NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR C·01\1PETITION 

FOR THE • 

LOCK AND BUILDERS HARDWARE 

MANUFACTURING INDUSTRY 

AS SUBMITTED ON AUGUST 29, 1933 

REGISTRY No. 1114-07 

The Code for the Lock and Builders Hardware Manufacturing Industry 

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

industry, and none of the provisions contained therein are 

to be regarded as having received the approval of 

1 "' A I ,.., 

the National Recovery Administration 

as applying to this industry 

WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

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

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CODE OF FAIR COMPETITION FOR THE LOCK AND 

BUILDERS' HARDWARE MANUFACTURING INDUSTRY 

To effectuate the policy of Title I of the NATIONAL INDUSTRIAL RECOVERY ACT, the following provisions are established 

as a National Industrial Recovery Code for the Lock and Builders' 

Hardware ~1anufact1,1ring Industry. 

ARTICLE I-DEFINITIONS 

The term Lock and Builders' Hardwm·e Manufacturing Industry 

as used herein is defined to mean the manufacture for sale of all 

Locks and Builders' Hardware usually classified and known as 

Finishing Hardware, Keys and Key Blanks, Padlocks, Trunk and 

Suitcase Locks, Cabinet Locks, Automobile Locks, Bank Locks, 

Combination Locks, Night Latches, Deadlocks, Door Closers, and 

such other allied products as are usually affiliated thereto. 

The term person as used herein shall include natural persons, 

corporations, partnerships, an,d associations. 

The term employer as used herein shall include every person 

promoting or actively engaged in the manufacture for sale of the 

products of the Lock and Builders' Hardware Manufacturing 

Industry as herein defined. 

The term member of the code as used herein shall mean any 

employer in the Lock and Builders' Hardware Manufacturing 

Industry who shall have subscribed to the provisions of this code. 

The term" effective date" as used herein is defined to mean the fifteenth day after this code shall have been approved by the President 

of the United States. 

ARTIOLE II-STATUTORY REQUIREMENT 

Employers of the Lock and Builders' Hardware Manufacturing 

Industry shall comply with the requirements of the National Industrial Recovery Act as follows : 

(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 employment 

approved or prescribed by the President. 

8916--33 (1) 
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ARTICLE III-WAGES AND HouRs 

1. On and after the effective date employers shall not employ any 

person under the age of sixteen years. 

2. Employers shall not operate on a Schedule of hours on and 

after the effective date for person engaged in the processing of 

products of the Lock and Builders Hardware Manufacturing Industry and the labor operations directly incident thereto in excess of 

forty hours per week excepting repair and maintenance shop crews, 

engineers, firemen, shipping, watching and outside crews and cleaners· provided, however, that time-and-one-third shall be paid for 

overtime in exce of forty hours per week to such repair and maintenance shop crew , engineer , firemen, hipping, watching and outside crews and cleaners; and also provided that this limitation of 

hours shall not apply if an emergency demand has placed an unusual 

and temporary burden for production upon an employer. 

At the end of each calendar month every employer shall report to 

the administrative agency hereinafter provided for in such detail as 

1nay be required the number of man-hour worked in that month for 

emergency reasons and the ratio which said emergency man-hours 

bears to the total man-hour of labor during the said month. 

3. Employers shall not operate on a schedule of hours for all other 

employees, except executive, administrative and upervisory employees, and tra veiling and commi ion sales people, in excess of 

forty hours per week. 

4. On and after the effective date the 1ninimum wage that shall be 

paid by any employer to any employee engaged in the processing of 

the products of the Lock and Builders' Hardware Manufacturing Industry and any labor operations directly incident thereto shall be 

thirty-five cents per hour for male employees and thirty cents per 

hour for female employee unle s the rate per hour for the arne class 

of labor on July 15, 1929, was less than thirty-five cents and thirty 

cents, respectively· in which case the rate per hour shall be not le s 

than the rate per hour paid on July 15, 1929; and provided also 

that in no event shall the rate per hour be less than thirty cents per 

hour; and proYided furth r that a ual an l incidental labor and 

learners and emplo ees di abled by old age or other causes may be 

paid not le s than 0% of uch minimum wag s; but the total amount 

paid to such ca ual and incidental labor and learners and disabled 

employee shall not exceed in an} calendar month 10% of the total 

wages paid to all proces labor by such employer. 

5. On and after the effective date the minimum wage that shall 

be paid by any employer to all other employees except commission 

sales people shall be at the rate of $1-1.00 per week; provided, however, that office boys or girls, learners, and ca ual employees may be 

paid not less than 80 o of such minimum wage; but the total amount 

paid to such office boy or girls, learner and casual employees sha:ll 

not exceed in any calendar m_onth 10% of the total amount pa1d 

by such employer to all employees covered by the provisions of this 

paragraph (5). 

6. Not later than ninety days after the effective date the Lock and 

Builders' Hardware Manufacturing Industry shall report to the 

administrator of the National Indu trial Recovery Act through the 

Board of Djrector of the Lock and Builder Hardware 1\'lanufac-
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turing Association the action taken by all employers in adjusting the 

hourly wage rates for all employees receiving more than the minimum rates provided in Paragraph 4 of this article. 

ARTICLE IV-ADMINISTRATIVE AGENCY 

1. The Lock and Builders' Hardware Manufacturers Association 

is hereby designated the agency for administering, supervising, and 

promoting the performance of the provisions of this code. 

2. Aggregations of employers having a common interest and common problems will be grouped by the said Association for administrative purposes in various sections. In each section there will be 

a supervising agency appointed or approved by the Directors of the 

Association. 

3. If complaint is made to the Lock and Builders' Hardware 

Manufacturers Association that provisions of this code have been 

violated by any employer, the proper supervisory agency shall investigate the facts, and to that end may cause such examination or 

audit to be made as may be deemed necessary. 

4. This code is intended to be a basic code, and supplemental 

codes applicable to any section of the Lock and Builders' Hardware 

Manufacturing Industry may be submitted; such supplemental 

codes, however, shall conform to and be consistent with the provisions of this basic code as now constituted or hereafter changed. 

ARTICLE V-PRICE LISTS AND DISCOUNT SHEETS 

Every employer engaged in the manufacture of locks or builders' 

hardware shall within. fifteen (15) days after the effective date of 

this code file with the Supervisory Agency herein created a net price 

list and/or a price list and discount sheet individually prepared by 

him showing his current prices and/ or prices and discounts (including all special discounts for wholesalers or for quantity, or to other 

manufacturers in the industry, or any other special discount), terms 

of payment, and freight allowances. 

The Supervisory Agency shall immediately send copies thereof 

to all other members of the section to which such prices apply. 

Such prices and terms n1ay be revised from time to time thereafter, 

and notification of such revi ion shall be filed with the Supervisory 

Agency, and copies of such revisions shall be immediately sent to 

all other members of the section, who thereupon may file, if they 

so desire, revisions of their price lists, discounts, and terms, which 

may become effective upon the date when the revised price list first 

filed shall go into effect. 

No employer shall sell directly or indirectly by any means whatever any of the products of the industry covered in 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 list and/or his price lists and discount sheets; provided, however, that at any time an employer may in good faith to meet competition meet the lower published price of any competitor of product 

of an equal grade or quality without being required to file a revi ion 

of his price list. 
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ARTICLE VI 

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

a 1nanner as to promote monopilies, permit or encourage unfair competition, eliminate or oppress small enterprises, or discriminate 

against small enterprises. 

2. The President of the United States may from time to time cancel 

or modify any order, approval, license, rule, or regulation issued 

under this code. 

3. Amendments to this code may be proposed by the Lock and 

Builders' Hardware Manufacturers Association, or by any group in 

the industry representing 25 % both in number and volume of production in the industry, and when approved by 75 % both in numbers 

and volume of production in the industry and by the President of 

the United States shall be effective as part of this code. 

Any violation of the provisions of this Article shall con titute an 

unfair method of competition within the meaning of the Federal 

Trade Commission Act and of the National Industrial Recovery Act. 

ARTICLE VII 

If any employer of labor in the Lock and Builders' Hardware 

Manufacturing Industry, as defined herein, is also an employer of 

labor in any other industry, the provisions of this code shall apply 

to and effect only that part of his business which is included in the 

Lock and Builders' Hardware J\1anufacturing Industry. 

ARTICLE VIII-UNFAIR PRACTICES 

For all purposes of the code the following describe l acts shall 

constitute unfair practice . Such unfair practic s and all other 

practices which shall be declared to be unfair practices by any amendment to the code adopted as herein provided and at the time in 

effect shall be deemed to be unfair n1ethods of competition in commerce within the meaning of the Federal Trade Commi ·ion Act 

as amen led, and the using or employing of any of them hall be 

deemed to be a violation of the code, and any member of the code 

which hall directly or indirectly through any officer, employee, 

agent, or repre entative knowingly use or employ any of uch unfair 

practices shall be guilty of a violation of the code. 

LIST OF UNFAIR PRACTICE 

A. Making or pron1ising to any purchaser or prospective purchaser of any product, or to any officer, e1nployee, agent, or representative of any purchaser or prospective purcha er, any bribe, gratuity, 

gift, or other payment or remuneration, directly or indirectly. 

B. Using or substituting any n1aterial superior in quality to that 

specified by the purchaser of any product, or using or substituting 

any material, or any method of manufacture not in accord with any 

applicable law, rule, or regulation of any governmental authority. 

C. Making or giving to any purchaser of any product any guar 4 

anty or protection in any form again t decline after the date o:f 

shipment in the market price of such product. 
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D. Making any sale or contract of sale of any product under any 

description which does not fully describe such product in terms 

customarily used in the industry. 

ARTICLE IX-PENALTIES .AND D .A MAGES 

1. Any violation of any provision of this code by any employer 

shall constitute a violation of the code by such employer and shall 

subject him to all of the penalties provided for such violation in 

the National Industrial Recovery Act and in the Federal Trade 

Commission Act, and the Lock and Builders' Hardware Manufacturers' Association is authorized to prosecute such violations before 

the Federal Trade Commission or the courts. 

2. The violation by any employer of any provision of Article V 

of the code will disrupt the normal course of fair competition in 

the industry and cause serious damage to other employers which it 

will be impossible to assess in an action for damages by any such 

other employer, and which will not be adequately compensated by 

the enforcement of the penalties in Section 1 of this Article. It is, 

therefore, hereby provided as aR express provision of this code that 

any employer who shall violate any provision in Article V hereof 

shall, in addition to the penalties provided in Section 1 of this 

Article, be liable for an additional penalty of 25% of the net-invoice 

price of any products sold by said employer in violation of said 

article. The Secretary of the Lock and Builders' Hardware Manufacturers' Association, as an individual and not as Secretary of the 

Association, is authorized to maintain a suit in any court of competent jurisdiction for the enforcement of this penalty, and may 

obtain a judgment against said employer for the penalty hereby 

provided. All amounts paid to or collected by the Secretary under 

this section shall be held and disposed of by him as part of the 

funds collected by the Association ; and each member of that section 

of the Association as to which said violation shall have occurred, 

and who shall not have been guilty of the unfair practice in respect 

of which any such amount shall have been paid or collected, shall be 

credited with its pro rata share of such amount on account of any 

and all dues or assessments (other than damages for violation of any 

provision of the code) due or to become due from such member, such 

pro rata share to be computed on the same basis as dues are payable 

by such member toward the expenses of administering the Association. Any rights of any person who shall at any time be the Secretary of the Association in respect of any amounts which shall be 

payable to him because of the violation by any employer of Article V 

of the code shall pass to and become vested in his successor in office 

upon the appointment of such successor. 

The Board of Directors of the Lock and Builders' Hardware 

Manufacturers Association may by the affirmative vote of two thirds 

of their number waive the liability for additional penalties imposed 

by this section of Article IX of the code if they shall determine that 

such violation has been innocently made, and that the collection of 

such addi6onal penalties will not to any material extent tend to 

effectuate the policy of Title I of the National Industrial Recovery 

Act. 
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ARTICLE X - RELATIONS BETWEEN EMPLOYER AND EMPLOYEE 

It is clearly understood that Article II hereof does not impair in 

any particular the constitutional rights of employee and employer 

to bargain individually or collectively as may be mutually satisfac- tory to them, without interference, restraint, or coercion of any sort. 

Nothing in this code is to prevent the selection, retention, and 

advancement of employees on the basis of their individual merit, 

without regard to their affiliation or nonaffiliation with any labor 

organization. 

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