Code of fair competition for the steam heating equipment industry


Material Information

Code of fair competition for the steam heating equipment industry as approved on February 12, 1934
Portion of title:
Steam heating equipment industry
Physical Description:
p. 455-468 : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Steam-heating -- Equipment and supplies   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1129-1-05."
General Note:
"Approved Code No. 279."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
oclc - 63655287
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Approved Code No. 279 Registry No. 1129-1-05







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For Eale by the Superintendent of Dccuments, Washington, D.C. Price 5 cents

Approved Code No. 279

Registry No. 1129-1-05

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
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Approved Code No. 279



As Approved on February 12, 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 Steam Heating Equipment 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.
Admhinist'ator for Industrh'al Recovery.
Approval recommended:
Di vision Administrator.
February 12, 1934.
3P5150-376-63--34 (455)


The i'Mhict House.
SIR: This is a report on the Code df Fair Competition for the
Steam Heating Equipment Industry as revised after a public hear-
ing conducted in Washington, D.C., on January 23, 1934, in accord-
ance with the provisions of the National Industrial Recovery Act.

All, except office employees, shall be paid a minimum rate of forty
cents per hour. Apprentices shall not exceed in number five percent
of the total number of wage earners. Office employees shall be paid
a minimum wage of fifteen dollars per week. Office boys and girls
shall be paid not less than eighty percent of this rate and shall not
exceed in number live percent of an employer's total number of office
Handicapped workers may be employed at wages below the mini-
mum. Female employees performing substantially the same work
as male employees shall receive equal pay. Adjustment of wage
rates above the minimum will be made within sixty days after the
approval of this Code.
Forty hours shall be the maximum number of working hours for
any week and eight hours for any day except during any six weeks
in a six months period forty-eight hours in one week is permissible.
Those engaged in executive, managerial and supervisory capacities
(except foremen) who regularly receive thirty-five dollars or more
per week, outside salesmen and service men are excepted from this
provision. Employees engaged solely at maintenance and repair
work, truckmen, firemen and engineers may work nine hours a day
or forty-four hours a week except during any six weeks in a six
months period forty-eight hours in one week is permissible. Watch-
men shall not be employed in excess of fifty-six hours in any one
week. Office employees, except those receiving thirty-five dollars per
week or more shall not be employed in excess of nine hours per day
or forty hours per week. All employees, except office employees,
shall be paid at the rate of time and one-half for time worked in
excess of forty hours per week or eight hours per day.

The Industry to a large extent is controlled by the activities of the
construction industry. Annual sales of the Industry have decreased
eighty percent from 1929 to 1933. The Research and Planning Divi-
sion states in their report thlit the Industry employed 4,716 wage
earners in 1929. From 1929 to the first quarter of 1933, factory em-
ployment decreased fifty-five percent. Because of increased business


and the President's Reemployment Agreement the number of wage
earners increased forty-one percent from the first quarter of 1933 to
October 15, 1933.
Data furnished the Division of Research and Planning would in-
dicate that reemployment. will be affected by the maximum hours as
provided in this Code. Employment will increase further as the
result of an increase in production. The minimum wage rate estab-
lished in this Code should increase the wages of approximately
thirty-two percent of the factory employees, in this Industry, and,
further, equitable readjustment of wages is provided for all em-
ployees receiving more than the minimum wage rate. Trade prac-
tice provisions of the Code are expected to remedy the unfair com-
petition that has existed in the past within the Industry.

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 manage-
ment under adequate governmental sanctions and supervision, by
eliminating unfair competitive practices, by promoting the fullest
possible utilization of the present productive capacity of industries,
by avoiding undue restriction of production (except as may be tem-
porarily required), by increasing the consumption of industrial and
agricultural products.. through increasing purchasing power, by re-
ducing and relieving unemployment, by improving -,tandards of
labor, and by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
p)lovees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the
pertinent l)provisions of said Title of said Act, including without
limitation Subsection (a) of Section 3, Subsection (a) of Section 7,
and Subsection (b) of Section 10 thereof; and that the applicant
association is an industrial association truly representative of the
aforesaid 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.
FEBRUARY 12, 1934. Admint;.'tirator.


1. 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 Steam Heating Equipment Industry, and
shall be the standard of fair competition for such Industry, and shall
be binding upon every member thereof.

1. The term Steam Heating Equipment Industry as used herein
means and includes the manufacture and distributing under their
own trade names of all equipment for low pressure steam heating,
Radiator Traps, Packless Radiator Supply Valves (all types),
Radiator Supply Valve Orifices, Float and Thermostatic Traps,
Boiler Return Traps, Air Eliminators (Vapor Type) Strainers for
Protection of Traps and Valves, Lift. Fittings, Vapor Damper
Regulators and other products which may come within the general
classification of low pressure steam heating equipment.
2. President means the President of the United States of
3. "Association means the Steam Heating Equipment Manufac-
turers Association, a trade association.
4. The terms "Act", and "Administrator" as used herein shall
mean respectively Title I of the National Industrial Recovery Act,
and the Administrator for Industrial Recovery.
5. The term Employee as used herein includes anyone engaged
in the Industry in any capacity receiving compensation for his
services, irrespective of the nature or method of payment of such
6. The term Employer as used herein includes anyone by whom
any such employee is compensated or employed.
7. Effective Date means the second Monday after this Code is
duly approved by the President of the United States.
8. Member of the Industry or Member means any individual,
partnership, association, corporation or other form of enterprise
engaged in the Industry as above defined, either as an employer or
on his or its own behalf.

SECTION 1. No employee, excluding accounting, clerical and office
employees, shall be employed in excess of forty (40) hours in one
week, or eight (8) hours in any twenty-four (24) hour period, except


that during any six (6) weeks in any six (6) months period em-
ployees may be employed not. more than forty-eight (48) hours per
week, providing one and one-half times the normal rate of pay shall
be paid for hours worked in excess of eight (8) hours per day and
forty (40) hours per week. The foregoing limitations shall not
apply to:
(a) Those engaged in executive, managerial and -ipervisory
capacities (except foremen) who regularly receive thirty-five (35)
dollars or more per week.
(b) Outside sales and service men.
(c) Employees engaged solely at maintenance and repair work,
truckmen, firemen and engineers, who may be permitted to work
not more than nine (9) hours in any one day, or forty-four (44)
hours in any one week. These employees may also be permitted to
work forty-eight. (48) hours per week during any six (6) weeks in
and six (6) months period. One and one-half times the normal
rate of pay shall be paid for hours worked in excess of eight (8) hours
per day and forty (40) hours per week.
(d) Watchmen, who may be employed not more than fifty-six
(56) hours in any one (1) week, except watchmen in closed plants
to whom this limitation shall not apply.
(e) Cases of emergency such as the production of equipment or
repairs for breakdown service, or where the restrition of hours of
skilled workers would unavoidably reduce production or limit the
work available to other workers. One and one-half (11/2) times the
normal rate of pay shall be paid for hours worked in excess of eight
(8) hours per day and forty (40) hours per week.
SECTION 2. No accounting, clerical or office employee shall be
employed in excess of forty (40) hours a week or' nine (9) hour., per
day. Eight (8) hours shall constitute a normal working day.
SECTION 3. No employer shall knowingly permit any employee to
work for any time which, when totaled with that already performed
with another employer or employers exceed., the maximini permitted
SECTION 1. No employee shall be paid at less than the rate of forty
(40) cents per hour, except:
(a) Accounting, clerical and office employees may be paid at not
less than $15.00 per week.
(b) Office boys and office girls may be paid at not less than eighty
(80) per cent of the above provided minimum wage for accounting,
clerical and office employees, provided that the total number of such
office boys and girls receiving less than such minimum wage shall not
exceed, in any calendar month more than five (5) per cent of the
total office employees of the employer, except that any employer may
employ at least two (2) such persons as above provided.
(c) Nothing in this Article IV shall apply to or affect a bona fide
apprentice employee( under a system or course of training which,
when completed, will make the apprentice a skilled mechanic. At
no time shall new apprentices be admitted to apprenticeship by any
employer when such action will bring their total number to more
than five (5) per cent of the total number of factory employees of
such employer.


SECTION 2. This Article establishes a minimum rate of pay which
shall apply, irrespective of whether an employee is actually com-
pensated on a time rate, piece-work, or other basis.
SECTION 3. Equitable adjustment of compensation of employees
receiving more than the minimum rates of pay herein prescribed
shall be made by all employers who have not heretofore made such
adjustments, and all employers shall within sixty (60) days after
approval of `his Code, report. in full to the Code Authority con-
cerning such adjustments whether made prior to or subsequent to
such approval, provided, however, that in no event shall hourly rates
of pay be reduced.
SECTION 4. Female employees performing substantially the same
work as male employees shall receive the same rate of pay as male
SECTION 5. A person whose earning capacity is limited because
of age or physical or other handicaps may be employed on light
work at a wage below the minimum established 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. Each employer shall maintain on file with the
Code Authority a list of all such persons employed by him.
SECTION 6. Wages shall be exempt from any payments for pen-
sions, insurance, or sick benefits other than those voluntarily paid
by the wage earners, or required by State laws. Wages ,hall be paid
at least at the end of every two week period, and salaries at least
at the end of every month. No employer shall withhold wages.
SECTION 7. The employer or his agent shall accept no rebates
directly or indirectly on such wages nor give anything of value
or extend favors to any person for the purpose of influencing rates
of wages or the working conditions of his employees.

SECTION 1. No person under sixteen (16) years of age shall be
employed in the Industry. No person under eighteen (18) years of
age shall be employed at operations or occupations which are haz-
ardous( in nature or dangerous to health. The Code Authority shall
submit to the Administrator within ninety (90) days after the effec-
tive date of this Code a list of s-uch operations or occupations. In
any State an employer shall be deemed to have complied with this
provision as to age if he -hall have on file a certificate or permit duly
signed Iby the authority in any State empowered to issue employ-
ment or age certificates or permits showing that the employee is of
the required age.
SECTION 2. In compliance with Section 7 (a) of the Act it is
provided that:
(a) Employees shall have the right to organize and bargain col-
lectively, through representatives of their own choosing, and shall be
free from the interference, restraint, or coercion of 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 re-
quired as a condition of employment to join any company union or
to refrain from joining, organizing, or assisting a labor organization
of his own choosing.
(c) Employers shall comply with the maxiinuum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President.
SECTION 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 provi-ions of the Act or of this
SECTION 4. Every employer shall make reasonable provis-ions for
the. safety and health of his employees at the place and during the
hours of their employment.
SECTION 5. No provision in this Code shall supersede any State
or Federal law which imposes more stringent requirements on em-
ployers as to age of employees, wages, hours of work, or as to safety,
sanitary, or general working conditions, or insurance, or fire protec-
tion, than are imposed by this Code.
SECTION 6. All employers shall post. complete copies of the labor
provisions of this Code in conspicuous places accessible to employees.
SECTION 7. No employee shall be permitted to work more than six
(6) days in any seven (7) day period.
SECTION 1. To further effectuate the policies of the Act, a Code
Authority is hereby constituted to cooperate with the Administrator
in the administration of this Code.
SECTION 2. The Code Authority shall consist of the members from
time to time of the Board of Directors of the Association, provided
for in the by-laws of the Association, together with a member se-
lected at large from the Industry. In addition to membership as
above provided, there may be not more than three (3) members,
without vote and without expense to the Industry, to be appointed
by the Administrator, to serve for such term or terms as lie may
specify. No two members of the Code Authority shall be affiliated
with any single member of the Industry.
SECTION. 3. The Association is hereby designated as the agency to
conduct an election of the Member at large of the Code Authority
by members of the Industry who are not members of the Association,
within thirty (30) days. after the effective date of this Code, and
any subsequent elections for the succesors of such Member at large.
Such member shall be elected to serve for a term of one (1) years,
or until his successor is elected at the next annual meeting of the
members of the Industry. In the event of the position of Member
at large on the Code Authority becomes vacant, a special meeting
shall be called for an election to fill the vacancy. Notice of the time
and place of all elections shall be sent by registered mail, at least
ten (10) days in advance, of any election, to all member. of the
Industry who are not members of the Association and who are regis-
tered with the Secretary of the Association, and voting at such
election may be by person, by proxy, or by letter ballot. Each


member of the Industry who is not a member of the Association shall
have one vote. A plurality of the number of votes cast shall be
necessary for election.
SECTION 4. The Code Authority shall have the following further
powers and duties to the extent permitted by the Act, the exercise
of which shall be reported to the Administrator.
(a) To insure the execution of the provisions of this Code and
provide for the compliance of the Industry with the provisoins of
the Act.
(b) To adopt by-laws and rules and regulations for its procedure
and for the administration and for facilitating the enforcement of
the Code.
(c) To appoint committees to carry out its duties such as the fol-
lowing: Administration, Compliances, Finance, Industrial Relations,
Trade Relations, Subdivisional, and such other committees as may
be required.
(d) To 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 the 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 directed by the Administrator.
(e) To establish, if found desirable, classifications, dimensional
standards, and quality and,'or performance specifications for prod-
ucts of the Industry.
(f) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Authority
of its duties or responsibilities under this Code and that such trade
associations and agencies shall at all times be subject to and comply
with the provisions hereof.
(g) To make recommendations to the Administrator for the co-
ordination of the administration of this Code with such other codes,
if any, as may be related to the Industry.
(h) To secure from members of tile Industry assenting to the Code
an equitable and proportionate payment of the reasonable expenses
of maintaining the Code Authority and its activities.
(i) To cooperate with the Administrator in regulating the use
of any N.R.A. insignia solely by those members of the Industry who
have assented to, and are complying with, this Code.
(j) To recommend to the Administrator further fair trade prac-
tice provisions to govern members of the Industry in their relations
with each other or with other industries and to recommend to the
Administrator measures for industrial planning, including Stabiliza-
tion of Employment, Uniform Cost of Accounting, Industry Mer-
chandising Plans. System of Exchange of Credit Information,, In-
equalities Affecting the Stability of the Industry, which recommenda-
tions after such notice and hearing as the Administrator may specify
shall become effective as a part of this Code upon approval by the
Administrator or the President with the same force and effect as if
originally made a part hereof.
SECTION 5. In order that the Code Authority shall at all times
be truly representative of the Industry and in other respects comply


with the provisions of the Act, the Administrator may provide such
hearings as he may deem proper; and thereafter if he shall find
the Code Authority is not' truly representative or does not in other
respects comply with the provisions of the Act, may require an ap-
propriate modification in the method of selection of the Code
Authority or any sub-Code Authority.
SECTION 6. The Association, or any other trade association, di-
rectly 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, togethe- with such other information as to
membership, organization, and activities as the Administrator may
deem necessary to effectuate the purposes of the Act.
SECTION 7. In addition to the information required to be submitted
to the Code Authority, all or any of the persons subject to such
code, agreement, or license furnish such statistical information as
the Administrator may deem necessary for the purposes recited in
Section 3 (a) of said Act to such Federal and State agencies as the
Administrator may designate; nor shall anything in any code,
agreement, or license relieve any per-on of any existing obligation
to furnish reports to Government agencies.
SECTION 8. Mlembrs of the Industry shall b> entitled to partici-
pate in and share the benefits of the activities of the Code Authority
and to participate in the selection of the members thereof, by a.ent-
ing to and complying with the requirements of this Code and sus-
-taining their reasonable share of the expenses of its administration.
The reasonable share of the expense of administration shall be
determined by the Code Authority, subject to review by the Admin-
istrator, on the basis of volume of business, and/or such other factors
as may be deemed equitable to be taken into ,onsieicration.
SEc'rTIN 9. Nothing contained in this Code -hall ,cii,titmite the
members of the Code Authority partners for any purpose. Nor shall
this Code be construed to render any member of the Code Authority
liable in any manner to anyone for any act of any other member,
officer, agent or employees of the Code Authority. Nor shall this
Code be construed to render any member of the Code Authority,
exercising reasonable diligence in the conduct of his duties hereunder
liable to anyone for any action or omission to act under this Code,
except for his own wilful misfea-ance or non-feasancl.

SECTION 1. Within seven (7) days after the effective date of this
Code each member of the Industry shall publish his, prices, terms
and conditions of sale on all products, with the prices, terms, and
conditions of sale affecting each such class of trade in the territory to
which such prices, terms, and conditions of sale apply. Coincident
with such publication, each member of the Industry shall file with
the Code Authority and the Code Authority shall immediately dis-
tribute to all members of the Industry a complete schedule of such
prices, terms and conditions of sale.


SECTION 2. In the event of any change by any member of the In-
dustry in any price, terms, or condition of sale, he shall file full and
complete copies of every change with the Code Authority, all such
changes shall become effective immediately upon such filing unless
and until the Code Authority shall designate periods within which
any such changes shall become effective, subject to the approval of
the Administrator, but in no case shall any such period exceed seven
(7) days after the date of the filing of the change. Copies of all
changes filed shall be immediately distributed by the Code Author-
ity to the members of the Industry. Information on such price
changes shall be available to the trade to which it. is applicable, on
the effective date of such change and each member shall coinciden-
tally file such information in the office designated by the Code Au-
thority for immediate distribution by the Code Authority to the
members of the Industry.
SECTION 3. In the event that any member of the Industry shall
not receive sufficient notice of the filing by any other member of any
change in prices or terms and conditions of sale as will enable the
member first mentioned to meet the said change on the effective date
thereof, such member may file with the Code Authority such changes
in his prices, terms and conditions of sale as may be required to
meet the change filed by the other member. Changes so filed shall
become effective on the same date as the effective date of the change
of the member first filing as aforesaid, or if such change has already
become effective, then the changes subsequently filed shall become
effective immediately.
SECTION 4. No member of the Industry shall sell, pay a rebate,
or allow a deduction at. any time to any person except in accord-
ance with his prices, terms, and conditions of sale then in effect and
published in the manner describe herein. Each member of the
Industry shall have the right, individually, to publish new prices,
terms, and conditions of sale, from time to time, as herein provided.

SECTION 1. Within seven (7) days after the effective date of this
Code, and until a merchandising plan shall be approved for the
Industry, each member of the Industry shall publish and file with
the Code Authority all qualifications which have been established
by him to determine the prices, terms or conditions of sale made
applicable by him to the different classes of his trade, for products
covered by this Code. He shall publish and file promptly with
the Code Authority any changes made by him in such qualifications
and any additional qualifications.
SECTION 2. Each member shall file at such times, in such manner
and at such places as may be designated by the Code Authority, the
names and locations of his trade who buy at less than his published
prices, grouped according to his own stated qualifications then in
effect. The names and locations so filed shall be available to custom-
ers and to the members of the Industry, provided that the name of
the manufacturer submitting any such names and locations shall
not be disclosed without his consent.


RULE 1. All sales of products covered by this Code shall be made
on the basis of a written quotation or bill of sale. Said quotation
or bill of sale shall be properly dated and shall be in accordance
with current prices and shall be so listed as to enable checking with
the current published price sheet. Outstanding quotations for spe-
cific projects may be protected for a period of thirty (30) days
beyond date of price change (or in the case of quotations made for
specified projects, having a definite date for public opening of hids,
protection may be given for sixty (60) days beyond bid opening)
provided a list (of such outstanding quotations. is filed with the Code
Authority within ten (10) days after price change.
RULE 2. All quotations shall 1be plainly marke.l Subject to change
without notice and void after sixty (60) days ", and all written
quotations shall so state, subject however to Rule 1.
RULE 3. It shall be deemed anr unfair method of cmitipi ttion to
sell or dispose of any product of this Industry on any lower basis
than that of the current published price sheet of each individual
manufacturer, less such di-counts as apply under these Rules, except
as provided in Rule 9.
RULE 4. It shall be deemed an unfair method of competition to
make a particular sale of products of the Industry contingent upon
the sale of any other goods or materials not covered by this Code,
provided that this rule shall not apply to patented heating systems
or other products not covered by this Code in which the products of
this Industry serve as component parts.
RuLE 5. It shall be deemed an unfair method of competition to
make or cause or permit, to be made or published any false, untrue,
or deceptive statement by way of advertisement or otherwise con-
cerning the i ateiials of construction uisei' in, the operating char-
acteristies of, or the quality, size, origin, or preparation of any prod-
uct. of the Industry, sold or offered for sale.
RULE 6. It shall be deemed an unfair method of competition to
mark or brand any product of the Industry in any maniier which
has the tendency to mi-lead or deceive customers or pro-pective cus-
tomers as to the substance, grade, quality, size, quantity, origin, or
preparation of any product of the Industry sold or offered for sale.
RULE 7. It shall be deemed an unfair trade practice to accept
blanket orders; therefore, all quotations and ,rders must specify an
itemized bill of goods. If, after a quotation has been made, the
specified requirements are changed, a new quotation shall be issued
based upon published prices prevailing at that time. If, after an
order has been accepted the requirements are changed, deductions
shall be credited on the basis of prices prevailing at the time order
was placed and additions shall be charged at the price prevailing at
the time additions are made.
RULE S. The Code Authority shall cause to be formulated an
accounting system and methods of cost finding and/or estimating
capable of use by all members of the Industry. After such system
and methods have been formulated, full details concerning them shall
be made available to all member.,. Thereafter all members shall


determine and/or estimate costs in accordance with the principles of
such methods.
RULE 9. No employer shall sell or exchange any product of the
Industry, manufactured by him, at a price, or upon terms and condi-
tions, which will result in the purchaser paying for the goods
received, less than the cost thereof to the seller, determined in accord-
ance with the system and methods of costing formulated under the
provisions of Rule 8 of this Article IX; provided, however, that
dropped lines, or seconds, or inventories which must be converted
into cash to meet emergency needs may be disposed of by any em-
ployer, at any price and on any terms and conditions, but only if
such employer, not less than two (2) weeks before such disposal, has
filed with Code Authority, a statement in writing, setting forth the
fact of, and reasons for, such proposed disposal, and Code Authority
has not, before the termination of such two (2) weeks' period, in
writing disapproved the proposed disposal; provided that no article
so approved for sale as obsolete, or for emergency needs shall be
reinstated without approval of the Code Authority, and provided,
further. that a member of the Industry selling or wishing to sell,
below his own cost to meet the competition of a competitor whose
costs are lower, may do so provided that lie has first so reported to
the Code Authority and in such report has cited the facts of the
competition which caused him to take such action.
RULE 10. Consignment of goods or delayed billing shall be deemed
an unfair trade practice, except under conditions approved by the
Code Authority.
RULE 11. It shall be deemed a violation of these Rules to enter
into or be a party to a written or verbal agreement or understanding
which serves directly or indirectly to affect the price or terms of
sale established by a current published price sheet, or which serves
in any way to defeat the spirit and purpose of these Rules. How-
ever, nothing herein contained shall be construed to prevent a mem-
ber of the Industry from cooperating with or instructing prospective
purchasers as to the proper application or installation of said
member's products.
RULE 12. All products covered by this Code shall be sold f.o.b.
factory, shipping point or the equivalent of freight may be allowed
or prepaid to freight station nearest to destination, or may be
RULE 13. No member of the Industry shall sell his product subject
to a guarantee more favorable to the purchaser than the following:
(a) No guarantee to furnish parts to replace defective material
or workmanship shall extend beyond one year from date of
(b) Replacements of defective material shall be f.o.b. manufac-
turer's factory subject to manufacturer's inspection.
(c) Foreign component part equipment guarantee shall be lim-
ited to the warranty of its manufacturer.
RULE 14. The members of the Industry hereby agree that it shall
constitute unfair trade practice for any member, or any employee
to furnish heating plans and/, or specifications to architects or others,
unless such plans or service shall be charged for as set forth by the
Code Authority, provided, that nothing in this rule shall limit the


right of members of this Industry to furnish catalogues, dimensioned
sketches, application drawings and the usual trade or advisory in-
formation concerning the products of the Industry and their appli-
cation and use to Architects, Engineers, Contractors, and others,
either for general or specific cases.
RULE 15. No member shall make any false or deceptive statements
to the detriment of a competitor.
S' 4RULE 16. No member shall accept, for the purpose or with the
effect of influencing a sale, securities, bonds, mortgages, stock or
other personal or real property at other than the current. market
value thereof as whole or part payment for services rendered or ma-
terial furnished.
RULE 17. No member shall induce or attempt. to induce the can-
cellation of any order for a specific installation given to any other
member by his or its customers.
RULE 18. No member shall make secret payment. or allowance to
customers of rebates, credits, refunds, commissions or unearned
discounts, whether in the form of money or otherwise.
RULE 19. No member shall sell equipment as listed in Section 1,
Article II without identifying trade mark or the name of the miinu-
facturer or distributor clearly marked therein.
RULE 20. No member of the Industry shall give, permit to be given,
or directly offer to give, anything of value for the purpose of in-
fluencing or rewarding the action of any employee, agent, or repre-
sentative of another in relation to the business of the employer of
such employee, the principal of such agent or the represented party,
without the knowledge of such employer, principal or party. Com-
mercial bribery provisions shall not be construed to prohibit free
and general distribution of articles commonly used for advertising
except. so far as :-uch articles are actually used for commercial
bribery as hereinabove defined.

SECTION 1. No provision of this Code shall be construed or applied
in such a manner as to-
(a) Promote or permit monopolies or monopolistic practices.
(b) Permit or encourage unfair competition.
(c) Elimimnate, oppress, or discriminate against small enterprises.
SECTION 2. This Code is hereby expressly made subject. to the right
of the President, pursuant to Section 10 (b) of Title I of the National
Industrial Recovery Act, from time to time to cancel or modify any
order, approval, license, rule or regulation issued under Title I of
said Act, specifically but without limitation to his right to cancel or
modify his order approving this Code, or any conditions imposed by
him upon such approval.
SECTION 3. This Code, except as to provisions required by the Act,
may be modified on the basis of experience or change in circum-
stances, such modifications to be based upon application to the Ad-
ministrator and such notice and hearing as he may specify, and to
become effective on approval of the Administrator. Any such appli-
cations may be made by the Code Authority.

l lHifllill i il l N U II I llI U l IIII II MUIIII I
468 3 1262 08584 1822

SECTION 4. If the Administrator shall determine that any action
of a Code Authority or any agency thereof may be unfair or unjust
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 days' notice to him of intention to
proceed with such action in its original or modified form.
This Code shall become effective on the second Monday after its
approval by the President of the United States.
Approved Code No. 279.
Registry No. 1129-1-05.

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