys
containing copper, excluding any copper classed as copper stocks on
the effective date of this Code.
6. The term "By-Product Copper" means copper produced or
recovered incidental to or as a by-product in the treatment and re-
covery of other metals or materials, from ores, concentrates or
iron pyrites.


7. The term "Custom Copper" means primary copper produced
by custom smelters and/or refiners from purchased ores, concentrates,
matte or blister copper derived from primary sources.
8. The term "Fire-Refined Copper" means copper produced from
copper-bearing material, either primary or secondary, through treat-
ment by fire for the purpose of removing impurities.
9. The term "Lake-Copper" means fire-refined primary copper
produced in the State of Michigan.
10. The term "Primary Producer" means any member of the
industry who is a producer of primary copper.
11. The term "Custom Smelters and/or Refiners" means those
members of the industry, sometimes hereinafter referred to as "Sec-
ondary Producers" or "Producers of Secondary Metal ", who have
facilities for production of electrolytic copper and who receive primary
ores, copper concentrates, blister copper, scrap copper, junk copper
and/or by-product copper for processing into copper, either charging
the shipper a treatment charge and returning the resulting copper
to the shipper or purchasing the material outright and selling the
copper produced therefrom to consumers.
12. The term "Production" in relation to primary copper means
the resulting finished merchantable product derived from the treat-
ment of ores, concentrates and other copper-bearing or partly proc-
essed material together with any substantial increase in copper-
bearing material above ground or removed from the mine, without
duplication. The intent of this method of computation as to primary
copper production is to correlate actual mine production with produc-
tion as defined and as limited herein, and without allowing an inter-
mediate accumulation of ores, concentrates or partly processed
13. The term "Intake", in relation to secondary copper means the
tonnage of secondary copper priced each day by Custom Smelters
and/or Refiners; not including any pricing of custom copper and/or
of by-product copper.
14. The terms "Stocks of Copper", "Copper Stocks" or "Stocks"
mean stocks or inventories of copper, as defined, in the United States,
in the hands of members of the industry and their owned or controlled
subsidiaries, excluding bessemer, blister and black copper and copper
in bond.
15. The term "Electrolytic Copper Wire Bars" or "Electrolytic
Wire Bars" means electrolytically-refined copper cast into standard
shapes suitable for rolling and drawing in copper wire and rod mills.
16. The term "Productive Capacity" of any primary producer, for
the purposes of this Code means the tons of copper such producer is
stated to be able to produce with its present plant and equipment
in a period of one year, but capacities as herein stated are relative
and do not necessarily signify the maximum which any member of
the industry is able to produce in a single year.
17. The term "Selling Price" as used herein means the price at
which electrolytic wire bars of standard size are sold on the basis of
Connecticut Valley delivery, and shall be subject to applicable
differentials for delivery at other points, and for the other shapes and
18. The term "Employee" includes anyone engaged in the industry
in any capacity receiving compensation for his services, irrespective


of the nature or method of payment of such compensation, except a
member of the industry.
19. The term "Employer" includes anyone by whom any such
employee is compensated or employed.
20. The term "Apprentice" means an employee who is regularly
engaged in .learning a trade under a course of training designed to
advance him systematically in the various operations of such trade
to become a competently skilled mechanic.
21. The term "Northeastern Wage District" is defined as compris-
ing all states east of the Mississippi River and north of the Ohio River,
and north of the states of West Virginia, Maryland, Delaware, except
the states of Michigan, Wisconsin and Minnesota. The term
"Southeastern Wage District" is defined as comprising all states east
of the Mississippi River, and south of the states included in the
Northeastern Wage District except West Virginia. The term "Great
Lakes Wage District" comprises the states of Michigan, Wisconsin
and Minnesota, and the term "Southwestern Wage District" com-
prises the states of Arizona, New Mexico, and Texas, and the term
"Northwestern Wage District" comprises all states west of the Mis-
sissippi River, and the Territory of Alaska, except the three states in
the Southwestern Wage District.
22. The term "Owning and Controlling" or similar terms with
reference to a subsidiary company means the ownership either directly
or indirectly of a majority of the voting capital stock of the subsidi-
ary company.
23. The term "Affiliate" means (1) a company in which another
company has a substantial interest through the ownership of its
voting capital stock, but less than a majority thereof, or (2) a company
under common ownership or control with respect to one or more other
24. The terms "President", "Act" and "Administrator" mean,
respectively, the President of the United States, the National Indus-
trial Recovery Act and the Administrator of Title I of said Act.
25. The term "Code Authority" means the authority provided for
under Section 1 of Article VI hereof.
26. The term "Fabricator" means one engaged in the processing
of copper for the purposes of sale in fabricated form.
27. The term "Consumer" means anyone who purchases copper
for fabrication or other manufacturing purposes.
28. The term "Association" as used herein means the United
States Copper Association, an unincorporated association having its
principal offices at 33 Rector Street, New York, N. Y.
29. The term "United States" means the part of the United
States on the North American Continent.
30. The term "Effective Date" is the date upon which this Code
becomes operative and effective.

1. On and after the effective date of this Code no employee shall
be permitted to work in excess of 40 hours per week, averaged over a
three-month period, or in excess of eight hours in any twenty-four hour


period except as herein otherwise provided. Every employer at the
end of each quarter shall report to the Code Authority, in such detail
as may be required by it or by the Administrator, any action taken
by the employer in connection with the averaging feature herein
provided, giving the number of man-hours so worked, the reasons
therefore and the ratio which such man-hours bear to the total number
of man-hours worked during said quarter. Such report shall be
transmitted by the Code Authority to the Administrator. The
Administrator may, at his discretion, appoint an impartial investi-
gator to review conditions in the industry concerning the averaging
provisions herein. Such investigator shall contact employers and
employees and, on completion of his review, shall report to the Admin-
istrator and forward a copy of such report to the Code Authority.

2. No person employed in clerical or office work shall be permitted
to work in excess of 40 hours per week, except that during any one
week in a one-month period such employee shall be permitted to work
a maximum of 48 hours in any such week, and except as herein other-
wise provided. A normal day shall not exceed eight hours.

3. The limitation as to hours of labor specified in Sections 1 and 2
of this Article III shall not apply to the following:
(a) To employees engaged in emergency maintenance, or emergency
repair work involving breakdown or protection of life or property;
provided that in such special cases one and one-half times the normal
wage rate for any employee so employed shall be paid for all hours
worked in excess of 8 per day, or 40 per week. Such special cases,
however, shall be reported to the Administrator through the Code
(b) To outside salesmen, nor to persons in an executive, managerial,
technical, technical engineering, or supervisory capacity, who receive
$35.00 or more per week.
(c) To hoistmen, powerhousemen, and pumpmen, who may be
permitted to work a total of forty-eight hours per week.
(d) In the case of operations with three shifts in a twenty-four
hour period where only in order to change shifts, it is necessary for
employees to work more than eight hours in one twenty-four hour
period, the provisions concerning working in excess of 8 hours in any
one twenty-four hour period shall not apply.
(e) In the case of shut-down properties or other special situations
which may require modification of Sections 1 and 2 of Article III, the
Administrator on request of the member of the Industry and after
investigation and such public hearing as he may deem, necessary may
make special rules and modifications.
(f) To necessary clerical help that must work concurrently with
employees described in Section 1 hereof and/or (a) to (d) inclusive of
this Section 3, which clerical help may be permitted to work not in
excess of the number of hours which such employees shall work.


4. No employer shall knowingly permit any employee to work for
any time which, when totaled with that already performed with
another employer or employers in this Industry, exceeds the maximum
permitted herein.
1. The minimum wage rates (except as hereinafter otherwise pro-
vided) for this Industry for the various districts shall be not less than
as follows:
Cents per
(a) Great Lakes Wage District: hour
Surface Labor_ -- ----------------------------- 3212
Underground Labor_ ---------------------------_ 37%
(b) Northeastern Wage District:
Surface Labor ---------------------------------- 37,
(c) Southeastern Wage District:
Surface Labor_ ---------------------------------- 35
(d) Southwestern Wage District:
Surface Labor_ ----------_ --------------_------- 30
Underground Labor-. -------------------------- 45
(e) Northwestern Wage District:
Surface Labor-__ ------------------------------ 40
Underground Labor_---------- ----------------- 471
provided, however, that minimum wage rates in effect in any district
on March 1, 1934, which were above the minimums specified herein for
that district shall in no case be reduced; and provided further, that
the underground rate in the Ray District of Arizona shall be not
less than 38t per hour.

2. No accounting, clerical, office, sales or service employee in any
office shall be paid less than at the rate of $18.00 per week; provided,
however, that office boys and girls and messengers shall be paid not
less than at the rate of 80% of the minimum hereinabove specified;
and provided further that the number of such boys and girls and mes-
sengers so paid shall constitute not more than 5% of the total number
of such employees of any one office of any one employer, but in any case
such employer shall be entitled to employ one such employee at not
less than such reduced rate.

3. If an equitable adjustment of the differentials in the wage rates
above the minimums fixed in this Code has not been made since
July 1, 1933, there shall then be such adjustment, if necessary, made
within 60 days from date of the approval of this Code. Such equitable
adjustment shall mean that the differentials in amount existing prior
to the formulation of this Code shall be maintained for employees
other than persons enumerated in Article III, Section 3, paragraph
(b), provided, however, that in no event shall hourly rates of pay be


4. A person whose earning capacity is limited because of age or
physical or mental handicap may be employed on light work at a wage
below the minimum established by this Code if the employee obtains
from the State Authority designated by the United States Department
of Labor a certificate authorizing such employee's employment at
such wages and for such hours as shall be stated in the certificate; such
Authority shall be guided by the instructions of the United States
Department of Labor in issuing such certificates. Each employer shall
file a list of such persons employed by him, with the Code Authority.

5. When due, an employer shall make payment of all wages in law-
ful currency or by negotiable check therefore, payable on demand. No
employer shall withhold wages unless so required by law. Wages shall
be'exempt from any payments for pensions, insurance or sick benefits
other than those voluntarily paid by the wage earners or required by
State Law. Wages shall be paid at no greater interval than every
semi-month, and salaries at no greater interval than every month.

6. This Article establishes a minimum rate of pay which shall apply,
irrespective of whether an employee is actually compensated on time
rate, piece work, or other basis.

7. Employment of apprentices at rates of compensation below the
minimum provided herein shall be permitted where they are appren-
ticed to an employer under any apprentice system established and
maintained by such employer. No employer shall employ appren-
tices in number exceeding 10% of the total number of skilled crafts-
men of their special class employed by such employer except that each
employer shall be entitled to employ at least one such employee for
each special class.

1. On and after the effective date, no person under 18 years of
age shall be employed, in the Copper Industry except in clerical,
office, sales, service, technical and engineering departments, and no
person under 16 years of age shall be employed in any capacity.

2. (a) 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 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 refrain
from joining, organizing, or assisting 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.

3. No employer shall reclassify employees or duties of occupations
performed or engage in any other subterfuge for the purpose of
defeating the purposes or provisions of the Act or of this Code.

4. No provision in this Code shall supersede any State or Federal
Law which imposes on employers more stringent requirements as to
age of employees, wages, hours of work, or as to safety, health, sanitary
or general working conditions, or insurance or fire protection, than
are imposed by this Code.

5. Every employer shall make reasonable provision for the safety
and health of his employees at the place and during the hours of their
employment. Standards of safety and health for each division of the
industry shall be submitted to the Administrator within six months
after approval of the Code.
6. All employers shall keep posted complete copies of the Labor
Provisions of this Code and all amendments thereto in conspicuous
places accessible to employees.

7. No employee, other than maintenance or supervisory men, or
those necessary to protect property, shall be required, as a condition
of employment, to live in any house owned by or rented from his
employer. No employee shall be required, as a condition of employ-
ment, to trade at any store owned or specified by an employer.

1. UMembership.-A Code Authority to supervise the administra-
tion and enforcement of the Code is hereby created which shall
consist of eleven members to be selected in the following manner:


(a) Three members, one to be appointed by each of the three
largest primary producers as shown by figures filed with
the Administrator by the United States Copper Asso-
ciation, January 1934_----------------------------- 3
(b) Two members, to be elected by all other primary pro-
ducers_----------------------------------------- 2
(c) Two members, to be elected by custom smelters, refiners
and other producers of secondary copper subject to the
provisions of this Code ---------------------------- 2
(d) Two members, only one of whom may be connected with
a member of the Industry; such members to be ap-
pointed upon the written designation of six members of
group (a), (b), and (c) of which six, two shall be the
members elected under (c)-------------------------- 2
(e) One member, to be appointed by the Supervisory Agency
of the Wire and Cable Subdivision of the Electrical Man-
ufacturing Industry------------------------- ------ 1
(f) One member, to be appointed by the Code Authority of the
Copper and Brass Mill Products Industry------------ 1
Total---------------------------------------- 11
The Administrator, in his discretion, may appoint not to exceed
three members without vote, and without compensation from the
Industry to cooperate with the Code Authority in the Administration
of the Code, and to serve for such term as the Administrator may de-
termine. Any member of the Industry may appoint a representative
to attend meetings of the Code Authority but such representative shall
have no vote.
Save as otherwise provided in this Code all action taken by the Code
Authority shall be effective only upon the affirmative vote of six (6)
voting members of the Code Authority.
2. Manner of Election or Appointment of AMembers.-Voting mem-
bers of the Code Authority shall be appointed by each unit having
the right of appointment or by each group in the manner specified, or
if not specified, then as may be determined by the group, or failing of
such determination, by some equitable method of selection approved
by the Administrator, and shall hold office for a term of one year, or
such shorter period as the appointing group may designate, or until
their successors are elected and qualified.
Each unit or group may fill any vacancy at the expiration of terms
of office or when vacancies otherwise occur. Each unit or group may
name one or more alternates for each of its members of the Code
Authority to act in the absence of any such member.
With respect to representation on the Code Authority each com-
pany, together with its owned and/or controlled subsidiaries or affili-
ates, shall be treated as one entity, and only one representative of
such entity shall be eligible to membership on the Code Authority at
one time.
In order that the Code Authority shall at all times be truly repre-
sentative of the Industry and in other respects comply with the pro-
visions of the Act, the Administrator may prescribe 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 Authority.
3. General Prorisions.-(a) Nothing herein contained shall be
deemed to constitute the members or the Industry partners for any
purpose. No agreement hereto or acquiescence in the provisions


hereof shall be deemed the agreement with or acquiescence in any
statement of fact herein by any member of the industry, and in par-
ticilar as regards the respective productive capacities or production
quotas of the primary producers. Accordingly, any member of the
Industry may agree to the provisions hereof or acquiesce herein on
the understanding that the Code is and shall continue an emergency
measure, and that for all purposes the provisions hereof shall expire
on June 16, 1935, and further that any such member shall not be
prejudiced in any manner or for any purpose after the expiration of
the term of this Code by reason of any agreement hereto or acquies-
cence in the provisions hereof.
(b) Nothing herein contained shall constitute the members of the
Code Authority or their alternates, partners for any purpose. Nor
shall any member of the Code Authority be liable in any manner to
anyone for any act of any other member, officer, agent or employee
of the Code Authority, nor shall any member of the Code Authority,
exercising reasonable diligence in the conduct of his duties hereunder,
be liable to anyone for any action or omission to act under this Code,
except for his own willful misfeasance or nonfeasance.
4. Organization.-The Code Authority shall select a Chairman,
Secretary, Treasurer, Sales Clearing Agent, and such other officers as
it may deem necessary. It may appoint committees, the members of
which need not be members of the Code Authority, to perform admin-
istrative duties hereunder; provided, however, that it shall not dele-
gate to any such committee any specific authority and power granted
to it under the provisions of the Code.
5. Powers and Duties.-The Code Authority, subject to such general
rules and regulations as may be issued by the Administrator shall have
the following powers and duties in addition to those otherwise
expressly conferred under the provisions of this Code, the exercise of
which shall be reported to the Administrator. Any action taken by
the Code Authority shall be subject to the right of the Administrator
to disapprove the same, after review and such hearing as he may
prescribe, if he shall determine that such action is unfair or unjust
to any member of the industry, or contrary to the public interest.
Pending such hearing and after 24-hours' notice to the Code Authority
the Administrator may require that such action be suspended for a
reasonable period not to exceed 30 days to afford an opportunity for
further investigation of the merits of such action and further consider-
ation thereof by the Code Authority pending final action, which final
action shall be taken only upon approval by the Administrator;
(a) To insure the execution of the provisions of this Code and pro-
vide for compliance by the Industry with the provisions thereof;
(b) To adopt by-laws and rules and regulations for its procedure
and for the administration and enforcement of the Code.
(c) To receive complaints of violations of the Code and disputes
arising thereunder. If any member of the Industry or other interested
person shall request the Code Authority to take action on a matter,
the Code Authority shall within ten days after such request has been
received by it advise such member or other interested person of the
action taken thereon. Any member or other interested person shall
have the right to present any question to the Administrator for his
action; provided that the Code Authority shall first have had oppor-
tunity to act thereon;


(d) To make investigation of any reported or alleged violation of
the Code. When formal complaint is made to the Code Authority
by any member of the industry or the Code Authority shall learn of
any alleged violation, the Code Authority shall designate an impartial
agency other than the Association to make such investigation as is
necessary to determine the facts of the alleged violation, and to that
end such agency shall be authorized to conduct such examination or
audit into the pertinent data and records as may be necessary. Such
agency shall report to the Code Authority its findings as to whether or
not the alleged violation of the Code was actually committed. If
such agency shall report that the violation did not occur, the facts
ascertained in the investigation shall be confidential to the investigat-
ing agency and shall not be disclosed by it. If such agency shall
report that the violation did occur and if a satisfactory adjustment
thereof cannot be reached by the Code Authority, the findings of the
investigating agency, together with its data and records in the case,
shall be reported to the Administrator. The expense of the investiga-
tion, examination or audit shall, when made on the complaint of any
member, be borne by such member if the complaint was not justified.
In the event that the complaint was justified, such expense shall be
borne by the member or members against whom the complaint was
(e) To obtain from members of the Industry such information
and reports as are required for the administration of the Code and to
provide for submission by members of such information and reports
as the Administrator may deem necessary for the purposes recited in
Section 3 (a) of the Act, which information, and reports shall be sub-
mitted by members to such administrative and/or government
agencies as the Administrator may designate; provided that nothing
in this Code shall relieve any member of the industry of any existing
obligations to furnish reports to any government agency. No indi-
vidual reports shall be disclosed to any other member of the industry
or any other party except to such governmental agencies as may be
directed by the Administrator.
(f) To obtain from the members of the Industry such other reports
as may be deemed necessary to enable the Code Authority to be
informed as to the observance or non-observance of the Code, and as
to whether the Industry is taking proper steps to effectuate, in all
respects, the declared policy of the National Industrial Recovery
Act. Such reports shall be on prescribed forms covering employment
and production statistics and such other information as the Code
Authority may request. All data, reports and statistics from the
individual members of the Industry furnished under the provisions
of this subsection (f) except as otherwise provided herein, shall be
confidential and shall be filed with the Secretary for compilation.
The Secretary shall submit such data and statistics to the Code
Authority and to members of the Industry reporting, in the form only
of combined totals for the Industry unless otherwise permitted by
the unanimous consent of the members reporting. If any reports
received by the Secretary indicate a violation of any of the provisions
of this Code by any member of the Industry, the Secretary shall
report such facts to the Code Authority.
I See paragraph 2 (2) (4) of order approving this Code.


(g) To use such association or other agency as it deems proper to
carry out any of its activities prescribed by the Code, provided,
however, that nothing herein shall relieve the Code Authority of its
duties or responsibilities under the Code and that such association
or agency shall at all times be subject to and comply with the provi-
sions hereof. Any Association and any other agency directly or
indirectly participating in the selection or activities of the Code
Authority shall (1) impose no inequitable restrictions on membership,
and (2) submit to the Administrator true copies of its Articles of
Association, By-Laws, Regulations, and any amendments when
made thereto, together with such other information as to member-
ship, organization and activities as the Administrator may deem
necessary to effectuate the purposes of the Act.
(h) To make recommendations to the Administrator for the co-
ordination of the administration of this Code with such Codes, if
any, as may be related to the inquiry, and to cooperate with the Code
Authorities of related industries to carry out the provisions of this
(i) The Code Authority may, by means of audit or otherwise, check
the accuracy of all reports made by and/or to its Sales Clearing Agent
and by members and provide for such audit of the same and of the
books and accounts as may be deemed necessary from time to time.
The report as to such examination shall not disclose the facts thereof
unless it shall find that the reports which were investigated were not
accurate, and in such case the report shall indicate merely the partic-
ulars in which the reports were inaccurate. Otherwise, the informa-
tion obtained by the investigating agency in making the examina-
tion and audit shall be confidential.
(j) Whenever any action may be taken by the Code Authority on
a question affecting only a single member of the Industry or a single
group of members of the Industry, the single member or group of
members whom the decision of the Code Authority shall affect may
request an arbitration. Upon such request the question upon which
such action was taken shall be resubmitted by the Code Authority
for decision to a committee of three arbitrators, one of whom shall be
selected by the Code Authority, one by the member or group of mem-
bers affected, and the third shall be chosen by the first two. In the
event the first two arbitrators, appointed as hereinbefore provided
cannot agree upon a third arbitrator, said arbitrator shall be selected
by the Administrator. The decision of any two of three arbitrators
when rendered shall be entered with the same effect as the final
decision of the Code Authority.
6. Participation and Expense.-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. Such reasonable share of the expenses of adminis-
tration shall be assessed against each such member of the Industry
by the Code Authority on such equitable basis as may be deemed
proper by the Code Authority, with the concurrence of at least one
member of each of the first three groups specified in Section 1 of
this Article.


The existence in the United States of large surplus stocks of copper
has created a condition under which the selling price of the product
of this industry has been unduly depressed. Further unrestricted
overproduction can only result in further accumulations and an
aggravation of the foregoing condition.
Accordingly, for the purpose of conserving a natural resource of
national importance; of cooperating in the highest possible degree in
the National Recovery program, particularly with reference to em-
ployment; and of bringing about a sound and stable basis for the
industry as a whole, the members of the industry, the holders of
stocks of copper and others interested, may enter into voluntary
agreements for the attainment of any of the following purposes, sub-
ject in each case to the approval of the Administrator and the Code
Authority, which agreements shall only be binding on members
parties thereto:
1. To regulate copper production in the United States with due
regard to consumptive demand, the liquidating of surplus stocks and
the necessity of maintaining employment in the industry at the highest
possible level.
2. To withhold, in whole or in part, surplus stocks from the market
during the present emergency period.
3. To regulate, curtail, and allot the volume of current production
in such manner as shall be agreed upon by the parties participating in
such regulation, curtailment, or allotment.
4. To provide a plan involving a minimum sales price with due
regard to cost of production and in connection therewith a plan for the
regulation and allocation of sales; and
5. To take such other steps by negotiation and mutual agreement
as may be deemed necessary for the accomplishment of the purposes
hereinbefore set forth.

The following acts as described shall constitute unfair methods of
competition by members of the Industry in respect of copper sold
and/or delivered for consumption in the United States:
1. The sales or exchange of copper in refinery shapes at premiums
or discounts other than those established and recognized in the trade,
and in accordance with statements filed with the Code Authority;
2. The sale, transfer, or exchange of copper in a manner planned
and effective to impair or defeat the purposes of this Code;
3. The alloying of copper in any manner for the purpose of evading
the provisions of this Code;
4. A failure within 30 calendar days after receipt at plant to price
custom copper, by-product and secondary copper material. Copper-
bearing material received at plant prior to the effective date of this
Code shall be exempt. from this provision;
5. The sale of copper to persons other than consumers of copper
and dealers, provided, however, that there shall be no prohibition
against exchanges of copper customarily heretofore made between
producers and/or custom smelters;
I This Article deleted and new Article substituted-see paragraph 2 (1) of order approving this Code.


6. Sales of copper made for delivery further ahead than the three
months following the month of sale.
This Code and the provisions thereof shall be the standard of fair
competition for the copper industry in the United States, and every
violation of the standard established in the Code shall be deemed an
unfair method of competition and shall subject the party guilty of any
such violation to penalties as provided in Title I of the Act.3

1. If any member of the industry is also a member of any other
industry, provisions of this Code shall apply only to that portion of
its business which is a part of the Copper Industry.
2. Where there is any question as to whether copper is the major
production from the operations which do or which might produce
lead, zinc, gold, silver or other materials, then in any and every such
event the question as to which Code of Fair Competition shall govern
such plant or mine operations of any such member of this industry
shall be referred to a Coordination Committee. This Coordination
Committee shall be composed of two members to be appointed by
each of the Code Authorities for such industries as may be involved
in each particular question. In the event such Committee, is unable
to reach a majority conclusion, then either the Committee shall elect
an additional impartial member or upon their failure so to agree on
such additional impartial member, the Administrator then may appoint
such additional impartial member. Any member of the Industry,
the operations of which may raise such a question, shall file a state-
ment of fact with the Code Authority for its industry, and such state-
ment shall contain a statement of its preference as to the Code it
would prefer to have such operations be governed by, and such prefer-
ence shall be granted unless such Coordination Committee shall find
that the granting thereof would be unfair in view of the rights of
others or that it would have a tendency contrary to the effectuation
of the policies of the Act. Any action taken by the Coordinating
Committee shall be referred to the Administrator and shall be subject
to his disapproval.4
3. Within ten days after the effective date of this Code any member
of this industry may file such statement of fact and preference as to
being governed by any of such other Codes which may at that time
be in effect. Thereafter upon any such other Code becoming effective
such statement may then be filed; provided, however, that until any
such statement is filed and decision is made thereon by such Coordi-
nation Committee, such operation of such member of this industry
shall be governed by the provisions of this Code.
4. From time to time thereafter if conditions change members of
this industry shall be entitled to file such statements of fact and
preference as to change of portion of their operations from the juris-
diction of one Code to the jurisdiction of another, and in such event
they shall be handled in the same manner as provided for above.
5. The foregoing Sections 1 to 4 inclusive of this Article IX, shall
not be effective until Codes of Fair Competition for the lead and zinc
industries, containing an article substantially the same as this Article
Addenda to this Article added-see paragraph 2 (2) of order approving this Code.
4 ee paragraph 2 (2) (J) of order approving this Code.


IX, have been approved and are in effect and certified copies of such
approved codes have been filed with the Code Authority for this
1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provisions
of subsection (b) of Section 10 of the Act, from time to time to cancel
or modify any order, approval, license, rule, or regulation issued under
Title I of said Act.
2. The provisions of Articles I to VI, inclusive, and Articles VIII
and IX of this Code, excepting those required to be included therein
by the Act, may be amended as provided in Sectoin 3 hereof in such
manner as may be indicated by the needs of the public, by changes in
circumstances, or by experience; but no amendment may be made
under the provisions of Sections 2 and 3 of this Article X in respect of
the subject matter of Article VII.
3. Any such amendment referred to in Section 2 hereof may be pro-
posed by any member of the Industry either to the Code Authority
or to the Administrator. Any such proposed amendment shall be
referred to the Code Authority who shall give members of the Indus-
try an opportunity to be heard thereon. After any such amendment
has been recommended by the Code Authority and upon approval
by the Administrator, after such hearings as he may deem necessary,
it shall become effective as a part of this Code.

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.

This Code shall become effective on the 5th calendar day after its
approval by the President.
The term of this Code shall be from the effective date to June 16
1935, subject to the provisions hereof and of the National Industrial
Recovery Act, as effective June 16, 1933.
Approved Code No. 401.
Registry No. 1209-1-02.

Ill IIll IIIIIIi I8 I ll II H Ii t II I I II III 11111
3 1262 08582 8357

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