Registry No. 1129-1-10 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR TH-E 

HEAT EXCHANGE INDUSTRY 

AS APPROVED ON OCTOBER 11, 1933 

BY 

PRESIDENT ROOSEVELT 

1. Executive Order 

2. Letter of Transmittal 

8. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

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(II) 
EXECUTIVE ORDER 

CoDE OF FAIR CoMPETITION FOR THE HEAT ExcHANGE 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 my approval of a Code 

of Fair Competition for the Heat Exchange Industry, and hearings 

having been held thereon and the Administrator having rendered his 

report containing an analysis of the said Code of Fair Competition, 

together with his recommendations and findings with respect thereto, 

and the Administrator having found that the said Code of Fair Competition complies in all respects with the pertinent provisions of 

Title I of said Act and that the requirements of clauses (1) and (2) 

of subsection (a) of Section 3 of the said Act have been met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 

United States, pursuant to the authority vested in me by Title I of 

the National Industrial Recovery Act, approved June 16, 1933, and 

otherwise, do adopt and approve the report, recommendations, and 

findings of the Administrator and do order that the said Code of 

Fair Competition be and is hereby approved. 

THE WRITE HousE, 

October 11, 1933. 

Approval recommended : 

HuGH S. JoHNsoN, 

Administrator. 

15691°----133-226----33 

FRANKLIN D. ROOSEVELT. 

(ill) 
OcTOBER 9, 1933. 

THE PRESIDENT' 

The White House, Washington, DrO. 

MY DEAR MR. PRESIDENT: I have the honor to submit and recommend for your approval, the Code of Fair Competition for the Heat 

Exchange Industry. 

The .following documents are included or attached: 

1. Executive Order. 

2. Report of Deputy Administrator. 

3. Industrial Advisory Board Approval. 

4. Labor Advisory Board Approval. 

5. Consumers' Advisory Board Approval. 

6. Legal Division Approval. 

7. Research and Planning Approval. 

8. Research and Planning Re:port (Statistical). 

9. Original Letter of Transmittal from Industry. 

10. Assent of Industry. 

11. Notice of Hearing. 

12. Authorization of Code Committee to Act. 

13. List of Witnesses. 

14. Constitution and By-Laws of Association. 

15. Transcript of Hearing. 

An analysis of the provisions of the Code has been made by the 

Administrator. I find that the Code complies with the requirements 

of the National Industrial Recovery Act. 

I am, my dear Mr. President, 

Very sincerely yours, 

(IV) 

HUGH s. JOHNSON' 

Administrator. 
CODE OF FAIR COMPETITION FOR THE HEAT EXCHANGE 

INDUSTRY 

ARTICLE I-PURPOSE 

To effectuate the policy of Title I of the National Industrial 

Recovery Act, the following provisions are submitted as a Code of 

fair competition for the Heat Exchange Industry, and upon approval : 

by the President shall be the standard of fair competition for this fu~~~ I 

ARTICLE II-DEFINITIONS 

The term "heat exchange industry" as used herein is defined to 

mean the manufacture for sale of steam and vapor condensers, 

tubular heat exchangers, storage heaters, direct contact heaters, deaerators, cooling towers, and kindred and allied apparatus and/or 

parts thereof. The term " person " as used herein shall include but 

without limitation natural persons, partnerships, associations, trusts, 

trustees, trustees in bankruptcy, receivers, and corporations. The 

term "employer" as used herein shall include every person actively , engaged in the manufacture for sale of the products of the heat exchange industry as herein defined. The term" effective date" as used 

herein is defined to be the eleventh day after this code shall have 

been approved by the President of the United States. 

ARTICLE III-APPLICANT 

This code is presented by Heat Exchange Institute, a trade association, all the members of which are engaged in the manufacture ~or 

sale of the products of the heat exchange industry as herein defined, 

in association with Machinery and Allied Products Institute, of 

which Heat Exchange Institute is a constituent member. 

ARTICLE IV-EMPLOY1\fENT 

As required by Section 7 (a) of Title I of the National Industrial 

Recovery Act, it is hereby provided : 

"(1) That 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; 

2. That 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 

(1) 
2 

3. That employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions of employment approved or prescribed by the President. 

ARTICLE V-W AGES 

(a) On and after the effective date no employer shall employ 

any one under the age of 16 years; provided, however, that where 

a state law provides a higher minimum age, no person below the age 

specified by such state law shall be employed within that state. 

(b) On and after the effective date the minimum wage that shall 

be paid by any employer to any unskilled employee engaged in the 

production of the products of the heat exchange industry and in 

labor operations directly incident thereto shall be 40 cents per hour, 

unless the rate per hour for the same class of labor on July 15th, 

1929, was less than 40 cents, in which case the rate per hour paid 

shall be not less than the rate per hour paid on July 15th, 1929, 

;:tnd provided, that in no event shall the rate per hour. paid be less 

than 35 cents, and provided also that learners (other than apprentices as defined in paragraph (d) of this Article V) may be paid 

no less than 80 percent of such minimum wage, but the total number 

of learners shall not exceed 5 percent of the total number of employees covered by the provisions of this paragraph (b) and provided further, that after three months of work learners shall be 

paid not less than the minimum wage herein provided. 

(c) On and after the effective date the minimum wage that shall 

be paid by any employer to all employees other than those engagert 

in the production of the products of the heat exchange industry and 

in labor operations directly incident thereto shall be at the rate of 

$15.00 per week, whether calculated on an hourly, weekly, monthly, 

piecework, or any other basis in accordance with the usual custom 

of the employer, provided, however, that office boys or girls may be 

paid not less than 80 percent of such minimum wage, but the total 

number of such office boys or girls shall not exceed 5 percent of the 

total number of employees covered by the provisions of this paragraph (c). - (d) Nothing in this Article V shall apply to or affect a bona fide 

apprentice employed under a system or course of training which 

when completed will make the apprentice a skilled mechanic. 

(e) Not later than 90 days after the effective date each employer 

in the heat exchange industry shall report to the Administrator 

through the Supervisory Agency, hereinafter provided for, the action taken by such employer in adjusting the hourly wage rates 

for all employees receiving more than the minimum rates provided 

jn paragraph (b) of this Article V, but receiving less than $35.00 

per week of regular work period. 

ARTICLE VI-HoURs 

On and after the effective date no employer shall employ any 

emplbyee except executives, administrative, supervisory, and technical 

employees and their respective staffs who are paid at the rate of 

$35.00 or more per week, traveling sales and service employees, 
3 

watchmen, and firemen, in excess o£ 40 hours per week, provided, 

however, that these limitations shall not apply to conditions o£ seasonal or peak demand which create an unusual and temporary burden 

for production or installation; in such special cases such number o£ 

hours may be worked as are required by the necessities of the situa.- tion, but not to exceed 48 hours per week £or any six weeks in any calendar 6 months' period; and provided further that these limitations 

shall not apply to employees on emergency, maintenance, or repair 

work, or to very special cases where restriction o£ hours o£ highly 

skilled workers would unavoidably reduce or delay production 

Where in any case an employee whose hours of work are herein specied (other than sal'aried employees) shall work in excess o£ 8 hours per 

day at least time and one third shall be paid £or the excess hours 

so worked. 

ARTICLE VII-ADMINISTRATION 

Heat Exchange Institute is hereby designated an agency £or promoting the performance of the provisions o£ this code by the members 

of the heat exchange industry; provided, however, that no inequitable restrictions upon membership in such Institute shall at any 

time be imposed. 

With a view to keeping the President o£ the United States and the 

Administrator informed as to the observance or nonobservance o£ 

this code, and as to whether the heat exchange industry is taking 

appropriate steps to effectuate in all respects the declared policy of 

the National Industrial Recovery Act, each employer shall, when 

required by the Supervisory Agency, prepare and file with such person or organization as the Supervisory Agency may designate, an 

earnings statement and balance sheet in a form prescribed by the 

Supervisory Agency. Each employer shall likewise prepare and 

file with such person or organization as the Supervisory Agency may 

designate and at such times and in such manner as may be prescribed statistics o£ plant capacity, volume of production, volume of 

sales in units and dollars, orders received, unfilled orders, stocks on 

hand, inventory, both raw and finished, number o£ employees, wage 

rates: employee earnings, hours o£ work, and such other data or 

information as the Supervisory Agency may from time to time re· 

quire. In addition to information required to be submitted to the 

Snpervisory Agency, there shall be furnished to Government agencies 

such statistical in£onnation as the Administrator may deem necessary 

for the purposes recited in Section 3 (a) of the National Industrial 

Recovery Act. 

ARTICLE VIII-SuPERVISORY AGENCY 

To administer and supervise, and to facilitate the enforcement 

of the provisions o£ this code there shall be a committee o£ five members connected with the heat exchange industry called the Supervisory Agency. The President or the Administrator may appoint 

not more than three additional member without vote. The committee shall be elected at a meeting o£ employers called immediately 

after the approval by the Pre ident of this code and held immediately 

prior to the effective date thereof. The meeting shall be called by 

H eat Exchange Institute and notice thereof shall be sent by telegraph 
4 

and registered mail to all known manufacturers in the heat exchange 

industry. The notice shall specifically state that voting at the meeting may be in person or by proxy. The members of the committee 

shall be elected by a vote of the employers present in person or by 

proxy at such meeting passed in two ways: (a) one member by a 

majority vote of employers present in person or by proxy as such, 

and (b) four members by a 51% vote by employers present in person 

or by proxy weighted on the basis of one vote for each $50,000 of 

sales of products of the industry made in the calendar year 1932 as 

reported to th~ Secretary of Heat Exchange Institute, but each employer shall have at least one vote. :Members of the Committee to 

fill vacancies due to death or resignation or because a member thereof 

has ceased to be connected with the industry shall be elected at meetings of employers called by Heat Exchange Institute on at least ten 

(10) days' notice by registered mail sent to all known manufacturers 

in the heat exchange industry. At such meetings the vote shall be 

taken in the manner hereinabove described. 

If formal complaint is made to Heat Exchange Institute or to 

the Supervisory Agency that the provisions of this code have been 

violated by any employer, the supervisory agency or the proper 

supervisory committee hereinafter provided for shall make such 

investigation as in its opinion is necessary. 

ARTICLE IX-STATISTICS 

Except as otherwise provided in the National Industrial Recovery Act, all statistics, data, and information filed in accordance 

with the provisions of Article VII shall be confidential, and the 

statistics, data, and information of one employer shall not be revealed to any other employer except that for the purpose of facilitating the administration and enforcement of the provisions of this 

code, the Supervisory Agency, by their duly authorized representatives (who shall not be in the employ of any employer affected by 

this code) and the Administrator shall have access to any and all 

statistics, data, and information that may be furnished in accordance with the provisions of this code. 

ARTICLE X-PARTICIPATION 

Any member of the heat exchange industry is eligible for membership in the Heat Exchange Institute. Any employer shall be 

entitled to vote on, and share in the benefits of the activities of. the 

Supervisory Agency, and may participate in any endeavors of Heat 

Exchange Institute in the preparation of any revisions of, or additions or SUl)plements to, this code by accepting his proper prorata 

share of the reasonable cost of creating and administering it, as 

determined by the Supervisory Agency. 

ARTICLE XI-AccouNTING AND CosTING 

Every employer shall use an accounting system which conforms 

to the principles of and is at least as detailed and complete as the 

uniform and standard method of accounting and the uniform and 
5 

standard method of costing to be formulated or approved by the 

Supervisory Agency, with such variations therefrom as may be required by the individual conditions affecting any employer or group 

of employers and as may be approved by the Supervisory Agency 

and made supplements to said formulated or approved methods of 

accounting and costing. 

ARTICLE XII-SALES BELOW CosT 

No employer shall sell or exchange any product of his manufacture at a price or upon terms or conditions that will result in the 

customer paying for the goods received less than the cost to the 

seller, determined in accordance with the uniform and standard 

method of costing hereinabove prescribed; provided, however, 

(1) that inventories which must be converted into cash to meet 

emergency needs, dropped lines, or seconds may be disposed of in 

such manner and on such terms and conditions as the proper supervisory committee may approve and as are necessary to move such 

product into buyers' hands; and provided further, (2) that selling 

below cost in order to meet existing competition on products of 

equivalent design, character, quality, or specifications shall not be 

deemed a violation of this Article if provision therefor is made in 

supplemental codes for any branch or subdivision of the industry, 

which may be hereafter prepared and duly approved by the 

President. 

ARTICLE XIII-PRICE LISTS 

If the Supervisory Agency determines that in any branch or 

subdivision of the heat-exchange industry it has been the generally 

recognized practice to sell a specified product on the basis of printed 

net price lists, or price lists with discount sheets and fixed terms of 

sale and payment, each manufacturer of such product shall within 

ten (10) days after notice of such determination file with the Supervisory Agency a net price list or a price list and discount sheet, as 

the case may be, individually prepared by him, showing his current 

prices, or prices and discounts, and terms of sale and payment, and 

the Supervisory Agency shall immediately send copies thereof to all 

known manufacturers of such specified product. Revised price lists 

andjor discount sheets may be filed from time to time thereafter with 

the Supervisory Agency by any manufacturer of such product, to 

become effective upon the date specified therein, but such revised 

price lists and/or discount sheets shall be filed with the Supervisory 

Agency twenty (20) days in advance of the effective date, unless the 

proper Supervisory Committee shall authorize a shorter period. 

Copies of such revised price lists and/or discount sheets, with notice 

of the effective date specified, shall be immediately sent to all known 

manufacturers of such product, who thereupon may file, to become 

effective upon the date when the revised .Price list andjor di count 

sheet first filed shall go into effect, revisions of their price lists 

and/or discount sheets establishing prices or prices and discounts not 

lower than those established in the revised price lists and/or discount 

sheets first filed. 
6 

I£ the Supervisory Agency shall determine that in any branch or 

subdivision of the heat exchange industry not now selling its product on the basis of price lists, with or without discount sheets, with 

fixed terms of payment, the distribution or marketing conditions in 

said branch or subdivision are the same as or similar to the distribution or marketing conditions in a branch or subdivision of the 

industry where the use of price lists, with or without discount sheets, 

is well recognized, and that a system of selling on net price lists or 

price lists and discount sheets with fixed terms of payment should be 

put into effect in such branch or subdivision, each manufacturer of 

the product or products of such branch or subdivision shall within 

twenty (20) days after notice of such determination file with the 

Supervisory Agency net price lists or price lists and discount sheets, 

containing fixed terms of payment, showing his prices and discounts 

and terms of payment, and such price lists and/or discount sheets 

may be revised in the manner hereinabove provided. 

The Supervisory Agency shall have power on its own initiative or 

on the complaint of any emJ?loyer to investigate any price for any 

product shown in any net pnce list or price list with discount sheet 

filed with the Supervisory Agency by any employer, and, for the purpose of the investigation thereof, to require such employer to furnish 

such information concerning the cost of manufacturing and selling 

such product as the Supervisory Agency shall deem necessary or 

proper for such purpose. If the Supervisory Agency arter such 

investigation shall determine that such price is an unfair price for 

such product, having regard to the cost of manufacturing and selling 

such product, and that the maintenance of such unfair price may 

result in unfair competition in the industry and be contrary to the 

spirit of the National Industrial Recovery Act, the Supervisory 

Agency may require the employer that filed the list or discount sheet 

in which such unfair price is shown to file a new list or discount 

sheet showing a fair price for such product, which fair price shall 

become effective immediately upon the filing of such list or discount 

sheet. If such employer shall not within ten (10) days after notice 

to it of such determination by the Supervisory Agency file a new 

list or discount sheet showing such fair price for such product, the 

Supervisory Agency shall have power to fix a fair pnce for such 

product, which fair price, however, shall not be more than the price 

o£ any other employer at that time effective for such product, and 

in respect of which the Supervisory Agency shall not theretofore 

have begun an investigation or a complaint shall not have been made 

by any employer. When the decision of the Supervisory Agency 

fixing such fair price shall have been filed with the Secretary of 

Heat Exchange Institute and the Secretary shall have given notice 

thereof to such employer, such fair price shall be the price for such 

employer for such product until it shall have been changed as in 

this code provided. 

No employer shall sell directly or indirectly by any means whatsoever any product of the industry covered by the provisions of this 

Article at a price lower or at discounts greater or on more favorable 

terms of payment than those provided in his current net price lists 

or price lists and discount sheets. The operation of this Article XIII 

shall at all times be subject to review by the Administrator. 
7 

ARTICLE XIV-DISTRIBUTORS' RESALES 

No employer shall cooperate in the violation of this code by selling 

to or through any distributor who does not agree to resell only in 

accordance with the provisions of this code. This Article shall be 

in effect until the approval by the President of a code for such 

distributors. 

ARTICLE XV-INDUSTRY GROUPS 

Aggregations of employers having a common interest and common 

problems will be grouped by Heat Exchange Institute for administrative purposes in various subdivisions or product classifications and 

report of such grouping made to the Administrator. In each subdivision or product classification there will be a supervisory committee appointed by the Supervisory Agency and report thereof 

made to the Administrator. 

ARTICLE XVI-EXPORT SALES 

The provisions of this code concerning sales shall not apply to 

direct export sales of any product, or to sales of any product destined 

ultimately for export, or to sales of parts used in the manufacture 

of products for export. The term "export" shall include shipments to foreign countries and to the territories and possess.Wns of 

the United States. 

ARTICLE XVII-STATUS PRIOR TO EFFECTIVE DATE 

Prior to its approval by the President, applicant may at any time 

change or modify any provision of this code (except those provisions 

required by Sections 7 (a) and 10 (b) of the Act), or may withdraw 

this code. 

The applicant will not be deemed to have consented to any change 

or modification of this code which may be effected by the President's 

order of approval, unless such change or modification is submitted 

to the applicant and consented to by the applicant. 

ARTICLE XVIII-RIGHTS OF PRESIDENT 

The President may from time to time cancel or modify any order, 

approval, license, rule, or regulation issued under Title 1 of the 

National Industria} Recovery Act. 

ARTICLE XIX-AMENDMENTS AND ADDITIONS 

Such of the provisions of this code as are not required by the N ational Industrial Recovery Act to be included herein may, with the 

approval of the President of the United States, be modified or eliminated as changed circumstances or experience may indicate. This 

code is intended to be a basic code, and study of the trade practices 

of the heat exchange industry will be continued by the Executive 

Committee of Heat Exchange Institute with the intention of submitting, from time to time, to the Administrator for approval additions 
8 ,, ,lll\11\~mli 3 1262 ,tl~l~',fl 08584 1111~ lilllill ['~'i'''~'~""''l 3075 

to, or revisions of this code applicable to all employers in the heat 

exchange industry and supplemental codes applicable to one or more 

branches or subdivisions or product classifications of the heat exchange industry, such supplemental codes, however, to conform to and 

be consistent with the provisions of this code as now constituted or 

hereafter changed. 

ARTICLE XX-SEGREGATION OF INDUSTRY 

If any employer of labor in the heat exchange industry is also an 

employer of labor in any other industry, the provisions of this code 

shaH apply to and affect only that part of his business which is 

included in the heat exchange industry. 

0