Approved Corle No. 137 Registry No, 1103-07 

NATIONAL RECOVERY ADMINISTRATION 

< 

CODE OF FAIR COMPETITION 

I 

FOR THE 

WARM AIR FURN AtCE 

MANUFACTURING INDUSTRY 

r A~ 1 

AS APPROVED ON NOVEMBER 27, 1933 

BY 

PRESIDENT ROOSEVELT 

,... _..... __ ,.. 

e~utive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the Superintendent of Documents, Washingt>:>n, D.C. - - - - - - - - Price 5 cents 
I 

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(II) 
Approved Code No. 137 

CODE OF FAIR COMPETITION 

FOR THE 

WARM AIR FURNACE MANUFACTURING INDUSTRY 

As Approved on Noven1ber 27, 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 'iV arm Air Furnace Manufacturing 

Industry, and hearings having been held thereon and the Administrator having rendered his report containing an analysis of the 

said code o,f fair competition together with his recommendations 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 o,f 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 approve the report and recommendations and adopt 

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

fair competition be and it is hereby approved. 

THE WRITE HousE, 

N ove1nber 27, 1933. 

Approval recommended : 

H UGH S. JOHNSON' 

Administrator. 

23786°----244-105----33 

FRANKLIN D. ROOSEVELT. 

(461) 
THE PRESIDENT, 

NOVEMBER 15, 1933. 

The White House. 

Sm: This is a report on the Code of Fair Competition for the 

Warm Air Furnace Manufacturing Industry, and on the public 

hearing conducted thereon in Washington, D.C., on October 23, 

1933, in accordance with the provisions of the National Industrial 

Recovery Act. 

PROVISIONS OF THIS ConE As TO WAGES AND HoURs 

All employees, except office employees, shall be paid a minimum 

rate of forty cents per hour in the North and thirty cents per hour 

in the South. 

Learners shall be paid eighty percent of the above minimum, but 

shall not exceed in number five percent of the total number of 

such employees. .. Office employees shall be paid a minimum of fiftee~1 dollars per 

week except that office boys or gir Is, not to exceed one to every 

ten office employees, shall be paid at least eighty percent of the 

above rates. 

Old and disabled employees, not exceeding in number five percent 

of an employer's total number, shall be paid at least eighty percent 

of the above minimum rates. 

Forty hours is the maximum number of working hours for any 

week and eight hot+rs for any day. At certain intervals forty-eight 

hours in one week is permissible. 

A tolerance of ten percent is allowed for maintenance and repair 

workers. 

Watchmen shall not be employed in excess of fifty-six hours in any 

one week. 

All employees, except office employees, shall be paid at the rate of 

time. and one half for hours in excess of the normal daily or weekly 

maximum. 

Office employees shall not be employed in excess of forty hours a 

week or more than forty-eight hours in any one week. 

Employers shall equitably adjust the compensation of employees 

receiving more than the minimum rates of pay provided and report 

readjustments to the Code Authority. 

EcoNOMIC EFFECTS 

Thi Indu try depends chiefly upon new residential building for 

consumption of its products ordinarily but now is largely dependent 

upon replacement demand. Between 1929 an l 1931 there has been 

a decline of almost forty percent in the value of this Industry's 

products. 

(462) 
463 

Of the two hundred and six of this Industry's concerns operating 

in 1929, only seventy-six now remain. This Code will not therefore 

effect the reabsorption of all former employees but will increase 

the number of employees over that of September 1933 by twenty-two 

percent. 

A substantial increase in employment has occurred in this Industry 

since January 1, 1933, due partially to seasonal variations but principally because some plants were operating under the President's 

Reemployment Agreement. 

This C de provides for the upward adjustment of this Industry's 

employee ' \\ages to the extent practicable. 

FINDINGS 

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

thereof; and that 

(b) The applicant group imposes no inequitable restrictions on 

admission to membership therein and is truly representative of the 

W ann Air Furnace Manufacturing Industry; and that 

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

to discriminate against them and will tend to effectuate the policy 

of Title I of the National Industrial Recovery Act. 

It is r ecommended, therefore, that this Code be approved. 

Respectfully, -

HUGH s. JOHNSON' 

Ad111inistratm·. 
CODE OF FAIR COMPETITION 

FOR THE 

WARM AIR FURNACE MANUFACTURING INDUSTRY 

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 'Varm Air Furnace Manufacturing Industry, and upon approval by the President, shall be the standard of 

fair competition for this Industry, and binding upon every member 

thereof. 

ARTICLE I-DEFINITIONS 

(a) " The I ndustry " means and includes the business of manufacturing and selling by" manufacturers of cast iron or steel warm 

air heating furnaces in the United States. 

(b) " National Industrial Recovery Act " means the National 

Industrial Recovery Act approved by the P resident on J une 16, 1933. 

(c) "Act " means National Industrial Recovery Act. (d) "Institute" means the Warm Air Furnace Manufacturers' 

I nstitute, a Trade Association. 

(e) The term "Employee" as used herein includes any person 

engaged in any phase of the I ndustry in any capacity in the nature 

of employee, irrespective of the method of payment of his compensation. 

(f) The term "Employer" as used herein includes anyone by 

whom such an employee is so engaged. 

(g) "Effective Date" means the second Monday after this Code 

is duly approved by the President of the United States. 

(h) "Jobber " means anyone whose sole business is to sell to 

dealers, heating contractors, and/ or installers, and who does not perform, directly or indirectly, the functions of a dealer, heating contractor, or installer. If any application of this definition should 

work hardship upon any member of the Industry, or any customer, 

such member of the Industry, or such custom.er, may apply to the 

Code Authority, which shall have power to grant such exemption 

as justice may require. (i) "Dealer" and/ or "Heating Contractor", and/ or "Installer" 

means anyone who buys the products of the Industry for resale to 

the consumer and/ or installation in connection with such sale. If 

any application of this definition should work hardship upon any 

member of the Industry, or any cu tomer, snch member of the Industry or customer may appeal to the Code Authority, which shall 

have power to grant such exemption as justice may require. 

(j) The term "l\lember of the Indu try ' means anyone engaged 

in the Indu try, whether as an employer or on his own behalf. 

ARTICLE II- CONDITIONS OF E~IPLOYl\IENT 

SECTION 1. (a) Employee shall have the right to organize and 

bargain collectively through rer resentatiYe of their own choosing, 

(464) 
465 

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. 

(b) 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. 

(c) Employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions of employment, approved or prescribed by the President. 

(d) Employers shall not reclassify employees or duties of occupations performed by employees so as to defeat the purposes of the Act. 

(e) Each employer shall post in conspicuous places full copies 

of this Code. 

SEc. 2. Mini1nu1n Wages.-On and after the effective date the 

minimum wage which shall be paid by employers in the Industry 

to employees other than office employees shall be at the following 

rates: 

(a) In all States of the United States, except Tennessee, North 

Carolina, South Carolina, Georgia, Alabama, Florida, ~Iississippi, 

and Louisiana , the minimum rate of pay shall be not less than forty 

(40) cents per hour. 

(b) In the States excepted in the above paragraph (a) the minimum rate of pay shall be not to exceed ten ( 10) cents per hour less 

than that pre cribed for other States. 

(c) The minimum rate of pay for learners shall not be less than 

eighty percent ( 80%) of the minimum wage provided herein, and 

the total number of such learners shall not exceed in any calendar 

month five (5) percent of the total factory employees of any employer, provided that no one shall be employed in the capacity of 

learner who has been employed within the industry for one year, 

whether by one or more employers. 

(d) The minimum wage which shall be paid by any employer to 

office employees except employees covered in Section 2, paragraph 

(e) of this Article II, shall not be less than at the rate of fifteen ( 15) 

dollars per week. 

Office boys and girls shall be exempt from the foregoing provisions 

of this paragraph (d), provided they are paid at the rate of not less 

than eighty ( 80) percent of the minimum wage provided in this paragraph (d) for office employees, and provided that they shall not 

exceed in number more than one to every ten office· employees. 

(e) Old and partially disabled employees shall in no case be paid 

less than eighty (80) percent of the within minimum wage rates of 

pay, and provided that the total of such employees shall not exceed 

five ( 5) percent of the total number of employees employed by any 

employer. 

SEc. 3. M awi?num H ours.-N o employee, except office employees, 

shall be employed in excess of forty ( 40) hours in any one week, or 

eight (8) hours in any twenty-four (24) hour period, except during 

any twelve (12) weeks in a twelve (12) months' period when employees may be employed not more than forty-eight ( 48) hours 

during any one (1) week, but such limitations shall not apply to: 
466 

(a) Employees engaged solely at maintenance and repair work 

.and shipping crews, firemen, engineers, and electricians, as to whom 

there hall be a tolerance of ten (10) percent. 

(b) Employees engaged in an executive or supervisory capacity 

receiving thirty-five ( 35) dollars or more per week, and outside 

salesmen. 

(c) \iV atchmen, who may be employed not more than fifty-six 

(56) hours in any one week. 

(d) All employees, except office employees and except employees 

covered by Paragraphs (a) and (b) of this Section 3, who work 

more than eight (8) hours in any twenty-four (24) hours period, 

or more than forty ( 40) hours per week, shall be paid not less than 

.one and one half time their normal pay for aid excess. 

SEc. 4. (a) Office employees shall not be employed for more than 

forty (40) hours in any one {1) week, _nor eight (8) hours in any 

twenty-four (24) hour period, subject to the following exceptions: 

(b) During any twelve (12) weeks of any twelve (12) months' 

period, such office employ.ees may be employed for not more than 

forty-eight (48) hours in any one (1) week; provided, however, 

that the average of weekly hours of employment of any such employee over such twelve ( 12) months' period shall not exceed forty 

( 40) hours per week. 

SEc. 5. (a) This Article establishes n1inimum rates of pay, regardless of whether the employee is compensated on the basis of a time 

rate or on a piece\YOrk ba. is or otherwise. 

(b) Equitable adjustment of compensation of employees receiving 

more than the minimum rates of pay herein pre cribed shall be made 

by all employer , who have not heretofore made such adjustments, 

and all employers hall within ninety (90) days after the approval 

of this Code, report in full to the Code Authority concerning such 

adjustments whether made prior to or subsequent to such approval. 

SEc. 6. Employers in the Industry shall not employ any minor 

under tb e age of sixteen (16) years, nor any person under the age of 

eighteen (18) in any hazardous foundry operations. The Code 

Authority hall submit t.o the Administrator within ninety (90) days 

after the approval of this Code a list of such operations. 

SEc. 7. (a) No employer shall engage any employee for any time, 

·which, when totaled with that already performed in the employ of 

another employer or employer , exceeds the maximum permitted 

herein; provided, that if any employee should be employed by more 

than one employer for an aggregate period in excess of such maximum without the knowledge or connivance of any one of sueh employers, such em players shall not be deemed to have violated this 

paragraph. 

(b) An employer shall administer work in hi. charge so as to provide a maximum practicable continuity of employment for his 

personnel. 

(c) An employer ·hall make payment of all wages due in lawful 

currency or by negotiable check, payable on demand. No deductions from uch wages shall be made for pensions, insurance, or ~ick 

benefit:.;, but employe-es may ,·oluntarily make such payments. 
467 

(d) The employ~r shall accept no rebates, directly or indirectly 

on wages, nor give anything of value or extend favors to any person 

for the purpose of influencing rates of wages or working conditions 

of his employees. 

(e) vVithin each State this Code shall not supersede any laws ot 

such State which impose more stringent requirem~:mts on employers, 

regulating the age of employees, wages, hours of work, health, or 

general working conditions than under this Code. 

ARTICLE III-RuLES Cov:ERING INDUSTRY 

SEcTION 1. Unfair Trade Practice Rules. To accomplish the purpow contemplated by the Act the following practices are lu~reby 

declared to be unfair meth-ods of competition. 

(a) Giving or pr-omising to give to any purchaser or prospective 

purchaser of any product, or to any officer, employee, agent, or 

representative of any such purchaser or prospective purchaser in 

connection with any sale or prospective sale, any bribe, gratuity, 

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

(b) Paying or allowing to be paid to any purchaser in connection with the sale of any product, any rebate, commission, credit, 

discount, adjustment, or similar concession other than as specified 

in the price sheet of the member of the Industry published pursuant 

to Article III, Section 2. 

(c) Disseminating, publishing, or circulating any false or nusleading information relative to any product or price for any product, of any member of the Industry, or the credit standing or ability 

of any ri1ember of the Industry to perform any work or produce any 

product! or to the conditions of employment among the employees of 

any Member. 

(d) Maliciously inducin<Y or attempting to induce the breach of 

an existing oral or written contract between a competitor and his 

customer or source 6f supply, or interfering with or obstructing the 

performance of any such contractual duties or services. 

(e) Making false representations or falsely marking or branding 

products of the Industry for the purpose or with the effect of 

misleading or deceiving purchasers. 

(f) Stating in. the inv-oice of any product, as the date thereof, a 

date later than the date of ship1nent of such product, or including in any invoice any product shipped on a date earlier than the date 

of such invoice for the purpose of evading the Code. 

(g) Accepting o1·ders for large quantities of products of the Industry, and then making small quantity deliveries at the large quantity price, fur the purpose and with the effect of unjustly discriminating between different purchasers. 

(h) Granting quantity discounts which have not been earned 

under the terms of the published price schedule. 

(i) :Making any allowances for advertising in any form to dealers 

or jobbers except pursuant w specific provision therefor in the member's price sheets, publish€d pursuant to Section 2 of this Article III, 

so that such allowance is available to all customers in the same class. 

(j) Making shipments to dealers on consignment, unle s such 

terms are offered publicly on the duly published price list of the 

member of the Industry and are available to all dealers alike. 
468 

(k) Accepting orders from the classes of trade herein defined, not 

specified for immediate shipment, unless such orders shall be subject 

to the prices and terms in effect at the time shipment is made. 

(1) Selling products of the Industry at a net realized price below 

the member's own individual cost; provided, however, that nothing 

herein contained shall prevent any member of the Indu try from 

meeting the price of any competitor who is not himself selling below 

cost. For the purpose of determining cost, the Code Authority shall 

prepare and recommend to the Administrator a uniform system bf 

cost accounting. Upon approval thereof by the Administrator, each 

member of the Industry shall immediately proceed to adopt such 

system of cost accounting in the determination of his own individual 

costs. If any member of the Industry should find it a hardship to 

adopt such cost accounting system, such member may appeal to the 

Code Authority, which shall have the power to permit such modifications or grant such exemptions as justice may require. 

SEc. 2. Open Price Policy.-(a) An open price policy shall be 

maintained at all times by all members of the Industry and each 

member shall issue price lists applying to any products offered for 

sale to jobbers, dealers, heating contractors and/ or instf!Jlers, as 

herein defined. These price lists shall be dated, as of date of issue, 

and shall contain the then prevailing prices, discounts and terms of 

sale applying, as well as all other conditions of sale, and nothing in 

addition shall be allowed. Each member's price list shall remain in 

effect until such time as the member shall make any change in prices, 

terms, or any conditions of sale, in which event the member shall immediately issue a new price list and send it to the Code Authority 

and to all members of the Industry, and to its jobbers, dealers, heating contractors and/ or installers. 

(b) No member of the Industry shall make any sale of any product at a lower price or on terms or conditions more favorable than 

provided in his price lists, issued as aforesaid, nor extend to any purchaser prices or terms more favorable than to any other purchaser 

of the same trade class. 

(c) Many members of the Industry sell part of their products 

direct to dealers andj or heating contractors, and the balance of their 

products through jobbers. In order to prevent indirect evasion of 

the provisions of this Section 2 by such members,. it is hereby provided that no such member shall sell any product to or through any 

jobber who is selling such product to any dealer and/ or heating contractor at a lower price or on terms more favorable than the prices 

and terms provided in the price list of such member for sales by 

su~h member direct to dealers and/ or heating contractors. 

(d) Nothing in this Code shall limit the effect of any adjudication 

by the courts or holding by the Federal Trade Commission on complaint, finding, and order, that any practice or method is unfair, 

provided that such adjudication or holding is not inconsistent with 

any provision of the Act or of this Code. 

ARTICLE IV-ADMINISTRATION 

SECTION 1. The Oode Authority of the / nd1tstry.-To cooperate 

with the Administrator in the administration of this Code, there 
469 

shall be a Code Authority consisting of seven representatives of the 

Industry elected by a fair method of selection by the Industry, subject to review by the Administrator. 

To effectuate further the policies of the National Industrial Recovery Act the Code Authority is hereby designated to cooperate 

with the Administrator as a planning and fair-practice agency for 

the Indu. try. 

The President or the Administrator may appoint not more than 

three nonvoting members of such Code Authority, without expen e to 

the Industry. Said Code Authority shall, from time to time, present 

to the Administrator recommendations, based on conditions in the 

Industry as they may develop, which- will tend to effectuate the 

operations of the provisions of this Code and the policy of the N ationa I Industrial Recovery Act. 

Any act or decision of the Code Authority shall be subject to 

the right of the Administrator upon review to disapprove or modify 

such act or decision. In the event of orp.ission by the Code Authority 

to act in any case in which action should be taken by it, anyone 

affected by s1.1ch omission to act may appeal to the Administrator 

who shall ha' e power to take the necessary action. 

The Code Authority shall, when requested by the Adn1inistrator 

or his representative, cause to be obtained from the members of the 

Industry statistical data and information pertinent to the operation 

of this Code, in such form and manner as not to disclose the inclividual figures and data of the respective members of the Industry, 

that the Administrator shall require and as may be necessary to 

enforce and effectuate the provisions of this Code and the policy 

of the Act. 

The Code Authority shall cause to be made available to the Administrator such reports, data, and information as may be required by 

the Administrator and which will assist in keeping the Administrator or any representative designated by him fully advised concerning such matters and confer with the Administrator or his representative from time to time to consider and study any recommendations presented by such person on behalf of the National Recovery 

Administration or any member of the Industry regarding the operation, observance and administration of this Code. 

In addition to the information to be submitted to the Code Authority, there shall be furnished to government agencies such statistical 

data as the Administrator may deem necessary for the purposes 

recited in Section 3 (a) of the Act. 

The Code Authority may delegate any of its duties to such agen- cies as it may appoint, which 1\ould not involYe the disclosure of the 

individual data or information of any member of the Industry, 

except as otherwise herein permitted or required to be disclosed, 

pr-ovided, that such agencies shall be under the supervision of the 

Code Authority. 

SEc. 2. The 'V arm Air Furnace Manufacturers' Institute of Co- lumbus, Ohio, is hereby constituted an agency to receive reports as 

herein above provided. The Institute shall provide for the receiving 

and holding of such reports in confidence. Such report. shall be in 

such form, and shall be furnished at such interYals, as shall be prescribed by the Code Authority and shall contain such information 
470 

relevant to the purposes o£ this Code as shall be prescribed by the 

Code Authority from time to time including information with respect to the following subjects: 

(a) Employment, hours, wages, and wage rates. 

(b) Production and billing. 

(c) Financial and cost data. 

(d) Activity, purchases, and sales. 

SEc. 3. The \IV arm Air Furnace Manufacturers' Institute is organized to enable the \IV arm Air Furnace Manufacturing Industry to 

subscribe to the provisions of the Act, and places no inequitable 

restrictions on membership, which is open to all employers engaged 

in the Industry. There shall be no future amendments to "the 

Standard Code and By-Laws of the Warm Air Furnace Manufacturers' Institute", which will tend to make the Institute not truly 

representative of and/ or which shall impose any inequitable restrictions on membership. 

ARTICLE v 

SECTION 1. By assenting to this Code, the applicants shall not be 

deemed to have assented to any modification thereof. 

SEc. 2. Amendments.-(a) Amendments to or revisions of this 

Code may be proposed by the Code Authority and when approved 

in accordance with the provisions of the Act shall become binding 

upon the ..Industry. 

(b) This Code and all the provisions thereof are expressly made 

subject to the right of the President of the United States, in accordance with the provision of Subsection (b) of Section 10, 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, bnt without limitation, to the 

right of the President of the United States to cancel or modify his 

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

approval thereof. 

(c) l\1embers of the Industry shall be entitled to participate in 

and share the benefits of the ~ctivities of the Code Authority and to 

participate in the selection of the members thereof by assenting to 

and complying with the requirements of this Code and sustaining 

their reasonable share of the expenses of its administration. The 

reasonable share of the expenses of administration shall be determined by the Code Authority, subject to review by the Administrator, 

on the basis of volume of business and/ or such other factors as may 

be deemed equitable to be taken into consideration. 

SEc. 3. Provisions Against Monopoly .-None of the provisions of 

this Code shall be construed or applied in such a way as to promote 

a monopoly or monopolistic practices or to eliminate or oppress small 

enterprises or discriminate against them. 

AnTrCLE VI 

Any violation of this Code shall render the violator liable to the 

penalties prescribed by Section 3 (f) of the Act, as follows: 
471 

"When a Code of Fair Competition has been approved or prescribed by the President under this title any violation of any provision thereof in any transaction in or affecting interstate or foreign 

commerce shall be a misdemeanor, and, upon conviction thereof, an 

offender hall be fined not more than five hundred ( 500) dollars for 

each offense, and each day such violation continues shall be deemed a 

separate offense." 

I ' ARTICLE VII- EFFECTIVE DATE 

This Code shall become effective on the second Monday after the 

approval by the President of the United States. 

Approved Code No. 137. 

Registry No. 1103-07. 
EXHIBIT A 

To the ConEJ AUTHORITY OF THE WAR.M AIR FURNACE MANUFACTURERS' INSTITUTE, 

50 W est BToad St1·eet, Colttmbtts, Ohio. 

GEN'I'LEMEJN: The undersigned engaged in the business of manufacturing aml 

selling by manufacturers of cast iron or steel warm air heating furnaces in the 

United States, as defined by the Code of Fair Competition for the Warm Air 

Furnace Manufacturing Industry, hereby makes application for membership 

in the Code and agrees that it will be subject to and will comply with all the 

provisions of the Code of Fair Competition of such Industry as approved by 

the President of the United States under the National Industrial Recovery Act. 

Date --------------------· 

Name ---------------------------- Address --------------------------· By ---------------------------- President. 

(472) 

0 
'1 

I. 
UNIVERSIT Y OF FLOR IDA 

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3 1262 08855 7607