Registry No. 1116-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

IRON AND STEEL INDUSTRY 

A 

u.s. 

AS APPROVED ON AUGUST 19, 1933 

BY 

PRESIDENT ROOSEVELT 

WE DO OUR PART 

1. Deputy Administrator's letter of transmittal 

to Administrator 

2. Executive Order 

3. Text of Code 

---.... 

{ 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

I ' I 

For sale by the Superintendent or Documents, Washington, D. C. 

The American Iron and •. Steel Institute, which presented the Code 

July 15th, reported that signers of the Code then represented 90% 

of the total pig-iron and steel-ingot capacity in the United States and 

that it expec.ted total signatories representing 95% of such capacity. 

DESCRIPTIVE OF THE INDUSTRY 

The Industry as defined in the Code includes all those producing 

in the United States pig iron, iron or steel ingots, and rolled or drawn 

iron or steel products. Purposely excluded from the scope of the Code 

are other operations and products of iron and steel producers, such 

as mining of iron ore and coal, transportation, production of cement 

and other byproducts, castings, and the bulk of forgings. Included, 

however, are some iron and steel products, not properly or fully 

described by the words "rolled or drawn", and which are processed 

after rolling or drawing by the producing company, such as spikes, 

tieplates, wire fencing, nails and staples, tin plate, and other coated 

products. 

The following statistics are from the Census of Manufactures, 1929, 

and 1931 Mimeographed Reports: 

I 

I 

1923 1929 I 1931 

Iron and steel industry (blast furnaces, steel works, 

and rolling mill ) : Wage earners _______________________________________ 424,900 420,800 278, 100 Total wages ________________________________________ $697,000,000 $733,000,000 $358,000,000 'Vages per worker_ ________ ______ _____ ___ ___________ $1,640 $1, 742 $1,287 Value of product_ ________________ __ _________________ $4, 162,000,000 $4,137,000,000 $1,714,000,000 

Ratio of wages to value added by manufacture 

percent__ 54.0 45. 1 57.4 

All other manufacturing industries, wages per worker ___ ______________ -------------------------- $1,234 $1,293 $1, 102 

It is significant that 1923 and not 1929 was the peak year for the 

Industry in point of value of product, although the greatest production 

and wage payments were in 1929. Since then the Industry has fully 

experienced the difficulties of the depression, its operating rate declining to 15% and lower during late 1932 and early 1933. The low rate 

of operation coupled with low prices resulted in substantial operating 

losses for practically all companies. The Industry operated over 50% 

capacity in July of this year, however. 

Attention is directed to the fact that many members of the Code 

have been operating under its wage provisions since the middle of 

July, both as to minimum and higher rates. 

It hould also br remarked that this Industry ha been a leadAr 

m the" harP- the -work " movement since 1929. 

(1) 
2 

SuMMARY AND DiscussiON OF ConE PROVISIONS 

COLLECTIVE BARGAINING 

The mandatory clauses of subsection (a) of Section 7, Title I, 

N.I.R.A., are stated without qualification. Section 2, Art. IV, of the 

original Code and its companion Sched1tle relating to "Employee 

Representation Plans" were withdrawn at the hearing, prior to 

whiCh these had been subjected to much criticism. 

EMPLOYMENT-HOURS AND WAGES 

A full study of the hour and wage provisions of the Code is contained in the Report of the Division of Economic Research and 

Planning, their summary of which is given below: 

The Industry employed 421,000 jn 1929, 210,000 in 1932, and 

272,000 at the end of July 1933. The hours in the Code should allow 

of a production without undue strain of about 3,580,000 tons per 

standard month, this being the half-way recovery point from the 

May 1933 level of 1,916,000 per standard month to the average of 

4,516,000 tons for 1929. This will require 62,000,000 man-hours per 

month, or say, 65,000,000 to provide for seasonal peaks. This 

could be provided by 417,000 men on a 40-hour week. 

Experience shows that, on the average, 10% of the nominal working 

time is lost through voluntary absences, breakdown, inability to 

schedule operations perfectly, and lack of sufficient business for 

particular products to keep the departments for those products busy 

all the time; that is, with a maximum work week of 40 hours the 

hours actually worked cannot average over 40 per week, 36 hours 

is the maximum effective work week, or 156 hours per month. 

65,000,000-+- 156 =417,000. 

About 272,000 men were employed at the end of July and working, 

roughly, 43 hours a week. With a maximum 40-hour week and 36 

hours effective, it is estimated that this number would be increased 

to about 325,000. 

Reemployment, in this Industry, with its subdivisions and specialization of labor, can be much larger than would at first appear from 

the average hours worked. This is because many men will be working 

considerably longer than the average, and many considerably shorter. 

As those working longer are brought down to the Code hours, additional men have to be taken on. But these groups working shorter 

hours cannot in general double up and release men to the other groups; 

there are limits to a" share-the-man" movement in the steel industry. 

The 8-hour day and 40-hour week will create a great many jobs 

in cases like the following: 

(a) Mill working one 10-hour shift 6 days a week, total of 60 millhours per week. The only practicable readjustment would be two 

8-hour shifts working 4 or 5 days a week, giving a total of 64 or 80 

mill-hours. The number of jobs would be doubled. 

(b) Mill working two 10-hour shifts 6 days a week, giving total of 

120 mill-hours. The practical readjustment would be three 8-hour 

shifts working 5 days a week, giving a total of 120 mill-hours. The 

number of jobs would be increased 50%. 
3 

Wages are about half the value added by manufacture. 

1929 

Value of steel products ______________ ____ ___ ____ _________ _ $3,366,000,000 

Raw materials________ ___ ________________________________ 1, 904, 000, 000 

Value added, steeL __ ______________ ___ _________ ___ __ 1, 462,000,000 

Value added, iron and steeL______ ____ _____________________ 1, 62·3, 000,000 

Wages (including wages of blast-furnace workers)____________ 733, 000, 000 

Ratio to value added ____________________ _______ _ percent__ 45 

Wage rates were much better than average manufacturing wage 

rates, in the period 1921- 1930, but were barely up to the rates paid 

in those industries requiring skilled labor. Steel wages dropped 

further than others in 1931 and 1932, and fell definitely below skilled 

wage rates in other industries. Unskilled wage earners (laborers) 

averaged about 41.4¢ an hour in 1929. The Code minimum rates 

average about 39.5¢ in the Pittsburgh and Great Lakes regions 

(average on weighted basis), 35¢ in the Eastern Region, and 26 .5¢ 

in the Southern. Compared with 1929, these vary from a decrease 

of 16% in the East to an increase of 13% in the South. The Code 

minimum wages in the Pittsburgh, Great Lakes, and Middle West 

Regions will be 10% below the 1929 rate. In relation to early 1933, 

the Code minima represent advances of from 22% (Pittsburgh) to 

anywhere from 35% to 80% (the South). 

The proposed minimum wages vary from 25¢ per hour in the 

south to 40¢ in Pittsburgh. The necessity for the lower wage in 

the south lies in the longer freight hauls to principal interior markets, 

and also in a high mining cost in terms of labor. One man-hour in 

Alabama produces 0.533 ton of crude iron ore of 20.1% iron content, or 0.107 ton of iron, while one man-hour in Minnesota produces 1.132 tons of crude iron ore of 49.5% iron content, or 0.56 

ton of iron. (Figures for 1932; special study by Bureau of Mines.) 

One man-hour produces 0.413 ton of coal in Alabama, 0.598 in 

Pennsylvania, 0.810 in Illinois, and 0.731 in West Virginia. In 

addition, the Alabama coal has to be washed, which reduces the net 

yield to 0.37 ton. 

Another difficulty facing the South is imports. The South normally ships a large part of its output to the Atlantic, Gulf, and 

Pacific seaboard. 

Both these difficulties are reflected in income account and balance 

sheets, which reveal a definitely poorer financial status than the 

Northern companies. One Southern company is in default on bond 

interest and sinking fund. 

The decline in wage rates during the depression has been partially 

cushioned by the concurrent decline in living costs. The 1929 

average common labor rate was 41.4¢ and the 1933 rate about 31¢ 

(estimated on basis of common labor entrance rates of July 1, 1932, 

which were 31.84, and U.S. Steel recent minimum of 33¢). Living 

costs early in 1933 were below 70 in tern1s of 1929 = 100, so that thl 

31¢-rate represented in actual purchasing power over 44e an hour 

(31-+-.70=44), or more than in 1929. 

The code minima, which average about 39¢ an hour, represent about 

52¢ an hour in 1929 purchasing power, taking the cost of living as 

75% of 1929, to allow for increased costs. 

While the hourly wages show up very well indeed on a real wage 

basis, the weekly wages do not. Employees worked about 54 hours a 
4 

week in 1929 and often less than 26 in 1932 and early 1933. The 

unskilled average weekly wage was, therefore, about $22.40 in 1929 

($0.414 X 54) and $8.05 in 1932 and early 1933 ($0.31 X 26). (Unskilled 

workers may have worked longer hours than the average and o have 

earned more than the above; the National Industrial Conference 

Board reports unskilled average weekly earnings of $11.97 in the 

first four months of 1933.) 

1 

2 

3 

4 

5 

6 

I 

I Money 

Hourly Hours Weekly Cost of I Real wages for 

wages per week earnings li~ing wages 1929 pur- chasing 

power 

1929 ___ _______ ______ _________ _________ $0. 414 54 $22.40 100 $22. 40 I $22.4 

rly 1933·--------------------------- . 31 26 8. 05 iO 1l. 50 15. 70 

0 

rly 1933 --------- ------------· -----· .31 ---------- 11.97 70 17. 10 15. 70 July 1933 ____ _____ ______ ______________ . 31 40 12.40 72 17. 20 i 16. 10 Code ______________ ____ __ _____ ________ . 39 36 14.05 i5 18. 70 16.80 

Code __ __________ --.-----. ------------ . 39 40 15.60 75 20. 80 16.80 

NorE.-National Industrial Conference Board figure of $11.97 probably not comparable with others. 

It will be seen that working for 31¢ an hour for 26 hours gives a 

weekly purchasing power of only $11.50 or but slightly more than 

half 1929. In July 1933 the average work week wa above 40 hours. 

Average weekly money wages were about $12.40 (before the 15% 

wage increase on July 15) which represents $17.20 in 1929 purchasing 

power. The code rates for 36- and 40-hour weeks, re pectiYely, vvill 

give $14 .05 and $15.60 in money wages and $18.70 and $20.80 in 

1929 purchasing power. 

CHILD LABOR 

None of the members of the Code shall employ in or about its 

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

MAxiMUM HouRs FOR ALL EMPLOYEE 

Not over 40 hours per week average in any 6 month ' period. 

Not over 48 hours, or more than 6 days, in any one week. 

On and after November 1, 1933, if operating at 60% of capacity 

or more, not over 8 hours per day. 

(Exemptions-Executives, those in supervisory and techni al w rk 

and their staffs, and emergency work.) 

The large number of different manufacturingproce e , the dep nd- ence of each process upon various percentages of highly killed 

workmen such as boss rollers and furnace men, and oth r craft men, 

and the physical hazards caused by untrained rnen all contribut to 

the real ob tacles in the way of interchangeability of labor r duction 

of working time, and ab orption of unemployed worker in this 

Industr:v. By sy tematic and consi tent training m thod , n1 n will 

be pr vided for the hi<?;hly killed job . This will r quire om time, 

however, and meanwhile the provision for av ra i,no· h ur and Jor a 

48-hour maximum week have been provid d to tak ar of ~ nal 

and peak labor loads. While the foregoino- applie principally t the hi hl y killed worker , it i applicable in les r de re t th much 

larger cla s of emi killed workers. 
5 

MINIMUM RATES oF PAY FOR CoMMON LABOR ARE As FoLLows FOR 

THE WAGE DISTRICTS INDICATED 

40¢ PER HOUR 

Pittsburgh District 

Youngstown Valley District 

North Ohio River District 

Cleveland District 

Chicago District 

Detroit-Toledo District 

Colorado District 

(The above including approximately 60 percent of the Industry.) 

39¢ PER HOUR 

Utah District 

Buffalo District 

Johnstown District 

Duluth District 

San Francisco District 

38¢ PER HOUR 

Seattle District 

37¢ PER HOUR 

Canton-Massillon-Mansfield District . South Ohio River District 

Indiana-Illinois-St. Louis District 

35¢ PER HOUR 

Eastern District (comprising ap- Kansas City District 

proximately north of the State Los Angeles District 

of Virginia and East of Altoona, 

Pennsylvania) 

27¢ PER HOUR 

Birmingham District (Jefferson County, Alabama). 

25¢ PER HOUR 

Southern District (all southeastern and south-central United States, 

except Jefferson County, Alabama) 

(Exceptions: Apprentices and Learners.) 

All employees receiving on July 14th pay at a rate per hour in 

excess of the common-labor rates then in effect are to receive a rate 

of pay per hour which shall be at least 15% above that of July 14th, 

but not above similar rates in the same district paid by other members 

who have made the 15% increase. 

Piecework to yield on the average not less than the minimum 

rate per hour for common labor. 

While it is apparent from the foregoing summary by the Division 

of Economic Research and Planning that the Industry as a whole 

through its wage increases has made a genuine contribution toward 

the objectives of National Industrial Recovery Act, nevertheless, it 

should be stated that the Bureau of Economic Research and Planning 

does not necessarily give approval to the continuation of the wage 

differentials in the Code for the various districts but desires to study 

this subject further in the light of pertinent data not now available 

but which it will collect and examine during the 90-day period of 

observation. 
6 

Exceptions from the hour and wage provisions will be subject to 

study and recommendations by the Administrator and his representatives during the 90-day observation period. 

PRODUCTION AND PRICE PROVISIONS 

The production and price provisions of the Code provide for a 

present limitation on the construction of new furnace capacity and 

possible future production control by the Directors, both subject to 

the approval of the President of the United States; together with 

adherence to listed prices, subject to control by the Directors, with 

notice of decisions of the Directors to the President of the United 

States. Prices are to be listed for a considerable number of basing 

points and charged to include listed prices plus rail freight to the 

points of delivery. 

While the members of the Industry and the Industry Advisor 

report that the scheme of the Code involves no substantial change from 

present practices, a number of protests have been made against 

alleged changes in basing points and against the price provisions of 

the Code as a whole. Protests have also been made against the control 

of deductions for transportation costs cheaper than all-rail, against 

the control of quantity discounts, and against the operation of through 

rail rates on products fabricated in transit. The protestants have not 

satisfactorily established their objections to the operation of the Code. 

In view of the protests and the far-reaching effects of the provisions 

of the Code, it seems wise to provide for a 90-day period of experimental observation of the operation of the Code. This period will 

make it possible to insure that competitive conditions continue to 

exist in the markets for steel, that competitors and purchasers of steel 

receive adequate protection, and that the Industry has adequate 

opportunities for reasonable stabilization of its business. For this 

purpose, the Code as amended expressly provides that the operation 

of its provisions shall be· subject to scrutiny by the Administrator of the 

Recovery Act, and one or two representatives appointed by him. 

These representatives may advise the Directors about the desirability 

of modifying practices provided for in the Code; and they may further 

recommend to the President the exercise of his reserved power to 

cancel the Code. 

It is to be observed that in partial compensation for increased 

labor costs, the Steel In.dustry seems likely to derive substantial 

market advantages from the price-stabilization provisions of the 

Code. While leaders in the Industry indicate that they would gain 

no advantage by raising present prices, they evidently refer to published official base prices. Members of the Industry have not, as 

is conceded, been able to secure these prices uniformly under the 

competitive conditions recently prevailing. On the other hand, it 

seems likely that these prices will be firmer, and result in sub tantial 

increases in profits, under the influence of provisions requiring publication of base prices and prohibiting conce sions contain d in the 

Code. Further, the mere elimination of credit abuses should greatly 

help the Industry. Stabilization of prices may have a favorable 

effect on employment and busine s generally. On the oth r hand, 

the operation of the market influence in qu tion must be ubjected 

to careful observation by the representative of the Admini tration. 
7 

REPORTS AND STATISTICS 

As amended, the Code provides for reports and statistics to be 

furnished the Administrator on production, sales, conditions of employinent, prices, and other information necessary for the purpose of 

the Code (Art. V, Sec. 1; Art. IX, Sec. 5; Sched. E, Sec. 13; Sched. H, 

Sec. I\1). 

ADMINISTRATION 

The Code is to be administered by the Board of Directors of the 

American Iron and Steel Institute. As finally submitted, recognizing 

that questions of public interest are or may be involved, provision is 

made for the Administrator and one or two of his representatives to 

attend meetings of the Directors, secure information, and make 

recommendations relating to the administration of the Code and the 

effectuation of Title I, National Industrial Recovery Act (Art. VI, 

Sec. 7). 

FINDINGS 

I have found that-

(a) The Code complies with the pertinent proVIsiOns of Title I, 

National Industrial Recovery Act, including, without limitation, 

subsection (a) of Sec. 7, and subsection (b) of Sec. 10 thereof. 

(b) The American Iron and Steel Institute is truly representative 

of the Industry and imposes no inequitable restrictions upon admissions to membership. 

(c) The Code, as amended and finally submitted, imposes necessary conditions for the protection of consumers, competitors, and 

employees, will not permit monopolies or monopolistic practices, or 

elin1inate or oppress small enterprises, and will not operate to discriminate against them. 

The Code bas been approved by the Labor Adivsory Board, the 

Industrial Advisory Board, and the Consumers' Advisory Board. 

I have, therefore, recommended approval of the Code, as amended 

and finally submitted for a period of 90 days, as provided in Sec. 2 of 

Art. XII thereof. 

Respectfully submitted. 

K. M. SIMPSON, Deputy Administrator. 

ExECUTIVE ORDER CoDE oF FAIR CoMPETITION FOR THE IRoN AND 

STEEL INDUSTRy 

An application having been duly made, pursuant to and in full compliance with the provisions of Title I of the National Industrial Recovery Act, approved June 16, 1933, for my approval a Code of Fair 

Competitjon for the Iron and Steel Industry, and hearings having been 

held thereon and the Administrator having rendered his report together 

vvith hi recommendations and finding with respect thereto, and the 

Admini trator having found that the said Code of Fair Competition 

complies in all respects with the pertinent provision of Title I of said 

Act and th~tt 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 

9669-33-2 
8 

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

otherwise, do adopt and approve the report, recommendations, and 

findjngs of the Administrator and do order that the said Code of 

Fair Competition be, and it is hereby, approved. 

(Sjgned) FRANKLIN D. ROOSEVELT. 

Approval Recommended. 

(Signed) HuGH S. JoHNSON, 

Administrator. 

THE WHITE HousE, 

August 19, 1933. 
CODE OF FAIR COMPETITION OF THE IRON AND STEEL 

INDUSTRY 

ARTICLE I-DEFINITIONS 

Wherever used in this Code or in any schedule appertaining hereto 

the terms hereinafter in this Article and in Schedule E annexed hereto 

defined hall, unless the context sh all otherwise clearly indicate, have 

the respective meanings h ereinafter in this Article and in such 

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

shall apply to the use of such term in the plural and vice versa. 

SECTIO 1. The term "the United States" means and includes all 

of the territory of the United States of America on theN orth American 

continent. 

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

United States of America. SEc. 3. The term "products" means only pig iron, iron or steel 

ingots, and the rolled or drawn iron or steel products which are generally named in Schedule F to the Code as at the time in effect and standard Tee rails of more than 60 pounds per yard, angle bars and rail 

joints, or any of such products. 

SEc. 4. The term "the Industry" means and includes the business 

of producing in the United States and selling products, or any of them. 

SEc. 5. The term "member of the Industry" means and includes 

any person, firm, association or corporation operating a plant or plants 

in the United States for the production of products, or any of them. 

SEc. 6. The term "the Code" means and includes this Code and all 

schedules annexed hereto as originally approved by the President and 

all an1endmen t.s hereof and thereof made as hereinafter in Article XII 

provided. 

SEc. 7. The term "member of the Code" means any me1nber of the 

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

in Section 3 of Article III provided. 

SEc. 8. The term "the Institute" means American Iron and Steel 

Institute a New York membership corporation. 

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

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

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

Institute at the time in office. 

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

Institute at the time in office. 

SEc. 12. The term "unfair practice" means and includes any act 

described as an unfair practice in Schedule H annexed hereto. 

SEc. 13. \Vherever used in the Code with reference to the Industry 

or any member of the Industry or any member of the Code, unless the 

context shall otherwise clearly indicate. (a) The term "plant" means only a plant for the production of 

one or more products in the Industry; 

(9) 
10 

(b) The term "prices" includes only prices for products produced 

in the Industry; 

(c) The term "wages" jncludes only wages for labor performed in 

the Industry; 

(d) The term "labor" n1eans only labor performed in the Industry; 

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

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

(f) The term "employee" n1eans only an employee in the Industry. 

SEc. 14. The term "the National Industrial Recovery Act" means 

the National Industrial Recovery Act as approved by the President 

Ju 1e 16, 1933. 

SEc. 15. The term "the effective date of the Code" means the date 

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

SEc. 16. The term "the Administrator" means the Administrator 

appointed by the President under the National Industrial Recovery 

Act and at the time in office. 

SEc. 17. The term "the Administration" n1eans the agency established pursuant to the provisions of Section 2 of the National Industrial Recovery Act. 

ARTICLE II-PURPOSE OF THE ConE 

SECTION 1. The Code is adopted pursuant to Title I of theN ational 

Industrial Recovery Act. 

SEc. 2. The purpose of the Code is to effectuate the policy of Tit]e 

I of the National Industrial Recovery Act insofar as it is applicable 

to the Industry. 

ARTICLE III-MEMBERSHIP IN THE ConE 

SECTION 1. It is of the essence of the Code that all members of 

the Industry which shall comply with the provisions of the Code 

shall be entitled to participate in its benefits upon the terms and 

conditions set forth in the Code. 

SEc. 2. Any member of the Industry is eligible for membership in 

the Code. 

SEc. 3. Any member of the Industry desiring to become a member 

of the Code may do so by signing and delivering to the Secretary a 

letter substantially in the form set forth in Schedule A annexed hereto. 

SEc. 4. The rules and regulations in respect of meetings of members of the Code are set forth in Schedule B annexed hereto. 

ARTICLE IV-HouRs oF LABOR, RATES OF PAY, AND OTHER CoNDI- TIONS OF EMPLOYMENT 

SEcTION 1. Pursuant to subsection (a) of S ction 7 of the J ational 

Industrial Recovery Act and so long as the Code shall be in fi'ect, 

the Code shall be subject to the following condition : 

(1) That employees shall have the right to oro·anizc and bargain 

collectively through representatives of their own choo.._ino·, and shall 

be free from the interference, restraint, or coercion of en1ployer. of 

labor, or their agents, in the de ignation of such repre entativ s or 

in self-organization or in other concerted ~tctivitie for the purpose 

of collective bargaining or other mutual aiel or protection; 
11 

(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 con1ply with the maximum hours of labor, 

minin1um rates of pay, and other conditions of employment, approved 

or prescribed by the President. 

SEc. 2. Since the beginning of the present depression and the consequent reduction in the total number of hours of work available in 

the Industry, its members have m.ade every effort to distribute, and 

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

work available in their plants so as to give employment to the maximum number of employees. It is the intention of the Industry to 

continue that policy insofar as practicable, to the end that the policy 

of Title I of the National Industrial Recovery Act may be effectuated, 

and that work in the Industry shall insofar as practicable be distributed so as to provide employment for the employees normally 

attached to the Industry. The basic processes in the Industry are 

of a continuous character and they cannot be changed in this respect 

without serious adverse effect upon production and employment. 

As demand for the products of the industry and, therefore, for labor 

shall increase, hours of labor for employees in the Industry must 

necessarily increase; but, except in the case of executives, those employed in supervisory capacitites and in technical work and their 

respective staffs and those employed in emergency work, insofar as 

practicable and so long as employees qualified for the work required 

shall be available in the respective localities where such work shall be 

required and having due regard for the varying demands of the consunung and processing industries for the respective products, none of 

the members of the Code shall cause or permit any employee to work 

at an average of more than 40 hours per week in any six months' 

period or to work more than 48 hours or more than 6 days in any one 

week. On or after November 1, 1933, as soon as the members of the 

Code shall be operating at 60% of capacity, they shall adjust the 

operations of their plants so that, except as to executives, those employed in supervisory capacities and in technical work and their respective staffs and those employed in emergency work, they will 

establish the 8-hour day for all their employees. For the purposes 

of this Section 2 the first six months' period for each employee in the 

employ of any member of the Code at the effective date thereof shall 

begin with that date, and the first six months period for any employee 

thereafter employed by any member of the Code shall begin with the 

date of employment of such employee by such member. After the 

date of the employment by any member of the Code of any employee 

such member shall not knowingly permit such e1nployee who also 

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

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

of the Code had all such work been performed for such mem ber. 

SEc. 3. None of the members of the Code shall employ jn or about 

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

SEc. 4. Throughout the history of the Industry geogr aplllcal wage 

differentials have existed, due in the main to differences in living costs 

and general economic conditions and the ability adequately to man 

the industries in the respective localities. The establishments in the 
12 

Industry in the different localities have been developed under uch 

differences in wages and, after a survey of the matters bearing on 

such differences in the various sections of the United States, for the 

purposes of this Article IV the wage districts described in chedule 

C annexed hereto have been established. 

SEc. 5. Until chanfSed by amendment of the Code as hereinafter 

in Article XII provided, the minimum rates of pay per hour which 

shall be paid by members of the Code for common labor (not including that of apprentices and learners) in the Indu try in the respective 

wage districts described in such Schedule C shall be the rates set 

forth in Schedule D annexed hereto . None of the members of the 

Code shall pay common laborers (not including apprentices and 

learners) in its employ in the Industry in any such district any rate 

{)f pay less than the rate specified for such district in such Schedule 

D, and any violation of this provision of the Code hall be deemed 

:an unfair practice. Such rates of pay shall not, however, be under-

'S tood to be the maximum rates of pay for their respective districts, 

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

shall be required to pay its common laborers in the Industry in any 

of such districts a rate of pay higher than the rate specified for such 

district in such ScheduleD, except as such member shall have agreed 

to pay such higher rate in any agreement heretofore or hereafter 

made by such member with its employees. Until this provision shall 

have been changed by amendment as aforesaid, each member of the 

Code will pay to each of its employees in the Industry who on July 

14, 1933, was receiving pay at a rate of pay per hour in excess of the 

rate of pay per hour then being paid by such member for comn1on 

labor a rate of pay per hour which shall be at least 15% greater than 

that which such employee was then receiving; provided, however, 

that the foregoing provision shall not be so construed as to require 

any member of the Code to make any increase in the rate of pay 

per hour to be paid by such member to any of its employee in any 

wage district that will result in a rate of pay per hour which shall be 

higher than the rate of pay per hour paid to employees doing ub- "tantially the same class or kind of labor in the same wage di trict 

by any other me1n ber of the Code which shall have increa ed its 

rates of pay per hour in accordance with such provision. In the case 

of employees (not including apprentices and learners) performing 

work for which they are paid per piece of work performed the minimum rate of pay which each member of the Code shall pay for such 

work shall be sufficient to produce at the average rate of performance 

of such work at the time prevailing at the plant of such member 

where such work i performed the minimum rate of pay per hour 

provided in the Code for common labor at such plant. 

ARTICLE V~PRon CTION AND NEw CAPACITY 

SECTION 1. It is the consensus of opinion in the Indu try that it 

i not neces ary, in order to effectuate the policy of Title I of the 

National Industrial Recovery Act, to make any p ific provi ion in 

the Code for controlling or regulatino- the volum of production in the 

Indu try or for allocatino- production or sale mnono- it 1nemb r . 

It is believed that the elimination of unfair pra ti in the Indu try 

will automatically eliminate any overproduction therein and any 
13 

alleged inequities in the distribution of production and sales among 

its members. Adequate provision shall be made under the Code for 

the collection of statistics regarding production and of other data 

from which it may be determined from time to time whether overproduction in the Industry exists and whether in the circumstances 

any restriction of production is necessary in order to effectuate the 

policy of Title I. The Board of Directors shall furnish to the Administrator summaries or compilations of such statistics and other 

data in reasonable detail. Should it at any time in the circumstances 

as they shall then exist appear to the Board of Directors that the 

policy of such Title I will not be effectuated in tl;le Industry because 

of the fact that through the Code production therein is not controlled 

and regulated, then the Board of Directors is hereby empowered, subject to the approval of the President after such conference with or 

hearing of interested persons as he may prescribe, to make, modify, 

or rescind such rules and regulations for the purpose of controlling 

and regulating production in the Industry, including the fixing of 

such liquidated damages for violations of such rules and regulations, 

as such Board shall deem to be necessary or proper in order to effectuate the policy of such Title I. All such rules and regulations from 

time to time so made and in effect shall be binding upon each member of the Code to which notice thereof shall have been given. 

SEc. 2. It is also the consensus of opinion in the Industry that, 

until such time as the demand for its products cannot adequately be 

1net by the fullest possible use of existing capacities for producing 

pig iron and steel ingots, such capacities should not be increased. 

Accordingly, unless and until the Code shall have been amended as 

hereinafter provided so as to permit it, none of the members of the 

Code shall initiate the construction of any new blast furnace or open 

hearth or Bessemer steel capacity. The President may, however, 

suspend the operation of the provisions of this section. 

ARTICLE VI-ADMINISTRATION OF THE CoDE 

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

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

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

gener.ally all such other powers and duties as shall be necessary or 

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

purpose. 

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

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

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

such Board shall otherwise provide, shall collect, file, and collate all 

statistics and other information required by the Board of Directors 

for the proper administration of the Code. 

SEc. 3. The Treasurer shall act as Treasurer under the Code and, 

under the direction of the Board of Directors, he shall have custody 

of, and have charge of the disposition of, all funds collected under the 

Code; and he shall keep proper books of account showing the collection 

and disposition thereof. 

SEc. 4. The Board of Directors shall have power from time to 

time (a) to appoint and remove, and to fix the compensation of, all 

such other officers and employees and all such accountants, attorneys, 
14 

and experts as the said Board shall deem necessary or proper for the 

purpose of administering the Code and (b) to fix the con1pensation of 

the Secretary and the Treasurer for their services in acting under the 

Code. 

SEc. 5. The expenses of administering the Code shall be borne by 

the members thereof. The Board of Directors may from time to time 

make such assessments on account of such expenses against the members of the Code as it shall deem proper, and such assessments shall 

be payable as such Board shall specify. The part of such expenses 

which shall be assessed against each member of the Code shall bear 

the same relation to the total thereof as the number of votes which, 

pursuant to the provisions of the Code, such member might cast at a 

meeting of the members thereof held at the time of any such assessment shall bear to the total number of votes that might be cast 

thereat by all the then members of the Code. Failure of any member 

of the Code to pay the amount of any assessment against such member 

for a period of thirty days after the date on which it became payable 

shall constitute a violation of the Code. 

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

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

effectuate the purpose of the Code, and it may delegate to any such 

committee generally or in particular instances such of the powers and 

duties of the Board of Directors under the Code as such Board shall 

deem necessary or proper in order to effectuate such purpose. Any 

member of any such committee may be a member of the Board of 

Directors or an officer or a director of a member of the Code or a 

person not having any official connection with any member of the 

Code or with the Institute, as the Board of Directors shall deem 

proper. 

SEc. 7. The members of the Code recognize that questions of public 

interest are or may be involved in its administration. Accordingly, 

representatives of the Administration consisting of the Administrator 

and one or two other persons appointed by him (who shall be persons 

not having or representing interests antagonistic to the intere ts of 

n1embers of the Industry) shall be given full opportunity at such time 

as shall be reasonably converuent to discuss with the Board of Directors or any committees thereof any n1atters relating to the administration of the Code and to attend meetings of the Board at which 

action on any such matters shall be undertaken and to make reconlmendations as to methods or measures of adnunistering the Code. 

Due notice of all such meetings of the Board of Directors shall be 

given to such repre entatives of the Administration. The re ord 

of the Board of Directors relating in any way to the admini tration £ 

the Code shall be open to such r presentatives at all rea onable in1e . 

They shall be afforded by the Board of Directors complct acce at 

all time to all record , stati ti cal material, or other inforn1ation 

furnished or readily available to the Board of Directors in onne tion 

with, or for the purpose of, the administration f the ode. The 

Board of Directors, acting directly or through on or 1nore comnuttee 

appointed by it, hall gi c due c n ideration to all reque t r recommendations made by such repre entatives of the Admini tration and 

render every po sible a i tance to uch rcpre entative in obtaining 

full information concerning th operation and admini tration of th 

Code, to the end that the Pre ident 11111 be fully advi ed regarding 
15 

such operation and admini tration through reports that may be made 

to him fr01n time to tin1e by uch representatives, and to the end thd.t 

the President may be assured that the Code and the administratjon 

thereof do not promote or permit monopolies or monopolistic practices, or eliminate or oppress small enterprises, or operate to discriminate against them and to provide adequate protection of consumers, 

competitors, employees, and others concerned and that they are in 

furtherance of the public interest and operd.te to effectuate the purposes of Title I of the National Industrial Recovery Act. 

ARTICLE VII-PRICES AND TERMS OF PAYMENT 

None of the members of the Code shall make any sale of any 

product at a price or on terms and conditions more favorable to the 

purchaser thereof than the price, terms, or yonditions established by 

such member in accordance with the provisions of Schedule E annexed 

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

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

contract of sale of any product at a price or on terms and conditions 

more favorable to the purchaser thereof than the price, terms, and 

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

making of such contract of sale. 

ARTICLE VIII-UNFAIR PRACTICES 

For all purposes of the Code the acts described in Schedule H 

Annexed hereto shall constitute unfair practices. Such unfair 

practices and all other practices which shall be declared to be unfair 

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

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

deemed to be unfair methods of competition in commerce within 

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

and the using or employing of any of them shall be deemed to be a 

violation of the Code, and any member of the Industry which shall 

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

be guilty of a violation of the Code. 

ARTICLE IX-REPORTS AND STATISTICS 

SECTION 1. The Board of Directors shall have power from time to 

time to require each member of the Code to furnish to the Secretary 

for the use of the Board of Directors such information concerning 

the production, shipments, sales, and unfilled orders of such member 

and the hours of labor, rates of pay, and other conditions of employment at the plant or plants of such member and such other information as the Board of Directors shall deem necessary or proper in 

order to effectuate the purpose of the Code and the policy of Title I 

of the National Industrial Recovery Act.· The Board of Directors 

mav require that any such information be furnished periodically 

at such times as it shall specify and may require that any or all 

information furnished be sworn to or otherwise certified or authenticated as it shall prescribe. Failure of any member of the Code 

9669-33-3 
16 

promptly to furnish to the Secretary information required by the 

Board of Directors and substantially in the form prescribed by it, 

shall constitute a violation of the Code. The Board of Directors 

shall not require any information regarding trade secrets or the names 

of the customers of any member of the Code. 

SEc. 2. Any or all information furnished to the Secretary by any 

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

verification by an examination of the books and accounts and records 

of such member by any accountant or accountants or other person or 

persons designated by the Board of Directors, and shall be so checked 

for such purpose if the Board of Directors shall require it. The cost 

of sueh examination shall be treated as an expense of administering 

the Code; provided, however, that, if upon such examination any such 

information shall be shown to have been incorrect in any material 

respect, such cost shall be paid by the member of the Code which 

furnished such information. 

SEc. 3. The Board of Directors shall require the members of the 

Code from time to time to furnish such information as shall be nece - sary for the proper administration of the Code. 

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

any information furnished to the Secretary in accordance with the 

provisions of the Code is of a confidential character in the interest 

of the member of the Code which shall have furnished it and that the 

publication thereof is not essential in order to effectuate the policy 

of Title I of the National Industrial Recovery Act, such information 

shall be treated by the Board of Directors and by the other members 

of the Code, if any knowledge of it shall have come to them, as strictly 

confidential; and no publication thereof to anyone or in any manner 

shall be made other than in combination with similar information 

furnished by other members of the Code, in which case the publication shall be made only in such manner as will avoid the disclosing 

separately of such confidential information. 

SEc. 5. Summaries or compilations in reasonable detail of all information which shall be furnished to the Secretary pursuant to the 

provisions of this Article IX shall be made periodically and sent to 

the Administrator. 

ARTICLE X-PENALTIES AND DAMAGES 

SECTION 1. Any violation of any provision of the Code by any 

member of the Industry shall constitute a violation of the Code 

by such member. 

SEc. 2. Recognizing that the violation by any member of the Code 

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

disrupt the normal course of fair competition in the Industry and 

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

be impossible fairly to assess the amount of such damage to any 

member of the Code, it is hereby agreed by and among all members 

of the Code that each member of the Code which shall violate any 

such provision shall pay to the Treasurer as an individual and not 

as treasurer of the Institute, in trust, as and for liquidated damages 

the sum of $10 per ton of any products sold by such member in violation of any such provision. 
17 

SEc. 3. Except in cases for which liquidated damages are fixed in 

the Code and in cases which shall give rise to actions in tort in favor 

of one or n1ore members of the Code for damages suffered by it or 

them, tlie Board of Directors shall have power from time to time to 

establish the amount of liquidated damages payable by any member 

of the Code upon the commission by such member of any act constituting an unfair practice under the Code and a list of the amounts 

so fixed shall from time to time be filed with the Secretary. Upon 

the commission by any member of the Code of any act constituting 

an unfair practice under the Code and for which liquidated damages 

are not fixed in the Code or which does not give rise to an action in 

tort in f~ vor of one or more mem hers of the Code for damages suffered 

by it or them, such member shall become liable to pay to the Treasurer 

as an individual and not as treasurer of the Institute, in trust, liquidated damages in the amount at the time established by the Board 

of Directors for such unfair practice and specified in the list then on 

file with the Secretary as aforesaid. 

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

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

held and disposed of by him as part of the funds collected under the 

Code, and each member of the Code not guilty of the unfair practice 

in respect of which any such amount shall have been paid or collected 

shall be credited with its pro rata share of such amount on account of 

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

provision of the Code) due or to become due from such member under 

the Code, or, in the case of any excess, as shall be determined by the 

Board of Directors, such pro rata share to be computed on the same 

basis as the last previous assessment made against such member on 

account of the expenses of administering the Code as hereinbefore in 

Section 5 of Article VI provided. All rights of any person who shall 

at any time be the Treasurer in respect of any amounts which shall 

be payable to him because of the commission by any member of the 

Code of any act constituting an unfair practice under the Code, 

whether payable under the provisions of this Article X or under any 

other provision of the Code, shall pass to and become vested in his 

successor in office upon the appointment of such successor. 

SEc. 5. Each member of the Code by becoming such member agrees 

with every other member thereof that the Code constitutes a valid and 

binding contract by and among all members of the Code, subject, 

however, to the provisions of Section 6 of Article XI, and that, in 

addition to all penalties and liabilities imposed by statute, any violation of any provision of the Code by any member thereof shall constitute a breach of such contract and shall subject the member · guilty of such violation to liability for liquidated damages pursuant 

to the provisions of the Code. Each member of the Code by becoming such member thereby assigns, transfers, and delivers to the Treasurer as an individual and not as treasurer of the Institute, in trust, 

all rights and causes of action whatsoever which shall thereafter 

accrue to such member under the Code for such liquidated damages 

by reason of any violation of the Code by any other member thereof, 

and thereby designates and appoints the Treasurer as such individual 

the true and lawful attorney in fact of such member to demand, sue 

for, collect, and receipt for any and all amounts which shall be owing 

to such member in respect of any such right or cause of action, and to 
18 

compromise, settle, satisfy, and discharge any such right or cause of 

action, all in the name of such member or in the nan1e of the Treasurer 

individually, as he shall elect. 

SEc. 6. Anything in the Code to the contrary notwithstanding, the 

Board of Directors by the affirmative vote of two thirds of the whole 

Board may waive any liability for liquidated damages imposed by or 

pursuant to any provision of the Code for any violation of any provision thereof, if in its discretion it shall decide that such violation 

was innocently made and that the collection of such damages will not 

to any material extent tend to effectuate the policy of Title I of the 

National Industrial Recovery Act. 

ARTICLE XI-GENERAL PROVISIONS 

SECTION 1. Any notice, demand, or request required or permitted 

to be given to or made upon any member of the Code shall be sufficiently 

given if mailed postage prepaid addressed to such member at the 

address of such member on file with the Secretary. A waiver in 

writing signed by any member of the Code of any such notice, demand, 

or request and delivered to the Secretary shall be deemed to be the 

equivalent of a notice, demand, or request duly given or made, whether 

or not such waiver was signed and delivered before the time when 

such notice, demand, or request was required or permitted to be given 

or made. 

SEc. 2. Nothing contained in the Code shall be deemed to constitute the members of the Code partners for any purpose. None of 

the members of the Code shall be liable in any manner to anyone for 

any act of any other member of the Code or for any act of the Board 

of Directors, the Treasurer or the Secretary, or any committee, officer, 

or employee appointed under the Code. None of the n1embers of 

the Board of Directors or of any committee appointed under the 

Code, nor the Treasurer, nor the Secretary, nor any officer or employee 

appointed under the Code, shall be liable to anyone for any action or 

omission to act under the Code, except for his wilful misfeasance or 

nonfeasance. Nothing contained in the Code shall be deemed to confer 

upon anyone other than a member of the Code any right, claim, or 

demand whatsoever not expressly provided by statute against any 

member of the Code or against any member of the Board of Directors 

or of any committee appointed under the Code or against the Treasurer or the Secretary or any officer or employee appointed under the 

Code. 

SEc. 3. As soon as members of the Industry which would, if then . men1bers of the Code, have the right to cast at least 75% of all the 

votes that might be cast at a meeting of the members of the Cod , if 

all members of the Industry were then members of the Code and 

present at such meeting, shall sign and deliver to the ecretary letters 

substantially in the form set forth in Schedule A annexed h reto, the 

Board of Director hall submit the Code to the Pre ident pur uant 

to the provisions of Title I of the National Industrial Reco ery Act 

and, upon the approval of the Code by the Pre ident pursuant to the 

provisions of such Title I, it shall constitute a binding contract by 

and among the member of the Code and the provi ions thereof shall 

be the standard of fair con1petition for the Industry; ubject, how ver, 
19 

to an1endment or termination as hereinafter in Article XII provided, 

and subject also to the provisions of Section 6 of tbis Article XI. 

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

provision of Title I of the National Industrial Recovery Act the provisions of the Code shall apply to and be binding upon every member 

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

the Code. No member of the Industry wbich shall not also be a 

member of the Code shall be entitled to vote at any meeting of members of the Code or to any other right, power, or privilege provided 

in the Code for the members thereof. 

SEc. 5. The Board of Directors shall have power from time to 

tin1e to interpret and construe the provisions of the Code, including, 

but without any limitation upon the foregoing, the power to determine what are products within the meaning of that term as it is used 

in the Code. Any interpretation or construction placed upon the 

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

all members of the Code 

SEc. 6. The members of the Code recognize that, pursuant to subsection (b) of Section 10 of the National Industrial Recovery Act, 

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

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

ARTICLE XII-AMENDMENTS-TERMINATION 

SECTION 1. The Code may be amended at any time in the manner 

in this Section 1 provided. The changing of any schedule hereto or 

the addition hereto of any new schedule shall constitute an amendment of the Code. All amendments shall be proposed by the Board 

of Directors by vote of the majority of the members thereof at the 

time in office. Each amendment so proposed shall be submitted to 

a meeti.ng of the members of the Code which shall be called for such 

purpose upon notice given in accordance with the provisions of Section 1 of Schedule B and Section 1 of Article XI of the Code. If at 

such meeting members of the Code having the right to cast at least 

75% of all the votes that might be cast at such meeting, if all the 

men1bers of the Code were present thereat, shall vote in favor of the 

adoption of such amendment, such amendment shall be submitted 

by the Board of Directors to the President for approval, if approval 

thereof by hi1n shall then be required by law. Every such amendment shall take effect as a part of the Code upon the adoption thereof 

by the members of the Code as above provided and the approval 

thereof by the President, if approval thereof by him shall be required 

as aforesaid. 

SEc. 2. The Code shall continue in effect for a period of ninety 

(90) days after the effective date thereof, in order to afford to the 

President an opportunity to determine upon the recommendations 

of the representatives of the Administration, for which provision has 

heretofore been made in Article VI, whether its provisions will effectuate the purposes of Title I of the National Industrial Recovery 

Act, as further defined in said Article VI, subject, however, to anlend- ment at any time as hereinbefore provided, and also subject to the 

reserved po·wer of the President to cancel or modify his approval 

thereof. The Code shall continue in effect after the expiration of 

said period of ninety (90) days in the absence of the exercise of such 
20 

reserved power on the part of the President, or in the absence of 

the exercise by members of the Code of the power which they hereby 

reserve to terminate the Code at any time after the expiration of 

said period of ninety (90) days by the same action by them as is 

above provided for the amendment thereof. When so terminated all 

obligations and liabilities under the Code shall cease, except those 

for unpaid assessments theretofore made in accordance with the 

provisions of the Code and those for liquidated damages theretofore 

accrued under any provision of the Code. 

AuGusT 17, 1933. 
ScHEDULE A--FoRM OF LETTER OF AssENT TO THE CoDE 

To the Secretary of American Iron and Steel Institute, Empire State Building, 

New York, N.Y. 

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

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

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

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

have been approved by the President of the United States of America as therein 

provided, or as of the date on which this letter shall have been delivered, if 

delivery thereof shall have been made subsequent to the date of which the Code 

shall have been approved by said President as aforesaid, by the signing and 

delivery of this letter becomes a member of the Code and. effective as aforeqaid 

hereby agrees with every person, firm, association, and corporation whc shall 

then be or thereafter become a member of the Code that the Code shall constitute 

a valid and binding contract between the undersigned and all such other members. 

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

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

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

in trust, all rights and causes of action whatsoever hereafter accruing to the 

undersigned under the Code for liquidated damages by reason of any violation 

thereof by anyone, and (b) hereby designates and appoints said Treasurer as 

such individual the true and lawful attorney in fact of the undersigned, to demand, sue for, collect, and receipt for any and all amounts which shall be owing 

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

the name of the undersigned or in the name of said Treasurer, as said Treasurer 

shall elect. 

For all purposes of Section 1 of Article XI of the Code the address of the undersigned, until it shall file with the Secretary of American Iron and Steel Institute 

written notice of a change of such address, shall be as set forth at the foot of this 

letter. 

Very truly yours, 

(21) 
ScHEDULE B-THE RuLEs AND REGULATIONS IN REsPECT oF MEETINGS oF 

MEMBERS OF THE ConE 

SECTION 1. A meeting of members of the Code may be called and held at any 

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

right to cast at least 50% of all the votes that might be cast at such meetings if 

all the members of the Code were present thereat, on not less than three days' 

notice to each of such members stating the time and place of such meeting and 

the purposes thereof. 

SEc. 2. At each meeting of the members of the Code each member thereof 

shall have as many votes as shall equal the quotient obtained by dividing by 

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

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

preceding calendar year. Fractions in such quotient shall be disregarded; provided, however, that each member of the Code shall have at least one vote. All 

questions as to the number of votes which each member of the Code shall be entitled to cast at any meeting of the members thereof shall be determined by the 

Board of Directors. Any person or firm who shall be a member of the Code may, 

and any association or corporation which shall be a member of the Code shall, 

vote at meetings of the members of the Code by proxy in writing duly executed 

by such member and filed with the Secretary. Any such proxy may be for a 

specified meeting or be a general proxy for any or all meetings that may be held 

until such proxy shall have been revoked by an instrument in writing duly executed by the member of the Code which gave such proxy and filed with the 

Secretary. SEc. 3. At each meeting of the members of the Code, members thereof having 

the right to cast at least 75% of all the votes that might be cast at such meeting 

if all the members of the Code were present thereat, shall constitute a quorum for 

the transaction of business at such meeting. 

(22) 
ScHEDULE C-DESCRIPTION OF WAGE DISTRICTS 

1. Eastern District.-Comprises that part of the United States which is north 

of the State of Virginia and east of a line drawn north and south through the 

most easterly point of Altoona, Pennsylvania; that part of the State of Maryland which is west of such line; and the Counties of Monongalia, Marion, and 

Harri on in the State of West Virginia. 

2. Johnstown District.-Comprises Cambria County and the City of Altoona 

in the State of Pennsylvania. 

3. Pittsburgh District.-Comprises the Counties of Westmoreland, Fayette, 

Greene, Washington, Allegheny, Beaver, Butler, Armstrong, and Jefferson and 

that part of the County of Clearfield which is west of a line drawn north and 

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

4. Youngstown Valley District.-Comprises the Counties of Lawrence, Mercer, 

and Venango in the State of Pennsylvania and the Counties of Trumbull, Mahoning, and Columbiana in the State of Ohio. 

5. North Ohio River District.-Comprises the cities along the Ohio River 

north of the City of Parkersburg, West Virginia, and the Counties of Belmont 

and Jefferson in the State of Ohio and the Counties of Marshall, Ohio, Brook, and 

Hancock in the State of West Virginia. 

6. Canton, Massillon, and Mansfield District.-Comprises the Counties of 

Stark, Tuscarawas, Summit, and Richland in the State of Ohio. 

7. Cleveland District.-Comprises the Counties of Ashtabula, Lake, Cuyahoga, 

and Lorain in the State of Ohio. 

8. Buffalo District.-Comprises that part of the State of New York west of a 

line drawn north and south through the most easterly point of Altoona, Pennsylvania, and Erie County in that State. 

9. DetToit-Toledo District.-Comprises the Counties of Seneca and Lucas in 

the State of Ohio and the Counties of Monroe, Lenawee, Jackson, Wayne, 

Oakland, Macomb, and Washtenaw in the State of Michigan. 

10. South Ohio RiveT District.-Comprises the State of Kentucky, the City of 

Parkersburg, W.Va., the cities along the Ohio River south of said City, the 

Counties of Guernsey, Muskingum, Jackson, and Butler in the State of Ohio 

and the County of Wood in the State of West Virginia. 

11. Indiana-Illinois-St. Louis District.-Comprises all the State of Indiana, 

except the County of Lake; all the State of Illinois, except the Counties of Lake 

and Du Page and the Chicago Switching District; the City of St. Louis and the 

County of St. Louis in the State of Missouri; and the County of Rock in the State 

of Wisconsin. 

12. Chicago District.-Comprises the Chicago Switching District; the Counties 

of Lake and Du Page in the State of Illinois; the County of Lake in the State of 

Indiana; and the Counties of Kenosha, Racine, and Milwaukee in the State of 

Wisconsin. 

13. Southern District.-Comprises all that part of the United States south of 

the States of Maryland, West Virginia, Kentucky, and Missouri, and the States 

of Texas and Oklahoma, but does not include the County of Jefferson in the State 

of Alabama. 

14·. Birmingham District.-Comprises the County of Jefferson in the State of 

Alabama. 

15. Kansas City District.-Comprises the County of Jackson in the State of 

Missouri. 

16. Duluth District.-Comprises the County of St. Louis in the State of 

Minnesota. 

17. Colorado District.-Comprises the State of Colorado. 

18. Utah District.-Comprises the State of Utah. 

19. Seattle District.-Comprises the County of King in the State of Washington and the County of Multnomah in the State of Oregon. 

20. San Francisco Dist1·ict.-Compri es the Countie of San Mateo, Alameda, 

Sacramento, and Contra Costa in the State of California. 

21. Los Angeles District.-Comprises the County of Lo Angeles in the State 

of California. 

(23) 
ScHEDULE D-MINIMUM RATES OF PAY FOR CoMMON LABOR 

Per hour 

1. Eastern District________________________________________________ ~0. 35 

2. Johnstown District._____________________________________________ . 37 

3. Pittsburgh District_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . 40 

4. Youngstown Valley Di trict______________________________________ . 40 

5. North Ohio River District_______________________________________ . 40 

6. Canton, Massillon, and Mansfield District_________________________ . 37 

7. Cleveland District___ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . 40 

8. Buffalo District______ _________ __________________________ __ __ ___ . 38 

9. Detroit-Toledo District__________________________________________ . 40 

10. South Ohio River District___________________ __ _________________ . 37 

11. Indiana-Illinois-St. Louis District __ __ _______ _____________________ . 37 

12. Chicago District____________________ __ _________ ______ __________ . 40 

13. Southern District_______________________ __ _____________________ . 25 

14. Birmingham District____________________________ _______________ . 27 

15. Kansas City District___________________________________________ . 35 

16. Duluth Di trict_______________________________________________ . 37 

17. Colorado District______ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . 40 

18. Utah District_____________________ ___________________________ _ . 39 

19. Seattle District______ _______________________________ __ _________ . 38 

20. San Francisco District_________ ___ ____ _________________________ . 37 

21. Los Angeles District_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . 35 

(24) 
• 

ScHEDULE E-CoNCERNING PRicEs AND TERMS oF PAYMENT 

SEcTION 1.' Wherever used in the Code the terms hereinafter in this Section 

1 defin ed shall, unles the context shall otherwise clearly indicate, have the 

resP.ective meanings hereinafter in this Section 1 set fort h. The definition of 

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

vice ver a. 

(a) Until Schedule F of this Code shall have been amended as in Article X II 

of the Code provided, the term "basing point" for any product means one of the 

places 1i tecl in such Schedule F as a basing point for such product. Thereafter 

the term ·hall mean one of the places listed in such Schedule F as at the time in 

effect as a basing point for such product. 

(b) The t erm "base price " of any product means the price for such product 

f.o .b. a basing point, before any extras in respect of such product shall be added 

or an~· discounts for early payment or deduct ions shall be allowed or made. 

(3) The term "period of free credit" means the period of time between the 

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

from and after which such purchaser shall be required to pay interest on the 

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

paid prior to the expiration of such period. 

(d) The term " date of invoice" means the date of the invoice of any product. 

(e) The term "discount for early payment" means the amount of the deduction 

allowed for the payment of an invoice of products before the expiration of the 

period of free credit in respect thereof. 

(f) The term "an affiliated group" means one or more corporations ronnected 

through stock ownership with a common parent corporation, if (I) at least 75% 

of the stock of each of such corporations (except such common p arent. corporation) 

is owned directly by one or more of the other corporations, and (2) such common 

parent corporation owns directly at least 75% of the stock of at least one of the 

other corporations. The term "an affiliated company of a member of the Code" 

means (1) a corporation which is one of an affiliated o-roup that also includes 

such member of the Code, or (2), in case the member of the Code is a person, 

firm, or a sociation, a corporation at least 75% of the stock of which is owned by 

such member. For the purposes of this paragraph (f) the term "stock" does not 

include n01woting stock which is limited and preferred as to dividends. 

SEc. 2. Each member of the Code shall, within t en days after the effective 

date of the Code, file with the Secretary a list showing the base prices for all its 

products, and from and after the expiration of such t en days such member shall 

at all times maintain on file with the Secretary a list showing the base prices for 

all its products and shall not make any change in such base prices except as 

provided in this Schedule E. Each such list shall state the date upon which it 

shall become effective, which date shall be not less than ten days after the da t e of 

filing such list with the Secretary; provided, however, that the first list of base 

prices filed by any member of the Code as above provided shall take effect on 

the date of filing thereof. None of the base prices shown in any list filed by any 

member of the Code as herein provided shall be changed except by the filing by 

such memb r with the Secretary of a new list of its base prices, which shall 

become effective on the effective date therein specified which shall not be less 

than t en days after the date on which such new price list hall have been so filed. 

In the case of pipe of sizes or kinds which a re sold on a list and discount basis, 

for the purposes of this Section 2 the list of base prices shall consist of a price list 

and one or more basing discount lists, from which the base prices of such pipe 

shall be determined; provided, however, that in the case of oil country tubular 

goods there shall be filed in lieu of a list of base prices a price list and one or more 

basing discount lists from which the delivered prices of such goods shall be 

determined. 

SEc. 3. Except as hereinafter otherwise provided in respect of standard Tee 

rail of more than 60 pounds per yard, angle bars, and rail joints, the base price 

for any product shown in any list of base prices filed by a member of the Code 

in accordance with the provisions of the foregoing Section 2 shall be as follows: 

(25) 
26 

(a) If such member shall operate a plant for the production of such product 

which is located at a basing point for such product, f.o.b. such basing point, or 

(b) if such member shall operate a plant for the production of such product 

which is not located at a basing p oint for such product, f.o.b. the basing point 

for such product nearest in t erms of all-rail freight rates to such plant, or (c) if 

any Gulf or Pacific Coast port shall be listed as a basing point in Schedule F 

of the Code as at the time in effect, f.o.b. cars dock such port. Except as otherwise provided in this Schedule E, each member of the Code shall file with the 

Secretary and maintain on file with him a list showing the base price for each 

of its products for each basing point for such product at which a plant of such 

member for the manufacture of such product shall be located and for each basing 

point for such product which shall be nearest in terms of all-rail freight ra tes to 

any plant of such member for the manufacture of such product not located at a 

basing point for such product; and if any Gulf or Pacific Coast port shall be listed 

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

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

shown in the list so filed shall constitute the published base prices of such member 

for the products and for the basing points shown in such list. E xcept as aforesaid, none of the members of the Code shall file any list of base prices showing any 

price for any of its products other than the base price for such product f.o.b. 

the basing point or basing points for such products as hereinbefore provided. 

The published base price of each such member for any product (except standard 

Tee rails of more than 60 pounds per yard, angle bars, and rail joints) for any 

basing point for such product other than that or those shown in the list of base 

prices so filed by such member shall be deemed to be the lowest base price for 

such product at such other basing point which shall be shown in the list of base 

prices filed by any other member of the Code and then in effect. All base prices 

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

angle bars and raiJ joints shall be f.o.b. mill of the producer thereof, or, in the 

case of rails, angle bars, and rail joints carried by water from any Atlantic Coast 

or Gulf port to any Gulf or Pacific Coast port, c.i.f. the port of destination. 

Lists of prices filed with the Secretary pursuant to the foregoing Section 2 and to 

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

SEc. 4. Except as otherwi e provided in this Schedule E of the Code, all prices 

quoted and billed by any member of the Code for any product (except . tandard 

Tee rails of more than 60 pounds per yard, angle bars and rail joints and oil 

country tubular goods, which shall be quoted and billed as hereinafter provided) 

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

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

by, and the deduction , if any, that ma~' be made pursuant to, the provi ions of 

the Code) shall be not less than the sum of (a) the published ba e price of . uch 

member for such product effective at the time of the sale thereof and (b) the allrail published tariff freight charges from the basing point on which . uch I a e 

price is based to the place of deli very to the purchaser thereof or, (1) if such 

place of delivery shall be at Ruch basing point, the published tariff witching 

charge. to Ruch place of delivery from t he p lant of any member of the Code for 

the production of such product at such basing point nearest in t erm of uch 

switching charges to such place of delivery; or, (3) if such place of deliYcry hall 

be at a Gulf or Pacific Coa t port that i li ted in Schedule Fa a ba ing point, the 

published tariff switching charge to such place of delivery from the dock f r di - charging product neare t in term of such switching charg to uch place of 

delivery; provided, hO\Yever, that (a) in any ca e in \Yhich uch product hall be 

deliyered by other than all-rail tr nsportation, the member f the Code . elling 

such prodnct may a llow to the purcha' er a reduction in the deliver d price oth r-

"·ise chargeable under this Section -! at a rate which shall have be n previou ·ly 

approved by i.he Board of Director and filed with the Secretary; and (b) in the 

ca e of plates, shapes, or bars intended for fabncation for an identified trncturc, 

for the pmpose of establishing the deliv red price thereof, the place of d liv ry 

hall be deemed to be the freight tatiou at or nearc t to the place at \Yhich nch 

tructnre i, to be erected and not the hop of the fabri ator; and (c) . ubj ct a 

hereinafter in thi ection 4 provided, if any list of pric s filed with the Seer tary 

by an y member of the Code pur. nnut to thi. Schedul E and at th tim in cff ct 

hall show a specified rate of deduction from the price of any pro luct to b allow d 

by such member on any ale of u h product to any jobber for re. alo, uch m mber may, from and aft r th dat on \Yhich uch 1Lt .hall hav bee me eff cti\' , allow to any job! cr to whom u h memb r . hall ll , uch product for r ale a 

deduction from uch price to uch jobb r for such pr duct at a rate not gr ater 
' 

27 

than the rate so shown in such list; and provided, further, that the Board of Direc- tors by the affirmative vote of three fourths of the whole Board may permit any 

member of the Code in special instances or members of the Code generally to sell 

or contract for the sale of any product produced by such member or members at a 

base price which shall be less than the then published base price of such member 

or members for such product at the respective basing points therefor of such 

members, if by such vote such Board shall determine that the making of such sale 

or contract of sale at such less base price is in the interest of the Industry or of any 

other branch of industry and will not tend to defeat the policy of Title I of the 

National Industrinl Recovery Act by making possible the using or employing of 

an unfair practice. The Board of Directors shall prescribe such rules and regulations as it shall deem proper by which the question of whether or not any purchaser or prospective purchaser of any product for resc:tle is a jobber shall be determined, and in granting any permission as aforesaid, the Board of Directors shall 

prescribe such rules and regulations in respect thereof as in its judgment shall be 

necessarv in order to insure to the members of the Code that action in accordance 

with any such permission shall not result in an unfair practice; and th ereafter 

such Board may by like vote rescind any permission so granted or modify, cancel, 

or add to any rules and regulations so prescribed. The Secretary shall send to 

each member of the Code a copy of all such rules and regulations prescribed by 

such Board with respect to the determination of the question of whether a purchaser or prospective purchaser for resale is a jobber and he shall give notice in 

writing of all action so taken by the Board of Directors to each member of the Code 

which at the time shall be engaged in producing the kind of product in respect 

of which any such permission was granted. Before any member of the Code shall 

allow any such deduction to any jobber or sell for resale to any purchaser who 

shall not be a jobber any product pursuant to any permission so granted to such 

member, such member shall secure from such jobber or such other purchaser an 

agreement substantially in a form theretofore approved by the Board of Directors and filed with the Secretary whereby such jobber or other purchaser shall 

agree with such member (a) that such jobber or other purchaser will not, without 

the approval of the Board of Directors, sell such product to any third party at a 

price which at the time of the sale thereof shall be less than the price at which such 

member might at that time sell such product to such third party, and (b) that, 

if such jobber or such other purchaser shall violate any such agreement, he shall 

pay to the Treasurer as an individual and not as treasurer of the Institute, in 

trust, as and for liquidated damages the sum of $10 per ton of any product sold 

by such jobber or such other purchaser in violation thereof. Except as aforesaid, 

all prices quoted and billed by any member of the Code for standard Tee rails 

of more than 60 pounds per yard, angle bars, and rail joints sold by it from and 

after ten days after the effective date of the Code (disregarding extras and deductions as aforesaid) shall be not less than the published base price of such member 

for such rails, angle bars, and rail joints effective at the time of the sale thereof 

f.o.b. mill of the producer, or, in the case of rails, angle bars, or rail joints carried 

by water from any Atlantic Coast or Gulf port to any Gulf or Pacific Coast port, 

c.i.f. the port of destination. Except as aforesaid, all prices quoted and billed by 

any member of the Code for oil country tubular goods sold by it from and after 

ten days after the effective date of the Code (disregarding extras and deductions 

as aforesaid) shall be not less than the delivered price for such goods determined 

by deducting from the published list price of such member for such goods effective at the time of the sale thereof the published basing discounts applicable to 

such goods effective at such time. In case at the effective date of the Code any 

valid, firm contract to which a member of the Code shall be a party shall exist 

for a definite quantity of any product or for all or a substantial part of the requirements of the purchaser thereof (a) at a fixed price, or (b) at a price that can be 

definitely determined in accordance with the provisions of such contract, or (c) 

at the market price for such product at the date when a definite quantity thereof 

shall be specified under such contract and such contract covered a sale of 20% 

or more of the total quantity of such product produced and sold in the United 

States in the calendar year 1932, it is recognized that such contract will tend to 

establish the market price for such product during the remainder of its life and 

that, if the other members of the Code which produce and sell such product 

shall by the foregoing provisions of this Schedule E be prevented from selling 

such product during the remainder of the life of such contract at as favorable a 

price and on as favorable terms and conditions as t hose provided for in such 

contract, then unfair competition as between the member of t he Code which 

.shall be a party to such contract and the other meml ers thereof and also as be-
28 

tween the other party to such contract and its competitors may result. Accordingly, anything herein to the contrary notwithstanding, <luring the remainder of 

the life of such contract any member of the Code may sell such product at a price 

and on terms and conditions as favorable as (but not more favorable than) the 

price, terms, and conditions provided for in such contract. 

SEc. 5. The Board of Directors shall have power on its own initiative, or on the 

complaint of any member of the Code, to investigate any base price for any 

product at any basing point shown in any list filed with the Secretary by any 

member of the Code, and for the purpose of the investigation thereof to require 

such member to furnish such information concerning the cost of manufacturing 

such product as the Board of Directors shall deem necessary or proper for such 

purpose. If the Board of Directors after such investigation shall determine 

that such base price is an unfair base price for such product at such basing point, 

having regard to the cost of manufacturing such product, and that the maintenance of such unfair base price may result in unfair competition in the Industry, 

the Board of Directors may require the member of the Code that filed the li tin 

which such unfair base price is shown to file a new list showing a fair base price 

for such product at such basing point, which fair base price shall become effective 

immediately upon the filing of such list. If such member of the Code shall not 

within ten days after notice to it of such determination by the Board of Directors 

file a new list showing such fair base price for such product at such ba ing point 

the Board of Directors shall have power to fix a fair base price for such product 

at such basing point, which fair base price, however, shall not be more than the 

base price of any other member of the Code at that time effective for such product 

at such basing point and in respect of which the Board of Directors shall not 

theretofore have begun an investigation or a complaint shall not have been made 

by any member of the Code. When the decision of such Board fixing such fair base 

price shall have been filed with the Secretary and the Secretary shall have given 

notice thereof to such member, such fair base price shall be the base price of 

such member for such product at such basing point, uqtil it shall have been 

changed as in the Code provided. A notice of all decisions of the Board of Directors under this Section 5, together with the reasons therefor, shall be filed with 

the President. 

SEc. 6. The Board of Directors by the affirmative vote of a majority of the 

whole Board may establish maximum rates of discount and maximum periods of 

free credit, other than those specified in Schedule G of the Code, which may be 

allowed by any member of the Code with respect to the sale of any product or 

products to jobbers for resale as permitted by the provisions of Section 4 of this 

Schedule E. The Secretary shall give notice in writing of any action taken by the 

Board of Directors in accordance with the provision of this Section 6 to each 

member of the Code which at the time shall be engaged in producing the kind of 

product in the sale of which any such other rates or periods hall have been e:stablished by such action. Except as aforesaid and except as elsewhere in this Schedule E of the code otherwise provided, the maximum rates of discount for early 

payment and the maximum periods of free credit which may be allowed by any 

member of the Code shall be the rates and periods specified in aid Schedule G. 

Except as aforesaid, all invoices for products sold by any member of the Code 

after the effective date of the Code shall bear interest from and after the expiration 

of the period of free credit at a rate which shall be not le s than the then current 

rate established by the Board of Directors and filed with the Secretary. Nothing 

in the Code contained shall prevent any member of the Code from allowing 

credit to any purchaser or allowing any purchaser to delay payment in re p ct of 

any invoice for a longer period than the maximum period of free credit pecified 

in such Schedule G or such other maximum period as shall be established in 

accordance with the provisions of this Section 6; but, if any member of the Code 

shall allow credit to any purcha er or allow any purcha er to delay payment in 

respect of any invoice for a period longer than uch maximum period of free 

credit, then such member shall charge and collect intere t on the amount in 

respect of which credit shall be so allowed or the payment of which shall have I en 

so delayed at a rate not l ss than the current rate establi hed and filed a afor aid. 

SEc. 7. Except as in this Schedule E of the Code otherwise provi led, any 

extras added to, and any deductions made from, the ba e price for any product 

sold by any member of the Code in determining it quoted or bill d pric for . uch 

product shall be uniform for all members of the Code. The rate of ' UCh extra 

and of such deductions hall be those approved from time to tim by the Board 

of Directors as being in accordance with the trade practice cu tomary in the 

Industry at the effective date of the Code and as meeting the requirem uts of the 

' 
29 

Code. Lists showing such rate shall be filed with the Secretary and shall be open 

to in pection at all rea onable times by anyone. In ca e any member of the Code 

shall sell any product to which any such rate of extra or deduction shall apply, 

except as aforesaid, uch member shall add an extra at a rate which shall not be 

less than the rate of extra applicable to such product theretofore approved by the 

Board of Directors as aforesaid and at the time in effect and none of the members 

of th Code shall make any deduction at a rate that shall be more favorable to 

the purchaser of such product than the rate of deduction applicable to such 

product theretofore approved by the Board of Directors as aforesaid and at the 

time in effect; provided, however, that nothing in the Code contained hall be 

so construed as to prevent any member of the Code from selling or contracting to 

sell any product for u e by the purchaser thereof in the manufacture of articles 

for shipment in export trade within the meaning of the term "export trade" as 

it is used in the Export Trade Act under an agreement by such member of the 

Code with such purchaser that, when such articles shall have been shipped in 

such export trade, such member of the Code shall make an allowance at a rate 

approved by the Board of Directors and a statement of the approval of which 

shall theretofore have been filed with the Secretary, which rate in the opinion of 

such Board shall be sufficient to enable such member of the Code or such purchaser to meet foreign competition in the sale and delivery of such product or 

such articles, as the case may be. 

SEc. 8.-The practice of shipping products on consignment may result in 

unfair competition and it is the intention of the Industry to eliminate such 

practice as soon as possible after the effective date of the Code. Accordingly, 

except to the extent necessary to carry out arrangements existing on the effective date of the Code and which shall have been reported to the Board of Directors, from and after such date none of the members of the Code shall deliver 

products, other than pipe, on consignment except to an affiliated company of 

such member. All arrangements for the delivery by any member of the Code 

of products on consignment (other than consignments to an affiliated company 

of such member and other than consignments of pipe) existing on the effective 

date of the Code shall be terminated on or before June 30, 1934, and all stock 

held on consignment on that date shall either be sold to the consignee or possession thereof shall be taken by the consignor. The Board of Directors shall investigate problems presented in the elimination of consigned stocks of pipe and 

shall recommend to the members of the Code which shall be parties to then 

existing arrangements with re pect to shipments of pipe on consignment (other 

than consignments from a member of the Code to an affiliated company) such 

action in respect thereof as such Board shall deem proper and designed to accomplish the termination of all such arrangements (other than as aforesaid) at as 

early a date as possible. 

SEc. 9. For all purposes of this Schedule E, a delivery of any product made 

pursuant to a contract of sale shall be regarded as a sale thereof made at the 

time of the making of such contract. Except in the case of a product required 

by a purchaser for a specified definite contract of such purchaser with a third 

party at a fixed price, none of the members of the Code shall make any contract 

of sale of any product by the terms of which the shipment of such product i 

not required to be completed before the end of the calendar quarter year ending 

not more than four months after the date of the making of such contract. 

SEc. 10. Nothing in the Code contained, however, shall be so con. trued as 

to prevent the performance by any member of the Code of a valid, firm contract 

existing and to which it is a party at the effective date of the Code for a definite 

quantity of any product or for all or a substantial part of the requirements of 

the purchaser thereof (a) at a fixed price, or (b) at a price that can he definitely 

determined in accordance with the provisions of such contract, or (c) at the 

market price for such product at the date when a definite quantity thereof shall 

be specified under such contract. If any member of the Code shall at the effective date thereof be a party to any contract for the sale of any product by such 

member which by its terms is to continue after December 31, 1933, and by its - terms the price to be paid for such product by the other party to uch contract 

is related to the market price thereof at the date when a definite quantity thereof 

may be specified under such contract and may be less than such market price, 

then such member shall within thirty days after the effective date of the Code 

file a copy of such contract v.'ith the Secretary in order that the Board of Directors may con ider it and take such action in respect thereof con i tent with the 

rights and obligations of the parties to such contract a such Board shall deem 

proper. 
30 

SEc. 11. A sale made by any member of the Code indirectly through any 

affiliated company of such member shall be deemed to be a sale made by such 

member. 

SEc. 12. Nothing in the Code contained shall be deemed to apply to or affect 

the sale of any product for direct shipment in export trade by any member of 

the Code within the meaning of the term "export trade" as it is used in the 

Export Trade Act or, unless and to the extent that the Board of Directors shall 

otherwise determine, the sale of any product by any such member for direct 

shipment to the Philippines, Hawaii, or Puerto Rico or other insular possessions 

of the United States of America. 

SEc. 13. If and to the extent requested by the Administrator, all decisions of, 

permissions, and approvals given by and rules and regulations made by, the 

Board of Directors pursuant to any provisions of this Schedule E shall bereported 

to him. 
ScHEDULE F-LisT OF BASING PoiNTS 

The places hereinafter in this Schedule F listed are the basing points for the 

respective products named. 

Axles-Rolled or forged: 

Pitt burgh, Pa. 

Chicago, Ill. 

Birmingham, Ala. 

Bale Ties: 

Pittsburgh, Pa. 

Cleveland, Ohio 

Chicago, Ill. 

Birmingham, Ala. 

Duluth, Minn. 

Gulf Ports 1 

Pacific Coast Ports 2 

Bars-Alloy steel, hot rolled: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Chicago, Ill. 

Canton, Ohio 

Massillon, Ohio 

Bethlehem, Pa. 

Bars-Cold finished, carbon, and alloy: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Cleveland, Ohio 

Chicago, Ill. 

Gary, Ind. 

Bars-Concrete reinforcing: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Cleveland, Ohio 

Chicago, Ill. 

Gary, Ind. 

Birmingham, Ala. 

Youngstown, Ohio 

Gulf Ports 

Pacific Coast Ports 

Bars-Iron: 

Pittsburgh, Pa. 

Troy, N.Y. 

Jersey City, N.J. 

Dover, N.J. 

Philadelphia, Pa. 

Columbia, Pa. 

Lebanon, Pa. 

Reading, Pa. 

Danville, Pa. 

Burnham, Pa. 

Creighton, Pa. 

Richmond, V a. 

Louisville, Ky. 

Terre Haute, Ind. 

Bars-Merchant steel: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Cleveland, Ohio 

Chicago, Ill. 

Gary, Ind. 

Birmingham, Ala. 

Gulf Ports 

Pacific Coast Ports 2 

Bars-Tool steel: 

Pittsburgh, Pa. 

Syracuse, N.Y. 

Bethlehem, Pa. 

Girder rails: 

Lorain, Ohio 

Steelton, Pa. 

Ingots, blooms, billets, and slabsAlloy: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Chicago, Ill. 

Canton, Ohio 

Massillon, Ohio 

Bethlehem, Pa. 

Ingots, blooms, billets, and slabsCarbon: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Cleveland, Ohio 

Chicago, Ill. 

Gary, Ind. 

Birmingham, Ala. 

Youngstown, Ohio 

Light rails-60 lbs. or less per yard: 

Pittsburgh, Pa. 

Chicago, Ill. 

Birmingham, Ala. 

Mechanical tubing: 

Pittsburgh, Pa. 

Canton, Ohio 

Shelby, Ohio 

Detroit, Mich. 

Milwaukee, Wis. 

Pig iron-Foundry, malleable, openhearth basic, and Bessemer: 

Buffalo, N.Y. 

Cleveland, Ohio 

Chicago, Ill. 

Birmingham, Ala. 

Young town, Ohio 

e Except as otherwise shown in this Schedule F, the Gulf Ports are Mobile, Ala., ew Orleans, La., and 

Orange, Port Arthur, Beaumont, Baytown, Galveston, and Houston, Tex. 2 The Pacific Coast ports are San Pedro (includes Wilmington) and San Francisco (includes Oakland) 

Calif.; Portland, Oreg.; and Seattle (includes Tacoma), Washington; and San Diego, Calif.; for Plates and 

Structural Shapes only. 

(31) 
Pig iron-Continued. 

Neville Island, Pa. 

Sharpsville, Pa. 

Erie, Pa. 

Bethlehem, Pa. 

Swedeland, Pa. 

Birdsboro, Pa. 

Hamilton, Ohio 

Jackson, Ohio 

Toledo, Ohio 

Granite City, Ill. 

Detroit, Mich. 

Duluth, Minn. (except open-hearth 

basic) 

Provo, Utah 

Everett, Mass. 

Sparrows Point, Md. 

Pig iron- Low phosphorus: 

Birdsboro, Pa. 

Steelton, Pa. 

tandish, N.Y. 

Johnson City, Tenn. 

Pipe- Rigid electrical conduit: 

Pittsburgh, Pa. 

Evanston, Ill. 

Pipe-Standard, line pipe, and oil 

country tubular products: 

Pittsburgh, Pa. 

Gary, Ind. 

Lorain, Ohio 

Plates: 

Pittsburgh, Pa. 

Chicago, Ill. 

Gary, Ind. 

Birmingham, Ala. 

Coatesville, Pa. 

Sparrows Point, Md. 

Gulf Ports 

Pacific Coast Ports 

Railroad tie plates: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Chicago, Ill. 

Birmingham, Ala. 

St. Louis, Mo. 

Kan as City, Mo. 

Minnequa, Colo. 

Weirton, W.Va. 

Port mouth, Ohio 

Steelton, Pa. 

Pacific Coast Ports 

Railroad track spikes: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Cleveland, Ohio 

Chicago, Ill. 

Birmingham, Ala. 

Youngstown, Ohio 

Portsmouth, Ohio 

Weirton, W.Va. 

St. Louis, Mo. 

Kan a City, Mo. 

Minnequa, Colo. 

Philadelphia, Pa. 

Lebanon, Pa. 

Columbia, Pa. Richmond~ V a. 

Railroad track spikes-Continued. 

Jersey City, N.J. 

Pacific Coast Ports 

Sheet bars: 

Pitt. burgh, Pa. 

Buffalo, N.Y. 

Cleveland, Ohio 

Chicago, Ill. 

Youngstown, Ohio 

Canton, Ohio 

Sparrows Point, Md. 

Sheets: 

Pittsburgh> Pa. 

Gary, Ind. 

Birmingham, Ala. 

Pacific Coast Ports 

Skelp: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Chicago, Ill. 

Youngstown, Ohio 

Coatesville, Pa. 

Sparrow Point, Md. 

Steel sheet piling: 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Chicago, Ill. 

Gulf Ports 

Pacific Coast Ports 

Strip steel-Cold-rolled: 

Pitt burgh, Pa. 

Cleveland, Ohio 

Worcester, Mass. 

Strip steel-Hot-rolled: 

Pittsburgh, Pa. 

Chicago, Ill. 

Structural shape : 

Pittsburgh, Pa. 

Buffalo, N.Y. 

Chicago, Ill. 

Birmingham, Ala. (standard shapes 

only). 

Bethelhem, Pa. 

Gulf Ports 

Pacific Coa t Ports 

Tin plate, tin mill black plate and terne 

plate: 

Pittsburgh, Pa. 

Gary, Ind. 

Pacific Coast Ports 

Tubes-Boiler: 

Pittsburgh, Pa. 

Tube round : 

Pitt burgh, Pa. 

Buffalo, N.Y. 

Cleveland, Ohio 

Chicago, Ill. 

Birmingham, Ala. 

Wheels- Car, rolled steel: 

Pitt burgh, Pa. 

Chicago, Ill. 

Wire-Drawn, except as hereinafter 

specified: 

Pitt burgh, Pa. 

Cleveland, hio 

Chi ago, Ill. 

Birmingham, la. 
Wire-Continued. 

nder on, Ind. 

Duluth, Minn. 

'Vorce ter, Mass. 

Gulf Port 

New Orleans, La. 

Galve ton, Tex. 

Hou ton, Tex. 

Pacific Coa t Ports 

Wire nail and staples, barbed wire, 

and wire fencing: 

Pittsburgh, Pa. 

Cleveland, Ohio 

Chicago, Ill. 

Birmingham, Ala. 

Anderson, Ind. 

Duluth, Minn. 

Gulf Ports 

Pacific Coast Ports 

33 

Wire rorls: 

Pitt burgh, Pa. 

Cleveland, Ohio 

Chicago, IU. 

Birmingham, Ala. 

Wire-Spring: 

Pittsburgh, Pa. 

Cleveland, Ohio 

Chicago, Ill. 

W orce ter, Mass. 

Pacific Coast Ports 

Wire-Telephone: 

Pittsburgh, Pa. 

Cleveland, Ohio 

Waukegan, Ill. 

Muncie, Ind. 

Trenton, N.J. 

Worcester, Mass. 

Sparrows Point, Md. 
ScHEDULE G-MAXIMUM RATEs OF DiscouNT FOR EARLY PAYMENT AND MAXIMUM PERIODS OF FREE CREDIT 

MAXIMUM RATES OF DISCOUNT FOR EARLY PAYMENT 

In the case of products shipped from plants located east of the Mississ_i_pp i 

River to Pacific Coast Ports and which shall be invoiced from such plants-Y:! of 

1% , if the invoice of such products shall be paid within 25 days from the date of 

such invoice; in all other cases-~ of 1% , if the invoice of such products shall be 

paid within 10 days from the date of such invoice; provided, however, in the 

latter cases, that any member of the Code may allow such discount of ~ of 1% 

for payment within 10 days on the basis of settlements three times in each month, 

as follows: 

(I) On invoices for products dated from the 1st to the lOth, inclusive, in any 

month, such discount may be allowed on payment of such invoices on or before 

the 20th of such month; 

(2) On invoices for products dated from the lith to the 20th, inclusive, in 

any month, such discount may be allowed on payment of such invoices on or 

before the 30th of each month; and 

(3) On invoices for products dated from the 21st to the end of any month, 

such discount may be allowed on payment of such invoices on or before the lOth 

of the next following month. 

Any discount allowed in accordance with the provisions of this Schedule G 

shall apply only to the invoiced value of the products specified therein and not 

to any part of the transportation charges on such products. 

MAXIMUM PERIODS OF FREE CREDIT 

In the case of products shipped from plants located east of the Mississippi 

River to Pacific Coast ports and which shall be invoiced from such plants-45 

days; in all other cases-30 days. 

(34) 
ScHEDULE H-LrsT oF UNFAIR PRACTICES 

For all purposes of the Code the following described acts shall constitute unfair 

practices: 

A. Making or promising to any purchaser or prospective purchaser of any product, or to any officer, employee, agent or representative of any such purchaser or 

prospective purchaser, any bribe, gratuity, gift or other payment or remuneration, directly or indirectly. 

B. Procuring, otherwise than with the consent of any member of the Code, 

any information concerning the business of such member which is properly regarded by it as a trade secret or confidential within its organization, other than 

information relating to a violation of any provision of the Code. 

C. Imitating or simulating any design, style, mark, or brand used by any other 

member of the Code. 

D. Using or substituting any material superior in quality to that specified 

by the purchaser of any product or using or substituting any material or any 

method of manufacture not in accord with any applicable law, rule, or regulation 

of any governmental authority. 

E. Cancelling, in whole or in part, or permitting the cancellation in whole or 

in part of any contract of sale of any product, except for a fair consideration, or 

paying or allowing to any purchaser in connection with the sale of any product 

any rebate, commission, credit, discount, adjustment, or similar concession other 

than as is permitted by the Code and specified in the contract of sale. 

F. Disseminating, publishing, or circulating any false or misleading information relative to any product or price for any product of any member of the Code, 

or the credit standing or ability of any member thereof to perform any work or 

manufacture or produce any product, or to the conditions of employment among 

the employees of any member thereof. 

G. Inducing or attempting to induce by any means any party to a contract 

with a member of the Code to violate such contract. 

H. Aiding or abetting any person, firm, association, or corporation in any unfair 

practice. 

I. Making or giving to any purchaser of any product any guaranty or protection in any form against decline in the market price of such product. 

J. Stating in the invoice of any product as the date thereof a date later than the 

date of the shipment of such product, or including in any invoice any product 

shipped on a date earlier than the date of such invoice. 

K. Making any sale or contract of sale of any product under any description 

which does not fully describe such product in terms customarily used in the 

Industry. 

L. Rendering to any purchaser of any product in or in connection with the 

sale of such product any service, unless fair compensation for such service shall 

be paid by such pruchaser. 

M. Any violation of any other provision of the Code, whether or not therein 

expressed to be such, or using or employing any practice not hereinabove in this 

Schedule H described which the Board of Directors by the affirmative vote of 

three fourths of the whole Board shall have declared to be a practice that would 

tend to defeat the policy of Title I of the National Industrial Recovery Act and, 

therefore, an unfair practice, and of which determination by such Board the Secretary shall have given notice to the members of the Code and to the President. 

(3~} 

0 


UNIVERSITY OF FLORIDA 

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