Approved Code No. 423 Registry No. 1110-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

·DROP FORGING INDUSTRY 

AS APPROVED ON MAY 10, 1934 

WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 193' 

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

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

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

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

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

CleYeland, Ohio : Chamber of Commerce. 

Dallas, 'l'e:x:. : Chamber of Commerce Building. 

Detroit, 1\Iich.: 801 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kan.·as City, Mo.: 1028 Baltimore Avenue. 

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. 

Philadelphia, Pa.: 422 Commercial Trust Building, 

Pittsburgh, Pa. : Chamber of Commerce Building, 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo. : 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Appr-oved Code No. 423 

CODE OF FAIR COMPETITION 

FOR THE 

DROP FORGING INDUSTRY 

As Approved on May 10, 1934 

ORDER 

APPROVING CoDE oF FAIR CoMPETITION FOR THE DRoP 

FoRGING 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 Drop Forging 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 No. 6543-A, dated December 

30, 1933, and otherwise; do hereby incorporate by reference said 

annexed report and do find that said Code complies in all respects 

with the pertinent provisions and will promote the policy and purposes of said Title of said Act ; and do hereby order that said 

Code of Fair Competition be and it is hereby approved; provided, 

however, that the words " ninety -six ( 96) hours " as contained in 

Section 2 (d) of Article III be deleted and the words "seventy-two 

(72) hours" be substituted therefor; provided further, that Section 

3 of Article IX be deleted; provided further, that the provisions 

of Section 4 of Article VII, insofar as they prescribe a waiting 

period between the filing with the Code Authority and the effective 

date of revised price lists or revised terms and conditions of sale 

be and they are hereby stayed pending my further Order either 

within a period of sixty (60) days from the effective date of this 

Code or after the completion of a study of open price associations 

now being conducted by the National Recovery Administration; and 

provided further, that the continued participation of the American 

Drop Forging Institute in the Code Authority after thirty (30) 

days from the effective date of this Code shall be contingent upon 

its amending its constitution and by-laws to the satisfaction of the 

Administrator. 

Approval recommended : 

HuGHS. JoHNSON, 

Administrator for Iruflu.strial Recovery. 

A. R. GLANCY.] 

Division AdJministrator. 

wASHINGTON, D.C., 

May 10, 1934. 

58132°----544-56----34 (85) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

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

Drop Forging Industry, a Public Hearing having been held thereon 

in Washington, D.C., on February 1, 1934, in accordance with the 

provisions of the National Industrial Recovery Act. 

PROVISIONS AS TO HOURS AND WAGES 

The Code provides for a 40 hour and 6 day week, except as 

herein specified below : 

Those employed in an executive, supervisory or administrative 

capacity or their immediate assistants, and salaried technical men 

and field service engineers, all of whom are being paid at the rate 

of $35.00 or more per week, and outside salesmen; 

Watchmen, provided their hours shall not exceed 56 per week, 

and plant engineers and firemen, provided they shall not be permitted to work in excess of 45 hours per week, and further provided 

that all three classes shall be given one day of rest in seven; 

Those engaged when a seasonal or peak demand period exists, or 

when the requirements of a continuous process, or breakdown, or 

emergency place an unusual temporary burden on the Industry or 

when restriction of hours of skilled workers would unavoidably delay 

other productive workers, provided that the hours worked per man 

per week shall not exceed 48, and that the number of hours worked 

in excess of allowable hours in any 6 months period shall not exceed 

96 (this period has been limited to 72 hours in the Administrative 

Order); 

Die and tool makers, hammer crews and maintenance men, who 

may work beyond the maximum hours when additional highly skilled 

workers are not available, and when restriction of their hours would 

unavoidably reduce the hours of other productive workers, providing time and one-half shall be paid for overtime. 

The Industry recognizes the desirability of the 8 hour day and 

in so far as it reasonably can will endeavor to employ its labor on 

that basis. 

The Code establishes a 40 cent minimum rate with the exception of 

the following States in which the minimum is 32 cents: North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana, Arkansas, and Tennessee. 

Persons employed in clerical, office, engineering, sales (except outside salesmen), or delivery work shall not be paid less than at the 

rate of $15.00 per week. 

Apprentices may be paid a starting rate of 30% of the rate of a 

competently skilled mechanic, provided he shall not be paid less than 

(86) 
87 

24 cents per hour and provided that the ratio of new apprentices to 

skilled mechanics shall not be more than one to five. They shall be 

advanced at regular intervals. 

The standard clauses regarding equitable adjustments, employees 

of limited capacity and females performing the same labor as males 

are embodied in this Code, as well as the standard general labor 

prOVISIOns. 

GENERAL STATEMENT 

This Industry has been keenly affected by the depression. Estimated annual sales declined from $98,763,000. in 1929 to $15,446,000. 

in 1932 or 84%. Based on returns from National Recovery Administration questionnaires, sales in 1933 amounted to $19,382,000, an 

increase of 25% over the previous year. The following table demonstrates clearly the trend of the Industry from 1929 tnrough 1933 as 

to invested capital, production capacity and annual sales: 

TABLE I.-Invested capital, production capa.c·ity amd annual sales, 1928-1933 

Col. 1 Col. 2 Col. 3 Col. 4 

Year Invested Production Annual sales, Annual sales, capital, capacity, dollars dollars dollars dollars ($1,000)1 ($1,000)1 ($1,000)1 ($1,000)1 

1929 ____________________________________________ $57,097 $130,523 $98, 763 $94,473 1930 __ _______ ___________________________________ 58,810 133,603 55,588 1931 ____________________________________________ -------------- 51,533 129,588 27,231 --------i5~55i 1932 ______________________________________ ______ 46,836 120,660 15, 446 1933 ___________________________________ _________ 44,195 116,688 a 8, 460 19,382 

1 Source: Code application. 2 Questionnaire returns sent out by National Recovery Administration: 71 concerns reporting 1929; 76 concerns reporting 1932 and 1933. s 6 months; estimated for 12 months; $16,920,000. 

In 1929 there were approximately 16,425 persons employed, of 

which 95.3 % were factory workers. The decline in factory employ- ment has been drastic, dwindling from 15,653 in 1929 to a low of 

3866 or 75 % in the fourth quarter of 1932. This total subsequently 

was increased to 7091 in the fourth quarter of 1933. 

The estimated number of man-hours declined from 738,822 in 1929 

to 114,434 in the fourth quarter of 1932, and increased to 253,843 in 

the third quarter of 193·3. As average hours worked in November 

1933 were 32.4 per week, an increase in employment under this Code 

will depend almost entirely on improvement in productive activity. 

If production should increase to a point where man-hour requirements would reach 400,000, approximately 10,000 workers would ba 

employed, or 63.9% of the 1929 working level. 

FINDINGS 

The Assistant 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: 
88 

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 pro- vide 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 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 group 

is an industrial group truly representative of the aforesaid Industry; 

and that said group imposes no inequitable restrictions on admission 

to membership therein. 

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

or monopolistic practices. 

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

small enterprises and will not operate to discriminate against them. 

(:f) Those engaged in other steps of the economic process have 

not been deprived of the right to be heard prior to approval of said 

Code. 

For these r easons, therefore, I have approved this Code; provided, 

however, that the words "ninety-six (96) hours" as contained in 

Section 2 (d ) of Article III be deleted and the words " seventy-two 

(72) hours" be substituted therefor; provided :further, that Sectjon 

3 of Article IX be deleted ; provided further, that the provisions of 

Section 4 of Article VII, insofar as they prescribe a waiting period 

between the filing with the Code Authority and the effective date o:f 

revised price lists or revised terms and conditions of sale be stayed 

pending my further Order either within a period of sixty (60) days 

from the effective date of this Code or after the completion of a 

study of open price associations now being conducted by the National Recovery Administration; and provided :further, that the 

continued participation of the American Drop Forgin_e; Institute 

in the Code Authority after thirty (30) days from the ettective date 

of this Code shall be contingent upon its amending its constitution 

and by-laws to the satisfaction of the Administrator. 

Respectfully, 

MAY 1 o, 1934. 

HuGHS. JoHNSON, 

Administrator. 
CODE OF FAIR COMPETiq'ION FOR THE DROP FORGING 

INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial Re_l 

covery Act, the following provisions are established as a Code of 

Fair Competition for the Drop Forging Industry, and shall be the 

standard o.f fair competition for such Industry, and shall be binding 

upon every member thereof. 

ARTICLE II-DEFINITIONS 

The term "Drop Forging Industry" as u,sed herein includes per .. ' 

sons actively engaged in the manufacture for sale of articles properly classified as drop forgings. 

The term" drop forging" as used herein includes the basic cleaned, 

trinuned, and sized metal article (except when made from aluminum 

or copper base metals), initially formed by placing and working hot 

metal in a plastic but solid state between reciprocating die impressions, .forms or cavities in closed dies, and includes such above-described articles made according to user's specifications prepared 

either with or without subsequent dissimilar operations such as finish grinding or machining, except when stocked and catalogued for 

general sale by the maker. I 

The term "member of the Industry" includes all those engaged 

in the Industry either as an employer or on his or its own behalf 

other than as an employee. For the purposes of this Code a corporation and its subsidiaries and also concerns which in effect are under 

practically the same ownership shall be regarded as one person. 1 

The term" Institute" as used herein, refers to the American Drop 

Forging Institute. 

The words "neutral agency" shall refer to the neutral agency 

specified in Section 7 of Article VI. 

The term "person" as used herein includes an individual, firm, 

association, corporation, trust, trustee, or receiver. 

The term "employer" as used herein, means any person engaged 

in the Industry as an employer. , 

The term " employee " as used herein means anyone engaged in the 

Industry in any capacity receiving compensation for his services, 

irrespective of the nature or method of payment o.f such compensation. 

The term "apprentice" as used herein ,shall mean 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. 

The terms "President", "Act", and "Administrator" as used 

herein shall mean respectively the President of the United States, 

(89) 
90 

~Title I of the N ntional Industrial Recovery Act, and the Administrator for Industrial Recovery. 

Population for the purposes of this Code shall be determined by 

reference to the 1930 Federal Census. 

ARncLE III-"\VoRKING HoURs 

SECTION 1. No employee shall be permitted to work in excess o:f 

forty ( 40) hours in any one week or more than six ( 6) days in any 

seven (7) day period, except as otherwise expressly provided in this 

Article III. 

SEcTION 2. (a) The provisions of this Article III shall not apply 

to executives, those employed in a supervisory or administrative 

capacity or their immediate assistants, and salaried technical men 

and field service engineers being paid at the rate of Thirty-five 

Dollars ($35.00) or more per week; and 

(b) Outside salesmen; and 

(c) Watchmen, plant engineers and firemen, provided, however, 

that watchmen shall not be permitted to work in excess of fifty-six 

(56) hours per week and plant engineers and firemen shall not be 

permitted to work in excess of forty-five (45) hours per week and 

both watchmen, plant engineers and firemen shall have at least one 

( 1) day off in seven (7). 

(d) The foregoing limitations shall not a.pply when seasonal or 

peak demands, or the requirements of a continuous process, or breakdown, or emergency, place an unusual and temporary burden on the 

Industry or when restriction of hours of skilled workers would unavoidably delay other productive workers. In any such case such 

number of hours may be worked as are required by the necessities 

of the situation, provided that in no such case shall the hours worked 

by any worker in any one week exceed forty-eight ( 48) and provided further that the number of hours worked by any worker in 

any six (6) months period, in excess of forty (40) hours per week 

(or fifty -six (56) hours for watchmen and forty-five ( 45) hours 

tor plant engineers and firemen) shall not exceed ninety -six ( 96) 

hours. Any employer may adopt for each location such six-month 

period as is most appropriate for the business there conducted.1 

(e) Provided further that when additional skilled men are not 

available, die and tool makers, ha1mner crews and maintenance men.; 

at the request of the employer, may work additional hours beyond 

those specified above in this Article III, when restriction of hours 

of these highly skilled workers would unavoidably reduce the hours 

of other productive workers, provided such additional hours shall 

be paid for at the rate of time and one-half. 

SECTION 3. The Industry recognizes the desirability of and accepts 

the principle of the eight (8) hour working day for labor and in so 

far. as it reasonably can, the I ndustry will endeavor to employ 

its labor on that basis. 

SECTION 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 exceeds the maximum permitted 

herein. 

1 See paragraph 2 of order approving this Code. 
91 

SECTION 5. Any employer who does the work of an employee shall 

be subject to the provisions of this Code as to hours of labor. 

ARTICLE IV-WAGES 

SEcTION 1. No employee shall be paid less than at the rate of forty 

cents ( 40¢) ~er hour except as herein other·wise provided and except 

that the minimum hourly rate of wages for employees inN orth Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana, Arkansas and Tennessee shall be thirty-two cents (32¢) per 

hour. 

SECTION 2. No person mnployed in clerical, office, engineering, sales 

(except outside salesmen) A. or deli very work shall be paid at a rate of 

less than fifteen dollars ( ~15.00) per week. 

SEcTION 3. This article establishes a minimum rate of pay which 

shall apply, irrespective o:f whether an employee is actually compensated on a time rate, piece work, or other basis. 

SEcTION 4. Apprentices shall be paid a starting rate of not less 

than thirty (30) per cent of the rate paid to a compet~mtly skilled 

mechanic in the trade in which the apprentice is being trained and 

prevailing in the shop where the apprentice is employed, provided, 

however, that the starting rate paid to any apprentice shall not be 

less than twenty-four cents ( 24¢) per hour. 

Wages paid to apprentices shall be advanced at intervals in measured amounts so that the rate :for the last period of apprenticeship 

shall not be less than eighty (80) per cent o:f the rate paid to a 

competently skilled mechanic in the particular trade in the shop 

where the apprentice is employed. . 

I:f an apprentice is paid during hours in which he is solely obtaining school training, or i:f an apprentice is paid a bonus at the 

end o:f his apprenticeship, such payments may be credited in 

computing his compensation. 

At no time shall a new apprentice be admitted to apprenticeship 

by any employer when such action will bring the total number o:f 

such apprentices so employed to a ratio of more than one apprentice 

to five competently skilled mechanics employed by such employer 

in the particular trade in question. 

· All apprentice indentures or written contracts shall be submitted 

to the Code Authority :for approval and shall be made available 

to the Administrator. 

SEcTioN 5. Equitable adjustment o:f compensation o:f employees 

receiving more than the minimum rates o:f pay herein prescribed shall 

be made by all employers who have not heretofore made such adjustments, and all employers shall within thirty (30) days after 

approval o:f this Code, report in :full to the Code Authority concerning such adjustments whether made prior to or subsequent to 

such approval, provided, however, that in no event shall hourly rates 

of pay be reduced. 

SECTION 6. A person whose earning capacity is limited because o:f 

age, physical or mental handicap, or other infirmity, may be employed on light work at a wage below the minimum established by a 

code, i:f the employer obtains from the State authority, designated 

by the U.S. Department of Labor, a certificate authorizing such 
92 

person's employment at such wages and for such hours as shall pe 

stated in the certificate. Such authority shall be guided by the 

instructions of the U.S. Department of Labor in issuing certificates 

to such persons. Each employer shall file monthly with the Code 

Authority a list of all such persons employed by him, showing the 

wages paid to, and the maximum hours of work for such employee. 

SECTION 7. Minimum rates of pay shall not apply to outside 

salesmen. 

SECTION 8. Female employees· performing substantially the same 

work as male employees shall receive the same rate of pay as male 

employees. 

ARTICLE V-GENERAL LABOR PROVISIONS 

SECTION 1. No individual under sixteen (16) years of age shall be 

employed in the ·Industry. No individual under eighteen (18) years 

of age shall be employed in processing the products of the Industry. 

An employer shall be deemed to have complied with this Section, 

if it shall have a certificate or permit issued by governmental or 

municipal authority showing that the employee is of the required 

age. 

SECTION 2. As required by Sub-section (a) of Section 7 of the 

Act, the following provisions are conditions of this Code: 

(a) Employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be 

free from interference, restraint, or coercion of employers of labor 

or their agents in the designation of such representatives or any 

self-organization or any other concerted activities for the purpose of 

collective bargaining or other mutual aid or protection. 

(b) No employee and no one seeking employment shall be required 

as a condition of employment to join any company union, or to 

refrain from joining, organizing, or assisting a labor organization 

of his own 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. 

SECTION 3. No employer shall reclassify employees or duties of 

occupations performed or, engage in any other subterfuge, for th~ 

purpose of defeating the purposes or provisions of the Act or of this 

Code. 

SECTION 4. Every employer shall make reasonable provision for the 

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

of their employment. Standards for safety and health shall be submitted by the Code Authority to the Administrator for approval 

within six months after the effective date of this Code. 

SECTION 5. No provision in this Code shall supersede any laws 

within any State which impose more stringent requirements on employers as to age of employees, wages, hours of work, or as to safety, 

health, or sanitary conditions, or insurance or fire protection, or 

general working conditions than are imposed by this Code. 

SECTION 6. Within ten (10) days after the effective date of this 

Code employers shall post copies of Articles III, IV, and V of this 

Code in conspicuous places accessible to employees. 
93 

ARTICLE VI-CoDE AUTHORITY 2 

SECTION 1. The Executive Committee of the Institute shall be the 

temporary Code Authority until the next annual meeting of the 

Institute at which time a Code Authority, consisting of five members., 

one each from five geographical districts, shall be elected by all 

members of the Industry in the respective geographical districts by 

vote weighted by volume and class of business. Any member of the 

Industry shall be eligible to membership on the Code Authority. The 

geographical districts and the voting power of ea·ch member of the 

Industry and other matters relating to the election of the members 

of the Code Authority shall be governed by the By-Laws of the Code 

Authority, as drafted by the temporary Code Authority, provided 

that such geographical districts, voting power, and other matters 

relating to the election of the Code Authority shall not become 

effective until approved by the Administrator. Each member of the 

Code Authority shall serve for one year or until his successor is 

elected and qualifies. Vacancies in the Code Authority sh all be filled 

by the majority of the remaining members, but the succeeding member must be from the same geographical district as the former 

member. 

The Administrator may appoint one to three members without vote 

to serve with the Code Authority, (without expense to the Industry, 

unless the Code Authority agTees to pay such expense), in the administration of the Code. Such members when appointed shall be 

given reasonable notice of each meeting of the Code Authority and 

may sit at any meeting thereof. 

SECTION 2. Each trade or industrial association directly or indirectly participating in the selection or activities of the Code Authority shall (1) impose no inequitable restr~ctions 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 is necessary to effectuate the purposes of the 

Act. 

SECTION 3. 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 provisions of the Act, he may require an 

appropriate modification in the method of selection of the Code 

Authority by the membBrs of the Industry. 

SEcTION 4. Every member of the Industry shall pay to the Code 

Authority his reasonable share of the expenses of administering this 

Code by the Code Authority. Such reasonable share shall be determined by the Code Authority and assessed by it against the members 

of the Industry on the basis of the volume and class of business of 

the various members of the Industry. 

Failure of any member of the Industry to pay any such assessment 

for a period of thirty (30) days after the date on which it shall 

2 See paragraph 2 of order approving this Code. 
94 

become payable shall entitle the Code Authority to deprive such 

member of the Industry of all participation in the administration 

and/or any benefits of the Code, and sach member of the Industry 

shall continue to be liable for his share of all assessments. 

SECTION 5. The Code Authority shall have all powers and duties 

conferred upon it by the Code and generally all such other powers 

as shall be necessary and proper to enable it fully to administer the 

Code and effectuate its purposes. 

The Code Authority may delegate from time to time any of its 

authorities and duties to persons or committees designated by it. It 

shall have power, from time to time, to revoke any delegation of its 

authority or duties and to change the personnel of such committees, 

provided that nothing contained in this Section ( 5) shall relieve the 

Code Authority of its duties or responsibilities under this Code, and 

that such agencies shall at all times be subject to and comply with 

the provisions hereof. 

The Code Authority, except as otherwise specified, shall act by 

a majority vote. 

SECTION 6. The Code Authority may make recommendations to 

the Administrator for the coordination of the administration of this 

Code, with such other codes, if any, as may be related to the 

Industry. 

The Code Authority may recommend to the Administrator further 

fair trade practice provisions to govern members of the Industry in 

their relations with each other or with other industries and may 

recommend to the Administrator measures for industrial planning. 

SECTION 7. The Code Authority shall have the power to obtain 

from members of the Industry all reports, including statistics, as 

the Code Authority, subject to the disapproval of the Administrator, 

may deem necessary for the administration of this Code. All such 

reports and information shall be made to a neutral, confidential 

agency to be designated from time to time by the Code Authority. 

The neutral agency may make and distribute composites and averages, but shall not disclose any individual report except in connection with an alleged breach of the Code, or except when such report 

discloses a violatiOn of the Code. All reports and statistics shall be 

in such form and detail as the Code Authority may from time to 

time determine, subject to the approval of the Administrator. 

In addition to the information required to be submitted to the 

neutral agency there shall be furnished to the Administrator such 

information as is necessary for the purposes recited in Section 3-A 

of the Act to such Federal and State agencies as the Administrator 

may designate; nor shall anything in this Code relieve any per~on 

of any existing obligation to furnish reports to Government agencies. 

SECTION 8. Nothing contained in this Code shall constitute the 

members of the Code Authority partners for any purpose; nor shall 

any member of the Code Authority be liable in any manner to anyone 

for any act of any other member, officer, agent, or employee of ~he 

Code Authority. Nor .sJ;all an~ member of the C?de 1\uthonty ~xercising reasonable diligence In the. conduct ?f .his duties hereunder be liable to anyone for any act10n or omission to act under 

this c'ode, except for his wilful misfeasance or n?nfeasance. . SECTION 9. If the Administrator shall determine that any act10n 

of a Code Authority or any agency thereof may be unfair or unjust 
95 

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 agency pending final action which shall not 

be effective unless the Administrator approves or unless he shall fail 

to disapprove after thirty (30) days' notice to him of intention to 

proceed with such action in its original or modified :form. 

ARTICLE VII-CosTs AND AccouNTING 

SECTION 1. The Code Authority shall cause to be formulated an 

accounting system and methods of cost finding and/or estimating 

capable of use by all members of the Industry. After such system 

and methods have been formulated, full details concerning them 

shall be made available to all members as shall full details of all 

changes therein as and when made. Before becoming effective the 

cost system and methods of cost finding and estimating and all 

changes therein shall be filed with the Administrator subject to his 

disapproval within thirty (30) days. Thereafter all members shall 

determine and estimate costs in accordance therewith. 

SEOTION 2. No member of the Industry shall sell or offer to sell 

any product of the Industry for less than cost of such member determined in accordance with the accounting system and methods of cost 

finding and estimating prescribed by. the Code Authority, subject 

to such restrictions as the Administrator may deem necessary provided that it shall not be a violation of this section to sell or offer 

to sell :forgings below cost to meet the price of a member of the 

Industry whose delivered costs are lower, :for forgings of equivalent 

character, quality and specifications. 

SECTION 3. When the Code Authority determines that an emergency exists in this Industry and that the cause thereof is destructive price-cutting such as to render ineffective or seriously endanger 

the maintenance of the provisions of this Code, the Code Authority 

may cause to be determined the lowest reasonable cost of various 

classifications of industry products selected by it, such determination 

to be subject to such notice and hearing as the Administrator may 

require. The Administrator may approve, disapprove, or modify 

the determination. Thereafter, during the period of the emergency, 

it shall be an unfair trade practice for any member of the Industry 

to sell or offer to sell any products of the Industry for which the 

lowest reasonable cost has been determined at such prices or upon 

such terms or conditions of sale that the buyer will pay less there- for than said lowest reasonable cost of such products. 

When it appears that conditions have changed the Code Authority, 

upon its own initiative or upon the request of any interested party, 

shall cause the determination to be reviewed. 

SECTION 4. The Code Authority may ·from time to time select and 

specify classifications of products as to which any member of the 

Industry may after notice of such determination file with the neutral agency a price list prepared by such member of the Industry 

showing its current prices as to such classifications of products, but 

if such price list is filed more than ten (10) days after such notice, 

it shall not be effective until seven (7) business days after filing. 
96 

Whenever any new classification of products is added tG those for 

which price lists may be filed the Code Authority shall notify all 

members of the Industry known to it. The neutral agency shall 

immediately send notice of such prices to all members of the Industry known by the neutral agency to be engaged in the manufacture of the classification of products covered thereby. Revised 

price lists may be filed from time to time thereafter with the neutral 

agency by any member of the Industry to become effective upon the 

date specified therein, but such revised price list shall be filed with 

the neutral agency at least seven (7) business days in advance of its 

effective date unless the Code Authority shall authorize a shorter 

period. Similar notice of such revised prices with notice of the effective date specified shall be immediateJy sent to all members of 

the Industry known by the neutral agency to be manufacturing the 

classification of products covered by such changes, any or all of 

whom thereupon may file revisions of their respective price lists 

as to such classification of products, specifying the effective date 

which (if the revised price is not lower than a price then in effect 

or which has been filed within seven (7) business days), may be the 

date when the revised price list first filed shall go into effect. All 

price lists in effect shall be available to all interested parties. No 

member of the Industry may sell, or offer to sell, any forging in 

any such classification of products for less than the lowest price 

shown on a price list of such · classification of products which is in 

effect and on file with the neutral agency but may sell at the lowest 

listed price without regard to cost. However, no member shall 

initiate any listed price less than his own costs determined by the 

accounting system and cost finding methods herein prescribed. The 

Code Authority may specify the form of price lists and the information to be included therein. 3 

SECTION 5. The Code Authority shall have power on its own 

initiative, or on the complaint of any member of the Industry, to 

require any member of the Industry against whom complaint has 

been made to furnish such information concerning the cost of any 

product as the Code Authority shall deem necessary or proper for 

such purposes. 

SECTION 6. The sale price for the purpose of this Code shall be 

the net price after concessions of every character, including cash 

discounts. 

SECTION 7. No order for fabrication at one setting of the dies in 

quantities less than those stated in the contract of sale shall be 

accepted without adjusting the price to cover the increased cost of 

the smaller quantity. 

SEcTION 8. A contract by a person in the Industry to manufacture 

or fabricate material owned b:y others shall be deemed a contract 

of sale in interpreting the provisions of this Code. 

SECTION 9. Whenever a sale requires original dies and/or special 

tools (i.e., original with or new to the company quoting), the dies 

and special tools shall be paid for by the purchaser at not less than 

the full estimated cost. The charge for new dies shall be in addition 

to the die maintenance item included in the cost of forging. 

• See paragraph 2 of order approving this Code. 
97 

ARTICLE VIII-TRADE PRACTICE RULES 

SECTION 1. For all purposes of the Code, the acts described in this 

Article shall constitute unfair practices. Any member of the Industry who shall, directly or indirectly, through any officer, employee, 

agent or representative, knowingly use, employ or permit to be employed any of such unfair practice<;: shall be guilty of a violation of 

the Code. 

SECTION 2. 

RuLE 1. Offering inducements to bring about cancelation or reduction in price or quantity in contract of sale already rna le with other 

persons in the Indus try. 

RuLE 2. No member of the Industry shall release any person from 

all or any portion of a contract for the sale of any products of the 

Industry unless the purchaser pays all unabsorbed die costs and 

all loss on material purchased to fill the cancelled portion of the 

contract, including material wholly or partially fabricated. 

RuLE 3. The making or giving to any purchaser of any guarantee 

or protection in any form against decline in price. 

RULE 4. Selling or contracting to sell any product under any 

description which does not fully describe it in terms customarily 

used in the Industry. 

RuLE 5. Making an invoice which is false or misleading in any 

particular. 

RULE 6. Partaking in or aiding or abetting in any manner any 

violation of this Code. 

ARTICLE IX-MODIFICATION 

SECTION 1. This Code and all the provisions thereof are expressly 

made subject to the right of the President in accordance with Subsection (b) of Section 10 of the National Industrial Recovery Act 

from time to time to cancel or modify any order, approval, license, 

rule or regulation issued under Title I of said Act. 

SECTION 2. This Code, except as to provisions required by the Act, 

may be modified or amended from time to time, such modifications 

or amend1nents to be based upon application by the Code Authority 

to the Administrator and such notice and hearing as he shall specify, 

and to become effective on approval of the Administrator. 

SECTION 3. No person consenting to this Code shall be held to have 

consented to any modification hereof. 4 

ARTICLE X-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 XI-EFFECTIVE DATE AND TERMINATION 

This Code shall become effective on the second Monday after its 

approval by the Administrator, and shall continue in effect until 

• Deleted. See paragraph 2 of order approving this Code. 
UNIVERSIT Y OF FLO RI DA 

111111111111111111111111111111111111111111111111111 1111111111111 

98 3 1262 08856 0593 

June 15, 1935, unless prior thereto Title I of the National Industrial 

Recovery Act ceases to be in effect. Such termination shall not 

relieve any member of the I ndustry from the payment of any unpaid 

assessment. 

Approv-ed Code No. 423. 

Registry No. 1110-02. 

0