Registry No. 1104—01 NATIONAL RECOVERY ADMINISTRATION PROPOSED CODE OF FAIR COMPETITION FOR THE BOLT, NUT, AND RIVET INDUSTRY AS SUBMITTED ON AUGUST 24, 1933 The Code for the Bolt, Nut, and Rivet 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 the National Recovery Administration as applying to this industry UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1933 For sale by the Superintendent of Documents, Washington, D.C. Price 5 cents American Institute of Bolt, Nut, and Rivet Manufacturers, Cleveland, Ohio, August 28, 1933. R. J. Whelan, President American Institute of Bolt, Nut, and Rivet Manufacturers, Cleveland, Ohio. Chas. R. Ferguson, Chairman Code Committee, American Insti- tute of Bolt, Nut, and Rivet Manufacturers, Pittsburgh, Pa. Gentlemen : Pursuant to a motion unanimously carried at the meeting of the Bolt, Nut, and Rivet Industry called on August 24, 1933, by the American Institute of Bolt, Nut, and Rivet Manufac- turers, you are hereby authorized to act for this Industry in pre- senting its Code of Fair Competition. The resolution above referred to reads as follows : " It was regularly moved and seconded that the President and the Chairman of the Code Committee be appointed as a committee to present the Code to the National Recovery Administration with the authority to take any other such persons with them as they may so desire, and that further, this committee has authority to make such changes as may be found necessary in order to effect a Code with the National Recovery Administration." Very truly yours, James D. Eggers, Secretary. JDE/J American Institute of Bolt, Nut, and Rivet Manufacturers, Cleveland, Ohio, August 28, 1933. National Recovery Administration, Control Division, Washington, D.C. Sirs: This letter of transmittal is accompanied by twelve (12) copies of the Code, four (4) copies of the completed application form, and four (4) copies of the Articles of Association and Bylaws of the American Institute of Bolt, Nut, and Rivet Manufacturers, a vol- untary unincorporated association. The Institute has no Constitu- tion except as above stated. The conditions in the Bolt, Nut, and Rivet Industry have been gravely depressed in the past three (3) years. All the members of it, so far as we can ascertain, have been operating at a loss during this period, but since June of this year business conditions have improved in some degree, although at the present time orders for products are tending to diminish. (iii) IV During the whole period all the members of the Institute, without any exception so far as we are aware, have endeavored to keep labor employed to the greatest possible extent by staggering terms of employment, adopting all expediency possible to retain the respec- tive organizations, and to provide for the support of employees. Owing to the intense competition many improper methods have crept into the business which the enclosed Code attempts in a meas- ure to correct. The Code is therefore submitted for the consideration of the Administration. Very truly yours, Enclosures. American Institute of Bolt, and Rivet Manufacturers, By R. J. Whelan, By Chas. R. Ferguson. Nut, CODE OF FAIR COMPETITION OF THE BOLT, NUT, AND RIVET INDUSTRY Article I — Definitions Wherever used in this Code the terms hereinafter employed in this Article shall, unless the context shall otherwise clearly indicate, have the respective meanings as hereinafter in this Article set forth. Section 1. The term " the Industry " means and includes the business of manufacturing in the United States bolts, nuts, and/or rivets fabricated from ferrous metals. Sec. 2. The term " member of the Industry " means and includes any person, firm, association, or corporation operating a plant, plants, or equipment in the United States for the manufacture of bolts, nuts, and/or rivets, including any manufacturer of such prod- ucts, whether for its own use or for sale. Sec. 3. The term " member of the Code " means any member of the Industry who shall have become a member of the Code, as here- inafter in Article III provided. Sec. 4. The term " the Institute " means the American Institute of Bolt, Nut, and Rivet Manufacturers, a voluntary unincorporated association. Sec. 5. The term " Executive Committee " means the Executive Committee of the Institute as from time to time constituted. Sec. 6. The term " base price " of any product means the price for such product f.o.b. a basing point before any extras in respect of such product shall be added. Sec. 7. The term " gross or list price " means the price of such products, subject to trade discounts, f.o.b. a basing point before any extras in respect of such product shall be added. Article II — Purpose of Code Section 1. The Code is adopted pursuant to Title I of the Na- tional Industrial Recovery Act and submitted for the approval of the President under Section 3-a thereof. Sec. 2. The purpose of the Code is to effectuate the policy of Title I of the National Industrial Recovery Act insofar as it is applicable to the Industry. Article III — Membership in the Code Section 1. It is of the essence of the Code that all members of the Industry who 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. 8977—33 (1) 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 Executive Committee a letter substantially in the form set forth in Schedule A hereto annexed. Sec. 4. Any member of the Industry may participate in any endeavors of the Institute, in the preparation of any revisions of, or additions or supplements to, this Code, by accepting the proper pro rata share of the cost and responsibility of creating and admin- istering the Institute, either by becoming a member of the Institute or by paying to it an amount equal to the dues from time to time provided to be paid by a member in like situation of the Institute. Article IV — Hours of Labor, Rates of Pay, and Other Conditions of Employment Section 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 self -organization, or in other concerted activities for the pur- pose 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 organi- zation of his own choosing; and (3) That employers shall comply with the maximum hours of labor, minimum rates of pay, and other conditions of emplo} T ment approved or prescribed by the President. Sec. 2. On and after the effective date of this Code (meaning thereby ten days after the date on which this Code shall have been approved by the President, pursuant to the National Industrial Recovery Act), no member of the Code shall cause or permit any employee, except executives, those employed in supervisory capacities and in technical work and their respective staffs, salesmen, and those employed in emergency work, insofar as practicable and so long as employees qualified for the work shall be available in the respective localities where such work shall be required, and having due regard for the varying demands for the consuming and proc- essing industries for the product, to work at an average in excess of forty (40) hours per week in any six (6) months' period or to work for more than forty -eight (48) hours or more than six (6) days in any one week. Sec. 3. On and after the said effective date, the minimum wage that shall be paid by members of the Code to any employee engaged in producing the products of the industry and in labor operations directly incident thereto, shall be that shown in Schedule B attached hereto, unless the rate per hour for the same class of labor was on Julv 15, 1929, less than as shown in Schedule B, in which case the rate per hour paid shall be not less than the rate per hour paid on July 15, 1929, but in no event shall the rate per hour be less than twenty-five cents (25^) per hour, and provided also that learners may be paid not less than eighty (80) percent of the minimum rate paid determined in the manner above provided, but the number of learners receiving less than said minimum rate so determined shall not exceed five (5) percent of the total number of employees en- gaged in producing the said product and in labor operations directly incident thereto. Sec. 4. On and after the said effective date, the minimum wage that shall be paid by members of the Code to employees engaged in office work, except commission salesmen, shall be not less than four- teen dollars ($14.00) per week, provided that office boys or girls may be paid not less than eighty (80) percent of such minimum wage, but the number of said office boys or girls paid at the rate of less than fourteen dollars ($14.00) per week shall not exceed five (5) percent of the total number of employees covered by the provisions of this Section. Sec. 5. None of the members of the Code shall employ in or about its plants in the Industry any person under sixteen years of age. Article V — Administration of the Code Section 1. The administration of the Code shall be under the di- rection of the Executive Committee of the Institute. Sec. 2. 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 to or proper to enable it fully to administer the Code and to effectuate its purpose. The Executive Committee shall have, but not by way of limita- tion, the following additional powers and duties, to wit : (a) To enforce the provisions of the Code and through agents or otherwise to hear and adjust complaints thereunder. (b) To consider proposals for amendments and make recom- mendations thereon to the President. (c) To approve of recommendations for exceptions to the provi- sions of the Code. (d) To collect at such times and in such manner as in its discre- tion may be deemed advisable statistics of plant capacity, volume of production, volume of sales in units and dollars, shipments, orders received, unfilled orders, stocks on hand, inventories, both raw and finished, number of persons employed, wage rates, earnings of em- ployees engaged in processing operations, hours of work, and such other data or information as may be desired in order to determine whether the Industry is taking appropriate steps to effectuate in all respects the policy of the National Industrial Recovery Act. To delegate to the proper officers of the Institute the collection of such statistical and other data as may in its discretion be reasonably necessary ; provided, however, that such statistical and other data be compiled in composite form and in such manner as not to be preju- dicial to the interests of any individual member. (e) From time to time to appoint such committees as it shall deem necessary or proper .in order to effectuate the purpose of the Code and in its discretion to delegate to any such Committee gen- erally or in particular instances su h of the powers and duties of the Executive Committee under the Code as such Executive Com- mittee shall deem necessary or proper in order to effectuate such purpose. (/) From time to time to appoint and remove, and fix the com- pensation of, all employees, accountants, attorneys, and experts as such Executive Committee shall deem necessary or proper for the purpose of administering the Code. ((/) To call meetings of the members of the Code at any time on not less than three days' notice, stating the time and place of such meetings and the purposes thereof. Sec. 3. Any or all information furnished to the Executive Com- mittee by any member of the Code shall be subject to checking for the purpose of verification by an examination of the books and accounts and records of such member by any accountant or account- ants or other person or persons designated by the Executive Commit- tee and shall be so checked for such purpose, if the Executive Com- mittee 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 .-hall be shown to have been wilfully misrepresented, such cost shall be paid by the member of the Code who furnished such information. Sec. 4. (a) The expenses of administering the Code shall be borne by the members thereof. The Executive Committee from time to time may 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 Executive Committee shall specify. Such expenses assessed against each member of the Code shall bear the same relation- to the total thereof as the total value of shipments of produ ts in dollars made by such member bears to the shipment of products in dollars made by all the members. Failure of any mem- ber 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 (unless such period is extended by the Executive Committee) shall constitute a violation of the Code. (b) The Executive Committee from time to time shall submit to the members of the Code in meeting assembled for approval a detailed budget of proposed expenditures and no commitments or expenditures shall be made in excess of such approved budget. Si:c. 5. Failure of anj' member of the Code promptly to furnish to the Executive Committee information required by the Executive Committee and substantial^ in the form prescribed by it shall constitute a violation of the Code. Sec. 6. Survey of Equipment. — An engineering survey may be made of the entire industry under the direction of the Executive Committee with the view of ascertaining the existing production equipment of each member of the industry whether such member produces material for sale or for its own consumption or both. It is the consensus of opinion of the Industry that until such time as the demand for its products cannot be adequately met by the fullest practicable use of existing equipment, such capacities shall not be increased or new plants constructed. This provision, how- ever, shall not be construed to prevent the replacement of old or obsolete equipment, which replacements are hereby authorized, providing that such replacements do not increase present capacities. Any member of the Code as prerequisite to the making of such replacements of old or obsolete equipment shall file with the Execu- tive Committee a notice of its intention so to do, furnish complete data in respect thereof, and obtain the approval of the Executive Committee therefor. Sec. 7. The members of the Code recognize that questions of pub- lic interest are or may be involved in its administration. Accord- ingly, 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 (.onvenient to dis- cuss with the Executive Committee or any committees thereof any matters relating to the administration of the Code and to attend meetings of the said 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 Executive Committee shall be given to such repre- sentatives of the Administration. The records of the Executive Committee and the Institute relating in any way to the administra- tion of the Code shall be open to such representatives at all reason- able times. They shall be afforded complete access at all times to all records, statistical material, or other information furnished or readily available to the Executive Committee in connection with, or for the purpose of, the administration of the Code. The Execu- tive Committee, acting directly or through one or more committees appointed by it, shall give due consideration to all requests, sug- gestions, or recommendations made by such representatives of the Administration and render every possible assistance to such repre- sentatives 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 as- sured 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 VI Section 1. Basis of Quotations and Sales. — (a) Members of the Code shall establish a trade practice of issuing quotations and in- voices on the basis of percentage discounts from the standard gross or list prices on varying classes and sizes of bolts, nuts and rivets, to be known as " Manufacturers' Standard Bolt, Nut and Rivet liists ", and hereinafter referred to as the Gross Lists, which lists 8977—33 2 shall be prepared after an engineering study, and a scientific analysis of costs. So-called " net ** prices shall not be used in quoting, selling, or invoicing any items covered by gross lists. (b) What is commonly known in the trade as heavy rivet-, viz. rivets \'. 2 " diameter and larger, shall be sold at a base price per pound, subject to published standard extras, which extras shall be prepared after an engineering study and a scientific analysis of costs. (c) What is commonly known in the trade as large track bolt.-, viz. track bolts •\\" diameter and larger, heat treated, shall be sold at a base price per pound subject to published standard extras. which extras shall be prepared after an engineering study and a scientific analysis of costs. (d) The Executive Committee may revise the Gross Lists and Extra Lists from time to time as changes in manufacturing and other conditions may warrant, as disclosed by further engineering study and scientific analysis of costs, and sales by members shall thereafter be based on the latest revised lists in the manner in this Article hereinabove specified; provided, however, that any such revisions shall have had the prior approval of a majority of v< of the members of the Code affected by such revisions. (e) None of the foregoing shall apply to the quotation or sale of any miscellaneous items (other than listed bolts, nuts, and rivets), such as. for example, pipe bands, silo rods, foundation rods, both straight and upset, dock rods, and all bolts, nuts, and rivets larger than listed sizes. The Executive Committee shall divide these items into proper classifications, and members shall file their costs with the designated officer of the Institute, on each classification. A statement of these costs shall be furnished each member filing same, and all sales shall be based on cost. Any accessories, speci- fied in conjunction with the above items, shall be sold at not les> than the manufacturing or purchasing cost. Sec. 2. Special Processing, Packing, Etc. — On items for which schedules covering extra charges for special processing and packing are included in the Gross Lists, no member shall in any case waive, in all or in part, the charging of such extras; nor shall any mem- ber sell, or offer for sale, any product other than items covered in the Gross Lists, and known as " specials." at a price less than would be obtained b} r applying his current maximum discount to the near- est size and diameter as shown on the Gross Lists; nor shall any member sell, or offer for sale, any " special " item or product at a price which fails to take into consideration the added cost over and above the cost of the nearest size and diameter shown on the Gross Lists. Sec. '■'>. Basing Points. — Members of the Code shall establish the trade practice of basing quotations and sales of bolts, nuts, and rivets at various points which constitute centers of steel production, which various points shall be Birmingham, Chicago, Cleveland, and Pitts- burgh, regardless of the actual point of manufacture or shipment. The price charged to the buyer shall be the members* current price f.o.l). the nearest basing point to destination, plus the regular rail- road tariff rate of freight, either carload or less-than-carioad de- pending on the shipment irrespective of actual means of transporta- tion, except on shipments to Pacific Coast points where the rail and water rate from Birmingham to point of destination shall be added. This shall not apply to sales or shipments made to common carriers which come under the supervision of the Interstate Commerce Com- mission, of material for their own consumption. On sales and ship- ments made to common carriers as above described, the amount of freight to be added from basing points shall be determined by the Executive Committee, and shall be calculated on what is commonly known as line-haul costs. No member shall equalize freight charges based on what is com- monly known in the trade and under the Interstate Commerce Act as Fabrication in Transit rates. Sec. 4. Filing of Price and Discount Schedules. — Each member of the Code shall within ten (10) days after the effective date of the Code file with the officer designated by the Executive Committee a statement of his maximum discounts and minimum base prices on each class of standard product, and from and after the expiration of such ten (10) days, such member shall at all times maintain on file with the officer such a statement and shall not make any change in his prices except as herein provided. Each such statement shall state the date upon which it shall become effective which shall not be less than ten (10) days after the date of filing, provided, how- ever, that the first statement filed by any member of the Code shall take effect on the date of filing thereof. None of the maximum discounts or minimum base prices shown in any statement filed by any member of the Code as herein provided shall be changed except by the filing of such member with the officer of a new statement which shall become effective on the effective date therein specified, which shall not be lets than ten (10) days after the date on which such new statement of discounts and base prices shall have been so filed. Copies of the originals as well as the revised statements with notice of the effective date specified shall immediately be sent to all known manufacturers of such product who thereupon may file, if they so desire, revisions of their statements which shall become effective upon the date when the statement first filed shall go into effect. Any member quoting or selling below his filed price during the time that such price is effective shall be considered as having violated the Code. Obsolete, damaged, rusty, shopworn, or excess material may be dis- posed of in a special manner, prior approval so to do having first been secured from the Executive Committee. Sec. 5. (a) Uniform, Cost Accounting . — Immediately upon the adoption of this Code, the Executive Committee shall take steps to provide a uniform method of cost accounting for the Industry, through such channels as may be designated by the said Committee. (b) Prict s Below Cost. — No member of the Code shall sell or offer its product for sale, or file with the designated officer of the Insti- tute, any price or prices which fail to equal its own cost of producing each individual item which shall be subject to review by Executive Committee. But nothing herein contained shall be deemed to re- quire any such member to sell his product above the published or established selling price of any other member. Pending the adop- 8 tion of a uniform cost-accounting system, cosl is defined as meaning the sum of all items ordinarily included in computation of costs, including raw material, wages, salaries, executive and selling expense, depreciation and general overhead, reserves, taxes, and insurance. (c) Executive C&nwrittet to Investigate Costs. — Should any mem- ber of the Cede file a selling price with the designated officer of the Institute, based on a cost which appears to be at considerable variance from the costs of other members, the Executive Committee may institute an investigation and determine whether or not such costs have been properly computed. If such costs are found to be in error, such member shall immediately file revised selling prices. A notice of all decisions of the Executive Committee under this Sec- tion 5. together with the reasons therefor, shall be filed with the President. Sec. 6. Broken Container Qucmtities. — No member of the Code shall deviate from the recognized differential for shipment of broken container quantities, as may be provided in the Gross Lists, regard- less of the total size of the order or shipment. Sec. 7. Contracts. — Members of the Code shall not contract for the sale of bolts, nuts, and rivets for longer than calendar quarterly periods or at a price which is lower than that so filed by such mem- ber for the first month of said period. All contracts shall be for specified maximum quantities, and without option of extension or renewal on the part of either buyer or seller. All shipments on con- tracts shall be made within fifteen days after expiration date, or as soon thereafter as seller can manufacture and ship the same. No quarterly contract shall be made more than thirty (30) days prior to the beginning of the calendar quarter and shall be at the price effective at the time of the making of the contract. Sec. 8. Terms of Payment. — In the case of products shipped from plants located on or east of the Mississippi and Missouri Rivers to Pacific Coast Ports and which shall be invoiced from such plants — y 2 of 1% shall be deducted if the invoice of such products shall be paid within 25 days from the date of such invoice. In all other cases — y 2 of 1% shall be deducted if the invoice of such products shall be paid within 10 days from the date of such invoice; provided, howevt /■. in the latter case, that any member of the Code may allow such discount of y 2 of 1% on the basis of settlements two times in each month, as follows : (1) On invoices for products dated from the 1st to the 15th, inclusive, in any month, such discount may be allowed on payment of such invoices on or before the 25th of such month ; (2) On invoices for products dated from the 16th to the 31st, inclusive, in any month, such discount may be allowed on payment of such invoices on or before the 10th of the following month. Any discount allowed in accordance with the provisions of this Schedule shall apply only to the invoiced value of the products specified therein and not to any part of the transportation charges on such products. In the case of products shipped from plants located on or east of the Mississippi and Missouri Rivers to Pacific Coast Ports and which shall be invoiced from such plants — the free time shall be 45 days ; in all other cases — 30 days. Sec. 9. The maximum periods of free credit which may be allowed by any member of the Code shall be the periods herein specified, unless and until such periods shall be changed by the Executive Committee. Except as aforesaid, all invoices for products sold by any member of the Code after the effective date of the Code shall bear interest at 6% from and after the expiration of the period of free credit. Nothing in the Code contained shall prevent any mem- ber 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 herein above specified; 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 at 6% on the amount in respect of which credit shall be so allowed or the payment of which shall have been so delaj^ed. The term " period of free credit " means the period of time be- tween 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 shail not have been paid prior to the expiration of such period. Sec. 10. Nothing in the Code contained, however, shall be so fonstrued as to prevent the performance by any member of the Code of a valid, firm contract existing and to which it is a party at the effective date of the Code for a definite quantity of any prod- uct or for all or a substantial part of the requirements of the pur- chaser thereof (a) at a fixed price, or (b) at a price that can be definitely determined in accordance with the provisions of such con- tract, or (c) at the market price for such product at the date when a definite quantity thereof shall be specified under such contract. If any member of the Code shall at the effective date thereof be a party to any contract for the sale of any product by such member which, by its terms, is to continue after December 31, 1933, and by its terms the price to be paid for such product by the other party to such contract is related to the market price thereof at the date when a definite quantity thereof may be specified under such con- tract and may be less than such market price, then such member shall within thirty days after the effective date of the Code file a copy of such contract with the Exectuive Committee in order that the said Committee may consider it and take such action in respect thereof consistent with the rights and obligations of the parties to such contract as such Committee shall deem proper. Sec. 11. Guaranteed Prices. — Members shall not sell or offer for sale, any product of the Industry, under any form of guarantee against decline in price. Sec. 12. Solicitation of Business — Recognition of Proper Function! of Jobbers. — The Industry, in accordance with the above plan of oper- ation, declares its minimum filed prices to be applicable to wholesale jobbing and wholesale consuming trade, and the Executive Commit- tee may prescribe such rules and regulations as it shall deem proper by which the question of whether or not any purchaser or prospective purchaser of any product for resale is a jobber or wholesale con- sumer shall be determined. 10 Brokers, commission agents, and dealers in used or distress stock of materials shall not in any case be considered a jobber or a whole- sale consumer. All common carriers coming under the supervision of the Inter state Commerce Commission shall be considered wholesale con- sumers. Src. i;>. Nothing herein contained shall be deemed to prevent mem- bers of the Code from selling materials to other members of tin- Code for resale at prices approved by the Executive Committee. Sec. 14. Nothing in the Code contained shall be deemed to apply to or affect the sale of any product for direct shipment in export trade by any member of the Code within the meaning of the term M export trade " as it is used in the Export Trade Act or, unless, and to the extent that the Executive Committee shall otherwise deter- mine, the sale of any product by airy such member for direct ship- ment to the Philippines. Hawaii, or Puerto Rico, or other insular possessions of the United States of America. Article VII — Unfair Practices Section 1. For all purposes of the Code, the acts hereinafter de- scribed shall constitute unfair practices. (1) The payment to "manufacturers' agents", as the same are known in the industry, of commissions in excess of five percent in- cluding office, traveling, and all other expenses. The selling of products to a manufacturer's agent is prohibited. (2) The continuance by a member of the Code in its or his em- ployment of any manufacturer's agent who shall split or divide his commission with the buyer or the agent of the buyer. (3) The appointment by a member of the Code of a jobber or dealer of any character as his agent on any basis. (4) Shipments of products by any member of the Code on a consigned basis, which is hereby defined to be a shipment by the member of products, to be paid for by the consignee as sold, or shipments on any other basis than that provided in this Code. (5) Any member inducing or attempting to induce the sale of the products of this Industry by means of an offer to sell any other article which such member might manufacture or resell at less than regular market prices for such product. (G) Xo member of the Code shall permit the return by any pur- chaser of any product covered herein delivered in compliance with any contract nor shall any such member purchase or repurchase such products after the delivery thereof by whomsoever delivered to such purchaser. (7) Inducing or attempting to induce by any means any party to a contract with a member of the Code to violate such contract. (8) The solicitation or acceptance of orders for pooled shipments of any character, whether in carload lots or less, regardless of the method of invoicing proposed, when it is known or ascertainable by the member that the material so ordered is for more than one consignee. (9) Sales by any member under any form of group purchasing. (10)The deviation from the established standards of size and quality, unless the buyer is fully informed of such deviation. 11 (11) The sale of products not plainly and correctly described and not in full compliance with trade requirements and definitions. (12) The failure to specify in every quotation for sale of the prices and terms and all the conditions surrounding such quotations for sale. (13) Cancelling in whole or in part, or permitting the cancel- lation in whole or in part, of any contract of sale for any product except for a fair consideration, or paying or allowing to any pur- chaser in connection with the sale of any product any bonus, rebate, commission, credit, discount, adjustment, or similar concession or subsidy other than is permitted by the Code and specified in the contract of sale or included in the price paid or bid. (14) Stating in the invoice of any product as the date thereof a date other than the date of the shipment of such product or the inclusion in any invoice of any product shipped on any other date than the date of such invoice. (15) Making or promising to any purchaser or prospective pur- chaser of any product, or to any officer, employee, agent, or repre- sentative of any such purchaser or prospective purchaser, any bribe, gratuity, gift, or other payment or remuneration, directly or indirectly. (16) Procuring, otherwise than with the consent of any member of the Code, any information concerning the business of such mem- ber which is property regarded by it as a trade secret or confidential within its organization, other than information relating to a viola- tion of any provision of the Code. (17) Imitating or simulating any design, style, mark, or brand used by any other member of the Code. (18) Disseminating, publishing, or circulating any false or mis- leading information relative to aiw 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 em- ployees of any member thereof. (19) Aiding or abetting any person, firm, association, or corpora- tion in any unfair practice. (20) The inclusion of any product with other shipments, thereby obtaining lower cost of transportation than is herein provided. (21) Any violation of any other provision of the Code, whether or not therein expressed to be such, or using, or employing any practice not hereinabove described, which the Executive 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 there- fore an unfair practice, and of which determination by such Execu- tive Committee notice shall have given to the members of the Code and to the President of the United States. Such unfair practices and all other practices which shall be declared to be unfair by the Executive Committee, as provided in subdivision (21) herein or by any amendment to the Code adopted. as hereinafter in Article IX provided, and at the time in effect, shall be deemed to be unfair methods of competition in commerce within the meaning of the statutes in such cases made and provided. and the using or employing of any of them shall be deemed to be a 12 violation of the Code and any member of the Industry which shall directly or indirectly through any officer, employee, agent or repre- sentative knowingly use or employ any of such unfair practices shall be guilty of a violation of the Code. Article VIII — General, Provisions Section 1. 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 saia Act. Sec. 2. Any notice, demand, or request required or permitted to be given to or made upon any member of the Code shall be suffi- ciently given if mailed postage prepaid, addressed to such member at the address of such member on file with the Executive Committee. A waiver in writing, signed by any member of the Code, of any such notice, demand, or request, and delivered to the Executive Com- mittee shall be deemed to be the equivalent of a notice, demand, or request duty 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. 3. Nothing herein contained shall be deemed to constitute the members of the Code partners for any purpose, and no officer, com- mittee, or employee appointed under the Code shall be liable for any act or omission to act under the Code except for his malfeasance or nonfeasance. Sec. 4. At a meeting of the members of the Code, each member thereof shall have as many votes as shall equal the quotient obtained by dividing by one hundred thousand the aggregate amount in dol- lars of the invoice value of the products delivered by such member for consumption within the United States during the preceding cal- endar year. Fractions in such quotient shall be disregarded; pro- vided, however, that each member of the Code shall have at least one vote. Sec. 5. As soon as members of the Industry which would, if then members of the Code, have the right to cast at least 66%% of all the votes that might be cast at a meeting of the members of the Code, if all members of the Industry were then members of the Code and present at such meeting, shall sign and deliver to the Executive Com- mittee letters substantially in the form set forth in Schedule "A" annexed hereto, the Executive Committee shall submit the Code to the President for approval pursuant to the provisions of the National Industrial Recovery Act, and upon the approval of the Code by the President pursuant to the provisions thereof, it shall constitute a binding contract by and among the members of the Code and the provisions thereof, shall be the standards of fair competition for the Industry, subject to the amendment or termination thereof, as in Article IX herein provided. Sec. 6. To the extent required or permitted by or under the provi- sions of Title I of the National Industrial Recovery Act, the provi- sions of the Code shall apply to and be binding upon every member of the Industry, whether or not such member shall be a member of 13 the Code. To the extent that it shall be necessary or proper in order to effectuate the purpose of the Code, the term " member of the Code " wherever used in the Code shall be deemed to mean a member of the Industry, but no member of the Industry which shall not also be a member of the Code in good standing shall be entitled to vote at any meeting of members of the Code or to any other right, power, or privilege provided in the Code for the members thereof. Sec. 7. The Executive Committee shall have power from time to time to interpret and construe the provisions of the Code, including, but without any limitation upon the foregoing, the power to deter- mine what are products within the meaning of that term as it is used in the Code. Any interpretation or construction placed upon the Code by the Executive Committee shall be final and conclusive upon all members of the Code. However, no provisions of this Code shall be interpreted or applied in such manner as to (a) promote monopolies; (&)■ permit or encourage unfair competition; (c) elimi- nate or oppress small enterprises; (d) discriminate against small enterprises; or (e) impose inequitable restrictions on admission to membership therein ; it being the intent hereof that such membership shall be truly representative of the industry. Article IX Section 1. This Code may be amended at any time by an amend- ment proposed by the Executive Committee by vote of the majority of the members thereof and submitted to a meeting of the mem- bers which shall be called for such purpose upon notice given as in the subdivision (g) of Section 2 of Article V herein provided. 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 sub- mitted by the Executive Committee to the President for approval, provided approval by him shall then be required by law, and upon approval of such amendment the same shall take effect as a part of the Code. Sec. 2. This Code shall continue in effect for a period of ninety days from its effective date and thereafter until terminated. It may be terminated at any time after the expiration of such period by the same action by members of the Code as is above provided for the amendment thereof, and, 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. It shall also be subject to the reserved power of the President to cancel or modify his approval thereof, as is provided in Section 1 of Article VIII hereof. Sec. 3. Nothing in this Code contained shall be deemed to con- stitute a waiver of any constitutional right of any member. Schedule "A" | Form of Letter of Assent to the Code] August , 1933. The Executive Committee of the American Institute of Bolt, Nut & Rivet Manufacturers, G-uardkm Bldg., Cleveland, Ohio. Dear Sirs : The undersigned desiring to become a member of the Code of Fair Competition of tlie American Institute of Bolt, Nut & Rivet Manufacturers, a copy of winch is annexed hereto, hereby assents to all the provisions of said Code effective as of the date on which the Code shall have been approved by the President as therein provided, or, as of the date on which this letter shall have been delivered, if delivery thereof shall have made subsequent to the date on which the Code shall have been approved by the President, as aforesaid, and by the signing and delivery of this letter becomes a member Of the Code and hereby agrees with every person, Arm, association, and corpora- tion who shall then be or thereafter become a member of the Code, that the Code shall constitute a valid and binding contract between the undersigned and all such other members. The address of the undersigned until it shall file with the Secretary of said Institute written notice of the change of such address shall be set forth at the foot of this letter. Very truly yours, Address : (14) Schedule B MINIMUM RATES OF PAY FOR COMMON LABOR Cents per hour 1. Eastern District 35 2. Johnstown District 37 3. Pittsburgh District 40 4. Youngstown "Valley District 40 5. North Ohio River District- 40 6. Canton, Massillon, Mansfield, Columbus, Dover District 37 7. Cleveland District 40 8. Buffalo District 38 9. Detroit-Toledo District 40 10. South Ohio River District 37 11. Indiana-Illinois-St. Louis District • 37 12. Chicago District 40 33. Southern District 25 14. Birmingham District -7 15. Kansas City District 35 16. Duluth-Minneapolis District 37 17. Colorado District 40 18. Utah District 39 19. Seattle District 38 20. San Francisco District 37 '21. Los Angeles District 35 DESCRIPTION OF WAGE DISTRICTS 1. Eastern District comprises that part of the United States which is north of the State of Virginia and east of a line drawn north and south through the most easterly point of Altoona, Pennsylvania; that part of the State of Maryland which is west of such line; and the Counties of Monongalia, Marion, and Harrison in the State of West Virginia. 2. Johnstown District comprises Cambria County and the City of Altoona in the State of Pennsylvania. 3. Pittsburgh District comprises the Counties of Westmoreland, Fayette, Greene, Washington, Allegheny, Beaver, Butler, Arm- strong, and Jetferson and that part of the County of Clearfield which is west of a line drawn north and south through the most easterly point of Altoona, all in the State of Pennsylvania. 4. Youngstown Valley District comprises the Counties of Law- rence, Mercer, and Venango in the State of Pennsylvania and the Counties of Trumbull, Mahoning, and Columbiana in the State of Ohio. 5. North Ohio River District comprises the cities along the Ohio River north of the City of Parkersburg, West Virginia, and the (15) IVERSITY OF FLORIDA 16 «l»™j| 1262 08582 9835 Counties of Belmont and Jefferson in the State of Ohio and the Counties of Marshall. Ohio. Brook, and Hancock in the Slate of West Virginia.