NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON SEPTEMBER 5, 1934
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Approved Code No. 515
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Approved Code No. 515
CODE OF FAIR COMPETITION
Approved on September 5, 1934
APPROVING CODE OF FAIR COMPETITION FOR THE ALLOYS INDUSTRY
An application ha ing 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 Alloys Industry, and hearings having been
duly held thereon and the annexed report on said Code, containing
findings with respect thereto, having been made and directed to the
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent, 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 purposes 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.
R. W. LEA,
Assistant Administrator for Industry.
September 5, 1934.
REPORT TO THE PRESIDENT
The TW'hite House.
SIR: The original Code of Fair Competition was presented as a
Code of Fair Trade Practice for the Electro Chemical Ferro Alloy
Industry as a division of the Chemical Manufacturing Industry, sup-
plenentary to the Code of Fair Competition for the Chemical Manu-
facturing Industry, as presented by the Chemical Alliance, Inc.
Subsequently in keeping with the desires and policies of the
N.R.A. the scope of this code was broadened to cover alloys other
than those made by Electro Chemical processes.
This code is presented by the American Alloy Producers Associa-
tion, an unincorporated membership society organized in 1933, rep-
resenting over 90% of the known members of industry, and over 90%
in volume of production.
Several revisions of the proposed code were made prior to the
Public Hearing which was held on June 25, 1934. This code was
revised during the recess of this hearing and was submitted in its
present form for approval.
Every person who requested an appearance was properly heard
in accordance with statutory and regulatory requirements.
The Alloys Industry, as outlined in this code, embraces the pro-
duction, within the United States, by any process of manufacture, of
primary alloys and/or non-metallic metallurgical reagents for sub-
sequent use as an additive agent for the purpose of alloying and/or
deoxidizing, and. or refining, but not for fluxing, and the original
sale in the United States of any Industry Product by a Member of
Industry producing the same directly or indirectly either by him-
self or his agent, which includes without limitation any person or
corporation occupying a subsidiary or controlling relationship or one
of conimon, mutual or joint ownership, or control to a Member of In-
Industry Products include the alloy combinations of the. elements
of the Periodic System with iron, the constituent elements or combi-
nations thereof of such alloys without iron, and.-or non-metallic
metallurgical reagents for subsequent use as an additive agent for
the purpose of allowing, and. or deoxidizing, and/or refining, but
not for fluxing. Industry Products do not include standard high
carbon ferro manganese or spiegeleisen, or the production of such
metals which may be used for allowing lroce.ses which are governed
by other Codest of Fair Competition.
Although this is a relatively small Industry, the Alloys Industry
has played a very important role in our industrial development.
Prior to the advent of the automobile and high speed tool steel,
ferro manganese, spiegeleisen and ferro silicon were the most com-
monly known alloys and were used primarily as deoxidizing agents
and for the alloying value of the residual manganese and silicon.
Although ferro manganese, spiegeleisen and ferro silicon still con-
tinue to represent the greatest tonnage of alloys used, the use thereof
has been supplemented by other alloys designed to add to metals cer-
tain properties to meet the demands of stress and service.
Although alloy combinations without iron and non-metallic met-
allurgical reagents are used extensively, the manufacture of ferro
alloys represent the predominant activity of the Industry.
Each alloy constituent, either singly or in combination with other
elements, contributes certain properties to meet the requirements of
Industry; not only to meet the requirements of increased stress de-
mands but also for resisting corrosion as is evidenced by the de-
velopment of stainless steel. To meet these varying requirements
necessitates the use of ferro chrome, ferro tungsten, ferro vanadium,
ferro titanium, ferro zirconium, ferro phosphorus, ferro molybdenum
and the combination thereof. The raw materials from which many
of these alloys are made are imported from Africa, China. Peru and
The Industry employed about 4,000 employees in 1929 and about
2,500 in 1933. The Industry represents a capital investment of
$82,000,000 and sales of about $17,000,000 in 1932 and $9,000,000
in 1933. With return to normalcy and continued and increased de-
mands for the use of alloys the Alloys Industry should again enjoy
its former position in Industry.
The total quantity of ferro alloy code products shipped from
United States furnaces in 1929 was 372,000 short tons valued at
$39,000,000; in 1933 the total was 244,000 short tons, valued at $18,-
000,000. Ferro silicon. used as a deoxidizing agent in steel making
constitutes the largest item of the group. Shipments in 1929 amounted
to 310,000 short tons valued at $15.700,000 and in 1933 to 200,000
short tons valued at $7,400.000. Shipments of ferro tungsten in
1929 were 3,000 tons, valued at $5.800.000 and in 1933, 952 tons,
valued at $1,500,000; of ferro vanadium 1.800 tons valued at $4.700,-
000 in 1929 and 900 tons, valued at $2,000.000 in 1933. All other
varieties of ferro alloys accounted for 57,000 tons valued at $13,000,-
000 in 1929 and 42,000 tons valued at $7,300,000 in 1933.
ARTICLE I. States the purpose of the code.
ARTICLE II. Accurately defines specific terms applicable to the
Alloys Industry as used in this code.
ARTICLE Ilf. The maximum hours are limited to 40 hours per
week except that employees may be permitted to work in excess of
40 hours per week in not more than six weeks in any six month
period in order to meet seasonal or peak requirements; such employees
my be permitted to work not more than 48 hours per week with the
proviso that time and one-third shall be paid to any employee so em-
ployed for all hours worked in excess of 40 hours per week or eight
hours per day. Similar provisions are made to meet the requirements
of continuous processes. Clerical and office employees shall not be
permitted to work in excess of 40 hours per week averaged over any
five week period; provided, that in one week of such five week period
any employee may be permitted to work not in excess of 48 hours.
Watchmen may be permitted to work either 84 hours in any two
week period or 56 hours in any one week period; provided, that such
employees shall have at least one day's rest in each seven day period.
Employees engaged in an executive, managerial, supervisory or tech-
nical capacity and their immediate assistants who receive not less
than $35.00 per week, and to outside sales and outside sales service
employees and to those engaged in emergency maintenance or emer-
gency repair work involving plant breakdown or protection of life
or property which necessitates longer hours, are not subject to hourly
ARTICLE IV. This Article provides that no employee shall be paid
in any pay period less than at the rate of 30v per hour in the
Southern District, nor less than at the rate of 40v per hour else-
where in the United States. Wage rates in effect on July 1st, 1933,
above the minimums specified shall not be reduced in any case. The
minimum weekly wage for persons employed in clerical or office
work is $15.00 per week. The minimum rate of pay for work per-
formed in any pay period shall apply irrespective of whether an
employee is actually compensated on a time rate, piece work, or other
basis. Provision is also made for the employment of handicapped
persons, as well as for the adjustment of wages above the minimum
if such adjustment has not heretofore been made under the National
Industrial Recovery Act.
ARTICLE V. This Article 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 except in clerical, office, sales, service, tech-
nical and engineering departments. This Article also sets forth
mandatory provisions respecting the rights of employees to organize
and bargain collectively. It also provides for matters having to do
with reclassification of employees, standards for safety and health
the observance of state laws and the posting of complete copies of
this code so that they are accessible to employees. Provision is also
made with reference to company towns and stores and dismissals for
ARTICLE VI. This Article establishes a Code Authority consisting
of seven members who shall be selected by and who may be members
of the Executive Committee of the Alloy Producers Association, and
one other member who shall be a Member of Industry not a member
of the Association. The selection of all members of the Code Au-
thority shall be by a fair and equitable method of election to be
approved by the Administrator. In addition to the above member-
ship there may be not more than three representatives without vote
and without compensation from the Industry to be appointed by the
Administrator for such terms as he may specify. In addition to the
organization of the Code Authority the powers and duties thereof
are outlined in this Article.
ARTICLE VII. This Article makes provision for Trade Practice
ARTICLE VIII. This Article makes provision that the Code Au-
thority may recommend to the Administrator that present capacities
be not increased until such time as the Code Authority and the Ad-
ministrator, or the Administrator acting on his own behalf, shall
determine that the demand for such products of Industry cannot be
met by the fullest possible use of such present capacities.
ArTICLE IX. This Article provides for Export Trade.
ARTICLE X. This Article makes provisions for the modification of
ARTICLE XI. This Article provides that no provision of this code
shall be so applied as to promote monopolies or monopolistic
practices, or to eliminate, oppress or discriminate against small
ARTICLE XII. This Article provides that this code shall become
effective ten days after its approval by the President.
The Deputy Administrator in his fnal 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 trade groups, by
inducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision, by eliminat-
ing unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity of industries, by avoid-
ing undue restriction of production (except as may be temporarily
required), by increasing the consumption of industrial and 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 em-
ployees; 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 Associa-
tion is an industrial Association truly representative of the afore-
said Industry; and that said Association imposes no inequitable
restrictions on admission to membership therein.
(d) The code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of
For these reasons, therefore, this code has been approved.
HuGH S. JOHNsow,
SEPTEMBER 5, 1934.
CODE OF FAIR COMPETITION FOR THE ALLOYS
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 Alloys Industry and its provisions shall be the standards of
fair competition for such Industry and be binding upon every mem-
Wherever used in this code or any supplement appertaining
thereto, the terms enumerated in this Article shall have the mean-
ings herein defined, unless the context shall otherwise clearly
SECTION 1. The term President" means the President of the
United States of America.
SECTION 2. The term "Act means Title I of the National Iudus-
trial Recovery Act.
SECTION 3. The term "Administrator means the Administrator
for Industrial Recovery.
SECTION 4. The term '" Member of Industry" includes, but with-
out limitation, 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. The term Employee" means and includes anyone
engaged in the Industry in any capacity receiving compensation for
his services irrespective of the nature or method of payment of such
compensation, except a Member of the Industry.
SECTION 6. The term Employer means anyone by whom any
such employee is employed or compensated.
SECTION. 7. The term "Industry" includes all those producing,
within the United States, by any process of manufacture, primary
alloys, and/or nonmetallic metallurgical reagents for subsequent use
as an additive agent for the purpose of alloying, and/or deoxidiz-
ing, and/or refining, but not for fluxing, and the original sale in the
United States of any such Industry products by the Member of
Industry producing the same directly or indirectly either by him-
self or his agent, which includes without limitation any person or
corporation occupying a subsidiary or controlling relationship or
one of common, mutual, or joint ownership, or control to a Member
SECTION 8. The term Industry Products" includes the alloy
combinations of the elements of the Periodic System with iron, the
constituent elements or combinations thereof of such alloys without
iron, and 'or nonmetallic metallurgical reagents for subsequent use
as an additive agent for the purpose of alloying, and/or deoxidizing,
and/or refining, but not for fluxing. The term "Industry Prod-
ucts does not include standard high carbon Ferro Manganese or
Spiegeleisen, or the production of such metals which may be used
for allowing processes which are governed by other Codes of Fair
SECTION 9. The words Export Trade mean (as defined in the
Export Trade Act adopted April 10, 1918) solely trade or com-
merce in goods, wares or merchandise exported, or in the course
of being exported from the United States or any territory thereof
to any foreign nation; but the words Export Trade shall not be
deemed to include the production, manufacture, or selling for con-
sumption or for resale within the United States or any territory
thereof of such goods, wares or merchandise, or any act in the course
of such production, manufacture or selling for consumption or for
SECTION 10. The term "Association" shall mean the American
Alloy Producers Association, a voluntary unincorporated Associa-
SECTION 11. The term Executive Committee" shall mean the
Executive Committee of the Association.
SECTION 12. The term Secretary shall mean the Secretary of the
Code Authority, who shall also be the Secretary of the Association.
SECTION 13. The term Southern District" shall mean: Virginia,
North Carolina, South Carolina, Kentucky, Tennessee, Georgia,
Florida, Alabama, Mississippi, Louisiana, Arkansas and Texas.
ARTICLE III-HouRS OF LABOR
SECTION 1. Maximum Hours.-No employee shall be permitted to
work in excess of forty (40) hours in any calendar week or eight (8)
hours in any twenty-four (24) hour period, except as herein other-
SECTION 2. Hours for Clerical and Office Employees.-No person
employed in clerical or office work shall be permitted to work in
excess of forty (40) hours in any one (1) week, or eight (8) hours
in any one (1) day, except that during one (1) week in any four (4)
or five (5) week period that shall correspond as nearly as may be to
the calendar month any of such employees may be permitted to work
a maximum of forty-eight (48) hours.
SECTION 3. Exceptions as to Hours.-The limitation as to hours
of labor as specified in Sections 1 and 2 of this Article III and
Section 4 as applied to Subparagraphs (b), (c) and (d) of this
Section 3 shall not apply to the following:
(a) During any period in which a concentrated demand upon
any division of the Industry shall place an unusual and temporary
burden for production work upon its facilities, or to meet peak
requirements, or production emergencies, an employee of such divi-
sion 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) month period;
provided, however, that at least one and one-third (1%') times his
regular wage rate for any employee so employed shall be paid for all
hours worked in excess of forty (40) hours per week or eight (8)
hours per day. Each member who shall permit any employee to
work in excess of eight (8) hours per day or forty (40) hours per
week under the provisions of this Subsection (a) shall report, upon
the request of the Administrator, such overtime to the Code Au-
thority, which shall in turn report to the Administrator.
(b) Employees engaged in emergency maintenance or emergency
repair work, involving plant breakdown or protection of life or
property; provided, that in such special cases at least one and one-
third times (11/3) his regular wage rate for any employee so em-
ployed shall be paid for all hours worked in excess of forty (40)
hours in any one (1) week or eight (8) hours per day.
(c) Outside sales and outside sales service employees.
(d) Persons in a managerial, executive, supervisory or technical
capacity and their immediate assistants; provided, that this excep-
tion shall apply to no such employee who is paid less than at a rate
of Thirty-Five Dollars ($35.00) per week.
(e) Watchmen who, according to the nature of their responsibili-
ties, may be permitted to work either not more than eighty-four (84)
hours in any two (2) week period or fifty-six (56) hours in any one
(1) week; provided, that such employees shall have at least one (1)
day's rest in each seven (7) day period.
(f) Power-house operators, engineers, firemen and pumpmen;
provided, the total number of hours worked by such employees shall
not exceed forty-five (45) hours in any one (1) week, or nine (9)
hours per day.
(g) There may be a tolerance of ten percent (10%) additional
hours over the maximum hours in any one (1) week for employees
engaged in the preparation, care and maintenance of machinery and
production facilities, stock and shipping employees,, chauffeurs and
truckmen engaged in outside delivery and pick-up service; provided,
however, that at least one and one-third (11/3) times his regular wage
rate for any employee so employed shall be paid for all hours worked
in excess of forty (40) hours in any one (1) week or eight (8) hours
(h) Skilled workers in continuous processes, the interruption of
which would unavoidably reduce production because of demands
inherent and peculiar within the process itself; provided, however,
that such employees in such cases shall not be permitted to work
more than forty-eight (48) hours in any one (1) week, and pro-
vided, that in such special cases at least one and one-third (11/3)
times his regular wage rate shall be paid to any employee so em-
ployed for hours worked above forty (40) hours per week or eight
(8) hours per day. Each employer who shall permit any employee
to work in excess of eight (8) hours per day or forty (40) hours
per week under the provisions of this Subsection (h), shall report,
upon the request of the Administrator, such overtime to the Code
Authority, which shall in turn report to the Administrator.
SECTION 4. Standard Week.-No employee shall be permitted to
work more than six (6) days in any seven (7) day period.
SECTION 5. Employment by Several Employers.-No employer
shall knowingly permit any employee to work for any time which,
when totalled with that already performed with another employer
or employers in this Industry or other trades or industries, exceeds
the maximum permitted herein.
SECTION 1. Minimum tages.-Except as otherwise herein pro-
vided no employee shall be paid in any pay period less than at the
rate of thirty (30) cents per hour in the Southern District, nor less
than at the rate of forty (40) cents per hour elsewhere in the United
States. The minimum rates herein provided shall be construed as
hiring rates applying to totally unskilled or common labor and all
other classes of labor shall be compensated at rates above the mini-
mum. Wage rates in effect on July 1st, 1933, above the minimums
specified hereinabove shall not be reduced in any case.
SECTION 2. Clerical and Office Employees.-No clerical or office
employee shall be paid less than at the rate of Fifteen Dollars
($15.00) per week; provided, however, that office boys and girls and
messengers may be paid not less than at a rate of 80% of the mini-
mum hereinabove specified, and provided further that the number
of such boys and girls and messengers so paid shall constitute not
more than 5% of the total number of such employees of any one (1)
office of any one (1) employer, but in anfy case each employer shall
be entitled to employ one (1) such employee.
SECTION 3. Piecework Compen sation-Minimum 4 Wages.-This
Article establishes a minimum rate of pay for any pay period which
shall apply, irrespective of whether an employee is actually compen-
sated on a time-rate, piece-work, or other basis.
SECTION 4. Wages Above the Minimun .-Equitable adjustments
with respect to rates above the minimum shall be made within thirty
(30) days after the effective date of this code by each employer who
has not heretofore made such adjustments under the National Indus-
trial Recovery Act. In no event, however, shall hourly rates be
reduced in making such equitable adjustments. Within sixty (60)
days after the effective date of this code each Member of Industry
shall make a report of such adjustment whether made prior to or
subsequent to date of approval of this code to the Code Authority.
SECTION 5. Payment of Wages.-Each employer shall make pay-
ment of all wages in lawful currency, or by negotiable check there-
for, payable on demand. These wages shall be exempt from any
payments for pensions, insurance or sick benefits other than those
voluntarily paid by the wage earner or required by law. Pay
periods for wages shall be at no greater interval than every semi-
month, and salaries at no greater interval than every month. No
employer shall withhold wages except as otherwise provided by law.
SECTION 6. Handicapped Persans.-A person whose earning capac-
ity is limited because of age, physical or mental handicap, or other
infirmity, may be employed on light work at a wage below the mini-
mum established by this Code if the employer obtains from the State
Authority, designated by the United States Department of Labor
a certificate authorizing such person's employment at such wages and
for such hours as shall be stated in the certificate. Such authority
shall be guided by the instructions of the United States Department
of Labor in issuing certificates to such persons. Each employer shall
file with the Code Authority a list of all such persons employed by
him, showing the wages paid to and the maximum hours of work
for such employee.
ARTICLE V-GENERAL LABOR PROVISIONS
SECTION 1. Child Labor.-No person under eighten (18) years of
age shall be employed in the Industry, except in clerical, office, sales,
service, technical and engineering departments, and no person under
sixteen (16) years of age shall be employed in any capacity. 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 duly signed
by the authority of such state empowered to issue employment or
age certificates or permits, showing that the employee is of the
SECTION 2. Provisions of the Act.-(a) Employees shall have the
right to organize and bargain collectively through representatives of
their own choosing, and shall be free from the interference, restraint,
or coercion of employers of labor, or their agents, in the designation
of such representatives or in self-organization or in other concerted
activities for the purpose of collective bargaining or other mutual
aid or protection.
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to refrain
from joining, organizing, or assisting a labor organization of his own
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President.
SECTION 3. Reclasdification of Employees.-No employer shall
reclassify employees or duties of occupations for the purpose of
defeating the purposes or provisions of the Act or of this code.
SECTION 4. Standards for Safety and Health.-Every employer
shall provide for the safety and health of his employees at the place
and during the hours of their employment. Standards of safety
and health for each division of the Industry shall be submitted to the
Administrator by the Code Authority within three (3) months after
approval of this code.
SECTION 5. State Laws.-No provision in this code shall supersede
any state or Federal law which imposes on employers more stringent
requirements as to age of employees, wages, hours of work, or as to
safety, health, sanitary or general working conditions, or insurance
or fire protection, than are imposed by this code.
SECTION 6. Posting.-All employers shall post and keep posted
complete copies of this code and all amendments thereto in con-
spicuous places accessible to employees, and shall comply with all
rules and regulations relative to posting which may from time to
time be prescribed by the Administrator.
SECTION 7. Company Towns and Stores.-Employees other than
maintenance or supervisory men, or those necessary to protect prop-
erty, shall not be required as a condition of employment to live in
houses rented from or specified by the employer. No employee shall
be required, as a condition of employment, to trade at a store owned
or specified by an employer.
SECTION 8. Dismissal for Comipla0n.t.-No employer shall dismiss
or demote any employee for making a complaint or giving evidence
with respect to an alleged violation of this code.
ARTICLE VI-ORGANIZATION, POWERS AND DUTIES OF THE CODE
SECTION 1. Organization and Constiution.--A Code Authority to
administer this code is hereby constituted, antd shall consist of seven
(7) voting members who shall be selected by and who may be mem-
bers of the Executive Committee of the Association, and one (1)
other voting member who shall be a Member of Industry and shall
be selected by the Members of Industry who are not members of the
Association. The selection of all members to the Code Authority shall
be by a fair and equitable method of election to be approved by the
Administrator. In the event that the selection of the Association's
non-member representative on the Code Authority is not made with-
in thirty (30) days after the effective date of this code such member
many be selected by the Administrator.
SECTION 2. In addition to the above membership there may be
not more than three (3) members, without vote, and without com-
pensation from the Industry, appointed by the Administrator to
serve for such terms as he may specify.
SECTION 3. Each trade or industrial association directly or in-
directly participating in the selection or activities of the Code Au-
thority shall, (1) impose no inequitable restrictions on membership,
and (2) submit to the Administrator true copies of its Articles of
Association, By-Laws, Rules and Reoulations and any amendments
when made thereto, together with such other information as to mem-
bership, organization and activities as the Administrator may deem
necessary to effectuate the purposes of the Act.
SECTION 4. 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
any basic Code Authority or Sub-Code Authority is not truly repre-
sentative or does not in other respects comply with the provisions of
the Act, may require an appropriate modification in the method of
selection of such Code Authority.
SECTION 5. 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 any-
one for any act of any other member, officer, agent or employee of
the Code Authority; nor shall any member of the Code Authority,
exercising reasonable diligence in the conduct of his duties here-
under, be liable to anyone for any action or omission to act under
this code, except for his own wilful misfeasance or nonfeasance.
SECTION 6. Powers and Dufies.--Subject to such rules and regu-
lations as may be issued by the Administrator and to the extent
permitted by the Act, the Code Authority shall have the following
further powers and duties.
(a) To make investigations as to the functioning and observance
of any provisions of this code at its own instance or upon complaint
of any person affected and to report thereon to the Administrator.
(b) To insure the execution of the provisions of this code and to
provide for the compliance of the Industry with the provisions of
(c) To adopt By-Laws and Rules and Regulations for its pro-
cedure and for the administration of this code. The Code Authority
shall promptly furnish to the Administrator for his approval true
copies of the By-Laws, Rules and Regulations adopted pursuant to
(d) To obtain from Members of the Industry such statistical in-
formation and reports as are required for the administration of this
code and to provide for submission by members of such statistical
information and reports as the Administrator may deem necessary
for the purposes recited in Section 3 (a) of the Act, which informa-
tion and reports shall be submitted by members to such Federal
and/or state agencies as the Administrator may designate; provided,
that nothing in this code shall relieve any Member of the Industry
of any existing obligations to furnish reports to any government
agency. No individual reports submitted to the Administrator
and. or such government agencies as the Administrator may desig-
nate, shall be disclosed to any other Member of the Industry or any
other party except such government agencies as may be directed by
(e) 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 Au-
thority 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.
(f) To make recommendations to the Administrator for the coor-
dination of the administration of this code with such other codes,
if any, as may be related to the Industry.
(g) To recommend to the Administrator such further trade prac-
tice provisions to govern Members of the Industry in their relations
with each other or with other Industries, and measures for indus-
trial planning, including calling of meetings of Members of the
Industry to consider control of production through voluntary agree-
ment, stabilization of employment and conservation of natural re-
sources, as the Code Authority shall consider to be for the best
interests of the Industry, and to recommend to the Administrator
such measures as shall have been voluntarily agreed upon," such
recommendations, upon approval by the Administrator after such
notice and hearing as he may prescribe, to have the same effect as
other provisions of this code.
SECTION 7. It being found necessary to support the administration
of this code in order to maintain the standards of fair competition
established by this code and to effectuate the policy of the Act, the
Code Authority is authorized:
(1) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes and to meet such obligations out
of funds which may be raised as hereinafter provided and which
shall be held in trust for the purposes of this code:
(2) To submit to the Administrator for his approval subject to
such notice and opportunity to be heard as he may deem necessary,
(a) an itemized budget of its estimated expenses for the foregoing
purposes, and (b) an equitable basis upon which the funds necessary
to support such budget shall be contributed by Members of the
(3) After such budget and basis of contribution have been ap-
proved by the Administrator, to determine and secure equitable con-
tribution as above set. forth by all such Members of the Industry,
and to that end, if necessary, to institute legal proceedings therefore
in its own name.
SECTION 8. Each Member of the Industry shall pay his or its equi-
table contribution to the expenses of the maintenance of the Code
Authority, determined as hereinabove provided (unless duly ex-
empted from making such contributions) and subject to rules and,
regulations pertaining thereto issued by the Administrator. Only
Members of the Industry complying with the code and contributing
to the expenses of its administration as hereinabove provided, shall
be entitled to participate in the selection of members of the Code
Authority or to receive the benefits of any of its voluntary activities
or to make use of any emblem or insignia of the National Recovery
(a) If, after such budget and basis of contribution shall have been
approved by the Administrator in accordance with such regulations
as the Administrator heretofore ha:- or hereafter shall prescribe
with respect thereto, any Member of the Industry shall fail to pay
his or its contribution so determined within thirty (30) days after
such members shall have received notice thereof as prescribed by said
regulations, such failure so to pay such contribution shall be a viola-
tion of this code upon and after appropriate certification of such
failure by the Code Authority to the Administrator, unless said
member is duly exempted by his action, in accordance with the said
SECTION 9. The Code Authority shall neither incur nor pay any
obligation substantially in excess of the amount thereof as estimated
in its approved budget, and shall in no event exceed the total amount
contained in the approved budget except upon approval of the Ad-
ministrator; and no subsequent budget shall contain any deficiency
item for expenditures in excess of prior budget estimates except those
which the Administrator shall have so approved.
SECTION 10. If the Administrator shall determine that any action
of the 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 investiga-
tion 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.
SECTION 11. When the Administrator determines upon the petition
of the Code Authority, or otherwise, that an emergency exists in
this Industry because of destructive price cutting which is such as
to render ineffective or seriously endangers the maintenance of the
provisions of this code, the Administrator may cause to be determined,
after investigation of costs by the Code Authority through an im-
partial agency, the minimum price for any product of this Industry
necessary to mitigate the conditions constituting such emergency and
to effectuate the purposes of the Act, and below which price such
product of the Industry shall not be sold. Such determination shall
be subject to such notice and hearing as the Administrator may
require. From time to time the Code Authority, upon its own initia-
tive, or upon the request of any interested party, may recommend
that the determination be reviewed, or the Administrator may cause
such determination to be reviewed and appropriate action taken.
ARTICLE VII-TRADE PRACTICE RULES
SECTION 1. The following trade practices are declared to constitute
unfair methods of competition between Members of the Industry,
and no Member of the Industry shall use or engage in any of them,
either directly or indirectly, through any officer, agent or employee.
Engaging in any one or more of these or any further trade practice
provisions which hereafter may be established on recommendation
by the Code Authority, approved by the Administrator, after such
hearings as he may prescribe, shall be deemed a violation of this
(a) Secretly paying or allowing rebates, refunds, commissions,
credits, unearned discounts, excess allowances, special services or
privileges, whether in the form of money or otherwise, to certain
purchasers which are not extended to all purchasers under similar
circumstances for the purpose of influencing a sale.
(b) Procuring. otherwise than with the consent of any member
of the code, any information concerning the business of such mem-
ber which is properly regarded by it as a trade secret or confidential
within its organization, other than information relating to a viola-
tion of any provision of this code.
(c) Imitating or simulating any design, style, mark or brand
owned or used with the consent of the owner by any other Member
of the Industry.
(d) Using or substituting any material different in quality from
that specified by the purchaser of any product, or using or substi-
tuting any material or any method of manufacture not in accord
with any applicable law, rule or regulation of any governmental
(e) Selling or offering to sell Industry Products to a purchaser
not under term-contract for such Industry Products at the term-
contract price for such Industry Products, or less.
(f) Cancelling in whole or in part, or permitting the cancella-
tion in whole or in part of, any contract of sale of any product,
except for a fair consideration or just cause, or secretly paying or
allowing to any purchaser for the purpose of influencing the sale
of any product, any rebate, commission, credit, discount, adjustment
or similar concession, or permitting the splitting of their commis-
sions by sales agents with, or the allowing of any part of their com-
missions by sales agents to, any purchaser in connection with the
sale of any of the Industry Products.
(g) Disseminating, publishing or circulating any false or mis-
leading information relative to any product or price for any product
of any Member of the Industry, or the credit standing or ability of
qny member thereof to perform any work, or manufacture, or pro-
duce any product, or to the conditions of employment among the
employees of any. member thereof.
(h) Inducing or in any manner attempting to induce a violation
of a contract between a Member of Industry and his customer.
(i) Aiding or abetting any person, firm, association or corpora-
tion in any unfair practice.
(j) Making or giving to any purchaser of any product any
guaranty or protection in any form against decline in the price of
such product. This provision shall not apply to contracts entered
into prior to the effective date of this code.
(k) Making any false statement in an invoice and especially
stating in the invoice of any product as the date thereof a date
later than the date of the shipment of such product, or including
in any invoice any product shipped on a date earlier than the date
of such invoice.
(1) Making any sale or contract of sale of any Industry Product
under any description which does not fully describe iuch product
in the terms custonmarily used in the Industry.
(in) Failing to add to the prices charged for products of the
Industry, whenever such addition niav be lawful, any Federal tax
assessed against the production or sale of such products, or rebat-
ing such charge. 'llis provision shall not apply to contracts entered
into prior to the effective date of this code.
(n) Giving or permitting to be given, or directly offering to give
anything of value for the purpose of influencing or rewarding the
action of any employee, agent or representative of another in rela-
tion 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. This commercial bribery pro-
vision shall not be construed to prohibit free and general distribu-
tion of articles commonly used for advertising except so far as such
articles are actually used for commercial bribery as hereinabove
(o) Deviating from the published and previously established
specifications, for the purpose of influencing a customer or prospec-
(p) Alloying of any Industry Product of previously established
specifications in any manner for the purpose of evading the provi-
sions of this code.
(q) Requiring that, the purchase or lease of any products or
equipment be a prerequisite to the purchase or lease of any other
products or equipment.
ARTICLE VIII-NEW CAPACITY
In tile event that the Code Authority shall determine that then
existing capacities and capacities then under construction for the
production of products of the Industry are in excess of the capacities
required to meet the demand for such products, and the Administra-
tor shall approve such determination upon the recommendation of
the Code Authority, then such capacities shall not be increased
(except for the supplying of .foreign demand) until such time as
the Code Authority and the Administrator, or the Administrator
acting on his own behalf, shall determine that the demand for such
products cannot be met by the fullest possible use of such capacities.
This provision, however, shall not apply in the production of
Calcium Molybdate or Ferromolybdenum, or other Molybdenum
products in which Molybdenum represents the chief constituent of
economic value, or Ferro Phosphorus when such Ferro Phosphorus
is incidentally and necessarily produced as a by-product in the
manufacture of Phosphorus or Phosphoric Acid.
ARTICLE IX--EXPOnT TIADE
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 trade.
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 Subsection (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule or regula-
tion issued under said Act.
SEctION 2. This code, except as to provisions required by the Act,
may be modified by amendment 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 specify,
and to become effective on approval of the President.
SECTION 3. If the Code Authority shall desire to propose an
amendment, after having approved the same, it shall submit the
iame to the Members of the Industry who shall thereupon vote upon
iaid proposed amendment either at a special meeting called for
that purpose or by mail ballot, at the discretion of the Code
Authority. In such voting there shall be two separate ballots on
each amendment so proposed:
(a) Each Member of the Industry voting shall be entitled to cast
one (1) vote upon said amendment, which vote shall be known as
the Member Vote ".
(b) Each member of the Industry voting upon said proposed
amendment shall be entitled to cast one (1) vote for each rated one
thousand (1,000) horsepower electric furnace capacity now installed
or now under construction in the Industry owned by such member,
or the equivalent thereof fairly computed of other type of produc-
tion capacity for Industry Products. This vote shall be known as
the Capacity Vote."
In order to receive approval of the Industry, any such proposed
amendment shall receive the affirmative vote of:
(a) At least 75% of the Member Votes cast and in addition
(b) At least 75% of the Capacity Votes cast, both separately con-
sidered. If such proposed amendment shall be approved in the
manner above set forth, the Code Authority shall submit such pro-
posed amendment to the Administrator. Such amendment shall
become effective as a part of this code upon approval by the AdranJu-
istrator after such notice and hearing as he may prescribe.
ARTICLE XI-M- MONOPOLIES
No provision of this code shall be so applied as to promote monop-
olies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterprises.
ARTICLE XII-EFFECTI\V DATE
This code shall become effective beginning ten (10) days after its
approval by the President.
Approved Code No. 515.
Registry No. 1201-08.
UNIVERSITY OF FLORIDA
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