Approved Code No. 153 Registry No. 1335-1-03 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

VALVE AND FITTINGS 

MANUFACTURING INDUSTRY 

AS APPROVED ON DECEMBER 15, 1933 

BY 

PRESIDENT ROOSEVELT 

WE DO OUR PART 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

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

V 
This publication is for sale by the Superintendent of Documents, GoYernment 

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

anJ Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

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

Charleston, S.O.: Chamber of Commerce Building. 

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

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex. : Chamber of Commer ce Building. 

Detroit, Mich.: 2213 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Av nue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 F ederal Building. 

Memphis, Tenn. : 229 F ederal Building. 

l\linneapolis, Minn.: 213 Federal Building. 

New Orleans, La.: Room 225-A, Customhouse. 

New York, N.Y,: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa.: 933 Commercial Trust Building. 

Pittsburgh, Pa. : Chamber of Commerce Buildiug. 

Portland, Oreg.: 215 Ne,,· Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Building. I 

(II) 
Approved Code No. 153 

CODE OF FAIR COMPETITION 

FOR THE 

VALVE AND FITTINGS MANUFACTURING 

INDUSTRY 

As Approved on December 15, 1933 

BY 

PRESIDENT ROOSEVELT 

Executive Order 

An application having been duly made, pursuant to and in full 

compliance with the provisions of title I of the National Industrial 

Recovery Act, approved June 16, 1933, for my approval of a Code 

of Fair Competition for the Valve and Fittings Manufacturing Industry, and hearings having been held thereon and the Administrator having rendered his report containing an analysis of the said 

code of fair competition together with his recomn1endations and 

findings with respect thereto, and the Administrator having found 

that the said code of fair competition complies in all respects with 

the pertinent provisions of title I of said act and that the requirements of clauses (1) and (2) of subsection (a) of section 3 of the 

said act have been met: 

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

United States, pursuant to the authority vested in me by title I of 

the National Industrial Recovery Act, approved June 16, 1933, and 

otherwise, do adopt and approve the report and recommendations, 

and findings of the Administrator and do order that the said code 

of fair competition be and it is hereby approved, on condition that 

the filed effective price lists, as shown in article IV, section ( 1), 

paragraph ( 4), shall be open to the inspection of the trade factors 

concerned. 

Approval recommended: 

HUGH s. JOHNSON, 

Administrator. 

THE WHITE HousE, 

December 15, 1933. 

FRANirLIN D. ROOSEVELT. 

(29) 
The PRESIDENT, 

DECEMBER 4, 1933. 

The lV hite House. 

Srn: This is a · report on the Code 0£ Fair Competition for the 

Valve and Fittings Manufacturing Industry, the hearing having 

been held in Washington on the 18th day of September 1933 in 

accordance with the provisions of the National Industrial Recovery 

Act. 

PROVISIONS AS TO HOURS AND WAGES 

Employment is limited to 8 hours per day, or 40 hours per week, 

with the exception of those employees engaged on emergency, maintenance and/ or repair work or in cases where reduction of hours 0£ 

highly skilled workers would unavoidably reduce or delay employment of others or cause damage to equipment or products. Exemptions are made for executives and employees in a managerial, advisory or technical capacity receiving more than $35.00 per week; and 

~-atchmen; provided, that watchmen shall not work more than 6 days 

nor more than 56 hours per week. 

A minimum rate of 40 cents I?er hour is established with exception 

of 32 cents per hour minimum 1n the following states: New Mexico, 

Texas, Arkansas, Tennessee, North Carolina, South Carolina, 

Georgia, Florida, Alabama, Mississippi, and Louisiana. 

Females employed on operations not requiring technically skilled 

men may be paid not less than 90% of the minimum rate but not 

less than 30 cents per hour. Inexperienced employees between the 

ages of 16 and 21 years, and superannuated employees may receive 

not less than 80% of the minimum rates; provided, that in total they 

do not exceed 5% of the total number of factory mechanical workers 

employed by any employer. 

The minimum weekly salary of $15.00 per week is established in 

cities of over 500,000 population; $14.50 per week in cities of over 

250,000 and not exceeding 500,000 population; and $14.00 per week 

in any city of less than 250,000 population, except office boys or girls 

may be paid not less than 80% 0£ such minimum salary. 

Complete copies of the wage and hour provisions 0£ this code 

shall be posted in conspicuous places by each employer. 

ECONOMIC EFFECT OF THE CODE 

In June 1933 employment in this industry had reached the low 

level of 16,000 employees, but since operating under the President's 

Reemployment Agreement, over 19,000 are now employed. Pay rolls 

haYe correspondingly increased. 

The indu try is represented by seven eparate and di tinct group 

brought together under one industrial code. The coordinating of 

(30) 
31 

these units must inevitably result in eliminating many of the prac• 

tices that have been harmful to the industry in the past. 

The Administrator finds that: 

(a) The Code as recommended complies in all respects with the 

pertinent provisions of Title I of the Act, including, without limita~ 

tion, subsection (a) of Section 7 and subsection (b) of Section 10 

thereof; and that 

(b) The applicant group imposes no ineq1i.itable restrictions on 

admission to membership therein and is truly representative of the 

Valve and Fittings Manufacturing Industry; and that 

( c) The Code as recommended is not designed to promote monopolies or to oppress or eliminate small enterprises and will not operate 

to discriminate against them, and will tend to e:ff ectuate the policy of 

Title I of the National Industrial Recovery Act. 

It is recommended, therefore, that this Code be approved on condition that the filed price lists as shown in Article IV, Section ( 1) 

paragraph ( 4), shall be open to the inspection of the Trade Factors 

concerned. 

Respectfully, 

HUGH S. JOHNSON, 

Administrator. 
., 

CODE OF FAIR COMPETITION 

FOR THE 

VALVE AND FITTINGS MANUFACTURING INDUSTRY 

ARTICLE I-PURPOSE 

To effectuate the policies of Title I of the National Industrial Recovery Act, the following provisions are submitted as a Code of Fair 

Competition for the Valve and Fittings Manufacturing Industry, and 

upon approval of the President shall be the standard of fair competition for this Industry and shall be binding upon every member 

thereof. 

ARTICLE II-DEFINITIONS 

President, Act, Adniinistrator.-The terms "President", "Act", 

and "Administrator", as used herein, shall mean, respectively, the 

President of the United States, Title I of the National Industrial 

Recovery Act, and the Administrator of said Title I of said Act. 

l nstitute.-The term " Institute", as used herein, shall mean the 

Valve and Fittings Institute. 

Directors.-The term " Director", as used herein, shall mean the 

Boards of Directors of the Valve Division and of the Fittings 

Division of the Institute acting jointly. 

Products.-The term "Valves " and "Fittings", as used herein, 

include all designs of valves, pipe-fittings, fire hydrants, and accessories, of all classes of ferrous and nonferrous materials, for use 

in the handling of all classes of fluids and gases, such as steam, water, 

oil, gas, air, etc.; provided, however, that as used in this Code, these 

terms shall not apply to-

( a) Valves and/or fittings, made by a producer of products within 

another Industry as a -part thereof or of a separate assembly peculiar 

to such other Industry, including parts therefor and/or for servicing 

such articles and not produced and/ or sold as separate valves or 

fitting in the general valve or fittings market; 

(b) Plated or plain brass plumbing fittings, shower fittings, lavatory fittings, sink fittings, drinking-fountain fittings, and other 

finished, plated, or plain brass fittings for use in connection with 

plumbing fixtures; 

( c) Such gas cocks as are made and sold for use on gas ranges, 

gas water heaters, gas space heaters, gas furnaces, gas conversion 

burner , gas incinerator , gas refrigerators, or any other household 

appliances ; 

( d) Cast-iron fittings having hub, bell, or spigot connectin9 ends 

for attachment to ca t-iron "soil pipe" and/or "pre sure pipe 'having similar connecting ends; 

(e) The products of the Cast Iron Pressure Pipe Industry, provided, however, the provisions of Article IV and no other of this 

(32) 
33 

Code shall apply to those members of the Cast Iron Pressure Pipe 

Industry who normally quote or sell cast-iron flanged fittings and 

flanges of diameters sixteen inches or less on a list and discount 

basis, the said provisions of Article IV hereinabove to apply to, and 

only to, cast-iron flanged fittings and flanges of diameters sixteen 

inches or less in instances where they are quoted or sold on a list 

and discount basis by such member of the Cast Iron Pressure Pipe 

Industry; 

(f) patented lubricated valves and/ or cocks; 

(g) pipe nipples as defined in the Code of Fair Competition for the 

Pipe-Nipple :Manufacturing Industry, duly approved by the President on November 27, 1933. 

Mernb ers of the lndustry.-The term" members of the Industry", 

as used herein, shall mean any producer who manufactures, wholly 

or in part, any of the products of the Industry, as herein defined, 

for sale; and any Pipe-Fabricator who assembles any of said products with pipe fabricated by him, for sale. 

Members of code.-The term " members of Code ", as used herein, 

shall mean any member of the Industry who shall expressly signify 

assent to this Code. 

Markets .-The term " markets ", as used herein, shall mean 

SECTION 1. No provision of this Code relating to prices or terms of 

selling, shipping or marketing, shall apply to export markets. Export markets, as used herein, shall include markets in any territories or possessions of the United States not on the Continent of 

North America, and the Panama Canal Zone except when the United 

States Government is the purchaser. 

SEc. 2. Subject to the approval of the Code Authority, the exceptions established by the foregoing section shall apply also to sales 

or shipments of products of this Industry actually used in manufacture or assembly for export markets. 

"Primmry" M arket.-A primary market is that in which a Distributor purchases from a member of the Industry. 

"Secondary" M arket.-A secondary market is that which may be 

served by a Distributor. 

Trade Factors.-The term "trade factors", as used herein, shall 

mean: 

Di,stribwtor.-One whose principal business is the purchase and 

resale, to consumers or other trade outlets, of products of the Industry, and who maintains a stock of products in sufficient quantity to 

render normal service to customers. 

Pipe fabricator.-One whose principal business is the threading, 

flanging, bending, or otherwise fabricating of pipe to specifications 

and dimensions, and who also may purchase products of the Industry 

for assembly therewith, for resale to contractors or consumers. 

Pipe contractor.-One whose principal business is the installation 

of piping systems not fabricated by himself or fabricated wholly 

or in part by himself. 

General contractor.-One whose principal business is the construction and equipment of a plant for a customer and who sublets the 

purchase, fabrication, and installation of piping to a pipe contractor. 
34 

Original equip1nent marnufacturer.-One whose principal business 

is the manufacture o:f devices or equipment in connection with which 

products o:f the Industry are used as parts or accessories. 

Oonsume1·.-0ne who purchases products of the Industry for his 

own use and not for resale. 

Employee.-The term" employee", as used herein, shall mean any 

person engaged in any phase of the Industry in any capacity in the 

nature of employee, irre pective of the method of payment of his 

compen ation. 

E1nployer.-The term" employer", as used herein, shall mean anyone who engages the services of employees. 

Effective date.-The term "effective date", as used herein, shall 

mean five ( 5) days a:fter this Code shall have been approved by 

the President of the United States. 

ARTICLE III-HoURs AND vv AGES 

SECTION 1. All members o:f the Industry shall be subject to the 

provisions of the Act set forth in subsection (a) of Section 7, Title 

I , thereof, as follows: 

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

collectively through representatives of their own choosing, and shall 

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

labor, or their agents, in the designation of such representatives or in 

self-organization, or in other concerted activities for the purpose of 

collective bargaining or other mutual aid or protection; 

(2) That no employee and no one seeking employment shall be 

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

to refrain from joining, organizing, or assisting a labor organization 

of his own choosing; and 

(3) That employers shall comply with the maximum hours of 

labor, minimum rates of pay, and other conditions of employment. 

approved or prescribed by the President. 

SEc. 2. (1) No employer shall employ (a) any person under the 

age of sixteen (16) years, or (b) any person under the age of eighteen 

(18) years in any hazardous occupation; provided, however, that 

nothing contained in this Article III shall exempt any employer 

from complying with employment regulations duly enacted by the 

State i,n which he is engaged as an employer subject to such 

regulations. 

(2) Female employees performing substantially the same work as 

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

SEc. 3. ( 1) No employer shall pay any factory or mechanical 

worker less than thirty-two (32) cents per hour in the S~ates of 

New Mexico, Texas, Arkansas, Tennessee, North Carolina, South 

Carolina, Georgia, Florida, Alabama, Mississippi, and Louisiana; 

nor less than forty ( 40) cents per hour in any other part of the 

United States, or any territory or possessions thereof, on the Continent of North America; provided, however, that an employer may 

employ (a) female employees, for such operations as do not require 

the strength and technical skill of men, at not less than 90 % of the 

minimum rates fixed in this paragraph, except that in no ca e shall 

the rate be less than thirty (30) cents per hour; subject, however, 
35 

to the provisions of Section 2, paragraph 2 of this Article; and (b) 

inexperienced employee 0£ the cla es mentioned in this paragraph, 

between the ages of sixteen (16) and twenty-one (21) years at a 

r ate of not less than eighty (80) percent of the minim,um rates fixed 

in this paragraph· provi led, further, that the total number of those 

less than twenty-one year of age so compensated by any employer 

shall not exceed fi ,e ( 5) percent of the total number of all those 

employed as factory and mechanical workers. 

(2) The rate of compensation established in foregoing Paragraph 

1 hall be guaranteed minimum rates regardle s of whether the em- ployee is compensated on the basis of a time rate, piecework, or 

otherwise; and any factory or mechanical worker who shall be required to work for more than the maximum hours set forth in 

Paragraph 1 of Section 4 hereof, shall be compensated for the overtime worked at the rate of time and one half of his or her regular 

rate. 

(3) No employer shall pay any employee not covered under Paragraph 1 of this Section 3, including any accounting, clerical, office, 

service, or sales employee within the United States or any territory 

or possessions thereof on the Continent of North America, less than 

at the rate of $15.00 per week in any city of over 500,000 population, 

or in the immediate trade area of such city; nor less than at the rate 

of $14.50 per week in any city between 250,000 and 500,000 population, or in the immediate trade area of such city; nor le s than at 

the rate of $14.00 per week in any city or trade area of le than 

250,000 population, whether these minin1tnn rates of compensation 

are calculated on an hourly, weekly, monthly, piecework, or any 

other basis; provided, however, that an employer may employ office 

boys or girls at not less than eighty ( 80) percent of the minimum 

rates fixed in this paragraph; provided further, that the total number of office boys and girls o compensated by any employer shall 

not exceed five percent of the total number of all employees covered 

by thi paragraph. 

( 4) The hourly wage rate or salary of all employee receiving 

more than the minimum rate or salary provided in this Section 3 

shall be equitably adjusted within five ( 5) days from that on which 

the President appro-,es this Code, if such adjustments shall not have 

been previou ly made. Report of such adjustments, whether made 

prior to or subsequent to the approval of this Code, hall be made to 

the Code Authority within 90 clays from the date of approval of this 

Code. 

( 5) To permit the employment of workers who are phy ically 

handicapped and to avoid their becoming a burden to the State, uch 

employees shall bB paid not les than eighty ( 80) percent of the 

minimum rates, provided however, that such employees together with 

such employees as mentioned in Paragraph 1 (b) of Section 3 of this 

Article III shall not exceed in number fi,e ( 5) percent of the total 

number of workers employed by a member of the Industry, and that 

each employer shall report monthly to the Code Authority the number and the names of such employees. SEc. 4. (1) No employer shall employ any factory or mechanical 

worker for more than forty ( 40) hours in any one week and no such 

26618°-244-153-33-2 
36 

employee shall be employed for more than eight (8) hours in any 

one day. 

(2) No employer shall employ any other employee including any 

accounting, clerical, office, service, or sales employee ( except outside 

salesmen) for more than forty ( 40) hours in any one week. 

(3) The maximum hours fixed in paragraphs 1 and 2 of this 

section 4 shalJ .not apply to (a) employees on emergency maintenance 

and/or repair work, or to cases where reduction of hours of highly 

skilled workers would unavoidably reduce or delay production or 

employinent of others or cause damage to equipment or products; 

(b) watchmen, provided, however, that watchmen shall work not 

more than six days in each seven-day period nor more than fiftysix ( 56) hours in any one week; nor to ( c) executives and employees 

in a managerial, supervisory, or technical capacity receiving more 

than $35.00 per week. 

( 4) The maximum hours herein above provided mark the total 

number of hours during which any employee may be employed 

whether by one or more employers; provided however, that i:f any 

employee should work :for more than one employer :for an aggregate period in excess o:f such m3:ximum hours without the knowledge 

or connivance o:f any one o:f such employers, such employer shall 

not be deemed to have violated this paragraph. 

( 5) No employee shall be classified in any one of the foregoing 

exempted classes unless he performs functions identical with those 

pe.rformed by employees thus classified on June 16, 1933. 

( 6) Each employer shall post complete copies of this Article III 

in conspicuous places in his establishment or establishments accessible 

to his employees. 

ARTICLE IV-DISTRIBUTION 

SECTION 1. Published Price Policy.-(1) Each member o:f the Industry shall publish the prices current on those of his products which 

are normally available to the trade. Within five days after receipt 

of notice of the effective date o:f this Code, he shall file, with the 

Code Authority, his prices to each of the Trade Factors defined 

in Article II, provided that the lowest prices that may be filed shall 

be the prices at which he shall sell his products to his Distributors. 

In all practicable instances, a member of the Industry shall employ 

the pricing system of "list-price subject to discount or plus percentage", and where this system is found impracticable, the member 

of the Industry shall file his equivalent net prices with the Code 

Authority. 

(2) Each member of the Industry shall also file with the Code 

Authority a complete statement of his terms and other conditions of 

sale. 

( 3) Thereafter, revised prices and/ or revised terms and other 

conditions of sale shall likewise be filed with the Code Authority. I:f 

the revised prices o:f any such member are lower than, or i:f the 

revised terms and other conditions of sale of any such member are 

more :favorable to the purchaser than the prices and/or terms and 

other conditions of sale of such member then on file with the Code 

Authority, the revised prices and/or revised terms and other conditions o:f sale shall not become effective until 10 days after the 
37 

date of the filing thereof; otherwise the same shall become effective 

on such date as the member of the Industry filing the same shall 

designate. Any other members of the Industry may, if they so 

desire, file revised prices and/or revised terms and other conditions 

of sale which may become effective on such date as the member of 

the Industry filing the same shall designate, which date shall not be 

earlier than the date on which the revised prices and/or revised 

terms and other conditions of ale first filed shall become effective, if the revi eel prices of such other members are not lower th an, or 

if the revised terms and other conditions of sale are not more favorable to the purchaser than the revised prices and/ or revis cl terms 

and other conditions of sale first filed; otherwise the revised prices 

and/ or revised terms and other conditions of sale of such other 

members shall not become effective until 10 days after the date of the 

filing thereof. No prices filed under the provisions of this section 

shall be retroactive. Any member of the Industry may, upon request 

and upon payment of the r easonable cost thereof by such member, 

obtain from the Code Authority copies of any such prices and/or 

terms and other conditions of sale so filed. 

( 4) All frices and/or terms and other conditions of sale filed at 

the office o the Code Authority as in this Section 1 provided, shall 

• be open to the inspection of members of the Industry. 

( 5) No member of the Industry shall sell or offer to sell, directly 

or indirectly b:v any means whatsoever to any Trade-Factors, any 

product of the Industry at a price or on more favorable terms and/or 

other condjtions o:f sale other than those which he has filed with 

the Code Authority and which have b 0 come effective. 

(6) All prices and/or terms and other conditions of sale and revisions thereof shall become effective not later than ten ( 10) days 

after filing. 

SEc. 2. Market Stucly.-The Code Authority may undertake the 

study of recommendations to b 0 submitted to the Administrator for 

cons1deration relative to gra lations of factory-shipment price rates 

for the various Trade-Factors which study shall have clue regard 

to the :functions performe l and services rendered by the TradeFactors and to differences in the cost thereof. · 

SEc. 3. Gradation of product values.-(1) Under a plan subject 

to the approval of the Administrator, the Institute shall formulate 

and e tablish indexes of general relation values of sizes and/or 

types and weights of l"arious classes or kinds o:f products of the 

I ndustry, and when any such index has been so established each 

member of the Industry -n-ho is a Producer o:f the products for which 

each such index has b 0 en established, shall publish and employ List 

Prices reflecting the index value with the least practicable delay. 

(2) If any action taken by the Institute under this Section 3 shall 

work any hardship on any member of the Industry who is the producer of a product coYered by any such index, such member of the 

Indu try may appear to the Administrator for r elief. 

SEc. 4. Quotation policy.-(1) Each quotation shall define terms 

and conditions of ale. 

(2) E ach quotation shall be a firm proposal . ubject to revision only 

to correct error ; or, when permissible under conditions specified 

therein, to adjust to reflect changes in published prices. 
38 

(3) No member of the Industry shall quote a lump-sum price on 

any schedule of products of this Indu try which does not itemize, or 

which is lower than, the sum of such member's regular unit selling 

prices of the articles comprising the schedule; and, when quoting a 

combined bid including purchased material , no member of the Industry hall quote prices for uch purchased material less than the 

published price of the manufacturer thereof. 

From time to time the Code Authority, subject to the approval of 

the Administrator, may classify articles that are to be treated as 

units and/ or groups of units within the meaning of this paragraph. 

(4) No member of the Indu try shall be permitted to revise any 

quotation on products of this Industry merely for the purpose of 

" matching " or underquoting prices previously quoted by a 

competitor. 

(5) New schedules of prices shall be applicable to all noncontract 

business placed beginning as of the effective date thereof, the date 

of the placing of business by mail to be determined by the postmark. 

(6) o member of the Industry shall give advance notice to the 

trade of an intention to file revised prices on his products. (7) Jo member of the Industry shall predate any quotation nor 

accept any predated order or other contract. SEC. 5. Credit policy.- Credit privileges shall be restricted to those • 

whose moral and financial in_tegrity may be reasonably well established. The purpose of this broad rule is to make it incumbent upon 

each member of the Industry to exercise due diligence and sound 

judgment in earnest effort to avoid action relating to the granting 

of credit privileges which might introduce instability into the market. 

SEc. 6. T erms of pay1nent.-(l) Invoices shall bear the date on 

which deliver_ is made to the carrier at the point of shipment. Postdating of invoices is forbidden. 

(a) For purpo es of simplification the following terms are employed in succeeding paragraphs of this Section 6, viz: "Pacific 

Zone" comprising Alaska and the States of Arizona, California, 

Oregon, and ,v a hington; "Eastern Zone" comprising the District 

of Columbia and the States not included in the Pacific Zone. 

(2) The net due date shall not be later than the last day of the 

fir t month following elate of invoice; except that the net due date 

may be the last day of the econd month following date of an invoice 

covering shipment (a) to the Pacific Zone from a member of the 

Industry's plant situated in the Eastern Zone, or (b) to the Ea tern 

Zone from a member of the Indu try's plant situated in the Pacific 

Zone. Account not paid within the allowable net period hall, so 

far as practicable for each one of the members of the Inclu try be 

made to bear interest from the net due date at an annual rate of ix 

( 6) percent unle s the legal rate in the State in which the debtor 

is situated is less than six (6) percent, in whi h event such legal rate 

shall apply. 

(3) No men1ber of the Industry shall give any cash di count at a 

rate exceeding two percent (2% ), and the period in which it may be 

deducted hall not exceed ten (10) day from date of invoice with the 

following exceptions : 

A. That the period may be extended to thirty (30) day from 

date of invoice covering shipment (a) to the Pacific Zone from a 
39 

~ember of the Industry's plant situated in the Eastern Zone, or (b) 

vice versa. 

B. That to purchasers whose requirements necessitate frequent 

billings, the cash discount may be made deductible from remittance 

covering all charges of the first half-month period (i.e., the 1st 

to/and 15th) and from remittance covering all charges of the second 

half-month period (i.e., 16th to/and last day of the month) as 

follows: 

(a) For the first half-month period, when both parties are in the 

Eastern Zone or when both parties are in the Pacific Zone-on the 

25th instant; and when the parties are not in the same zone, on the 

25th proximo. 

(b) For the second half-month period, wh€n both parties are in 

the Eastern Zone, or when both parties are in the Pacific Zone, on 

the 10th proximo; and when the parties are not in the same Zoneon the 10th of the second month following. 

( 4 J In no instance shall a cash discount be allowed on transactions 

financed through the medium of a trade acceptance or a note. 

( 5) The agreement to accept bonds or other securities involved in 

the financing of a project in part or in whole payment for products 

of the Industry is forbidden. 

SEc. 7. Terms of shipm.ent.-(1) Each member of the Industry 

shall provide that the purchaser shall assume full responsibility for 

losses or damages created by conditions beyond the control of the 

member of the Industry. In instances where it is required that 

transportation charges be prepaid by the seller, the member of the 

Industry shall provide that such prepayment shall not relieve the 

purchaser from any portion of the purchaser's responsibility as 

therein provided. The member of the Industry, however, shall pro- vide all reasonable assistance to the purchaser in the preparation of 

justifiable claims. 

(2) E ach member of the Industry shall provide that he shall not 

be responsible for delays caused by strikes, fires, or other similar 

causes beyond his control, nor for any delays caused by changes in 

specifications. 

(3) The Code Authority may study the problem of freight allowance and present recommendations to the Administrator with respect 

thereto. 

(4) From time to time the Code Authority may approve standard 

practices for packing and shipping "American Standard" pipe fittings, and upon such approval each member of the Industry shall 

make an extra charge sufficient to defray the extra cost to such member for any special pa.eking and/ or shipping requirements of the 

Purchaser. 

SEc. 8. Indeterminate speci,fications.-(1) No member of the Industry shall a.ccept any order for or otherwise commit himself to 

deliver products on any other basis than the basis of price subject 

to change upon the filing of revised schedules by such member, except 

in the case of : 

(a) Fully specified orders the execution of which has been delayed 

or which may be delayed through no fault of the purchaser; or 

(b) Orders for products for use in a specific project as provided 

in Section 9, paragraph (1) of this Article IV; or 
40 

( c) Orders by original equipment manufacturers for products to 

be used as parts or accessories, for the devices or equipment 

manufactured and sold by such manufacturers. 

SEc. 9. Future delivery co1nm,itments.-(l) A member of the Industry may commit himself to furnish products of the Industry over 

an extended period, at fixed prices, for use in the construction of a 

part~cular: project, ~f the character of the proj ect is clearly defined 

and 1~en~1fied_, ~nd if the volu~1e of p~o~ucts to be delivered is specified w1th1n m1n1mum and maxunum limits defined in terms of value 

and/ or quantity on the basis of anticipated requirements. (2) Proposals to furnish products under a prospective contract 

for use in the construction of a given project shall specify a definite 

acceptance date, not later than which the prospective purchaser must 

formally accept the same in order to obtain advantage of the prices 

quoted therein; except, however, that in the event the member of the 

Industry advances his prices prior to the previously specified acceptance date, he may change the u.cceptance date to not later than fifteen 

(15) days subsequent to the effective date of his new price~ 

(3) When a member of the Industry has committed himself under 

such contract, he shall immediately register the fact with the Code 

Authority, giving it (a) date and number of the contract; (b) name 

and address and character of the project; ( c) name and address 

of the contractor who is to perform the work; ( d) name and address 

of the charges; ( e) total value and/ or quantity, size, and kind of 

products he has contracted to furnish; and ( f) discounts and/or 

net prices at which the contract was closed. 

( 4) The member of the Industry shall identify each invoice 

applying to service against such contract by means of (a) date and 

number of contract; (b) name and address of the project; and ( c) 

the pricing therein by means of the term "contract price" when 

net prices are employed, and the term "contract discount" before 

each discount when the billing is done by list price and discount 

or plus percentage. 

SEc. 10. Fact01·y-wiarehouse service.-The Code Authority may 

undertake the study of recommendations to be submitted to the 

Administrator for consideration relative to proper charges, terms, 

and conditions for rendering service out of or through factory-warehouses operated by members of the Industry and for rendering other 

classes of special delivery services which study shall have due regard 

to the cost of services rendered by such factory-warehouse. 

SEC. 11. Consig11,ed stocks.-The Code Authority shall investigate 

problems presented in the elimination of consigned stocks of products 

of the Industry and shall recommend to the members who are parties 

to then existing arrangements with respect to shipments on consignment, such action in respect thereof as the Code Authority shall deem 

proper and designed to accomplish the termination of all such 

arrano-ements at a early a date as ~possible. 

SEc~ 12. Distress merchandise.-Surplus stocks or inventories that 

must be converted into cash to moot immediate needs and obsolete 

lines may be sold at such prices as are necessary to move the products into purchasers' hands; provided, however, that all such surplus 

stocks or inventories and obsolete lines first must be reported to the 

Code Authority and shall be disposed of only subject to the ap-
41 

proval of the Code Authority and under such rules and regulations 

a.s the Code Authority may prescribe; provided further, that appeal 

may be had to the Admini trator b3r a member of the Industry from 

any decision of the Code Authority; provided, further, that if the 

Code Authority does not notify the member of the Industry of its 

decision within ten (10) days from the receipt of the application, 

such member may appeal to the Administrator. 

SEc. 13. Producing affiliates.-A sale made by any member of the 

Industry through any affiliated producing company of such member 

shall be deemed to be a sale made by such member. 

SEc. 14. Unfair trade practices.-(1) After an award has been 

made by a duly authorized authority, there shall be no attempt to 

prevent a contract being made thereunder, nor shall there be any 

attempt to induce a breach of contract between any competitor and 

his customer. 

(2) There shall be no (a) dispara~ing statements made respecting another member of the Industry s business methods, practices, 

products, or financial integrity; (b) publication or circulation, by 

advertisement or otherwise, of any false, misleading, or deceptive 

statement concerning the grade, quality, character, or origin of 

products; or ( c) misbranding for the purpose or with the enect of 

misleading or deceiving purchasers or prospective purchasers with 

respect to quantity, quality, size, grade, or substance of products. 

(3) There shall be no (a) payment or allowance, in the form of 

money or otherwise, of secret rebates, secret refunds, secret credits, 

or unearned discounts; (b) payment of bribes or other forms of illegitimate inducement, in the form of money or otherwise, to influence 

the specification, demand, or acceptance of products; ( c) any extension of services or privileges to certain purchasers not extended to 

all purchasers of the same class, under like terms and conditions; or 

( d) any agreement to assist any purchaser of products in the sale of 

bonds or other securities in which he may be interested directly or 

indirectly. 

( 4) There shall be no substitution or deviation from the specifications or furnishing products of the Industry other than those 

described in the quotation. 

SEc. 15. Guaranty on product.-(1) Members of the Industry shall 

place on all articles made by them an identifying mark, such as their 

name or trademark, unless the size of design of the article will not 

permit of their doing so. 

(2) No guarantee on product, whether given voluntarily or upon 

reque t, shall provide for more than (a) freedom from defects in 

material and workmanship under the use and service for which the 

article is recommended by the producer thereof, and (b) the obligation to replace or repair any defective part or parts returned to 

his factory. 

(3) A guaranty which may make the producer responsible for consequential damages and other items of expense which normally cannot be anticipated and equitably comprehended in original costs or 

selling prices, creates conditions of unfair competition and therefore 

is forbidden. 
42 

ARTICLE V-Anl\IINISTRATION OF CODE 

SECTION 1. (1) Immediately after the approval of this Code by 

the Pre ident there shall be constituted a Code Authority consisting 

of not less than eight and not more than eleven members as hereinafter provided. 

(2) The Directors shall nominate fourteen (14) persons and the 

members of the Code, at a duly called meeting thereof, or by letter 

ballot, shall vote on the persons so nominated and the seven (7) 

persons receiving the greatest number of votes shall be members of 

the Code Authority, who shall serve for such terms as the directors 

shall determine; and the remaining seven (7) persons shall be alternate members of the Code Authority. 

(3) :Members of the Code who are not members of the Institute 

may elect one member of the Code Authority and one alternate by a 

fair method of election approved by the Administrator. 

(4) The Administrator, in his discretion, may appoint not more 

than three additional members without vote to represent the Administrator or such groups or interests as may be agreed upon. 

( 5) In order that the Code Authority shall at all times be truly 

representative of the Industry and in other respects comply with 

the provisions of the Act, the Administrator may provide such hearings as he may deem proper; and thereafter, if he shall find that 

the Code Authority is not truly representative or does not in other 

respects comply with the provisions of the Act, may require an 

appropriate modification in the method of selection of the Code 

Authority. 

(6) No inequitable restriction on membership in the Institute shall 

be imposed at any time. 

(7) Nothing contained in this Code shall constitute the members 

of the Code Authority partners for any purpose. Nor shall any 

provisions of this Code be considered to render any member of the 

Code Authority liable in any manner to anyone for any act of any 

other member, officer, agent, or employee of the Code Authority. 

Nor shall any provisions of this Code be considered to render any 

member of the Code Authority, exercising reasonable diligence in the 

conduct of his duties hereunder, liable to anyone for any action or 

omission to act under this Code, except for his o"n willful misfea. ance or nonfeasance. 

SE . 2. (1) The Code Authority is hereby designated as the agen y 

to cooperate with the Admini trator in administering supervising 

and promoting observance of the provisions of this Code, ubject 

to the right of the Administrator upon review to approve or disapprove any action taken by the Code Authority. 

(2) The Code Authority may adopt bylaws and rules and regulations for its procedure and for the administration and enforcement 

of the Code. 

(3) The Code Authority shall have the powers and duties set 

forth in thi Code. 

SEc . 3. The Code Authority may (a) investigate on its own initiative, or on complaint, the operation _of this ode and any violation 

thereof by anyone; (b) hold hearings and grant to all per ons 

interested in the subject matter of any investigation or complaint 
43 

a fair and reasonable opportunity to be heard; ( c) make findings 

of fact and state its conclusions as to whether or not there has been 

any violation of any provision of this Code ; and ( d) take such steps 

within its authority as it may deem necessary or advisable in 

connection therewith. 

SEc. 4. No member of the Code Authority shall participate as 

a member of such Code Authority in any proceedings in which he is 

interested by virtue of any connection with the complainant or respondent and in the event of any such disqualification the remaining 

members of the Code Authority shall certify such disqualification, 

together with the reasons therefor to the Chairman of the Code 

Authority who shall promptly de:-,ignate one of the duly elected 

alternates to act in the place of the disqualified member of the Code 

Authority. 

SEc. 5. The Code Authority may exercise its functions through 

such a_g~nts or committees as it may select, to operate under its 

superv1s10n. 

SEc. 6. (1) The Code Authority shall have power to require from 

all members of the Industry such information and reports as may be 

pertinent to the administration of this Code, including, but without 

limitation, reports on the following subjects: 

Emplo'!J1nent.-(A) Separations during previous month: (a) 

number of quits; (b) number of discharges; ( c) number of layoffs ; 

and ( d) total number of separations. 

(B) Number of Accessions during previous month (including 

both first employment and rehires). 

( C) Number of factory workers on Pay Rolls: (a) Number on 

pay roll at beginning of previous month. 

(D) Factory Pay-roll Analysis (for previous month to end o:f 

last full calendar week): (a) Wage rate, classes; (b) number employed in each rate-class; and ( c) total hours worked in each rateclass. 

D-istribution.- A. Total of shipments billed during previous month 

(to be reported by tonnage, piece or dollar value, whichever is the 

most practicable method of reporting). 

(2) In addition to information required to be submitted to the 

Code Authority, there shall be furnished to Government Agencies 

such statistical information as the Administrator may deem necessary for the purpose recited in Section 3 (a) of the Act. 

SEc. 7. (1) If an appeal is desired from a determination of the 

Code Authority to a Board of Appeal constituted in accordance 

with this section, notice shall be given of such intention to the Code 

Authority within five ( 5) days after receipt of notice of the determination of the Code Authority; provided, however, that the 

determination shall be controlling until a decision on the appeal 

has been rendered by the Board of Appeal. 

(2) The Code Authority shall designate its appointee, who shall 

be ready to proceed with the appeal withjn five (5) days after notice 

has been receiYed by it. 

(3) A Board of Appeal shall be composed of three (3) members; 

one chosen by the Code Authority, one chosen by the appellant, the 

third to be chosen by them. If the first two chosen fail to agree in 

their choice of the third member, then the third shall be appointed 

by the Administrator. 
44 

( 4) Such Board of Appeal shall have authority to hear appeals as 

provided in Paragraph (1) of this Section 7, and shall affirm or 

rever e the determination of the Code Authority in the case under 

apJ?eal. t 5) No provision of this Section 7 shall deny to any member of 

the Code or to any party in any proceeding the right to appeal to the 

Administrator nor prevent, at any time, direct appeal to him from 

any determination of the Code Authority. The Code Authority 

may, if it chooses, invoke the procedure provided for in this section. 

ARTICLE VI-P ARTI IPA TION 

SECTION 1. (1) Each member of the Code shall be entitled to participate in and share the benefits of the activities of the Code 

Authority. 

(2) Each member of the Code shall pay his pro rata share of the 

expenses of administration of the Code either by becoming a member 

of the Institute or by payment of an equitable pro rata share of the 

expense of the administration of the Code, such pro rata share to 

be determined by the Code Authority, subject to the approval of the 

Administrator, on the basis of the dollar value of net sales. 

ARTICLE VII-AMENDMENT OF ConE 

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

made subject to the right of the President, in accordance with the 

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

Act, from time to time to cancel or modify any order approval~ 

license, rule, or regulation issued under Title I of said Act, and 

specifically to the right of the President to cancel or modify his 

approval of this Code or any conditions imposed by him upon his 

approval thereof. 

SEc. 2. Such of the provisions of this Code as are not required 

to be included therein by the National Industrial Recovery Act may, 

with the approval of the President, be modified or eliminated as 

changes in circumstances or experience may indicate. It is contemplated that from time to time supplementary provisions to this Code 

or additional Codes will be submitted for the approval of the President to yrevent unfair competition in price and other unfair and 

destructive competitive practices and to effectuate the other purposes 

and policies of Title I of the National Industrial Recovery Act consistent with the provisions hereof. 

SEc. 3. ( 1) Any member of the Code may propose an amendment 

thereto; when any duly proposed amendment shall have been approved by vote of a majority of the Code Authority, it shall be submitted to a joint meeting of all said members, and, when approved by 

vote of a majority of such members, such amendment shall be submitted by the Code Authority to the President of the United States 

for approval. 

(2) The proposed amendment shall be set forth in the notice of the 

meeting at which the amendment is to be considered and acted upon. 
45 

ARTICLE VIII-]\1oxoPOLIES 

No provision of this Code shall be o applied as to permit 

monopolies or monopoli tic measures, or to eliminate, oppress, or 

di criminate against mall enterpri es. 

ARTICLE IX- EFFECTIYE D ATE 

SECTION 1. This Code shall be effective five (5) days after the 

approYal thereof by the President of the nited States, and it shall 

continue in force and effect until June lG, 1935, or as provided in 

Section 2 ( c) of Title I of the Act, until such earlier date as that on 

which the President of the United State shall by procla,mation, or 

the Congress 0£ the United States shall by joint resolution, declare 

that the emergency recognized by Section 1, Title I of the Act, has 

ended. 

Appro,ed Code No. 153. 

Registry No. 1335-1-03. 

0 
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