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ApprvedCodeNo.268 egitry o. 203---0
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON FEBRUARY 8, 1934
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1934
For sale by the Superintendent of Documents, Washington, D.C. Price 5 cents
Approved Code No. 268
Registry No. 1203-1-03
This publication is for sale by the Supirintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
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Approved Code No. 268
CODE OF FAIR COMPETITION
SECONDARY ALUMINUM INDUSTRY
As Approved on February 8, 1934
APPROVING CODE OF FAIR COMPETITION FOR THE SECONDARY ALUNMI-
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 Secondary Aluminum Indistry, and hear-
ings having been duly held thereon and the annexed report on
said Code, containing fininng- with respect, thereto, having been
made and directed to the President:
NOW, THEREFORE, on behalf of the Pre-ident of the United
States, I, Hugh S. Johnson, Adinini-trat'tr for Industirial Recovery,
pursuant to authority vested in me by Executive Order- of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate by reference said an-
nexed report and do find that said Code complies in all respects with
the pertinent provisions and will promote the policy and pllrposes 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
the provisions of Article VII, subparagraphs (a), (b), (c), (d),
insofar as they prescribe a waiting period between the filing with
the Code Authority and the effective dnte of revised price lists or
revised terms and conditions of sale be and they are hereby stayed
pending my further Order either within a period of sixty days
from the effective date of this Code or after the completion of a
study of open price associations now being conducted by the
National Recovery Administration.
Hrc;n S. JOINSoNx,
Admihistfrator for Inda..4 tria Recovery.
K. M. SIMPSON,
Division Admn ;';st rator.
February 8, 1934.
38810-- 376-f33-34 I\
REPORT TO THE PRESIDENT
The White House.
SIR: The original Code of Fair Competition for the Secondary
Aluminum Industry was submitted August 15, 1933 (revised Sep-
tember 28. 1933), by the Aluninumn Research Institute, an unincor-
porated membership society representing in excess of 80% of known
members of the Industry and volume of production. The hearing
was conducted in conjunction with the hearing for the Aluminum
Industry on Septeimber 28, 1933. The Code was revised during the
recess of this hearing and is submitted in its present form for
approval. Every per.,on who requested an appearance was properly
heard in accordance with statutory and regulatory requi rements.
The Indnstry is nationwide in character. The factories are located
with economic rlationshp to ,ources of aluminium scrap or alumi-
num bearing waste for refining and remelting and .subsequent sale
of industry products. In the main the plants are located east of the
Mississippi River (St. Louis included), together with a few facto-
ries on the Pacific Coast. The Industry supplies ingots of secondary
aluminum and aluminum alloys to the Steel Industry for use as a
dioxidizer, to the, Chemical Industry for the Non-Ferrous Foundries
for the production of aluminum or aluminum alloy castings, to the
Automotive Industry for the casting of crank cases, etc., to the
Building Industry for decorative trim, either rolled or cast, and to
the Household Industry for rolled or cast cooking utensils, household
The Ihdiustry came into being about 1910 with the increasing
amounts of aluminum scrap that were available. Through the
offices of the Aluminum Research Institute price-ses for refining of
aluminum scrap and alumin um-bearing waste have been developed
so that the Indusltry products for many applications are substan-
tially equivalent to virgin aluminum. The growth of the Industry
and its relationship to virgin aluminum is indicated in the following
table. Based upon these figures (compiled by the Department of
Commerce Bureau of Mines) the position of the Secondary Alumi-
num Industry is that the price of scrap aluminumij and alumiium-
bearing material may one day dominate the market price for the
virgin material, as is the case in other kindred metal industries. It
is interesting to note that the Aluminum Company of America rep-
resents less than 5% activity in the Secondary Alulminum Industry.
Year Primary Second- Percent- Year Primary Seo- Percent-
ary age ary age
Tons Tons Tons Tons
1931........ .------- 88,777 30,300 34 1923 --------------- 64,350 21,300 33
1930 .-----. ---..... 114,517 38,600 34 1922 ------------ -.. 36,960 16,200 44
1929 ------------- 112,500 48,400 43 1921 --------------- 26,950 8,900 33
1928--...------.-... 105, 000 47, 800 46 1920----------- 68,860 15, 500 22
1927--------------- 79,860 46,200 58 1919.----------- 89,760 18,691 20
1926 -------------- 72,380 44,200 61 1918 ...--------- 112,200 15,050 13
1925 --------------- 69,850 44,000 51 1917 ------------- 99,770 16,100 16
1924------ ---. ----- 75, 130 27,000 36 1916------------ (;9, 410 19,300 27
The major portion of the tonnage of secondary aluminum is pro-
duced in plants primarily engaged in the manullfa;cture of secondary
aluminuml and its alloys. However, a very considerable portion of
the total tonnage is produced in plaits that operate primarily for
the production of alloys of some other nonferrous metal base. In
such latter plants which produce a variety of alloys of different
base, employees usually work interclhaigeably. It is therefore prac-
tically impll ssible to state the precise number of employees that are
engaged in the production of secondary aluminum. In the original
Code that was offered by the Secondary Aluminum Industry, an
estimate of 500 employees was made and this figure is believed to be
approximately correct, as of August 1, 1933, although the total num-
ber would now exceed this figure because of the S.i-ubtantial increase
in employment which has been (caiIsed by this Industry's compliance
with the terms of the President's Reemploymilent. Agreteniit with
exceptions as approved by the N.R.A.
A careful survey, made in Septembni r, showed that the average
number of hours worked in the Secondary Aluminum Indu-try dur-
ing the week of July 23, 1983, was 55.45 hours. At a meeting of
the members of Aluminum Research Institute held on Augult 11,
1933, at which the first draft of a tentative Code of Fair Competi-
tion for the Secondary Aluminum Induiisty was prepared and ap-
proved, a resolution was unanimously adopted that all members
would anticipate the Code provisions for a 40-hour week and a 350
per hour minimum wage by putting these provisions into effect as
of August 21, 1933. To the credit of this Industry, this was lived
up to by the members of Aluminum Research Institute, thus making
these increases in wages and reductions in working hours per week
take effect prior to the act ion of the N.R.A. Policy Board in approv-
ing exceptions to the P.R.A. The Septemiber survey further showed
that during the week of September 10, 1933, following the labor
readjulstments of August 21st, the average hours per week worked
in the plants of this membership, was 39.9 hours, a decrease in average
hours per week, as compared with the average hours during the
week of July 23, of 27.9%.
Another survey was made in Novembler to judge the results of the
increase in wages and the decrease in working hours. To avoid
confusion and to eliminate guesswork, all members were asked to
report on all factory employees, whether or not these employees were
engaged exclusively upon the production of .secondary aluminum.
The months of June and October, before and after the voluntary
increase in wages and decrease in hours, were chosen for the com-
prison. This careful survey indicated the following: that the
total number of this membership's employees in October had in-
creased by 50.529% over the total number in June; that the total
October payroll had increased 19.60% over the total June payroll;
that, the average minimum wage rate of October represented an
18.37% increase over the average June minimum wage rate of
29.570; and that these substantial contributions to industrial recovery
had been made in the face of a 7.2Sc% decrease in production in
October as compared with June. Reports from a representative
cross section of the industry indicate there were more factory em-
ployees on the payrolls of the members of this Institute in October
1933 than the average number employed during the peak year of 1929.
The Aluminum Research Institute was organized in June 1929,
and has actively and continuously functioned since that date.
Among the outstanding accomplishments of the Alumin um Research
Institute has been the formulation of a basic cost-finding procedure
which is susceptible of expansion to meet the most intricate demands
for the details of the costs of production and distribution. The
Aluminum Research Institute has also successfully carried to con-
clusion, the formulation of standard methods (which are and al-
ways will be subject to improvements and extensions) for the
sampling and analyzing of aluminum and its alloys. Copies of
these standards are in the hands of all American aluminum users
who maintain th'ir own chemical laboratories, all technical col-
leges and all commercial chemists who give particular attention to
the chemistry of metals. Copies of this book have also been fur-
nished upon request. to inquirers in practically all the principal
countries of the world.
ARTICLE I. PturposR,.-States the purpose of the Code.
ART. II. Defil itiofln.-Accurately defines pcecific terms applicable
to the Secondary Aluminum Industry as used in this Code.
ART. III. Hour'.--The maximum hours are limited to 40 hours
per week for employees engaged in the processing of products and
labor incident thereto except that during any six weeks in any six
months' period employees shall be permitted to work a maximum of
48 hours in any one week. Watchmen shall be permitted to work a
maximum of 56 hours per week with one day off per week. Office,
salaried, and other employees not covered above, who receive less
than $35.00 per week, shall not be permitted to work in excess of
40 hours in any one week except that during any six weeks in any
six months' period such employees shall be permitted to work a maxi-
mum of 48 hours in any one week. A normal work day shall not
exceed 8 hours. Employees engaged in an executive, managerial, or
supervisory capacity, who receive more than $35.00 per week, and
employees, other than those engaged in processing or labor operations
directly incident thereto, are not subject to any hourly limitations.
The maximum hours shall not apply in case of emergencies or re-
pairs where the safety of life and health or the protection of prop-
erty necessitates longer hours.
ART. IV. Waqes..-The minimum wage for employees engaged in
the processing of products or in any labor incident thereto is at the
rate of 35 cents per hour. Female employees shall be paid the same
rate of pay as male employees for doing the same work or for per-
forming the same duties. No person employed in clerical or office
work shall be paid less than at the rate of $15.00 per week, except
that office boys and girls may be paid a minimum wage of 80% of
the established minimum for office employees. Such office boys and
girls shall be limited to 5% of the total number of office employees
in any given establishment, provided, however, that each establish-
ment is entitled to at least one such employee. The established min-
inum rate of pay (Article IV-a) for the work performed in any
period shall apply irrespective of whether an employee is actually
compensated on time rate, piecework, or other basis. Provision is
also made for the employing of handicapped persons, who shall be
paid not less than 80% of the minimum wage scale.
ARTICLE V. General Labor Pro c;sion~,'.-Provides that no employer
shall employ any person under 16 years of age and that no person
under 18 years of age shall be employed at operations or occupations
which are hazardous in nature or dangerous to health. This article
also sets forth the mandatory provision respecting the rights of
employees to organize and bargain collectively. This article also
provides for matters having to do with reclassification of employees,
standards for safety and health, the observance of State laws, and
posting of complete copies of this Code so that they are accessible
ART. VI. Adin.iniftir-a.tioni.-Establishes a Code Authority consist-
ing of five (5) persons, four (4) of whom shall be selected by the
Aluminum Research Institute and one (1) of whom shall be selected
by the associate members of said Institute. In addition to the five
(5) members named above, there may be one or three representa-
tives, without vote, to be appointed by the Administrator to serve
without expense to the Inductry for such terms as he may specify.
In addition to the organization of the Code Authority, the powers
and duties thereof are also outlined in this article.
ART. VII. Ma_,rktitng and Trade Practice Rules.-Sets forth fair
trade 1pi-ctices for the Industry.
AnT. VIII. Export Trd(.--No provision of this Code relating to
prices or terms of selling, shipping, or marketing, shall apply to
export trade or .ales or shipments for export trade.
ART. IX. Mod;filctiol.u.-This Code and all provisions thereof are
expressly made subject to the right of the President, in accordance
with 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 said Act. Provision is also made that at the election
of the Administrator this Code may become a supplemental Code of
Fair Competition for the Aluminum Industry, if and when such a
Code is adopted and approved by the President for such industry,
provided that the Code Authority herein constituted shall remain
the Code Authority for the Industry engaged in the production and
manufacture of secondary aluminum and its alloys.
ART. X. Monopoli,.s.-No provision of this Code shall be so ap-
plied as to permit monopolies, or monopolistic practices, or to elimi-
nate, oppress, or discriminate against small enterprises.
ART. XI. Effective Date.-This Code shall become effective two
weeks after its approval by the President.
The Deputy Admiinistrator in his final report to me on said Coda
having found as herein set forth and on the basis of all the proceed-
ings in this matter:
I find that:
(a) The Code will promote the policies and purposes of Title I
of the Act, including removal of obstructions of the free flow of inter-
state and foreign commerce, which tend to diminish the amount
thereof and will provide 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 eliminating unfair competitive practice, by promot-
ing the fullest possible utilization of the present productive capacity
of industries, by avoiding undue restriction of production (except as
may be temporarily required), by increasing the consumption of in-
dustrial and agricultural products through increasing purchasing
powNer, by reducing and relieving unemployment, by improving
standards of labor, and otherwise rehabilitating industry.
(b) Said industry normally employs less than 50,000 employees;
and is not classified by me as a major industry.
(c) The Code as revised complies in all respects with the perti-
nent provisions of Title I of the Act, including without limitation
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub-
section (b) of Section 10 thereof; and that the Aluminum Research
Institute was and is an industrial group truly representative of the
industry; and that said association imposed and imposes no inequi-
table rest rictions 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 enterprise.-e 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, therefore, this code has been approved.
HUGH S. JOHNSON,
A dnmint ;rator.
FEBRUARY 8, 1934.
CODE OF FAIR COMPETITION FOR THE SECONDARY
To effectuate the policies of Title I of the National Industrial
Recovery Act, this Code is established as a Code of Fair Competition
for the industry engaged in the production and manufacture of
secondary alumiinuml and its alloys, and upon approval by the Presi-
dent, its provisions shall be the standard of fair competition for such
industry and shall be binding upon every member thereof.
(a) Tlhe term "Industry engaged in the production and manu-
facture of secondary aluminum and its alloys or "the industry"
as used herein includes all producers who recover metal from alu-
minum scrap and residue and the refining and alloying thereof.
(b) The term member of the industry" includes, but without
limitation, any individual, partnierslip, al.-ociatiiin, corporation or
other form of enterprise engaged in the industry either as an em-
ployer or on his own behalf.
(c) The term employee" as used herein includes any and all
person engaged in the industry however comlpen.ated excepting a
member of the industry.
(d) The term employer as used herein includes anyone by
whom any -iuc'h employee is compensated or employed.
(e) The terms "President.", "Act ", and "Adminiitratir as uied
herein mean respectively the President of the United States, Title I
of the National Indu.-trial Recovery Act, and the Adminitrator for
(f) Population for the purposes of this Code shall be determined
by reference to the latest Federial census.
ART ICLE III-HouRs
(a) Maximum o hours.-No employees shall be peinmittil to work
in excess of 40 hours in any one week or 8 hours in any 24-hour
period, except that during any 6 weeks in any 6-month period,
employees shall be peri-mitted to work a maxilnuli of 48 hours in
any one week, and except as herein otherwise provided. Watch-
men hhall be perlnitted to work a maximum of 56 hours per week
with one day off per week.
(b) Hours for clerical and office employees.-No perlJ n employed
in clerical or office work hllall be permitted to work in excess of 40
hours in any one week, except that during any 6 weeks in any 6-
month period such employees -hall be permitted to work a maxi-
mum of 48 hours in any one week. A normal day shall not exceed
(c) Exceptions as to hours.-The provisions of this Article shall
not apply to outside salesmen or to employees engaged in executive,
supervisory, or technical capacities who earn not less than $35 per
week. In case of an emergency, employees may work up to 10 hours
in any one day, provided that they be paid time and one half for
all hours in excess of 8 hours per day. The maximum hours shall
not apply in the case of emergencies where the safety of life and
health or the protection of property necessitates longer hours, pro-
vided that time and one half the regular rate be paid for all hours
in excess of 8 hours per day.
(d) Employin.'t by Several Employers.-No employer shall
knowingly permit any employee to work for any time which, when
totaled with that. already performed with another employer or em-
ployers in this industry, exce-ds the maximum permitted herein.
(a) M ;iln im Wages.-No employees shall be paid in any pay
period less than at the rate of 35' per hour, except as otherwise
(b) Mi'ta ni int Wages for Clerical and Office Eimployees.-No per-
son employed in clerical or office work shall be paid less than at the
rate of $15 per week of 40 hours, except that office boys and girls
may be paid a minimum wage of 80% of the established minimum for
office employees. Such office boys and girls shall be limited to 51'" of
the total number of office employees in any given establishment.; pro-
vided, however, that each establishment is entitled to at least. one
(c) Pif, worl Compers a;in-Ml;iimum WVaes.-The estab-
lished minimum rate of pay (Art. IV (a)) for the work performed
in any pay period, shall apply, irrespective of whether an employee
is actually conmpeinsatcd on time rate, piecework, or other basis.
(d) Handit cappl:d Persons.-A person whose earning capacity is
limited because of age or physical or mental handicap may be em-
ployed in light work at a wage below the minimum established by
this Code if the employer obtains from the State Authority desig-
nated by the United States Department of Labor a certificate au-
thorizing his employment at such wages and for such hours as shall
be stated in the certificate. Each employer shall file with the Code
Authority a list of all such persons employed by him. Such author-
ity shall be guided by the instructions of the United States Depart-
ment of Labor in issuing certificates to such persons. Such em-
ployees shall be paid not less than 80% of the minimum wage
(e) Unless a readjustment has already been made since June 16,
1933, equitable adjustments shall be made of the wages of employees
now receiving more than the minimum wage as herein provided.
Such equitable adjustments shall mean that differentials existing
prior to the formation of this Code shall be maintained for all em-
ployees. Within thirty days each member shall report to the Ad-
ministrator through the Code Authority all such readjustments.
ARTICLE V--GENERAL LABOR PRnoVISIONS
(a) Child Labo,.-No person under sixteen (16) years of age shall
be employed in the industry. No per-on under eighteen (18) years
of age shall be employed at operations or occupations which are
hazardous in nature or dangerous to health. The Code Authority
shall submit to the Administrator for approval before May 1, 1934,
a list of such operations or occupations. In any State an employer
shall be deemed to have complied with this provision as to age if
he shall have on file a certificate or permit duly ..igned by the Author-
ity in such State empowered to issue employment or n"'e certificates
or permits showing that the employee is of the required age.
(b) Pro'i.,ion.s from the Act.-In coinpliance with Section 7 (a)
of the Act it is provided :
(1) That. employ 3ce shall have the right to organize and bargain
collectively through repret-entatives 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.
(2) That no employee and no one seeking employment, shall be
required as a condition of empliy3iment to join any c(,npany union or
to refrain from joining, (rganiiiiing, or as-i-tlng a labor organiza-
tion of his own choo-ing, and
(3) That employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment
approved or prec-Iribed by the President.
(c) Reclassification of EmLpoyees.-No employer shall re'la-sify
employee- or duties of occupations perforneid or engage in any
other subterfuge for the purp-,e of defeating the purpose, or pro-
visioins of the Act or of this Code.
(d) Stan dards for Safety a/'.7 Health.-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
for safety and health shall be submitted by the Code Authority to
the Administrator for approval within six month. after the effective
date of this Code.
(e) State Laws.-No provision in this Code shall supersede any
State or Federal law which imposes on employers more s.tringent
requirements as to age of employees, wages., lhiurs. of work, or as
to safety, health, sanitary, or general working conditions, or in-ur-
ance, or fire protection, than are imposed by this Code.
(f) Posting.-All employers shall post complete copies of tllis
Code in conl-piciuo-, places accessible to employees.
ARTICLE VI-Or:;.\N IZ.\TIOrN, POWERS, AND DUTIES OF CODE AUTHORITY
(a) There shall forthwith be constituted a Code Authority con-
sisting of five (5) persons, four (4) of whom shall be selected by
the Aluminum Research Institute and one of whom shall be se-
lected by the Associate members of said Institute.
(b) In addition to the membership as above provided there may
be a representative or repre-entatives without vote but in no ca.Se to
exceed three (3) apl)ointed by the Administrator to serve without
expense to the industry for such terms as he may specify, to act as his
representative or representatives or as a representative or representa-
tives of such interested groups as he may specify.
(c) 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) sub-
mit to the Administrator true copies of its Articles of Association,
By-Laws, regulations, and any amendments when made thereto, to-
gether with such other information as to membership, organization,
and activities as the Administrator may deem necessary to eflectuate
the purposes of the Act.
(d) 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 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 ap-
propriate modification in the method of selection of the Code
(e) 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 accepting their
rea.ss(Cable share of the cost of its preparation and administration.
Such reasonable share of the expenses of preparation and adminis-
tration shall be determined by the Code Authority, subject to review
by the Admiinistrator on the basis of volume of business and/or such
other facts as may be deemed equitable.
(f) Nothing contained in this Code shall constitute the members
of the Code Authority 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, ex-
ercising 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 miifeasance or nonfeasance.
(g) The Code Authority shall have the following further powers
and duties, the exercise of which shall be reported to the Adminis-
trator and shall be subject to his right on review to disapprove any
action taken by the Code Authority.
(1) To insure the execution of the provisions of this Code and
provide for the compliance of the industry with the provisions of
(2) To adopt By-Laws and rules and regulations for its pro-
cedure and for the administration and enforcement of the Code.
(3) To approve recommendations for exceptions to the marketing
provisions of this Code.
(4) 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 submitted by members to siuchl Administrative and/or gov-
ernment agencies a, the Administrator may dc ,ignate; 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 individual reports shall be disclosed to any other member of the
industry or any other party except to such governmental agencies
as may be directed 1by the Administrator.
(5) To use such trade asso-ciations 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 Au-
thority of its duties, or responsibilities under this Code and that
such trade associations and agencies shall at all times be Lilbject to
and comply with the provisions lhereof.
(6) To make vreco'ienndations to the Administrator for the co-
ordination of the administration of this Cde with such other codes,
if any, as may be related to the industry.
(7) To secure from members of the industry an equitallh and
proportionate payment of the reasonable exp.neo, of maintaining the
Code Authority and its activities.
(8) To recomniield to the Ad1iiinii-trator further fair trade iprc-
tice provisions to govern members of the industry in their relations
with each other or with other industries and to re'o(imiend to the
Administrator measures for industrial planning, incl din L .-t;ib)iliza-
tion of employment.
ARTICLE VII--M.l i K Ti NG AND TRADE PRACTICE RULES
(a) Each iniember of the industry shall file with the Code Author-
ity the prices at which he is offering his products for sale, which
prices shall not be less than his current cost as determine.l by a uni-
form system of cost accounting as provided for in section (k) of
this Article, provided that any member of the industry may file
below his current cost so determined in order to meet the competi-
tion of any other member of the industry who has filed prices in
accordance with this section.
(b) In delterlmining current cost, the cost of raw materials used
in the ni nlf:ctuired product shall be computed on the basis of the
published market prices as published in any daily trade paper thereof
prevailing as of the date of sale.
(c) Any member of the industry desiring to change the price or
priic(e of his product shall notify the Code Authority of all changes
to be made three (3) full business days previous to quoting such
change; provided, however, that if at any time the current cost of
a member of the industry becomes greater than his filed price or
prices, such member shall immediately file a new price or prices
with the Code Authority in accordance with all of the provisions
of section (a) of this Article, such new price or prices to become
(d) Publiilsed prices shall include terms of payment, quantity
discounts, length of bookings or contracts and F.O.B. point, and
such other provisions as may be necessary to fully inform the trade
of all conditions of sale.'
1 See paragraph 2 of order approving thi; Code.
(e) Terms of sale shall be fully stated and strictly adhered to and
strictly adhered to and invoice shall show same.
(f) There shall be no discrimination between customers. Differ-
ence in price based upon quantity shall not constitute discrimination.
(g) Prices and discounts shall be openly and publicly announced.
(h) A uniform sales contract shall be established and used by the
industry, subject to the approval of the Administrator.
(i) All contracts shall be equally binding upon both parties and
are not subject to repudiation.
(j) The following are unfair trade practices and the violation of
any one or more of them constitutes a violation of this Code:
1. Selling below openly and publicly announced prices and terms
as provided for in Sections (a) and (c) of this Article.
2. Secret allowances or secret rebates of any kind.
3. False dating of contracts or billings.
4. Allowances by any name or of any nature which are not justi-
fied by the facts or are made in collusion with the buyer, for the
purpose or effect of defeating the provisions of this Code.
5. Storage of products in consumers' Warehouses, or sales on con-
signient to consumers, except under circumstances to be defined
by the Code Authority, where peculiar circumstances of the industry
make the practice advisable.
6. Special services or privileges to certain purchasers when not
extended to all purchasers under like terms and conditions.
7. Making false or misleading statements about competitors'
products, or regarding the character, management, or financial
standing of a competitor.
8. False or misleading advertising, minslabeling, or misbranding.
9. The adoption of brands (either in design or name) which so
closely approximate the brands or trade marks of a competitor as to
deceive or confuse a buyer by similarity of appearance or brand.
10. Inducing or attempting to induce a breach or cancellation of
a contract between a competitor and his customer.
11. Maliciously enticing away the employees of a competitor with
the purpose and intent of unduly hampering, injuring, and embar-
rassing a competitor in his business. Nothing herein shall prevent
any employee from offering his service to a competitor, or prevent
any member from employing an employee of another member where
the initiative in such cha nge of employment comes solely from the
12. No member of the industry shall give, permit to be given, or
directly offer to give, anything of value for the purpose of in-
fluien'.ing 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 such articles are actually used for commercial bribery as
13. Guaranty against decline in price.
14. Substitution of any grade of al3iminum and its alloys superior
in composition to that specified, for the purpo-e of furnishing such
material at prices lower than would otherwise prevail.
15. Entering into quantity contrnats with buyers without obliga-
tion on their part to take delivery of the quantities specified in the
contract or on the quotation for the purpose of giving special unwar-
16. Payment of brokerage in excess of the usual and customary
commission with the purpose or effect of defeating the provisions
of this Code.
17. Failure to report any tti.tics or data required by the pro-
visions of this Code.
18. Publishing or circulating unjustified or unwarranted threats
of legal proceediincgs which tend to or have the effect of harra-singl
competitors or intimidating their cusl.tomer. Failure to pr,-ecuite
in due course shall be evidence that any such threat is unwarranted
19. Requiring that the purchase or lease of any goods be a
prerequisite to the purcliai-e or lease of any other goods.
20. Violation of any of the fair-practice rules, regulations, or
requirements of this Code.
(k) Cost accoliuting. Every member of the industry shall Ius1 a
cost-accolnting system which conforms to the principles of and is
at least as detailed and complete as the uniform method of costing to
be prescribed by the Code Authority and approved by the Admin-
ARTICLE VIII-EXPoRT TRADE
No provision of this Code relating to prices or terms of selling,
shipping, or marketing, shall apply to export trade or sales or ship-
ments for export i r'ie of unfalbrijated products of this indu-ltry.
(a) This Code and all the provisions thereof are expressly made
subject to the right of the Pres.id.ent, in accordance with the pro-
visions of subsection (b) of Section 10 of the Act, from time to
time, to cancel or modify any order, approval, license, rule, or
regulation i--'ied under said Act.
(b) This Code, except as to provisions required by the Act, may
be modified on the basis of experience or changes in circumstances,
such modifications to be )based upon application to the Administrator
and such notice and hearing as he shall -pci:ify, and to become effec-
tive on approval of the President.
(c) At the election of the Admiiiitrator this Code of Fair Com-
petition may become a supplemental code to, or be coordinated
with, the Code of Fair Competition for the Aluminum Industry,
if and when such a Code is adopted and approved by the President
for .uch industry, provided that the Code Authority herein con-
stituted shall remain the Code Authority for the industry engaged
in the production and manufacture of secondary aluminum and its
UNIVERSITY OF FLORIDA
IIIllllllllll llll11II IIIIIIIll I llillP
14 3 1262 08582 8597
No provision of this Code shall be so applied as to permit monop-
olies, or monopolistic practices, or to eliminate, oppress, or dis-
criminate against small enterprises.
ARTICLE XI-EFFECTIVE DATE
This Code shall become effective two weeks after its approval
by the President.
Approved Code No. 268.
Registry No. 1203-1-03.
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