Supplementary code of fair competition for the chemical engineering equipment industry (a division of the machinery and ...


Material Information

Supplementary code of fair competition for the chemical engineering equipment industry (a division of the machinery and allied products industry) as approved on July 5, 1934
Portion of title:
Chemical engineering equipment industry
Physical Description:
13 p. : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Chemical engineering -- Equipment and supplies -- United States   ( lcsh )
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:
"Registry No. 1614-01."
General Note:
"Approved Code No. 347--Supplement No. 23."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004936539
oclc - 647767987
System ID:

Full Text

For sale by the SuperintendedL of Docluments, Washington, D.C. .- .Price 5 cente

Approved Code No. 347--Supplement No. 23

Registry No. 1614--01






(A Division of the Machinery and Allied Products Industry)



This publication is for sale by the Superintendent of Doc~uments, Government
Printing Office, WTashington, D.C., and by district offices of the Bureau of
Foreign and Domestle Commerce.

Atlanta, Ga.: 5041 Post Ofiice Building.
Birmingham, Ala.: 237 Federal Building.
Boston, Mb~ass.: 18011 Custombouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chieago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, M~ich.: 8;01 First National Bank Building.
H~ouston, Tex.: Chamber of Commerce Building.
Judianapolis, Ind.: Chamber of Commerce Building.
Jack~sonville, Fla.: Chamber of Commerce Building.
Kannss City, MIo.: 1028 Baltimor'e Avenue.
Los Angeles, Calif.: 1163 South Broadwvay.
Louisville, Ky.: 408 Federal Building.
MIemuphis, Tenn.: 229 Federal Bullding.
M~ilnenepolis, Mlinn.: 213 Federal Building.
New Orleans. La. : Roo~ 225-A, Customhouse.
New Yoirk, N.Y.: 734 Custombouse.
Norfolk-, V'a.: 406 East Plume Street.
Philadlelphia. Pa.; 0L2 Commercial Trust Buildingr.
Pittsburghi, Pa.: Chamber of Cormmerce Building.
Portland, Oregr.: 215 New Post Office Building.
St. Louis, Mlo.: 5016 Olive Street.
Sunl Francrisco, Calif.: 310 Custombouse.
Seattle, Wansh.: 809 Federal Office Building.

Approved Code No. 347-Supplemen~t No. 23



As Approvedl on July 5, 1934


ENGITNEERIT; u EcQvIIR!mer hI NousanY?


An app-rlicantion havi;ng been duly madle pursuan~~lt~ to and~t in fulll
compliance w~ith the p~rovision-; of Title I of the National Industr~al
Recovery Act., approvedt June 16, 1933, for approval of a ,Siilfle-
mental Code of Fair Comlpettition for the Chemical En~nneernng
Equipment Subdivisioc-n of M\ac'hiner~y andl Allied Products Industry,
and hearings having been dulyl held thereon andl the annexed report;
on saidl Supplementat l Codle edcntaining findings with r~especLt thereto,
having b~een mader and dli~ctedl to their Presidenlt:t
NOWr, THER.EFORE:, onl behalf of the Presidenlt of thne United
States, I, Hugh S. Jolhnsonl Adlministentor for Industr~ial Recovery,
pursuunn to nuth~ority. vested ini me by xctv reso h rs
dlent, including ~s~uiExecutive Orderl No. 6543-A, daedDeem er 30
1:3f3. andl otherw~ise; do he~reby incorpol'l(~'lra by recfer~ence sa:id annexed
report andl do findl th!at saidl Supplemental Code complies in all
respects with t~he pecrtine~nt pr'ovisionis and will promote the policy
and purposes of saidl Title of said A~ct; andl do h~ereby,3 order that
said Supplemen"tal Cocde of Fiair Compe,~ttition be and it is hereby
ap~provecd sub~ject to the condlitioni that Artic-le XIV be and it her~eby
is deleted therefrom.
HuanR S. JOI1Sson,
Adinini~srator fo Idtria Recovery... ,
A pproval recomnmentlde:
Bar~oN W. Mannur.\,
Di vi~sion Admini ilis~ftator/1.

72109---829J-2:'-- 34 (1)


The Wh'ite HYowei.
Smn: Thiis is a. report on the Supplemental Code of Fair Compe-
t~ition for the C'hemical Engineering Equipment Subdivision of Ma~-
chineryv and Allied Products Industry: a Puiblic Henring on whiich
wa~s heldl in Wa'shington, D.C., on Aprrl LBT, 1934. The Hearing was
conducted- in full alccor~dance w-ith the provisions of Title I of the
RNation~al Indlustrial Recovery Atct.

The Chemrlical Engineer~ing Equipmnent Siubdivision, being truly
representative of the manufacturers of the products defined in Ar-
ticle II of the Supplemental Code, has elected to form~ulate and sub-
miit n Suppllemenltal C'ode of Fair Comipetition as provided in
Article I of the C'ode~ of Fanir Comlpetition for thle blachinery and
Allied~ Products Industry, appr~oved on the~ tw~enty-eighth day of

The C'hemiiedl Engineer~ing Equipm~ent Subdivision mneans the
mianuifacture,? design, engineering, erection, andt 'or licensing of chemu-
iCa1t'l enin~eering equipment together with it~s necessories and nee-
essary housing, for sale, and2 or t~he licensing of chemical engineer-
inig processes fo' u1se inl connlectionl with sp3ecifiedl chemical engi-
neering eq~uipme-rtnt, and shasll be construed to include all persons
engagedl in suich mlanulfacture, design, engineering and,l'or erection
fo sale andl or such licensing; provided, however, that all specific
equipment.n covered by other codes heretofore or hereafter approved
ulnder thle Act is excluded to the extent of its coverage under such

Th~is subliv-ision hafs been severely affected by: the recent decpres-
sion. This isi evidencedl by the steady decline in anlnual sales after
1930,~ althouigh it. is w~orthyv of note that sales increased from
$19,864,(000 in 11929 to $21,46'1.000l in 19330, or 8.09;. However, they
declined th~ereafter to $4,40~0,000 in 1939, or 79.5%~. Sales for the
first eight months of 1933 amoulnted to $4~,475,000.
Inl 1020) this S~lubiv~isionI employedI. r~L~ 3.23pe'sonlS, includ~ingr office
employees, which toltaldeclined to 1,698 in 1932, or 47i.69., incrreasing
to 1,;3:3, in 1933. No da~ta are available on average hours of labor
or average wage rates for. the Subdivision. The effect of the wage
and hour11 provisions of thle Supplemental C~ode can not, therefore,
b)e determllined.
The wngec pr~ovisions for the Siubdivision, which is operating under
ther C'ode of the 1\lachinery and Allied Products Industry, provide
that. emplloyees engaged in plant operations shall be paid as follows:
(1) in cities of more thanl 50,000 population and their immediate
vicinity, 40 cents per hour; (2:) in cities of more than 10,000 but not
mzore than 50,000 population anld their imlmedliate vicinity, which

cities are not in the immediate vicinity of a cit of more than 50?,000
population, 38 cents per hour; (3) in cities of 10,000 population or
less and their imm~ediate vricinityv, which cities are nrot in t~he im~-
medliate vicinity of Is city of mor~e than 10,000 population, 36 cents
per hour, except t~ha.t emnployrees engaged in plant operations in all
localities in the states of Virginia., North Carolina, South~ Carolina:,
Georgia, Florida,? Tennessee, Alabama, M~ississippi, Achannss, Louisi-
ana, Texas, anld Oklahoma, shall be paid not less than 32 cents per
When females do substantially thle same w-orke as males or replace
males, they shall receive the samle paytS. H~owrever`, no female emn-
ployee shall be paidt less than~ 8799~!c' of the proper rate for the local-
ity' m which employed.
Office boyrs and girls andi apprentices shall be paid not less thnan
80%b of the minimum wa-ge.
Employees other thnan those engag~ed in plant operations shall
receive not less than $15.00 per week~.
This Supplemental Code pr~ovides that no person under sixteen1
years of age shall be emnployed in this Sutbdivision.

Article I states the purpose of the Suppleme~nt~l. Code.
Article II acc~urately~ defines specific sterns applicable to the Sub-
divisioni as used in thiis Supplementall Codte.
Article III provrides for t~he adoption of the employment. provisions
of the Code of Fair Comnpetition for the Manchiner~y and Alllied Prod-
ucts Industry as apjproved by you anld as from~ time to time amendedl.
Article IV pro~videsi for th;e adoption of Articles II, VTI, VIII,
andi IXi of the Cod~e of Fair Compl.etitiojn for tlhe Machinery and
Allied Producits 'I~ndustry in accordcance with the conditions of this
Article governing their aioptionl.
Article V' p1ovid-es for~ t~he establishment of the Code Aiuthority
and dlefnes its powers.i and duties.
dArticle V'I p~rovides for registration of emnploy~ers of the Sub-
Article VII provides for an accouniting sys~tem and miethods of
cost. finding aInl 'or estimating.
Article VIIrI prov'ides forl not. sellingr below r~easonable cost when
an emnergenicy exists.
Article IX provides for methods of setting up, revising, and filings
price lists andi discount sheet; and terms o~f sale and payment.
Article X sets forth trade pIractices for the Subdivision.
Article XI contains pro0vi.Sionsj groverningr pricingr and mnarke~ting
on sales for export.
Article XII. This Suipplemiental Code and all the provisions
thereof are exprlessly made subject to th~e right of the Presidlent. in
necordance w~ith subsection (b) of Section 10 of the Act,! from timne
to time to cancel or m~odify any order, approval, license, rule or
regulation issuedl under saidl Act. Provision is also made that mod-
ifications may be submitted by the Code Author~ity to the Adminis-
trator for approval.
Article XIII provides means for withidrawal of this Subdivision
from thle Basic Code and its continuanlce as an autonomous Codec.

Article XIV provides for consent to changes, modifications, and
nmiendm~ents. (This Article is deleted by the Order approving this
Supplem'ent~l Ciode).
Article XV establishes that no provision of this Supplemental
Code shall be so appliedl as to permiit monopolies and monopolistic
practices or to eliminate, oppress, or discriminate against small
ente rprIises.
Article XVTI states the etfeet~ive date of this Supplemental Code.

The Assistant~ Dep~uty Administrator in his final report to me on
said Supplemlental Code haingi f found as herein set forth and on
thie bansis of all thle proceedings in this matter:
I findc that:
(a) Said Supplementall Code isj well designed to promote the
policies and purposes of Title I of thle National Industrial Recovery
Act, including rem~ovafl of obstructions to the free flow of interstate
and foreign commerce wFhich tend to diminish t~he amount thereof
andl will provide for the general welfare by p~romioting the orgraniza-
tion of industry for t~he purpose of cooperative action among the
trade groups, by inducir nd mali 11intainingl united action of labor
and malnangemen't under adequate governmental sanctions and sup~er-
nision, by chmmaint mg~ unfair compe3ttitie practices, by promiotinmg the
fulllest. possible utilization of the present~ plrodiuctive capacity of in-
dustries, by avoiding undue restriction of production (except as may
be temlporarlyg required). by incr~easing the co-nsumpt~ion of indus-
trial andt agiicuiltural products through increasing puirchasingr power,
by r~edulc-ing~ a nd rel iev i ngC nemnploymen t, by im prov ing standards
of Inbor, and by3 othierw~ise rehabilitating industry.
(b) Said Subldivision normia~lly employs not more than 50,000
employees; and isi niot classified by me as a major industry.
(c) Theo Supplemnental Code as app~roved complies in all respects
with the pertinent p~rovisions of said Title of said Act, including
wiithout lim~ita~tionl SCubsection (a) of Section :3, Subsection (a) of
Section 7. andi~ SulbsectionI (b~) of Sctiion 10 thereof ; and that the
ap~pliennt instfitute is anl inlstitlte trulyl represeltative: of the afore-
said Subdlivisionl; andi that said institute imposes no inequitable
restr~ictionls on admission to m~embership therein.
(td) Th~e Sup~plemental Code is not. designed to andl will not permit
monopolies or monopolistic practices.
(e) The Supplemnental Codle is not designed to and wvill not
eliminate or opp~ress small enterprises and will not operate to
discrimiinate against them.
(f) Those engagied in other steps of the economic process have
not been dleprived of the right. to be heard prior to approval of said
Supplemental Code.
For these reasonsi, therefore, I have approved this Supplemental
Code, p~rovided that Article XIV is deleted in the order.
Respect fully,
JUnLY 5, 1934.




To effect~uate the policy of Title I of t.hle National Industrial Re-
covery Act, the following provisions are established as a Supple-
mental Code for the Chemical Engineering Equipmient Subdivision
of the MIachineryF and Allied Products Industry, andr upon ap~pr~oval
by the President this Supplemnental Code taken together with the
Code of Fair Competition for t~he Miachinery andi Allied Produlctss
Industry, to which it is a Supplement, sh~all be ther standard of fair
competition for this Subdivision, and shall be binding onJ each
employer therein.

"Applicant means the Chemical EngineeringE Equipmecnt Insti-
tute, a trade organization, all miembers of which are engaged in the
Chemical Engineering EquipmI~ent Subdlivision of the Ma~chineryy and
Allied Products Industry.
"L Industry means thie Machinery andl AlliedZ Products Ind~ustry
as definedl in its Code of Fair Competition, as ap~proved by the
President, and as such definition may fromn timne to time be amended.
"' Subdivision means this Chemlical Engrineering Equl~ipment Sub-
division of the Miachineryr and Allied Prodcucts Indrustry as dlefned
and set forth in Article II of the Codle of thle Ma~chinery and Allied
Products Industr~y (as amended Miay 28, 1934') as follows:
"' Chemical Engineering Equipmnent Suibdivision means the m-ranu-
facture, design, engineering, erection andl,'or licensing of chemnical
engineering equiipment, together with its accessories and necessary
housing, for sale, and/ior the licensingr of chemiical eng~ineeringr
processes for use in connection wFith specified chemical engineering
equipment, andl shall be construedi to include all persons engagedl in
such manufacture, design, engineering and;,'or erection for sale
and/'or such licensing; p~rovided, howcev~er, that all specific equipment
covered by other codes heretofore or hereafter approved under the
Act is excluded to the extent of its coverage under such codes."'
"' Code means the Code of Fair Comnpetitioni for the M~achinery
and Allied Prodlucts Industry, as approved by the Presidenlt, and as
from time to timie amended.
Person means a natural person. a corporation, a partnership, an
association, a trust, a trustee, a trustee in bankrruptcy, a receiver, or
other entity.

"' Emnployerr !' mni~s anly person engaged in thle Subdivision either
on h~is owln behlinf or as an emnployrer of labor.
'' The Act "' meansi~i Title I of th~e RNational Industrial Recovery Act.
"' TheC President means the President of the United States.
Thle Acdmrinistr ator "' meants the Administrator for Industrial
"' Basic Codec Aluth!ority means the Code Authority for the Maf~-
chiineryv and- Allied(r Products Industry as constituted by t~he C~ode.
"' C])I le Autority meacns the Clode Authlority constituted for this
Subd~ivision as pro~idledd by thle C~ode andi by this Supplemient~al Code.
'" Group- Codle Aulthority means the Code Authority for any group
or product class~ifica~tion w~it~hin this Subdivisioni, constituted under
the auithority of thec Colde andl of this Sup~plem~ental Code.

The followring AIrticles of the Code, viz.: Article III, "L Working
H-ouriis ; Artic~le IV', Wages "; and Article V, General Labor
Prov-isioni s ", are h~ereby~ made a part of this Supplemecntal Clode with
the same etfeet as if they w~ere wTritten into this Supplemental Code.

Thec follow~ing Articles of the C'ode, vijz. X.At~icle II, Definitions "'
andl Ariticle V-IT; -- Aministrantion ", to the extent that they shall be
applicablet to thiis Supplem~ental Code as: suIch o' as it may5 hereafter
be admiiinistered! as an aluto-nomious codol; AJrticle VIII, odifica-
tion~s andi Termnination "; an~d A~rticle IXC, "~ Withdrawal "', are herebyf~
mad~re a. pa't of th~is Sjupplentalt l Code with the F3ame effectasi
they! wre written inito this Sup~plemelintl Code.
AUTIC'LE VT-AnniisN~Tn~: vrrow

(0)! Theret s;hall forthw~ith be constitlt~edl a Code Autlfhor~ity3 con-
sisting of (A) noti mlor~e tha:n t.wclve (12') members of! the Boanrd of
Directors o-f the Applical l ntl and(B not. more than two (2) members
chosen (in an~y manner appDroved by t~he Admtinistrator) by those
employers entitled~ to vote in this Subdivision not mnembersi of the
A p plica nt, a nd (:3) the Admlin i ~strat or miay a t h is dliscret ion appoi nt
one adlditionJal member (without vote andi without expense to thez
(b) Said Code Authority shaoll adopt subject to the: approval of
the Adminillstrator rules andl regula-ions for the conduct of the code
nativities of the Subildivisionl not inconsistent wvith t~he provisions of
th~e Code andt of this Sup-plemntatn l Code.
(c) Any employer in this Subdivision shall be eligble to mem-
berl~lhip in th~e Applicant. The Applicant shlall (1) impose no in-
equoitable resctrictions on mnemberlship, and (2) submit to the Admin-
istrator true cop~ies of its articles of association, by-laws, regullations,
and- any amlendmerlnts w~hen mande thereto, together with such other
information as to me~mbershipl organization, and activities as the
Administrator many dleem necessary to effectuate. the purposes of the

(d) In order that the Code Authority shall ait all times be truly
represenitati ve of th~e Sulbdiv~ision and in other rcsp~eits comply with
the p~rovisions of the A~ct, the Adicministraftoir may prest'crible such
hearings as he maynS deern proper; and t~herenfter if he halol Find thant
the. Code Auth~ority: is not trully r~eprese"nttive or does not in other
respectsi com~ply wilth the proc-visions of the Alct, mayzJ r~ecl~ro an.
appropriate mo~dification in thet method~ of selection of the Code
(e) Any employer in thiis Subdivision, by necepting hLis pro-rata
share of the reasonlable cosct of creatinrr andl admlinist~eri nl this Suj~p-
plem~ental C'ode as determined~r by thle C'ode A~uthority andc approved
by the Admlinistr~ator, shall ber entitled to vote on matters r~equir.ingi
thle 'o~te of emplloy)~ersM andI to share in thie beeitileLs of the activities
of the Code Anlthority and~ participate in the p~reparation of any
revisions of or addcitions or supplementst. to this Supplemental Code.
(f) Action by thec employers in the Subdcivision at any meeting=
for the transactions n of business; and notion onl Codle revisions shall be
by vrote of thle emloy!c~ ersr entitled~ to volte as p~rovidedr in (e) ab~ove,
present in p~er~son or by pr~oxy, in both1 of the following ways:
(1) B vote of each~ employer.
(2) By vote of each employeTr weighted on thep bins of one vote
for each $75.0j0 or fraction t'hereo~f paid by said em~ployer on a~c-
count, of assessm~en~ts leiedl under the provcisiions of this Sulpple-
mental CTodle duringS the twelv~ (13) montilhs Ipr~cedCing~ the day~T ofe
vot ing.
Excet~lt as otherwnise proivided~ in, thre C7ode or in this ~Sulppleme~ntal
Code, any~ action ~take~n art any m~et~ing of employers herecunderl shall
be by' ma~jor'ity vote, east andc~ comnputedl in each of thet two wayn3 s
her~einbefrore provided.
(g) Thle Corle Authlority mayJ appIoint a Tralde Pen~c-tice~ Commit-
tee which shall mneet with! t~he traldr prhetic~e c~ommittees appo'inlted
under such other codes as maty be related. to the S~bdfivisioi n for the
p~urpose of formulaltingr fair trade practices to gov\elrn the relatio~n-
shlip betweenl pr~odneltion a~nd distributlci n employers ulnder this Cod~e
andl under~cu:l uch others to the end~ thalt such fair trade practices mayB
be proposed~ to~ thei Adm~rin istratoro ~ as amendmie ents to this Codle and
such other codles
(h) If formanl complaint is maide to Code~ Autho~rity, that p~rovi-
sions of this Sulpplemnental Code hav-e been violated by any employer,
the Code A~uthority or the proper Grroupy Code Aultho~rity, mayJ to th
extent per~mittedl by thle Act, enuse such in-e~stigationl or audit to be
mnade as may be deemedl necessary. If suchi investigation is made
by Groupl Code Authority, it shall report thle resullts of such inrvest~i-
ga~tion or nu!dit to the Code Authority for action.

The Code A~uthority shall exercise due diligrence in notifying all
employers engaged in the Subdivision of the approval of this Sup-
plemental Codle and shall invite all employers desiring to participate
in the benefits hereof to register with it. Such r~egistration shall
include the full name and mailing addtressi of the employer together
with a list of his products in this Subdivision. The Clode Authority

shall be under no obligation to notify any person not so registered
with it of its actions or of any meeting of employers hereunder.

The Code Authority shall cause to be formulated methods of cost
finding and.'obr estimating capable of use by all employers of the
Subdlivision. After such methods have been formulated, full details
concerning them shall be: made available to all employers. There-
after all employers shall deet~ernune anid/or estimate costs required
by this Supplemental Code in accordance with the principles of such


WFhen the Code Authority determines that an emergency exists
in this Subdivision andl thlat the cause thereof is destructive price-
cuttinlg such~ as to render inetfective or seriously endanger the main-
tenance of thle provisions of this Supplemental Code, the Code Au-
thority may cause to be determinedc the lowest reasonable cost of
the products of thiis Subdivision, such determination to be subject
to such notice and hearing as t~he Administrator may require. The
Admlinistrantor maly approve, disapprov-e or modify the determina-
t~ion. Ther~eafter, during the period of the emergency, it shall be
andl unfair trade practice for any employer of the Subdivision to
sell or' ot~er to Sell anyl products of the Subdivision for which the
lowest. reasonable cost has been determined at such prices or upon
such~ sterns or conditions of sale that the buyer will pay less thierefor
than thle lowest r~easionable cost of such prod ucts.
W'hen it appears~ that conditions have changed, the Clode Author-
ity!, upocn its ownl in~itiativeB ,l or upon t.he request of any interested
par~ty, hall cause the deter~miinaioin to be reviewed.

(0) If alnd when the Code Authority determine s that in any branch
or group of the Subdlivisioni it has been the generally recognized
practice to sell a specified product on the basis of printed niet price
lists, or price lists with discount. sheets, andi terms of sale and pay-
men, pecified therein, each mianufacturer~ of such product shall,
within ten (10) dlays after notice of such determination, file with
the Code Authority a niet price list, or a price list and discount sheet,
as the case mayS be, individuallly prepared byr him, showing his current
pr~ices, or prices and dliscounts, a~nd term-ls of sale and payment, andl
the Code Authority shall immnedliatelyv publish (manke available to
all interested parties) at. the offie of Code Authority and send copies
thereo!f to all manufacturers of such specified product registered
withl Code Authority in accordance writh Article VI hereof and who
shall haRve supplied such price list of his own products.
Revised price lists and 'or discount sheets and/'or all other condi-
tions of sale may) be filedl from t.imne to time thereafter with the Code
Authority by any manufacturer of such product, to become effective
on the daute of such filing. Copies of such revised price lists and/or
discount. shee-ts and, or all other conditions of sale shall be immedi-

ately published (made available to all interested parties) at. the office
of the Code Authority and senit to all mannufac-tu~rers of sulch ~r~od-
uct, r-egistered withl C'ode Althor~lity in accor~dance w~ith Article VTI
hereof and who are co~operating in th~is Suple--lmental Code.
(b)1 If an-d wheicn the Code Anlthority shl; l dtrmnlljl e that in any
branch or grroup~ of the Sulbdiv-isio~n not now se~lling its product on
thle basis of price lists, wIthl or wijthout. discount shee~ts, wijth termsl~
of sale and payment, specified thetreinl, th~e distibtlionlill or marn~keting
conditions in aid branch or group of thec Subdiviision are the sameu
as, or similar to,, th~e dlistribtliion anid mnrketing condlitions in a
branch or group> of the Subd,!iv-ision where 1The use: of ~ric lists. with.
or without dlisount .sheet~s, andr otherl seccIfied- co~nditionsl1 of sale is
well r~ecognized, a~nd that. the~ Use of prTice lists. w'ith or w\ithlout dis-
count sheets, with othier spIcified' condlitions of sale" shou~~n!ld be p~t
into effect in such branch or grroup of the~ Subdlivii on,1 thlen each7
manulfacture~r of the p,croduct or products o~f -such bran;h1 or~l groupli of
the Suibdivisionl shall, w~ith~in tw-enty (201) days aft~ter no~tice of sujlchl
determination. file w~ith the C`ode Author~lity' not pi.,'i.' lists or pr~iCe
lists and discount shecet, coll~ntinim all other. specifiedl co~~rft~ition of
sale, and such price lists and~i lor d~iscouni sheets and, or' other spec~ifiedl
conditions of sale may be thiereaf'ter Ireisedt in th~e malnnelr here.inl-
abovre. provided; p;roided~c, howeve~jllr, that the Code Aulthlority hall1
make no determination~ to p-lace any produc'"lt of thc Sulbdivis-ion (not
now onl a price list basis) o~n a p~'rice~ list bas~is as~ prvc~iled in this
p~arag~raph (b) of Ai3rticle IX., unless twoc-th~irds of the~ emlol~~yers whlo
are at thait, tim~e engagedt in manul~lfalcturl:,'~ingsch pllrodct, andl~ w~ho
are entitled to \vote as above provided, shanll offirma:tivelyy r-co~en~t
that suich determ~iination be mad1Ce.
(c) For the purpose of ga~the1ring sttsia taa:(-- for- the'-- determina--:
tion or rev-isio~n of a lowest reasnable311 co;.st under artll'icle VTIII, the
Code Aulthlol~frit sall hanve power~~, on its owT;n initilia'tiv, or on3 theC
request of any empiloyer'', tor enu. mitted by th~e Act, any~ pri\e or the~c termsil of sale and~ payment for
any product shown in any price list and/~~or d~~~isent sheet t;e(ll withl
the Code Authlority by~ any employer;; ann for' the purposenPC of the~
invest~stigain thereof, to require, to thc clxtenllt permritted~ b~y the A~ct,
such employer to fulrniishl to an impaifrtial :lelenCy such~l inlformatl~~ionl
concerning the cost of manu!!~ factu~~nrin andc~ selling su~ch p!roductt as
the Codc ATuthlority shaoll deenI-. n~ce~ssary or proprcl foir suclh ]pftlurps.
(dl) No emloy~l~er shalll sell. d~irectly or indlilriectly,, byv aniy mean~ls
whatsoever, any product. of ihe~ Suibcivision! envered by) provisi~.~Ons:
of this Article IX at a price or at discon;lt s or on other condllitions~~ of
sale different fr~om those providedPr in his ow~nn culrent. net prlic~e lists,
or price lists andc discount shleets.
(e) Eachl empll~ F~loye shll prepre a~: nd furlnish~ the Codie A-uthc.rity
with such numbl~er of copies o-f his price lists and,'or discounlt .h!ee~ts
as Code Authlority may requlir~e for adm~inistration andt distribution.


(1) Cost of Dtl~ el~very.No employer shall sP ecl~l ipmnt~n covered
by this Sup~plemental Code at a dteivrdcl price unless suich dlelivered
price shall include the cost of delivery in adlditionn to the f.o.b. factory

(2) Te~rms of Paymen-t.-No employer shall sell equipment covered
by this Supplemental Code on terms of payment more liberal than:
(a) Five (5%c) percent cash discount for payment in full with
(b) Two (2C') pr'cenit cashi discount for payment in full within
ten ( 10) days from~ date of invoice, which date shall be the shipping
date; pm~rov/ide thit. on recuriirrng orders for spare parts and acces-
sories or supplies two (2P9) percent cash discount may be allowed
for payment on or before the tenth (10th) day of any month of
all invoices for thle preceding month.
(c) Net amount without cashi discount for payment in full within
thirty (30) days fr~om the date of the invoice, which date shall be
the shipping da~te, prorviddi, that the buyer may be allowed to retain
not miore thanl fifteen ''15%~) percent of t~he invoice price for not to
exceedl ninety (90) dlays f~rom the invoice dlate to allow for inspec-
tion and,'or operating tests of the equipment.
(dl) D~eferred terms covered by Conditional Sales Clontract or
Bailment Lease extendingi for not more than one year. In such
cases interest, on unpaid balances shall be charged tlo the buyer at
not less than six (659) percent per annum unless the state laws
governingr t~he contract provide a lower maximum legal rate; pro-
zwided, h~owevezr, t.hnt no employer shall pay any charges for financing
such Cionditional Sales Contracts or Bailmnent Leases.
ProidOI~;ed,1 hrowlevLer, that. not.hing in this Section 2 of Article X
shall apply to terms for the sale: of complete operating units, either
on an erected~ basis or on t~he basis of furniishing equipment and/or
materials plus engineering supervision.
(3) Ins~rtallartionz Serv~ce.--No employer shall furnishi services for
the installation of equipment unless such services are charged sep-
ar~atelyv t~o th~e b~uyer, such c~harg~e to be not less than the estimated
or ac~tual expense of such services; provided, however, that when an
employer's published price list clearly indicates that certain installa-
tioni service is included in the regular sales price of equipment so
pubjlishled, the services so indiented may be furnished on the basis
published; provided! further, that nothing in this Section (3) shall
apply t~o cases w~hier equipment or complete operating units shall
be sold, cither on an erectedl basis or on a basis of furnishimg mate-
r~ials plus~ enginee~ring sup>ervision.
(4~) Chags. inl and. CanlC('EC~llatos of C~oltr~a~cts.- (a) Noem?-
ployer shall accept responsibility for errors in blueprints and~/or
specification furnished by the buyers nor assume t~he cost of correcting
said errors.
(b:) No employer shall furnish special production services to give
unusual deliveryr not contemplated at the time of sale without
receiv-ingr the cost ther1eof from the: buyer.
(c) A change in cost. to emp~loy~er. of any alter~ation in an accepted
order or contract, miade at. buyer's written request, shall be charged
or credlited to buyer as the case many bte.
(5)j Expc~i~zrimenal WtolX rk nd E'nginzeerng Se~vi~ces.--(a) Code
Authority, with the approval of t~he Administrator, may from time
to time. limit the amounts of experimental workr and/lor engineering
service which mayr be fur~nishe~d gratis to the buyer, actual or pro-
sp~ec~tive, by employers in the Subd~ivision. Als and when such limit

or limits are establishedi, Code Authoritjr shall formulate a basis
for charges, subject. to ap~prov-al by the .Adminlistr~ator, for all suchr
exp~erimental wTorkr and/~or engrineer~ing service furnished~i in excess
of thle limit. or limits so, determllinedl.
(b) No k~i~em loye shanll agree to maintain, or service ait less thann
actual expense, equipment after installations andl cceptance. of same
by' the buye'ir; pr/ov'idedl hooe~ver, that azny emphl,~, yer mayg retplauce
any part or par~ts foundl to b~e of def~ective m~t~erial or wol~rkmanship..
(6) Respon~sibiitica of' E'mlplo-iicr.- (ai) ~No employer shall assume
the cost of or loss causdc~ b~y wo~rkl undertaken by any- buyer1 on such1
buyer's own responsibility.
(b) No emlployrer shall assumle th-e, cost of loss or damage~c to b~uyer's
patterns~, e~nginerciing lnta,7 equipment and/or drawings by fire or
other casualties be~yoind the control of such employer.
(7) Arbitrf1atcion.--No employecr shall necept as the sole arblitrator~
of a contract. for equipment or service withl anyv buycr, any person
employ~ed or retainedl directly or indirectly by said buyer.
(8)r In fair Prv/f l~ac-tice-ach- of thlpen followingt acts and practices is
deemed to be inimical to the b~est. interestl s of thle Subdivision1, and
of the public, and eachf is, therefore, her~eby d~'c\laret d to be, and~ to
constitute, an unfair m-ethnod of comlpet~ition, and is hereby pro-
hibitedl, viz. :
(a) G~iving, permitting to be given, orr directly offering to give,
anything of vaiute for the purpose of influencing or rewardin the
action of any employees, agent, or representative of another in rela-
tion to the bulsiness of the employecr of such emiplo>yee, t~he principal
of such ag~ent, or the re~pre~sentedl party, without~ the kinowrcledge of
such employer. princ-ipal, or party. This commerrciai l bribery provi-
sion shall not be contrued to prohibit free and genieral distribution
of articles c~ommlonly used for adv~ertis~ingi except so far as such abrti-
eles are actually used for comm rcl~-ial bribery13 as her~einhcfo~re dlefinekd.
(b) Any dliscr1imination~ between plur~chaser~s of the some~ class by
the sale of any standardized article having a pulblishted3 price at any
price different from the se~lle~r's pulblishfedl price by mneanls of direct
or indirect price colc~essions or by means of anry pr1ivil ege not
exte~ndled to all purchasers of th~e same class.

uct with intent to dleceiv-e or mislead pror-spectivre purchasers.
(d) Intentionlally procuring, otherwise thnn with th conlsent, of
an employer undcer this Supplemnental Codec, any inforrma~tonr co(n-
celrning the ibusiiness of suceh 7eployfer which~ is his trande sc'ret, or
Whenh IS OPllntrilv coDsi~ere~ll conftlntial1 In a gOmgs business.
(ep) K'nownr-gly to submit a qulotation tor a prospective crustomer
basedl onl original drawningrs, dcsigrns and/or~ sp~cifications pr,1epare~d
by another employer without. said emlployer"s written p~ermnision.
(f) Disseminating, punblishingr, or cir'culating anyi false or mis-
leadling information relative to any' prodneut or price for an product
of any emp~lo:yer, or thle credit standing or ability of any employer
to per~forml any work~l or mnu~l~facture o~r produce any product, or to
the conditions of employment wFithiin t~he organilzationl of any
(g) Inducing or attempting to induce by any means any party
to an existinga commercial contract w~it an employer to violate such

(h) Simulating in any printed matter any emblem, device, mark
or brand, or the distinctive style of any advertising matter or catalog
originated byr any other employer, for the purpose or with the effect;
of mlisleadilin culstomers or prospective customers.
( i) Directl~y or indi rectily tamnperi ng with or misadjusti ng an em-
player's product for the purpose of discrrediting such employer with
a customer.
(j) Furnishing equipment to a customer for trial purposes after
one successful commercial installation has been placed in operation
and accepted by a. purchaser, without a definite order and an advance
agreement thant if the equipment be returned, the customer will pay
the cost. of transportation to the original shipping point and the cost
of reconditioning.
(k) Indulging in destructive price cutting.

The pr~ovisions of this Supplemental Code concerning pricing and
mark~etinga shalll no~t. apply to direct export sales of any product. AQ
similar exempt~ion may be granted by the Code Authorilty as to sales
of anyl product. destined ultimately for export.. The t~erm "export "
shall include all shipm~ents to all places without t~he several states
of the United States and the District of Columbia; providedl, howc-
ever, that no shipment to anyr territ~ory ory osessione of teUnited
States shall be considered an export we n mlyri nae
in thie Subdivision in such territory or possession.

(a) As provided by' Section 10 (b) of the Act, the President may,
from time to time, cancel or miodlify any order, approval, license,
rule, or regulation issued under Title I of the Act.
(b) Studyr of t~he trade p~ractices of the :Subdivision will be con-
tinued by Code Autbhority, with the intention of submiitting, from
t~ime to timne, after its effiective date, additions to, or revisions of, or
supplements to, this Surpplementa~l Code.
(c) Any suchi amendm~lents, additions, revisions, or supplements
of this Supplemental Code, approved by a 66 o~~ vote of t~he em-
ployers cooperating under this Supplemental Code, shall be in full
force and effect upon approval by the President. The method,
manner, and effect of such1 voting shall be thle same as provided by
Article V.
(d) Th~is Suipplemental Code shall terminate June 16, 1935! or
upDon such date prior thereto when the Act shall be repealed or the
Pr~esident shall, by! proclamation, or the Congress shall. by joint reso-
luition_ dlirect that, t~he emergency recognized by Section I of the Act
has endedl.

As is provided by Article IXY of the Code, upon thirtyr (30) days'
notice to Basic Code Authority and to the Aidministrator, this Sub-
division may, upon the concurring affirmative vote of employers
within this Subdivision entitled to cast tw~o-thirds or more of all the

votes that might be cast by all empllloyers within thle ~Sub~iv~ision
entitled to vote thereon. :rithdrawn from thec jur~isdiction of B3asic
Code AiuthioritSy. The eligibility of voters andc the method3 and effect
of such voting shall be in accordanclle witl -t-he pr~ovisionsl of Sections
(e) and (f) of Article VT hereof. Th~ereafter this SupplementarlCItr l Co~de,
together w-ith thle provo~isions of the C'odec except; such pcortionrs of
Articles I, II, VTI and V'II as areC no~t pertinent thei~~ret, asi deteir-
mninedi by thet Code Authorit.y and~t the Adml~inistrator()1, shall ber:com!e
the code gover~ningI this formner Subd(ivisiion and its Code Autho~rity
shall become andl be th~e sole Codle Authority anId shall per~lform! 1 all
the functions thecreof w~ith respect to such Code.


By prceseting this Supplemntatr l Cod~e and nece~t-ing the prm-'\i-
sions of the Code of which it, is a sup~plemient, those emlol~~yer's who
assent hereto shanll not. be dctneeme to, have conlsented to anyhngs
miodifications, and amndmentsll~l thlere~of, exce~t as each hafll hr
subse uaently agree.'


Ap~plicalnt imnposes anld shall impos-,e no inequitable restrictions onr
mnembership> ther~ein. The Siuppllementai l Codet presenlted byT it is
niot dlesignedi to promote mlonop~oly, andc shall not ble so cons~tru~edl or
applied as to oppress or eliminate small ente-rpr~ises or discrimiinate
against themn anld is designed to e~ffect uate the policy of th~e Act.

This Supp~lemental Code sh~tall he-jrom effective and bindlingr on
thle eleventh~ cday after. its appIrovl.~l
Approved Co~de No.~ 11'i'-S~upplementlt Noj. ":.
Registry~ Nio. 1611---0.
L Deletel-SIee poragraphi of border approv'ing this C~ode.

1111 11111111111111|111111111 11111111111111111111
3 1262085842366