Registry No. 1129-1-06 

NATIONAL RECOVERY ADMINISTRATION 

PROPOSED CODE OF FAIR COMPETITION 

FOR THE 

DOMESTIC WATER HEATER 

INDUSTRY 

AS SUBMITTED ON AUGUST 31, 1933 

WI DO OUR PART 

The Code for the Domestic Water Heater Industry 

in its present form merely reflects the proposal of the above-mentioned 

industry, and none of the provisions contained therein are 

to l,e regarded as having received the approval of 

the National Recovery Administration 

as applying to this industry 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1933 

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

v' 
SUBMITTED BY 

DOMESTIC WATER HEATER l\lANUFACTURERS' ASSOCIATION 

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PROPOSED CODE OF FAIR COMPETITION FOR THE 

DOMESTIC WATER HEATER INDUSTRY 

ARTICLE I-PURPOSE 

The purpose of this Code is to definitely outline the rules of trade 

practice for the Domestic Water Heater Industry for full compliance with the Industrial Recovery Act and realization of its objects. 

This Code is designed to improve the conditions of labor by reduction of hours and establishment of minimum wage levels which shall 

maintain the highest practicable standard of living; to restore income to this industry which shall assure its profitable continuance 

and progress in the public interest; to provide as fully as possible 

for self-government of this industry in the interests of its wage 

earners, its owners and the general public, with revisions of wages 

and hours of labor as needed to reflect currently the adjustment to 

variations in the cost of living. 

ARTICLE II-PARTICIPATION 

Participation in this Code, and any subsequent revision of or addition to the Code, shall be extended to any person, partnership, or 

corporation manufacturing Domestic Water Heaters who accepts 

his share of the cost and responsibility, as well as the benefit, of such 

participation by becoming a member of the Domestic Water Heater 

Manufacturers' Association. No initiation or entrance fees shall be 

charged, but there shall be dues assessed equitably and prorated 

among the members upon the basis of their volume of business, to 

produce an amount sufficient to finance the activities of the association in administering the Industrial Recovery Act and all duties 

incident thereto. 

ARTICLE III-DrvrsroNs OF THE INDUSTRY 

A.. Powers.-For the purpose of the administration of this code 

the Domestic Water Heater Industry shall be divided into three general divisions, namely: Tank Water Heaters, Automatic Water 

Heaters, and Indirect Water Heaters. These may be subdivided to 

represent different types of heaters within each general division. 

Each division and each subdivision shall designate or establish its 

own administrative agency or agencies. Each such division and 

subdivision shall be independent and self-governing in respect of 

all conditions and problems relating exclusively to the said group. 

Proposals in respect of matters affecting more than one division may 

be initiated by any division, and shall be submitted for consideration 

to the Emergency National Committee of the Domestic Water 

Heater Industry, hereinafter described, and its determination shall 

9925- 33 (1) 
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be binding upon said division and all other divisions affected thereby. 

B. Exec:utive Oommiittee.-Each of the above divisions, and any 

others which may subsequently be formed within this industry, shall 

set up an Executive Committee for the purpose of administering 

the provisions of the Code, to secure adherence thereto, to hear and 

adjust complaints, to consider proposals for amendments thereof 

and exceptions thereto, and otherwise to carry out within the division 

the purposes of the National Industrial Recovery Act as set forth 

in this Code. 

If a division or subdivision does not concur in the submittal of 

this Code; or if, at any time thereafter, a division fails to perform 

its obligations as provided hereunder, the Emergency National 

Committee of the industry, hereinafter described, is hereby empowered to adopt a Code for the dissenting or evading division and may 

provide for the administration of such Code with full authority. 

ARTICLE IV-DIVISION REGULATIONS 

A. Labor Oode.-Each division of the industry, and any others 

which may subsequently be formed, shall promptly undertake the 

formulation of a labor coae. 

The labor code established by the said division shall, upon approval of the Emergency National Committee of the Domestic 

Water Heater Industry, be binding upon all producers in such division. . _The labor code of each di vision shall contain the following 

prov1s10ns: 

(a) Employees in this industry 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-organizations or in other concerted activities for the purpose of collective bargaining or other mutual aid or 

protection. 

(b) No employee in this industry, and no one seeking employment 

therein, shall be required as a condition of employment to join any 

company union or to refrain from joining a labor organization of 

his own choosing. 

( c) Employers of labor in this industry agTee to comply with the 

maximum hours of labor, minimum rates of pay, and other working 

conditions approved or prescribed by the President. 

( d) No individual in the domestic water heater industry will 

be employed in excess of forty hours in any one week except as 

exempt in the Act. 

( e) The minimum rate of pay for labor in the domestic water 

heater industry shall be 40c per hour. 

(f) No person under 16 years of age may be employed in the 

industry. 

ARTICLE V-EMERGENCY NATION AL COMMITTEE 

A. Representation.-There shall be an Emergency National Committee of the Domestic Water Heater Industry to consist of a representative, or representatives, of each division, selected by the said 
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division, representatives of the industry at large to be selected by 

divisional members, and representatives of any subdivisions which 

may be entitled to representation. 

B. Pow,ers.-This Emergency National Committee shall be the 

general planning and coordinating agency for the industry. Its 

members selected by established di visions shall be empowered by 

the said divisions to act for them conclusively in respect to all matters before the committee for consideration and within its jurisdiction. The committee shall have powers and duties as provided 

herein, and in addition thereto it shall 

(a) from time to time require such reports from divisions as in 

its judgment may be necessary to advise it adequately of the administration and _enforcement of the provisions of this Code; 

(b) upon complaint of interested parties 1 or upon its own initiative, make such inquiry and investigation into the operation of the 

Code as may be necessary; and 

( c) makes rules and regulations necessary for the a.dministrati on 

and enforcement of this code. The Committee may delegate any of 

its authority to the National Administrator of the industry hereinafter provided. 

AR'I'ICLE VI-INDUSTRY REGULATIONS 

A. Marketing Oodes.-The Emergency National Committee may 

establish a Marketing Code with provisions with respect to : 

(a) group selling; 

(b) classification of outlets or purchasers and recognition of 

standard and economically justifiable price differentials among 

them; 

( c) adoption of uniform grading of products; 

( d) simplification and standardization of products; 

( e) cooperative advertising for the industry; 

( f) collection and interchange of credit information; 

(g) cooperative administration of insolvent debtors; 

(h) and / or other aspects of marketing. 

B. R equlation of Trade Praetice.-(a) To accomplish the purpose 

contemplated by this Act, all members of the associations and all 

subscribers to this code agree that it shall be an unfair method 

of competition to sell below a reasonable cost arrived at by formula 

established by the association. 

(b) It shall be a violation of this code for any manufacturer or 

assembler of domestic wa.ter heaters to give rebates, refunds, special 

allowances, unearned discounts, or special services of any kind, directly or indirectly, in connection with the sale of their products. 

( c) Every subscriber to this code shall publish a sheet or sheets 

quoting prices and terms of sale on all of his saleable products, and 

it shall be an unfair method of competition to discriminate in their 

application between different purchasers of the same kind and class 

of product. 

ARTIOLE VII-STATISTICS 

II?, order to pr~vide data necessary for the administration of the 

N at10nal Industrial Recovery Act, the members of the Domestic 

Water Heater Industry shall furnish, and the Emergency National 
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Committee shall gather, statistical information from all the members of the industry. 

ARTICLE VIII-NATIONAL ADMINISTRATOR OF THE INDUSTRY 

The Emergency National Committee of the Domestic Water Heater 

Industry shall appoint from its own membership a National Administrator of the industry who shall exercise such authority as 

may have been delegated to him by the said Emergency National 

Committee. 

All communications and conferences of this industry with the 

President or with his agents concerning the approval or amendment 

of this Code or of any of its provisions, or any matters relating 

thereto, shall be through the said National Administrator of the industry. The National Administrator of the industry shall serve as 

an executive agent for the En1ergency National Committee of this 

industry, and shall be charged with the enforcement of the provisions of this Code and with the duties, through agents or otherwise, of hearing and adjusting complaints, considering proposals for 

amendments and making recommendations thereon, approving recommendations for exceptions to the provisions of this Code, and otherwise administering its provisions. Any division or any adherent 

to the provisions of this Code or subject to its terms shall have 

the right of appeal to the Emergency National Committee from 

decisions of the National Administrator of the industry, and the 

decision of the said Emergency National Committee on said appeal 

shall be final. 

The function of this Administrator shall be the general planning 

and coordinating for the Domestic Water Heater Industry. 

ARTIOLE IX-GENERAL 

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

a manner as to : 

a. Promote monopolies, 

b. Permit or encourage unfair competition, 

c. Eliminate or discriminate against small enterprises. 

2. Every manufacturer of Domestic Water Heaters, whether or 

not he is a member of this trade association or otherwise a subscriber 

to this code, shall be subject to its regulations as finally approved 

by federal authority. 

3. This Code or any of its provisions may be cancelled or modified 

and any approved rule issued thereunder shall be ineffective to the 

extent necessary to conform to any action by the President under 

section 9 (b) of the National Industrial Recovery Act. 

4. Amendment of this Code may be proposed by any Established 

Division or Subdivision to the Emergency National Committee or 

may be initiated by it, and when approved by the President shall 

be effective. 

5. Violation by any producer of Domestic Water Heaters of any 

provisions of this Code, or of any approved rule thereunder, is 

an unfair meti1od of competition. 
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6. In order to avoid undue delay in m.aking effective throughout 

the industry this Code of Fair Competition, the following provisions 

are adopted, and _other provisions of the Code in conflict therewith, 

are suspended until such time as the Emergency National Committee 

shall determine that the purposes of the Article have been accom.-

plished: 

a. Each Established Division or Subdivision shall submit as 

promptly as possible to the Emergency National Committee, a complete Division code in conformity with the general provisions of 

this Code. Such Divisional Code, if found substantially to promote 

the purposes of the National Code, shall be accepted provisionally 

by the Emergency National Committee and its immediate enforcement authorized. The Emergency National Committee shall thereupon proceed as rapidly as practicable to make such adjustments 

of and coordination between the provisions in respect to hours, wages, 

production, and costs of several divisional codes as may be necessary 

to bring them into conformity with the provisions of the National 

Code by: 

( 1) Consultation and negotiation between the Di visions affected. 

(2) By its own findings after full consideration of all factors 

involved. 

b. If any Division fails to submit within a reasonable time code 

provisions as provided in subsection (a) of this Article, and if in the 

judgment of the Emergency National Committee such failure is 

unduly delaying the effective operation of this Code, the said Committee is authorized to act as a Divisional agency for said Division 

and to submit on its behalf the necessary code provisions which 

upon approval by the President shall be effective until the said 

Division shall have submitted satisfactory code provisions. 

7. This Code shall be in effect beginning ten days after its approval 

by the President. 

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UNIVERSITY OF FLORIDA 

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