Approved Code No. 11-Amendrnent No.1 Registry No. 1116-02 

NATIONAL RECOVERY ADMINISTRATION 

A.MENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

IRON AND STEEL INDUSTRY 

AS APPROVED ON MAY 30, 1934 

BY 

PRESIDENT ROOSEVELT 

WE DO OUR PART 

UNITED STATES 

GOVER. ME T PRINTING OFFICE 

WASHll\GTON: 1934 

I 

J J I 

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Approved Code No. 11-Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

IRON AND STEEL INDUSTRY 

As Approved on May 30, 1934 

BY 

PRESIDENT ROOSEVELT 

EXECUTIVE ORDER 

REVISED CoDE oF F AIR CoMPETITION OF THE IRoN AND STEEL 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 J une 16, 1933, for my approval of certain 

amendments to the Code of Fair Competition of the Iron and Steel 

I ndustry u.s approYed on August 19, 1933, a copy of whi~h amend- ments are hereto attached as Exhibit A, and the Administrator, hav- ing rendered his report showing that said amendments have been 

proposed, adopted and submitted for my approva~ pursuant to the 

provi ions of Section 1 of Article X II of said vade and having 

recommended that aid application be granted; 

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

Unjted States, pursuant to the authority vested in ue by Title I of 

aid Act, and otherwi e do adopt and approve the report, recommendations and findings of the Admini trator and do hereby order 

that aid amendments to said Code be, and they hereby are, approvod 

and that said Code as amended by said amendment , a copy of which 

is hereto attached as Exhibit B, be and it herrb:v i approved, aid 

reYi ·eel ode incorporating ujd amendments to become effective on 

June 11 1934, prior to whi ·h effe tiYe date the Cod of Fair Competition approved August 19, 1933, shall continue in full force and 

effect. 

In connection with the foregoing approYal I desire to make two 

statement : 

1. ndition of ec nomic emergency male n ce sary the retention 

in modifiecl form of th multipl ba jng point . . m adopt d in the 

rjn-inal ·ocl and fl' ctiYe in the in 1u try f r many y ar . But reYi ·ion. mad in thi clc increa ing ·ub tantially the number of 

ba inn- point and m lifi ations in 1ra tice und r the ode while 

all iating ·ome f the in quities in the exi iing y tern, illu trate the 

64647"----657-12----34----1 (1) 
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desirability of working toward the end of having prices quoted on 

the basi of ar a of production and the eventual establishment of 

basing points coincident with all such areas, as well as the elimination of artificial transportation charges in price quotations. Therefore, I have directed the Federal Trade Commission and the National 

Recovery Administration to study further and jointly the operation 

of the basing point system and its effect on prices to consumers, and 

any effects of the existing system in either permitting or encouraging price fixing, or providing unfair competitive advantages for 

producers, or disadvantages for consumers not based on actual causes. 

I have requested that the results of this study be reported to me 

within six months, together with any recommendations for revisions 

of the Code, in accordance with the conclusions reached. 

2. In order to insure the free exercise of the rights of employees 

under the provisions of Section 7 of this Act and of Article IV of 

this Code, I will undertake promptly to provide, as the occasion may 

demand, for the election by employees in each industrial unit of 

representatives of their own choosing for the purpose of collective 

bargaining and other mutual aid and protection, under the supervision of an appropriate governmental agency and in accordance 

with suitable rules and regulations. 

FRANKLIN D. ROOSEVELT. 

Approval recommended: 

HUGH s. J OHNSON' 

A dmirnistrator. 

THE WHITE HousE, 

May 30, 1934. 
LETTER OF TRANS~1ITTAL 

The PRE IDENT, 

The White House. 

Sm: The revisions of the Steel Code which have been agreed to 

by the Code Authority include (1) revisions resulting from the 

insistence of representations of N.R.A. that changes should be made 

to meet justifiable complaints and criticisms of the Code; and (2) 

revisions proposed by the Code Authority to improve the workability 

of the Code and the fair application of its requirements. 

\Ve will summarize the more important changes: 

PRICE PHOVISIONS 

1. The previous power of the Code Authority to set aside an 

"unfair" price filing and to fix a "fair base price" is annulled by 

striking out Section 5 of Schedule E of the Code approved August 

19, 1933. There is no minimrnn price or "cost recovery" provision 

now left in the Code. 

2. The basing point system has been revised (Schedule F) by 

adding new basing points to take care of outstanding complaints 

(such as Worcester, Mass., Duluth, Minn., Corpus Christi, Tex., 

Stockton, Cal.). Criticisms of basing point prices are also met in 

part by providing for modification of transportation charges and 

price filing requirements, as hereafrer shown. 

3. All-rail transportation charges, which are included in delivered 

prices quoted under the Code, may be reduced when delivery is by 

other means (such as water or motor transportation) at rates approved by the Code Authority as "equitable and necessary in order 

that competitive opportunity to producers and con. umers shall be 

maintained "-(Schedule E, Sec. 4), subject to review of such action 

by the Administrator. (Art. XI, Sec. 6.) By a further revision of 

the Code sales below a published base price or deliv ered price may 

be authorized by the Code Authority-also subject to review by the 

Administrator. Under these revised provisions various complaints 

of producer and consumers are already in process of adjustment. 

4. The price filing provision has been revised to permit any producer to meet a lower price quoted by a competitor without waiting 

ten days (Schedule E, Section 2). Under the Code also any producer an quote as his price the lowest base price filed by any 

competitor at a basing point where he himself does not file. (Schedule E, Sec. 3.) 

LABOR PROVISIONS 

1. The 8 hour day is now established unconditionally for the 

entire indu try by an amendment of Art. IV. The average 40 hour 

week and maximum 6 day we k i retained. 

(3) 
4 

2. Pieceworkers are guaranteed the minimum rates of pay for 

hourly workers by an amendment of Art. IV, Sec. 5. 

3. vVage District have been added to provide minimum wages 

for areas of employment not previously included. 

ADMINISTRATION 

The Administrator is empowered (by a new provision) to suspend 

and disapprove any action by the Code Authority which constitutes 

jn his opinion a modification of the Code or exemption of anyone 

from its provisions. (Art. XI, Sec. 6.) 

UNFAIR PRACTICES 

Three new definitions of unfair practice are added to Schedule H . 

1. Orders cannot be sought by promising to file new prices subsequently-thereby engaging in secret price-cutting. (Clause M:.) 

2. Products not properly classified as "scrap " cannot be sold as 

"scrap." (ClauseN.) 

3. The use of coercion or coercive means to induce a producer to 

withdraw or to change his -base price, is forbidden. (Clause 0.) 

CONTRACTUAL FREEDOM 

1. A new provision in Schedule E, Sec. 8 permits making a contract 

calling for delivery beyond the end of the next calendar quarter year 

if products are required for an identified structure, railroad cars and 

locomotive , or a definite project of federal, state, county or municipal government. (The limitation against long term contracts. is 

written to prevent speculation and the exception is made in public 

and private contracts which cannot be used for speculative buying.) 

2. Under an amendment of Schedule E, Sec. 3, prices fixed in 

contracts to be fulfilled in the next succeeding quarter may be reduced 

if lower prices are sub equently filed-thus allowing producers to 

give their contractual customers the benefit of general declining 

prices or lower prices made by competitors. 

SMALL ENTERPRISE REPRESENTATION 

A revision of Article VI, Section 5 reduces the expense o:f the 

code for small producers by apportioning the total expense according to the invoiced value of delivered products during the preceding 

calendar year. Each member of the Code retains at least one vote 

regardless of the invoiced value of his products, but the code expense 

of small producers may be materially reduced. 

TERl\HNATION CLAUSE 

The termination clau e (Article XII, Section 2) is revised to 

provided simply that the Code may be terminated at any time by 

action of the President, or by a vote of seventy-five percent of the 

members of the Code. 
5 

RESULTS OF THE EXPERIM.ENT L PERIOD 

The Code was originally approved for a trial period of 90 days. 

Upon the reports made to the President at the end of that period 

and the recommendation of the Admini trator, the trial period was 

extended by the Pre ident to May 31, 1934, thus giving a total trial 

period to date of a little over nine months. 

During this trial period the volume of complaints from producers 

in the industry, or users of its products has been very small when 

consideration is given to the magnitude of the industry. So far as 

members of the Code are concerned its operation and administration have given general satisfaction. Many complaints from users 

of code products have been adjusted by action of the Code Authority, exercising its discretionary powers under the Code. Provision 

is made in the revised Code for the adjustment of outstanding complaints, either in the revisions, or in action authorized under the 

Code. There have been a certain number of complaints which have 

not been adjusted and some which may be difficult of adjustment. 

But the major criticisms of the Code are not those of specific injury 

of individuals or individual enterprises, but largely theoretica.l criticisms of the price provisions of the Code, on the ground that they 

might operate in aid of monopolistic practices. 

The economic issues involved in these criticisms are fundamental 

and far reaching. It is doubtful whether any well integrated industry can operate to protect the stability of its operations and to maintain, without violent fluctuation, employment and wage standards 

without being subjected to the criticism that any such effective selfgovernment might bring about what might be wrongly called monopolistic practices. For example~ the multiple basing point system is 

designed to maintain existing areas of production and channels of 

distribution and to prevent violent dislocations proceeding from such 

unrestrained competition as has resulted in the past all too frequently 

in increasing concentration of business in the hands of large producers, with violent fluctuations in prices and wages in a ruthle s 

struggle to survive. 

This industry is highly competitive and it is a fact that in recent 

years the smaller enterprises in the industry have steadily increased 

their proportionate production at the expense of the larger enterprises. This is not a monopoli tic trend. On the other hand, conumers may claim that the integration of the industry an l methods 

of fair competition adopted do not provide for the con umers the 

transient benefits of unrestrained cut throat competition. Representatives of the N.R.A. believe that it would be in t.he public interest 

to provide for the joint study of the operation of the basing point 

y t m by representati es of the N.R.A. and the Federal Tra le om- mis ion, in conjunction with representatives of the indu ·try, for the 

purpo e of d termining to what extent and in what m~nner the practice of the indu try, particularly in rerrard to the multiple basing 

point y tem may be impro ed so a to pre er e, for the benefit of 

all cone rned, the tabilizing effect of the exi ting ystem and at the 

same time to insure full opportunity, through fair competition, to 

pa on to con. urn rs the benefits of increa ing produ tive efficiency 

while continuing to improve labor and providing greater stability of 

employment. 
6 

The labor provisions of the Code have operated to produce great 

benefits for the wage earners, but have also given rise to conflicts concerning the right of labor organization and collective bargaining, 

which call imperatively for better assurances than are now provided, 

that employees may exercise the rights provided in Section 7 (a) 

of the National Industrial Recovery Act. 

The rights of labor organization are clearly defined in the Act and 

in the Code, but the most serious complaints which have been received during the trial period have been the complaints that exercises 

of these rights has been restrained in violation of the law. It cannot 

be suggested, however, that labor would benefit in the present situation by a cancellation of the Code. Indeed the complaint is not 

agair:s~ the provisions of the Code, but against disregard for these 

prOVISIOnS. 

LABOR BENEFITS UNDER THE CODE 

The benefits derived by labor from this Code may be sumrn.arized 

in the following comparison of employment and earnings in June, 

1933 and April, 1934 : 

• 

June 1933 April 1934 Change for April 1934 as compared 

with June 1933 

Grand total all employees: Total number employees ___________ 338,146 431,086 Increase 92,940, or 27.4%. 

Total wages and salaries __________ __ $30,560,761 $45,471, 878 Increase $14,911,117, or 48.7%. 

Average hours per week _________ __ _ 39. 7 34.4 Decrease 5. 3 hours, or 13.4%. 

Average earnings per hour __________ 53.0¢ 71. 4¢ Increase 18.4¢, or 34.7%. 

Total hours worked _________________ 57,555,359 63,690,525 Increase 10.6%. 

Wage earners (employees receiving 

hourly, tonnage, or piecework rates): Number of wage enrners _____ _______ 305,329 392,069 Increase 86,830, or 28.4%. 'I'otal wages _______________ __________ $24,441,054 $36,778,026 Increase $12,336,972, or 50.4%. 

Average hours per week ___ __________ 39.4 33. 7 Decrease 5. 7 hours, or 14.5%. 

Average earnings per hour __________ 47.3¢ 64.8¢ Increase 17 .5¢, or 37%. Average earnings per week __________ $18.64 $21. 84 Increase $3.20, or 17%. 

Total hours worked _______ __________ 51,645,321 56,723,813 Increase 9.8%. 

By Comparing the foregoing figures with the year 1929 it appears 

that, in April 1934, although the industry was then operating at 

less than 75% of its 1929 operations, it was employing nearly as 

many employees as the average for the year 1929. 

CONSUMERS INTERESTS UNDER THE CODE 

A corpparison of the first six months of 1933 with the last six 

months of 1933 shows that total income of 190 companies increased 

by approximately $54,000,000 while the total payroll increase was 

approximately $108,000,000. The consumers therefore bore only 

one-half on the burden of payroll increases. 

SMALL ENTERPRISES UNDER THE CODE 

Reports for 1933 show that 57 companies producing steel ingots 

(the large, integrated companies) increased payrolls $100,000,000; 

increased income only $44,000,000; and showed a net loss of nearly 

$65,000,000; while 133 smaller, non-integrated companies increased 

payrolls $8,000,000,000; increased income $10,000,000 and showed a 
7 

n t profit of over $5poo,ooo. The larger companies in the aggregate 

lost %, of 1% on their reported investment and the smaller companies earned over 1%,% on their investment. 

It is evident in the light of these figures that consumers were not 

being exploited and that small enterprises were not being oppressed 

under the Code. It is al o clear be ond question that employment 

and wage payments have increased remarkably under the Code, and 

the tandard of living of the average worker has been sub tantially 

improved. 

CONCLUSION 

It is our recomn1endation that a continuance of the Code, as 

revised in accordance with the amendments approved by the NRA 

and agreed to by the Code Authority, is desirable, with the distinct 

understanding that we believe the Code can be and should be subject to further revision and that the members of the industry should 

cooperate with the representatives of the government in bringin~ 

about full and unquestioned compliance with the requirements or 

the law and the Code which protect the rights of employees in selforganization and collective bargaining. 

• 

M AY 29, 1934. 

64647°----657-12----34----2 

HucH S. JoHNSoN, 

Adrninistrator. 

K. M. SIMPSON' 

DoNALD R. RrcHBERG, 
CODE OF FAIR COMPETITION OF THE IRON AND STEEL 

INDUSTRY 

ARTICLE I-DEFINITIONS 

Wberever used in this Code or in any schedule appertaining hereto 

the terms hereinafter in this Article and in Schedule E annexed 

hereto defined shall, unless the context shall otherwise clearly indicate, have the respective meanings hereinafter in this Article and 

in such Schedule E set forth. The definition of any such term in 

the singular shall apply to the use of such term in the plural and 

vice versa. SECTION 1. The term "the United States:' mea.ns and includes all 

of the territory of the United States of America on the North American continent. 

SECTION 2. The term " the President " means the President of the 

United States of America. 

SEcTION 3. The term " products " means the iron or steel products 

which are generally named in Schedule F annexed hereto as at the 

time in effect and standard Tee rails of more than 60 pounds per 

yard and angle bars and rail joints therefor, or any of such products. 

SECTION 4. The term" the Industry" means and includes the business of producing in the United States and selling products, or any 

of them. 

SECTION 5. The term "member of the Industry" means and includes any person, firm, association or corporation operating a plant 

or plants in the United States for the production of prodttcts, or 

any of them. 

SECTION 6. The term " the Code " means and includes this Code 

and all schedules annexed hereto as originally approve(l by the 

President and all amendments hereof and thereof made as hereinafter in Article XII provided. 

SECTION 7. The term " member of the Code " means any merr1ber 

of the Industry who shall have become a member of the Code as 

hereinafter in Section 3 of Article III Rrovided. 

SECTION 8. The term " the Institute ' means American Iron and 

St.eel Institute, a New York membership corporation. 

SECTION 9. The term "the Board of Directors" means the Board 

of Directors (as from time to time constituted) of the InstJtute. 

SECTION 10. The term "the Secretary" means the secretary of 

the Institute at the time in office. 

SECTION 11. The term "the Treasurer" means the treasurer of 

the Institute at the time in office. 

SECTION 12. The term " unfair practice " means and includes any 

act described as an unfair practice in Schedule I-I annexed hereto. , 

SECTION 13. Wherever used in the Code with reference to· the 

Industry or any member of the Industry or any member of the 

Code, unless the context shall otherwise clearly indicate, 

(8) 
9 

(a) the t rm "plant" means only a plant for the production of 

one or m re produ ts in the Industry; 

(b) the t rm ' prices" includes only prices for products produced 

in the Indu try; 

( o) the term " wage " includes only wages for labor performed 

in the Industry ; 

(d) the term ' labor " means only labor performed in the Industry; 

(e) the term "hours of labor " or " hours of work " includes only 

hours of labor or hours of work in the Industry; and 

(f) the term employee" mean only an employee in the Industry. 

SECTION 14. The term ' the National Industrial Recovery Act" 

means the National Industrial Recovery Act as approved by the 

President June 16, 1933. 

SECTIO.t 15. The term "the effective date of the Code" means 

the date on which the Code shall have been approved by the President pursuant to the National Industrial Recovery Act. 

SE TIO~ 16. The term ' the Administrator" means the Administrator appointed by the President under the National Indu trial 

Recovery Act and at the time in office. 

SECTION 17. The term ' the Administration" means the agency 

establi heel pursuant to the provisions of Section 2 of the National 

Industrial Recovery Act. 

ARTICLE II-PURPOSE oF THE CoDE 

SECTION 1. The Code is adopted pursuant to Title I of the N a· 

tional Industrial R ecovery Act. 

SEcTIO~ 2. The purpose of the Code is to effectuate the policy of 

Title I of the National Industrial Recovery Act in so far as it i~ 

applicable to the Industry. 

AHTICLE III-1\lE:i.\IBER HIP IN THE CoDE 

SECTION 1. It i of the e sence of the Code that all members of 

the Industry which hall comply with the provisions of the Code 

shall be entitled to participate in its benefits upon the ~rn s and 

condition et forth in the Code. 

E TION 2. Any m n ber of the Indu try i eligible for m mborhi p in the C d . 

ECTION 3. Any m mber of the Indu try desiring to become a member of the ode may do so by igning and delivering to the ecretary 

a 1 tt r sub tantially in the form et forth in ch dule A annexed 

her eto. 

E TION 4. The rules and r gulations in re p ct of m etino- of 

memb r of the ode are set forth in chedule B annexed hereto. 

ARTI LE IV-HoUR oF L ABOR, R TEs OF PAY A.~:~D OTHER C .. ~muoNs 

OF EMPBOYME ~T 

SE TION 1. Pur uant to subsection (a) of Secti n 7 of the N ationa! Industrial Recovery Act and so long as the Code shall be in 

effect, the Code shall be subject to the following conditions: 
10 

(1) That employees shall have the right to organize and bargain 

collectively through r presentatives of their own choosing, and shall 

be free from the interference, restraint, or coercion of employers 

of labor, or their a ents, in the lesignation 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 Presi lent. 

SECTION 2. Since the beginning of the present depression and the 

consequent reduction in the total number of hours of work available 

in the Industry, its members have made every effort to distribute, 

and with a remarkable degree of success have distributed, the hours 

of work a' ailable in their plants so as to give employment to the 

maximum number of employees. It is the intention of the Industry 

to continue that policy in so far as practicable, to the end that the 

policy of Title I of the National Industrial Recovery Act may be 

effectuated, and that work in the Industry shall in so far as practicable be distributed so as to provide employment for the employees 

normally attached to the Industry. The basic processes in the Industry are of a continuous character and they cannot be changed 

in this respect without serious adverse effect upon production and 

employment. As demand for the products of the Indu try and, 

therefore, for labor shall increase, hours of labor for employees in 

the Industry must neces arily increase; but, except in the case of 

executives, those employed in supervisory capacities and in technical 

work and their respective staffs a.nd those employed in emergency 

work, in so far as practicable and so long as employees qualified 

for the work required shall be available in the respective localities where such work shall be required and having due regard for 

the varying demands of the consuming and processing industrie · for the respective products, none of the members of the Code shall 

cause or permit any employee to "ork at an average of more than 40 

hours per week in any six months period or to work more than 

48 hours or more than 6 days in any one week or more than 8 hours 

in any one day. For the purposes of this Section 2 the first six 

months period for each employee in the employ of any member of 

the Code at the effective date thereof shall begin with that date, 

and the first six months period for any employee thereafter employed 

by any member of the Code shall begin with the date of employment of such employee by such member. After the date of the 

employment by any member of the Code of any employee such 

member shall not knowingly permit such employee who also shall 

have performed work for one or more other employers to work for 

such member such number of hours as would result in a violation of 

the Code had all such work been perform d for such member. SECTION 3. None of the members of the Code shall employ in or 

about its plants in the Industry any person under 16 years of age. 
11 

SEcrroN 4. Throughout the hi tory of the Indu. try geographical 

wag cliff r ntial have exist d due in th main to cliff r nces in 

livin<Y o t and general e nomic conditions and the ability adBquat~ly to man the industri s in the r pe ti e locali i . The e tabli hm nt in the Industry in the different localities ha\ e been developed und r such differences in wages and, after a survey of th~ 

matters bearing on uch differences in the arious sections of the 

United tate for the purpo es of this Article IV the wage di tricts 

de cribed in ch dul C annexed hereto have bn n establi hed. 

E TION 5. Until changed by amendment of the Code as hereinafter in Article XII provided, the minimum rates of pay per hour 

which shall be paid by members of the ode for common labor (not 

including that of apprentices and learners) in the Industry in the 

respective wage eli ricts described in uch Schedule C shall be the 

rate set forth in Schedule D annexed hereto. None of the members of the Code shall pay common laborers (not including apprentices and learner ) in its employ in the Industry in any such district 

any rate of pay less than the rate specified for such district in such 

Schedule D, and any violation of this provision of the Code shall 

be deemed an unfair practice. Such rates of pay shall not, however, 

be understood to be the maximum rates of pay for their respective 

districts, but, until changed as aforesaid, none of the members of 

the ode shall be required to pay its common laborers in the Industry in any of such districts a rate of pay higher than the rate specified for such district in such Schedule D, except as such member 

shall ha e agreed to pay such higher rate in any agreement heretofore or hereafter made by such member with its employees. Until 

this provision shall have been changed by amendment as aforesaid, 

each member of the Code will pay to each of its employees in the 

Indu try who on July 14, 1933, was receiving pay at a rate of pay 

per hour in excess of the rate of pay per hour then being paid by 

such member for common labor a rate of pay per hour which shall 

be at lea t 15% greater than that which such employee was then 

receiving; provided however that the foregoing provision shall not 

be so construed as to require any member of the Code to make any 

increase in the rate of pay per hour to be paid by such member to 

any of its mpl yees in any wage district that will result in a rate 

of pay per hour which hall be higher than the rate of pay per 

hour pai to employees doino- substantially the arne clas or kind 

of labor in the arne wao-e di trict by any other m mber of the Code 

which hall have increa ed its rat s of pay per hour in ace rdance 

with such provi ion. In the ca e of employees (n t including a:ppr n ices and l arner ) performing work for which they are pa1d 

per piece of work performed the minimum rate of ay hich each 

m mber of the de . hall pay for such w rk hall be sufficient to 

produc the minimum rate of pay per hour provided in the Code 

for mmon labor at uch plant. 

RTI LE V-Pn D TION AND NEw CAPACITY 

E TION 1. It is the con nsus of opinion in the Indu try that it 

is n~t n ce ary ~n ord r to ffectuate the poli y f Title I f the • T atwnal In lu nal _ov ry A t to. mak n ·p cifi roYi ion 

1n the od for controlling or regulatmg the Yolwne of production 
12 

in the Industry or for allocating production or sales among its members. It is believed that the elimination of unfair practices in 

the Industry will automatically eliminate any overproduction therein 

and any alleged inequities in the distribution of production and sales 

among its members. Adequate provision shall be made under the 

Code for the collection of statistics regarding production and o:f 

other data from which it may be detennined from time to time 

whether overproduction in the Industry exists _and whether in the 

circumstances any restrictjon of production is necessary in order to 

effectuate the policy of uch Title I. The Board of D1rectors shall 

furnish to the Administrator summaries or compilations of such sta- tistics and other data in reasonable detail. Should it at any time in 

the circumstances as they shall then exist appear to the Board of Di- rectors that the policy of such Title I will not be effectuated in the 

Industry because of the fact that through the Code production therein is not controlled and regulated, then the Board of Directors is 

hereby empowered, subject to the approval of the President after 

such conference with or hearing of interested persons as he may prescribe, to make, modify or rescind such rules and regulations for the 

purpose of controlling and regulating production in the Industry, including the fixing of such liquidated damages for violations of such 

rules and regulations, as such Board shall deem to be necessary 

or proper in order to effectuate the policy of such Title I. All such 

rules and regulations from time to time so made and in effect shall 

be binding upon each member of the Code to which notice thereof 

shall have been given. 

SECTION 2. It is also the consensus of opinion in the Industry 

that, until such time as the demand for its products cannot ade- quately be met by the fullest possible use of existing capacities for 

producing pig iron and steel ingots, such capacities should not be 

increased. Accordingly, unless and until the Code shall have been 

amended as hereinafter provided so as to permit it, none of the mem- bers of the Code shall initiate the construction of any new blast 

furnace or open hearth or Bessemer steel capacity. The President 

may, however, suspend the operation of the provisions of this 

Section. 

ARTICLE VI-Am\HNISTRATION OF THE CoDE 

SEcTioN 1. The administration of the Code shall be under the 

direction of the Board of Directors. The Board of Directors shall 

have all the powers and duties conferred upon it by the Code and 

generally all such other powers and duties as shall be necessary or 

proper to enable it fully to administer the Code and to effectuate its 

purpose. 

SECTION 2. The Secretary shall act as Secretary under the Code. 

Under the direction of the Board of Directors, he shall keep all 

books (except books of account) and records under the Code and, 

except as such Board shall otherwise provide, shall collect, file and 

collate all statistics and other information required by the Board of 

Directors for the proper administration of the Code. 

SECTION 3. The Treasurer shall act as Treasurer under the Code 

and, under the direction of the Board of Directors, he shall have 
13 

cu to y of and ha e charge of the disp sition of, all funds c llcci d 

und r the o · an he . hall k p pror r ook of account howing 

th c 11 cti n an i po ition ther of. 

ECTION 4. Th Board of Director hall ha e pow r fr m time to 

time (a) t app int an l remo and to fix the ompBn ~ ti n of 

all u h other officers and employees and all such accountants attorneys and expert , a aid Board hall deem neces ary or proper for 

the purpo e of admini tering the od and (b) to fix the com pen ation of the ecr tary and the Treasurer for their services in acting 

under the Code. 

ECTION 5. The expenses of administering the Code shall be borne 

by the memb r thereof. The Board of Dir ctor may from time to 

time mak u h a e ments on account of such expenses a<Yainst the 

memb r of the Code a it shall deem proper and such asse sments 

shall be payable us such Board shall pecify. The part of such expen e which hall be asse sed against each member of the Code 

t,hall ooar the arne relation to the total thereof as the aggregate 

amount in dollars of the invoiced value of the products delivered 

by such member for consumption within the United States during 

the preceding calendar year shall bear to the aggregate amount in 

dollars of the invoiced value of the products delivered by all the 

members of the Code for consumption within the United States 

during such calendar year. Failure of any member of the Code to 

pay the amount of any as essment against such member for a period 

of thirty da} s after the date on which it became payable shall 

constitute a violation of the Code. 

ECTION 6. The Board of Directors may from time to time appoint 

uch committees as it shall deem necessary or proper in order to 

effectuate the purpose of the ode and it may delegate to r.ny such 

committee generally or in particular in tances such of the powers an 

duties of the Board of Direct rs under the Code as such Board 

shall deem nece ary or prop r in ord r to effectuate such purpose. 

Any member of any uch committee may be a member of the Board 

of Directors or an officer or a dir ctor of a member of the Code or a 

person not having any official conn tion with any member of the 

Code or with the Institute, as the Board of Directors shall d em 

proper. 

ECTION 7. The m mbers of the Code recognize that qu stions of 

public intere t are or may be in olved in its udmini tration. A -

cor ingly repre ntatives of the dmini tration con isting of the 

Admini trat r and one r two oth r person appoint d by him 

(who hall be p r ons not having or r pre nting int re t antagoni tic to the int r of member of th In lu try) hall be giv ~n 

full opportunity at su h tim s a shall be r a onably conv nient to 

discu. with the oard of ir t r " or any ommitt ther of nn.v 

matt r r lating to the admini trati n f the ode and to attend 

m tino: of the Boar at whi h a tion on any uch matter hall b 

un 1 rtak n and to mak r c mn n lati n a to methods or measures 

f a lmini. t ring the c1 . ue noti f all uch m tin of th 

B r of irector shall be giY ll to U h I' pr~ ntati S of the 

Admini tration. The r rcls f th oarcl f ir tor r lating 

in any way to th a mini. tration of th 1e hall op n to uch 

repr ntativ s at all r asonabl timc3. Th y hall b aft rcled by 
14 

the Board of Directors complete access at all times to all record~, 

statistical material or other Information furnished or readily available to the Board of Directors in connection with, or for the pnrposes of, the administration of the Code. The Board of Directors, 

acting directly or through one or more committees appointed by it, 

shall give due consideration to all requests, suggestions or recommendations made by such representatives of the Administration and 

render every po sible assistance to such representatives in obtaining 

full information concerning the operation and administration of 

the Code, to the end that the President may be fully advised regar•ling such operation and administration through reports that may 

be made to him from time to time by such representatives, and to the 

end that the President may be assured that the Code and the administration thereof do not promote or permit monopolies or monopolistic practices, or eliminate or oppress small enterprises, or operate 

to dis~riminate against them and do provide adequate protection o£ 

consumers, competitors, employees and others concerned and that 

they are in furtherance of the public interest and operate to effectuate the purposes of Title I of the National Industrial 

Recovery Act. 

ARTICLE VII-PRICES AND TERMS OF pAYMENT 

None of the members of the Code shall make any sale of any product at a price or on terms and conditions more favorable to the purchaser thereof than the price, terms or conditions established by such 

member in accordance with the provisions of Schedule E annexed 

hereto and in effect at the time of such sale; nor, except as otherwise 

provided in such Schedule E, shall any member of the Code make 

any contract of sale of any product at a price or on terms and conrlitions more favo~able to the purchaser thereof than the price, terms 

and conditions established as aforesaid and in effect at the time of 

the making of such contract of sale. 

ARTICLE VIII-UNFAIR PRACTICES 

For all purposes of the Code the acts described in Schedule H annexed hereto shall constitute unfair practices. Such unfair practices and all other practices which shall be declared to be unfair 

practices by the Board of Directors as provided in paragraph P of 

such Schedule H or by any amendment to the Code adopted as hereinafter in Article XII provided and at the time in effect shall be 

deemed to be unfair methods of competition in commerce within 

the meaning of the Federal Trade Commission Act as amended, and 

the using or employing of any of them shall be deemed to be a violation of the Code, and any member of the Industry which shall 

directly, or indirectly through any officer, employee, agent or representative, knowingly use or employ any of such unfair practices shall 

be guilty of a violation of the Code. 

ARTICLE IX-REPORTS AND STATISTICS 

SEcTioN 1. The Board of Directors shall have power from time 

to time to require each member of the Code to furnish to the Secretary for the use of the Board of Directors such information concern-
15 

ing the pr duction, hipm nts, ales and unfilled order of such 

member and the hours of labor, rat s of pay and other onditions 

of employment at the plant or plants of uch member and such 

other information as the Board of Director hall c1 em necessary 

or proper in order to effectuate the purpose of the Code and the 

policy of Title I of the National Indu~trial Recovery Act. The 

Board of Directors may require that any such information be furni hed periodi ally at such times as it shall spe"ify and may require 

that anv or all information furnished be sworn to or otherwise 

certifi a· or authenticated as it shall prescribe. Failure of any member of the Code promptly to furnish to the Secretary information 

required by the Board of Directors anc1 substantially in the form 

pres ribed by it shall con titute a violation of the Code. The Board 

of Directors shall not require any information regarding trade 

secrets or the names of the customers of any member of the Code. 

SE TION 2. Any or all information furnishe] to the Secretary by 

any member of the Code shall be subject to checking for the purpose 

of verification by an examination of the books and accounts and 

records of such member by any accountant or accountants or other 

person or persons designated by the Board of Directors and shall 

be so checked for such purpose, if the Board of Directors shall require it. The cost of each such examination shall be treated as an 

expense of admini tering the Code; provided, however, that, if upon 

such examination any such information bhall be shown to have been 

incorrect in any material respect, such cost shall be paid by the 

member of the Code which furnished such information. 

SECTION 3. The Board of Directors shall require the members 

of the Code from time to time to furnish such information as shall 

be necessary for the proper administration of the Code. 

SECTION 4. To the extent that the Board of Directors may deem 

that any information furnished to the Secretary in accordance with 

the provisions of the Code is of a confidential character in the interest of the member of the Co e which shall have furnished it 

and that the publication thereof is not essential in order to effectuate the policy of Title I of the National Industrial Re.covery Act, 

such information shall be treated by the Board of Directors an l 

by the other members of th Code if any knowledge of it shall have 

come to them as strictly confidential· and no publication thereof 

to an one or in any manner shall be made oth r than in combination with similar information furnished by oth r members of the 

Code in which case the publication shall be made only in su h 

manner a will avoid the di. closing separately of such confidential 

information. 

E TION 5. nmmarie or ompilations in reas nahlc detail of all 

information \Yhi h shall b furnished to the Secretary pur uant to 

the provisions of this Article IX shall be male periodically and 

sent to the Administrator. 

ARTICLE X-PEXALTIE \~D D ,\)L\GES 

E TION 1. Any violation of an pro i ion of th Code by any 

memb r f the In lu try shall constitute a violation f the Code 

by such memb r. 

6!647°----057- 12----34----2 
16 

SECTION 2. Recognizing that the violation by any member of the 

Code of any provision of Article VII or of Schedule E of the Code 

will disrupt the normal course of fair competition in the Industry 

and cause serious damage to other members of the Code and that 

it will be impossible fairly to assess the amount of such damage 

to any member of the Code, it is hereby agreed by and among 

all members of the Code that each member of the Code which 

shall viola.te any such provision shall pay to the Treasurer as an 

individual and not as treasurer of the Institute, in trust, as and 

for liquidated damages the sum of $10 per ton of any products sold 

by such member in violation of any such provision. 

SECTION 3. Except in cases for which liquidated damages are 

fixed in the Code and in cases which shall give rise to actions in 

tort in favor of one or more members of the Code for damages 

suffered by it or them, the Board of Directors shall have power from 

time to time to establish the amount of liquidated damages payable 

by any member of the Code upon the commission by such member 

of any act constituting an unfair practice under the Code and a l]st 

of the amounts so fixed shall from time to time be filed with the 

Secretary. Upon the commission by any member of the Code of 

any act constituting an unfair practice under the Code and for 

which liquidated damages are not fixed in the Code or which does 

not give rise to an action in tort in favor of one or more members 

of the Code for damages suffered by it or them, such member shall 

become liable to pay to the Treasurer as an individual and not as 

treasurer of the Institute, in trust, liquidated damages in the amount 

at the time established by the Board of Directors for such unfair 

practice and specified in the list then on file with the Secretary as 

aforesaid. 

SECTION 4. All amounts so paid to or collected by the Treasurer 

under this Article X or under Section 4 of Schedule E of the Code 

shall be held and disposed of by him as part of the funds collected 

under the Code and each member of the Code not guilty of the 

unfair practice in respect of which any such amount shall have been 

paid or collected shall be credited w1th its pro 1"ata share of such 

amount on account of any and all assessments (other than damages 

for violation of any provision of the Code) due or to become due 

from such member under the Code, or, in the case of any excess, 

as shall be determined by the Board of Directors, such pro rata 

share to be computed on the same basis as the last previous assessment made against such member on account of the expenses of administering the Code as hereinbefore in Section 5 of Article VI 

provided. All rights of any person who shall at any time be the 

Treasurer in respect of any amounts which shall be payable to him 

because of the commission by any member of the Code of any act con~tituting an unfair practice under the Code, whether payable 

under the provisions of this Article X or under any other provision 

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

upon the appointment of such successor. 

SECTION 5. Each member of the Code by becoming such member 

agrees with every other member thereof that the Code constitutes 

a valid and binding contract by and among all members of the 

Code, subject, however, to the provisions of Section 7 of Article 
17 

XI, an that, in a clition to all penalties and liabilities imposed by 

statute any violation of any provision of the Code by any member 

thereof shall on titute a breach of such contract and shall subject 

the member guilty of su h violation to liab 'lity for liquidated damages pur uant to the provisions of the Code. Each member of the 

ode by becoming uch member thereby a .Jigns, transfers and delivers to the Treasurer as an individual and not as treasurer of the 

Institute, in trust, all rights and au es of action whatsoever which 

shall thereafter accrue to such member under the Code for such 

liquidated damage by reason of any violation of the Code by any 

other member thereof1 and thereby designates and appoints the 

Treasurer as such individual the true and lawful attorney-in-fact 

of such member to demand, sue for, collect and receipt for any and 

all amounts which shall be owing to such member in respect of any 

such right or cause of action, and to compromise settle, satisfl and 

di charge any such right or cause of action, all in the name o such 

member or in the name of the Treasurer individually, as he shall 

elect. 

SECTION 6. Anything in the Code to the contrary notwithstanding, the Board of Directors by the affirmative vote of two-thirds of 

the whole Board may waive any liability for liquidated damages 

impo ed by or pursuant to any provision of the Code for any violation of any provision thereof, if in its discretion it shall decide that 

such violation was innocently made and that the collection of such 

damages will not to any material extent tend to effectuate the policy 

of Title I of theN ational Industrial Recovery Act. 

ARTICLE XI-GENERj_L PROVISIONS 

E TION 1. Any notice, demand or request required or permitted 

to be gi en to or made upon any member of the ode shall be sufficiently given or made if mailed postage prepaid addre sed to uch 

member at the addre s of such member on file with the ccr >tary. 

A ' aiver in writing igned by any member of the Co e o£ any 

such notic , demand or request and delivered to the Secretary shall 

be d me to be the equivalent o£ a notice, J cmand or rcqu st duly 

given or made wheth r or not uch waiver wa signed and delivered 

before the time wh n uch notice, demand or reque t \Yas r quir u 

or rmitt d to be criy n or made. 

'E 'TI N 2. N thino- ontainccl in the Code shall be de med to ntitute th m mb r £ the ode partners for any purpo e. ne ·£ the m mbcr £ th ode hall be liable in any manner to anyone 

f r any act o£ any oth r m mber o£ the ole or £ r any act £ the 

Board of ir ctor the Treasurer or the Seer tary or any comn ittee, 

offi r r mpl y appoin uncl r the ocl . one of the memb rs 

o£ the B ard £ ir tor or o£ an comrnitt e appoint d uncl r the 

de, n r the Tr a urer, nor the ecretary nor an ' officer r mpl : ap1 oint l und r the od hall be liabl to any n for ny 

a ti n r omi · i n t a t un 1 r the ode ex pt for his \Yil£ul mi - f a an r n nf a ance. thing ontain d in the o e ·hall be 

d m cl to con£ r upon an one oth r than a mE'mber f th de any 

right laim r l man whatso v r not expre .. l pro vi y tatute 

again t any n mb r f the oue or again -t any memb r of the 
18 

Board of Directors or of any committee appointed under the Code or 

against the Treasurer or the Secretary or any officer or employee 

appointed under the Code. 

SEcTION 3. As soon as members of the Industry which would 

if then members of the Code, have the right to cast at least 75% of 

all the votes that might be cast at a meeting of the memoors of the 

Code, if all members of the Industry were then members of the Code 

and present at such meeting, shall sign and deliver to the Secretary 

letters substantially in the form set forth in Schedule A annexed 

hereto, the Board of Directors shall submit the Code to the President 

pursuant to the provisions of Title I of the National Industrial Recovery Act and, upon the approval of the Code by the President 

pursuant to the provisions of such Title I, it shall constitute a bindIng contract by and among the members of the Code and the provisions thereof shall be the standards of fair competition for the 

Industry; subject, however, to amendment or termination as hereinafter in Article XII provided, and subject also to the provisions 

of Section 7 of this Article XI. 

SECTION 4. To the extent required or made possible by or under 

the provisions of Title I of the National Industrial Recovery Act 

the provisions of the Code shall apply to and be binding upon every 

member of the Industry, whether or not such member shall be a 

member of the Code. No member of the Industry which shall not 

also be a member of the Code shall be entitled to vote at any meeting 

of members of the Code or to any other right, power or privilege 

provided in the Code for the members thereof. 

SECTION 5. The Board of Directors shall have power from time 

to time to interpret and construe the provisions of the Code, including, but without any limitation upon the foregoing, the power to 

determine what are products within the meaning of that tenn as it 

is used in the Code. Any interpretation or construction placed 

upon the Code by the Board of Directors shall be final and conclusive upon all members of the Code. 

SECTION 6. In case any action taken by the Board of Directors in 

the exercise of the power vested in it by the provisions of the Code 

may appear to the Administrator to constitute a modification of the 

Code or an exemption of any one or more members of the Industry 

from the application of the provisions of the Code, the Administrator may require that such action be suspended in order to afford 

an opportunity for investigation by him of the merits of such action 

and further consideration thereof by the Board of Directors. 

Pending the determination on such investigation or further consideration, such action shall not become effective, unless the Administrator shall approve it or unless he shall fail to disapprove it 

after thirty (30) days notice to him of intention to proceed with 

such action in its original or modified form. 

SECTION 7. The members of the Code recognize that, pursuant to 

subsection (b) of Section 10 of the National Industrial Recovery 

Act, the President may from time to time cancel or modify any 

order, approval, license, rule or regulation issued under Title I 

of said Act. 
19 

ARTICLE XII-AM~T l\fEN Ts-TE L ATION 

N 1. The od may be am n ed at any time in the manner 

in thi cti n 1 provided. T he chan ·ing f any chedule hereto 

or th addition her to of any new chedule shall con titute an amendm nt of the ode. All am ndments hall be propo l by the Board 

of Director by vote of the majority of t he members t her eof at the 

time in offic . Each amendment s propo eel hall be submitted to 

a meeting of the members of the o le which hall be called for 

su h purpo e up n notice given in accordanc ... with the provisions 

of ction 1 of Schedule B and Section 1 of Article X I of the Code. 

I f at uch m eting members of the Code havincr the right to cast at 

lea t 75 % of all the votes that might be ca t at uch meeting, if all 

the members of the Code were present ther at, shall vote in favor 

of the adoption of such amendment, such amendment shall be submitted by the Board of Directors to the P re ident f or approval, if 

approval thereof by him shall then be r equired by law. E very such 

amendment shall take effect as a part of the Code upon the adoption 

thereof by the members of the Code as above provided and the approval thereof by the P r esident, if a ppro\ al thereof b.y him shall 

be r equired a afor esaid. SECTIO~ 2. The Code may be terminated at any 6me either by 

action of the President as h reinbef ore provided or by the same vote 

of the member of the Code as is above provi ded fo r the amendment 

thereof. When so terminated all obli o-ations and liabilities under 

the Code shall cease, except those for unpaid a es. ments theretofore 

made in accor 1ance with the provision of the Code and th0se for 

liquidated damages theret ofor e accrued under any provision of the 

Code. 

Appr oved ~o e No. 11.-.A.mcndmeot No. 1. 

Registry No. 1116---02. 
SCHEDULE A 

FORM OF LETrEB OF AsSENT TO THE CoDE 

' 19 • 

To the Secretary of 

AMERICAN IRoN AND STEEL INSTITUTE, 

Empire State Building, New York, N.Y. 

DEAR SIB: The undersigned, desiring to become a member of the Code of 

Fair Competition of the Iron and Steel Industry, a copy of which is annexed 

hereto marked Annex A, hereby assents to all of the provisions of said Code 

(hereinafter referred to as the Code), and, effective as of the date on which 

the Code shall have been approved by the President of the United States of 

America as therein provided, or as of the date on which this letter shall have 

been delivered, if delivery thereof shall have been made subsequent to the 

date on which the Code shall have been approved by said President as aforesaid, by the signing and delivery of this letter becomes a member of the Code 

and effective ~s a foresaid hereby agrees with every person, firm, association 

and corporation who shall then be or thereafter become a member of the Code 

that the Code shall constitute a valid and binding contract between the undersigned and all such other members. 

Effective as aforesaid, pursuant to Section 5 of Article X of said Code, the 

undersigned (a.) hereby assigns, transfers and delivers to the Treasurer under 

the Code, as an individual and not as treasurer of American Iron and Steel 

Institute, in trust, all rights and causes of action whatsoever hereafter accruing to the undersigned under the Code for liquidated damages by reason o'f 

any violation thereof by anyone, and (b) hereby designates and appoints said 

Treasurer as such individual the true and lawful attorney-in-fact of the undersigned, to deman'd, sue for, collect and r eceipt for any and all amounts which 

shall be owing to the undersigned in respect of any such right or cause of action, and to compromise, settle, satisfy and discharge any such right or cause 

of action, all in the name of the undersigned or in the name of said Treasurer, 

as said Trea surer shall elect. 

For all purposes of Section 1 of Article XI of the Code the address of the 

undersigned, until it shall file with the Secretary of American Iron and Steel 

Institute written notice of a change of such address, shall be as set forth at 

the foot of this letter. 

Very truly yours, 

Address: 

(20) 
SCHEDULE B 

TrrEJ RULES AND REGULATIO ' S IN RESPEOr oF MEIDT'ING oF MEMBERs OF THI!l Coom 

SEcTro_ 1. A meeting of members of the Code may be called and helU at any 

time by order of the Board of Directors, or by members of the Code having the 

right to cast at least 50% of all the votes that might be en t at such meeting, 

if all the memb rs of the Code were present thereat, on not less than three 

days' noti e to each f uch members stating the time and place of such meeting 

and the purposes thereof. 

SEC'I'ION 2. At ach m eting of the members of the oc1e each member thereof 

shall ha e as many Yotes as shall equal the quotient obtained by dividing by 

500,000 the aggregate amount in dollars of the invoiced value of the products 

delivered by such member for consumption within the United States during the 

preceding calendar year. Fractions in such quotient shall be disregarded; 

provided, how ver, that each member of the Code shall have at least one vote. 

All questi ns as to the number of votes which each member of the Code shall 

be entitled to cast at any meeting of the member thereof shall be determined 

by the B ard of Directors. Any person or firm who shall be a member of the 

Code may, and any as ociation or corporation which shall be a member of the 

Code hall, vote at meetings of the memoors of the Code by proxy in writing 

duly executed by such member and fil d with the Secretary. Any such proxy 

may be for .a pecifi d meeting or be a general proxy f r any or all meetings 

that may be held until such proxy hall have IJeen revoked by an instrument 

in writing duly executed by the member of the Code whi ch gav-e such proxy and 

filed with the Secretary. 

SEoriON 3. At each meeting of the member of the C de, members thereof 

having the right to cast at least 75o/o of all the v tes that might be cast at 

such meeting, if all the members of tbe Code were pre ·ent thereat, shall 

con titute a quorum for the transaction of business at such meeting. 

(21) 
S HEDULE 0 

DE CRIPTION OF WAGE Dr TJUCTS 

1. EA TER~ Dr TBiaT.--Compri e that part of the United State which is 

north of the State of Virginia and ea t of a line drawn north and outh 

through the mo t ea terly point of Altoona, Penn ylvania; that part of the 

tate of Maryland which is we t of uch line; and the ounties of Monongalia, 

Marion and Harri on in the State of West Virginia . . JoH ' STOWN Dr TJUCT.- ompri e ambria County and the ity of Alto na in the tate of Pennsyl>ania. 

3. PITT BURGH DISTRICT.- ompri the ounties of We tmoreland, Fayette, 

Greene, Wa hington, Allegheny Bea>er, Butler, Armstrong and Jefferson and 

that part of the ounty of l arfi ld which is we t of a line drawn north 

and south through the most easterly point of Altoona, all in the State of 

Pennsylvania. 

4. Yo -G TOWN VALLEY Dr TJU T.-~"'omprises the Counties of Lawrence, 

Mercer and enango in the State of Penn yl>ani.a and the Countie of Trumbull ~ahoning and olumbiana in the State of Ol.lio. 5. NORTH OHIO RIVER Dr TBICT.--Compri e th citie along the hio River 

north of the ity of Parkersburg, We t irginia, and the ountie~ of Belmont 

and Jeffer on in the State of Ohio and the "ounties of hlar ball, Ohio, Brook 

and Hancock in the State of We t irginia. 

6. A -TON, 1A SILLON AND l\JAN nFIELD Dr TBrCT.- ompri e the ounties 

of tark, Tu oarawa , Summit, Richland and Ia.rion in the tate of Ohio. 7. ~LEHJLAND Dr 'I'RlOT.-Compri e the ounties of Ashtabula, Lak , uyahoga and Lorain in the State of Ohio . 

. TIL.'FFALO Dr TBICT.-Compri es that part of the State of New York west 

of a line drawn north and cuth through the most ea terly point of Altoona, 

Penn yl>ania, and the Countie of Erie, Crawford and Warren in the State 

of Pennsrl>ania. 

9. DE.TROIT-TOLEJOO DrsTRICT.-Comprises the Cotmtie of Seneca and Lucas in 

the tate of Ohio and the Counties of 1\lonroe, Len.aw e, Jackson, Wayne, 

Oakland l\lacomb and Wa htenaw in the State of Michigan. 10. SouT~ OHIO RIVE& DrST'RlCT.-Comprise the State of K ntuck~, the City 

of Parker burg. We t irginia, th citie al ng the Ohio Ri>er outb of said 

City, the Countie of Guern Y, Mu kingum, Jack on, Licking and Butler in 

the tate of Ohio and the unty of Wood in the State of W t Virgini-a. 

11. I NDIA -A-ILLI ors-ST. Lo IS Dr TEICT.--Compri e all the State of Indiana, except the county of Lake ; all the State of Illinois, except the ounties 

of Lake and Du Page and tb Chicago Switching Di trict; the ity of St. 

Loui and the ounty of St. Loui in the Stat of l\lis ouri; the County of 

Scott in the State of Iowa; and the ounties of Rock and Ozaukee in the State 

of Wiscon in. 

12. HIC~Go Drs'IRICT.- omprise hi a (To witching District; the Conntie of Lake and Du Page in the tat f Illinoi ; the unty of Lak in the 

State of Indiana; and the Countie of Keno ha, Racine and l\Iilwau.kee ju the 

State of Wi con in. 

13. So 'l'HERN DrsTRI T.-Compri e all that part of the nit d tat south 

of the State~ of Maryland, West irginia, Kentucky and l\li souri, and the 

State of T xas and Oklahoma, but does not include the County of Jeffers n 

in the State of Alabama. 

H . BIRMINGHAM DrsTJUCT.-Comprise the ounty of J efferson in the State 

of Alabama. 

15. KANSAS CITY DrsTBICT.-Comprise the County of Jackson in the State 

of l\Ii ouri and the County of Polk in the State of Iowa. 

16. DUL TH DrsTBICT.-Compri e tbe County of St. Louis in the tate of 

Minne ota. 

(22 ) 
23 

, 

,_tate of Wnsh-

Iateo, Alameda, 
SCHEDULED 

:MINIMUM RATES OF p .A.Y FOR COMMON L .:illOR 

Cents per hour 

1. Eastern Di tricL___________ 35 

2. Johnstown District_________ 37 

3. Pittsburgh DistiicL__________ 40 

4. Young to\\'n Valley District__ 40 

5. North Ohio River Di tricL___ 40 

6. Canton, l\Iassillon and l\lansfield Distiict______________ 37 

7. Cle\eland District____________ 40 

8. Buffalo District______________ 38 

9. Detroit-Tole lo District______ 40 

10. South Ohio River District____ 37 

11. Indiana-Illinois-St. Louis District --------------------- 37 

Cents per 

hour 

12. Chicago District_____________ 40 

13. Southern District____________ 25 

14. Birmingham District_________ 27 

15. Kansas City District_______ 35 

16. Duluth District_____________ 37 

17. olorado District____________ 40 

18. Utah District_______________ 39 

19. Seattle District_____________ 38 

20. San Francisco Dlstli cL_____ 37 

21. Los Angeles District________ 35 

(24) 
S HEDULE lD 

0 "'CE&NI G PnJCES AND TERMS OF P A.YMEINT 

ECTION 1. Wh r ver u ed in the Code the terms hereinafter in this Section 

1 defined ball, unl the context shall otherwise clearly indicate, have the 

r pectiv meaning hereinafter in this Section 1 set forth. The deefinition 

of any ucb term in the singular shall apply to the u e of uch term in the 

plural and vice ver a. 

(a) Until che<lule F of the Code shall have been amended a in Article 

XII of the Code provided, the term ' ba ing point" for any product means 

one f the place li ted in such Schedule F as a ba ing point for uch product. Thereafter the term shall mean one of the places listed in such Schedule 

F a at the time in effect as a ba ing point for uch product. 

(b) The term " ba e price " for any product means the price for uch product !.o.b. a ba ing point, before any extras in respect of such product shall 

be added or any discounts for early payment or deductions hall be allowed 

or made. 

(c) The term "place of delivery" as used with respect to any product 

mean (1) the railroad freight station at or nearest to the place at which 

the purchaser shall intend to u e such product or at which such purchaser 

shall have a place of business and hall store such product for resale, or (2), 

in the case of a product sold to a jobber for direct shipment by a member of 

the C de to a purcha er of uch product from such jobber, the railroad freight 

station at or nearest to the place at which such purchaser shall intend to use 

such product, or (3), in the case of a product destined for delivery at a p rt 

in the anal Zone or in Ala ka, a dock at such port, or (4), except a the 

Board of Directors hall otherwise determine, in the ca e of carload quantities 

of plate , hapes and bar intended for fabrication for an identified tru<:tur , the railroad freight station at or nearest to the place at which uch tructure 

is to be erect~d. 

(d) The term " identified tructure" means a tructure which, when the 

product or product that enter into it construction are assembled or erected, 

is fixed in its location for u e at the point of the a embly or erection of ·uch 

product or product , or a ship or a barge. 

(e) The term " hipment" as used with respect to any product m an the 

delivery of the po se ion of such product to a carrier for the tran portation 

thereof to the plac of deli>ery, or, when such product hall be transported by 

the m mber of the Code whi h shall have sold or contracted to ell it, the 

compl tion of the loading of ncb product and the commencement of the transportation thereof to the place of delivery. 

(f) Except a hereinafter in this paragraph (f) provided, the term "all-rail 

publi.'h d tariff fr ight charae " a u ed with respect to the ale by a meml er 

f the ode of any quantity of any product means the freight charge appli ·able 

to th quantity of u ·h product shipped at one tim at the all-rail publi bed 

tariff fr ight rat in ffe t at the time f the hipment thereof, aDd a u ed 

with r pe t to the sale by a member of the Code of any quantity of any product 

sold at on time for use in tb con. truction of an irlentified tru ·ture, uch 

term means the fr i ht charg applicabl to uch quantity of such produ 

at th all-rail publL h tariff fr ight rate in effect at tbe time of uch ale. 

In the ca of a ale or contract of le of a carload or more of variou produ t f r hipment in mix d carl ad lot , wheth r the re p cti\ ba e prices 

f r Ruch product b be d on th . arne r diff r nt ba ing point the term 

"all-rail vubli h d t::niff freight charge " means tb fr ight charge applicable 

t th r pective qu ntities f such pr u ts old fr m the ba in point or 

ba. ing p ints n which th r ctive ba. price of . uch produ are ba d 

t th pla of deliv ry ther f at th all-rail ublLh d tariff carload freight 

rate in effect at tl e time of the shipment of uch produ ts. 

(25) 
26 

(g) 'l'he term "period of free credit" means the period of time between 

the date of a shipment of a product to the purchaser of such product and the 

date from and after which such purchaser ball be required to pay interest on 

the purchase price of such product or any part thereof which shall not have 

been paid prior to the expiration of sucll period. 

(h) The term " date of invoice" means the date of the invoice of any 

product. 

( i) The term "discount for early payment" means the amount of the deduction allowed for the payment of an invoice of products within a specified 

number of days .after the date of such invoice. 

(j) The term "an affiliated group" means one or more corporations connected through stoc:k ownership w.th a c .mmon parent corporation, if (1) at 

least 75% of the stock of each of such corporations (except such common 

parent corporation) is owned directly by one or more of the other corporations, 

and (2) such common parent corporation owns directly at least 75% of the 

stock of at least one of the other corporations. The term "an affiliated company of a member of the Code" means (1) & corporation which is one of an 

affiliated group that also includes such member of the Code, or (2), in case 

the member of the Code is a person, firm or association, a corporation at least 

75% of the stock of which is owned by such member. For the purposes of tllis 

paragraph (j) the term "stock" does not include non-voting stock which is 

lim:ted and preferred as to dividends. 

SECTION 2. Each member of the Code which shall have become such within 

ten days after the effective date of the Code shall prior to the expiration of 

such ten days file, and each member of the Code which shall become such after 

the expiration of such ten days shall upon becoming a member of the Code 

file, with the Secretary a list showing the base prices for all its products, and 

from and after the expiration of such ten days or, in the case of any such 

list filed at or after the expiration of such ten days, from and after the date 

on which such list shall be filed, such member shall at all times maintain on 

file wi~h the Secretary a list showing the base prices for all its products and 

shall not make any change in such @ase prices except as provided in this 

Schedule E. Each such list shall state the date upon which it shall become 

effectiYe, which date, except as hereinafter in this Section 2 otherwise provided, shall be not less than ten days after the date of filing such list with the 

Secretary; provided, ho~cever, that the first list of base prices filed by any 

m -mber of the Code as above proYided shall take effect on the da:e of the filing 

thereof. In naming a product in any such list the name of such product shown 

in Schedule F of the Code shall be used, and none of such lists filed by any 

member of the Code shall show more than one base price for any product of 

any description at any basing point for such prouuct, except that in any list 

of base prices for pipe filed by any member of the Code both a carload price 

and a less-than-carload price may be shown. None of the base prices shown in 

any list filed by any member of the Code as herein provided sllall be changed 

except by the filing by such member with the Secretary of a new list of its 

base prices, which shall become effective on the effective date therein pecified, 

which, except as h reinafter in this Section 2 otherwise provided, shall not be 

less than ten days after t'he date on which such new list of base prices shall 

have been so filed. If at any time there shall be on file with the Secretary lists 

of base prices in which two or more base prices for any product at any basing 

point shall be shown, any member of the Code which shall have filed a list of 

base prices in which a base price for such product at such basing point shall 

be shown may file a new list of base prices in which a new base price for such 

product at such basing point may be shovm as low as the lowest base price for 

such product at such basing po-int shown in a list of base prices filed by any 

other member of the Code and such new list of ba ·e prices shall become effective in so far as such product is concerned on the date specified therein, which 

elate may be (a) the same date as that on which such list of base prices in 

which such lowest base price sball h(' shown hall become effective, if such 

last-mentioned list of base prices shall not have become effective on the date 

of the filing of such new li t of base prices, or (b) the date of the filing of 

such new list of base prices. if the list of base prices in which such lowest base 

price shall be shown shall then be effective. In the cnse of products which 

are sold on a list and discount basis, for the purposes of this Section 2 the list 

of base pri@es shall consist of a price li t andl one or more basing discount 

lists, from which the base prices of such products shall be determined. 
27 

SECTION 8. Except as hereinaft r otherwise provid d in re pect of tandard 

Te rail of mo.re than 60 unds per yard and angle bars and rail joints 

therefor, the base price f r any product shown in any li t of ba price fil d 

by a m mber of th od in accordance with the provisions of th foregoing 

ctlon 2 ball b a follows: (a) If such m rub r shall operate a plant for the 

production of u h product which i located at a ba ing point for uch product, 

f . . b. uch basin a int, r (b), if such m mber shall operate a plant for the 

production of such product which is not lo ntel at a basing point for such 

product, f.o.b. the basing point for su h product neare t in terms of all-rail 

freight rat to ucb plant, or (c), if any Gulf or Pacific Coa t port shall 

be li ted a a ba ing point for uch product in Schedule F of the Code a at 

the time in ff t, f.o.b. cars dock such port, or (d), if any Atlantic Coast 

port hall be li ted in uch Schedul e F a at the time in eff ct as a ba ing 

point for ferro-manganese or spiegeleisen, then for uch product f.o.b. cars 

dock uch port, or (e), so long as Palmerton, Pa., shall be listed in such 

chedule F as at tbe time in effect as a basing point for spiegeleisen, then for 

such product f.o.b. uch basing point. Except as otherwi e provided in this 

c.bedule E, each member of the Code shall file with the Secretary and main.-

tain on file with him a list showing the base price for each of it · product for 

each ba ing point for suc:h product at which a pLant of such member for the 

manufacture of such product shall be located and for each ba ing poitn for such 

product which ball be neare t in terms of all-rail freight rates to any plant of 

such member for the manufacture of such product not located at a ba ing 

point for such product; and, if any Gulf or Pacific Coast port ball be li t d 

in such Schedule F as a basing point for a product, such member may show 

in such list its base price for such product at such basing point. All base 

price h wn in the list so filed hall constitute the published base prices of ueh 

member for the products and for the basing points shown in such li t. Except 

as aforesaid, none of the members of the Code shall file any list of ba e r ric s 

bowing any price for any of its products other than the base price for such 

product f.o.b. the basing point or basing points for such product a hereinbef re provided. The published base price of each such member for any 

product (except standard Tee rails of more than 60 pounds per yard and 

an...,.le bars and rail joints therefor) for any basing point for uch product 

other than that or those shown in the list of base prices so fi led by uch 

member shall be deemed to be tbe lowest base price for such product at such 

other basing point which shall be shown in the list of base prices tiled by any 

other member of the Code and then in effect. 

All base prices for standard Tee rails of more than 60 pounds per yard 

and for angle bars and rail joints therefor shall be f.o.b. mill of the producer 

thereof, or, in the case of such rails, a ngle bars and rail joints carried by 

water from any Atlantic Coast or Gulf port to any Gulf or Pacific C<Ja t port, 

c.l.f. the port of destination. Except in the case of contracts of the character 

described in the exception contained in the second sentence of Section 8 

of this Schedule E, none of tbe members of the Code shall sell or contract to 

sell any product for shipment in any calendar quarter-year, until such member 

shall have fil d with the Secretary a list of base prices in which the ba e 

price for such product at the basing point, or the base prices at the respectiYe 

basing points, of such member for such product for such quarter-year shall 

be hown and su b list shall have become effective; provided, however, that 

nothing herein contained shall be so con trued as to prevent such memb r 

from filing at any time a new list of ba e prices in which shall be shown 

n as pric for su h product at such ba ing point or any of such ba ing 

point which shall be lo\ver than the ba e pric for such product at u ·h 

ba. ing point shown in the list of base pri . which was last fil d by u ·h 

m mber prior to the date on whic:h such new list of base pri ·es wa so 

fil d; a nd providecl, further, that, if such member shall fil a new li t of ba e 

pric bowing any such low r ba e price at any ba ing point, any m mh r 

f th ode may chan"' any ontrac: t which it . hall th r tofore have mad for 

hipmcnt of any quantity f u ·b produ t in such qua rter-y ar at a rico 

whi h was bas d on such ba. ing p int, oth r than a ontrnct of the ha ra t r 

d crib d in th x ption ontain d in th nd ·ent nee of aid e ·tion , so as to provide that an y part of the quantity of uch pr du t c ver cl 

by su h con tract which ·hall n t hav been shii p 1 prior to th effective date 

of u h new H t of ba e pric and which shall b hipped th r aft r in u h 

quarter-year may be billed at a price which shall be determin d by the use 
28 

of such lower base price. Notwithstanding the fact that a member of the 

Code is not permitted to have on file a list of base prices in which base 

prices for a period longer tb an a calendar quarter-year shall be shown, any 

base price of any product shown therein for any basing point shall be deemed 

to be in effect in determining the delivered price of such product for such 

basing point required by any contract to be shipped in any subsequent quarteryear as permitt d by the provisions of Section 8 of this Schedule E. Lists 

of base prices filed with the Secretary pursuant to the foregoing Section 2 

and to this Section 3 shall be open to inspection at all reasonable times by 

anyone. SECTION 4. Except as otherwise provided in this Schedule E, all prices quoted 

and all prices billed by any member of the Code for any product (except 

standard Tee rails of more than 60 pounds per yard and angle bars and rail 

joints therefor, which shall be quoted and billed as hereinafter provided) 

sold by such member from and after ten days after the effective date of the 

Code shall be delivered prices, which (disregarding the extras, if any, required 

by, and the deductions, if any, that may be made pursuant to, the provisions 

of the Code) shall be not less than the sum of (a) the published base price 

of such member for such product effective at the time of and for the sale 

thereof and (b) an amount equal to the all-rail published tariff freight charges 

from the basing point on which suc.h base price is based to the place of delivery 

to the purchaser thereof, or, ( 1) if such place of delivery shall be at such 

basing point, the published tariff switching charges to such place of delivery 

from the plant of any member of the Code for the production of such product 

at such basing point nearest in terms of such switching charges to such place 

of delivery; or, (2) if such place of delivery shall be at a Gulf or Pacific Coast 

port that is listed in Schedule F of the Code as a basing point for such product, 

the published tariff switching charges to such place of delivery from the dock 

for discharging products nearest in terms of such switching charges to such 

place of deliYery ; provided, however, that (a) in any case in which such 

product shall be delivered by other than all-rail transportation, the member 

of the Code selling such product may allow to the purchaser a reduction in 

the delivered price otherwise chargeable under the provisions of this Section 4 

at such rate previously approved by the Board of Directors and filed with 

the Secretary as the Board of Directors shall deem equitable and necessary, 

in order that competitive opportunity to producers and consumers of products 

shall be maintained; and (b), subject as hereinafter in this Section 4 provided, 

if any list of base prices filed with the Secretary by any member of the Code 

pursuant to the provisions of this Schedule E and at the time in effect shall 

show a specified rate of deduction from the base price of any product to be 

allowed by such member on any sale of such product to any jobber for resale, 

such member may, from and after the date on which such list shall have become 

effective, allow to any jobber to whom such member shall sell such product 

for resale a deduction from such base price to such jobber for such product at 

a rate not greater than the rate so shown in such list; and provided, f'urther, 

that the Board of Directors by the affirmative vote of three-fourths of the 

whole Board may permit any member of the Code in special instances or 

members of the Code generally to sell or contract for the sale of any product 

produced by such member or members at a base price which shall be less than 

the then published base price of such member or members for such product at 

the re pective basing points therefor of such members, or at a delivered price 

which shall be less than the delivered price otherwise chargeable under the 

provisions of this Section 4, if by such vote uch Board shall determine that 

the making of such sale or contract of sale at such less base price or less deliver ed price is in the interest of the Industry or of any other branch of industry and will not tend to defeat the policy of Title I of the National Int.lustrial 

Recovery Act by making possible the using or employing of an unfair practice. 

The Board of Directorrs shall prescribe such rules and regulations as it shall 

deem proper by which the question of whether or not any purchaset· or prospective purchaser of any product for resale is a jobber shall be determined, and in 

granting any permi, sion as aforesaid, the Board of Directors shall 11rescribe 

such rul es and regulations in respect thereof as in its judgment shall be neces- ary in order to insure to the members of the Code that action in accordance 

with any such permission shall not result in an unfair practice; and thereafter 

such Board may by like vote rescind any permission so granted or modify, 

cancel or add to any rules and regulations so prescribed. The Secretary shall 
29 

py of all uch rul s and r gulations 

t the d tcnuinati n of th qu tion 

pur ba r r pro pe<:tive pur ·ha er f r rc al is a jobb r and 

hall gi\ o ti in writing of all a ti n o tak n by th Board f Dire ·tor 

a ·h m mb r of the od whi h at the time hall b ngag d in producing 

th kintl f pr duct in r p t of whi h any such p rmi ion 'vas grant d. 

Bef r any m mber of the od shall all w any such detlu ·tion to any jollber 

or , 11 f r r al to an I urcha er who hall not be a jouber any produ t puruant to any p rmi i n o grant d to su h ruemb r, ueh m ruber shall s cure 

from u h j bber r !mCh other urchaser an aiTeem nt sub tantially in a form 

th r t for approv by the Board of Dir ctors and filed with the · cretary 

wh r by uch jobber or other pur has r shall a r ' •ith uch m miJ r (a) that ·u h j bber or other purchaser will not, without tll a11proval f the D ard of 

Dir ct r , ll such pr du t to any third party at a price which at th time of 

the ale thereof shall be less than the price at which such member might at 

that time sell such product to such third party, and (b) that, if ueh j obber 

or uch other purchaser hall violate any such agreement, he shall pay to the 

Tr a ur r as an individual and not a trea urer of the In titute, in tru!':t, as 

and for liquidated damages the sum of $10 per ton of any product sold IJy such 

jobber or such other purchaser in violation thereof. In the ca ·e of a product 

de tin for delivery at a place in the Canal Zone or at a port in Ala ka, the 

memb r of the Code selling such product, in determining its deliYered price 

therefor, hull add to its publi hed base price for uch product effectiYe at the 

time of and for the sale thereof such charges in respect of tran ·1 rtation as 

hall have been previously approYed by the Board of Directors and fi led with 

the Secretary. 

Except as aforesaid, all prices quoted and billed by any member of the Code 

for tandard Tee rails of more than 60 pounds per yard and angle bars and 

rail joints therefor sold by it from and after ten days after the effective <late 

of the Code (disregarding extras and deductions as aforesaid) shall be not less 

than the published base price of such member for such rails, angle bar· and 

rail j oints effective at the time of and for the sale thereof f.o.lJ. mill of the 

produ er, or, in the case of such rails, angle bars or rail joints carried by water 

from any Atlantic Coast or Gulf port to any Gulf or Pacific Coa ·t port, c.i.f. 

the port of destination. Wherever provisions of the Code or of any re olution 

adopted thereunder by the Board of Directors require, either specifically or in 

effect, that in determining the delivered price that may be quoted and billed 

for any product an amount equal to any published tariff freight charges shall 

be added, an amount not less than the appropriate tariff freight charges 

shown in any tariff published pursuant to authority of the Board of Directors 

hall be added in determining such delivered price; provi4ed, however, that 

when switching charges for the delivery of a product at a basing point are 

required to be added in determining such delivered price, the Board of Dire tors 

may by resolution fix such an arbitrary switching charge or such arbitrary 

witching charges for tl1e delivery of such product as such Board shall deem 

proper with a view to preventing unequal competitive conditions in respect 

of th ale of uch product for delivery at such basing point; and provided, 

tw·ther, that, if and when the Board of Directors shall fix any such arbitrary 

witching charge or arbitrary switching charges for the delivery of n product 

at a ba inO' point, thereafter not less than the amount of uch charge or 

char e. shall be add in determining the deliv red price of uch product. 

In ca e at the effec:tive date of th Code any valid, firm contract to which 

a member of the Code hall be a party shall exi t for a definite quantity f any 

product or f r all or a ubstantial part of the r quir ment of the pur ha. er 

th r f (a) at a fixed price, or (b) at a price that can bed finit ly dct rmined 

in accordnuc with the provisi ns of u ·h contract, or (c) at the market price 

for u ·h produ t at the date when a definite quantity thereof hall be spe ifiecl 

uod r u ·h contract and such contra t cover d a ale of 20o/o or mor of the 

t tal quantity of uch pr du t pro<luc d and sold in the United tat s in the 

cal u<lar year 1932, it is r ognizccl that su h contract may inflnenc to au 

imp runt xtent the mark t price for such product during th remaind r f 

it· lif and that, if the otb r m mber. of the de which pr du e and 11 su h 

produ t sl1all by the for going provi i n f thi. Schedule E b pr v ntec1 fr m 

lling su ·h product during th r maind .r of the lif of uch contract at as 

favorahl a pti e and n as fay rabl t rms and nclitions a tho e pr id d for 

in such contract, then unfair c m:petition as between the member of the Code 
30 

which shall be a party to such contract and the other members thereof and also 

as between the other party to such contract and its competitors may r esult. Accordincrly, anything herein to the contr ary notwithstanding, during the remainder of the life of such ·outract any member of the Code may sell such product 

at n prica and on terms and conditions as favorable as (but not more favorable 

than) the r rice, terms and conrJitions provided f r in such contract and the 

Board of Direct r. may take such action in respect of sales of uch product by 

memberR of the Code c nsi tent with the terms of such contract as will insure 

the preYention of such unfair competition. In case any contract in existence 

a t tl1 e effE'ctive elate of the Code shall r equire tha t the price quoted and billed 

for any product that is covered by a patent hall be based on a basing point 

other than as provided in Section 3 of this Schedule E, then, anything in this 

Schedule E to the contrary notwithstanding, an y member of the Code which 

shall pr duce anu sell such product Oi' any other product which the Board 

of Dir ctors shall determine to be competitive in sale and use with such product may file a base price for such product or such other product for such basing 

point or basing points as will meet the requirements of suc:h contract with 

respect to the product covered therE'by and may quote ancl bill deliver ed prices 

for such product or such other product ~sed on such basing point or basing 

points. 

SEcTION 5. The Board of Directors by the affirmative vote of a majority of 

the whole Board may establish maximum rates of discount for early payment and maximum periods of fr ee credit, other than those specified in Schedule G annexed hereto, v>hich may be a llowed by any member of the Code \Vith 

respect to the sale of any pr oduct or products to jobbers for r esale as permitted by the provisions of Section 4 of this Schedule E. The Secretary shall 

give notice in writing of any action taken by the Board of Directors in accordance with the provisions of this Section 5 to each member of the Code 

whi ch a t the time shall be engaged in producing the kind of product in the 

sale of which any such other rates or periods shall have been established by 

such action. Except as aforesaid and except as elsewhere in this Schedule ]) 

of the Code otherwise provided the maximum rates of discount for early payment and the maximum periods of free credi t which may be allowed by any 

member of the Code shall be the rates and periods specified in said Schedule 

G. Except as aforesaid, all invoices for products sold by any member of the 

Code after the effective date of the Code shall bear interest from and afte ~ 

tbe expiration of the 11eriod of free cr edit at a rate which shall be not less 

than the then current rate established by the Boa rcl of Directors and filed 

with the Secretary. Nothing in the Code contained shall prevent any member 

of the Code from allowing c,_·edit to any purchaser or allowing any purchaser 

to delay payment in r espect of any invoice for a longer period than the maximum period of free credit specifi ed in such Schedule G or such other maximum 

period as shall be established in accordance with the provisions of this Sec- tion 5; but, if any member of the Code shall allow credit to any purchaser or 

allow any purchaser to delay 11ayment in respect of any invoice for a period 

longer tl1:1n such maximum period of free credit, th en such member shall 

cha rge and collect interest on the amount in r espect of which credit shall be so 

allowed or the payment of ''hich shall have been so delayed at a rate not 

less than the cunent rate estab lished and filed as afor esaid. Anything in the 

Code to the contrary notwithstanding, the Board of Directors shall have power 

to authorize any mt'mber of the Code to compromise or settle on such terms 

and conditions as the Board of Directors by re olution shall approve a ny claim 

for the principal of, or the interest on, any indebtedness to such member on 

account of any product or products sold by it. 

SECTION 6. Except as in this S"hedule E otherwise provided, any extras 

adc,ed to, and any deductions made from, the bn se price for any product sold 

by any member of the Code in determining its quoted or billed price for such 

product shall be unifo rm for all members of the Code. The rates of such 

extras and of uch deductions shall be those approved from time to time by 

the Board of Directors as being in accordance with the trade practice customary 

in the Industry at the effective date of the Code and as meeting the r equirement. of the Code. Lists showin()' such rates shall be fil ed with the Secretary 

and shDll be open to inspection at all reasonable times by anyone. In case any 

member of the Code shall sell any product to which any such rate of extra 

or deduction shall apply, except a s aforesaid suc·h member shall add an extra 
• 

31 

at a rate which hall not b 1 than the rate of extra appll ·able to uch 

pr du t th retof r approved by th Board of Director a af r aid and at the 

tim iu tie t and none of the memb rs of th Code ball make any dedu tion 

at a rat that hall be more favorable to th purcba er of . u ·h product than 

th rat f d du tion applicable to uch pr duct th retofor approved by the 

B ·u 1 f Dire tor a a.for aid an 1 at th time in ffect; providecl, ho w ver, 

that nothing in the de contain t1 hall be o con trued as to prevent any 

m mb r f th o<l from llin"' or outractin,. t ell any pr duct for u. by the urcha r thereof in th manufacture of articles for llipm nt in e:x:port 

trad mthin the m aning of th t rm " xport tra le" a it i used in the 

Export Trad A t under an agre m nt by su h member of the ode "'ith uch 

nurcha r that. when uch articl s hall haY been hipp d in such export trade, 

uch m mb r of the ode hall ruak an allowance at a rate approYed by the 

B ard of Director and a statement of the approval of which shall theretofore 

haYc b n :filed with the Secretary, which rate in the opinion of such Board 

hall be uflicient to enable ' u h member of the Code or such purchaser to meet 

for ign competition in the sale and deliYery of su ·h product or such articles, 

a the case may be. 

ECTIO:"' 7. Th practice of hipping products on consignment may re ult in 

unfair competition and it is the intention of the Indu try to eliminate such 

practice as oon a p sible after the effective date of the Code. Accordingly, 

ex pt to the extent neces ary to carry out arrangements existing on the 

ffective date of the ode and which shall ha\e been reported to the Board 

of Directors, from and after such date none of the members of the Code 

shall deliver products, other than pipe, on consignment except to an affiliated 

company of su h member. All arrangement for the deliYery by any member 

of the ode of product on coo iunmeot (other than consignments to an 

affiJiat d company of such member and other than consignments of pipe) 

exi tina on the effective date of the Code shall be terminated on or before 

June 30, 1934 and all stock held on consignment on that date shall either be 

s ld to the con ignee or pos e sion thereof shall be taken by the con ignor. 

The Board of Director shall in\estigate problem presented in the elimination of consigned stocks of pipe and shall recommend to the members of the 

de '\\hich hall be partie to then existing arrangements with respect to 

shipment of pipe on consignment (other than consignments from a member 

of the Code to an affiliated company) such action in respect thereof as such 

Board hall deem proper and designed to accomplish the termination of all 

such arrangements (other than as aforesaid) at a early a date as possible. 

SECTION 8. For all purposes of thi Schedule E, a delivery of any product 

made pursuant to a contract of sale hall be regarded as a sale thereof made 

at the time of the making of such contract. Except in the case of a pro luct 

r qui red (a) by a purchaser for the construction of an identified structure 

or new railroad cars or locomotives under a specified definite contract of ·uch 

purcha er with a third party at a :fixed price, or for the con truction of such 

a tructure or uch cars or locomotive owned or to be owned by such purcha er, in ach of '\\hich ca es the product hall be sold under a contract which 

shall exvre .. ly provide that such product shall be used only for such structure, 

or (b) by the Federal Government or any state, county or municipal government or any department or divi ion thereof for a definite project, and exc pt 

a . the Board of Dir ctors shall determine to be necessary for the manufacture 

and d livery of a product or necessary or advi able in order to aid the Federal 

G v rnment or any tate, county or municipal government in carrying through 

its pr o-ram of economic recovery, r employment• of labor or relief of di. tre s 

or oth rwise for the ad, ancement of public purpo s and the general welfare, 

non of the member of th ode hall make any contract of sale of any 

pr duct by the t rm of which the shipment of such product i not required 

to b omplet d b for the nd of the calendar quarter-year ending not more 

than four month after the dat of the making of such contract. Every contract m" de on or after June 1, 1934, for the ale of any product which by 

th t rm of . u h ontract i r quir d to be or may be deliv red aft r th xpiration of ten day after the dat f uch contract hall be in writing. On 

autl aft r June 1, 1934, non of th m mher of the ode hall mak any contra t for the ale of all or any part f the r quir ments of the oth r party to 

such ontract f r any pr duct, unl s th maximum quantity of such product 

to b cl li Y r d unc1 r such contra t hall be sp ci:fied therein . 
32 

SEOTION 9. Nothing 1n the Code contain d, how er, shall be so construed 

as to pr \ent the performance by any member of the ode of a valid, firm contract exi ting and to whi h it is a party at the effective date of the Code for a 

defini t quantity f any product or for all or a ub tantial part of the r quirement of the purchaser thereof (a) at a fixed price, or (b) at a price that can 

be u fi uitely d t rmined in accordance with the provisions of such contract, or 

(c ) a t he market pri e for uch product at the date when a definite quantity 

ther-of hall be pecified und r uch contract. If any member of the de hall 

at the effective elate th reof be a party to any contract f r the ale of any 

pro 'lu t b.r u h memb r which by its terms is to continue after D cember 31, 

193' , and by its term the pri e to be paid for such product by the other party 

to ueh ontmct is related to the market price thereof at the date ' hen a 

definite quantity thereof may b.e pecified under such contract and may be less 

than uch market price, then such member shall within thirty days after the 

effective date of the Code file a copy of such contract with the Secretary in 

order that the Board of Directors may consider it and take such action in 

re p ct thereof cousistent \Yith the rights and obligations of the parties to 

such contract as such Board shall deem proper. 

E TION 10. None of the provisivns of the Code shall apply to the sale by 

any member of the od to an affiliated company of such member of any 

produ t t a) for re ale as the same product or ( lJ) for its own use (but not for 

u e in the pr duction in wh le or in part of any article sold by it which is 

not a Code produ t, th<1t i , a product as that term is defined in Section 3 

of Article I of the ode) or (c) for use by it in the production of one or 

more ode products to be sold by it; provided., however, that a sale by an 

affiliat d company of any member of the ode (1) of an·y Code product acquired 

by such affiliated company from such member or from one or more aftiliated 

companie of such member or (2) of any Code product produced by uch 

aftiliated company from one or more Code products acquired by it from such 

member or from one or mor affiliated companies of such member shall be 

deem d to be a sale made b.r "uch member of the 'ode. 

SE TION 11. Nothing in the ode contained shall be deemed to apply to or 

affect the ale of any product for direct shipm nt in export trade by any 

member of the ode within th meaning of the term " export trade" as it 

is u ed in the Export Trade Act or, unle s and to the extent that the Board 

of Directors shall oth rwise det rmine, tlte sale of any product by any such 

member for dir ct shipment to the Philippines, Hawaii or Porto Rico or other 

in ular possessions of the United States of America. 

SECTION 12. If and to the extent reque ted by the Administrator, all decisions of, permission and approvals given by and rules and regulations made 

by, the Board of Directors pursuant to any provision of this Schedule E shall 

be reported to him. 
S HEDULE F 

Lr T oF BASING Poi TS 

The places h r inafter in this chedule F li ted are the basing points for 

the r pe tive products named. 

Pitt burgh, Pa. 

Chicago, IlL 

Pittsbur h, Pa. 

lev land, 0. 

hicago, Ill. 

Birmingham, Ala. 

Pittsburgh, Pa. 

Buffalo. N.Y. 

Chicago, Ill. 

Pittsburgh, P a. 

Buffalo, N.Y. 

CleYeland, 0. 

AXLES-ROLLED OR FORGED 

Birmingham, Ala. 

DALE TIEs-- INGLE LO P 

Duluth, Minn. 

Gulf Ports 1 

Pacifi<: oa t Ports • 

DAR&--ALLOY STEEL, HOT ROLLED 

Canton, 0. 

Massillon, 0. 

Bethlehem, Pa. 

BARB--COLD FINISHED, CA.B.BON A D ALLOY 

Chicago, Ill. 

Gary, Ind. 

BlARS--CON<JRETE REI: FORCING, STRAIGHT LENGTHS 

Pittsburgh, Pa. 

Buffalo, N.Y. 

<1 veland, 0. 

Chicago, Ill. 

Gary, Ind. 

Pitt burgh, Pa. 

hicago, Ill. 

Troy, N.Y. 

J er y ity, N.J. 

Dover, .J. 

o ·kaway N.J. 

Philad lphia, Pa. 

olumbia, Pa. 

Lebanon, I a. 

BABS, I GOTS, BLOOM 

Birmingham, Ala. 

Young t wn, 0. 

Gulf Port 

Pacific Coa t Ports 

AND BILLETS-IRON 

Reading, Pa. Danvill , Pa. 

B rwi ·k, a. 

Burnham, Pa. 

reighton, Pa. 

Richmond, Va. 

uyaho a Fall . 0. 

L ui Yill , K). 

T rr Haute, Ind. 

1 Exc pt as otherwise shown In this Schedul F, the ulf Ports are Mobile, Ala. ; N<'w 

rl an a nd Lake harles. La.; and t·ange, Port Arthur, B aumoot, Baytown, Galveston , IIou. ton and Corpus Christi, Tex 2 Except a otb rwise sbown ln this chedule F, tb Pacific oast Ports are San Diego, an l'Nlro (includr>s Wilmington and Los Angel s), Long Beach, • an Fraoci co (includes 

Oakland)., torktoo and Sa ram nto, al.; Portland, Ore.; and Seattle (includes Tacoma) , Everett a nd Bellingham, Wash. 

(33) 
Pittsburgh, Pa. 

Buffalo, N.Y. 

Cleveland, 0. 

Chicago, Ill. 

Gary, Ind. 

Pittsburgh Pa. 

Syracuse, N.Y. 

New York, N.Y. 

Philadelphia, Pa. 

Baltimore, Md. 

34 

BARS-MERCHANT STEEL 

Birmingham, Ala. 

Duluth, 1\linn. 

1\loline, Ill. (Rail Steel only) 

Gulf Ports 

Pacific Coast Ports 

BARS-TOOL STEEL 

Bethlehem, Pa. 

FERRO-MANGANESE AND SPIEGELEISEN 

Gulf Ports: 

1\lobile, Ala. ( Ferro-mangane&e 

only) 

Palmerton, Pa. ( Spiegeleisen only) 

Chicago, Ill. ( Spiegeleisen only) 

New Orleans, La. 

Lorain, 0. 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Chicago, Ill. 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Cleveland, 0. 

Ch:cago, ill. 

GIRDER RAILS AND SPLICE BARS THEREFOR 

Steelton, Pa. 

INGOTS, BLOOMS, BILLETS AND SLABS-ALLOY 

Canton, 0. 

Massillon, 0. 

Bethlehem, Pa. 

INGOTS, BLOOMS, BILLETS AND SLABS-CARBON 

Gary, Ind. 

Birmingham, Ala. 

Duluth, Minn. (Billets only) 

Youngstown, 0. 

LIGHT RAILS-60 LBS. OR LESS PER YARD-AND SPLICE BARS AND ANGLE BARS 

THEREFOR 

Pittsburgh, Pa. 

Chicago, Ill. 

Pittsburgh, Pa. 

Canton, 0 . Shelby, 0. 

Birmingham, Ala. 

MECHANICAL TUBING 

Detroit, Mich. 

Milwaukee, Wis. 

PIG IRON-FOUNDRY, HIGH SILIOON SILVERY, MALLEABLE, OPEN HEARTH BA.SIC, 

BESSEMER AND HIGH SILICON BESSEMER 

Buffalo, N.Y. 

Cle>eland, 0. 

hicago, Ill. 

Birmingham, Ala. 

Youngstown, 0. 

Neville Is., Pa. 

Sharp ville, Pa. 

Erie, Pa. 

Beth! hem, Pa. 

Steelton, Pa. 

Swedeland, Pa. 

Bird boro, Pa. 

Hamilton, 0. 

Jackson, 0. 

Toledo, 0. 

Granite City, Ill. 

Detroit, l\Iich. 

Duluth, Minn. (except Open Hearth 

Basic) 

Provo, Utah 

Everett, Ma s. 

Sparrows Point, 1\:Id. 
Bird boro, Pa. 

t lton, Pa. 

35 

PIG IllON-LOW PliO PH R B 

tandi h, 

JolJn n ity, T nn. 

PIPID-- T NOARD, LINE PIPE .AND OIL COU. TRY TUBOLAR PROD TS 

itt bur h Pa. 

Gary Ind. 

Pitt burgh, Pa. 

hicago Ill. 

Gary, Ind. 

Birmingham, Ala. 

Pittsburgh, Pa. 

hicago, Ill. 

Cle,eland, 0. 

Duluth, Minn. 

Pitt burgh, Pa. 

Buffalo, T.Y. 

Chicago, Ill. 

Birmingham. Ala. 

t. Loui , Mo. 

Kan a City, l\lo. 

Pitt burgh, Pa. 

Buffalo, N.Y. 

Cleveland, 0. 

Chicago, Ill. 

Birmingham, Ala. 

Yougstown, 0. 

Portsmouth, 

W irton, W.Va. 

Pitt. burgh, Pa. 

Buffalo, -.Y. 

l Yeland, 0. 

'hi ·a o, Ill. 

Pitt burgh, Pa. 

ary, Ind. 

Pi t. buro-h, Pa. 

Buffalo, 1".Y. 

hicago, Ill 

Lorain, 

PLdTES 

oa te viii , Pa. 

Sparrow Point. Md. 

Gulf P ort 

Pacifi-:: oa t Ports 

POSTS-FI!: -cE .Ai'\ D ,"I GN 

Birmingham, Ala. 

Gu1f Port. 

Pacific Coa t Ports 

RAILROAD TIE PLATES 

Minnequa olo. 

Weirton, W.Va. 

Portsmouth, 0. 

Steelton, Pa. 

Pacific Coa t Ports 

RAILROAD TR,\CK SPIKES 

~t. Louis, lo. 

Kansas City, Mo. 

:Minnequa, Colo. 

Lebanon, Pa. 

Columbia, Pa. 

Richmond, Va. 

J er ey City, N.J. 

Pacific Coa t Ports 

SHEET BARS 

Youngstown, 0. 

anton, 0. 

Sparrows Point, Md. 

SHEET 

Birmin bam, Ala. 

Pacific oa t Ports 

SKELP 

Youno-. t wn, 0. 

'' t . \"ill , Pa. 

parrows Point, Id. 
Pitt burgh. Pa. 

Buffalo, N.Y. 

Chicago, Ill. 

36 

STEIDL SHEET PILING 

Gulf P orts 

Pacific Coast P orts 

STRIP STEEL-COLD-ROLLED 

Pittsburgh, Pa. ·w orcester, Mass. 

CleYelancl, 0. 

STRIP TEEL-HOT-ROLLED 

Pittsburgh, Pa. Birmingham, Ala. 

Chicago, Ill. 

Pitt ·burgh, Pa. 

Buffalo, N.Y. 

Ch icago, Ill. 

Birmingham, Ala. 

only) 

STRUCTURAL SHAPES 

(standard shapes 

Bethlehem, Pa. 

Gulf Ports 

Pacific Coast P orts 

TIN PLATE, TIN :MILL ELAOK PLATE AND TERNE PL TE 

Pittsburgll, Pa. 

Gary, Ind. 

Pacific Coast Ports 

TUBES-BOILER 

Pittsburgh, Pa. 

TUBEJ ROUNDS 

Pittsbmgll, Pa. 

Buffalo, N.Y. 

Cleveland, 0. 

Chicago, Ill. 

Birmingham, Ala. 

WIIEELS-OAR, ROLLED STEEL 

Pittsburgh, P a . Chicago, Ill. 

WIRE--DR WN, EXCEPT AS IiEREINAFTEJR SPECIFIED 

Pittsburgh, Pa. 

Cleveland, 0. 

Chicago, Ill. 

Birmingham, Ala. 

Ander on, Ind. (JUer chant Wil'e only) 

Dulu th, JUinn. 

Worcester, l\Ia s. Glassport, Pa. (Hot Copper-covered 

Steel only) 

Gulf Ports (l\Ierchant Wire only) : 

Mobile, Ala. 

New Olleans, La. 

Lake Ch arles, La. 

Galveston, Te:x. 

Houston, Tex. Coq)U Christi, Tex. 

P acific Coa t Ports 

WIRE ROOPS-TWISThm OR WELDED 

Pittsburgh, P a . Chicago, Ill. 

\\ II:.E NAILS AN D STAPLES, TWISTIDD BARBLESS WIRE, BARCED WIRE, TWISTED WillE 

FEXCEJ STAYS A D WIRE FE "CING (EXCEPT CRAIN-LINK FENCING) 

Pittsburgh, Pa. 

Cleveland, 0. 

Chicago, Ill. 

Birmingham, Ala. 

Anderson, Ind. 

Duluth, l\Iinn. 

Gulf Ports 

Pacific Coast Ports 
Pittsburgh, Pa. 

Clev land. 0. 

hicag Ill. 

Birmingham, Ala. 

Young town, 0. 

Worce ter, Mass. 

Pittsburgh, Pa. 

leveland, 0. 

Chicago, Ill. 

Pittsburgh, Pa. 

leveland, 0. 

Waukegan. Ill. 

Muncie, Incl. 

37 

WIRE RODS 

Ander on, Ind. 

Gulf Port: 

Galveston, Tex. 

Pacific Coast Port: 

San Franci co, Cal. 

WIRE--SPRI GS 

Worce ter, Mass. 

Pacific Coast Ports 

WIRE-TELEPHONE 

Trenton, N.J. 

Worcester, Mass. 

Sparrows Point, Md. 
SCHEDULE G 

MAXIMUM RATES OF DISCOUNT FOR EARLY PAYMENT AND MAXIMUM PERIODS OF 

FREE CREDIT 

MAXIMUM RATES OF DISCOUNT FOR EARLY PAYMENT 

SECTION. 1. Except as in this Schedule G otherwise provided, in the case of 

products shipped by water from the plant of a member of the Code from or 

through any Atlantic Coast or Gulf port to any Pacific Coa st port, or through 

a Pacifi c Coast port to a place of clelivery in the Sta te of Ca lifornia or the 

State of Oregon or the State of Washingt on, or t o a place of delivery in the 

Canal Zone or to an A1n skan port, tl1e maximum r a tes of discount for ea rly 

payment shall be % of l o/o of the invoiced value of such products, if the invoice 

of such products shall be paid within 30 days from the date of such invoi ·e ; 

in a ll other <.:ases, except as hereinafter provided, lj2 of 1 o/o of such invoiced 

value, if the invoice of sur·h proLlucts shall be paid within 10 clays from the 

date of su ·h invoice ; pr·ovhl cd, hou;ever, in t he la tter cases that any member 

of the Code may a llow . uch discount of 112 of l o/o for payment within 10 days 

on the basis of settlements twice in each month, a s f ollows: 

(a ) On invoices for products cla ted from the 1st to the 15th, inclusive, of any month, such di count may be allowed on payment of such invoices 

on or befor e the 25th of su h month ; 

( b) On invoice for pro(lucts da ted from the 16th to the end of any 

month, such discount may be allO\Yed on payment of such invoices on or 

before tlle 10th of the next following month. 

In the case of p.;:od ucts shipped by wa ter as specified in this Section 1 similar 

to products produced at Pacific n oast plants and sold fo r delivery at any place 

in the Sta tes of Ca lifornia, Oregon and Washington, t he maximum rate of 

discount for easly payment shall be % of l o/o of t he invoiced value of such 

products, if the invoi<.:e thereof shall be pai 1 within 40 days from the date 

of such itwoice. SECTION 2. In tl1e case of Pipe, Boiler Tubes a nd Mechanical Tubing (hereinafter in this Schedule G referred to as Pipe) sold to purchasers other than 

jobbers, the maximum rate of di count for early payment shall be 2% of the 

invoiced va lue of sucll Pipe, if the invoice thereof sha ll be paid within 10 

da ys from the da te of such invoice ; provided, however , tha t any member ot 

the Code may a llow sueh cl1scount of 2% fo r paymen t within 10 days on the 

basis of settleme11t t\vice in each month as her einbefore provided. In the 

ca se of Pipe sold to jobbers, 1he maximum rate of discount for early payment 

sha ll be 2% of the im·oicecl valu of such Pipe, if the invoice thereof shall be 

paid on or befo :·e the 15th day of the month following the Jate thereof; pro-

, howeve1·, that during such period a s the consignment of stocks of Pipe 

shall b contin ued unc1e r the Code, in the case of Pipe sold to jobbers who 

ha ve been acc ust omed to pur ·hasc such Pipe outright under a rrangements by 

which payment of any invoice of such Pipe is made by a non-inter est bearing 

trade acceptance due in not more than 120 days fr om the elate of the shipment 

of such PiDe, a di count of 2% of' tlle inYoiced value of such Pipe may be 

allo\Yecl on the paymen t of ·uch trade acceptance. EcTro~ 3. Except as in this Section 3 otherwise provided, in the case of 

Mer chant Wire products and Fence a nd Sign Posts, the maximum rate ot 

discount fo r early payments shall be 2o/o of the invoiced value thereof, it 

the invoice of such products shall be paid within 10 days from the date of 

such in voice; pr ovided, h011:ever, tha t a ny member of the Code may allow such 

discoun t of 2% for paymen t wi1 bin 10 days on the ba sis of settlements twiee 

in each month as provided in Section 1 of this Schedule G; and prov ided, 

tu.rthe1·, that, in the case of such produc ts shipped by water as specified in 

Section 1 of this Schedule G, any member of the Code may allow such eli count 

of 2%, if the invoice of ·such products shall be pa id within 30 days from the 

(38) 
39 

date of such invoice, r, in th en of any uch products so hipped similar 

to products produced at Pa ifi oa plant and :old for delivery at any 

place in th tate of alifornia r cr n and \ a ·llingt n, if the invoice thereof 

shall b aid within 4 day fr m th dat f u ll inv i e. In the ca e of 

Woven Wir F ncing in lot of " r d or mor and of F n ·e and Sign Po ts 

in 1 t of 50 po t or m r wbi h hall b sold to pur ·ha ers f r resale, the 

maximum rates of di count for early 11ayment hall be as f01lows: 

SP&I ' G TERMS 

For hipmcnts on and after December l~t and on or before the following 

April 1 t: 

4% eli c unt for ca h on or before the following January lOth; 

3 z% eli ount for ca h on or before the following February lOth; 

3% di c unt for ca h on or before the following March lOth; 

2¥2% di count for ca h on or before the following April lOth; and 

2% di count for ca h on or before the following May lOth. 

F r hipments after April 1st and on or before May 31st: 

2o/o discount, if the invoice hall be paid within 10 day-s from the date of 

such in voice. 

AUTUMN TERMS 

For hipments on and after June 1st and on or before the following October 

1st: 

4% discount for ca h on or before the following July lOth; 3~% di count for cash on or before the following August lOth; 

3% di count for cash on or before the following September lOth; 

2¥2% di count for ca h on or before the following October lOth ; and 

2% di count for cash on or before the following November lOth. 

For "'hipments after October 1st and on or before November 30th: 

2o/o discount, if the invoice shall be paid within 10 days from the date of 

uch invoice. 

ECTIOc 4. Any discount allowed in accordance with the foregoing provision of this Schedule G in re pect of any product shall apply only to the invoiced value of such product after excluding any and all amounts added on 

account of freight or other transportation charges to the base price for such 

product in determining the delivered price thereof. 

MA~""IMUM PEJ&IODS OF FREE OREIDIT 

SECTION 5. Except as hereinafter in this Schedule G otherwise provided, in 

the ca e of products shipped by water from the plant of any memb r of the 

Code from or through any Atlantic Coast or Gulf port to any Pacific Coa t 

port, or through a Pacific Coast port to a place of deli very in the tate of 

'alifornia or the State of Oregon or the State of Washington, or to a place 

of delivery in the Canal Zone or to an Alaskan port, the maximum period of 

free cr dit shall be 50 days from the date of the invoice of such product ; 

in all other ca e , except as hereinafter provided, 30 days from the date of 

such invoice; '[Yrovided, Mwevlff, in the latter case , that any member of the 

o 1e which shall make and invoice a series of shipm nts of products to any 

pur ·ha r during any calendar month may allow payment without intere t 

of the invoices of uch products on or b fore the 20th of the next following 

month. In the ca e of products shipped by water a pecified in tbi S ction 5 

similar to product produced at Pacific oast plant and sold for d livery at 

any place in the States of alifornia, Or gon and Washington, the maximum 

p riod of free credit shall be 60 days from the clat of the invoice of such 

products. 

ECTIO 6. In the ca. e of Pipe old to jobber , the maximum period of free 

cr dit hall be GO day from t11e date of the invoi c of uch Pipe; pr·ovidcd, 

h01v er, that in the ca of Pi ld to a jobber wh ba been ac ·u tomed to 

pur ·ha. uch Pipe utriuht under arrang ment with any memb r of th d 

by whi ·h a line of cr dit or 1 dg r d bit balanc i. allowed by uch m rob r t . uch jobb r in ·p ci1i d amount , with ut inter t, if the invoiced value f the 

Pip pun ha~ d in x of th amount of the r dit or ledg r d bit balance 

allowed in a h case ball be paid on r gular t rm for such Pipe, th n such 
40 

member of the Code may continue such alTangements during such period as 

the consignment of tocks of P ipe shall be continued under the Code. 

SEOTION 7. Except as in this ection 7 otherwise provided, in the case of 

Merchant Wire products and Fence and Sign Posts, the maximum period of 

free credit shall be 60 days from the date of the invoice thereof. In the case 

of Woven Wire F encing in lots of 500 rods or more and of Fence and Sign Posts 

in lots of 500 posts or more which shall be sold to purchasers for resale, on 

shipments made on and after December 1st and on or before the following 

April 1st the maximum period of free credit shall end on the following May 

C31st; on shipments made after April 1st and on or before the following May 31st 

the maximum period of free credit shall end 60 days after the date of the invoice of such pt·oducts ; on shipments made on and after June 1st and on or 

before the following October 1st the maximum period of free credit shall end 

on the following November 30th; and on shipments m~de after October 1st and 

on or before t he following November 30th the maximum period of free credit 

shall end 60 days after the date of the invoice of such products. 

SEcTION 8. For all purposes of this Schedule G a member of the Code may 

treat the da te of the mailing of any check or other order for the payment of 

money sent by mail in payment of any invoice of products sold by such member 

as the date of such payment. 

SECTION 9. Nothing in this Schedule G contained, however, shaH be deemed 

to apply to any sale or contract for the sale of any product to the Government 

of the United States of America or to any agency thereof in any case in which 

such Government or ageucy shall pursuant t~ law impose tei·ms of payment 

other than those prescribed in this Schedule G; provided, however, that in any 

such case none of the members of the Code shall allow to such Government 

or any agency thereof terms of payment more favorable than those which shall 

be prescribed by such Government or agency pursuant to law. 
SCIIEDULE H 

L IST OF UNFAm Pll.A.cTICES 

F r all purp e of the Cod 

unfair practi 

the following de cribed acts shall constitute 

A. Makino- or promi ing to any purcha er or prospective purchaser of any 

pr duct, or to any officer, employ e, agent or representative of any u h purcha er or pro p tiYe purchaser, any bribe, gratuity, gift or other payment or 

r muneration, directly or indirectly. 

B. Pr curino-, other"i e than with the consent of any member of the Code, 

any information concerning the busine of such member which is properly 

re arded by it as a trade secret or confidential within its organization, other 

than information relating to a violation of any pro>ision of the Code . . Imitatioa- or simulating any design, style, mark or brand used by any 

other member of the ode. 

D. U ing or substituting any material superior in quality to that pecified 

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. 

E. Cancelling in whole or in part, or permitting the cane llation in whole or 

in part of, any contract of sale of any product, except for a fair con ideration, 

or paying or allowing to any purchaser in connection with the sale of any 

product any rebate, commis ion, credit, eli count, adjustment or similar conces ion other than a is permitted by the Code and specified in the contract 

f sale. 

F. Disseminating, publi hing or circulating any false or mis;leacling information relati\·e to any product or price for any product of any member of the 

Oode, or the credit standing or ability of any m mber ther of to perform any 

work or manufacture or produce any product, or to the conditions of employment among the employees of any member thereof. 

G. Inducing or attempting to induce by any means any party to a contract 

with a member of the Code to violate u ·h contract. 

H. Aiding or abetting any person, firm, association or corporation in any 

unfair practice. 

I. Making or giving to any purchaser of any product any o-uaranty or protection in any form again t decline in the market price of such product. 

J. Stating in the invoice of any product as tb date thereof a date later 

than the date of the shipment of such product, or includina- in any invoice any 

produ t hipp d on a date earlier than the date of ~u b invoice. 

K. Making any sale or contract of sale of any product under any de ription 

wbi ·b does n t fully de cribe such product in term customarily used in the 

Industry. 

L. Rendering to any purcba er of any product in or in onnection with the , 1 of su ·b product any ervice, unless fair compensation for such service 

ball be p id by such purchaser. 

U. Agr ein or promi ing, as a condition of, or in con id ration for, receiving an or ler for any product or the making of the pur ·b se of any product 

or r eiving other advanta e, to file a new li t of ba e pric in which a new 

ba p1ice for uch product or new base prices for any tber product shall 

b bown. 

ellino- a crap any produ t for any u e other than for remelting puror ' hich may r a onably b con id r d as having a alu other than for 

r m lting purp 

in r ·ion r c r iv mean to indue a m ml er of the de to 

withdraw or change a base p1ice for an prouuct at any ba ing point. 

(41) 
42 

P. Any violation of any other provision of the Code, whether or not therein 

expressed to be such, or using or employing any practice not hereinabove in 

this Schedule H described which the Board of Directors by the affirmative 

vote of three-fourths of the whole Board shall have declared to be a practice 

that would tend to defeat the policy of Title I of the National Industrial 

Recovery Act and, therefore, an unfair practice, and of which determination 

by such Board the Secretary shall have given notice to the members of the 

Code and to the President. 

0 
Approved Code No. 11-Amendment No. 1 Registry No. 1116-02 

ERRATA SHEET 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

IRON AND STEEL INDUSTRY 

As Approved on May 30, 1934 

P ao-e two (2) executive order, tenth line, the word 'actual " hould 

be ' natural. 

Pa a- ix ( 6) letter to the President, last line, 8;000,000,000 " 

hould be 8.000 000. ' 

GUSJl•----637-- 3~----3 4 

U . S . GOVERNMENT PRINTIN G OFFICE: 19 H 




UNIV ER SITY OF FLO RIDA 

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