NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

HEAVY FORGING INDUSTRY 

AS SUBMITTED ON AUGUST 30, 1933 

REGISTRY No. 1110-01 

The Code for the Heavy Forging Industry 

in its present form merely reflects the proposal of the above-mentioned 

industry, and none of the provisions contained therein are 

to be regarded as having received the approval of 

U.S. DE 

the National Recovery Administration 

as applying to this industry 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the S uperin tendent of Documents, Washing ton , D.C. - - - - - - - - .Price 5 cents 

CODE OF FAIR COMPETITION OF THE HEAVY FORGING 

INDUSTRY 

ARTICLE I-DEFINITIONS 

Wherever used in this Code or in any schedule appertaininO' hereto 

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

defined shall, unless the context shall otherwise clearly indicate, have 

the respective meanings hereinafter in this Article and in such 

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

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

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

of the territory of the United State of America on the North American continent. 

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

United States of America. 

SEc. 3. The term "the Industry" means and includes the business 

of manufact.uring and selling in the United States hammered and/or 

pressed forgings, except as produced and/or sold by an owning or 

affiliating department or company as a part of the products of another 

industry, as defined in Section II, Paragraph (a) hereof. 

SEc. 4. The term "1nember 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. 5. The term "the Code" means and includes this Code and 

all schedules annexed hereto as originally approved by the President, 

and all an1endments hereof and thereof made as hereinafter in Article 

XII provided. · 

SEc. 6. The term "member of the Code" means any member of the 

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

in Section 3 of Article III provided. 

SEc. 7. The term "the Association" means Forging Manufacturers 

Association, a New York membership corporation. 

SEc . 8. The term "Executive Committee" means the Executive 

Committee (as fr01n time to time constituted) of the Association. 

SEc. 9. The term "the Secretary-Treasurer" means the Secretary 

and Treasurer of the Association at the time in office. 

SEc. 10. The term "unfair practice" means and includes any act 

described as an unfair practice in Schedule G annexed hereto. 

SEc. 11. Wherever used in the Code with reference to the Industry 

or any men1ber of the Industry or any member of the Code, unless 

the context shall otherwise clearly indicate-

(a) The tenn "products" includes hammered and/or pressed forg- ings and the further processing thereof, other than forgings made 

exclusively on drop forging or equivalent equipment, except as pro- duced and/or sold by an owning or affiliating department or company as a part of the products of another industry. 

86 0-33 (1) 
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(b) The term "plant" means only a plant for the production of 

one or more products in the Industry. 

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

in the Industry. 

(d) The term "wages" includes only wages for labor performed in 

the Industry. 

(e) The term "labor" means only labor performed in the Industry. 

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

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

(g) The term "employee" means only an employee in the Industry. 

SEc. 12. The term "National Industrial Recovery Act" means the 

National Industrial Recovery Act as approved by the President June 

16, 1933. 

SEc. 13. The term "effective date of the Code" means ten days 

after the date on which the Code shall have been approved by the 

President pursuant to the National Industrial Recovery Act. 

SEc. 14. The term "the Administrator" means the Administrator 

appointed by the President under the National Industrial Recovery 

Act and at the time in office. 

SEc 15. The term "the Administration" means 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 the 

National Industrial Recovery Act. 

SEc. 2. The purpose of the Code is to effectuate the policy of Title I 

of the National Industrial Recovery Act in so far 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 CoNDITIONS OF EMPLOYMENT 

SEc. 1. Pursuant to subsection (a) of Section 7 of the National 

Industrial Recovery Act and so long as the Code shall be in effect, the 

Code shall be subject to the following conditions: 

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

collectively through representatives of their own choosing, and shall 

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

labor, or their agents, in the designation of such representatives or in 
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self-organization or in other concerted activities for the purpose of 

collective bargaining or other mutual aid or protection; 

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

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

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

his own choo ing; and 

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

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

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

the Industry, its members have made 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 theN ational 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. 

Certain 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 capacities and in technical work and their 

respective staffs, and those employed in emergency maintenance and 

repair work, insofar as practicable and so long as employees qualified 

for the work required shalr be available in the respective localities 

where such work shall be required, and having due regard for the varying demands of the consuming 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 SL'{ days in any one week except in the case of executives, 

those employed in supervisory capacities and in technical work and 

their respective staffs, and those employed on emergency maintenance 

and repair work. Two months after the effective date of this Code, 

as soon as the members of the Code shall be operating at 60 percent 

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 on 

emergency maintenance and repair work, they will establish the 

8-hour day for all their employees. No member of the Code is to u e 

any subterfuge to frustrate the spirit and intent of this Code which is, 

among other things, to increase employment by a universal covenant, 

to remove obstructions to commerce, and to shorten hours, and to 

raise wages for the shorter week to a living ba i . 

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

its plants in the Industry any person und r 16 year of age. 

SEc. 4. For the purposes of this Article IV the wage di tricts 

described in Schedule C annexed hereto have been esta bli hed. 
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SEc. 5. Until changed 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 Industry 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 of pay less than 

the rate specified for such district in such Schedule D, and any violation of this provision of the Code shall be deemed an unfair practice. 

Such rates of pay shall not, however, be understood to be the maximum rates of pay for their respec.tive 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 shaH have been changed by amendment as aforesaid, each member of the Code will pay to each of its 

employees in the Industry who on the date on which it became such 

member was receiving a rate of pay per hour in excess of the rate of 

pay per hour then being paid by such member for common 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 employees 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 substantially the same class or 

kind of labor in the same wage district by any other member of the 

code which shall have increased its rates of pay per hour in accordance 

with such provision. It is agreed that this paragraph establishes a 

guaranteed minimum rate of pay regardless of whether the employee 

is compensated on the basis of a time rate or on a piecework performance. 

ARTICLE V-N EW CAPACITY 

SECTION 1. Until such time as the demand for its products cannot, adequately be met by the fullest possible use of existing capacities for 

producing forgings, such capacities shall not be increased. 

ARTICLE VI-ADMINISTRATION OF THE ConE 

SEcTION 1. The administration of the Code shall be under the direction of the Executive Committee. The Executive Committee shall 

have all the powers and duties conferred upon it by the Code and generally 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-Treasurer shall act as Secretary under the 

Code. Under the direction of the Executive Committee he shall keep 

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

except as such committee shall otherwise provide, shall collect, file, 

and collate all statistics and other information required by the Executive Committee for the proper administration of the Code. 
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SE . 3. The e r tary-Trea. urer shall a.ct a 

Cod and, und r th dir ti n of th Ex utiv ommitt , h hall 

hav cu tody of an hav haro· of the di po ition of all fund c 1-

lect d under the ode; and he hall keep proper book of a count 

showinO' the collection and di position thereof. 

E . 4. The Ex cutive C01nmitt e shall have pow r from time to 

tim (a) to appoint and remove, and to fix the omp n ation of all 

su h other officers and employes and all such accountants, attorneys 

and exp rts, a said Ex cutiv Committee shall deem necessary or 

prop r for the purpose of administering the Code and (b) to fix the 

compensation of the Secretary-Treasurer for his services in acting 

under the Code. 

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

the members thereof. The Executive Committee 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 Committee 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 to 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 Executive Committee 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 Executive Committee under the Code as such Committee shall deem necessary or proper in order to effectuate such purpose. Any member of any such committee may be a member of the 

Executive Committee or an officer or a director or a member of the 

Code or a person not having any official connection with any member 

of the Code or with the Association, as the Executive Committee 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 interests of 

members of the Industry) shall be given full opportunity at such 

times as shall be reasonably convenient to discuss with the Executive 

Committee or any committees thereof any matters relating to the 

administration of the Code and to attend meetings of the Executive 

Committee at which action on any such matters shall be undertaken 

and to make recommendations as to methods or measures of administering the Code. Due notice of all such meetings of the Committee 

shall be given to such representatives of the Administration. The 

records of the Executive Committee relating in any way to the 

administration of the Code shall be open to such representatives at all 

reasonable times. They shall be afforded by the Executive Committee 

complete access at all times to all records, statistical material or other 
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information furnished or readily available to the Executive Committee in connection with or for the purposes of the administration of the 

Code. The Executive Committee, acting directly or through one or 

more committees appointed by it, shall give due consideration to 

all requests, suggestions or recommendations made by such representatives of the Administration and render every possible assistance 

to such representatives in obtaining full information concerning the 

operation and administration of the Code, to the end that the President may be fully advised regarding such operation and administration through reports that may be made to him from time to time by 

such representatives, and to the end that the President may be 

assured that the Code and the administration thereof do not promote 

or permit monopolies or monopolistic practices, or eliminate or oppress 

small enterprises, or operate to discriminate against them and do provide adequate protection of consumers, competitors, employees, and 

others concerned and that they are in furtherance of the public interest and operate 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 conditions 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 G 

annexed hereto shall constitute unfair practices. Such unfair practices 

and all other practices which shall be declared to be unfair practices by the Executive Committee as provided in paragraph P of 

such Schedule Gorby 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 Executive Committee shall have power from time 

to time to require each member of the Code to furnish to the Secretary for the use of the Executive Committee 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 
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information as the Exe utiv C mmittee hall d em nece sary or 

proper in order to ff ctuate the purp se of th ode and th policy 

of Title I of th N ati nal Industrial Recovery Act. The Ex utive 

01nmitt may r quire that any uch inf rmati n be furni hed 

periodi ally at u h time a it shall spe ify and may require that any 

or all informati n furni hed be worn to or otherwi certifi d or 

authenticat d a it hall pr crib . Failure of any m mb r of the 

ode promptly to furnish to the ecrE>tary information requir d by 

the Ex cutive ommitt e and ubstantially in the form pr cribed 

by it hall con titute a violation of the ode. The Ex cutive 

on1mittee hall not require any information regarding trade s crets 

or the 1neans of th cu tomer of any member of the ode. 

Ec. 2. Any or all information furnished to the ecretary by any 

m mb r of the Code shall be subject to checking for the purpo e of 

verification by an examination of the book and accounts and records 

of su h member by any accountant or accountants or other person 

or per ons designated by the Executive Committee and shall be so 

checked for such purpose, if the Executive Committee shall require 

it. The cost of each such 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 Executive Committee shall require the members of 

the Code from time to time to furnish such inforn1ation as shall be 

necessary for the proper administration of the Code. 

SEc. 4. To the extent that the Executive Committee 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 Executive Committee 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 th.e 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 an n1ember of the Code 

of any provision of Article VII or of Schedule E of the Code will disrupt the normal cour e of fair competition in the Industry and cause 

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

impos ible fairly to asses the amount of such damage to any member 

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

8680-33-2 
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Code that each member of the Code which shall violate any such 

provision shall pay to the Secretary-Treasurer as an individual and 

not as treasurer of the Association, in trust, as and for liquidated 

damages the sum or 25% of the price as filed by such member for 

any products sold by such member in violation of any such provision. 

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 more members of the Code for damages suffered by it or 

them, the Executive Committee 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 favor of one or more members of the Code for damages suffered 

by it or them, such member shall become liable to pay to the Secretary-Treasurer as an individual and not as treasurer of the Association, 

in trust, liquidated damages in the amount at the time established by 

the Executive Committee 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 n1ember 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 

Executive Committee, such pro rata share to be computed on the 

san1e basis as the last previous assessment n1ade against such member 

on account of the expenses of administering the Code as hereinbefore 

in Section 5 of Artjcle 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 n1ember of the Code by becoming such n1ember 

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 in1posed 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 n1ember 

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 Secretary-Treasurer as an individual and not as treasurer of the Association, in trust, all rights and causes of action whatsoever which shall 

thereafter accrue to sueh member under the Code for such liquidated 

damages by reason of any violation of the Code by any other member 
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thereof, and thereby d ignat and appoint th e rotary-Tr asurer 

as such individual th tru and lawful attorn y-in-fa t of su h m mb r 

to demand, su for, oll t, and r ipt for any and all amount which 

shall be owing to uch member in rc pcct of any u h right or ause 

of a tion, and to ompromi , ttl , ati fy, and di harg any su h 

right r au. e of action, all in the name of su h member or in the 

name of the Secretarv-Treasurer individually, as he shall lect. 

Ec. 6. Anything in the od to the contrary n twithstanding, the 

Exccuti e Committe by the affirmative vote of two thirds of the 

whol ommitt e may waive any liability for liquidated damages 

impo f'd by or pursuant to any provi ion of the Cod for any violation 

of any provi ion ther of, if in its di retion it shall d cide that such 

iolation has been innocently made and that the collection of such 

damag s will not to any material extent tend to effectuate the policy 

of Title I of the National Indu trial 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 n1ailed postage prepaid addressed to such n1en1ber 

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

in writing signed by any n1ember 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 Executive 

Committee, the Secretary-Treasurer, or any committee, officer, or . employee appointed under the Code. None of the members of the 

Executive C01nmittee or of any committee appointed under the Code 

nor the Secretary-Treasurer 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 deen1ed to confer upon any- one other "than a member of the Code any right, claim, or demand 

what oever not expressly provided by statute against any m.ember 

of the ode or against any member of the Executive Committee or of 

any committee appointed under the Code or again t the Secretar - Treasurer or any officer or employee appointed under the Code. 

SEc. 3. To the extent required or made possible by or under the 

provisions of Title I of the National Indu trial Recovery Act the 

provi. ions of the Code shall apply to and be binding upon every memb r of the Industry, whether or not such member hall be am mber 

of the ode. No member of the Industry which hall not al o be a 

member of the Code shall be entitled to vote at any meeting of m nlbers of the Code or to any other right ppwer, or privilege provided in 

the Code for the member th reo£. 

SEc. 4. The Executive Con1mittee shall have power from time to 

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

but without any limitation npon the foregoing, the power to determine 
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what products 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 Executive Committee shall be final and conclusive 

upon all members of the Code. 

SEc. 5. Nothing contained in this Code of Fair Competition shall 

be construed as prohibiting any member of the industry from exercising all its and/or their lawful patent rights or as requiring any member 

of the industry to do any act in conflict with the terms of a patent 

licensing agreement legally binding upon such member. 

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 1nay 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 Executive 

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

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

meeting 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 

members of the Code were present thereat, shall vote in favor of the. 

adoption of such amendment, such amendment shall be submitted by 

the Executive Committee to the President for approval, if approval 

thereof by him 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 amendment at any time as hereinbefore provided, and also subject to the 

reserved power 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 

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

exercise by the 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. 
ScHEDULE A 

FoRM OF LETTER GiviNG AssENT TO CoDE 

__________ , 1933. 

To the SEcRETARY OF THE FoRGING MANUFACTURERS AssociATION, 

7 East 44th Street, New York, N.Y. 

DEAR Sm: The undersigned, desiring to participate under the Code of Fair 

Competition of the Heavy Forging Industry, hereby assents to all of the provisions of said Code, and to such changes in the same as may be made by the 

Executive Committee of the Association in order to meet the requirements of the 

National Recovery Administration. Effective on the date on which the Code is 

'approved by the President of the United States of America, as therein provided, 

or ~s of the date on which this letter is delivered if delivery is made after such 

date of approval by the President, the undersigned, by the signing and delivery 

of this letter, becomes a participant under said Code, as provided in Article III 

of the Code, and hereby agrees with every person, firm, and corpora.tion who shall 

then be or thereafter become a participant under said Code, that this Code shall 

constitute a valid and binding contract between the undersigned and all such other 

participants. 

Veryitruly yours, 

(Name of Company) 

By ---------------------------------------- (Signature of Authorized Officer) 

(Title of Authorized Officer) 

Address 

(11) 
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 Executive Committee, or by members of the Code having 

the right to cast at least 50% of all the votes that might be cast at such meeting, 

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 

50,000 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 Executive Committee. 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. 

(12) 
ScHEDULE C 

DE CRIPTION OF WAGE DISTRICT 

1. Ea tern Di l1·ict.- ompri e that part of the United tate which i north 

of th tate f Virginia and ea t fa lin drawn north and outh through the most 

easterly p int of Altoona, Pennsylvania; that part of the tate of Maryland 

which i we t of such line; and the Counties of Monongalia, Marion, and Harrison 

in the State of We t Virginia. 

2. Johnstown Distr-ict.- Comprises Cambria County and the City of Altoona in 

the tate of Penn ylvania. 

3. Pittsbur-gh DistTict.-Comprises the Counties of Westmoreland, Fayette, 

Greene, Wa hington, Allegheny, Beaver, Butler, Armstrong, and Jeffer on and 

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

south through the mo tea terly point of Altoona, all in the State of Pennsylvania. 

4. Youngstown Valley Dist1·ict.-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. Nor-th Ohio Rivm· DistTict.-Comprises the cities along the Ohio River north 

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

Jeffer on in the State of Ohio and the Counties of Marshall, Ohio, Brook, and 

Hancock in the tate of We t Virginia. 

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

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

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

and Lorain in the State of Ohio. 

8. Buffalo Distr-ict.-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. Detroit-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 River District.-Comprises the State of Kentucky, the City of 

Parkersburg, West Virginia, 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.-Compri es the Chicago Sv; itching 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 

Wi consin. 

13. Southern District.-Comprises all that part of the nited 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 J efferson 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. 

1 . Utah District.-Compri es the State of tah. 

19. Seattle district.-Comprises the County of Kin" in the tate of Wa hington and the County of Multonomah in the State of Oregon. 20. San Francisco district.-Compri e the Countie of an Mateo, Alameda, 

Sacramento, and Contra Co ta in the ate of California. 

21. Los Angeles district .-Compri e the County of Lo Angele in the tate of 

California. 

(13) 
1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

10. 

11. 

12. 

13. 

14. 

15. 

16. 

17. 

18. 

19. 

20. 

21. 

ScHEDULE D 

MINIMUM RATES OF PAY FOR COMMON LABOR 

Districts 

Eastern District ______________________________________________ _ 

Johnstown District ___________________ ________________________ _ Pittsburgh District ___________________________________________ _ Youngstown Valley District ____________________________________ _ North Ohio River District_ ____________________________________ _ 

Canton, Massillon, and Mansfield District_ ______________________ _ Cleveland District_ ___________________________________ ___ __ ___ _ 

Buffalo District ______________________________________ ________ _ 

Detroit-Toledo District _____ ___________________________________ _ 

South Ohio River District _____________________________________ _ Indiana-Illinois-St. Louis District_ ______________________________ _ Chicago District ______________________________________________ _ Southern D~trict _____________ ________________________________ _ 

Birmingham District __________________________________________ _ Kansas City District ______________________ _____ __ __ ___________ _ Duluth District ______________________________________________ _ Colorado District_ ____________________________________________ _ Utah District ________________________________________________ _ 

Seattle District _______________________ _________________ _______ _ 

San Francisco District ____________________________ _______ _____ _ Los Angeles District _______________ ___ ________________________ _ 

()4) 

Cents per Hour 

35 

37 

40 

40 

40 

37 

40 

38 

40 

37 

37 

40 

25 

27 

35 

37 

40 

39 

38 

37 

35 
ScHEDULE E 

CONCERNING PRICES AND TERMS OF PAYMENT 

SECTION 1. Wherever used in the Code the terms hereinafter in this ection 1 

defin d shall, unless the context shall otherwise clearly indicate, have the respective 

meanings hereinafter in this Section 1 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. 

(a) The term ''base price" of any product means the price for such product 

f.o.b. manufacturer's plant with actual freight allowed to destination. 

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

date of shipment of a product to the purchaser of such product and the 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. 

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

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

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

of free credit in respect thereof. 

(e) The term "an affiliated group" means one or more corporations connected 

through stock ownership with a common parent corporation, if (1) at least 75% 

of the stock of each of such corporations (except such common parent 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 group that also 

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

person, firm or association, a corporation at least 75% of the stock of which is 

owned by such member. For the purposes of this paragraph (e) the term "stock" 

does not include nonvoting stock which is limited and preferred as to dividends. 

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

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

its products as may have been classified by and in a manner approved by the 

Executive Committee, and from and after the expiration of such thirty days 

such member shall at all times maintain on file with the Secretary a list showing 

the base prices for such classified 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 date 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 member 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 ten days after the date on which such new price list shall 

have been so filed. Any member of the Code may have any of its products 

classified upon request in writing to the Executive Committee. 

SEc. 3. The Executive Committee 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 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 Executive Committee shall deem necessary or proper for such purpo e. 

If the Executive Committee after such investigation shall determine that uch 

base price is an unfair base price for such product, having regard to the co t of 

manufacturing such product, and that the maintenance of such unfair base price 

may result in unfair competition in the Industry, the Executive Committee may 

require the member of the Code that filed the list in which such unfair base price 

is shown to file a new list showing a fair base price for such product, which fair 

base price shall become effective immediately upon the filing of such li t. If 

(15) 
16 

such member of the Code shall not within ten days after notice to it of such 

determination by the Executive Committee file a new list showing such fair 

base price for such product, the Executive Committee shall have power to fix 

a fair base price for such product, 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 and in respect of which tb.e Executive Committee 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 Committee 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, until it shall have been changed as in 

the Code provided. A notice of all decisions of the Executive Committee under 

this Section 5, together with the reasons therefor, shall be filed with the President. 

SEc. 4. Except as 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 Schedule F of the Code, unless and until such rates or such 

periods shall be changed by the Executive Committee by the affirmative vote of 

two thirds of the whole Committee and embodied in a new Schedule F filed with 

the Secretary. 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 less than the 

then current rate established by the Executive Committee 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 respect of any invoice for a longer period than the maximum period of free 

credit specified in such Schedule F, but, if any member of the Code shall allow 

credit to any purchaser or allow any purchaser to delay payment in respect of any 

invoice for a period longer than such maximum period of free credit, then such 

member shall charge and collect interest on the amount in respect of which credit 

shall be so allowed or the payment of which shall have been so delayed at a rate 

not less than the current rate established and filed as aforesaid. 

SEc. 5. Except as in this Schedule E of the Code otherwise proided, any 

extras added to, and any deductions made from, the base price for any product. sold by any member of the Code in determining its quoted or billed price for such 

product shall be uniform for all members of the Code. The rates of such extras 

and of such deductions shall be those approved from time to time by the Executive Committee as being in accordance with the trade practice customary in 

the Industry at the effective date of the Code and as meeting the requirements 

of the Code. Lists showing such rates shall be filed with the Secretary and shall 

be open to inspection at all reasonable times by anyone. In case any member of 

the Code shall sell any product to which any such rate of extra or deduction shall 

apply, except as aforesaid such 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 Executive Committee as aforesaid and at the time in effect and none of the 

members of the 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 Executive Committee as aforesaid and 

at the time in effect; provided, however, that nothing in the Code contained shall 

be so construed as to prevent any member of the Code from selling or contracting 

to sell any product for use 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 Executive Committee and a statement of the approval of which 

shall theretofore have been filed with the Secretary, which rate in the opinion of 

such Committee 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. 6. 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 Executive Committee from and 

after such date, none of the members of the Code shall deliver products on consignment except to an affiliated company of such member. All arrangements 
17 

for the d livery by any m ml r f th od of product n on ignm nt (oth r 

than con ignm nt to an aJnliat d ompn.ny of u h m mb r) xisting on the 

eff ctiv date of the Cod h 11 b t rminat d on orb f re Jun 30, 1934, and all 

tock h ld on con ignm nt n that date shall ither b sold to tb consignee or 

po i n th r of hall b tak n b th consignor. 

EC. 7. 11 ontra t, f r forging ar t be limit d to a thr e month ' p riod. 

EC. . A al made hy any m mbcr f the Code indir ctly through any affiliated 

company f u h m mb r hall be d em d to be a sale made hy such member. 

EC. 9. N thing in the Code contain d shall he deemed to apply to or affect 

th sal of any product for direct shipment in export trade by any member of the 

Code within th meaning of the term "export trade" as it is used in the Export 

Trade Act or unle sand to the xtent that the Executive Committ e shall otherwi d t rmine, the sale of any product by any such member for direct hipment 

to the Pllilippine , Ha" aii, or Puerto Rico or other insular poss s ions of the 

United States of America. 

Ec. 10. If and to the extent requested by the Administrator, all decisions of, 

permission and approvals given by, and rules and regulations made by the 

Executive Committee pur uant to any provision of this Schedule E shall be reported to him. 
ScHEDULE F 

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 Mississippi 

River to Pacific Coast ports and which shall be invoiced from such plants, ~of 1 percent if the invoice of such products shall be paid within 25 days from 

the date of such invoice; in all other cases,-~ of 1 percent if the invoice of such 

products shall be paid within ten 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 percent for payment within ten days on the basis of settlements 

three times in each month, as follows: 

(1) On invoices for products dated from the first to the tenth, inclusive, in any 

month, such discount may be allowed on payment of such invoices on or before 

the twentieth of such month; 

(2) On invoices for products dated from the eleventh to the twentieth, inclusive, 

in any month, such discount may be allowed on payment of such invoices on or 

before the thirtieth of such month; and 

(3) On invoices for products dated from the twenty-first to the end of any 

month, such discount may be allowed on payment of such invoices on or before 

the tenth of the next following month. 

Any discount allowed in accordance with the provisions of this Schedule F 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, 

forty-five days; in all other cases, thirty days. 

(18) 
ScHEDULE G 

LIST 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. Canceling 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 purchaser. 

M. Selling any product or service below the cost, and for this purpose cost is 

defined as cost of direct labor plus cost of material plus adequate amount of overhead including the amount for the use of plant facilities employed as determined 

by cost-accounting methods recognized in the industry and approved by the 

Executive Committee. 

N. The selling of any product on a lump sum basis or a guaranteed weight. • 

0. Payment by a manufacturer of any inspection fees or expenses incurred by 

reason of an inspection required by the purchasers. 

P. Any violation of any other provision of the Code, whether or not therein 

expres ed to be such, or using or employing any practice not hereinabove in this 

Schedule G described which the Executive Committee by the affirmative vote 

of three-fourths of the whole Committee 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 Committee the Secretary shall have given notice to the members of the Code and to 

the President. 

(19) 

0 


UNIVERSITY OF FLORIDA 

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