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NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON MARCH 23, 1934
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Approved Code No. 357
Registry No. 1103-09
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Approved Code No. 357
CODE OF FAIR COMPETITION
INDUSTRIAL FURNACE MANUFACTURING
As Approved on March 23, 1934
APPROVING CODE OF FAIR COMPETITION FOR THE INDUSTRIAL FURNACE
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Indus-
trial Recovery Act, approved June 16, 1933 for approval of a Code
of Fair Competition for the Industrial Furnace Manufacturing
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 President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise do hereby incorporate by reference said
annexed report and do find that said Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Competition be and it is hereby approved.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
W. A. HARRIMAN,
March 3, 1934.
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report on the Code of Fair Competition for the
Industrial Furnace Manufacturing Industry, as revised after a
Public Hearing held in Washington on the 19th day of January,
1934, in accordance with the provisions of the National Industrial
PROVISIONS AS TO HOURS AND WAGES
Employment is limited to 8 hours per day and 40 hours per week
and 6 days in any 7-day period. To provide for seasonal demands,
overtime is allowed to the extent of 8 hours per week for 6 weeks in
any 6 months' period.
Overtime in excess of 8 hours in any 24-hour period or in excess
of 40 hours in any 7-day period will be paid for at one and one-half
times the normal rate.
Minimum wages of 40 cents per hour are established except that
a minimum wage of 35 cents per hour shall be paid in Virginia,
North Carolina, South Carolina, Georgia, Florida, Tennessee, Ala-
bama, Mississippi, Louisiana, Texas, and Arkansas, and except office
and clerical employees who may be paid at the rate of $15.00 per
week and office boys at a rate of $12.00 per week. Females will be
paid the same rate as males for substantially the same work.
ECONOMIC EFFECT OF THE CODE
Before adoption of the reduced hourly schedule in 1933, this
Industry, comprising approximately 48 companies, employed about
270 persons. Through adoption of the 40 hour week as provided in
this Code, employment has increased to about 310 persons or an
increase of 11%.
The invested capital of this Industry is about $2,290,000. Sales
in 1932 totaled approximately $2,240,000, but sales for 1933 are esti-
mated at $3,250,000 or an increase of 40%.
The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the proceed-
ings in this matter:
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the 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 indus-
try 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 elimi-
nating unfair competitive pract ices, 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 agricul-
tural 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 employ-
ees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent 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 asso-
ciation 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
For these reasons, this Code has been approved by me.
HUGH S. JOHNSON,
MARCH 23, 1934.
CODE OF FAIR COMPETITION FOR THE INDUSTRIAL
FURNACE MANUFACTURING INDUSTRY
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 Industrial Furnace Manufacturing
Industry and shall be the standard of fair competition for such
Industry, and shall be binding upon every member thereof.
The following terms are used herein, with the meanings set forth
SECTION 1. Industry." The Industrial Furnace Manufacturing
Industry includes the design, manufacture, and sale, and/or instal-
lation, servicing and repairing by the manufacturer, of Industrial
Furnaces, Ovens, Accessories and Allied Equipment for Heating
Melting, Making, Refining, Heat Treating and/or the processing of
Metals and other materials by means of heat, excepting all elec-
trically heated products assembled in a manufacturer's plant and
shipped as complete units by such manufacturer.
SECTION 2. Employee." Anyone engaged in the Industry in any
capacity, receiving compensation for his services, irrespective of the
nature or method of payment of such compensation.
SECTION 3. Employer." Anyone by whom any such employee
is compensated or employed.
SECTION 4. Member of the Industry includes, but without limi-
tation any individual, partnership, association, corporation, or other
form of enterprise engaged in the industry, either as an employer or
on his or its own behalf.
SECTION 5. "Association." The Industrial Furnace Manufacturers
SECTION 6. President ", "Act ", and "Administrator." Respec-
tively the President of the United States of America, Title I of the
National Industrial Recovery Act, and the Administrator for In-
SECTION 1. No employee shall be permitted to work in excess of
forty (40) hours in any one (1) week or eight (8) hours in any
twenty-four (24) hour period, or six (6) days in any seven (7) days,
except as hereinafter provided.
SECTION 2. The maximum hours fixed in Section 1 shall not apply
during any period in which a concentrated demand on the industry
shall place an unusual and temporary burden upon its production
facilities. Such special period shall not exceed six (6) weeks in any
six (6) months, during which period overtime shall not exceed eight
(8) hours in any one week; provided, however, that in any such
special case at least one and one-half (11/2) times the employee's nor-
mal rate shall be paid for all hours worked in excess of eight (8)
hours per day or forty (40) hours per week. All such special cases
of overtime shall be reported to the Code Authority.
SECTION 3. There shall be a tolerance of ten (10) percent for all
employees engaged as stock or shipping clerks; provided that time
and one-half shall be paid for all hours worked in exce-s of eight
(8) hours per day or forty (40) hours per week.
SECroN 4. The limitations as to hours of labor shall not apply
to persons in a managerial, executive, technical, research, or super-
visory capacity who receive thirty-five ($35.00) dollars or more per
week, or to outside salesmen.
SECTION 5. The limitations as to hours of work shall not apply to
any employee on emergency maintenance or repair work involving
breakdowns or protection of life or property, but in any such special
case, at least one and one-half (112) times the normal rate shall be
paid for hours worked in excess of forty (40) hours per week or
eight (8) hours per day. All such cases of emergency overtime shall
be reported to the Code Authority.
S oTION 6. Office and clerical employees shall not be permitted to
work in excess of forty (40) hours per week or eight (8) hours per
day; provided, however, that any such employee may be permitted to
work not more than forty-eight (48) hours per week in not more than
six (6) weeks in any six (6) months' period and that one and one-half
(1) times the regular hourly ratebe paid for all time worked in
excess of forty (40) hours per week or eight (8) hours per day.
SECTION 7. Watchmen may be permitted to work not more than
fifty-six (56) hours in any one week; provided that they have one
day of rest in seven (7) days.
SECT-ON 8. No employee shall knowingly be permitted to work
for a total number of hours in excess of the number of hours pre-
scribed for each week and day, whether employed by one or more
SECTION 1. The minimum hourly wage that shall be paid any
employee shall be not less than at the rate of forty (40) cents
per hour, except as hereinafter provided.
(a) Employees in the following States shall be paid not less than
at the rate of thirty-five (35) cents per hour: Virginia, North Caro-
lina, South Carolina, Georgia, Florida, Tennessee, Alabama, Mis-
sissippi, Louisiana, Texas and Arkansas.
SECTION 2. These minimum wage rates shall apply to common
labor or unskilled labor. Other classes of labor shall be compen-
sated at rates above these minimum rates.
SECTION 3. All office employees shall be paid at the rate of not
less than fifteen ($15.00) dollars per week, except office boys and
girls, who shall be paid at a rate of not less than eighty (80)
percent of this rate; provided that the number of such office boys
and girls thus paid shall be limited to five (5) percent of the total
number of office employees, with a minimum of two (2) such
employees for each member of the industry.
SECTION 4. A person whose earning capacity is limited because
of age or phy,-ical or mental handicap may be employed on light
work at a wage below the minimum est(alll.hed by this Code if the
employer obtains from the State Authority designated by the
United States Department of Labor a certificate authorizing his
employment at such wages and for such hours as shall be stated
in the certificate. Such Authority shall be guided by the instruc-
tions of the United States Department of Labor in issuing certifi-
cates to such persons. Each employer shall file with the Code
Authority a list of all such persons employed by him.
SECTION 5. This Article establishes a minimum compensation
which shall apply, irrespective of whether an employee is actually
compensated on a time rate, piece-work, or other basis.
SECTION 6. Equitable adjustments in the rates of pay above the
minimum shall be made on the effective date of this Code by every
employer who has not made such adjustments under the National
Industrial Recovery Act. Withing thirty (30) days after the effec-
tive date of this Code, all such adjustments made under the Act
shall be reported to the Code Authority and to the Administrator
on request. In no case shall hourly or piece rates be reduced.
SECTION 7. Female employees performing substantially the same
work as male employees shall receive the same rate of pay as male
ARTICLE V-GENERAL LABOR PROVISIONS
SECTION 1. No person under sixteen (16) years of age shall be
employed in the Industry, nor anyone under eighteen (18) years of
age at operations or occupations hazardous in nature or dangerous
to health. In any State an employer shall be deemed to have com-
plied with this provision if he shall have on file a certificate or per-
mit duly issued by the authority in such State empowered to issue
employment or age certificates or permits, showing that the employee
is of the required age. Each member of the Industry shall submit
to the Code Authority within sixty (60) days after the effective date
of the Code, a list of such hazardous or dangerous occupations.
SECTION 2. Employees shall have the right to organize and bar-
gain collectively through representatives of their own choosing, and
shall be free from the interference, restraint, or coercion of employ-
ers of labor, or their agents, in the designation of such representa-
tives or in self-organization or in other concerted activities for the
purpose of collective bargaining or other mutual aid or protection.
SECTION 3. 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 organi-
zation of his own choosing.
SECTION 4. Employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment,
approved or prescribed by the President.
SECTION 5. No provision in this Code shall supersede any State
or Federal law which imposes on employers more stringent require-
ments 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.
SECTION 6. Employers shall not reclassify employees or duties of
occupations performed by employees or engage in any other subter-
fuge for the purpose of defeating the purposes or provisions of the
Act or of this Code.
SECTION 7. Every employer shall make reasonable provisions for
the safety and health of his employees at the places and during the
hours of their employment. Standards for safety and health shall
be'submitted by the Code Authority to the Administrator for ap-
proval within six (6) months after the effective date of this Code.
SECTION 8. Within ten (10) days of the effective date, each em-
ployer shall post and thereafter maintain, in conspicuous places ac-
cessible to employees full copies of this Code and any amendments
or modifications which may later be approved.
To further effectuate the policies of the Act, a Code Authority is
hereby constituted to co-operate with the Administrator in the ad-
ministration of this Code.
SECTION 1. Organization and Constitution of Code Authority.
(a) The Code Authority shall consist of five (5) individuals, to be
selected as hereinafter set forth. The Administrator, at his discre-
tion, may appoint one (1) to three (3) additional members (with-
out vote) to represent the Administrator or such groups or interests
as may be agreed upon.
Four (4) members of the Code Authority shall be elected by the
members of the Association and one (1) member shall be elected by
members of the Industry who are not members of the Association
and who agree to share in the expense of the administration of this
Code; said elections to be conducted in any fair manner approved
by the Administrator. In case the non-members of the Association
fail to elect a representative to serve on the Code Authority, its mem-
bership will be automatically reduced to four individuals.
(b) Each trade or industrial association directly or indirectly par-
ticipating 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 as-
sociation, by-laws, regulations, and any amendments when made
thereto, together with such other information as to membership, or-
ganization and activities as the Administrator may deem necessary
to effectuate the purposes of the Act.
(3) In order that the Code Authority shall at all times be truly
representative of the Industry and in other respects comply with
the provisions of the Act, the Administrator may provide such hear-
ings as he may deem proper; and thereafter if he shall find that the
Code Authority is not truly representative or does not in other re-
spects comply with the provisions of the Act, may require an ap-
propriate modification in the method of selection of the Code
SECTION 2. The Code Authority shall have the following duties
and' powers to the extent permitted by the Act:
(a) To cooperate with the Administrator in making investigations
as to the functioning and observance of any provisions of this Code,
at its own instance or on complaint by any party affected, under
such rules and regulations as may be prescribed by the Adminis-
(b) To prescribe uniform proposal forms, subject to the approval
of the Administrator.
(c) To consider proposals for amendments or modifications and
make recommendations thereon to the Administrator, which amend-
ments or modifications will become effective as a part of this Code
upon approval by the Administrator, after such notice and hearing
as he may specify.
(d) To adopt by-laws and rules and regulations for its procedure
and for the administration of the Code.
(e) Obtain from members of the Industry such information and
reports (sworn or unsworn as the Code Authority may specify)
as are required for the administration of this Code. No individual
information, statistics or reports shall be disclosed to any other
member of the Industry or any other party except to such govern-
mental agencies as may be designated by the Administrator.
SECTION 3. 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 as-
senting to and complying with the requirements of this Code and
sustaining their reasonable share of the expense of its administration.
(a) The'reasonable share of the expenses of administration shall
be determined by the Code Authority, subject to review by the Ad-
ministrator, on the basis of volume of business and/or such other
factors as may be deemed equitable to be taken into consideration.
SECTION 4. In addition to the information required to be sub-
mitted to the Code Authority and the Administrator, there shall
be furnished to government agencies such statistical information as
the Administrator may deem necessary for the purposes recited in
Section 3 (a) of the Act, provided that nothing herein shall relieve
anyone of any existing obligation to furnish reports to government
SECTION 5. If the Administrator shall determine that any action
of the Code Authority or any agency thereof may be unfair or un-
just or contrary to the public interest, the Administrator may require
that such action be suspended to afford an opportunity for investi-
gation of the merits of such action and further consideration by
such Code Authority or agency pending final action which shall not
be effective unless the Administrator approves or unless he shall fail
to disapprove after thirty (30) days' notice to him of intention to
proceed with such action in its original or modified form.
ARTICLE VII-TRADE PRACTICES
The following practices constitute unfair methods of competition
and are prohibited:
SECTION 1. Misreresentation or False or Misleading Advertis-
ing.-The making or causing or knowingly permitting to be made or
published any false, materially inaccurate or deceptive statement by
way of advertisement or otherwise, whether concerning the grade,
quality, quantity, substance, character, nature, origin, size, finish, or
preparation of any product of the Industry, or the credit terms,
values, policies, or services of any member of the Industry, or other-
wise, having the tendency or capacity to mislead or deceive cus-
tomers or prospective customers.
SECTION 2. Commercial Bribery.-The giving, permitting to be
given, or directly offering to give, anything of value for the pur-
pose of influencing or rewarding the action of any employee, agent,
or representative of another in relation to the business of the em-
ployer of such employee, the principal of such agent or the repre-
sented party, without. the knowledge of such employer, principal or
party. Commercial bribery provisions shall not be construed to pro-
hibit free and general distribution of articles commonly used for
advertising except so far as such articles are actually used for
commercial bribery as hereinabove defined.
SECTION 3. Interference with Contractual Relations.-Maliciously
inducing or attempting to induce the breach of an existing oral or
written contract between a competitor and his customer or source of
supply, or interfering with or obstructing the performance of any
such contractual duties or services.
SECTION 4. Defarmation.-The defamation of competitors by
falsely imputing to them dishonorable conduct, inability to perform
contracts, questionable credit standing, or by other false representa-
tions or by the false disparagement of the grade or quality of their
SECTION 5. Threats of Litigation.-The publishing or circulating
of threats of suits for infringement of patents or trade marks or
of any other legal proceedings not in good faith, with the tendency
or effect of harassing competitors or intimidating their customers.
SECTION 6. Selling Below Cost.-Selling or offering to sell prod-
ucts of the Industry at prices below his individual cost, except:
(a) To meet existing price competition of another whose costs
under the Code are lower, provided that competition is not instigated
directly or indirectly by the party desiring to meet such competition.
Cost of production shall be determined by a method of accounting
to be adopted by the Code Authority, subject to the approval of the
(b) Dropped lines, distress merchandise, seconds, or inventories,
which must be converted into cash to meet emergency needs, may be
disposed of by any member at any price and on any terms, and con-
ditions, provided, such member has at least ten days prior to the
date of such disposal filed with the Code Authority a notice in writ-
ing setting forth the reasons and necessity therefore and a list of such
items. No product of the industry which is to be built to order sub-
sequent to its sale shall be classified as coming under the foregoing
SECTION 7. Fw-nishin.g Drawings.-Furnishing the customer with
drawings, designs or equivalent confidential engineering information,
(a) Sales sketches, photographs, or equivalent. material' to illus-
trate the equipment offered may be furnished with quotations.
(b) Maintenance information furnished to purchasers of the prod-
ucts of the Industry may include illustrative sketches, phantom
drawings or the reasonable equivalent thereof, to permit identifica-
tion and installation of replacement parts, and to provide informa-
tion for the operation of the equipment.
(c) Drawings and/or engineering specifications may be sold as
such, providing the sale is made under a separate and individual
contract committing the seller to accept the price named without
reference to, or modification by, the sale of any other product or
SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of Section 10 (b) 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 and specifically, but without limitation,
to the right of the President to cancel or modify his approval of this
Code or any conditions imposed by him upon his approval thereof.
SECTION 2. This code, except as to provisions required by the Act,
may be modified or supplemented on the basis of experience or
changes in circumstances, such modification to be based upon appli-
cation to the Administrator and such notice and hearing as he shall
specify, and to become effective on approval of the Administrator.
No provision of this Code shall be so applied as to permit monopo-
lies or monopolistic practices, or to eliminate, oppress or discrimi-
nate against small enterprises.
ARTICLE X-PRICE INCREASE
Whereas the policy of the Act to increase real purchasing power
will be made impossible of consummation if prices of goods and ser-
vices increase as rapidly as wages, it is recognized that price increases
should be delayed and that, when made, the same should as far as
reasonably possible, be limited to actual increases in the seller's costs.
ARTICLE XI-EFFECTIVE DATE OF THIS CODE
This Code shall become effective on the eleventh (11th) day after
its approval by the President.
Approved Code No. 357.
Registry No. 1103-09.
UNIVERSITY OF FLORIDA
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