Approved Code No. 38-Amendment No. 1 Registry No. 1103-01 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

BOILER MANUFACTURING 

INDUSTRY 

AS APPROVED ON APRIL 16, 1934 

WE DO OUR PART 

I ' 

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O~Pf TO~ U . ~· J _, 

. -··-

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent of Documents. Washington, D.C. • • • • - - - - Price 5 cents 

✓ 
This puLlkation is for sale by the Superintendent of Documents, Goveri 1ment 

Printing Office, Washington, D.C., and by district offices of tlle Bure:111 ,,f 

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 25.7 Federal Building. 

Boston, Mass.:- 1801 Customhouse. 

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

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

Chicago, Ill.: Suite 1706, 201 North Wells Street. 

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Deti;oit, Mich.: 801 First National Bank Building. 

Houston, Tex. : Chamber of Commer~e Building. 

Indianapoli~, Ind.: Cllamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore A.enue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

New Orleans, La. : Room 225-A, Customhouse. 

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadel phia, Pa.: 422 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Builclin~. 

Portland, Oreg.: 215 New Post Oflice Building. 

St. Louis, l\Iu.: 506 Olive Street. 

San Francisco, Calif.: 310 Customhouse. 

Seattlf. \Vash.: 809 Federal Office Building. 
Approved Code No. 38- Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

BOILER MANUFACTURING IND·USTRY 

As Approved on April 16, 1934 

ORDER 

APPROVING AMENDMENT TO THE CoDE OF FAIR Cm,rPETITION FOR THE 

BOILER MANUFACTURING INDUSTRY 

An application having been duly n1ade 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 Supplement 

"A" to the Code of Fair Competition for the Boiler Manufacturing 

Industry, approved October 3, 1933 and hearings having been duly 

held thereon and the findings with respect thereto having been made 

and directed to the President : 

NO,V, THEREFORE, on behalf of the President of the United 

States, I, H11gh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by ExecutiYe Orders of the President, including Executive Order No. 6543-A, dated December 30, 

1933, and otherwise; de hereby incorporate by reference said annexed 

report and <lo find that said Supplement "A" of said Code complies 

in all re~pects with the pertinent provisions and will promote the 

policy and purposes of , aid Title of said Act; and do hereby order 

that said Supplement "A" to said Code of Fair Competition be and 

it is her•eby approved; provided, however, that the proYisions of 

Article V, Section I (cl) insofar as they prescribe a waiting period 

between the filing with the Code Authority and the effective date of 

revised price lists or revised term and conditions of sale be, and they 

are hereby, stayed pending my further Order either ,Yithin a period 

of ixtv dav from the effective date of this Code or after the 

completion of a study of open price as ociations now being conducted by the National Recovery Admini tration. 

Huan S. JoHNSON, 

Adm,inisfrator for lndust,rial R ec(Yl)ery. 

Approval recommended: 

A. R. GLANCY, 

Division Administrator. 

WASHINGTON, D.C., 

April HJ, 1934. 

53275°-482-90-34--2 ( 1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The lVhite House. 

Sm: This i · a report 011 the Supplement "A' to the Code of Fair 

Competition for the Boiler Manufacturing InJu try, approved October 3, 1933, as revi eel after a Public Hearing held in ,vashington 

on the 27th day of D 0 cember, 1933, in accordance with the proYisions 

of the National Indu tl'ial Recoyery Act. 

FINDINGS 

I find that: 

(a) Said Supplement to aid Code i well designed to promote ihe 

policies and purposes of Title I of the N atio11al Indu ·trial RecoYery 

Act, including remo, al of obstructions to the free fl.ow 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 cooperatin~ action among the 

trade groups, by inducing and maintaining united action of labor 

and management und2r adequate governmental sanctions and supervi ion, by eliminating unfair competitive practice~, by prorn.oting the 

fullest po ·ible utilization of the pre ent pro<luctiYe capacity of 

intlustries, by avoiding undue restrictions of production ( except as 

1nay be temporarily required), by increasing the consumption of industr-i-al and agricultural products tl1rongh increasing purchasina 

pow r, by reducing and relieving unemployment, by improYing standarcl of labor, and by otherwise rehabilitating indu try. 

(b) Said Indu try normally employ not more than 50,000 E'Inployces; and is not classified by me as a major industry. 

( c) The Supplement and the Co le a. approved con.1pljes in all 

re pect with the pertinent proYision. of sai 1 Title of said Act, including without limitation Subsection (a) of S ction 3, Subc:ection 

(a) of Section 7, and Subsection (b) of Section 10 the::eof; and that 

the applicant, the Code .A.u~horit.v of the Boiler :Manufacturing Indu try, constituted by Article IX of the Code. and approved by 

A.dmini trative Order, dated February 1 t, 1934, is truly repre entative of the aforesaid Industry. 

(d) The Supplement and the Code is not de. icrned to and will not 

permit monopolie · or monopolistic practice . 

( e) Tlrn Supplement and the Code is not designed to and will not 

eliminate or oppress small enterpri es and will not operate to di - criminate against them. 

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

been deprived of the right to be heard prior to upproYal of sui.cl 

Supplement of ·aid Code. 

For these rea ons, this Supplement to said Code has been approYed 

by me. 

Re pectfully, 

APRlL lG, 1934:. 

(2) 

HUGH s. ,JOH SON, 

il.rlm,inistrator. 
AMENDMENT TO CODE OF FAIR COMPETITION FOR 

THE BOILER MANUFACTURING INDUSTRY 

ARTICLE I-PURPOSES 

Pursuant to Article XIII of the Code of Fair Competition for the 

Boiler Manufacturing Industry, duly approved by the President 

on October 3, 1933, and further to effectuate the· policies of Title I 

of the National Industrial Recovery Act, the followin~ provisions 

are submitted as a supplement to said Code of Fair vmnpetition, 

and, upon approval by the President, shall be binding upon every 

member of the Boiler 1\1anufacturing Industry. 

ARTICLE II-DEFINITIONS 

( 1) The term " the Code ", as used herein, shall mca n the Code 

of Fair Competition for the Boiler Manufacturing Industry, duly 

approved by the President on October 3, 1933. 

(2) The term "Boiler Manufacturing Industry", or "Industry", 

as used herein, shall mean the Boiler :Manufacturing Industry as 

defined in Article II of the Code. 

( 3) The term " Branches of the Industry ", as used herein, shall 

mean those groups of members of the Industry who manufacture 

specific classes of products of the Industry, such as water tube boilers, fire tube boilers air preheater , economizers, superheaters, tokers, pulYerized fuel equipment, Class I welded pressure vessels and 

such other specific classes of products of the Industry as defined 

from time to time by the Code Authority. 

( 4) The term "Code Authority ", as used herein , shall mean the 

Planning and Fair Practice Agency constituted by Article IX of 

the Code and approved by the Administrative order dated F ebruary 

1, 1934 and variously referred to in the Code as the A. B. M. A. 

Committee of Indu. trial Recovery or the Committee. 

( 5) The term "Manager" as used herein, shall mean the Manager ( or his Deputy), appointed as provided in Article IX of the 

Code. 

( 6) The term " Member of the Ind u try ", as used herein hall inclnc.1e but without limitation, any individual, person, partnership, 

a~ ociation, corporation or other form of enterprise engaged in the. 

manufacture or sale of the products of the Industry either as an 

employer or on his or its own behalf. 

(7) The term "ultimate consumer", as used herein, shall mean 

one who purchac:es the product of the Industry from a member of 

the Industry for u e and not for resale, 

(8) The terms" employer" and" employee", as used herein, shall 

have the meaning as set forth in Article II of the Code. 

(9) The provisions of this Supplement hall become effective immediately upon approval by the Pre ident. 

(3) 
4 

ARTICLE III-Am,nNISTRATION 

SECTION 1. The Code Authority may, subject to the approval 0£ 

a majority of the members of each of the several branches of the 

Indu try, as defined in Arti le II appoint a Supervisory Committee, for each of such branches, which shall among other duties cooperate 

with the :Manager a Trade Practice Compliance Boards £or the 

several branches of the Industry ; pro-vided, however, that nothing 

herein contained shall relieve the Code Authority of any of its duties 

and re ponsibilities under the Code or under any Supplement 

thereto; and provided, further, that the Administration representatives on the Code Authority may act in the same capaeity on these 

SuperYi ·ory Comrilittees. 

SEcTIO~{ 2. l ~ othing contained in the Code or in this Supplement 

shall constitute the members of the Cocle Authority partners £or any 

purpose. Nor shall the Code or this Supplement be construed to 

render any member of the Code Authority or of any Supervisory 

Committee liable in any manner to any one for any act of any other 

member, officer agent or employee of such Code Authority or Supervisory Committee. Nor shall this Code be con trued to render any 

member of the Code Authority or of any Supervi ory Commit.tee, 

exercising reasonable diligence in the conduct of his duties hereunder, 

liable to any one for any action or omission to act under this Code 

except for his own wilf-ul misfeasance or nonfeasance. 

SECTION 3. If the Administrator shall at any time determine that 

any action of the Code Authority or any Supervisory Committee 

or any agency thereof may be unfair or unjust or contrary to the 

public interest, the Administrator may require that such action be 

suspended to afford an opportunity for investigation of the merits 

of such action, and further consideration by such Code Authority 

or Supervisory Committee or agency thereof pending final action 

which shall not be effective unless the Administrator approves the 

same or unless he shall fail to disapprove the same after thirty 

(30) days' notice to him of intention to proceed w·ith such action in 

its original or modified iorm. 

ARTICLE IV-SALES BELOW CosT 

SECTION 1. Upon approval by a majority of the members of any 

branch and due notice of such approval to the Administrator the 

following provision shall become effective as to such branch, not less 

than five ( 5) days after the filing of such notice to the Administrator. 

It shall be a violation of the Code to sell, or offer to sell, directly or 

indirectly by any means whatsoever, any product of such branch of 

the Industry, any product purchased for resale in connection with 

the in tallation of products of such branch of the Industry, service, 

and/ or erection, at a net realized price less than the members indiviclual cost determined as prescribed in Article X, Section 1 of the 

Code~ with such modification as may be (a) required by the conditions effecting such member (such as abnormal volume of business, 

etc.,) and (b) approved by the Supervisory Committee of the branch 

involved, all subject to the approval 0£ the ode Authority and the 

Admini trator; provided, however, that nothing in this Section ~lrnll 
5 

prevent a member from quoting a price lo,Yer than his individual cost 

determined as herein provided to meet the price of a competitor who 

i. not Yiolating any provisions of the Code or any Supplement 

thereto, for products of equiYalent type, quality, specification and/or 

performance; proYided, further. that nothing herein hall limit the 

effect of Article YIII Section 2 of this Supplement. 

t-;EcTION 2. Ob olete or <.li~c0ntinucd line · of products, or distress 

merchancli el may be di, po ed of, at a net realized price les than cost, 

b any member, if uch member ha at least ten (10) days prior to 

the date of sL1ch .·ale filed with the ~1anager a li ·t of uch item:::;. 

AnTICLE V-PRICE LISTS 

PECTIO~ 1. (a) Upon approval by a majority of the members of 

any branch and clue notice of ~uch approYal to the Administrator 

the follo,ving prO\·ision · shall become effective as to such branch, 

not less than frve ( 5) day · after the filing of such notice to the 

Admini trator. The SuperYi::--:ory Committee of such branch shall 

require the members of '-'a id branch to prepare and file with the 

.:Manager within thirty (30) days, price ·chedules whi h may be in 

the form of net price or price with cli ·count. , for such of his product. · as are sufficiently standard to permit of nch pricing. 

(b) The price Echedule prepared and filed a provided in Section 

1 aboYe, shall become e:ffectiye on filing and hall be the prices \Thich 

he will quote to all ultimate con ·umers. 

( c) Upon receipt of the aboYe described price schedules the 11anager shall at once distribute copies of same to all members of the 

branch effected. ( d) .1. Tone of the price ~chedules so filed shall be changed by a 

member of the Indu tr} except by filing with the l\!Ianager new 

price schedules setting forth such change or changes to become effectiYe on the tenth clay after the dnte on which such ne,v price schedule. ·hall ha,·e been receiYecl by the ·Manager who shall imm.ediately 

notify the member filing such reYised price ~chedule of the effectiYe date re ulting from the date of receipt. Copies of snch revised 

price chedule , either increa ·e or decrea e : together ·with notice 

of the effective date thereof shall be immediately sent by the M~anager to all other member of the branch of the Industry affected, who 

thereupon may file ·imilar reYisions. Such similar r evisions if filed 

prior to the effective date of the revised chedule fir t filed shall 

take effect upon that date, except when the re, isecl price first filed 

constitutes a decrea ·e. and such ·imilar revi ion is more favorable 

to the purcha er than ·uch revised price fir. t filed, in -which case such 

similar revi ion shall not take effect until ten (10) clay · af er the 

date "·hen the ame shall have been received by the ~Ianager. 1 

( e) All current price schedules on file hall be open to in pection 

by any cu tomer or pro pective customer or other intere ·tccl party 

at all reasonable time . SECTION 2. Each member of the Industry who makes products of 

... pecial design that do not lend themselves to standard prices shall 

not ell such products at a price le s than the sum of the filed price. 

on standard product , u ed in uch products of special design, and 

1 See paragraph 2 of order approving this .Amendment. 
6 

the cost ( determined as provided in Article IV, of this Supplement) 

of all additional products, or parts of products that enter into the 

construction of such complete products of special design. 

ARTICLE VI-INTRA INDUSTRY TRANSACTIONS 

All members of the Industry do not manufacture all of che products of the Industry. Many sales involve a combination of products, 

some of which some members do not manufacture. To enable all 

members, who desire, to compete on an equitable basis for such 

sales, all members shall publish to the Industry the discount which 

they will allow when and if selling products or parts of products 

to other members for incorporation in or assembly with products of 

the Industry of the purchasing member's own m.anufacture and shall 

agree to take no unfair ad vantage through the use of such a discount when competing for such sales of a combination of products. 

The provisions of Article IV and Article V of this Supplement 

shall not prevent or restrict the allowance of such a discount. 

ARTICLE VII-EXPORT SALES 

SECTION 1. As trade practices in foreign countries are governed by 

foreign laws and as foreign manufacturers are not subject to the 

Code, it is understood the provisions of this Supplement "A" do 

not apply to export trade; provided, however, that should the total 

export business of the Industry in any three (3) months period exceed 

five ( 5%) percent of the total domestic business of the Industry for 

the same period, it is expressly understood that the Administrator 

may require the modification of this Section 1 in such manner as 

may be calculated to effectuate the purposes of the Act. 

SECTION 2. The term " export " is defined as shipments to all 

countries of the world except the United States of America, or any 

territory or possession thereof. 

ARTICLE VIII-FAIR TRADE PRACTICES 

SECTION 1. Each member of the Industry shall send to the Manager 

(who shall hold same in strict confidence) immediate notice of each 

inquiry received on which he proposes to quote, a copy of each letter 

of proposal and estimate sheet made, and a copy of each order 

received, including prices and terms; provided, however, that such 

reports need not be made in connection with repair or renewal parts 

or such other products as may be excepted by the Code Authority, 

upon request of the majority of the members of the branch affected 

and with the approval of the Administrator. 

SECTION 2. No member of the Industry shall change any quotation 

submitted unless a change is made in the specifications, and, in the 

event of such change in any specifications, the price and forms of the 

new quotation shall be determined in the same manner as in the 

original quotation. \Vhere the original quotation has been reported, 

the r evised quotation, with changes noted, and the reasons therefore 

indicated, shall at once be reported to the Manager. 
7 

SECTION 3. No member of the Industry shall acce.pt secondhand or 

used equipm.ent of any kind whatsoever as part payment towards the 

purchase of new equipment. 

SECTION 4. No member of the Industry shall accept an order or 

contract for the products of this Industry, except Class I welded 

pressure vessels, which includes the construction of foundations, 

structures other than those necessary for the support of the equipment, or the removal of old equipment or structures, except in the 

case of repair or renewal of parts, unless the order or contract is so 

written that that part covering the .products of this Industry and 

subject to the provisions of the Code and this Supplement is definitely 

segrega~ed. 

ARTICLE IX-GENERAL 

The provisions of the Code are hereby specifically recognized to be 

applicable to this Supplement. 

Approved Code No. 38. Amendment No. 1. 

Registry No. 1103--01. 

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