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NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
(A Division of the Machinery and Allied Products Industry)
AS APPROVED ON MAY 16, 1934
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GOVERNMENT PRINTING OFFICE
For sale by the Superintendent of Documents, Washington, D.C. Price 5 canta
UNIV. OF FL LI.
Approved Code No. 347-Supplement No. 8
Registry No. 1320-01
This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
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Approved Code No. 347-Supplement No. 8
SUPPLEMENTARY CODE OF FAIR COMPETITION
WATER METER MANUFACTURING INDUSTRY
As Approved on May 16, 1934
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WATER METER
A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY
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 Supple-
mental Code of Fair Competition for the Water Meter Manufactur-
ing Subdivision of Machinery and Allied Products Industry, and
hearings having been duly held thereon and the annexed report on
said Supplemental 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 Supplemental 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 Supplemental Code of Fair Competition be and it is hereby
approved subject to the following condition: that the provisions of
Article VII, Section (a), insofar as they prescribe a waiting period
between the filing with the Code Authority (or such agency as may
be designated in the Supplemental Code) and the effective date of
price lists, as originally filed and/or revised price lists or revised
terms and conditions of sale, be and they hereby are stayed pending
my further order.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
A. R. GLANCY,
May 16, 1934.
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report on the Supplemental Code of Fair Compe-
tition for the Water Meter Manufacturing Subdivision of Machinery
and Allied Products Industry, a Public Hearing on which was held
in Washington, D.C., on December 8, 1933, and reconvened on De-
cember 21, 1933. The Hearing was conducted in full accordance
with the provisions of Title I of the National Industrial Recovery
The Water Meter Manufacturing Subdivision, being truly rep-
resentative of the manufacturers of the products defined in Article
II of the Supplemental Code, has elected to formulate and sub-
mit a Supplemental Code of Fair Competition as provided in the
second paragraph of Article I of the Code of Fair Competition for
the Machinery and Allied Products Industry, approved by you on
the seventeenth day of March, 1934.
The Water Meter Manufacturing Subdivision means the manufac-
ture for sale of water meters and parts thereof, and includes all those
engaged in such manufacture for sale.
This Subdivision has been severely affected by the recent depres-
sion; this is evidenced by the steady decline in annual sales since
1929. The annual volume of production of Water Meters and parts
thereof as reported by the Division of Economic Research and Plan-
ning declined from $14,915,000 in 1929 to $4,935,000 in 1932, or
66.9%. The six months total of the value of production of $2,219,000
for the year 1933 indicates a continued decline as compared with the
total for the last six months of 1932.
Estimates of approximate employment of factory workers indi-
cate this Subdivsion employed 2,762 in 1929 and an average of
1,610 in 1932, representing a decline of 41.7%, and on the basis of
six months averages employment further declined to an average of
1,322 in the first six months of 1933; although the last figure we
have for August 1933 shows a gain to 11710 workers in that month.
No figures are available on the full time hours per week for the
entire Subdivision. However, figures submitted by the Water Meter
Institute in a special report representing 90% to 95% of the Sub-
division, show that approximately 21% of the wage earners were
working 40 hours or more per week during the month of August,
1933. The average of man-hours maintained by the force of 1,710
factory workers in August, 1933, was approximately 37.8 hours per
week. Consequently the 40-hour provision of the Code will probably
have little influence on further employment until production re-
The wage provisions for the Subdivision, which is operating under
the Code of the Machinery and Allied Products Industry, provide
that employees engaged in plant operations shall be paid as follows:
(1) in cities of more than 50,000 population and their immediate
vicinity, 40 cents per hour; (2) in cities of more than 10,000 but not
more than 50,000 population and their immediate vicinity, which
cities are not in the immediate vicinity of a city of more than 50,000
population, 38 cents per hour; (3) in cities of 10,000 population or
less and their immediate vicinity, which cities are not in the im-
mediate vicinity of a city of more than 10,000 population, 36 cents
per hour, except that employees engaged in plant operations in all
localities in the states of Virginia, North Carolina, South Carolina,
Georgia, Florida, Tennessee, Alabama, Mississippi, Arkansas,
Louisiana, Texas, and Oklahoma, shall be paid not less than 32
cents per hour.
When females do substantially the same work as males or replace
males, they shall receive the same pay. However, no female em-
ployee shall be paid less than 87!"% of the proper rate for the
locality in which employed.
Office boys and girls and apprentices shall be paid not less than
80% of the minimum wage.
Employees other than those engaged in plant operations shall
receive not less than $15.00 per week.
Estimated number of factory workers receiving lcss than desigialcnd hourly raIte
Proposed Percent of number of
minimum workers workers
Proposed for South or cities ranging from- hourly receiving re ing less
wage lecq than than mini-
(cen l) mlnimn mum regard-
50,000 population and over....---- ----..... -------... -------..... 40 20.5 323
10,000 to 50,000 population ....------....--..----------------.... 38 17.8 281
Under 10,000 population.-.......--.----------------.------- 36 15.0 238
Southern minimum ---- ----------------- -----------------32 10.4 165
SOURCE: Water Meter Institute. Special Report, dated August 1933.
Based on the percentages of number of wage earners receiving less
than the designated rates as shown above, the adoption of the pro-
posed minimum hourly rates is expected to cause a small further
increase in the payrolls of this Industry based on the sample dis-
tribution as of August 1933. The estimated increase will probably
not exceed three per cent assuming only upward adjustment in the
brackets below the 40-cent minimum and no further increase in man-
The Code requires that no person under sixteen (16) years of
age shall be employed in this Subdivision.
RESUME OF SUPPLEMENTAL CODE
Article I states the purpose of the Supplemental Code.
Article II accurately defines specific terms applicable to the Sub-
division as used in this Supplemental Code.
Article III provides for the adoption of the employment provi-
sions of the National Industrial Recovery Code of the Machinery
and Allied Products Industry, as approved by you, and as from time
to time amended.
Article IV provides for the adoption of Articles II, VI, VIII, and
IX of the National Industrial Recovery Code of the Machinery and
Allied Products Industry, in accordance with the conditions of this
Article governing their adoption.
Article V provides for the establishment of a Code Authority and
defines its powers and duties.
Article VI provides for an accounting system and methods of cost
finding and 'or estimating.
Article VII provides for methods of setting up, revising, and
filing price lists and discount sheets and terms of sale and payment.
Article VIII sets forth trade practices for the Subdivision.
Article IX. No provision of this Supplemental Code relating to
pricing and marketing shall apply to direct export sales or to any
product destined ultimately for export.
Article X. This Supplemental Code and all the provisions thereof
are expressly made subject to the right of the President, in accord-
ance with Subsection (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule or regu-
lation issued under said Act. Provision is also made that modi-
fications may be submitted by the Code Authority to the Administra-
tor for approval.
Article XI provides means for withdrawal of this Subdivision
from the Basic Code and its continuance as an autonomous Code.
Article XII. No provision of this Supplemental Code shall be so
applied as to permit monopolies, or monopolistic practices, or to
eliminate, oppress, or discriminate against small enterprises.
Article XIII states the effective date of this Supplemental Code.
The Assistant Deputy Administrator in his final report to me on
said Supplemental Code having found as herein set forth and on the
basis of all the proceedings in this matter:
I find that:
(a) Said Supplemental Code is well designed to promote the poli-
cies and purposes 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 provide for the general welfare by promoting the organiza-
tion 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 su-
pervision, 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 temporarily required), by increasing the consumption of
industrial and agricultural products through increasing purchasing
power, by reducing and relieving unemployment, by improving
standards of labor, and by otherwise rehabilitating industry.
(b) Said Subdivision normally employs not more than 50,000
employees; and is not classified by me as a major industry.
(c) The Supplemental Code as approved complies in all respects
with the pertinent 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 Subdivision; and that said association imposes nq
inequitable restrictions on admission to membership therein.
(d) The Supplemental Code is not designed to and will not permit
monopolies or monopolistic practices.
(e) The Supplemental Code is not designed to and will not elim-
inate or oppress small enterprises and will not operate to discriminate
(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 Supplemental Code.
For these reasons, therefore, I have approved this Supplemental
Code, provided that certain provisions relating to price publication
HIGH S. JOHNSON,
A d m inistrator.
IMAY 16, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE WATER METER MANUFACTURING INDUSTRY
A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY
To effectuate the policy of Title I of the National Industrial Recov-
ery Act, the following provisions are established as a Supplemental
National Industrial Recovery Code for the Water Meter Manufac-
turing Subdivision of the Machinery and Allied Products Industry,
and together with the National Industrial Recovery Code of Machin-
ery and Allied Products Industry shall be the standard of fair
competition for this subdivision, and shall be binding on each
"Applicant means the Water Meter Institute, a trade organiza-
tion, which organization is truly representative of this Subdivision,
all members of which are engaged in the manufacture for sale of the
products of the Water Meter Manufacturing Subdivision of the
Machinery and Allied Products Industry.
Industry" means the Machinery and Allied Products Industry,
as defined in its National Industrial Recovery Code as approved by
the President, and as such definition may from time to time be
"Subdivision means this Water Meter Manufacturing Subdivi-
sion of the Machinery and Allied Products Industry as defined and
set forth in Paragraph 35 of Article II of the National Industrial
Recovery Code of the Machinery and Allied Products Industry as
Water Meter Manufacturing Subdivision means the manufacture
for sale of water meters and parts thereof, and includes all those
engaged in such manufacture for sale."
Code means the National Industrial Recovery Code of the Ma-
chinery and Allied Products Industry, as approved by the Presi-
dent, and as from time to time amended.
"Person means a natural person, a partnership, a corporation,
an association, a trust, a trustee, a trustee in bankruptcy, a receiver,
or other entity.
Employer" means any person engaged in the Subdivision either
as an employer of labor or in his own behalf.
Employee r eans any one who is employed in the Subdivision
by any such emptlyer.
The Act" means Title I of the National Industrial Recovery
The President" means the President of the United States.
The Administrator means the Administrator for Industrial Re-
Basic Code Authority" means the Code Authority for the Ma-
chinery and Allied Products Industry as constituted by the Code.
Code Authority means the Code Authority constituted for this
Subdivision as provided by the Code and by this Supplemental Code.
Group Code Authority means the Code Authority for any group
or product classification within this Subdivision, constituted under
the authority of the Code and of this Supplemental Code.
"Publish means to make available to the public.
ARTICLE III-EMPLOYMENT PROVISIONS
The following Articles of the Code, viz: Article III, "Working
Hours "; Article IV, "Wages"; and Article V, "General Labor
Provisions ", are hereby made a part of this Supplemental Code, with
the same effect as if they were written into this Supplemental Code.
ARTICLE IV-ADOPTION OF OTHER PROVISIONS OF CODE
The following Articles of the Code, viz: Article II, Definitions ";
Article VI, "Administration ", to the extent that they shall be appli-
cable to this Supplemental Code as such or as it. may hereafter be
administered as an autonomous Code; Article VIII, Modifications
and Termination "; and Article IX, Withdrawal ", are hereby
adopted and made a part of this Supplemental Code with the same
effect as if they were written into this Supplemental Code.
(a) The Code Authority for this Subdivision shall be constituted
(1) During the period, not to exceed sixty days, following the
effective date of this Supplemental Code, the Code Committee of
Applicant shall constitute a temporary Code Authority. This Com-
mittee shall consist of five members, and the Administrator, in his
discretion, may appoint one additional member (without vote and
without expense to the Subdivision).
(2) Within sixty days after this Supplemental Code shall become
effective the Executive Committee of Applicant shall nominate seven
persons, and the employers not members of Applicant shall have the
right to nominate one person, and all employers at a meeting duly
called for the purpose of which at least ten days' notice by registered
mail shall be given and at which employers shall have the right to
vote either in person or by proxy, shall vote on the eight persons so
nominated, subject to the provisions of paragraph (c) of this Article
V, provided, however, that if the employers not members of Appli-
cant do not exercise the right to nominate one person, the vote at the
meeting shall be on the seven persons nominated by the Executive
Committee of Applicant. The five persons receiving the greatest
number of votes at such election shall constitute the permanent Code
Authority together with the Administrator's appointee (if any)
as referred to in paragraph (a) (1) of this Article V.
(b) Any employer in this Subdivision shall be eligible for mem-
bership in Water Meter Institute.
(c) Any employer in this Subdivision shall be entitled to vote
at the election of, and share in the benefits of the Code Authority,
and may participate in any endeavors of the Code Authority in the
preparation of any revision of, or additions or supplements to, this
Supplemental Code. Each such employer shall pay his proper pro
rata share of the reasonable cost of creating and administering this
Supplemental Code as determined by the Code Authority. Each
such employer shall have one vote.
(d) Employers in this Subdivision having a common interest and
common problems, may be grouped by the Code Authority for
There shall be a group Code Authority approved or appointed by
Code Authority for each such group.
(e) If formal complaint is made to Code Authority, that pro-
visions of this Supplemental Code have been violated by any em-
ployer, the Code Authority or the proper Group Code Authority,
may, to the extent permitted by the Act, cause such investigation or
audit to be made as may be deemed necessary. If such investigation
is made by Group Code Authority, it shall report the results of such
investigation or audit to Code Authority for action.
(f) Code Authority may exercise its functions through such
agents or committees as it may select, to operate under its super-
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 Subdivision. After such system and methods
have been formulated, full details concerning them shall be made
available to all members. Thereafter all members shall determine
and/or estimate costs in accordance with the principles of such
ARTICLE VII-PRICE LISTs
(a) If and when the Subdivision Code Authority determines that
in any group of the Subdivision it has been the generally recognized
practice to sell a specified product on the basis of net price lists, or
price lists with discount sheets, and fixed terms of sale and payment,
each manufacturer of such product shall, within ten (10) days after
notice of such determination, file with Code Authority a net price
list, or a price list with discount sheet, as the case may be, indi.
vidually prepared by him showing his current prices, or prices and
discounts, and terms of sale and payment, and the Code Authority
shall immediately publish and send copies thereof to all known
manufacturers of such specified products.
Revised price lists and/or discount sheets and/or terms of sale
and payment may be filed from time to time thereafter with the
Code Authority by any manufacturer of such product, to become
operative upon the date specified therein, but such revised price lists
and/or discount sheets and/or terms of sale and payment shall be
filed with the Code Authority ten (10) days in advance of the op-
erative date. The Code Authority or Group Code Authority may
establish a shorter period at any time provided no revisions then
waiting operative date shall be affected thereby. Copies thereof,
with notice of the operative date specified, shall be immediately pub-
lished and sent to all known manufacturers of such product, any
of whom may file, if he so desires, revisions of his price lists and/or
discount sheets and/or terms of sale and payment to meet the prices
and/or discounts and/or terms of sale and payment first filed, which
shall become effective upon the date when the revised price list
and/or discount sheet and/or terms of sale and payment first filed
shall go into effect.1
(b) If and when the Code Authority shall determine that in any
group of the Subdivision not now selling its product on the basis
of price lists, with or without discount sheets, with fixed terms of
sale and payment, the distribution or marketing conditions in the
group are the same as, or similar to, the distribution or marketing
conditions in a group where the use of price lists, with or without
discount sheets, and fixed terms of sale and payment is well recog-
nized, and that a system of selling on net price lists or price lists
and discount sheets with fixed terms of sale and payment should be
put into effect in such group, then each manufacturer of the product
or products of such group shall within twenty (20) days after notice
of such determination, file with the Code Authority net price lists
or price lists and discount sheets, with fixed terms of sale and pay-
ment, showing his prices and discounts and terms of sale and pay-
ment, and such price lists and/or discount sheets and 'or terms of
sale and payment shall be published and may be thereafter revised
in the manner hereinbefore provided. Provided that Code Authority
shall make no determination tq place any product of the Subdivision
(not now on a price list basis) on a price list basis, as provided in
this paragraph (b) of Article VII unless affirmative consent to such
determination is given by a 75% vote of employers cooperating in
this Code who are at that time engaged in manufacturing such prod-
uct. The eligibility requirements, method, and effect of such voting
shall be the same as is provided by Article V.
(c) No employer shall sell directly or indirectly by any means
whatsoever, any product of the Subdivision covered by provisions
of this Article VII at a price lower or at discounts greater, or on
more favorable terms of sale and payment, than those provided in
his own current net price lists, or price lists and discount sheets, and
terms of sale and payment which have been filed with Code Author-
ity and which have become effective.
ARTICLE VIII-TRADE PA.\nICES
Each of the following acts and practices is deemed to be inimical
to the best interests of the Industry, and of the public, and each is,
therefore, hereby declared to be, and to constitute, an unfair method
of competition, viz:
See paragraph 2 of order approving this Code.
(a) The secret payment of any rebate, credit, subsidy, or dis-
count, in money or otherwise, with intent to influence any sale.
(b) The payment, or promise to pay, to any agent, fiduciary, or
representative, any money or valuable thing, with or without the
knowledge of his principal, for the purpose of improperly influenc-
ing any sale to his principal, provided that this paragraph 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 hereinabove defined.
(c) Untruthfully advertising, representing, or marking any prod-
uct with intent to deceive or mislead.
(d) The publishing or circularizing of any threat of suit for
infringement of patent or trade-mark, or of any other legal pro-
ceedings, not in good faith, which would tend to harass a competi-
tor or intimidate his customers.
ARTICLE IX-SALES FOR EXPORT
The provisions of this Supplemental Code concerning pricing and
marketing shall not apply to direct export sales of any product. A
similar exemption may be granted by the Code Authority as to
sales of any product destined ultimately for export. Unless other-
wise determined by the Code Authority the term "export shall
include all shipments to all places without the several states of the
United States and the District of Columbia; provided, however,
that no shipment to any territory or possession of the United States
shall be considered an export when any employer is engaged in the
Subdivision in such territory or possession.
(a) As provided by Section 10 (b) of the Act, the President may
from time to time cancel or modify any order, approval, license,
rule or regulation issued under Title I of the Act.
(b) Any amendments, additions, revisions, or supplements of
this Supplemental Code, proposed by Code Authority, and ap-
proved by 75% of the employers shall be in full force and effect upon
approval by the Administrator. The eligibility requirements,
method, and effect of such voting shall be the same as provided by
As is provided by Article IX of the Code, upon 30 days' notice
to Basic Code Authority and to the Administrator, this Subdivision
may, upon the affirmative vote of not less than two-thirds of the
employers within this Subdivision, withdraw from the jurisdiction
of Basic Code Authority. After and in event such withdrawal is
accomplished, this Supplemental Code, together with the provisions
of the Code, except such portions of Articles I, II, VI and VII as
are not pertinent thereto as determined by the Code Authority
and the Administrator shall become and be the Code governing
this Subdivision, and the Code Authority shall for this Subdivision
become and be the only Code Authority, and shall perform all the
functions with respect thereto.
Applicant imposes and shall impose no inequitable restrictions
on membership therein. The Supplemental Code presented by it
is not designed to promote monopoly, and shall not be so construed
or applied as to oppress or eliminate small enterprises or discrimi-
nate against them, and is designed to effectuate the policy of the Act.
ARTICLE XIII-EFFECTIVE DATE
This Supplemental Code shall become effective and binding on all
persons engaged in the Subdivision on the eleventh day after its
Approved Code No. 347-Supplement No. 8.
Registry No. 1320-01.
UNIVERSITY OF FLORIDA
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