Registry No. 1323-04 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

AMERICAN 

PETROLEUM EQUIPMENT INDUSTRY 

AND TRADE 

AS APPROVED ON NOVEMBER 2, 1933 

BY 

PRESIDENT ROOSEVELT 

WE DO OUR PARr 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the Superinte ndent of Documents. Washingtou, D.C. - - - Price 5 cents 

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

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

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. Birmingham, Ala.: 257 Federal Building. 

Boston, Mass.: 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

Charleston, S.C.: Chamber of Commerce Building. 

Chicago, Ill.: Suite 1706, 201 North Wells Street. 

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, Mich.: 2213 First National Bank Building. 

Houston, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn.: 229 Federal Building. 

Minneapolis, Minn.: 213 Federal Building. 

New Orleans, La.: Room 225-A, Customhouse. 

New York, N.Y.: 734 Customhouse. 

Norfolk, V a.: 406 East Plume Street. 

Philadelphia, Pa .: 933 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif.: 310 Customhouse. 

Seattle, Wash.: 809 Federal Building. 

(II) 
EXECUTIVE ORDER 

ConE OF FAIR CoMPETITION FOR THE AMERICAN PETROLEUM 

EQUIPMENT INDUSTRY AND TRADE 

An application having been duly made, pur uant to and in full 

compliance with the provisions of title I of the National Indu trial 

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

Fair Competition for the American Petroleum Equipment Industry 

and Trade, and hearings having been held thereon and the Admini - trator having rendered his report containing an anal)Tsi of the said 

code of fair competition together with his recommendations and findings with respect thereto, and the Administrator having found that 

the said code of fair competition complies in all respects with the 

pertinent provisions of title I of said act and that the requirements 

of clauses (1) and (2) of subsection (a) of section 3 of the said act 

have been met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 

United States, pursuant to the authority vested in me by Title I of 

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

otherwise, do adopt and approve the report and recommendations, 

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

fair competition be and it is hereby approved. 

THE WRITE HousE, 

November 2, 1933. 

Approval recommended: 

HuGH S. JoHNSON, 

Administrator, 

The PRESIDENT, 

The vrhite I-Iouse. 

FRANKLIN D. ROOSEVELT. 

OcTOBER 28, 1933. 

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

American Petroleum Equipment Indus ry and Trade in the United 

States, conducted in Washington on October 20, 1933 in accordance 

·with the provi ... ions of the National Industrial Recov ry Act. 

PllOVISIO ~s FOR HOURS AND \\AGES 

The maximum of 40 hours a week average in any 3 months' period 

and 48 hours or 6 days in any one week, is provided to all employ es 

in this Indu try and Trade, with the follo\.\i.ng exceptions: 

Employee in emergenc maintenance or repair work will not be 

limited to 48 hour or 6 days a week. Watchmen and gate men ''ill 

be permitted to work 56 hours a ,,~eck. , one of the limitations in 

hours apply to executives and their immediate a istant , employees 

in super-vi ory capacities and in ret:earch and technical work who 

(III) 
IV 

receive $35.00 or more per week; nor to outside salesmen and service 

men. 

The minimum wage provided for any employee who works on an 

hourly basis is 40 cents an hour, except in specified Southern States~ 

where the minimum provided is 35 cents per hour. Time and a third 

will be paid for work in excess of 40 hours a week or 8 hours a day. 

The minimum wage to all other employees will be $15.00 per week; 

except to office boys who will receive $12.00 a week, provided that 

they do not number more than 5 percent of the total employees to 

which this paragraph applies. 

The hourly wage rates apply to employees working on either a 

time or piecework basis. 

CHILD LABOR 

The age limitation is 16 years, except in hazardous occupations or 

those detrimental to health. The Code Authority will submit to the 

Administrator a list of such occupations within 30 days after the 

effective date of this Code. 

ECONOMIC EFFECT OF THE CODE 

The Petroleum Equipment Industry has been effected greatly by 

the curtailment of petroleum production. Sales in the Industry 

were approximately $300,000,000 in 1929, but were decreased to 

$70,000,000 in 1932. Employment fell from 22,000 in 1929 to approximately 9,500 in 1932. In 1929 the Industry employed one man 

per $13,250 of yearly sales, but at the beginning of the year 1933 the 

annual rate of sales per employee was $6,650. 

The 40-hour week schedule fixed in this Code represents a substantial reduction from an average of 50 hours per week previous to the 

enactment of the National Recovery Act. The application of the 

40-hour schedule together with some increase in business has resulted 

since March 1, 1933, in an increase of about 4,000 employees, or an 

increase of 42 percent in employn1ent from the low point of the 

depression. 

Wage provisions in this Code result in an average minimum wage 

increase of about 20 percent. Most of the plants in the Industry 

granted a 15 percent wage increase to all classes of employees upon 

the application of the 40-hour week. The total wage bill added to 

the Industry through increased wa.ges and additional employees exceeds 25 percent, which can only be offset by an increase in business. 

In offering the Code this Industry has demonstrated a ready compliance with the spirit of the Act. , 

FINDINGS 

The Administrator finds that: 

(a) The Code as recommended complies in all respects with the 

pertinent provisions of Title I of the Act, including, without limitation, subsection (a) of Section 7 and subsection (b) of Section 10 

thereof; and that 

(b) The applicant group imposes no inequitable restrictions on 

admission to membership therein and is truly representative of the 

American Petroleum Equipment Industry and Trade; and that 
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(c) The Code as recommended is not designed to promote monopo- lies or to eliminate or oppress small nterprises and will not operate 

to discriminate against the1n, and will tend to effeetnate the policy 

of Title I of the National Industrial Recoverv Act. 

It is recommended, therefore, that this Code be adopted. 

Respectfully, 

HuGH S. JoHNSON, 

Administrator. 
' / 

' 
CODE OF FAIR COMPETITION OF THE AMERICAN PETROLEUM EQUIPMENT INDUSTRY AND TRADE 

ARTICLE I-DEFINITIO_JS 

SECTION 1. Whenever used in this Code, the terms hereinafter in 

this Article I defined shall, unless the context shall otherwise clearly 

indicate, have the respective meanings hereinafter in this Article I 

set forth. The definitwn of any ~uch term in the singular shall apply 

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

SEc. 2. The term "the Industry" means and includes the bu iness 

of manufacturing machinery, equipment, or supplies used in the 

Petroleum Industry as in this Article I defined, excepting, however, 

any machinery, equipment, or supplies which n.re sp cifically in luded 

within any other basic Code of Fair Competition \\·hich has been or 

may be approved by the President. 

SEc. 3. The term "the Trade" means and includes tee business 

of selling machinery, equipment, supplies, or services to the Petroleum Industry as in this Article I defined, excepting, however, any 

machinery, equipment, supplies, or services, which are specifically 

ineluded within any other basic Code of Fair Competition 'A·hich has 

been or may be approved by the President.. 

SEc. 4. The term "member of the Industry and Trade" means 

everyone, including, but without limitation, every person, partnership, 

association, or corporation engag-ed, in whole or in part, in the Industry and/or the Trade as in this Article I defined. 

SEc. 5. The term "the Petroleum Industry" means and includes the 

business of drilling, producing, pipe-line transporting, refining, or 

storing petroleum, or of producing or pipe-line transporting nn.tural 

gas, in the United States of America. SEc. 6. The term "member of the Code" means and includes 

every member of the Industry and Trade which has signed and de- livered to the Code Authority a letter substantially in the form set 

forth in Schedule A attached hereto. 

SEc. 7. The term "product" means and includes any machinery, 

equipment, supplies, or services manufactured for or sold to the 

Petroleum Industry as in this Article I defined, excepting, however, 

any machinery, equipment, supplies, or services, ,,·hich are specifi- cally included within any other basic Code of Fair Competition which 

has been or may be approved by the President. 

SEc. 8. The term "employee" means and includes anyone en- gaged in the Industry or Trade ir1 any capacity receiving compen ation 

for his services irrespective of the nature or method of pa rment of 

such compensation. 

SEc. 9. The term "employer" means and includes anyone by 

whom any such employee is compensated or employed. SEc. 10. The term "the Association means and includes the 

American Petroleum Equipment Suppliers' As ociation. 

SEc. 11. The term "price list ' means nd includes (a) a list of 

minimum prices or prices ''-i.th ma:h-imum discounts th refrom at 

(1) 
2 

which the member of the Industry and Trade filing such list shall 

sell his or its products direct to consumers or ultimate users, and, if 

such products are sold by such members of the Industry and Trade 

through jobbers or wholesalers, (b) a list of minimum prices or prices 

with maximum discounts therefrom at which the member of the 

Industry and Trade filing such list shall sell his or its products to 

jobbers or wholesalers. SEc. 12. The term "discount for early payment" means the 

amount of the deduction allowed for the cash payment of an invoice 

for products before the expiration of the period of free credit in 

respect thereof. 

SEc. 13. The term "period of free credit" means the period of 

time between the date of a shipment of a product to the purchaser 

of such product and 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. 

SEc. 14. The term "the President" means the President of the 

United States. 

SEc. 15. The term "the Act" means the National Industrial Recovery Act. 

SEc. 16. The term "the Administrator" n1eans the Administrator 

of the National Industrial Recovery Act. 

SEc. 17. The term "the Code" means and includes this Code as 

originally approved by the President of the United States and all 

amendments thereof made in accordance with law. 

SEc. 18. The term "the effective date" means the 11th day after 

the Code shall have been approved by the President of the United 

States, pursuant to the National Industrial Recovery Act, upon 

which date the Code shall become effective. 

ARTICLE II-PURPOSE oF THE ConE 

SECTION 1. The purpose of the Code is to effectuate the policy of 

Title I of the Act. 

SEc. 2. The Code is adopted pursuant to Title I of the Act. 

ARTICLE III- MEMBERSHIP IN THE ConE 

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

Industry and Trade which shall comply with the provisions of the 

Code shall be entitled to participate in its benefits under the terms 

and conditions set forth in the Code. 

SEc. 2. Any member of the Industry and Trade is eligible for 

membership in the Code. 

SEc. 3. Every member of the Association, and every member of 

the Industry and Trade (which is not a member of the Association 

and which has the right to participate in the election of the Code 

Authority and receives the benefits of its activities), shall pay to the 

Code Authority its pro rata share of the cost of administering the 

Code. The reasonable share of the expense of administration shall 

be determined by the Code Authority, subject to review by the 

Administrator, on the basis of volume of business and/or sueh other 

factors as n1ay be deemed equitable to be taken into consideration. 
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ARTICLE IV-GENERAL LABOR PROVISIONS 

SECTION 1. On and after the effective date, no person under 16 

years of age shall be employed in the Industry or Trade, nor anyone 

under 18 years of age at operations or occupations hazardou in nature 

or detrimental to the health of such employee. The Code Authority 

shall submit to the Administrator within thirty days after the effective date a list of such occupations. 

SEc. 2. Employees shall have the right to organize and bargain 

collectively through representatives of their own cboo incr, and shall 

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

labor, or their agents, in the designation of such representativ s or in 

s If-organization or in other concerted activities for the purpo e of 

collective bargaining or other mutual aid or protection. 

SEc. 3. No employee and no one seeking employment shall be required as a condition of employment to join any company union or to 

refrain from joinino-, organizing, or assisting a labor organization of 

his own choosing. 

SEc. 4. Employers shall comply with the maximum hours of labor, 

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

or prescribed by the President of the United States. 

SEc. 5. Within each State no provision of the Code shall supersede 

any laws of such State imposing more stringent requirements on employers regulating the age of employees, wages, hours of labor, or 

health, fire or o-eneral working conditions, than under the Code. 

SEc. 6. Each member of the Industry and Trade shall post in conspicuous places full copies of the Code. 

SEc. 7. All wages shall be paid in law-ful currency or by negotiable 

check paid on demand. 

SEc. 8. On and after the effective date, the minimum wage that 

shall be paid by any member of the Industry and Trade to any 

employee employed on an hourly basis shall be forty cents per hour; 

except that in Texas, Oklahoma, Louisiana, Alabama, Georgia, 

Florida, North Carolina, South Carolina, Arkansas, Tenne see, 

Missouri, and Mississippi the minimum wage that shall be paid by 

any member of the Industry and Trade to any such employee shall 

be not less than thirty-five cents per hour. Any e1nployee referred 

to in this Section 8 of Article IV who works in exce s of 8 hours per 

day or 40 hours per week, shall be paid not less than time and one 

third for the excess hours so worked. 

SEc. 9. On and after the effective date, the minimum wage which 

shall be paid bl any member of the Industry and Trade to '"'all other 

employees shal be at the rate of $15.00 per 'veek, excepting office 

boys, who shall be paid not less than $12.00 in any one week, provided, however, that the number of such bo s shall not exceed 5% 

of the total number of employees eno-aged by any one emplo er and 

included within the scope of this Section 9 of Article IV, but in any 

event any employer may employ at least one office boy. 

Sections 8 and 9 of this Article IV establish a minimum rate of 

pay, regardless of whether an employee is compensated on a time rate, 

piecework, or other basis. 

SEc. 10. On and after the effective date, none of the members of the 

Industry and Trade shall cause or permit any employee, except 

executives, their immediate assistants, those employed in supervi ory 

capacities, and in research and technical work, who are paid not less 

18927°----188-124----33--2 
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than $35.00 per week, and except also outside salesmen and outside 

service employees, to work at an average of more than 40 hours per 

week in any three months' period or to work more than 48 hours or 

more than 6 days in any one week. The maximum hours fixed in 

this Section 10 of this Article IV shall not apply to employees engaged 

in emergency maintenance or emergency repair work involving 

breakdowns or protection of life or property, but in no event shall 

any employee engaged in such emergency work, work at an average 

of more than 40 hours per week in any three months' period. The 

maximum hours fixed in this Section 10 of this Article IV shall not 

apply to watchmen and gate tenders, provided, however, such employees shall not be permitted to work in excess of 56 hours in any 

one week. 

SEc. 11. Not later than 60 days after the effective date each employer in the Industry and Trade shall report to the Administrator 

through the Code Authority the action taken by such employer since 

June 16, 1933, in adjusting the hourly wage rates for all employees 

receiving more than the minimum rates provided in Sections 8 and 9, 

of this Article IV. 

ARTICLE V-ADMINISTRATION oF THE ConE 

SECTION 1. The Association is hereby designated an agency for 

promoting the performance of the provisions of the Code by the members of the Industry and Trade. The Board of Directors of the 

Association, together with two members of the Industry and Trade 

which are not members of the Association (if any members of the 

Industry and Trade which are not members of the Association so 

desire and so petition said Board of Directors), to be elected by such 

nonmembers by fair methods of election to be approved by the 

Administrator, in conjunction with such non-voting appointees of 

the National Recovery Administration as the Administrator may 

deem necessary, are hereby designated the Code Authority for administering and supervising the performance of the provisions of the 

Code. The aforesaid Board of Directors shall consist of eleven 

members of the Industry as defined in Section 2 of Article I and 

eleven members of the Trade as defined in Section 3 of Article I. 

SEc. 2. The Code Authority may from time to time interpret and 

construe the provisions of the Code for members of the Code. 

SEc. 3. The Code Authority may from time to time appoint such 

officers or committees as it shall deem necessary or proper in order 

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

such officer or committee generally or in particular instances such of 

the powers and duties of the Code Authority under the Code as such 

Code Authority shall deem necessary or proper in order to effectuate 

such purpose; provided, however, that the Code Authority shall not 

be relieved of final responsibility with respect to any such delegated 

powers or duties. 

SEc. 4. A majority of the members of the Code Authority shall 

constitute a quorum for the transaction of business. 

SEc. 5. Each industrial or trade association directly or indirectly 

participating in the selection or activities of the Code Authority shall: 

(1) Impose no inequitable restrictions on membership, and (2) submit 

to the Administrator true copies of its articles of association, bylaws, 
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regulations 1 and any am ndments when made ther to, together with 

such other mformation as to member hip, organizati n, and a tiviti s 

as the Administrator may deem nee sary to ffectuat the purposes 

of the Act. 

SEc. 6. In order that the Code Authority shall at all times be truly 

revresentative of the Industry and Trade and in other r spe ts comply 

Wlth the provisions of the Act, the Administrator may provide su h 

hearings as he may deem proper; and thereafter if he shall find that 

the Code Authority is not truly representative or does not in oth r 

respects comply with the provisions of the Act, may r quire an 

appropriate modification in the method of selection of the Code 

Authority. 

SEc. 7. The Administrator shall have the right to review, cancel, 

or modify any decisions or any other action pursuant to the Code by 

the Code Authority. 

ARTICLE VI-OPEN PRICE REPORTING 

SECTION 1. Each member of the Industry and Trade shall file with 

the Code Authority, within twenty days after the effective date, price 

lists, individually prepared by such member, and his or its terms and 

conditions of sale (which terms and conditions of sale shall specify 

the discount for early payment and the period of free credit), for 

products regularly manufactured for, or sold or furnished to, the 

Petroleum Industry by such member, which price lists and terms 

and conditions of sale so filed with the Code Authority shall be open 

to in·spection at all reasonable times by any member of the Industry 

and Trade. Revised price lists or revised terms and conditions of 

sale may be filed from time to time thereafter with the Code Authority by any member of the Industry and Trade. If the prices noted 

in the revised price list of any such member, or if the revi ed terms 

and conditions of sale are more favorable to the purchaser of products than the terms and conditions of sale of such member, then on 

file with the Code Authority, the revised price list or revised terms 

and conditions of sale shall not become effective until ten days after 

the date of the filing thereof; otherwise the same shall become effective on such date as the member of the Industry and Trade filing the 

same shall designate. Notice of the filing of any such revised price 

list or revised terms and conditions of sale shall be mailed by the 

Code Authority immediately to all other members of the Industry 

and Trade which, at the time of such filing, had on file ·with the Code 

Authority price lists for similar products. Any of such other members of the Indu try and Trade may, if th y desire, file re\isions of 

their price lists or terms and conditions of sale, which shall become 

effective on the date when the revised price list or revised terms and 

conditions of sale first filed shall become effective, if the prices noted 

in the revised price lists of such other members are not lower than 

the prices noted in the revised price list fir t filed or the terms and 

conditions of sale of such other members are not more favorable to 

the purchaser of products than the revised terms and conditions of 

sale first filed; otherwise the revi ed price lists or revised terms and 

conditions of sale of such other members shall not become effective 

until ten days after the date of the filing thereof. Any member of 

the Industry and Trade may, upon request and at the expense of 
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such member, obtain from the Code Authority copies of any such 

list so filed. 

SEc. 2. Each member of the Industry and Trade shall file with the 

Code Authority within twenty days after the effective date, and 

from time to time thereafter, but not oftener than once every thirty 

days, a list of discontinued lines, or obsolete or surplus stocks, of 

products which such member is willing to sell below the prices noted 

in the price lists or on more favorable terms and conditions of sale 

than the terms and conditions of sale previously filed by such member 

with the Code Authority in ~ccordance with the provisions of Section 

1 of Article VI, and in effect at the time of the filing of such list, and 

the prices at which, or the terms and conditions of sale in accordance 

with which, such member is willing to sell the same or any part 

thereof, which list shall contain such information as to the quantity, 

size, weight, Etc., of the products noted therein as the Code Authority 

may deem necessary. Before any sales of any of such products shall 

be made by any member of the Industry and Trade, the list, prices, 

and terms and conditions of sale so filed must be approved by the 

Code Authority. Notice of the filing of any such list which shall 

have been approved by the Code Authority shall be mailed by the 

Code Authority to all members of the Industry and Trade which at 

the date of such filing had on file with the Code Authority price lists 

for similar products. Any member of the Industry and Trade may, 

upon request and at the expense of such member, obtain from the Code 

Authority copies of any such list so filed. When all of any class of 

products noted on any such list shall have been sold, the member of 

the Industry and Trade filing such list shall notify the Code Authority 

to that effect. The foregoing provisions of this Section 2 of Article 

VI shall at all times be subject to 1nodification or disapproval by the 

Administrator. 

SEc. 3. Except as provided in Section 2 of this Article VI, no mem- ber of the Industry and Trade shall sell, lease, rent, exchange, or 

furnish any products at prices lower than the prices noted in the 

price list or on more favorable terms and conditions of sale than the 

terms and conditions of sale previously filed by such member with 

the Code Authority in accordance with the provisions of Section 1 of 

this Article VI, and in effect at the time of such sale, lease, rental, 

exchange, or furnishing of such products. 

ARTICLE VII-SALES 

Except as provided in Section 2 of Article VI, no member of the 

Industry and Trade shall sell, lease., rent, exchange, or furnish any 

products at prices that, or upon such terms and conditions of sale as, 

will result in the purchaser's paying for such products less than the 

cost thereof to the seller; provided, however, that the seller shall be 

permitted to meet the price of a competitor whose price does not 

violate the provisions of the Code. In order to determine such cost, 

each member of the Industry; and Trade shall conform his or its 

costing system_ to such accounting standards and shall include therein 

such elements of cost as shall be approved by the Code Authority 

and the Administrator. 
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ARTICLE VIII-REPORTS AND ~TATJSTICS 

SECTION 1. The Code Authority shall hav po' r from time to 

time, to require each member of the Indus rv a._d Trade to furni h 

to the Code A,1tbority such information one('rning th numbrr of 

his or its emplo r s, rates of pav (except rat s of pav of executin s), 

hours of labor, and other conditions of e1n pl yment, an d su h other 

information as may be ne ssary or proper in or er to admini ter the 

Code. The Code Authority shall not require any information 

regarding trade secrets or the names of the customers of any 1nember 

of the Industry and Trade. In order that the Pre"ident may be 

informed as to the observance and operation of the ode, the ode 

Authority shall make such reports as the Administrator may req11ire. 

SEc. 2. In addition to tbe informn.tion reqnired to be submitted 

to the Code Authority, there shall be furnished to Government 

agencies such statistical information as the Administrator may deem 

necessary for the purposes recited in Section 3 (a) of the Act. 

ARTICLE IX-GROUPING OF MEMBERS 

Aggregations of members of the Code or aggregation of members 

of the Code and of the Industry and Trade having a common interest 

and common problems may be grouped by the Code Authority for 

administrative purposes in proper subdivisions or product classifications under such rules and regulations not inconsistent with the Code 

as may be adopted, from time to time, by the Code Authority. 

ARTICLE X-UNFAIR PRACTICES 

For the purposes of the Code, the following described acts shall 

constitute unfair practices in the Industry and Trade. 

(a) Making or promising to any purchaser or prospective purchaser of any product, or to any officer, employee, agent, or representative of any such purc.haser 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 Industry and Trade, any information concerning the business of 

such member which is properly regarded by such member as a trade 

secret or confidential within his or its organization. 

(c) The imitation or simulation by any member of the Code of any 

de ign, style, mark, or brand used by any other member of the Code, 

or the adoption or use by any member of the Code of the same trade 

name or company name of any other member of the Code. 

(d) Using or substituting any material superior in quality to that 

specified by the purchaser of any product. 

(e) Cancelling in whole or in part, or permitting the cancellation 

in v. hole or in part of, any contract of sale of an product, except 

for a fair consideration, r paying or allowing to any purchaser in 

connection with the sale of any product an~ rebate, commi ion, 

credit, di count, adju tment (including what i knmvn in the Indu try 

or Trade a a policy adju tment) or imilar concession other than as is 

p rmitted by the Code and pecified in the contract of sale. 

(f) Disseminating, publishing, or circulating an fal e or misleading 

information relative to any product or price for any product of any 

member of the Indu try and Trade, or the credit standing or ability 
8 

of any member thereof to perform any work or manufacture or produce 

any product, or to the conditions of employment among employees 

of any member thereof. 

(g) Inducing or attempting to induce by any means any party to a 

contract with a member of the Industry and Trade to violate such 

contract. 

(h) Aiding or abetting any person, partnership, association, or 

corporation in any unfair practice, as set forth in this Article X. 

(i) Making or giving to any purchaser of any product an:y guaranty 

or protection in any form against decline in the market pnce 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) IVIn.king 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 or Trade. (l) Rendering to any purchaser of any product in or in connection 

with the sale of such product any service (except technical or engineering services), unless fair compensation for such service shall be paid 

by such purchaser. 

(m) Consignment of any product to any prospective consumer or 

ultimate user thereof \vithout any obligation on the part of such 

prospective consumer or ultimate user to purchase the same. 

The conducting of field tests or demonstrations of new products 

by any member of the Industry and Trade, without compensation to 

such member, shall not be deemed to be an unfair practice. 

(n) The sale of an indefinite quantity of products for a price certain. 

(o) The guaranty of any product beyond the regular guaranty as 

specified in the terms and conditions of sale on file with the Code 

Authority and in effect at the time of the sale of such product. 

(p) Extending jobbers' or wholesalers' prices to anyone who is not, 

in the opinion of the Code Authority, a jobber or wholesaler, after 

receiving notice to that effect from the Code Authority. 

(q) Buying or offering to buy from purchasers of products any 

goods, wares, or merchandise of their n1anufacture in excess of ordinary business requirements, when the intent or result of such 

purchase is to secure business. 

(r) The loan for use of any product to any prospective consumer or 

ultimate user thereof when there is no obligation on the part of such 

prospective consumer or ultimate user to purchase, lease, or rent such 

product in accordance with the price list and terms and conditions 

of sale on file with the Code Authority and in effect at the time of 

such purchase, lease, or rental of such product. 

Any unfair practice by any me1nber of the Industry and Trade shall 

constitute a violation of the Code by such member. 

ARTICLE XI-V roLATIONs oF THE ConE 

SECTION 1. Any ·violation of any provision of the Code, or any 

amendments thereto, by any member of the Industry and Trade shall 

constitute a violation of the Code by such member. 

SEc. 2. Upon written complaint to the Code Authority by any 

member o.f the Code that any of the provisions of the Code have been 
9 

violated by any other member of the Code, the Code Authority shall 

investigate the facts in connection with the all ged vi lation, and to 

that end may cause such examination or audit to b made a may be 

deemed necessary and proper and, upon proof to the sati faction of 

the Code Authority that a vioiation has occurred, the ode Authority 

shall, without in any way affecting any enalties and liabiljties imposed 

by statut , take such steps a , in its opinion, it eem advisable to 

prevent a repetition of such violation. 

SEc. 3. Recognizing that the violation by any member of th Code 

of any provision of either Article VI or Article VII will di. rupt the 

normal course of fair competition in the Industry and Trade and 

cause serious damage to other members of the Code, n.nd that it will 

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

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

of the Code that if it shall be determined by the Code Authority, 

after investigation, that any member of the Code has violated any 

provision of either said Article VI or Article VII, such member shall 

pay to the Treasurer, for the time being in office, of the Association, 

as liquidated damages, in addition to all penalties and liabilities 

imposed by statute, a sum equal to twenty per centum of the invoiced 

price of any products in connection with which such violation 

occurred. Any amounts so paid to, or collected by, the said Trea- surer of the Association under this Article :XI shall be held and disposed of by him as part of the general funds of the Association. 

SEc. 4. Anything in the Code to the contrary notwithstanding, 

the Code Authority by the affirmative vote of two thirds of all the 

members thereof may waive any liability for liquidated damages 

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

such violation was innocently made and that the collection of such 

damages will not in any material extent tend to effectuate the policy 

of Title I of the Act. 

ARTICLE XII-GENERAL PROVISIONS 

SECTION 1. To the extent required or permitted by or under the 

provisions of Title I of the Act, the provisions of the Code shall apply 

to and be binding upon every member of the Industry and Trade, 

whether or not such member shall be a member of the Code. 

SEc. 2. This Code and all the provisions thereof are expressly made 

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

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

or modify any order, approval, license, rule, or regulation issued under 

Title I of said Act and specifically, but without limitation, to the 

right of the President to cancel or modify his approval of the Code or 

any conditions imposed by him upon his approval thereof. 

SEc. 3. The Code is intended to be a basic code and study of the 

trade practices of the Industry and Trade will be continued by the 

Code Authority ·with the intention of submitting from time to time 

to the Administrator recommendations for additions, amendment , or alterations of such provisions of the Code, applicable to members 

of the Industry and Trade, as are not required by the Act to be included herein, and for supplemental codes applicable to one or more 

branches or subdivisions or product classifications of the Industry 
10 

and Trade, such supplemental codes, however, to conform to and be 

consistent with the provisions of the Code as now constituted or hereafter amended. No such proposed additions, amendments, or alterations to the Code, or supplemental codes, shall, however, be submitted 

by the Code Authority to the Administrator with a recommendation 

for approval except only after the affirmative vote of three fourths of 

all the members thereof. 

SEc. 4. If any member of the Industry and Trude is also a member 

of any other industry or trade than the Industry or Trude as defined 

in Section 2 and Section 3, respectively, of Article I, the provisions 

of the Code shall apply to and affect only that part of his or its busi-

:r:e3s which is included in the Industry or Trade. 

SEc. 5. Nothing in the Code contained, except the General Labor 

Provisions as set forth in Article IV of the Code, shall be deemed to 

apply to or affect the sale of any product for direct shipment, or the 

sale of any product purchased for direct shipment, in export trade by 

any member of the Industry and Trade within the meaning of the 

term "export trade" as it is used in the Export Trade Act, or, unless 

and to the extent that the Code Authority shall otherwise determine, 

the sale of any product for direct shipment, or the sale of any product purchased for direct shipment, by any such member, to the Phil- 'ippines, Hawaii, Puerto Rico, the Canal Zone, or other insular possessions of the United States of America. 

SEc. 6. Any member of the Industry and Trade n1ay vvithdraw from 

membership in the Code after June 16, 1935, or after such published 

date as may be fixed by proclamation of the President or by joint 

resolution of the Congress as the date on which the emergency recognized by Title I of the Act has ended. Upon such withdrawal, all 

obligations and liabilities of such member under the Code shall cease, 

except those for liquidated damages or assessments theretofore ac- crued under any provision of the Code. 

SCHEDULE A 

FORM OF LETTER OF ASSENT TO THE CODE 

AMERICAN PETROLEUM EQUIPMENT SuPPLIERS' AssociATION, 

Tempomry address, 4-13 Esperson Bldg ., Houston, Texas. 

GENTLEMEN: The undersigned desiring to become a member of the Code of 

Fair Competition of the American Petroleum Equipment Industry and Trade, a 

copy of which is annexed hereto, hereby approves, and by this letter subscribes 

to, all of the provisions of such Code, effective as of the effective date of such Code, 

or as of the date of the mailing of this letter if it shall have been mailed subsequent 

to such effective date of the Code, and hereby agrees with every person, partnership, association, or corporation which shall be or hereafter become a member of 

the Code, that the Code shall constitute a valid and binding agreement between 

the undersigned and all such other menl,'Ders. 

The undersigned hereby authorizes the Board of Directors of the American 

Petroleum Equipment Suppliers' Association, or such members thereof as may be 

designated by said Board of Directors, hereinafter called the "Presentation Committee," to represent the undersigned in the presentation and submission of such 

Code to the proper authorities of the National Recovery Administration for approval by the President of the United States, hereby giving and granting unto 

said Presentation Committee full power and authority to consent t o or approve 

such additions to or modifications thereof 2.s may be required by the National 

Recovery Administration. 
11 

The execution and delivery of this letter by the undersigned shall be deemed 

to be a subscription to and ratification and approval by the und rsign d of any 

such additions or modifications con nted to and approv d by the Presentation 

Committee. 

The undersigned hereby transfers, assigns, and delivers to the American Petroleum Equipment uppliers' As ociation all rights and cause of action whatsoever hereafter accuring to the undersigned under the Code for liquida ed dam- ages by rea on of any violation by anyone, and hereby d signate and appoints 

the Treasurer, for the time being in office, of said As ociation the true and lawful 

attorney in fact of the undersign d to demand, sue for, colle t, and receipt for 

any and all amounts that shall be owing to the undersicrned by rea on of any such 

right or cause of action, and to compromise, settle, ati fy, and di ·charge any 

such right or cause of action in th name of the undersigned, or in the name of 

said Treasurer, as said Tr asurer shall el ct. 

Until written notice of a chancr of address of the undersigned is filed with the 

Association, the address of the under igned shall be as et forth at the foot of this 

lett r. 

Very truly yours, -------, Presi dent. 

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