Approved Code No. 401 Registry No. 1209-1-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

COPPER INDUSTRY 

AS APPROVED ON APRIL 21, 1934 

WE DO OUR PAR't 

UNIV. OF· FL LIi. 

- -· .... 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For 1sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 centa 

✓ 
• 

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. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga. : 504 Post Office Building. 

Birmino-ham, Ala.: 257 Federal Building. 

Boston, l\lass. : 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

Charleston, S.C.: Chamber of Commerce Building. 

Chicago, Ill.: Suite 1706. 201 North \Yells Street. 

Cleveland, Ohio: Chamber of Commerce. Dallas, Tex. : Chamber of Commerce Building. 

Detroit, l\lich.: 801 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Inclianapoli., Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kan:as City, 1\Io.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Loui ville, Ky.: -!08 Federal Building. 

Memphis, Tenn. : 229- FedPral Building. 

Minn npolis, Minn. : 213 Federal Building. 

New Orlean~, La.: Room ~5-A, Customhouse. 

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philaclclphia, Pa.: 422 Commercial Trust Building. 

Pittsbur-gh, Pa.: Chnmber of Commerce Building, 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo. : 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

1 Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 401 

CODE OF FAIR COMPETITION 

FOR THE 

COPPER INDUSTRY 

As Approved on April 21, 1934 

ORDER 

APPROVING Co DE OF FAIR COMPETITION FOR THE Co PPER 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 Code of 

Fair Competition for the Copper Industry, and hearings having been 

duly held thereon and the annexed report on said Code, containing 

findings with respect thereto, having been made and directed to the 

President: 

NOW, 'THEREFORE, on behalf of the President of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the President, including Executive Order 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 purposes and policy 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 (1) the provisions of Article VII be deleted entirely and there be substituted 

therefor the following to be called 'New Article VII': 

NEW ARTICLE VII-MARKETING PROVISIONS 

1. Sales to be covered and reported.-The provisions of this Article 

shall apply only to sales of duty free copper for domestic consumption 

except as provided in subsections (17) and (18) of Section 6 hereof. 

All sales of copper for domestic consumption shall be reported to the 

Sales Clearing Agent, and charged against sales quotas as hereinafter 

provided for, provided however, the tonnage of all other sales of 

duty free copper shall also be so reported. 

2. Filing of prices.-At least two days prior to the effective date of 

the establishment of any sales quota pursuant to the provisions of 

this Code, each party to whom such sales quota has been assigned 

shall file with the Sales Clearing Agent a statement showing his selling 

price of copper, as herein defined, together with his existing differentials. Not later than during business hours of the day preceding the 

54397°-482-142-34 (379) 
380 

effective date of the establishment of sales quota, the Sales Clearing 

Agent shall notify each member of his filed price and differentials, 

and also those of all other members, to become effective the next day. 

Thereafter selling prices and/or differentials may be changed by giving 

notice thereof to the Sales Clearing Agent prior to two o'clock P.M. 

(New York City time) on any business day except Saturday, which 

riew price and/or differentials shall be effective at the beginning of 

business on the next business day. Notice to others shall be giYcn in 

each case, as above provided. After notice of any such change of 

price and/or differential has been received by the Sales Clearing Agent 

any other party having a sales quota may give like notice during the 

balance of that day and in such case all such new prices and/or differ- entials shall become effective at the beginning of business on the following business day. After the effective date of this Code no sales 

of copper shall be made u.t a price or differential other than that speci- fied by the seller in his filed statements and in effect at the time of the 

sale. The Code Authority shall have the average weighted sales price 

computed each day and immediately furnish it to the trade papers 

and public press as the "Quotation issued by the Code Authority for 

Copper offered for sale in the Domestic Market pursuant to the provisions of the Copper Code", and the trade papers and public press 

shall be requested to use this quotation only for copper so offered, and 

to issue a separate quotation for copper not offered for sale pursuant 

to the proYisions of this Code. The Code Authority with the approval 

of the Administrator, or the Administrator on his own initiative, may 

from time to time make such other rules and regulations with reference to filing of prices and/or differentials and the averaging and 

publication thereof as it may deem necessary. 

3. Filing of treatment charges by secondary producers.--In addition 

to selling prices as filed there may, and upon request of any two 

producers of secondary copper there shall, be filed by producers of 

secondary copper a schedule of treatment charges covering the 

different grades of scrap material and these may be amended in the 

same manner as any other filed prices. Custom smelters and/or 

refiners shall not treat on toll any secondary copper-bearing material 

except: 

(a) Scrap or other similar material produced by fabricators or 

manufacturers in the normal course of fabricating operations and 

tendered by such fabricators for treatment and return to them, or 

(b) Scrap or such other material, the treatment of which is the 

subject of contracts entered into prior to March 12, 1934, or renewals 

thereof if approved by the Code Authority for exception. 

(c) The Code Authority with the approval of the Administrator 

may make other exceptions upon request by the custom smelters 

and/or refiners. 

By "treatment on toll" is meant treating material for a service 

charge payable in money or metal, and returning the copper content 

in refinery shapes only or its equivalent, in whole or in part. 4. Relief against excessive selling price.-If at any time during the 

effective period of this Code the selling price of copper shall reach a 

level which in the judgment of the Code Authority or the Adminis- trator is deemed to be unreasonably high, considered both ·with respect 

to the cost of production and ,\r:ith respect to the consuming public, 

the Code Authority with the approval of the Adrninis rator, or the 
381 

Administrator on his own initiative, may temporarily suspend any or 

all of the marketing provisions contained in this Article VII as shall 

be deemed most effective in the holding of the prices to reasonable 

levels and in the event such action is deemed to be necessary any such 

stay may be made permanent. 

5. Exemption from sales plan.-If at any time during the effective 

period of this Code anyone holding a sales quota thereunder shall, by 

virtue of the operation of the Sales Plan, have acctunulated a deficit 

in his allocated sales in the aggregate equal to one full month's sales 

quota of such party, and he shall have notified the Code Authority of 

the existence of such deficit, and if thereafter such deficit should 

increase to an amount equal to the party's sales quota for one and 

one-third months, then upon the party giving a supplemental notice 

of the fact to the Code Authority, after an interval of at least ten days 

after said preliminary notice, all the provisions of this Article VII 

shall terminate, including the agreements referred to in subdivision 6, 

subsection 12, paragraph (c), of this Article VII. 

6. Sales plan-quotas and allocation.-(!) From and after the effective date of this Code all sales of copper by those governed by this 

Code shall be made in conformity with the provisions of this Article 

VII. 

The Administrator upon his own initiative, or the Code Authority 

with the approval of the Administrator, may establish rules and regulations to effectuate the purposes of the Sales Plan. Until the establishment of such rules and regulations by the Code Authority the 

Sales Clearing Agent shall set up rules and regulations which in his 

judgment are designed to carry out the spirit and intent and general 

purposes of the Sales Plan, subject to the review and disapproval of 

the Administrator. The purpose of this Sales Plan is to provide in 

so far as possible a first place in sales for current production and 

then to provide for a fair and equitable sale of stocks. 

(2) Until such time as the Code Authority may determine that such 

member has failed to comply with the provisions of this Code and 

such determination has been approved for the purpose by the Administrator, the monthly sales quota for each primary producer of 

the industry listed below and the relative annual productive capacities 

of such members, arrived at solely for the purpose of establishing 

sales quotas~ shall be as follows: 

Kennecott Copper Corporation ____________ _____ _______________________ ________ _ Anaconda Copper Mining Company _________________________ ___ _______________ _ Phelps Dodge Corporation _____________________________________________________ _ United Verde Copper Company ______ ____________________________________ _____ _ Calumet & Hecla Consolidated Copper Company ______ ________________________ _ 

United ~~~r::~ g~~~~~ Verde Extension g~:~!~i~ Mining ~==== ========== Co __________ ===== ___============ _______________________________ == == ========== ====== == _ Consolidated Coppermines Co _________________________________________________ _ Copper Range Company ___________________ ___ ___________ ______________________ _ 

Tons Monthly 

per annum sales quotas 

366,500 

225,000 

168,000 

68,000 

50,000 

36,000 

25,000 

24,000 

21,000 

17,500 

Percent 

1. 67 

1. 67 

1. 67 

1. 90 

2.20 

2.30 

2.50 

2.50 

2. 70 

3. 00 

(3) In addition to the sales quotas provided above an aggregate 

sales quot.a of 9,500 tons per n1onth shall be allocated as individual 

sales quotas among the producers of secondary copper by some 

equitable method agreed upon by such producers and approved by 
382 

the Code Authority. In the event the producers of secondary copper 

are unable to agree then such allocation shall be made by the 

Administrator. 

(4) Any producer who shall assent to the Code and/or Sales Plan 

who is entitled to, but has not received, a sales quota may apply for 

a sales quota. If, however, the product of such J,>roducer is treated 

by a custom smelter or refiner such custom smelter or refiner may, 

if the producer shall fail to apply for a quota, make application in 

its name but for the account of such producer. During the first sales 

period each producer of custom and by-product copper shall have 

a quota equal to fifty (50%) percent of the copper produced and 

treated at the treatment plant. The allocation of such quota in the 

amount of fifty (50%) percent of the production treated during such 

first sales period shall not serve as a precedent or in any way be controlling in the determination of the sales quota applied for by any 

such producer for the period subsequent to said first sales period. 

(5) The Code Authority shall have no power to decrease sales 

quotas established pursuant to subsections (2) and (3), of this Section 

6, save upon unanimous vote of the Code Authority and the consent 

of the party or parties whose quotas are to be thereby decreased. 

But the Code Authority upon a two-thirds vote of its membership 

and with the approval of the Administrator, may increase any such 

sales quota. In the event the sales quotas of primary producers are 

generally increa8ed they shall be increased ratably to the end that 

the increase for each individual producer will be such as to arrive 

simultaneously at a sales quota equal to fifty (50%) percent of their 

respective capacities; and further in the event of any increase in 

quotas of primary producers proportionate increases shall be made in 

the sales quotas of secondary producers as shall be justified by the 

then existing conditions. 

Nothing contained herein, however, shall be construed so as to 

limit the right of the Administrator at any time after proper notice 

and giving all parties an opportunity to be heard, to make such change 

as he may deem necessary in the sales quotas, or Sales Plan provided 

for herein. 

(6) Until a change is approved by the Administrator and the Code 

Authority, or by the Administrator alone, the aggregate sales quotas 

given pursuant to Subsection (2) and Subsection (4) of this Section 6 

shall not exceed twenty thousand five hundred (20,500) tons per 

month. 

(7) Allocations of sales must be accepted by those holding sales 

quotas provided they have copper available for delivery within the 

delivery period covered by such allocation, except as provided in 

Subsection (14) hereof. A member unable to accept a sales allocation 

shall have no right subsequently to make up the deficiency, except 

that if any producer or producers of secondary copper have been 

unable to accept future sales allocations beyond the current month 

to the same extent that such future allocations have been accepted by 

primary producers, then commencing with the first of the month for 

which such future sales allocations have been made all sales subject 

to allocation shall be allocated to such secondary producers to the 

exclusion of primary producers to the extent of the current intake of 

such secondary producers until such time as each of the secondary 

producers are brought into a proper relation with such prima,ry pro-
383 

queers as regards such allocated sales, provided, that this provision 

shall not be applied so as to give any producer of secondary copper a greater allocation of sales than if it had accepted all such future 

allocations. 

(8) Sales as made shall be proportionately applied to sales quotas 

for the current month and at the end of the month unsold sales quotas 

shall be carried forward for sale and allocation during the following 

month, except that the unsold quotas carried forward at the end of 

each month for each seconqary producer shall be adjusted to eliminate 

the tonnage by which its shortage of accumulated actual secondary 

intake as compared with its accumulated sales quota exceeds its sales 

quota for one and one-half months. If sales quotas for the current 

month have been sold then all sales in excess thereof shall be applied 

to the subsequent month for ,vhich the sales quotas have not been 

completely sold so that sales shall be applied to sales quotas for the 

current month, then to each of the two succeeding months. After the 

sales quotas of the current month and next two months have been 

sold, further sales during the current month shall be allocated to and 

applied to copper stocks; provided, however, that prior to a general 

allocation to copper stocks there shall first be set aside fifty percent 

(50%) of all sales then to be allocated to copper stocks, which fifty 

percent (50%) shall be divided so that two-fifths shall go to secondary 

producers in proportion to their respective holdings of secondary 

copper accumulated since October 1, 1933, but limited in any event to 

such accumulations, and three-fifths to by-product and other primary 

stocks, and then the remaining fifty (50%) percent (or whatever larger 

amount there may be available pursuant to the foregoing) shall be 

allocated to copper stocks generally and not to sales quotas. The 

Code Authority shall propose a plan for the handling of such allocations to stocks generally which shall be effective when approved by 

the Administrator, and which shall provide for the disposal of such 

accumulations by an orderly liquidation, and such sales from stocks 

shall be Blue Eagle Copper within the meaning of this Code. 

(9) The sale of copper by any member of the Industry without 

first having received an assignment of a sales quota pursuant to the 

provisions of this Code, or otherwise in contravention of any of the 

provisions of this Code, shall be a violation of this Code; provided, 

however, that holders of copper who are without sales quotas and 

who are unable to obtain sales quotas and custom smelters and/or 

refineries whose intake is in excess of their sales quota and to the extent of such excess may sell such copper but it shall not be eligible 

to be called Blue Eagle Copper and shall not be considered copper 

offered for sale pursuant to the provisions of the Copper Code, and 

all invoices and papers covering such transactions shall be plainly 

marked "The copper covered in the transaction is Not Blue Eagle 

Copper and is Not qualified to be used in the manufacture of any 

articles for sale to the U.S. Government as provided for in the President's Order of Approval for the Code of Fair Competition for the 

Copper Industry." All sales of copper, however, shall be promptly 

reported to the Sales Clearing Agent of the Code Authority. 

(10) It shall be a violation of this Code for any member of the 

Industry by any transaction with another member to buy, sell, 

exchange or receive any stocks of copper so as thereby to be allowed, 

or enable another to participate in the Sales Plan and/or receive a 
384 

sales quota and dispose of copper pursuant thereto, to an extent or 

in such manner as would not otherwise have been possible if such 

purchase, sale, exchange or receipt of copper had not taken place, 

provided, however, that this provision shall in no manner prohibit 

the bona fide sale of copper produced by the seller or owned by it on 

the effective date of this Code, in the event that such sale is made 

pursuant to the other provisions of this Code. 

(11) All allocations of sales quotas and stock shall be made by the 

Sales Clearing Agent. A computation shall be made by the Sales 

Clearing Agent daily of the percentage of sales applied to each sales 

quota in relation to the aggregate of all quotas and a daily allocation 

shall be made at the average price of all sales made on that date, 

after making such eliminations and additions, as to sales, as may be 

required by virtue of the other provisions of this Code. In the event, 

at the end of the month, sales and purchases are necessary between 

those holding sales quotas in order to adjust actual sales to sales 

quotas, they shall be made pursuant to the daily computations and 

allocations made by the Sales Clearing Agent during that month. 

Proper allowance shall be made by the Sales Clearing Agent for differentials including freight charges, varying types and quality of copper, 

sales commissions, and time of delivery. Full information may be 

obtained upon request from the Sales Clearing Agent concerning 

any such computations or allocations. 

(12) In order to maintain the proper relation between sales and 

production: 

(a) Any primary producer in operation and producing copper on 

the effective date, or any other primary producer not producing 

copper on that date but which after the effective date resumes such 

production, which fails to produce its sales quota reasonably averaged 

over a period of three months, or such longer period as the Code 

Authority or the Administrator may have approved, shall thereafter 

lose its right to participate in the allocation of sales by the Sales 

Clearing Agent proportionately to the extent of such decrease in production; provided, however, that the foregoing provision shall not 

apply in the event of a shutdown or decrease in production on account 

of causes beyond the control of the producer or for any reason which, 

in the opinion of the Code Authority and the Administrator, or the 

Administrator on his own initiative, justifies such shutdown or 

decreased production; provided, further, that in addition to limitation on sales of primary copper provided in this Article VII primary 

producers shall limit their production so as to conform to the plan and 

purpose of this Code, and to coordinate the production of primary 

copper with current sales, quotes in order to avoid excessive accumulation of stocks and any failure reasonably so to do to the satisfaction 

of the Code Authority shall be a violation of this Code. 

(b) No specific limitations or requirements shall be imposed upon 

the intake of secondary copper producers, but in lieu thereof sales of 

secondary copper shall be controlled and limited as provided in this 

Article VII. Custom smelters and/or refiners shall endeavor, so far 

as practicable, to limit their intake of secondary copper so as to conform to the plan and purpose of this Code, and to coordinate the flow 

of copper and of intake material with current sales quotas in order to 

avoid excessive accumulation of stocks. 

(c) All consumers of copper, including fabricating or manufacturing 

companies owned or controlled by producers who are members of the 
385 

Industry, shall be urged by the Code Authority to assist in the 

stabilization of the Industry by regular monthly purchases of copper 

in as large an amount as may be practicable in each case, and shall be 

similarly urged to enter into agreements to make such purchases. 

Upon the execution of such an agreement by a copper consumer in 

form and substance satisfactory to the Code Authority, or the Administrator, and for so long as the terms of such agreement are complied 

with, and no other copper other than Blue E agle Copper is purchased, 

all copper sold and/or fabricated by such consumer shall be "Blue 

Eagle Copper", as defined herein. The Code Authority of this 

Industry shall cooperate with the Code Authority and/or Supervisory Agency of the Copper and Brass Mill Products Industry and 

the vVire and Cable Subdivision of the Electrical Manufacturing 

Industry in effectuating the purposes of the marketing and fair trade 

practice provisions of this Code. . (d) For the purpose of the Sales Plan, sales and/or transfers of 

copper by a member holding a sales quota (including any of its subsidiaries or affiliates) to its fabricating plants or to any subsidiary 

fabricating company, shall not be subject to said plan, except to the 

extent set forth in agreements made by the fabricating subsidiaries 

of such producer under the terms of the preceding paragraph (c); 

provided, however, that in case a member owning a fabricating plant 

or the fabricating subsidiaries of any one holding a sales quota should 

fail to make an agreement under the terms of the preceding paragraph 

(c), the sales of copper by that member shall be determined by the 

Administrator or in the event of his unwillingness to act, by the Code 

Authority. 

(e) In order to provide equitably for an increase in employment 

by increasing current production and/or to facilitate liquidation 

of excessive copper stocks in a manner which will not interfere with 

the operation of the Sales Plan pursuant to the provisions of this 

Code, the Code Authority, with the approval of the Administrator, 

may negotiate bulk sales of copper to, through, and/or with the approval of government agencies, provided, however, that no commitment shall be made for or become binding on any member of the 

Industry unless he shall accept the allocation made to him by the 

Code Authority of his proportionate share of any sale so negotiated, 

except to the extent he is obligated to sell copper under the provisions 

of this Code. 

(13) All sales of copper n1ade during the period from lviarch 22, 

1934, to the effective date of this Code shall be deemed for the purposes of the Code to be sales made a.f ter the effective date and shall 

be allocated in accordance with the Sales Plan provided for herein. 

All sales commitments under subsection (c) of Section 12 of this 

Article shall also date from March 22, 1934, and be included in the 

first sales period. 

(14) In order to facilitate the sale of the aggregate of all sales quotas 

in any current n10nth, any one having a sales quota may, prior to 

the first of each month, vvith the approval of the Code Authority, 

waive his sales quota or any part thereof, for the following month. 

(15) In no even t, however, shall any nrnmber of the industry be 

required to accept allocation of sales made pursuant to the Sales 

Plan which will require him to reduce the an1ount of copper stocks 

held by him and unsold on March 1, 19341 less stocks liquidated by 

54397°--482- 142-34--2 
386 

such member since that date, by more than 25% thereof, but no 

such limitation shall apply until the Code Authority receives notice 

from any such member of the Industry that further sales will require 

him to reduce his stocks beyond that percentage. 

(16) The first sales period shall be deemed to terminate on the 

last day of the current month in which the effective date of the Code 

occurs, subject to the provisions of subsection (13) of this Section 6 

and accordingly the first sales period shall extend from March 22, 1934, 

to the last day of the month in which such effective date occurs. 

The sales quota for such first sales period shall be decreased or increased as the case may be if necessary so as to bear the proper proportion to the nun1ber of days in such first sales period. 

(17) In addition to other limitations which may exist pursuant to 

other provisions of this Code, the Code Authority with the approval 

of the Administrator, or the Administrator on his own initiatiYe, may 

make rules and regulations governing any sales of copper in excess 

of sales quotas, which may limit the quantity of copper which may 

be sold and may also make such provisions as may be necessary to 

prevent excessive purchases by consumers in relation to their reasonable requirements for the immediate future; provided, however, 

that no provisions shall prohibit any ·member of the Industry from 

selling the full production requirements of any of its subsidiary 

fabricating companies. 

(18) No member of the Industry shall engage in destructive price 

cutting. 

(19) Whenever, upon complaint or on its own initiative without 

complaint, and after affording an opportunity to any interested party 

to be heard, the Code Authority is of the opinion that an emergency 

exists within the Industry in that destructive price cutting and/or 

excessive production is being engaged in to such an extent as to 

render ineffectual or seriously endanger the effectuation of the pur- poses of this Code or of the Act so as to require the establishment of 

minimum prices for the sale of copper and/or regulation of production, the Code Authority shall certify any such conclusion to the 

Adnlinistrator and, upon his approval thereof, after hearing on such 

notice as he may prescribe, such minimum prices and/or regulation 

of production n1ay be established and the Code Authority may adopt 

rules and regulations satisfactory to the Administrator governing 

the establishment of such minimum prices for the sale of copper and/or 

regulation of production based on such factors and/or conditions as 

may be found necessary to meet such emergency; provided, however, 

that no provision of this Code or of any rules and regulations which 

may be pro1nulgated pursuant thereto shall be interpreted so as to 

require any member of the Industry to reduce his production below 

his sales quota as originally established pursuant to the proYi ions of 

this Code. When a minin1um price as herein provided for hall be 

established any sale belo-w such price ·will be considered destructive 

price cutting and a violation of this Code; and (2) there shall be 

added to, and as a part of Article VIII the follo~ring proYision: 

In order to facilitate the enfor ·enrnnt of the Executive Order of the 

President No. 6246, dated Augu t 10, 1933, and the ExecutiYe Order 

of the President No. 6646, dated 11arch 14, 1934, concerning Government Contracts for supplies, and to effectuate the purpose of the Act 

and this Code, it is pro-vided that: 
387 

(a) Only copper sold pursuant to the marketing provisions of this 

Code shall be entitled to be called "Blue Eagle Copper" and only 

"Blue Eagle Copper" shall qualify as complying with the Executive 

Orders above referred to. Certificates for the purpose of complying 

with said Executive Orders of the President shall provide that all 

articles covered by such certificates shall be completely free of any 

copper save "Blue Eagle Copper." 

(b) For no other purpose of this Code shall copper be deemed to be 

such copper as has been sold pursuant to the provisions of this Code 

if the same shall contain any copper other than ·'Blue Eagle 

Copper." 

(c) The Code Authority, or the Administrator, shall provide rules 

and regulations for determining the eligibility of copper to be called 

"Blue Ea,gle Copper." 

(d) All '' Blue Eagle Copper " shall either be stamped with the 

replica of the N.R.A. insignia when such copper passes through the 

smelter and/or refinery, or be accompanied by a certificate by such 

smelter, refiner, and/or Code Authority that such copper is "Blue 

Eagle Copper." 

(3) The last sentence of Section 2, Article IX, shall be changed to 

read as follows: '' Any action taken by the Coordinating Committee 

under any of the provisions of this Article IX shall be subject to the 

approval of the Administrator"; and 

(4) The last two sentences of Section 5 (d), Article VI, which impose 

the costs of investigation, examination, or audit on a member of the 

Industry complained against if the complaint is justified and on a 

complainant member of the Industry if the complaint is not justified, 

shall be effective only as to those members of the Industry who shall 

have assented to the Code. 

Approval recommended: 

K. M. SIMPSON, 

HUGH S. JOHNSON, 

Administrator for Industrial Recovery. 

Division Administrator. 

WASHINGTON, D.C. 

April 21, 1934. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

SrR: This is a report on the Code of Fair Competition for the 

Copper Industry, as revised after a Public Hearing conducted in 

Washington, D.C., on March 12 and 13, 1934, adjourned and recon- vened on March 20, 1934, in accordance with the provisions of the 

National Industrial Recovery Act. 

GENERAL STATEMENT 

Before outlining in detail the provisions of this Code it seems 

appropriate to describe the condition of the Industry and some of the 

problems facing it. 

Copper is practically an indestructible metal. Nearly all the copper 

that has been mined is either in use or available for use. Refined 

copper is derived from two sources, primary or new copper produced 

from mining operations, and secondary copper resulting from the 

reprocessing of materials containing copper which is flowing back t o 

the market in the form of junk or scrap. In recent years secondary 

copper has supplied about twenty percent (20%) of the total con- · sumption. However, the flow of scrap back on the market is not in 

direct proportion to consumption and in the last year the percentage 

of scrap has been somewhat higher. 

Copper is mined in many states. The more important, and prac- tically the only mines in operation are located in Arizona, Utah, 

Montana, Nevada, New 11:exico, and Michigan. 

The annual production capacity of domestic mines is approximately 1,000,000 tons of copper per year. To this must be added an 

estimated production of 125,000 tons of secondary copper. As of 

January 31, 1934, stocks of copper amounted to approximately 

775,000 tons. Subtracting from these stocks, normal mill inventories 

and future sales commitments, there was approximately 450,000 tons 

of free stocks on hand. 

If the probable production of copper from scrap was added to the 

free stocks there would be 575,000 tons of copper on hand at the end 

of the next twelve months less actual consumption. With an esti- mated consumption of 400,000 tons per year, it is apparent that there 

is copper on hand or coming in the market frorn scrap to take care of 

domestic requirements for eighteen months without any current mine 

production. 

In other words, if all the copper mines were to shut down for eighteen 

months there would be sufficient copper available for all estimated 

needs during that period. 

The number of people employed in the Industry averaged about 

45,000 per year for the period from 1923 to 1929 inclusive. Since the 

latter date employment has gradually decreased. There were 

approximately 16,000 employees in 1933. 

(388) 
389 

A large number of those employed in the Industry live in commu-' 

nities built around the mines. In most cases there is no other type of 

employment available in the community. The falling off of employment has been felt very acutely and has resulted in great hardships, 

distress and suffering. It is imperative that current production be 

maintained at a rate equal to current consumption, in order to keep 

as many as possible employed. To do this it is necessary to freeze 

a large part of the existing stocks and a plan is provided that should 

accomplish this. 

Another factor in the situation is the development of large copper 

deposits in Africa. The copper produced from this source together 

with Canadian and South American production is enough to care for 

world require1nents. Due to low labor costs this foreign copper is 

produced at a price that this country has difficulty in meeting. 

The United States price of copper at refinery for the last fifteen 

years has been as follows: 

Prices in cents per pound 

Year High Low Yearly Year High Low Yearly 

average average 

1919 ________________ 22.319 14.856 18.691 1927 _____ __ _________ 13. 774 12.370 12.020 1920 ______ __________ 18.918 13. 188 17.456 1928 ________ _______ _ 15. 844 13.823 14.570 

1921 ________________ 13. 555 11. 634 12. 502 1929 ________________ 21. 257 16. 603 18. 107 

1922 ________________ 14. 074 12.567 13.382 1930 ________________ 17. 775 9.597 12.982 1923 ___ _____________ 16.832 12.574 14. 421 1931 ________ ___ ____ _ 9.854 6.558 8. 116 1924 ___ __________ ___ 14.260 12. 327 13. 024 1932 _____ _________ __ 7. 060 4.813 5.555 1925 _____ ___________ 14. 709 13. 252 14. 042 1933 ___ ____________ _ 8. 775 4. 775 7.025 1926 ________________ 14. 174 13.302 13. 795 

Prior to 1919 the lowest average yearly price was 9.56¢ per pound 

in 1894. The normal price heretofore has been about 13¢ per pound. 

Copper has maintained a reasonable relation to the value of gold. 

The present market price in terms of gold is under five cents per 

pound. 

Improved equipment, mining mill and smelting practices have 

gradually reduced the cost of producing copper but the present 

average cost including reasonable depletion is in excess of the present 

selling price. 

The Industry, faced with these problems of excessive stocks, low 

consumption and a depressed price, has endeavored ever since the 

passage of the National Industrial Recovery Act, to work out a Code 

that would offer a solution to their difficulties. The Industry was 

unable to agree among themselves on a plan and finaJly submitted a 

Code covering only the labor, administrative, and mandatory provisions, with the permissive right to submit to the Administration at 

a later date a plan agreeable to all members to cover problems of 

production, sales and price. 

The National Recovery Administration felt however, that in view 

of the necessity of maintaining employment, and to provide for an 

orderly recovery through regular purchases of copper and the freezing 

of existing stocks, a plan should be provided and made effective 

immediately to accomplish this end. 

There is therefore, included in the Administrative Order of 

Approval a plan which it is believed ·will accomplish this and the Industry has indicated a willingness to cooperate in making this effective. 
390 

WAGES AND HOURS 

A 40-hour week averaged over three months is established and 

provision 1nade for an impartial investigation to be made covering 

the averaging feature. 

Wage rates ranging from 30¢ to 47}6¢ per hour are established. 

Eguitable adjustments are to be made in all wage rates above the 

mmimum. It is further provided that in no event shall any wa.ge 

rates be reduced. No one under 18 years of age shall be employed 

except in clerical and similar office work where an age limit of 16 

years is set. 

ECONOMIC EFFECT OF THE CODE 

Copper is largely used in the Capital or Durable Goods Industry 

and any increase in consumption is dependent upon increased activity in these branches of Industry. 

While it is impossible under present conditions to provide for any 

but a slight increase in employment the Code provisions will undoubtedly prevent the closing of mines now in operation, avoid 

destructive price cutting, and at the same time provide adequate 

control of prices in the public interest. 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 

having found as herein set forth and on the basis of all the proceedings 

in this matter: 

I find that: 

(a) Said Code is well designed to promote the policies 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 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 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 Industry normally employs not more than 50,000 employees; and is not classified by me as a major industry. 

(c) The 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 Industry; and that said association imposes no inequitable 

restrictions on admission to me1nbership therein. 

(d) The Code is not designed to and will not permit monopolies or 

monopolistic practices. 
391 

(e) The Code is not designed to and will not eliminate or oppress 

small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have not 

been deprived of the right to be heard prior to approval of said Code. 

For these reasons, therefore, I have approved this Code.· 

Respectfully, 

APRIL 21, 1934. 

Hum-r S. JoHNSON, 

Administrator. 
CODE OF FAIR COMPETITION FOR THE COPPER 

INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act the following provisions are established as a Code of 

Fair Competition for the Copper Industry, and shall be the standard 

of fair competition for such industry and binding upon every member 

thereof. 

ARTICLE II-DEFINITIONS 

. As used in this Code, words and phrases have the following meanmgs: 

1. The term 'Copper Industry' or 'Industry' includes the mining, 

production, treatment, and/or sale of copper in the United States, but excludes (1) the fabrication thereof or the sale thereof in fabricated 

form, and (2) such minor operations either in whole or in part in 

reh.tion to se0ondary copper as will not jeopardize or materially affect 

the purpose of the Code, the exclusion of which may be specifically 

approved by the Administrator. 2. The term "member of the Industry" or "member" means 

anyone engaged in the Copper Industry or in one or more of the phases 

involved thereip.. 

3. The term "copper" includes lake copper, electrolytic copper, casting and best select (fire-refined) copper of whatever grade, bessemer, blister and black copper of whatever grade, but does not 

include fabricated copper in any form. The term "Copper" does 

not include casting copper produced from scrap by :fire-refining 

suitable for casting purposes in foundry use and for copperizing steel 

but not suitable for rolling or drawing or for use in copper or brass 

sheet, wire, tube or rod mills. 

4. The term "Primary Copper", as distinguished from secondary 

copper and by-product copper hereinafter defined, means new copper 

derived or procured after the effective date of the Code from mining 

or metallurgical operations in the United States, including copper 

commonly ~own as "Custom Copper" produced from the same 

sources as pnn1ary copper. 

5. The term "Secondary Copper" or "Secondary Metal ", as 

distinguished from primary copper and by-product copper as herein 

defined, means th:1t copper produced in the United States by smelters 

and refiners by re-working scrap-copper, scrap-brass, and scrap alloys 

containing copper, excluding any copper classed as copper stocks on 

the effective date of this Code. 

6. The term "By-Product Copper" means copper produced or 

recovered incidental to or as a by-product in the tre:1tment and recovery of other metals or materials, from ores, concentrates or 

iron pyrites. 

(392) 
393 

7. The term "Custom Copper" means primary copper produced 

by custom smelters and/or refiners from purchased ores, concentrates, 

matte or blister copper derived from primary sources. 

8. The term "Fire-Refined Copper" means copper producetl from 

copper-bearing material, either primary or secondary, through treatment by fire for the purpose of removing impurities. 9. The term "Lake-Copper" means fire-refined primary copper 

produced in the State of Michigan. 

10. The term "Primary Producer" means any member of the 

industry who is a producer of primary copper. 

11. The term "Custom Smelters and/or Refiners" means those 

members of the industry, sometimes hereinafter referred to as "Secondary Producers " or "Producers of Secondary Metal", who have 

facilities for production of electrolytic copper and who receive primary 

ores, copper concentrates, blister copper, scrap copper, junk copper 

and/or by-product copper for processing into copper, either charging 

the shipper a treatment charge and returning the resulting copper 

to the shipper or purchasing the material outright and selling the 

copper produced therefrom to consumers. 

12. The term "Production" in relation to primary copper means 

the resulting finished merchantable product derived from the treatment of ores, concentrates and other copper-bearing or partly processed material together with any substantial increase in copperbearing material above ground or removed from the mine, without 

duplication. The intent of this method of computation as to primary 

copper production is to correlate actual mine production with production as defined and as limited herein, and without allo-wing an intermediate accumulation of ores, concentrates or partly processed 

material. 

13. The term "Intake", in relation to secondary copper means the 

tonnage of secondary copper priced each day by Custom Smelters 

and/or Refiners; not including any pricings of custom copper and/or 

of by-product copper. 

14. The terms "Stocks of Copper", "Copper Stocks" or "Stocks" 

mean stocks or inventories of copper, as defined, in the United States, 

in the hands of members of the industry and their owned or controlled 

subsidiaries, excluding bessemer, blister and black copper and copper 

in bond. 

15. The term "Electrolytic Copper Wire Bars" or "Electrolytic 

Wire Bars" means electrolytically-refined copper cast into standard 

shapes suitable for rolling and drawing in copper wire and rod mills. 

16. The term "Productive Capacity" of any primary producer, for 

the purposes of this Code means the tons of copper such producer is 

stated to be able to produce with its present plant and equipment 

in a period of one year, but capacities as herein stated are relative 

and do not necessarily signify the maximum which any member of 

the industry is able to produce in a single year. 

17. The term "Selling Price" as used herein means the price at 

which electrolytic wire bars of standard size are sold on the basis of 

Connecticut Valley delivery, and shall be subject to applicable 

differentials for delivery at other points, and for the other shapes and 

grades. 

18. The term "Employee" includes anyone engaged in the industry 

in any capacity receiving compensation for his services, irrespective 
394 

of the nature or method of payment of such compensation, except a 

member of the industry. 

19. The term "Employer" includes anyone by whom any such 

employee is compensated or employed. 

20. The term "Apprentice" means an employee who is regularly 

engaged in .learning a trade under a course of training designed to 

advance him systematically in the various operations of such trade 

to become a competently skilled mechanic. 

21. The term "Northeastern Wage District" is defined as comprising all states east of the Mississippi River and north of the Ohio River, 

and north of the states of West Virginia, Maryland, Delaware, except 

the states of Michigan, Wisconsin and Minnesota. The term 

"Southeastern Wage District" is defined as comprising all states east 

of the Mississippi River, and south of the states included in the 

Northeastern Wage District except West Virginia. The term "Great 

Lakes Wage District" comprises the states of Michigan, Wisconsin 

and Minnesota, and the term "Southwestern Wage District" comprises the states of Arizona, New Mexico, and Texas, and the term 

"Northwestern Wage District" comprises all states west of the Mississippi River, and the Territory of Alaska., except the three states in 

the Southwestern Wage District. 

22. The term "Owning and Controlling" or similar terms with 

reference to a subsidiary company means the ownership either directly 

or indirectly of a majority of the voting capital stock of the subsidiary company. 

23. The term "Affiliate" means (1) a company in which another 

company has a substantial interest through the ownership of its 

voting capital stock, but less than a majority thereof, or (2) a company 

under c<;>mmon ownership or control with respect to one or more other 

companies. 

24. The terms "President", "Act" and "Administrator" mean, 

respectively, the President of the United States, the National Industrial Recovery Act and the Administrator of Title I of said Act. 

25. The term "Code Authority" 1neans the authority provided for 

under Section 1 of Article VI hereof. 

26. The term "Fabricator" means one engaged in the processing 

of copper for the purposes of sale in fabricated form. 

27. The term "Consumer" means anyone who purchases copper 

for fabrication or other manufacturing purposes. 

28. The term ''Association'' as used herein means the United 

States Copper Association, an unincorporated association having its 

principal offices at 33 Rector Street, New York, N. Y. 

29. The term "United States" means the part of the United 

States on the North American Continent. 

30. The term "Effective Date" is the date upon which this Code 

becomes operative and effective. 

ARTICLE III-HouRs OF LABOR 

MAXIMUM HOURS 

1. On and after the effective date of this Code no employee shall 

be permitted to work in excess of 40 hours per week, averaged over a 

three-month period, or in excess of eight hours in any twenty-four hour 
395 

period except as herein otherwise provided. Every employer at the 

end of each quarter shall report to the Code Authority, in such detail 

as may be required by it or by the Administrator, any action taken 

by the employer in connection with the averaging feature herein 

provided, giving the number of man-hours so worked, the reasons 

therefor and the ratio which such man-hours bear to the total number 

of man-hours worked during said quarter. Such report shall be 

transmitted by the Code Authority to the Administrator. The 

Administrator may, at his discretion, appoint an impartial investigator to review conditions in the industry concerning the averaging 

provisions herein. Such investigator shall contact employers and 

employees and, on completion of his review, shall report to the Administrator and forward a copy of such report to the Code Authority. 

HOURS FOR CLERICAL AND OFFICE EMPLOYEES 

2. No person employed in clerical or office work shall be permitted 

to work in excess of 40 hours per week, except that during any one 

week in a one-month period such employee shall be permitted to work 

a maximum of 48 hours in any such week, and except as herein otherwise provided. A normal day shall not exceed eight hours. 

EXCEPTIONS AS TO HOURS 

3. The limitation as to hours of labor specified in Sections 1 and 2 

of this Article III shall not apply to the following: 

(a) To employees engaged in emergency maintenance, or emergency 

repair work involving breakdown or protection of life or property; 

provided that in such special cases one and one-half times the normal 

wage rate for any employee so employed shall be paid for all hours 

worked in excess of 8 per day, or 40 per week. Such special cases, 

however, shall be reported to the Administrator through the Code 

Authority. 

(b) To outside salesmen, nor to persons in an executive, managerial, 

technical, technical engineering, or supervisory capacity, who receive 

$35.00 or more per week. 

(c) To hoistmen, powerhousemen, and pumpmen, who may be 

permitted to work a total of forty-eight hours per week. 

(d) In the case of operations with three shifts in a twenty-four 

hour period where only in order to change shifts, it is necessary for 

employees to work more than eight hours in one twenty-four hour 

period, the provisions concerning working in excess of 8 hours in any 

one twenty-four hour period shall not apply. 

(e) In the case of shut-down properties or other special situations 

which may require modification of Sections 1 and 2 of Article III, the 

Administrator on request of the member of the Industry and after 

investigation and such public hearing as he may deem necessary may 

make special rules and modifications. 

(f) To necessary clerical help that must work concurrently with 

employees described in Section 1 hereof and/or (a) to (d) inclusive of 

this Section 3, which clerical help may be permitted to work not in 

excess of the number of hours which such employees shall work. 
396 

EMPLOYMENT BY SEVERAL EMPLOYERS 

4. No employer shall knowingly permit any employee to work for 

any time which, when totaled with that already performed with 

another employer or employers in this Industry, exceeds the maximum 

permitted herein. 

ARTICLE IV-WAGES 

MINI1\•1UM 

1. The minimum wage rates (except as hereinafter otherwise provided) for this Industry for the various districts shall be not less than 

as follows: 

(a) Great Lakes Wage District: Surface Labor ___________________________________ _ Underground Labor ______________________________ _ 

(b) Northeastern Wage District: 

Cents per 

hour 

32.% 

37}~ 

Surface Labor_____ ______ _________________________ 371⁄2 

(c) Southeastern Wage District: 

Surface Labor____________________________________ 35 

(d) Southwestern Wage District: 

Surface Labor____ _______ _________________________ 30 

Underground Labor __ ___ __________________________ 45 

(e) Northwestern Wage District: Surface Labor ______ ______________________________ 40 

Underground Labor_______________________________ 47% 

provided, however, that minimum wage rates in effect in any district 

on J\1arch 1, 1934, which were above the minimums specified herein for 

that district shall in no case be reduced; and provided further, that 

the underground rate in the Ray District of Arizona shall be not 

less than 38¢ per hour. 

CLERICAL AND OFFICE EMPLOYEES 

2. No accounting, clerical, office, sales or service employee in any 

office shall be paid less than at the rate of $18.00 per week; provided, 

however, that office boys and girls and messengers shall be paid not 

less than at the rate of 80% of the minimum 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 office of any one employer, but in any case 

such employer shall be entitled to employ one such employee at not 

less than such reduced rate. 

WAGES ABOVE MINIMUM 

3. If an equitable adjustment of the differentials in the wage rates 

above the minimums fixed in this Code has not been made since 

July 1, 1933, there shall then be such adjustment, if necessary, made 

within 60 days from date of the approval of this Code. Such equitable 

adjustment shall mean that the differentials in amount existing prior 

to the formulation of this Code shall be maintained for employees 

other than persons enumerated in Article III, Section 3, paragraph 

(b), provided, however, that in no event shall hourly rates of pay be 

reduced. 
397 

HANDICAPPED PERSONS 

4. A person whose earning capacity is limited because of age or 

physical or mental handicap may be employed on light work at a wage 

below the minimum established by this Code if the employee obtains 

from the State Authority designated by the United States Department 

of Labor a certificate authorizing such employee'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 such certificates. Each employer shall 

file a list of such persons employed by him, with the Code Authority. 

METHOD OF WAGE PAYMENT 

5. When due, an employer shall make payment of all wages in lawful currency or by negotiable check therefor, payable on demand. No 

employer shall ,vithhold wages unless so required by law. Wages shall 

be ·exempt from any payments for pensions, insurance or sick benefits 

other than those voluntarily paid by the wage earners or required by 

State Law. Wages shall be paid at no greater interval than every 

semi-month, and salaries at no greater interval than every month. 

PIECE WORK COMPENSATION-MINIMUM WAGES 

6. This Article establishes a minimum rate of pay which shall apply, 

irrespective of whether an employee is actually compensated on time 

rate, piece work, or other basis. 

APPRENTICES 

7. Employment of apprentices at rates of con1pensation below the 

minimum provided herein shall be permitted where they are apprenticed to an employer under any apprentice system established and 

maintained by such employer. No employer shall employ apprentices in number exceeding 10% of the total number of skilled craftsmen of their special class e1nployed by such employer except that each 

employer shall be entitled to employ at least one such employee for 

each special class. 

ARTICLE V-GENERAL LABOR PROVISIONS 

CHILD LABOR 

1. On and after the effective date, no person under 18 years of 

age shall be employed, in the Copper Industry except in clerical, 

office, sales, service, technical and engineering departments, and no 

person under 16 years of age shall be employed in any capacity. 

PROVISIONS FROM THE ACT 

2. (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; 
398 

(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 

choosing; and 

(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. 

RECLASSIFICATION OF EMPLOYEES 

3. No employer shall reclassify employees or duties of occupations 

performed or engage in any other subterfuge for the purpose of 

defeating the purposes or provisions of the Act or of this Code. 

STATE LAWS 

4. No provision in this Code shall supersede any State or Federal 

L!tw 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. 

STANDARD FOR SAFETY AND HEALTH 

5. Every employer shall make reasonable provision for the safety 

and health of his employees at the place and during the hours of their 

employinent. Standards of safety and health for each division of the 

industry sha.ll be submitted to the Administrator within six months 

after approval of the Code. 

POSTING 

6. All employers shall keep posted complete copies of the Labor 

Provisions of this Code and all amendments thereto in conspicuous 

places, accessible to employees. 

COMPANY TOWN AND STORES 

7. No employee, other than maintenance or supervisory men, or 

those necessary to protect property, shall be required, as a condition 

of employment, to live in any house owned by or rented from his 

employer. No employee shall be required, as a condition of employment, to trade at any store owned or specified by an employer. 

ARTICLE VI-ADMINISTRATION CODE AUTHORITY 

1. Membership.-A Code Authority to supervise the administration and enforcement of the Code is hereby created which shall 

consist of eleven members to be selected in the following manner: 
399 

{a) Three members, one to be appointed by each of the three 

largest primary producers as shown by figures filed with 

the Administrator by the United States Copper Association, January 1934______________________________ 3 

(b) Two members, to be elected by all other primary pro- ducers____________________________________________ 2 

(c) Two members, to be elected by custom smelters, refiners 

and other producers of secondary copper subject to the 

provisions of this Code__________________________ ___ 2 

(d) Two members, only one of whom may be connected with 

a member of the Industry; such members to be appointed upon the written designation of six members of 

group (a), (b), and (c) of which six, two shall be the 

members elected under (c)__________________________ 2 

(e) One member, to be appointed by the Supervisory Agency 

of the Wire and Cable Subdivision of the Electrical Manufacturing Industry________________________________ 1 

(f) One member, to be appointed by the Code Authority of the 

Copper and Brass Mill Products Industry____________ 1 

Total ________________________________________ 11 

The Administrator, in his discretion, may appoint not to exceed 

three members without vote, and without compensation from the 

Industry to cooperate with the Code Authority in the Administration 

of the Code, and to serve for such term as the Administrator may determine. Any member of the Industry may appoint a representative 

to attend meetings of the Code Authority but such representative shall 

have no vote. 

Save as otherwise provided in this Code all action taken by the Code 

Authority shall be effective only upon the affirmative vote of six (6) 

voting members of the Code Authority. 

2. Manner of Election or Appointment of Members.-Voting members of the Code Authority shall be appointed by each unit having 

the right of appointment or by each group in the manner specified, or 

if not specified, then as may be determined by the group, or failing of 

such determination, by some equitable method of selection approved 

by the Administrator, and shall hold office for a term of one year, or 

such shorter period as the appointing group may designate, or until 

their successors a.re elected and qualified. 

Each unit or group may fill any vacancy at the expiration of terms 

of office or when vacancies otherwise occur. Each unit or group may 

name one or more alternates for each of its members of the Code 

Authority to act in the absence of any such member. 

With respect to representation on the Code Authority each company, together ·with its owned and/or controlled subsidiaries or affiliates, shall be treated as one entity, and only one representative of 

such entity shall be eligible to membership on the Code Authority at 

one time. 

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 provi~ions of the Act, may require an appropriate 

modification in the method of selection of the Code Authority. 

3. General Provisioris.-(a) Nothing herein contained shall be 

deemed to constitute the members or the Industry partners for any 

purpose. No agreement hereto or acquiescence in the provisions 
400 

hereof shall be deemed the agreement with or acquiescence in any 

statement of fact herein by any member of the industry, and in particular as regards the respective productive capacities or production 

quotas of the primary producers. Accordingly, any member of the 

Industry may agree to the provi~ions hereof or a~quiesce herein on 

the understanding that the Code 1s and shall continue an emergency 

measure, and that for all purposes the provisions hereof shall expire 

on June 16, 1935, and further that any such member shall not be 

prejudiced in any manner or for any purpose after the expiration of 

the term of this Code by reason of any agreement hereto or acquiescence in the provisions hereof. 

(b) Nothing herein contained shall constitute the members of the 

Code Authority or their alternates, partners for any purpose. Nor 

shall any men1ber 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, 

exercising 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 misfeasance or nonf easance. 

4. Organization.-The Code Authority shall select a Chairman, 

Secretary, Treasurer, Sales Clearing Agent, and such other officers as 

it may deem necessary. It may appoint comnuttees, the members of 

which need not be men1bers of the Code Authority, to perform administrative duties hereunder; provided, however, that it shall not delegate to any such committee any specific authority and power granted 

to it under the provisions of the Code. 

5. Powers and Duties.-The Code Authority, subject to such general 

rules and regulations as may be issued by the Administrator shall have 

the following powers and duties in addition to those otherwise 

expressly conferred under the provisions of this Code, the exercise of 

which shall be reported to the Administrator. Any action taken by 

the Code Authority sJ?_all be subject to the right of the Administrator 

to disapprove the same, after review and such hearing as he may 

prescribe, if he shall de.termine that such action is unfair or unjust 

to any member of the industry, or contrary to the public interest. 

Pending such hearing and after 24-hours' notice to the Code Authority 

the Administrator may require that such action be suspended for a 

reasonable period not to exceed 30 days to afford an opportunity for 

further in-vestigation of the merits of such action and further consideration thereof by the Code Authority pending final action, which final 

action shall be taken only upon approval by the Administrator; 

(a) To insure the execution of the provisions of this Code and provide for compliance by the Industry with the provisions thereof; 

(b) To adopt by-laws and rules and regulations for its procedure 

and for the administration and enforcement of the Code. 

(c) To receive complaints of violations of the Code and disputes 

arising thereunder. If any member of the Industry or other interested 

person shall request the Code Authority to take action on a matter, 

the Code Authority shall within ten days after such request has been 

received by it advise such member or other interested person of the 

action taken thereon. Any member or other interested person shall 

have the right to present any auestion to the Administrator for his . . ]. 

act10n; provided that the Code Authority shall first have had opportunity to act thereon; 
401 

(d) To make investigation of any reported or alleged violation of 

the Code. When formal complaint is made to the Code Authority 

by any member of the industry or the Code Authority shall learn of 

any alleged violation, the Code Authority shall designate an impartial 

agency other than the Association to make such investigation as is 

necessary to determine the facts of the alleged violation, and to that 

end such agency shall be authorized to conduct such examination or 

audit into the pertinent data and records as may be necessary. Such 

agency shall report to the Code Authority its findings as to whether or 

not the alleged violation of the Code was actually committed. If 

such agency shall report that the violation did not occur, the facts 

ascertained in the investigation shall be confidential to the investigating agency and shall not be disclosed by it. If such agency shall 

report that the violation did occur and if a satisfactory adjustment 

thereof cannot be reached by the Code Authority, the findings of the 

investigating agency, together with its data and records in the case, 

shall be reported to the Administrator. The expense of the investigation, examination or audit shall, when made on the complaint of any 

member, be borne by such member if the complaint was not justified. 

In the event that the complaint was justified, such expense shall be 

borne by the member or members against whom the complaint was 

made. 1 

(e) 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 infonnation, and reports shall be submitted by members to such administrative and/or government 

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 shall be disclosed to any other member of the industry 

or any other party except to such governmental agencies as may be 

directed by the Administrator. 

(f) To obtain from the members of the Industry such other reports 

as may be deemed necessary to enable the Code Authority to be 

informed as to the observance or non-observance of the Code, and as 

to whether the Industry is taking proper steps to effectuate, in all 

respects, the declared policy of the National Industrial Recovery 

Act. Such reports shall be on prescribed forms covering employment 

and production statistics and such other information as the Code 

Authority may request. All data, reports and statistics fro1n the 

individual members of the Industry furnished under the provisions 

of this subsection (f) except as otherwise provided herein, shall be 

confidential and shall be filed with the Secretary for compilation. 

The Secretary shall submit such data and statistics to the Code 

Authority and to members of the Industry reporting, in the form only 

of combined totals for the Industry unless otherwise permitted by 

the unanimous consent of the members reporting. If any reports 

received by the Secretary indicate a violation of any of the provisions 

of this Code by any member of the Industry, the Secretary shall 

report such facts to the Code Authority. 

1 See paragraph 2 (2) (4) of order approving this Code. 
402 

(g) To use such association or other agency as it deems proper to 

carry out any of its activities prescribed by the Code, provided, 

however, that nothing herein shall relieve the Code Authority of its 

duties or responsibilities under the Code and that such association 

or agency shall at all times be subject to and comply with the provisions hereof. Any Association and any other agency directly or 

indirectly participating in the selection or activities of the Code 

Authority shall (1) impose no inequitable restrictions on membership, 

and (2) submit to the Administrator true copies of its Articles of 

Association, By-Laws, Regulations, and any amendments when 

made thereto, together with such other information as to membership, organization and activities as the Administrator may deem 

necessary to effectuate the purposes of the Act. 

(h) To make recommendations to the Administrator for the coordination of the administration of this Code with such Codes, if 

any, as may be related to the inquiry, and to cooperate with the Code 

Authorities of related industries to carry out the provisions of this 

Code. 

(i) The Code Authority may, by means of audit or otherwise, check 

the accuracy of all reports made by and/or to its Sales Clearing Agent 

and by members and provide for such audit of the same and of the 

books and accounts as may be deemed necessary from time to time. 

The report as to such examination shall not disclose the facts thereof 

unless it shall find that the reports which were investigated were not 

accurate, and in such case the report shall indicate merely the particulars in which the reports were inaccurate. Otherwise, the information obtained by the investigating agency in making the examination and audit shall be confidential. 

(j) Whenever any action may be taken by the Code Authority on 

a question affecting only a single member of the Industry or a single 

group of members of the Industry, the single member or group of 

members whom the decision of the Code Authority shall affect may 

request an arbitration. Upon such request the question upon which 

such action was taken shall be resubmitted by the Code Authority 

for decision to a committee of three arbitrators, one of whom shall be 

selected by the Code Authority, one by the member or group of members affected, and the third shall be chosen by the first two. In the 

event the first two arbitrators, appointed as hereinbefore provided, 

cannot agree upon a third arbitrator, said arbitrator shall be selected 

by the Administrator. The decision of any two of three arbitrators 

when rendered shall be entered with the same effect as the final 

decision of the Code Authority. 

6. Participation and Expense.-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 assenting to and complying with the requirements of this 

Code and sustaining their reasonable share of the expenses of its 

administration. Such reasonable share of the expenses of administration shall be assessed against each such member of the Industry 

by the Code Authority on such equitable basis as may be deemed 

proper by the Code Authority, with the concurrence of at least one 

member of each of the first three groups specified in Section 1 of 

this Article. 
403 

ARTICLE VII-PRODUCTION AND SALES l! 

The existence in the United States of large surplus stocks of copper 

has created a condition under which the selling price of the product 

of this industry has been unduly depressed. Further unrestricted 

overproduction can only result in further accumulations and an 

aggravation of the foregoing condition. 

Accordingly, for the purpose of conserving a natural resource of 

national importance; of cooperating in the highest possible degree in 

the National Recovery program, particularly with reference to employment; and of bringing about a sound and stable basis for the 

industry as a whole, the members of the industry, the holders of 

stocks of copper and others interested, may enter into voluntary 

agreements for the attainment of any of the following purposes, subject in each case to the approval of the Administrator and the Code 

Authority, which agreements shall only be binding on members 

parties thereto: 

1. To regulate copper production in the United States with due 

regard to consumptive demand, the liquidating of surplus stocks and 

the necessity of maintaining employment in the industry at the highest 

possible level. 

2. To withhold, in whole or in part, surplus stocks from the market 

during the present emergency period. 

3. To regulate, curtail, and allot the volume of current production 

in such manner as shall be agreed upon by the parties participating in 

such regulation, curtailment, or allotment. 

4. To provide a plan involving a minimum sales price with due 

regard to cost of production and in connection therewith a plan for the 

regulation and allocation of sales; and 

5. To take such other steps by negotiation and mutual agreement 

as may be deemed necessary for the accomplishment of the purposes 

hereinbefore set forth. 

ARTICLE VIII-TRADE PRACTICES 

The following acts as described shall constitute unfair methods of 

competition by members of the Industry in respect of copper sold 

and/or delivered for consumption in the United States: 

1. The sales or exchange of copper in refinery shapes at premiums 

or discounts other than those established and recognized in the trade, 

and in accordance with statements filed with the Code Authority; 

2. The sale, transfer, or exchange of copper in a manner planned 

and effective to impair or defeat the purposes of this Code; 

3. The alloying of copper in any manner for the purpose of evading 

the provisions of this Code; 

4. A failure within 30 calendar days after receipt at plant to price 

custom copper, by-product and secondary copper material. Copperbearing material received at plant prior to the effective date of this 

Code shall be exempt from this provision; 

5. The sale of copper to persons other than consumers of copper 

and dealers, provided, however, that there shall be no prohibition 

against exchanges of copper customarily heretofore made between 

producers and/or custom smelters; 

3 This Article deleted and new Article substituted-see paragraph 2 (1) of order approving this Code. 
404 

6. Sales of copper made-for delivery· further ahead than the three 

months following the 1nonth of sale. 

This Code and the provisions thereof shall be the standard of fair 

competition for the copper industry in the United States, and every 

violation of the standard established in the Code shall be deemed an 

unfair method of competition and shall subject the party guilty of any 

such violation to penalties as provided in Title I of the Act.3 

ARTICLE IX-APPLICABILITY OF CODE TO VARIOUS OPERATIONS 

1. If any member of the industry is also a member of any other 

industry, provisions of this Code shall apply only to that portion of 

its business which is a part of the Copper Industry. 

2. Where there is any question as to whether copper is the major 

production from the operations which do or which might produce 

lead, zinc, gold, silver or other materials, then in any and every such 

event the question as to which Code of Fair Competition shall govern 

such plant or mine operations of any such member of this industry 

shall be referred to a Coordination Committee. This Coordination 

Committee shall be composed of two members to be appointed by 

each of the Code Authorities for such industries as may be involved 

in each particular question. In the event such Committee, is unable 

to reach a majority conclusion, then either the Committee shall elect 

an additional impartial member or upon their failure so to agree on 

such additional impartial member, the Administrator then may appoint 

such additional impartial member. Any member of the Industry, 

the operations of which may raise such a question, shall file a statement of fact with the Code Authority for its industry, and such statement shall contain a statement of its preference as to the Code it 

would prefer to have such operations be governed by, and such preference shall be granted unless such Coordination Committee shall find 

that the granting thereof would be unfair in view of the rights of 

others or that it would have a tendency contrary to the effectuation 

of the policies of the Act. Any action taken by the Coordinating 

Committee shall be referred to the Administrator and shall be subject 

to his disapproval. 4 

3. Within ten days after the effective date of this Code any member 

of this industry may file such statement of fact and preference as to 

being governed by any of such other Codes which may at that time 

be in effect. Thereafter upon any such other Code becoming effective 

such statement may then be filed; provided, however, that until any 

such statement is filed and decision is made thereon by such Coordination Committee, such operation of such member of this industry 

shall be governed by the provisions of this Code. 

4. From time to time thereafter if conditions change members of 

this industry shall be entitled to file such statements of fact and 

preference as to change of portion of their operations from the jurisdiction of one Code to the jurisdiction of another, and in such event 

they shall be handled in the same manner as provided for above. 

5. The foregoing Sections 1 to 4 inclusive of this Article IX, shall 

not be effective until Codes of Fair Competition for the lead and zinc 

industries, containing an article substantially the same as this Article 

3 Addenda to this Article added-see paragraph 2 (2) of order approving this Code. 

'See paragraph 2 (2) (3) of order approving this Code. 
405 

IX, have been approved and are in effect and certified copies of such 

approved codes have been filed with the Code Authority for this 

Industry. 

ARTICLE X-MODIFICATIONS 

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 regulation issued under 

Title I of said Act. 

2. The provisions of Articles I to VI, inclusive, and Articles VIII 

and IX of this Code, excepting those required to be included therein 

by the Act, may be amended as provided in Sectoin 3 hereof in such 

manner as may be indicated by the needs of the public, by changes in 

circumstances, or by experience; but no amendment may be made 

under the provisions of Sections 2 and 3 of this Article X in respect of 

the subject matter of Article VII. 

3. Any such amendment referred to in Section 2 hereof may be proposed by any member of the Industry either to the Code Authority 

or to the Administrator. Any such propos d amendment shall be 

referred to the Code Authority who shall give members of the Industry an opportunity to be heard thereon. After any such amendment 

has been recommended by the Code Authority and upon approval 

by the Administrator, after such hearings as be may deem necessary, 

it shall become effective as a part of this Code. 

ARTICLE XI-MONOPOLIES 

No provision of this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate 

against small enterprises. 

ARTICLE XII-EFFECTIVE DATE, TERM AND TERMINATION OF CODE 

This Code shall become effective on the 5th calendar day after its 

approval by the President. 

The term of this Code shall be from the effective date to June 16, 

1935, subject to the provisions hereof and of the National Industrial 

Recovery Act, as effective June 16, 1933. 

Approved Code No. 401. 

Registry No. 1209-1-02. 

0 


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