Supplementary code of fair competition for the waterpower equipment industry (a division of the machinery and allied pro...


Material Information

Supplementary code of fair competition for the waterpower equipment industry (a division of the machinery and allied products industry) as approved on June 7, 1934
Portion of title:
Waterpower equipment industry
Physical Description:
14 p. : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Water-power -- Equipment and supplies -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Approved Code No. 347--Supplement No. 13."
General Note:
"Registry No. 1312-06."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004936638
oclc - 647965102
System ID:

Full Text


I -'
For sale by the Superintendent of Docluments, Washington, D.C. - Price 5 cents

Approved Code No. 347--Supplement No. 13

Registry No. 1812---06



JUNE 7, 1934






(A Division of the Machinery and Allied Products Industry)

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.


Atlanta, Ga.: 504 Post Office Building~.
Birmuingham, Ala.: 257 Federal Building.
Boston, MUass.: 1801 Custombouse.
Buffalo, N.Y'.: Chamber of Commerce Building.
Charleston, 8.O.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706G, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, M~ich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jac~ksonville, Fla.: Chamber of Commerce Building.
Kansas City, nIlo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Mlemprhis, Tenn.: 229 Federal Building.
Illinneapolis, Miinn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Custornhouse.
New York, N.Y.: 7~34 Custombouse.
Norfolk-, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 2'15 New Post Office Building.
St. Louis, Mlo.: 506 Olive Street.
San Francisco, Calif.: 310 Custombouse.
Seattle, Wash.: 809 Federal Offic~e Building.

Approved Code No. 347--Supplement No. 13



As Approved on June 7, 1934




An application having been duly made pursuant to and in full
compliance w~ith thle provisions of Tiitle I of the National Industrial
Recovery~ Act., approved June 16, 1933, for approval of a Supple-
mental iC~ode of Fair Comp~et.ition for the Waterpower ]Equipment
Subdivision of Malchinery and Allied Products Industry, and hear-
ings having b~een duly held thlereon. and the annexed report on. said
Supplemental Code containing findings with respect thereto, having
been mande and direclted to the President:
NOW~, THEREFORE, onl behalf of the President of the United
States, I, Hugh S. Johnson, Adlministlrator for' Industrial Recovery,
pursuant to a7uthority rested in mne byEeuieO eroftePs-
den, icluingExeutie OderNo.6543-A, dated D~ecember 30
1933, and othlerwrise; do hereby incorporate by reference said annexed
report andi do find that said Supplemental C~ode complies in all re-
spect~s withl the pertinent provisions and will promote the policy
and purposes of said Title of said Act; and do hereby order that said
Supplemental Code of Fair Clompetition be and it is hereby approved
subject to thle following conditions: (1) that the provisions of
AIrticle V'II, Section (a), inlsofar as they prescribe a waiting period
between the filing with the Cod~e Authority (or such agency as may
be, designatedi in the Sup~plem~ental Code) and the effective date of
pr'ice lists, as or~iginally filed and/or revised price lists or revised
terms and condcitiojns of sale, be and they hereby are stayed pending
my furthePr order. and (2) that the provisions of Article VIII, Sec-
tions 6 to 9 inclusive, be and they hereby are stayed for a period of
fifteen (15) days; then to become effective unless I, by my further
order, otherw~ise direct; within which time cause may be shown, if
a7ny there be, why~ the above provisions should not become effective;
65902"----057-51-34 (11

and that the Temporary Code Authority send notice of the stay
of these provisions and of the opportunity to show cause why
they' should not become effective to all known employers of the
Adr~n~initratorr for Indulst~rial Recovery.
Approval recommended :
Division Aldmi~nistrator.
WaBsmLNaron, D.C.,
June 7, 1934.


The Wh'ite Hourse.
SmR: Thlis is a report on t~he Supplemerntal Code of Fair Competi-
tion for the WVaterpower Equipment Subdivision of the lunchinlery
and Allied Products Inldustry, a Public Hearing on wcPhich was
held in Washingaton, D.C., onl December 8, 1933, and reconvened
on December 21, 1933. The Hearing was conducted in full accord-
ance with thle provisions of Title I o'f the National Industrial Recov-
ery Act.

The Waterpower Equipment Subdivision, being truly r~epresen-
tative of the manufacturers of the products defined in Article II
of the Supplemental Codet, has elected to formulate and submit a
Supplemental Code of Fair Competition as provided in the second
paragraph of A4rtile I of the Code of Fair Comnpetition for the
Machinery and Allied Products I[ndustry, approved by you on thne
seventeenth da~y of IMarch, 1934l.
The Waterpow\~er Equipme~nt Subdivision means the business of
manufacturing for sale, selling, erecting and/or designing equipment
or machinery as enumerated in detail in. the Supplemental Code
attached hereto.

This Subdivision has been severely affected by the recent depres-
sion. TIhis is evidenced by the steady decline inl a~nn-ual sales since
1929. In 1933 sales were approximately 60%J below thne 1929 level,
declining from $5,000,000 in 1929 to $2,000,000 in 1933.
Estimates of approximate employment, excluding office employees,
indicates that the employment declined from 1,600 persons in 1929
to 509 persons i~n the second qurllter~ of 1933, anld that this level had
increased to 582 persons as of October, 1933.
1Unzn-hours show a trend similar to employment. In 192'9 man-
hours amounted to approximately '78,240. Therea after they declined
to a mninimuml of 14,541 man-hours in th~e first quarter of 1933 or
81%r. After this period man-hours increased again. Estimated
man-hours, as of October, 1933, were approximately 19,788 based on
341 hours wTork~ed, consequently the 40-hnour wPeek provided in. the Code
will probably cause little further employment here.
Thle wage provisions for the Subdivision, which, is operating under
the Code for the MCac~hinery and Allied Piroducts Industry, prO~~a ovid
that employees engaged implant operations shall be paida fl
lowfs: (1) in cities of more than 50,000 population and their imm~e-
diate vicinity, 40 cents per hour; (2) in cities of more than 10,000
but not more than 50,000 population and their immediate vicinity,

which cities are not in the immediate vicinity of a city of more
than 50,000 population, 38 cents per hour; (3) in cities of 10,000
population or less and their immediate vicinity, which cities are not
in the immediate vicinityv of a city of more than 10,000 population,
36 cents per hour, except that employees engaged in plant operations
in all localities in the states of Virginia, North Carolina, South Ca~r-
olina, Georgia, Florida, Tennessee, Alabama, Mississippi, Arkansas,
Louisiana, Texas, and Oklahoma, shall be paid not less than 32 cents
per hour.
WChen females do substantially the same work as males or replace
males, they shall receive the same pay. However, no female em-
ployee shall be paid less than 8i1,/2%o of the proper rate for the
locality inn which employed.
Office boys and girls and apprentices shall be paid not less than
80%r of the minimum wage.
Employees other than those engaged in plant operations shall
receive not less than $15.00 per week.

Estimlated number of footory toorkers receivring less than1 designated houcrlyl

Distribution of factory
workers receiving less
than the minimum ,re-
Proposed minimum hourly rates grls flcto
Approximate Approximate
percent number

40 cents (ot her U.S.L..............- -~.-- ........ ...... --------.... ......... 25. 5 138
38 cents (other U .S.).~-~.--...... --....... ...... ..... ...... ..... ...... .... 21. 9 110
86 cents (other U1.S.)--.-.~-.... .. .. ....... ... .. .. ... .. .. ... ...... 18. 2 00
32 cents (South)..~.................... ... .. .. .. .. .. .. .. .. 14l. O 76

Based on the distribution as of June 15, 1933, and on t~he specified
percentages of the number of factory workers receiving less than the
designated rates shown in the above table, the adoption of the
proposed minimum rates will probably cause an increase in factory
payrolls. The estimated increase as of June 15, 1933, regardless of
location of t~he workers, will probably, under the most favorable
conditions, not exceed 5%o assuming only upward adjustment in the
brackets below the 40-cent minimum and no change in man-hour
req uir~ements.
The Code provides that no person under 16 years of age shall be
employed in this Subdivision.


Article I states the purpose of the Supplemental Code.
Article II accurately defines specific terms applicable to the Sub-
division as used in this Supplemental Code.
Article III provides for the adoption of the employment provi-
sions of the National Industrial Recovery Code of the 1Wachinery
and Allied Products Industry, as approved by you, and as from time
to time amended.

Article IV provides for the adoption of Articles II, VTI, VIIIZ, and
IX of the National Industrial Recovery Code of the Manchinery and
Allied Product~s Inldustr~y, in accordance with t~he conditions of this
Article governing their adoption.
Article V' providc~es for the establishment o~f a Code Authority and
defines its powers and duties.
Article VI provides for an accounting system and methods of cost
finding and /or estimating.
Article VII provides for methods of setting up, revising and
filing price lists and discount sheets and terms oq sale. and payment.
Article VIII sets forth trade practices for the Subdivision.
Article IXs defines and covers sale for export.
Article X. This Supplemiental Code and all the provisions thereof
are expressly made subject to thle right of the President, in, acc~ord-
ance with 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 said Act. Provision is also' made that modifications
may be submitted by the Code Authority to the Administrator for
Article XI provides means for w~ithdrawfal of this Subdivision
from the Basic Code and its continuance as an autonomous Code.
Article XII. No provision of this Supplemental Code shall be
so appliedl as to permit monopolies, or monopolistic practices, or
to eliminate, oppress, or disenrrunate agaainst small enterprises.
Article XIII states the effective date of this Supplemental Code.

The Assist~ant Deputy Administrator in his final report to me
on said Supplemental Code having found as herein set forth and on
the basis of all the proceedings in, this matter:
I find that:
(a) Said Supplemental Code is well designed to promote the
policies an~d purposes of Title I of thre National Industrial Recovery
Act, including removal of obtstruct~ions to the free flow of interstate
and foreign commerce which tend to diminish the amount thereof
and will provide for the general welfare by promoting the orga~ni-
zation of industry for the pur~pose of cooperative nation among
the trade groups, by inducingi and maintaining united action of
labor and management under adequate governmental sanctions andl
supervision, by eliminating unfair competitive practices, by pro-
moting the fullest. possible utilization of the present productive
capaci~ty of indus~itries, by avonidingr undue restriction of production
(except as may be temporarily requireded, by increasing the con-
sumption of industrial and agricultural products through increas-
ing pulrchnaing power, by redu~r~cin and relieving unemployment,
byr impnrovingr standards of labor, and byT otherwise rehabilitation
(b) Said Subdivision normally emlploys not more thanl 50,000
employees; and is not classified by mue as a major industry.
(c) The LSupplemental Code as approved complies in all respects
with the pertinent provisions of said TLitle of said Act, including
without limitation Subsection (a) of Section 3, Subsection (a) o

Section 7, and Subsection (b) of Section 10 thereof ; and that the
applicant association is an industrial association truly represented
tive of the aforesaid Subdivision; and that said association imposes
no inequitable restrictions on admission to membership therein.
(d) The Supplemental Code is not designed to and will not
permit monopolies or monopolistic. practices.
(e) The Supplemental Code is not designed to and will not
eliminate or oppress small enterprises and will not operate to dis-
crimninate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of
said Supplemental Code.
For these reasons, therefore, I have approved this Supplemental
Code, provided that certain provisions relating to price publication
and trade practices are stayed.
Hlanr S. JoHNson,
A administrator.
JUNE 7, 1934.




To effectuate the policy of Title I of the Nationdl Industrial Re-
covery Act, the following provisions are established as a Sup~ple-
mental National Industry Recovery Code. for the W1aterpower
Equipment Subdivision of the MIachinery and Allied Products In-
dustry, and together writh the National Industr~ial Recovery Code of
Machinery and Allied -Products Industry, shall bet thie standard of
fair competition for this Subdivision, and shall be bindinng on. every
employer therein.

"'Appl~icant means thie WTaterpower Equipmlent Association, a
trade organization, which organization is truly representative of
this Subdivision, all members of which ar~e engaged in the bus~i-
ness of manufacturing for sale, selling, erecting and/or designing
the products of the Waterpower Equipmecnt Subdivisioni o-f the
Machinery and Allied Products Industry.
"L Intdzusry ") means t~he Manchinery andl Allied Prodlucts Indulstry,
as defined in its National Industrial R~ecovery Codle as. approved
by the President, and as such definition mayn fr~omi time to time be
"' S~ubdivisiYon ") means t~he Waterpower Equipment Subdivision of
t~he M\achineryl and Allied~ Pr~oducts Indlustr~y as defined andl set
forth in paragraph (36), Article II of the Nationial Industrial Re-
coveryr Code of the M~achinery andl Allied PI~roucts Industry as
"(36) Waterpower equipment. subdivision means the business of
manufacturing for sale, selling, erecting and or designing equipment
or machinery as enumerated belowF:
"( iGroulp 1) Hydlraulic turbines, wrater w~heels, impulse wheels, ro\-
ernor~s, governor pumping systems including pressure tanks and~
dump tanks, flume manholes, relief valves, energy absorbers, free
discharge valves, drain valves, special and automatic valves; shio
cast iron or cast steel or steel plate or structuranl steel (riveted or
welded) spiral casings, pressure casings, speed ring~s, turb~ine wicket
gates, head covers, curbe plates, throat rings, bearings, bearing hous-
ings, pit linersY, draft tubes and liners, short steel penstocks and in-
t~ake pipes not exceeding thirty-five (35) feet in length; all of the
above for wanter p~ower plants.
"'(Group 2) Turbine shut-off valves, bypass vanlves, butterfly valves
large and special gate valves, nleedlle valves, cylinder valves, conical
65902" --657-51---34-2 (

valves and spherical valves for water power plants. This Group 2
shall include only .such valves and fittings, including parts therefor
or for their servicing, as are made by an employer in this Subdivi-
sion as a part of the products thereof for water power plants only,
or as a separate assembly peculiar to such products.
L'(Grou1p 3) H-ead gates, crest gates, sluice gates (except such sluice
gates of cast metal construction, in no event of more than ten (10)
feet dia~meter opening, as are normally produced and sold by members
of the V'alve and F~ittings lIfanufacturinga Industry), bypass gates,
trash racks, rack brakes, lock grates, bear trap gates and modifications
thereof, roller gates, roller sector gates, drum gates, vertical lift
gates, vertical lift sector gates, t~aintor gates, t~aintor gate valves,
cylindrical va~lves, filler gates, automatic. gates, flashboards manually
or anrt4matically operated, of cast and/'or fabricated steel plate con-
struction together w~ith hoists, operating machinery and automatic
control equipment therefore. (Structural steel plates, shapes and
bars included in the products of this Group 3 may be sold, fabricated
and erected under th~e code of the Structural Steel and Iron Fabri-
cating Industry, or the code of the Steel Plate Fabricating Industry,
by, eployersPP in either of sucrh industries who are not engaged in th~e
production of other products in this Group 3.)
"And other mechanical, plate and structural equipment including
accessories and parts thereof applicable to groups 1 and 2 for water
power plants and applicable to group 3 for water power plants,
navigration damns, impounding damns, irrigation works, flood control
wTorks, wa~ter supnlyr works includng3n accessories, spare parts, repairs,
replacement parts and parts thereof for all other water power and
control purposes excluding Gantry crane hoists."
C'ode? means the National Industrial Recovery Code of the
Machinery and Allied Products Industry as approved by the Presi-
dent., Alarch 17,? 1934, and as from time to time amended.
Persol!n eans a natural person, a partnership, a corporation,
an association, a trust, a trustee, a trLIStee in b~ankiruptcy, a receiver
or other entity.
"Emplo~yer "' means any ~prson engagedl in this Subdivision either
on his own behalf or as an emnployer of labor.
"i The A-ct means Title I of the National Industrial Recovery
The Preidc~ent means the President of the United States.
The Aidm~ini~sftator means the Administrator for Industrial
'* Basic CodJe Autho~ity means the Code Authority for the Ma-
chinery and Alliedl Products Industry as constituted by the Code.
Code Author~ity means the Code Authority constituted for this
Subdivision as provided by the Code and by thi's Supplemnental Code.
Griou' C'ode Author~ity means the Code Authority for any group
or product classification within this Subdivision.
"Publish "' means to mnake available to all interested parties.


The following Articles of the Code, viz: Article III, "L Working
Hours "; ArFtcle IVT, "r Wages "; an~1d Article V, General Labor Pro-

vison reherbymade a part of this Supplemental Code, with
the same effect as ifteweeritnitthsSplmnlCo.


The following Articles of the Code, viz: Article II "Definitions ",
Article VI, "Administration ", to the extent that they shall be appli-
cable to this Supplemental Code as such or as it mlay hereafter be
administered as an autonomous Code; Article: VIII, "' Modlifications
and Termlination "; and Article IXi, W~ithldrawalZ 1 ", are here
made a part of this Supplemnent~al Code, with the same effect as i
they were written in this Supplemental Code.

(a) A Code Authority for this Subdivision is hereby constituted
to administer, supervise and facilitate t~he enforcement of the Code
and of this Supplemental Code in the manner andl to the extent
provided in the Code and in this Supplemental Code.
(b) During a period not to exceed sixtyv (60) days following th~e
effective date and pending the election of the permanent ~Code
Authority, the Board of Mlanagers of the Applicant. shall constitute
a temporary Code Authority.
(c) The Applicant shall, by written notice sent by regristered m-ail
to employers known to the Applicant, call a meeting of employers
to be held within sixty (60) days after t~he effective date for the pur-
poseof dopingprocedural rules and regulations for the election,
orgaizaionandoperation of the permanent Code Aulthority and
electing a permanent Code AuthorityI which shall consist.of seven
(7) members. The Administrator miay, in his discretion, appoint
one additional member (without vote and w~ithoult expense to th~e
Subdivision). The permanent Codle Author~ity so elected and ap-
pointed shall supersede the temporary Code Au leeetho ity. ft
(d) A~ny employer shall be entitle ooeatheeltonoth
permanent Code Authority and at other meetings of employers and
share in the benefits of the activities of Code Authority and par-
ticipate in any endeavors of C'ode AQut~horit.v inl t~he rIeparation of
any amendments or revisions of, or additions or supp emeints to this
Supplemental Code by paying or agreeing to pay, as and w~hen
assessed, his proper pro rata share of thle reasonable cost of creating
and administering this Supplemental Code as deter~minedc by Code
Autoriy.The cost of creating and admlinist~ering this Sulpple-
mental ode shall be pro-rated among the employers in the rantio o f
the number of Class B votes to which they are entitled as determined
in paragraph (e) of this Article V.
(e) Thlere shall be two classes of votes, Class A votes and Class
B vot~es. Each employer, entitled to vote as provided in Section
(d) of this Article V, shall have one: Class A vote. Each such em~-
ployer shall have one ~Cllass B vot~e for each $25,000.00 or major frac-
tion thereof of the yearly av-erage net sales (billings) f.oE.b., the em-
ployer's works, of the products of thle Subdivision, sold for use
within the several states of the United States and. t~he Distr~ict of
Columbia, by t~he! employer during t~he five calendar yea~rs nlpreceing

the Subdivision meeting; but any member who would not be en-
titled t.o any Class B3 votes under the foregaoing provision shaUl have
one Class B vote.
At the meeting for the election of a permanent Code Authority
three members of t~he Code Authority7 shall be elected by Class A votes
only, and~ four members by Class B votes only. Each employer
present or represented at thle meeting shall be entitled to cast one
Class A vote for each of the vacancies to be filled by Class A votes
and shall be entitled to cast thle number of Class B votes to which
the employer is entitled for each of the vacancies to be filled by Class
B votes. The nominations and ballotingas for members elected by
Class A votes shall precede the nominations and ballatings for mem-
bers to be elected by Class B votes. The three persons receiving
the~ higrhst number of Class9 A votes andr thec fouir persons receiving
the highest number of Class B votes shall constitute the permanent
Code Authority. Any subsequent vacancy in the members elected
by Class A votes shall be filled by Class A votes only, and any sub-
sequent vacancy in the members elected by Class B votes shall be
filled by Class B votes only.
All other action by employers at any Subdivision meeting shall
require for approval the affimative majority Class A vote of em-
ployers represented at the meeting and the affirmative majority Class
B votes of the employers so represented, except in those cases where
a larger affirmative percentage of votes of each class is expressly pro-
vided in Article VII (b), Article X (b) and Article XI of this
Supplemental Code.
Voting at any Subdivision meeting shall be by employers entitled
to vote as provided in section (d) of this Article V or by an author-
ized representative of such employer or by proxy duly executed and
filed wvit~h the Code Authority. At least one (1) day before the meet-
ing of employers for the election of the permanent Code. Authority
and at least one (1) day before the holding of any Subdivision
meeting, each employer desiring to cast more than one Class B vote
at t~he meeting about to be held shall furnish to the Code Authority
the information required to determine the number of such employer's
Class B votes in such detail and in such form as the temporary or
permanent Code Authority may require. The temporary or perma-
nent Code Authority shall have full power to dispose of all questions
arising in connection therewith a-nd to determine finally and con-
clusively thle number of Class B votes of each employer.
(f) Employers in this Subdivision having a common interest and
common problems may be grouped by Code Authority for adminis-
trative purposes. There shall be a group Code Authority approved
or! appointed by Code Authority for each such group.
()If formal complaint is made to Code Authority that provisions
of this Supplemental Code have been violated by any employer,
Code Authority or the proper Group Code Authority may to the
extent permitted by the Act cause such investigation or audit to be
made as may be deemed necessary. If such investigation is made
by Group Code Authority it shall report the result of such investi-
gation or audit to Code Authority for action.
(h) The Code Authority may appoint a Trade Practice Com-
mlit.tee which shall meet with the Trade Practice Committees ap-

pointed under such other Codes as may be related to the Sub-
division for the purpose of formulating fair trade practices to
govern the relationships between production and distribution emp-
ployerss under this Supplemental C~ode and under such others to
the end that such fair trade practices may be proposed to thle
Administrator as amendments t~o this Supplemental Code and such
other codes.
(i) In order that the Code Authorityv shall at all times be truly
representative of the members, the Administrator may prescribe
such hearings as he may deem proper; and thereafter, if he shall
find that the Code Aut~hority is not t.ruly representative or does not
in other respects comply with the provisions of t.he Act, hes may
require an appropriate modification in t~he method of selection of
the Code Authority.

The Code AuthorityF shall cause to be formulated an accounting
syvstem a~nd methods of cost findlingr and/,or estimating capable of
use by all employers of the Subdivision. After such system and
methods have been formulated, full details concerning themn shall
be made available to all employers. Thereafter all employers shall
determine and/'or estimate costs in accordance with the principles
of such methods.

(a) If and when Code Authorit~y determines that in any group
of the Subdivision it has been the generally recognized practice to
sell a specified product on the basis of net price lists, or price: lists
with discount sheets, and fixed terms of sale and payment, each em-
ployer engaged in the manufacture of such product shall, within
ten (10) days after notice of such determination, file with Code
Authority a net price list, or a price list with discount sheet, as
the case may be, individually prepared byv him, showing ~his cur--
rent prices, or prices and discounts, and terms of sale and payment
for such specified product, and Code Authority shall immiediatelyI
publish and send copies tlhereof to all known employers who are
cooperating under this Supplemental Code as described in Article
V (d) and engaged in the manufacture of such specified products.
Revised price lists and,'or discount sheets and or terms of sale
and payment may be filed from time to time thereafter w~ithl the Code
Authority by any such employer, to become operative upon the date
specified therein, but such revised lists and I'or discount sheets and~/or
terms of sale and payment shall be filed with the Code Authority ten
(10) days in advance of the operative date. The Code Authority
or Group Code Authority may establish a shorter period at; anzy tim~e
provided no revisions then wFaitinag operative date shall be affected
thereby. Copies thereof, with notice of the operative date specified,
shall be immediately published and sent ton all employers cooperatinga
under this Supplem~ental Code as described in Art~icle V (d), and
engaged in the manufacture of such specified products, any of whom
may file, if he so desires, revTisions of his price lists and, or discount


sheets and/or terms of sale and payment, which shall become effee-
tive upon the date when the revised prlice list and/or discount sheets
and/or terms of sale and payment first filed shall go inito effect.l
(b) If and when Code Authority shall determine that in any group
of the Subdivision not now selling its product on the basis of price
lists, with or without discount sheets, with fixed terms of sale and
payment, the distribution or marketing conditions in the group are
the same as, or similar to, the distribution or marketing conditions
in a group where the use of price lists, with or without discount
sheets and fixed terms of sale and payment is well recognized, and
that a system of selling on net price lists or price lists and discount
sheets with fixed terms of sale and payment for such specified
product should be put into effect in such group, then each employer
in such group shall within twenty (20) days after notice of such
determination, file with Code Authority net price lists or price
lists and discount sheets, with fixed terms of sale and payment, show-
ing his prices and discounts and terms of sale and payment and
such price lists and/or discount sheets and/or terms of saeand
payment may: be thereafter revised in the manner hereinbefore pro-
vided. Provided that Code Authority shall make no determination,
to Place any Product of the Sub~division (not now on a price list
basis) on a price list basis, as provided in this Section unless affirma-
tive consent to such determination is given by the concurring affirma-
tive vote of at least 66%%~ of the whole number of Class A votes
and 66?5r of the whole number of Class B votes of all employers
who are at the time cooperating under this Supplemental code as
described in Article V (d) and who are engaged in manufacturing
such product. The eligibility requirements and methods of such
voting shall be the same as is provided by Article V.
(c) No employer shall sell directly or indirectly by any means
whatsoever, any product of the Subdivision covered by provisions of
this Article VII at a price or at discounts or on terms of sale and
payment, different from those provided in his own current net price
lists, or price lists and discount sheets, and terms of sale and

(1) No employer shall offer, make or extend to any customer or
any prospective customer for the purpose of influencing a sale (a)
any special terms of payment, service or privilege not made, offered
or extended to all customers or prospective customers of the samne
class, or (b) any secret payment or secret allowance of a rebate,
refund, commission, credit, unearned discount or excess allowance
whether in t~he form of money or otherwise. No employer shall
pay or promise to pay money, or give or promise to give any valuable
thing to any agent, fiduciary or representative with or without the
Imowledge of his principal in connection with any sale to his prin-
cipal. This provision shall not be construed to prohibit free and
general distribution of articles commonly used for advertising ex-
isee paragraph 2 of order approving this Code.

cept; so far as such articles are actually used in violation of the
provisions of this paragraph.
(2) No employer shall untruthfully advertise, represent, or mlar-
ket any product with intent t~o deceive or mislead pr~ospective
(3) No employer shall publish or circulate unjustified or unwrar-
ranted threats of legal proceedings, which t.endl to have the effec~ct
of harassing competitors or intimidating their customers.
(4) No employer shall reduce a quotation once submitted unless
a change in the purchaser's plans require it and then only consist-
ently with the change made.
(5) No employer shall accept a contract or order to carry out
the field erection of any of the products of the Industry included
in Groups 1 and 2 of the definition under the subheading '" Sub-
division of Article II, except for the furnishing of erecting engi-
neers at a per diem rate plus living and travelingr expenses.
(6) No employer shall accept a contract assuming responsibility
for consequential damages. The term consequential damag~Fes is
defined to mean any damages (1) other than, or in excess of, the
reaonalecos ofreairing or replacing any defective machinery,
equipment or parts unse yteepoe ne h otat
or (2) other than stipulated, liquidated damages relating to delivery,
completion and/or performance. Nothing contained in this para-
graph (6) shall be construed to limit an employer's legal liability
for negligence.
(7) No employer shall furnish directly or indirectly to any pur-
chaser and/or his agents (except the United States Government for
navigation, national defense or similar United States Government
enterprises) detailed shop drawings of the products of this Sub-
division without filing a statement of such proposed transaction
with the Code Authority which may approve, or with thle approval
of the Administrator, may disapprove the transaction within twenty
(20) dys by written notice to the employer.
(8) Noemployer shall furnish information or drawings for ap)-
praisal purposes without adequate charge for the same, but informia-
tion not requiring the searching of records, preparation of engineer-
ing data or estimates and/lor other work involving appreciable cost
ton t~he mpn~loyer may be fulrnishedC without charge.
(9) It shall be an unfair trade practice to indulge in destructive
price. cutting.
The prnoisinsp of this Supleme~nntal Code~ concerning pricing
and marketing (Airticles VII and VIII) shall not. apply to direct
export sales of any product. A similar exemption may be granted by
the Code Authority as to sales of any product destined ultimately
for export. Unless otherwise determined by the Code Authority the
term "L export shall include all shipments to all places without the
several states of the United States and the District of Columbia;
provided, however, that no shipment to any territory or possession
of the United States shall be considered as export when any employer
is engaged in the Subdivision in such territory or possession.


14 3 1262 08584 2184

(a) As provided by Section 10 (b) of the Act, the Preslid ~i
may from time to time cancel or modify any order, approval, license~,
rule or regulation issued under Title I of the Act.
(b) Any amendments, additions, revisions or supplements of this;
Supplemental Code, proposed by Code Authority, and authorized by
the concurring affirmative vote of at least 66%%~ of the whole num-
ber of Class A votes and 66%%~ of the whole number of Class B
votes of all employers who are at the time cooperating under thiis
Supplemental Code as described in Article V (d), shall be in full ~i
force and effect upon approval by the Admimistrator. The eligi-~
bility of voters and the method of such voting shall be the same ag'
provided in Article V hereof.
(c) This Supplemental Code shall terminate on June 16, 1935, or
on such date prior thereto when the Act shall be repealed or the
President shall, by proclamation, or the Congress shall, by joint reso- 9
lution, direct that the emergency recognized by Section 1 of the Act 'r~
has ended. :3

Upon thirty days' notice to the Basic Code Authority and to the
Admlinistrator, this Subdivision may, upon the concurring affirma-
tive vote of at least 66%%0/ of the whole number of Class A votes and '
~66/% of the whole number of Class B1 votes of all employers who
are at the time cooperating under this Supplemental Code as
described in Article V (d), withdraw from the jurisdiction of the
Basic Code Authority. The eligibility of voters and the method
of such voting shall be in accordance with the provisions of Article~
V hereof. After and in the event such withdrawal is accomplished
this Supplemental Code, together with the provisions of the Code
shall become and be the sole code governing this Subdivision, and
the Code Authority shall for this Subdivision, become and be the
sole Code Authority and shall perform all the functions with respect

Applicant imposes and shall impose no inequitable restrictions on
membership therein. The Supplemental Code presented by it is not
designed to promote monopoly, and shall not be so construed or
applied as to oppress or eliminate small enterprises or discriminate
against them, and is designed to effectuate the policy of the Act.
This Sup~plemental Code shall become effective and binding on aHl
persons engaged in the Subdivision on the eleventh day after its
Approved Code No. 347i-Supplement No. 13,
Registry No. 1312-06.