Registry No. 1103-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR TH·E 

BOILER MANUFACTURING 

INDUSTRY 

AS APPROVED ON OCTOBER 3, 1933 

BY 

PRESIDENT ROOSEVELT f 

WE DO OUR PART 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

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For sale by the Superintendent of Documents, Washingtan, D.C. - - - - - - - - P rice 5 ce nts 
,.. 

Tllis publication is for sale by the Superintendent of Documents, GoYernment 

Printing Office, Washington, D.C., and by district offices of the Bureau of 

Foreign and Domestic Commerce. 

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(Ill. 
EXECUTIVE ORDER 

CODE OF FAIR COMPETITION FOR THE BOILER MANUFACTURING 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 Boiler Manufacturing 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 the~eto, 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: 

NOvV, 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, except that subparagraph (a) of article VII must be eliminated. 

THE VV HITE HousE, 

October 3, 1933. 

Approval recommended: 

HUGH 8. JOHNSON, 

Adniinistrator. 

FRANKLIN D. ROOSEVELT. 

14487°-133-175--33 (1) 
SEPTEMBER 27, 1933. 

THE PRESIDENT, Tim WHITE HousE. 

MY DEAR Mn. PRESIDENT: I have the honor to submit and recommend for your approval, the Code of Fair Con1petition for the Boiler 

Manufacturing Industry. 

The following exhibits are included or attached: 

( 1) Final Code Sub1nitted 

(2) Notice of Hearing 

(3) Statement of Procedure 

( 4) Transcript of the Records , ( 5) Statistical Analysis of the Division of Economic Research 

and Planning 

(6) Report of Deputy Administrator 

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

Administration, I find that the Code complies with the requirements 

of Clauses 1 and 2, Subsection (a) of Section 3 of the National Industrial Recovery Act. 

I a111, my de.ar Mr. President. 

Very sincerely yours., 

(2) 

HuaH S. JoHNsoN, 

Aclministratm·. 
CODE OF FAIR COMPETITION FOR THE BOILER 

MANUFACTURING 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 Boiler Manufacturing Industry, and upon approval by the President shall be the standard of fair competition for 

this Industry. 

ARTICLE II-DEFINITIONS 

The term "boiler manufacturing industry" shall be held to comprise all persons engaged in the manufacturing of all types of steel 

steam boilers for .stationary and marine use ( except boilers for locomotives and such boilers as may be specifically covered by codes approved hereafter by the President) stokers of 36 square .feet of grate 

area and over, pulverized fuel equipment, superheaters, air preheaters, and economizers, and Class One welded pre.ssure vessels, as de-

.tined in the unfired pressure vessel section of the Boiler Code of 

the American Society of ~1echanical Engineers, and, with the approval of the Administrator, such other affiliated groups as may 

request inclusion. 

The term "employer" as used herein ,shall mean any member of 

the industry. 

The term "employee" as used herein shall mean any person employed in any phase of the industry, however compensated. 

The provisions of this Code shall become effective on the second 

Monday after the approval by the President. 

ARTICLE III-APPLICATION 

The American Boiler ~1anu:facturers As.sociation representing the 

industry hereby accepts and agrees to be bound by the following 

and/ or other regulations established by the A.B.M.A. Committee of 

Industrial Hecovery ( duly constituted by the American Boiler 1'1anufacturers Association in convention assembled June 5, 1933, as the 

agency for the preparation and administration of this Code), and 

approved by the Pre,siclent of the United States, and enforced impartially on all manufacturers in the industry whether members of 

this As ociation or not. 

ARTICLE IV-Cr-rILD LAnoR 

No member of this Industry shall employ any person under 16 

years of ao·e, provided, however, that where a State law provides a 

higher minimum age no person below the minimum provided by such 

State law shall be employed in that State. 

(3) 
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ARTICLE V-HOURS 

SECTION 1. (a) No employer shall employ, in any labor operations, 

any person more than 40 hours per week, five consecutive days and 

eight consecutive hours per day, except as provided under paragraph 

(b), provided, however that where it is neces ary to work less than 

40 hours per week, the hours may be divided by agreement between 

the employer and the employees to a lesser number of days per week, 

but in no case shall the hours exceed nine per day. 

(b) In cases of em0 rgency production, repair, or erection work 

that cannot be met by th~ employment of additional men and it becomes necessary, in order to protect life or property, to exceed the 

hours scheduled in (a), all such excess time shall be paid for at the 

rate- of not less than one and one half times the hourly rate for shop 

work and not less than double time for all repair, renewal, and 

construction and/or erection work. 

( c) No new apprentices shall be employed in the Industry except 

that the Ad1ninistrator may grant the employment of such new apprentices if in his judgment the existing surplus of unemployed labor 

is absorbed in reasonably steady employment. 

( cl) For all other employees except executive, administrative and 

supervisory employees, and tra Yelling and commission salespeople, 

the time worked shall not be in excess of 40 hours per week. 

SEc. 2. No employee shall be employed or permitted to work for 

one or more employers in the industry in the aggregate in excess of 

the prescribed nmnber of hours in a single week; provided, however, 

that if any employee works for more than one employer for an 

aggregate period in exce~s of such maximum without the connivance 

of any one of such employers, said employee shall not be held to 

have violated this paragraph. 

ARTICLE VI-\V AGES 

SECTION 1. (a) The minin1um wage that shall be paid by any 

employer to any employee of the Boiler Manufacturing Industry in 

labor operations directly incident thereto shall be 34¢ per hour for 

the Southern territory and 40¢ per hour for all other portions of the 

Uni~d States. The Southern territory is located South of the States 

of JJ'farylancl, ,Vest Virginia, and I(entucky, and East of the lVIissisippi River. 

(b) Old or partially disabled employees, and watchmen are not 

included in the above labor provision , except that they shall in no 

ca e be paid le s than 80% of the above minimmn, and provided that 

the total number of uch employees shall not exceed 2% of the 

total number employed by any one employer, or where less than 

one hundred persons are employed such employer shall be entitled 

to two (2) employees of this class. 

( c) The minimum wage that shall be paid by any employer to 

all employees, other than those covered in Section (a) except commission salespeople, shall be at the rate of $15.00 per week, provided, 

however, that office boys and girls may be paid not less than 80% 

of such minimum wage, bnt the total number of such office boys or 

girls shall not e:s:ceecl in any calendar month 5% of the total number 
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of all employees covered by the provisions of this paragraph ( c) 

and provided furth 0 r, that where a State law provides a higher 

minimum wage, no person shall be paid a lovver wage than that 

required by such law, ·within that State. 

SEc. 2. Any system of contracting shop work by which an employee undertakes to do a piece of work at a specific price and engages other employe8s to work for him is prohibited by this Code. 

SEc. 2. The -wage differentials for all operations shall be equitably 

readjusted, aha in nu cast sl:hlll they be decre_ased. No unfair advantage shall be taken of any employee in making this code effective. 

Each member of the industry shall report all such readjustments 

to the Code Authority within 30 days of the effective date. 

SEc. 4. No employer shall contract for the fabrication and/or 

erection of any product of ..this Industry with any employer or employee-, except when such employer or employee agrees to comply with 

the labor provisions of this Code during the perform.ance of the 

contract. 

SEc. 5. Each employer shall post .in each workshop and central 

notice board in his factory, Articles V and VI of this Code. 

ARTICLE VII-STATUTORY PROVISIONS 

All employers in the Industry shall comply with the following 

provisions of the National Industrial Recovery Act: 

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 

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

minimum rates of pay, and other conditions of emplo:yment, approved or prescribed by the President. 

(a.) Nothing in this Code is to prevent the selection, retention, and 

advance1nent of employees on the basis of their individual merit. 

ARTICLE VIII-PARTICIPATION 

1. Any member of the industry may participate in the endeavors 

of the A.B.M.A. Committee of Industrial Recovery in the preparation o:f any revisions o:f, or additions or supplements to, this Code 

by accepting the proper pro rata share ( in the proportion o:f dollar 

billings by each in the industry to the total dollar billings o:f this 

industry or in such other manner as the A.B.J\1.A. Committee o:f 

Industrial Recovery may deem advisable, subject to the approval o:f 

the Administrator) of the cost and responsibility of administering 

this Code; pro, ided, however, that no inequitable restriction upon 

membership in the Association shall at any time be imposed. 
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2. The Association and its members bind themselYes in every "ay 

to carry out the spirit as well as the letter of this Code. 

3. This Code is adopted in a spirit of fairness to all concerned~ 

and it is the intention of the members of the industry to accord to 

those from whom they purchase the same treatment that they expect 

to receive from those to whom they sell. 

ARTICLE IX-ADMINISTRATION 

1. To facilitate the effective administration of this Code, and 

to provide the Administrator with requisite data as to the observance 

or nonobservance thereof, the A.B.M. \.. Committee of Industrial 

Recovery is hereby de ignated as a Planning and Fair Practice 

Agency to cooperate with the Administrator in the enforcement of 

this Code. The Administrator may also appoint one or more representatives to serve with the Committee in an advisory capacity. 

Such appointees to have no vote. Such Committee shall have the 

following powers and duties, all of which shall at all times be 

subject to the approval of the Administrator: 

(a) To collect from the members of the industry the reports and 

data provided for in this Code, or in any supplement thereof, which 

may hereafter be adopted. These reports and data shall be submitted to a full-time Manager ( or his Deputy) who shall be appointed 

by the Committee. All such reports and data shall be kept confidential by such Manager ( or his Deputy) excepting insofar as may 

be neces ary for the effective enforcement of this Code, but shall 

be available to the Administrator and his representatives. 

(b) In addition to information r equired to be submitted to the 

Committee, there shall be furnished to government agencies such 

statistical information as the Administrator may deem necessary 

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

Recovery Act. 

( c) To authorize the Manager ( or his Deputy) to make such 

investigations as in its opinion may be necessary to effectuate the 

proper administration of this Code. 

( d) To make reasqnable rules and regulations designed to help 

cff ectuate the purposes of the Code. 

( e) To hear complaints and, if possible, adjust the same. 

ARTICLE X-F AIR PRACTICE 

1. In the conduct of its business, each member of the industry 

shall use a method of cost accounting which recognizes and includes 

all items entering into costs, as set forth in the Standard Accounting and Cost System adopted by The ¥achinery Builders Society, 

4th Edition, revised September 1933, such system of accounting to 

be subject to the approval of the Administrator. 

2. No member of this Industry shall sell any combination of products, except repair and replacement parts, manufactured by him, 

or by any owned or controlled subsidiary, at a price less than the 

sum of his established selling prices for all items included in such 

combination. 
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3. No member of the Industry shall make payment or allowance 

of rebates, refunds, credits, or unearned discounts, whether in the 

form of money or otherwise, or extend to certain purchasers services 

or privileges not extended to other purchasers under like terms and 

conditions. 

4. The settlement of old accounts for less than the full amount as a 

consideration for accepting a proposal is prohibited under the meaning of clause 3. 

5. No n1ember of the Industry shall make a deposit for the privilege of receiving plans and specifications and the opportunity to hid 

on a contract without an agreement by the issuer that such depo. it 

will be returned to said member of the Industry when the contract 

has been awarded or when said plans and specifications have been 

returned by said member to the issuer. 

6. The Committee will recommend to the Administrator forms of 

contract which when approved, will be standard in all respects, 

except that they will not attempt to describe the equipment quoted 

upon. They will standardize the wording of all general conditions, 

warranties, terms, and deferred payments, guarantees of performance (if any) bonus and penalty clauses (if any), etc. These forms 

of contract and no others shall be used by the industry except in 

cases where Federal, State, or Municipal laws necessitate otherwi e. 

7. No member of the industry shall make a guarantee of maintenance because of the impossibility of defining and maintaining the 

conditions under which such a guarantee can honestly be made. 

Guarantees of performance are permissible when conditions, under 

which such guarantees are to be met, are definitely stated. Guarantees of workmanship and material are quite proper. No member 

of the industry shall promise a better performance or make a higher 

guarantee than his preYious e~perience leads him to believe he can 

obtain. 

8. No member of the industry shall accept a contract containing a, 

penalty clause either for performance of the apparatus sold or for 

time of delivery, unless the contract shall also contain a clause providing a bonus to the contractor at the same rate as the rate of 

penalty, except in cases where Federal, State, or 1\funicipal la,...-s 

necessitate otherwi e. 

9. No member of the industry shall accept a contract containing 

a clause providing for liquidated damages, except in cases where 

Fe leral, State, or :Municipal laws necessitate otherwise. 

10. '\Vhere purchaser's specifications inclu le a bonu. · clause for 

performance, efficiency, etc., in excess of that auaranteed, no member 

of the industry shall deduct from the price any bonus or portion 

thereof which he anticipates will be earn d by reason of his obtaining 

a better performance or fficien ·y than that guaranteed. 

11. Where purchasers sp~ci:fications include a penalty clause for 

performance, efficiency etc., less than that guarantee l, no member 

of the industry shall make a guarantee in exec s of that "IThi<'h hu 

expects to obtain anticipating the acceptance of a penalty as a ba.:..is 

for reducing the co t to the purcha er. 

12. No member of the indu try shall circulate threats of nit for 

infringement of patents or trade marks among cu tomers of a competitor not in good faith but for the puq os of hara ing anu 

intimidating cu,'.3tomers. 
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13. No member of the industry shall disseminate false or misleading information relative to competitor's products, selling prices, 

credit standing, ability to perform work, or labor conditions among 

competitors employees. 

14. No member of the industry shall make false or misleading 

statements as to time of delivery, performance, facilities, equipment, 

or ability to perform work. 

15. No member of the industry shall attempt to induce the breach 

or abandonment of any contract between a manufacturer and his 

customer. 

16. No member of the industry shall be a party to commercial 

bribBry in any form or under any condition. 

17. No member of the industry shall enter into a written or oral 

agreement with any person that one or more clauses of the contract 

or the specification will not be enforced, thereby receiving an unfair 

advantage over com,petitors. 

18. No member of the industry shall purchase patents from customers, their officers, engineers, or employees, for the purpose of 

influencing sales to such customers. 

19. No member of this industry shall cause or permit any conduct 

by any one of his employees or agents which would constitute a 

violation of this Code. 

ARTICLE XI-1\foNoPOLIES 

No provision in this Code shall be interpreted or applied in such 

a manner as to : 

1. Promote or permit monopolies or monopolistic practices; 

2. Permit or encourage unfair competition; 

3. Eliminate, discriminate against, or oppress small enterprises. 

ARTICLE XII-RIGHTS OF PRESIDENT 

This Code is hereby made expressly subject to the right of the 

President, pursuant to Section 10 (b) of the National Industrial Recovery Act, from time to time to cancel or modify any order, ap- proval license, rule, or regulation issued under Title I of said Act, 

and specifically, but withont limitation, to the right of the President 

to cancel or modify his approval of this Code or any conditions 

imposed by him upon such approval. 

ARTICLE XIII-AMENDMENTS 

Such of the provisions of this Code as are not required to be included therein by the National Industrial Recovery Act may, with 

the approval of the President, be modified or eliminated upon the 

application of the A.B.M.A. Committee of Industrial Recovery as 

changes in circumstances or experience may indicate. It is con- templated that from time to time supplementary provisions to this 

Code or additional Codes will be submitted by the A.B.M.A. Committee of Industrial Recovery for the approval of the President to 

further effectuate the purposes and policies of Title I of the National 

Industrial Recovery Act consistent with the provisions hereof. 

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