Approved Code No. 347-Supplement No.8 Registry No. 1320-01 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

WATER METER 

MANUFACTURING INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

AS APPROVED ON MAY 16, 1934 

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U.S. DIPOle,..,_ 

UNITED STATES 

GOV,ERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent ol Documents, Washington, D.O. - • • • • • • • Price 5 «:nts 

v 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.O., and by district offices of the Bureau of 

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

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Cleveland, Ohio: Chamber of Commerce. 

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Houston, Tex. : Chamber of Commerce Building. 

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Jacksonville, Fla.: Chamber of Commerce Building. 

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St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 

' ··. 
Approved Code No. 347-Supplement No. 8 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

WATER METER MANUFACTURING INDUSTRY 

As Approved on May 16, 1934 

ORDER 

SUPPLEMENTARY ConE OF FAIR CoMPETITION FOR THE WATER l\1ETER 

l\1.ANUF.ACTURING INDUSTRY 

.A DIVISION OF THE :M:ACHINERY .AND ALLrED PRODUCTS 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 June 16, 1933, for approval of a Supplemental Code of Fair Competition for the Water Meter Manufacturing Subdivision of Machinery and Allied Products Industry, and 

hearings having been duly held thereon and the annexed report on 

said Supplemental Code containing findings with respect thereto, 

having been made and directed to the President: 

NOvV, THEREFORE, on behal:f of the President of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the 

President, including Executive Order No. 6543-A, dated December 

30, 1933, and otherwise; do hereby incorporate by reference said 

annexed report and do find that said Supplemental Code complies in 

all respects with the pertinent provisions and will promote the policy 

and purposes of said Title of said Act; and do hereby order that 

said Supplemental Code of Fair Competition be and it is hereby 

approved subject to the following condition: that the provisions of 

Article VII, Section (a), insofar as they prescribe a waiting period 

between the filing with the Code Authority (or such agency as may 

be designated in the Supplemental Code) and the effective date of 

price lists, as originally filed and/ or revised price lists or revised 

terms and conditions of sale, be and they hereby are stayed pending 

my further order. 

Approval recommended: 

A. R. GLANCY, 

HuGH S. JoHNSoN, 

Administrator for Industrial Recovery. 

Divisio~ Administrator. 

w .ASHINGTON, D.C., 

May 16, 1934. 

59658°----544-94----34 (1) 
REPORT TO THE PRESIDENT 

The PREsiDENT, 

The White House. 

SIR: This is a report on the Supplemental Code of Fair Competition for the Water Meter JVIanufacturing Subdivision of Machinery 

and Allied Products Industry, a Public Hearing on which was held 

in Washington, D.C., on December 8, 1933, and reconvened on December 21, 1933. The Hearing was conducted in full accordance 

with the provisions of Title I of the National Industrial Recovery 

Act. 

GENERAL STATEl\IENT 

The Water Meter Manufacturing Subdivision, being truly representative of the manufacturers of the products defined in Article 

II of the Supplemental Code, has elected to formulate and submit a Supplemental Code of Fair Competition as provided in the 

second paragraph of Article I of the Code of Fair Competition for 

the 1\.fachinery and Allied Products Industry, approved by you on 

the seventeenth day of March, 1934. 

The Water Meter Manufacturing Subdivision means the manufacture for sale of water meters and parts thereof, and includes all those 

engaged in such manufacture for sale. 

ECONOMIC EFFECT 

This Subdivision has been severely affected by the recent depression; this is evidenced by the steady decline in annual sales since 

1929. The annual volume of production of Water Meters and parts 

thereof as reported by the Division of Economic Research and Planning declined from $14,915,000 in 1929 to $4,935,000 in 1932, or 

66.9%. The six months total of the value of production of $2,219,000 

for the year 1933 indicates a continued decline as compared with the 

total for the last six months of 1932. 

Estimates of approximate employment of factory workers indicate this Subdivision employed 2,762 in 1929 and an average of 

1,610 in 1932, representing a decline of 41.7%, and on the basis of ~ix months averages employment further declined to an average of 

1,322 in the first six months of 1933; although the last figure we 

have for August 1933 shows a gain to 11710 workers in that month. 

No figures are available on the full time hours per week for the 

entire Subdivision. However, figures submitted by the Water Meter 

Institute in a special report representing 90% to 95% of the Subdivision, show that approximately 21% of the wage earners were 

working 40 hours or more per week during the month of August, 

1933. The average of man-hours maintained by the force of 1,710 

(2) 
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factory workers in August, 1933, was approximately 37.8 hours per 

week. Consequently the 40-hour provision of the Code will probably 

have little influence on further employment until production requirements increase. 

The wage provisions for the Subdivision, which is operating under 

the Code of the Machinery and Allied Products Industry, provide 

that employees engaged in plant operations shall be paid as follows: 

( 1) in cities of more than 50,000 population and their immediate 

vicinity, 40 cents per hour; (2) in cities of more than 10,000 but not 

more than 50,000 population and their immediate vicinity, which 

cities are not in the immediate vicinity of a city of more than 50,000 

population, 38 cents per hour; (3) in cities of 10,000 population or 

less and their immediate vicinity, which cities are not in the immediate vicinity of a city of more than 10,000 population, 36 cents 

per hour, except that employees engaged in plant operations in all 

localities in the states of Virginia, North Carolina, South Carolina, 

Georgia, Florida, Tennessee, Alabama, Mississippi, Arkansas, 

Louisiana, Texas, and Oklahoma, shall be paid not less than 32 

cents per hour. 

When females do substantially the same work as males or replace , 

males, they shall receive the same pay. However, no female employee shall be paid less than 87lj2 % of the proper rate for the 

locality in which employed. 

Office boys and girls and apprentices shall be paid not less than 

80% of the minimum wage. 

Employees other than those engaged in plant operations shall 

receive not less than $15.00 per week. 

JJJstimated number of factory workers receiving less than designated hourly 1·ates 

Approximate 

Proposed Perce!}t of number or 

minimum workers workers 

Proposed for South or cities ranging from- hourly receiving receiving less 

wage less th!!n than mini· 

(cents) minimum mum regard· less of 

location 

60,000 population and over_·-------------------------------------- 40 20. 5 323 10,000 to 50,000 population ________________________________________ 38 17. 8 281 Under 10,000 population. ______ ---- _______________________________ 36 15. 0 238 

Southern minimum·--------------------------------------------- 32 10.4 165 

SOURCE: Water Meter Institute. Special Report, dated August 1933. 

Based on the percentages of number of wage earners receiving less 

than the designated rates as shown above, the adoption of the proposed minimum hourly rates is expected to cause a small further 

Increase in the payrolls of this Industry based on the sample distribution as of August 1933. The estimated increase will probably 

not exceed three per cent assuming only upward adjustment in the 

brackets below the 40-cent minimum and no further increase in manhour requirements. 

The Code requires that no person under sixteen ( 16) years of 

age shall be employed in this Subdivision. 
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RESID!E OF SUPPLEMENTAL CODE 

Article I states the purpose of the Supplemental Code. 

Article II accurately defines specific terms applicable to the Subdivision as used in this Supplemental Code. 

Article III provides for the adoption of the employment provisions of the National Industrial Recovery Code of the Machinery 

and Allied Products Industry, as approved by you, and as from time 

to time amended. 

Article IV provides for the adoption of Articles II, VI, VIII, and 

IX of the National Industrial Recovery Code of the Machinery and 

Allied Products Industry, in accordance with the conditions of this 

Article governing their adoption. 

Article V provides for the establi hment of a Code Authority and 

defines its powers and duties. 

Article VI provides for an accounting system and methods of cost 

finding and/ or estimating. 

Article VII provides for methods of setting up, revising, and 

filing price lists and discount heets and terms of sale and payment. 

Article VIII sets forth trade practices for the Subdivision. 

Article IX. No provision of this Supplemental Code relating to 

pricing and marketing shall apply to direct export sales or to any 

product destined ultimately for export. Article X. This Supplemental Code and all the provisions thereof 

are express!y made subject to the right of the President, in accordance with Subsection (b) of Section 10 of the Act, from time to 

time to cancel or modify any order, approval, license, rule or regulation issued under said Act. Provision is also made that modifications may be submitted by the Code Authority to the Administrator for approval. 

Article XI provides means for withdrawal of this Subdivision 

from the Basic Code and its continuance as an autonomous Code. 

Article XII. No provision of this Supplemental Code shall be so 

applied as to permit monopolies, or monopolistic practices, or to 

eliminate, oppress, or discriminate against small enterprises. 

Article XIII states the effective date o:f this Supplemental Code. 

FINDINGS 

The Assistant Deputy Administrator in his final report to me on 

said Supplemental Code having found as herein set forth and on the 

basis of all the proceedings in this matter : 

I find that: 

(a) Said Supplemental Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery 

Act, including removal of obstructions to the free flow of interstate 

and foreign commerce which tend to diminish the amount thereof 

and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the 

trade groups by inducing and maintaining united action of labor 

and management under adequate governmental sanctions and supervision, by eliminating unfair competitive practices, by promoting 
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the fullest possible utilization of the present productive capacity of 

industries, by avoiding undue restriction of production (except as 

may be temporarily required), by increasing the consumption of 

industrial and agricultural products through increasing purchasing 

power, by reducing and relieving unemployment, by improving 

standards of labor, and by otherwise rehabilitating industry. 

(b) Said Subdivision normally employs not more than 50,000 

employees; and is not classified by me as a major industry. 

(c) The Supplemental Code as approved complies in all respects 

with the ,Pertinent provisions of said Title o:f said Act, including 

without limitation Subsection (a) of Section 3, Subsection (a) of 

Section 7, and Subsection (b) of Section 10 thereof; and that the 

applicant association is an industrial association truly representative 

of the aforesaid Subdivision; and that said association imposes nCl 

inequitable restrictions on admission to membership therein. 

(d) The Supplemental Code is not designed to and will not permit 

monopolies or monopolistic practices. 

(e) The Supplemental Code is not designed to and will not eliminate or oppress small enterprises and will not operate to discriminate 

against them. 

(f) Those engaged in other steps of the economic process have 

not been deprived of the right to be heard prior to approval of 

said Supplemental Code. 

For these reasons, therefore, I have approved this Supplemental 

Code, provided that certain provisions relating to price publication 

are stayed. 

Respectfully, 

MAY 16, 1934. 

HUGH s. JOHNSON' 

Administrator. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE WATER METER l\llANUFACTURING I NDUSTRY 

A DmSION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY 

ARTICLE I - PURPOSES 

To effectuate the policy of Title I of the National Industrial ecov~ 

ery Act, the following provisions are established as a Supplemental 

National Industrial Recovery Code for the Water Meter Man fac~ 

turing Subdivision of the ~1achinery and Allied Products I ndustry, 

and together with theN ational Industrial Recovery Code of Machinery and Allied Products Industry shall be the standard of fair 

competition for this subdivision, and shall be binding on each 

employer therein. 

ARTICLE II- DEFINITION 

"Applicant" means the Water ~leter Institute a trade organization, "hich organization is truly representative of this Subdivision, 

all members of which are engaged in the manufacture for sale of the 

products of the Water Meter Manufacturing Subdivision of the 

Machinery and Allied Products Industry. 

"Industry" means the Machinery and Allied Products I ndustry, 

as defined in its National Industrial Recovery Code as approved by 

the President, and as such definition may from time to time be 

amended. 

"Subdivision" means this Water Meter l\1anufacturing Subdivi- sion of the ~fachinery and Allied Products Industry as defined a.nd 

set forth in Paragraph 35 of Article II of the National Industrial 

Recovery Code of the l\1achincry and Allied Products Industry as 

follows: 

" Water Meter M anwfacturing Subdivision means the manufacture 

for sale of water meters and parts thereof and includes all those 

engaged in such manufacture for sale." _ 

' Code" means the National Industrial RecoYery Code of the ~fa

chinery and Allied Products Industry, as approved by the President, and as from time to time amended. 

"Person" means a natural person, a partnership, a corporation, 

an association, a trust, a trustee, a trustee in bankruptcy, a receiver, 

or other entity. 

"Employer" means any person engaged in the Subdivision either 

as an employer of labor or in his own behaJf. 

"Employee" ~ans any one who is employed in the Subdivision 

by any such empi'Oyer. 

" The Act " means Title I of the National Indu trial Recovery 

Act. 

"The President" means the President of the United States. 

(6) 
7 

"The Administr(J)tor" means the Administrator for Industrial Recovery. 

"Basic Oode Awthority" means the Code Authority for the Machinery and Allied Products Industry as constituted by the Code. 

"Oode Authority" means the Code Authority constituted for this 

Subdivision as provided by the Code and by this Supplemental Code~ 

"Group Oode Awtlwrity "means the Code Authority for any group 

or product classification within this Subdivision, constituted under 

the authority of the Code and of this Supplemental Code. 

"Publish" means to make available to the public. 

ARTICLE III-El\IPLOYl\IIENT PROVISIONS 

The following Articles of the Code, viz : Article III, " Working 

Hours"; Article IV, "Wages"; and Article V, "General Labor 

Provisions ", are hereby made a part of this Supplemental Code, with 

the same effect as if they were written into this Supplemental Code.. 

ARTicLE IV-ADOPTION OF OTHER PRovisioNs OF CoDE 

The followincr Articles of the Code, viz: Article II, "Definitions"; 

Article VI, "Administration", to the extent that they shall be applicable to this Supplemental Code as such or as it may hereafter be 

administered as an autonomous Code; Article VIII, " l\1odifications 

and Termination"; and Article IX, ""\Vithdrawal ", are hereby 

adopted and made a part of this Supplemental Code with the same 

effect as if they were written into this Supplemental Code. 

ARTICLE V-ADMINISTRA TION 

(a) The Code Authority for this Subdivision shall be constituted 

as follows: 

(1) During the period, not to exceed sixty days, following the 

effective date of this Supplemental Code, the Code Committee o£ 

Applicant shall constitute a temporary Code Authority. This Committee shall consist of five membe.rs, and the Administrator, in his 

discretion, may appoint one additional member (without vote and 

without expense to the Subdivision) . (2) vVithin sixty days after this Supplemental Code shall become 

effective the Executive Committee of Applicant shall nominate seven 

persons, and the employers not members of Applicant shall haYe the 

right to nominate one person, and all employers at a meeting duly 

called for the purpose of which at least ten days' notice by registered 

mail shall be given and at which employers shall have the right to 

vote either in person or by proxy, shall vote on the eight persons so 

nominated, subject to the provisions of paragraph (c) of this Article 

V, provided, however, that if the employers not members of Applicant do not exercise the right to nominate one person, the vote at the 

meeting shall be on the seven persons nominated by the Executive 

Committee of Applicant. The five persons receiving the greatest 

number of votes at such election shall constitute the permanent Code 

Authority together with the Administrator's appointee (if any) 

as referred to in paragraph (a) (1) of this Article V. 
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(b) Any employer in this Subdivision shall be eligible for membership in Water Meter Institute. 

(c) Any employer in this Subdivision shall be entitled to vote 

at the election of, and share in the benefits of). the Code Authority, 

and may participate in any endeavors of the vode Authority in the 

preparation of any revision of, or additions or supplements to, this 

Supplemental Code. Each such employer shall pay his proper pro 

rata share of the reasonable cost of creating and administering_this 

Supplemental Code as determined by the Code Authority. Each 

such employer shall have one vote. 

(d) Employers in this Subdivision having a common interest and 

common problems, may be grouped by the Code Authority for 

administrative purposes. 

There shall be a group Code Authority approved or appointed by 

Code Authority for each such group. 

(e) If formal complaint is made to Code Authority, that provisions of this Supplemental Code have been violated by any employer, the Code Authority or the proper Group Code Authority, 

may, to the extent permitted by the Act, cause such investigation or 

audit to be made as may be deemed necessary. If such investigation 

is made by Group Code Authority, it shall report the result-s of such 

investigation or audit to Code Authority for action. 

(f) Code Authority may exercise its functions through such ag~nts or committees as it may select, to operate under its superVlSIOn. 

ARTicLE VI-AccouNTING 

The Code Authority shall cause to be formulated an accounting 

system and methods of cost finding and/or estimating capable of use 

by all members of the Subdivision. A:fter such system and methods 

have been formulated, full details concerning them shall be made 

available to all members. Therea:fter all members shall determine 

and/or estimate costs in accordance with the principles of such 

methods. 

ARTICLE VII-PRICE LISTS 

(a) If and when the Subdivision Code Authority determines that 

in any group of the Subdivision it has been the generally recognized 

practice to sell a specified product on the basis of net price lists, or 

price list-s with discount sheets, and fixed terms of sale and payment, 

each manufacturer of such product shall, within ten (10) days after 

notice of such determination, file with Code Authonty a net price 

list, or a price list with discount sheet, as the case may be, indi ... vidually prepared by him showing his current prices or prices and 

discounts, and ter·ms of sale and payment2 and the Code Authority 

shall immediately publish and send cop1es thereof to all known 

manufacturers of such specified products. 

Revised price lists and/or discount sheets and/or terms of sale 

and payment may be filed from time to time thereafter with the 

Code Authority by any manufacturer of such product, to become 

operative upon the date specified therein, but such revised price lists 
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and/or discount sheets and/or terms of sale and payment shall be 

filed with the Code Authority ten (10) days in advance of the operative date. The Code Authority or Group Code Authority may 

establish a shorter period at any time provided no revisions then 

waiting operative date shall be affected thereby. Copies thereof, 

with notice of the operative date specified, shall be immediately published and sent to all known manufacturers of such product, any 

of whom may file, if he so desires, revisions of his price lists and/or 

discount sheets and/ or terms of sale and payment to meet the prices 

andjor discounts and/or terms of sale and payment first filed, which 

shall become effective upon the date when the revised price list 

and/or discount sheet and/ or terms of sale and payment first filed 

shall go into effect.1 

(b) If and when the Code Authority shall determine that in any 

group of the Subdivision not now selling its product on the basis 

of price lists, with or without discount sheets, with fixed terms of 

sale and payment, the distribution or marketing conditions in the 

group are the same as, or similar to, the distribution or marketing 

conditions in a group where the use of price lists, with or without 

discount sheets, and fixed terms of sale and payment is well recognized, and that a system of selling on net price lists or price lists 

and discount sheets with fixed terms of sale and payment should be 

put into effect in such group, then each manufacturer of the product 

or products of such group shall within twenty (20) days after notice 

of such determination, file with the Code Authority net price lists 

or price lists and discount sheets, with fixed terms of sale and payment, showing his prices and discounts and terms of sale and payment, and such price lists and/ or discount sheets and/ or terms o:f 

sale and payment shall be published and may be thereafter revised 

in the manner hereinbefore provided. Provided that Code Authority 

shall make no determination tq place any product of the Subdivision 

(not now on a price list basis) on a price list basis, as provided in 

this paragraph (b) of Article VII unless affirmative consent to such 

determination is given by a 75 % vote of employers cooperating in 

this Code who are at that time engaged in manufacturing such product. The eligibility requirements, method and effect of such voting 

shall be the same as is provided by Article V. 

(c) No e.m ployer shall sell directly or indirectly by any means 

whatsoever, any product of the Subdivision covered by provisions 

of this Article VII at a price lower or at discounts greater, or on 

more favorable terms of sale and payment, than those provided in 

his own current net price lists, or price lists and discount sheets, and 

terms of sale and payment which have been filed with Code Authority and which have become effective. 

ARTICLE VIII-TRADE PRAGTICES 

Each of the following acts and practices is deemed to be inimical 

to the best intereSts of the Industry, and of the public, and each is, 

therefore, hereby declared to be, and to constitute, an unfair method 

of competition, viz: 

1 See paragraph 2 of order approving this Code. 
10 

(a) The secret payment of any rebate, credit, subsidy, or discount, in money or otherwise, with intent to influence any sale. 

(b) The payment, or promise to pay, to any agent, fiduciary, or 

representative, any money or valuable thing, with or without the 

knowledge of his principal, for the purpose of improperly influencing any sale to his principal, provided that this paragraph shall not 

be construed to prohibit free and general distribution of articles 

commonly used for advertising except so far as such articles are 

s.dually used for con1mercial bribery as hereinabove defined. 

(c) Untruthfully advertising, representing, or marking any product with intent to deceive or mislead. 

(d) The publishing or circularizing of any threat of suit for 

infringement of patent or trade-mark, or of any other legal proceedings, not in good faith, which would tend to harass a competitor or intimidate his customers. 

ARTICLE IX-SALES FOR ExPORT 

The provisions of this Supplemental Code concerning pricing and 

marketing shall not apply to direct export sales of any product. A 

similar exemption may be granted by the Code Authority as to 

sales of any product destined ultimately for export. Unless otherwise determined by the Code Authority the term "export " shall 

include all shipments to all places without the several states of the 

United S~ates and the Dis~rict of Colum?ia; provided1 however, 

that no shipment to any terntory or possesswn of the United States 

shall be considered an export when any employer is engaged in the 

Subdivision in such territory or possession. 

ARTICLE X-MODIFICATIONS 

(a) As provided by Section 10 (b) of the Act, the President may 

:from time to time cancel or modify any order, approval, license, 

rule or regulation issued under Title I of the Act. 

(b) Any amendments, additions, revisions, or supplements of 

this Supplemental Code, proposed by Code Authority, and approved by 75% of the employers shall be in full force and effect upon 

approval by the Administrator. The eligibility requirements, 

method, and effect of such voting shall be the same as provided by 

Article V. 

ARTICLE XI-WITHDRAWAL 

As is provided by Article IX of the Code, upon 30 days' notice 

to Basic Code Authority and to the Administrator, this Subdivision 

may, upon the affirmative vote of not less than two-thirds of the 

employers within this Subdivision, withdraw from the jurisdiction 

of Basic Code Authority. After and in event such withdrawal is 

accomplished, this Supplemental Code, together with the provisions 

of the Code, except such portions of Articles I, II, VI and VII as 

are not pertinent thereto as determined by the Code Authority 

and the Administrator shall become and be the Code governing 

this Subdivision, and the Code Authority shall for this Subdivision 
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become and be the only Code Authority, and shall perform all the 

functions with respect thereto. 

ARTICLE XII-1\tioNOPOLIES 

Applicant imposes and shall impose no inequitable restrictions 

on membership therein. The Supplemental Code presented by it 

is not designed to promote monopoly, and shall not be so construed 

or applied as to oppress or eliminate small enterprises or discriminate aga]nst them, and is designed to effectuate the policy of the Act. 

ARTICLE XIII-EFFECTIVE DATE 

This Supplemental Code shall become effective and binding on all 

persons engaged in the Subdivision on the eleventh day after its 

approval. 

Approved Code No. 347-S.upplement No. 8. 

Registry No. 1320'--01. 

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UNIVERSITY OF FLORIDA 

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