Approved Code No. 493 Registry No. 1125-04 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

( 

INDUSTRIAL OIL BURNING 

EQUIPMENT MANUFACTURING 

INDUSTRY 

AS APPROVED ON JULY 30, 1934 

WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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Approved Code No. 49, 

ERRATA SHEET 

CODE OF FAIR COMPETITION 

FOR THE 

Registry No. 1125-34 

INDUSTRIAL OIL BURNER EQUIPMENT MANUFACTURING 

INDUSTRY 

As Approved on July 30, 1934 

Page 45, first line " Section 2 " should be " Section 3." 

82440°-1044-96--&4 

D. a. IOVERNMINT PRINTIR~ OFPIC11 ltU 
/ 
Approved Code No. 493 

CODE OF FAIR COMPETITION 

FOR THE 

INDUSTRIAL OIL BURNING EQUIPMENT 

MANUFACTURING INDUSTRY 

As Approved on July 30, 1934 

ORDER 

APPROVING CODE OF FAIR C OMPETITION FOR THE INDUSTRIAL OIL 

BURNING EQmPMENT MANUFACTURING INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

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

Fair Competition for the Industrial Oil Burning Equipment Manufacturing Industry and hearings having been duly held thereon and 

the annexed report on said Code, containing findings with respect 

thereto, having been made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 

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

pursuant to authority vested in me by Executive Orders of the President, including Executive Order No. 6543-A, dated December 30, 

1933, and otherwise; do hereby incorporafa~ by reference said annexed 

report and do find tha.t said Code complies in all respects with the 

pertinent provisions and will promote the policy and purposes of 

said Title of said Act; and do hereby order that said Code of Fair 

Competition be and it is hereby approved. I do hereby further 

order that the Industrial Oil Burning Equipment Manufacturing 

Industry and its members be hereafter exempted from the provisions 

of the Oil Burner Industry Code. 

HUGH 8. JOHNSON, 

Adrnini-8 frator· for Industrial R ecovery. 

Approval recommended: 

BARTON w. ~IURRAY, 

Division A.d11iinisfr'ator. 

w ASHINGTON' D.C., 

tluly 30, 1934. 

77109°-820-170-34- -1 (31) 
REPORT T O THE PRESI DE NT 

The PRESIDENT, 

The 1¥ hite H 011,.se. 

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

Industrial Oil Burning Equipment Manufacturing Industry as 

revised after a public hearing, conducted thereon in Washington, 

D . C. on July 10, 1934, in accordance with the provi ions of the 

National Indn 'trial Recovery Act. 

PROVI IONS AS TO WAGES AND J-IOUHS 

All employee shall l:e paid .a minin111m rate off rty cents per hour 

except handicapped worker , wh n properly rtifi .d. Accounting, 

clerical and office employee · may be paid at not le than fifteen 

dollars per week. Office boys and girl may be paid not le -. than 

eighty percent of thi last rate and hall not excee l, in any calendar 

month, five p rcent of the total office employees of the employ r 

except that any employer ma., employ at least two c:uch persons. 

Com.mission "'ale people ar excepted from the · minimum wages. 

Forty hour. c:hall be th maximum numb r f working hours f r 

any week and eio·ht hour · for any day excer t that. lurino· not to exceed six weeks in any six month ' period, :forty eight hour in one 

week shall be permi · ibl providing one and one-half times the 

normal rate of pay hall be pai l for all time in exce s of eight 

hours per day and forty hour per week. Those employed in managerial, executiYe, or supervi ory capacity who r egularly receive 

thirty-five dollars or 1nore per ·week and traYcling salesmen are 

excepted from this provision. 

Em.ployee.;.; ngaged in ern,ergency maintenance or emerg · ncy repair work involving breakdowns or the protection of life or property are excepted provided, ho we Yer, that one and one-half times 

the nonnal rate of pay shall be paid for all time in excess of eight 

hours per day and forty hours per week. Shipping clerks and outside deliv rymen are excepted and may be pennitted to work fortyfive hours per week except that during not to exceed ix w ek · in 

any six months' period, forty-eight hours in one week . ·hall be per• 

missible providing one and one-hal:f times the n rmal rat of pay 

shall be paid for all time in exce s of eight hours per day and forty 

hours per w ek. ,v atchmen ar excepted and may be permitted to 

work fifty-six h nr per week. No employer shall knowinaly pernut any employee to ,vork for any time Yvhich, when totaled with 

that already pe:dorme l with anoth r employer or employers, exceeds 

the maxima permitte l herein. No employe shall be permitted to 

work more than six days in any even clay period. 

(32) 
33 

ECONOMIC EFFECTS OF THE CODE 

The economic welfare of this industry largely depends on the 

revival of capital investment, partly on revival of construction ac~ 

tivity. Industrial Oil Burning Equipment is used in generating 

heat and/ or power for steamships, power-plants, locomotives, dis~ 

tilleries, breweries, industrial plants, etc. The Unit Equipment defined is used in various types of construction activity and in the arts 

and industry. 

Annual dollar sales have decreased about twenty percent from 

1928 to 1933. Invested capital has decreased about eight percent 

during the same period. The number of wage earners employed 

by _this in~ustry decre~sed about eight percent during the same 

period, an increase having been made from 1932 low of about two 

percent the latter part of 1933. It is estimated that the industry 

employed 440 wage earners in 1928. 

No large further increase in employment is anticipated under 

the maximum hourly provision of the Code as, _although there was 

an increase in employment under the President's Reemployment 

Agreement, the industry is not working in excess of the maximum 

hours specified. Trade practice provisions of the Code are expected 

to remedy many of the evils that have been prevalent in the past 

within this industry. 

The Deputy Administrator, in his final report to me on said Code 

having found as herein set forth and on the basis of all the proceedings in this matter : 

I find that: 

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

removal of obstructions to the free flow of interstate and foreign 

commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among trade groups, by 

inducing and maintaining united action of labor and management 

under adequate governmental sanctions and supervision, by eliminating unfair competitive practices, by promoting the fullest possible 

utilization of the present productive capacity of industries, by avoiding undue restriction of production ( except as may be temporarily 

required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing 

and relieving unemployment, by improving standards of labor, and 

by otherwise r"ehabilitating industry. 

(b) The Code as approved complies in all respects with the pertinent provisionf? of said Title of said Act, including without limitation Subsection (a) o:f Section 3, Subsection (a) of Section 7, and 

Subsection (b) of Section 10 thereof; and that the applicant association is an industrial association truly representative of the aforesaid Industry; and that said association imposes no inequitable restrictions on admission to membership therein. 

( c) The Code is not designed to and will not permit monopolies 

or monopolistic practices. 

(cl) The Code is not designed to and will not eliminate or oppress 

small enterprises and will not operate to discriminate against them. 
34 

( e) Those engaged in other steps of the economic process have not 

been deprived of the right to be heard prior to approval of said 

Code. 

For these reasons, therefore, I have approved this Code. 

Respectfully, 

JULY 30, 1934. 

HUGH s. JOHNSON, 

Administrato1·. 
CODE OF FAIR COMPETITION FOR THE INDUSTRIAL OIL BURNING EQUIP~IENT MANUFACTURING 

INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Code of 

Fair Competition for the Industrial Oil Burning Equipment Manufacturing Industry, and shall be the standard of fair competition 

for such industry and shall be binding upon every member thereof. 

ARTICLE II-DEFINITION s 

SECTION 1. The term "Industrial Oil Burning Equipment ~Ianu• 

facturing Industry" as used herein includes the manufacturing 

selling, and/ or furnishing of "manufacturer-installation-service ,l 

or "manufacturer-installation-engineering and/ or superv~sory-service" of, oil burners and/ or oil burning equipment including accessories which are not for general purpose and/ or use but which are 

essential to their operation, either fixed or portable, and/ or of the 

vaporizing, steam, air, gas or mechanical atomizing type, designed· 

primarily for: 

(a) Generating heat or power for naval vessels, merchant-marine 

vessels and yachts, stationary pow-er plants, railroad locomotives 

when manufactured, sold and/ or furnished, by others than manufacturers of locomotives, oil refineries, sugar refineries, distilleries, 

breweries, and other similar purposes. 

(b) For heat application and/ or processing in the arts and industries and/ or for use either in production or r:epair processes including fire pots, blow torches, portable torches, melting furnaces, 

tar kettles, concrete heaters, salamanders, bra.zing and rivet forges, 

asphalt tool heaters and surface heaters, wood burners, steamers, 

soldering-iron heaters, and other similar devi<:_es . 

. ( c) For all other purposes exclusive of heating by means of units 

designed primarily as, and generally known as, domestic oil burners 

and exclusive of burners designed primarily for lighting and cooking, together with auxiliary control and equipment; exclusive of 

all burners, built in and forming integral parts of furnaces or 

boilers and sold as a component part thereof and the replacement 

or repair or servicing of same by the manufacturer of such unit 

equipment; and such branches or subdivisions of this industry as 

may from time to tinie be included under the provisions of this Code. 

SECTION 2. The term "employee" as used herein includes anyone 

engaged in the industry in any capacity receiving compensation for 

his services, irrespective of the nature or method of payment of such 

~ompensation. 

(35) 
36 

SECTION 3. The term "employer" as used herein includes anyone 

by whom any such employee is compensated or employed. 

SECTION 4. The tenn "member of the indμstry" includes anyone 

engaged in the industry as above defined, either as an employer or 

on his own behalf. 

SECTION 5. The term "Association" as used herein shall mean the 

Industrial Oil Burning Equipment Association. 

SECTION 6. The terms " President", "Act", and "Administrator " 

as used herein shall mean re pectively the President of the United 

State , Title I of the National Indu trial Recovery Act, and the 

Administrator for Industrial Recov ry. 

ARTICLE III-Houns 

SECTION 1. No employee hall be permitted to work in ex e. s of 

forty ( 40) hours in any one week or eight ( 8) hours in any one day 

except for six (6) weeks in a six (6) month period when employees 

may be permitted to work not more than forty-eight ( 4 ) hours per 

week provided they are compen ·ated by at least one and n -half 

(11⁄2) times their normal rate of pay for all hour jn excess of forty 

(40) per week or eight (8) per day. 

SECTION 2. The provi ion of Section 1 ..,hall not apply t the 

following: 

(a) Persons employed in a managerial, executive, or upervi ory 

capacity who reaularly receiv thirty-fiy dollars ($35.00) per week 

or more. 

(b) Traveling sale men. 

( c) Employees engaged in emergency maintenance or emerg ncy 

repair work involving breakdown or the protection of life or property; provided, however, that any employee working in excess of 

forty ( 40) hour per week or eight ( 8) hours per day shall be 

compen ated by at lea t one and one-half (11⁄2) time his normal 

rates for all such excess hour . 

( cl) Shipping clerks and ou ide l liverymen, who may be permitted to work :forty-five ( 45) hours per week, except that during 

any six (6) weeks in any six (6) months period they may be permitted to work forty-eight ( 48) hours per 1Ve2k. One and one-half 

(11⁄2) times the normal rate of pay shall be paid per. ons embraced 

in this subsection ( cl) for hours worked in exce ;- of ight (8) hours 

per day and forty ( 40 ) hours per week. 

( e) Watchmen, who may be permitted to "TI"ork not in excess of 

fifty-six (56) hours in any one week. 

SECTION 3. No employer shall permit any employee to work for 

any time which when combined with that performed for another 

employer or em1 loyers in this or any industry exceeds the maximum 

permitted herein. 

SECTION 4. No employee shall be permitted to work in excess of 

six (6) days in any se-ven (7) day period. 

A.RTI LF. IV-,V AGES 

SECTION 1. (a) The minimum wage that shall be paid by any 

employ r to any employee shall be forty cents ( 40¢) per hour, 

except as follows : 
37 

(b) A person whose earning capacity is limited because o:f age or .. physical or mental handicap may be employed on light work at a 

wage below the minimum established by this Code if the employer 

obtains from the S tate authority designated by the United States 

Department of L abor a certifica te authorizing 1 is employment at 

such wages and £or such hours as shall be stated in the certificate. Each employer shall file monthly with the Code Authority a list 

of all such persons employed by him, showing the wages p aid to, 

and the maximum hours of work £or, such employee. 

( c) No clerical or office employee shall be paid in any pay period 

less than at the rate of $15.00 per week; provided, however, that 

office boys and girls may be paid not less than 80% of such minimurn 

wage, but the total number of such office boys or girls shall not 

exceed in any calendar month 5% of the total number of all employees covered by the provisions of this paragraph except that any 

employer may employ at least two such persons as above provided; 

and provided further, that where a State law provides a higher 

minimum wage, no person shall be paid a lower wage than that 

required by such law within that State. 

SECTION 2. The wage differentials £or all operations above the 

minimum shall be equitably readjusted ( unless such readjustment 

has been made theretofore) and in no case shall hourly or piecework 

wages be decreased. No unfair advantage shall be taken of any 

employee in making this Code effective. Each member of the industry shall report all such readjustments to the Code Authority 

within thirty (30) days a.fter the effective date. 

SECTION 3. No employer shall contract for the fabrication and/er 

erection of any product of this Industry with any employer or employee, except when such employer or employee agrees to comply 

with labor provisions at least as favorable as those contained in this 

Code. 

ARTICLE V-GE:NEP..AL LABOR AND OTHER PPOVISIONS 

SECTION 1. No person under the age of sixteen (16) years shall 

be employed by any member of the Industrt' and no person under 

the age of eighteen (18) years shall be emp.1oyed in any hazardous 

occupation. The Code Authority shall, within six months after the 

effective date of this Code, submit to the Administrator for approval 

a list of such hazardous occupations. In any state an employer shall 

be deemed to have complied with this provision if he shall have on 

file a certificate or permit duly issued by the authority in such state 

empowered to issue such employment or age certificates, showing 

the employee is of the required age. 

SECTION 2. No employer shall reclassify employees or duties o:f 

occupations performed or engage in any other subterfuge so as to 

defeat the provisions of the Act or of this Code. 

SECTION 3. Every employer shall provide for the sa"fety and 

health of employees during the hours and at the places of their 

employment. Standards for safety and health shall be submitted by 

the Code Authority to the Administrator £or approval within six 

(6) months after the effective date of the Code. 

SECTION 4. No provision in this Code shall supersede any State 

or Federal law which imposes on employers more stringent require111on0-829-170-34-.-2 
38 

ments as to age of employer, wages, hours of work, or as to safety, 

health, sanitary or general working conditions, or insurance, or fire 

protection, than are imposed by this Code. 

SECTION 5. All employers shall post and keep posted copies of this 

Code in conspicuous places accessible to all employees. E very mem- · 

ber of the Industry shall comply with all rules and regulations 

relative to the posting of provisions of Codes of Fair Competition 

which may from time to time be prescribed by the Administrator. 

SECTION 6. No employee shall be discharged, demoted, or otherwise 

discriminated against by reason of making a complaint or giving 

evidence with respect to an alleged violation of this Code. 

SECTION 7. No employee now engaged at a wage above the minimum shall be discharged and r e-employed, or replaced by another, 

at a lower rate for the purpose of evading the purposes o:f the Act 

or the provisions of this Code. 

SECTION 8. Employees shall have the right to organize and bargain collectively through representatives of their own choosing and 

shall be free from the interference, restraint, or coer cion of employers of lab01·, or their agents, in the designation of such representatives, or in self organization, or in other concerted activities 

:for the purpose of collective bargaining or other mutual aid or 

protection. 

SECTION 9. No employee and no one seeking employment shall 

be required as a condition o:f employn1ent to join any company union 

or to refrain from joining, organizing, or assisting a labor organization of his own choosing. 

SECTION 10. Employers shall comply with the maximum hours of 

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

approved or prescribed by the President. 

ARTICLE VI- ADMINISTRATION 

SECTION 1. To :further effectuate the policies of the Act, a Cocle 

Authority is hereby set up to cooperate with the Administr ator in 

the ad1 inistration of this Code. 

(a) The Code Authority shall cons:st of five individuals elected, 

as hereinafter provided, by the members of th€ Industry who are 

eligible under sub-sect1on (f) of Section 1 of this Artie.le VI. The 

Administr .. tor, in addition, may appoint not more than three members without vote and without expense to the Industry to serve for 

such term or terms us he may spec~fy. 

(b) The Association is hereby designated as the agency to conduct the election of the Code Authority. It sha.11, within ten days 

after the u pproval of this Cocle, call a meeting of the members 

of the Industry for this purpose to be held within fifteen days after 

the date of such notice. Notice of the time and place of such Industry Meeting shall be sent by mail, at least ten days in advance 

of such meeting, to all members of the Industry whose names can 

be ascertained by r easonable inquiry. Persons, in order to be eligible 

:for election to the Code Authority, shall be affiliated with some 

member of the Industry and no member of the Industry shall have 

more than one representative on the Code Authority. Each member 

of the Industry shall have one vote and votes ma.y be cast in person, 

by proxy or by letter ballot. 
39 

( c) Pending the election of the Code Authority, in the manner 

hereinabove prescribed, the Executive Committee of the Association 

shall serve as a t€mporary Code Authority. 

( d) Each trade or industrial association directly or indirectly 

participating in the selection or ac+ivitie of the Code Authority sh 11 

(1) impose no inequitable restrictions on membership, and (2) submit to the Administrator true copies of its articles of association, 

by-laws, regulations, and any amendments when made thereto, together with such other information as to memb"rship, organization, 

and activities as the Administrator may deem necessary to effectuate 

the purposes of the Act. 

( e) It being found necessary in order to suport the .administration 

of this code and to maintain the standards of fair competition established hereunder and to effectuate the policy of the Act, the Code 

Authority is authorized: 

1. To incur such reasonable obligations as are necessary and proper 

for the foregoing purposes, .and to meet such obligations out of funds 

which may be raised as hereinafter provided and which shall be held 

in trust for the purposes of the Code; 

2. To submit to the Administrator for his approval, subject to 

such notice and opportunity to be heard as he m.ay deem necessary 

(1) an itemized budget of its estimated expenses for the foregoing 

purposes, and (2) an equitable basis upon which the funds necessary to support such budget shall be contributed by members of the 

industry. 

3. After such budget and basis of contribution have been approved by the Administrator, to determine and obtain equitable 

contribution as above set forth by all members o:f the industry, and 

to that end, if necessary, to institute legal proceedings therefor in 

its own name. 

(f) Each member of the industry shall pay his or its equitable 

contribution to the expenses of the maintemmce of the Code Authority, determined as hereinabove provided, and subject to rules and 

regulations pertaining thereto issued by the Administrator. Only 

members of the industry complying with the code and contributing 

to the expenses of its administration as hereinabove provided, unless 

duly exempted from making such contributions, shall be entitled 

to participate in the selection of members of the Code Authority 

or to receive the benefits of any of its voluntary activities or to 

make use of any emblem or insignia of the National Recovery 

Administration. 

(g) The Code Authority shall neither incur nor pay any obligation 

in excess of the amount thereof as estimated in its approved budget, 

except upon approval of the Administrator; and no subsequent 

budget shall contain any deficiency item for expenditures in excess 

of prior budget estimates except those which the Administrator 

shall have so approved. 

SECTION 2. In order that the Code Authority shall at all times be 

truly representative of the Industry and in other respects comply 

with the provisions of the Act, the Administrator may prescribe 

such hearings as he may deem proper, and thereafter if he shall find 

that the Code Authority is not truly representative of the Industry 

or does not in other respects comply with the provisions of the Act, 
40 

he may require an appropriate modification in the method of selection 

of the Code Authority. 

SECTION 3. The Code Authority, when elected in the manner 

prescribed by subsections (a) and (b), of section 1 of this Article 

VI may incorporate under the laws of any State of the United 

States or of the District of Columbia, such corporation to be not for 

profit and to be known as " the Code Authority of the Industrial 

Oil-Burning Equipment 1\/fanufacturing Industry " ; provided that 

the powers, duties, objects and purposes of the said corporation, shall, 

t o the satisfaction of the Administrator, be limited to the powers, 

duties, objects and purpo es of the Code Authority as provided in 

this Code ; provided further1 that the Code Authority shall submit 

to the Administr ator, for 111 approval, its proposed Certificate of 

Incorporation and proposed by-laws, and no amendment of either 

shall be made without the like prior approval of the Administrator. 

If at any time, the Admini trator shall determine that the corporate 

status assumed by the Code Authority is interfering with the proper 

exercise of its powers and duties under this Code, or with the 

effectuation of the policies or purposes of the Act, he may, after 

such notice and hearing as he may deem necessary, require an appropriate modification of the structure of the Corporation (if consistent 

with the law of the St ate of Incorpor ation), the substitution of a 

corporation created under the laws of another State in the same 

manner as the existing Code Authority, the substitution of a noncorporate Code Authority truly representative of the Industry or 

such other actions as he may deem expedient. 

SECTION 4. The Code Authority shall have the following duties 

,nnd powers to the extent permitted by the Act and subject to review 

by the Administrator : 

(a) To obtain from members of the industry such information 

~nd reports as are required for the administration of the Code. In 

addition to information required to be submitted to the Code Authority, members of the industry subject to this Code shall furnish 

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

Federal and State agencies as he may designate; provided that 

nothing in this Code shall relieve. any member of the industry of 

any exsting obigations to furnish reports to any Governmental 

agency. No individual report shall be disclosed to any other member 

of the industry or any other party except to such other Governmental agencies as may be directed by the Administrator. 

(b) To represent the Industry in conferring with the President 

or his agents with respect to the administration of this Code and 

with respect to the Act and any regulations issued thereunder. 

( c) To insure the execution of the provisions of this Code and 

to provide for the compliance of the industry with the provisions 

of the Act. 

( d) To adopt by-laws and rules and regulations for its procedure. 

( e) To study the trade-practice provisions and the operation 

thereof, and make such recommendation from time to time to the 

Administrator as it deems desirable f or modification of or addition 

thereto which, upon the approval of the President, after such hearing 

as he may prescribe, sh~~ become a part of this Code and have full 

force and effect as prov1s10ns hereat 
41 

(f) If the Administrator shall at any time determine that any 

action of a Code Authority or any agency thereof n1ay be unfair 

or unjust or contrary to the public interest, the Administrator may 

require that such action be suspended to afford an opportunity for 

investigation of the merits of such action and further consideration 

by such Code Authority or agency pendj ng final action which shall 

not be effective unless the Administrator approves or unless he shall 

fail to disapprove after thirty (30) d__,y,,1 :..:.otice to him of intention 

to proceed with such action in its original or modified form. 

ARTICLE VIII-TRADE PRACTICES 

The following are declared unfair trade practices and in violation 

of this Code : 

SECTION 1. Imitation of any trade mark, trade name, package, 

brand, model numbers with or without letters, code names, descriptions, catalogs, cuts or labels of a competitor with the intent or havino· the ,effect of deceiving purchasers. 

SECTION 2. Appropriating or attempting to appropriate ideas, 

sketches, designs or drawings, originated and owned by another 

member in the Industry, without the owner's consent, with the intent or having the effect of confusing, misleading or deceiving purchasers in r eference to the origin of the products. 

SECTION 3. The fals·e marking, branding, or rating of any product 

of the Industry which has the tendency to mislead or deceive customers or prospective customers, whether as to the grade, quality, 

quantity, substance, character, nature, origin, size, r ating, capacity, finish, or preparation of any product of the Industry, or otherwise. 

SECTION 4. No 1nen1ber of the industry shall defame a competitor 

by falsely imputing to him dishonorable conduct, i1iability to perform contracts, questionable credit standing, or by other false representation, or by falsely disparaging the grade or quality of his 

goods. 

SECTION 5. No mem.ber of the industry shall give, permit to he 

given or offer to give, anything of value for the purpose of influencing or rewarding the action of any employee, agent, or representative of another in relation to the business of the employer of such 

employee, the principal of such agent or the represented party, 

without the knowledge of such employer, principal or party. This 

provision shall not be construed to prohibit free and general distribution of articles commonly used for advertising except so far as 

such articles are actually uc::ed for commercial bribery as hereinabove defined. 

SECTION 6. Inducing or attempting to induce or being a party to 

the breach of an existing oral or written contract between a competitor and his customer or solffce of supply, or interfering with or 

obst~ucting the performance of any such contractual duties or 

services. 

SECTION 7. No member of the industry shall offer or make any 

secret payment or secret allowance of a rebate, refund, commission 

credit, unearned discount or excess allowance, whether in the form of 

money or otherwise, nor shall a member of the industry secretly 

offer or extend to any customer any special service or privilege not 
42 

extended to all customers of the same class, for the purpose of 

influencing a sale. 

The settlement of old accounts for le s than the full amount as a 

consideration for accepting a proposal is prohibited under the 

meaning of the above clause. 

SECTION 8. (a) The use of premiums in ways which involve commercial bribery in any form. 

(b) 1'he use of premiums in wa.ys which involve lottery in any 

form. The t erm "lottery " shall be construed to include, but without 

]imitabon, any plan or arrangement whereby the premium offered 

differs substantially in value from customer to customer of the same 

cla .. s, except as a result of differences in quantities purchased. 

(c) The use of premiums in ways which involve misrepresentation, · 

or fraud, or deception in any form, including, but without limitation the use of the word " free " " c:rift" " gratuity " or lano-uage , ' b , ' b 

of similar import in connection with the giving of premiums for 

the purpose or with the effect of misleading or deceiving customers. 

(d) The giving of premiums to any customers when such premiums are not off erecl to all customers of the same class in the trade 

area. 

SECTION 9. The publishing or circularizing of threats of suits for 

infringement of patents or trade marks or of any other legal proceedings not in good faith, with a tendency or effect of harassing 

competitors or intimidating their cu tomers. 

SECTION 10. Securing confidential information concerning the 

business of a competitor by a false or misleading statement or representation or by a false imper onation of one in authority or by 

bribery or by any other unfair metho l. 

SECTION 11. No member of thi Industry shall ell any combination of products, except repair and replacement parts, manufactured 

by him, or by any owned or controlled subsidiary, at a price less 

than the sum of his e tablished ·elling prices for all items included 

in such combination. 

SECTION 12. No member of the Industry shall change any quotation submitted, or accept an order at a price below the quoted price 

unless a change is made in the specifications, and, in the event of 

such change in any specifications, the price and terms of the new 

quotation shall be determined in the ,_ame manner as in the original 

quotation. . 

SECTION 13. The sale or offer of sale of any goods under any form 

of guarantee to the purchaser against either an advance or decline in 

the price of such goods. 

SECTION 14. No member of the Industry shall withhold from or 

insert in any quotation or invoice any statement that makes it inaccurate in any material particular. 

SECTION 15. No member of the industry shall require that the 

purchase or lease of any products of the Industry be a prerequisite 

to the purchase or lease of any other goods. 

SECTION 16. No member of the Industry shall furnish or offer to 

furnish any shop detail drawings to a purchaser or a prospective 

purchaser other than those essential to the prosecution of the work 

covered by a contract. 
43 

.SECTION 17. No member o:f the Industry shall sell his product subject to a warranty more favorable to the purchase!' than the 

:following: 

(a) No warranty to furnish p.arts to replace defective material or 

workmanship shall extend beyond one (1) year from date of shipment or installation us may be agreed upon. 

(b) Replacement of dBfective material shall be f.o.b. point of 

ship1nent subj~!::t to manufacturer's inspection. 

( c) Foreign component part equipment warranty :hall be limited 

to the warranty of its manufacturer. 

SECTION 18. No member of the Industry shall make n. auarantee 

of maintenance because of the impossibility of definjng and maintaining the co-1ditions under which such a guarantee ".an honestly 

be made. 

SECTION 19. No member of the Industry ~hall accept a contract 

containing a penalty clause either for performance of the apparatus 

sold or for time of delivery, unk:s the contract shall also contain 

a clause providing a bonus to the contractor at the same rate as the 

rate of penalty, except in cases -where Federal, State, or Municipal 

laws necessitate otherwise. 

SECTION 20. No n1ember of the Industry hall accept a contract 

containing a clause providing for liquidated damages except whei·e 

Federal, State, or Municipal la-ws so necessitate. 

SECTION 21. Where purchaser's specifications include a bonus clause 

for performance, in excess of that guaranteed, no . member of the 

Industry shall deduct from the price nny bonus or portion thereof 

which he anticipates will be earned by reason of his obtaining a better performance than that gnaranteed. 

SECTION 22. ,vhere purchaser's specifications include a penalty 

clause for perionnance, less than that guaranteed, no member of the 

Industry shail make a guarantee in excess of that which he expects 

to obtain anticipating the acceptance of a penalty a a basis for re..: 

ducing the cost to the purchaser. 

SECT.ION 23. No member of the Industry shall make any guarantee 

of per£ ormance other than to specify the range in pounds or galloi1s 

of fuel per hour and proper combustion thereof under proper furnace, draft, and other conditions vvhich may be specified by tlrn 

manufacturer. No member of the Industry shall promi ·e a higher 

guarantee than his previous experience lead · him to believe he can 

obtain. 

SECTION 24. No n1ember of the Industry shall make a deposit ior 

the privilege of receiving plans and specifications and the opportn-

:r:iity to bid on a contract without an agreement by the issuer that 

such deposit will be returned to said member of the Industry -n·hen 

the contract has been awarded or when said plan and specifications 

have been returned by said 1ne'mber _to the issuer. 

SECTION 25. No member of the Industry shall enter into a written 

?T oral agreement with any person that one or more clauses of the 

contract or the specification will not be enforced, thereby receiving 

an unfair advantage over competitoTs. 

SECTION 2-6. No n1ember of the Industry shall purchase patents 

from customers, their officers, engineers, or employees, for the purpose of influencing sales to such customers. 
44 

SECTION 27. No member of the Industry shall cause or permit any 

conduct by any one of his employees or agents which would constitute a violation of this Code. 

AnTICLE IX-CosTs AND PnrcE CUTTING 

SECTION 1. The standards of fair competition £or the industry 

with reference to pricing practices are declared to be as follows: 

(a) Wilfully destructive price cutting is an unfair method of 

competition and is forbidden. Any member of the industry or of 

any other industry or the customers of either may at any time complain to the Code Authority that any price at which products of 

this industry have been sold constitutes unfair competition as destructive price cutting, imperiling small enterprise or tending toward 

monopoly or the impairment of code wages and working conditions. 

The Code Authority shall within five ( 5) days afford an opportunity to the member filing the price to answer such complaint and 

shall within fourteen (14) days make a ruling or adjustment thereon. 

If such ruling is not concurred in by either party to the complaint, 

all papers shall be referred to the Research and Planning Division 

of N. R. A. which shall render a report an l recommendation thereon 

to the Administrator. 

(b) When no declared emergency exists as to any given product, 

there is to be no fixed minimum basis for prices. It i intended that 

sound cost estimating methods should be used and that consideration 

should be giYen to costs in the determination of pricing policies. 

( c) When an emergency exists as t~ any gi Yen product, sale 

below the stated minimum price of such product, in violation of 

Section 2 hereof, i forbidden. 

SECTION 2. Emergency P1·ovisions.-(a) If the Admini trator, 

after investigation shall at any time find both (1) that an emergency 

has arisen within the industry adversely affecting mall enterprises 

or wages or labor condition , or tending toward monopoly or other 

acute conditions which tend to defeat the purpo es of the Act; and 

(2) that the determination of the stated minimum price for a specified product within the industry for a period is necessary to mitigate 

the conditions constituting such emergency and to effectuate the purposes of the Act, the Code Authority may cause an impartial agency 

to investigatB costs and to recommend to the Administrator a determination of the stated minimum price of the product affected by 

the emergency and thereupon the Administrator may proceed to 

determine such stated minimum price. 

(b) When the Administrator shall have determined such stated 

minimum price for a specified product for a stated period, which 

price shall be reasonably calculated to mitigate the conditions of 

such emergency and to effectuate the purposes of the National Industrial Recovery Act, he shall publish such price. Thereafter, during such stated period, no m~mber of the industry shall sell such 

specified products at a net realized price below said stated minimum 

price and any such sale shall be deemed destructive price cutting. 

From time to time, the Code Authority may recommend review or 

reconsideration or the Administrator may cause any determinations 

hereunder to be reviewed or reconsidered and appropriate action 

taken. 
45 

SECTION 2. Cost Finding.-The Code Authority shall cause to be 

formulated methods of cost finding and accounting capable 0£ nse 

by all mem'bers of the industry, and shall submit such methods to 

the Administrator for review. I£ approved by the Administrator, 

:full information concerning such methods shall be made available 

to all members of the industry. Thereafter, each member 0£ the 

industry shall utilize such methods to the extent found practicable. 

Nothing herein contained shall be construed to permit the Code Authority, any agent thereof, or any member 0£ the industry to suggest uniform additions, percentages or differentials or other unifonn 

items of cost which are designed to bring about arbitrary uniformity 

of costs or prices. 

ARTICLE X-l\tiomFICATION 

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

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

provjsions of subsection (b) of Section 10 of the Act, from time to 

time to canc~l or modify any 9rder, approval, license, rule, or r egulation issued under Title I of srrid Act and specifically, but without 

limitation, to the right of the President to cancel or modify his approval of this Code or any condition imposed by him upon his 

approval thereof. 

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

to be included herein by the A~t may, with the approval of the Administrator, be modified or elim.inatcd in such manner as may be 

indicated by the needs of the public, by changes in circumstances, or 

by experience. All the provisions of this Code, unless so modified or 

eliminated, shall remain in effect until June 16, 1935. The Code 

Authority may make recommendations for modifications. 

ARTICLE XI-MONOPOLIES, ETC. 

No provision of this Code shall bB so a pp lied as to pern).it 1nonopolies or monopolistic practices, or to eliminate, oppress, or discriminate ~gainst small enterprises. , . 

ARTICLE XII-EFFECTIVE DATE 

This Code shall become effective on the tenth (10th) day after its 

approval by the President. 

Appl'oved Code No. 493. 

Registry No. 1125-04. 

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