Supplementary code of fair competition for the multiple v-belt drive industry


Material Information

Supplementary code of fair competition for the multiple v-belt drive industry (a division of the machinery and allied products industry) as approved on July 13, 1934
Physical Description:
14 p. : ; 23 cm.
United States -- National Recovery Administration
Supt. of Documents
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
V-Belts -- Law and legislation -- United States   ( lcsh )
Machinery -- Law and legislation -- United States   ( lcsh )
Industries -- Law and legislation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
Approved Code No.347-Supplement No.30 ; Registry No.1399-69".

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004861101
oclc - 609669081
System ID:

Full Text

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

Approved Code No. 347--Supplement No. 30

Registry No. 1399--69






(A Division of the Mlachinery and Allied Products Industry)




This publication is for sale by the Sruperintendent of Documents, Government
Printing Office, Washington, D).C., and by district offices of the Bureau of
Foreign anld Domaestic Commerce.
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal~ Building.
Boston, Mass.: 1501 Custombouse.
Buflfalo, N.Y.: C'hamber of Commerce .Building.
Charleston, S.C.: Chlamnber of Comeeree 1Building.
Chicago, Ill.: Suite 1706), 201 No~rth Wel~ls Street.
Cleveland~, Ohio: Chamb111er of Commerce.
Dallas, T~ex.: Chamber of Commrerce B3uilding.
Detroit, Miich.: 801 First Naticonal Bank. Building.
Hlouston, Tex.: Ch'lamber of Commerce Building.
Indianapolis, Ind.: Chamberlcl of Commerce Building.
Jack~sonville, Fla.: C~hamber of Commerce Building.
K~ansas City, Mon.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 Southl Broadway.
Louisville, Kiy.: 408 F~ederal PEuilding.
lMemphis, Tenn.: 229 F~ederal Building.
M~inneapolis, Ml~inn.: 213 Federln Building~.
New Orleans, La.: Room 225-A, Custojmbouse.
New IYork, N.Y.: 734 Custombuse.
Norfolkr, Va.: 406 East Plume Street.
Phi~ladtelrphin, Pa.: 422 Comimercial Trust Building.
Pittsburgh, Pa.: ChambLer of Commer~lce Building,
Portland, ~reg.: 215 New Post Oticet Building.
St. L~ouis. Mfo.: 506 Olive Street.
San Francisco, Calif.: 310 Custombouse.
Seattle, Wash.: 8003 Federal Ofic-e Building.

Approved Code No. 347--Supplement No. 30



As Approved on. Jualy 13, 1934



An applicationl having been duly maderl purllsuanlt to and in full
compliance with the provisions of 'Title I of the National Indlustr~ial
Recovery Act, approved Junle 16, 1933, for approval of a Supple-
mental Code of Fair Competition for the M/ultiple V-Belt Drive
Subdivision of M~achinery and Allied Products Industry, and hear-
ings having been duly held thereon and the annexed report on said
LSupplemnental Code containing findings with respect thereto, having
been made and dir~ected- to the President:
NOW~, THEREFiORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Admllinistratorl for Industrial Recovery,
pursuant to authority rTestedl in me by ]Executiv-e Orders of the
President, including Executive Order No. 6i543-A, datted Dcem~~ber
30, 1933, and otherwise; do herebly~ incorporate by reference said
annexed report and do find that said Supplemlentatl Code complies
in all respects with the pertinent provisions and will promote the
policy and purposes of said Title of said Act; and do hlelreby order
that said Supplemelintal Code of Fair Competition be and it is hereby
approved subject to the following conditions: that the provisions of
Article VIII, Section (a), insofar as they: prescribe a waiting: period
between thne filing with the Code A~uthorityT (or such agency as mnay
be designated in the Supplementarlt Code) and the effecltiv-e date of
price lists or revised terms and conditions of sale, be and they are
hereby stayed pending my further order.
HUrGH S. Jo-n~soN,
Admnini~strator for bcl~ustr-ial Recovery.
Approval recolnunend-ed-:
Di/vision Adin, is t rator.

73B28"-- 2--01-II---::9 (11


IThe WVhite House.
SmR: Th1is is a recpor~t o-n the Supplementa~l Code. of F~air Compe-
titionr for the M5iultiple V-Belt Drive Subdivision of Mnc~hiner~y and
Allied Produc-t~s Indust~ry, a public hearing onj which wTAS held in
Wa~s'hington, D.C., on Ma~y 10, 1934. This public hearing wans con-
dclrted in full a ccordlan ce with th e p rov-isions of Ttle I of thre National
Industrial Recovery Abct and all persons were given full opjpor~tunity
to be heard.

TIhe Murltiple V-B~lt. Drive Subd~iviision, being rul ersett
of the manu fneturers. i of the products defined in Article I[I of the
Supplemental Code, ha~s elected to formulate and submit, a Supple-
mental Code of F;air -Compe,tition as provided in Art~icle I in the
Code of F~air Comlpetition for thle M~c~hine~ry and Allied Productsj
Industry-, appr?1oved'( :byU you on March 17, 1934.
T he multiplee V'-Belt Drive Sub~div-ision mneanis the mannufacture
for sale of M~utip~le Vi-Belt, Dlrives, and ,arts thlereof, and includes
all those enagedcpc~ in1 such' malnul~facture fo~r sale. This :includes ~bet~
mumufaucturerss w-heni m-er~chandisingl, com~iple t driv-es or sheaves, but
does not include the mlanlufacturingn of beclts or micrchiandising only
of the belt element of the Dr~ivec.


This Slbd~ivisio-n has been very severelys off'ected by the dep~res-
sion. This is evidecne~d by t hetendy decline lin annual sales, the
total vo-lumne ha~vingr declinedl from $3.28S1,000 in 1929 to $1.(15,000~ in
1932 or (jS.2 p"':eret andlc incrcasedd thlIereaterl to $1l.139,i000 in193
or 8.3 p'ercen~t. Total salesi for 1933 wTer~e app~roximatelyS 05 percent
belowv the 1000I level.
T Inn 1990 th -is ubivision empllloyed~c app)IOjnroimtely 346 persons, in-
elud~ina office employllee. A ft~r 1929 empksyme-Iln t. decli ned t o 25T1.
persons in 1932~, or1 e'T.5 percent. The. 193.3 emlll, oymentt wa~s approxi-
mnately 90: p~el~rcnt below the~ 1990 level.
No data are avanilab:le~ on averagn~e hourlr of labor or1 average wage~
rates for the Sulbliv-ision. TPhe effect~ of the wage and hour provi-
sions of thle S~upp~lemel:n tal Code eannnot, therefore, be deltecrminedl.
The wage prov,\isions for the Subdiviision, wh3i~ch is opecratinlg under
the Code of the Machinery anlrd Alliedl Produlcts Industry, provide
that employees cengagedt in plalnt. o~perations shall be paid- as follows:
(1) in cities of more thanr 50,000 population andr their immled~iate
vicinity, 40 cents per hour; (2) in cities of more than 10,000) but not
more than 50,000 population and their iidmedliate vicinityr, which

cities are not in the immllediate vicinity of a city of more than 50,000
popu"latio~n, 38 cents per hocur; (3) in cities of 10,000 population or
less anrd their immediate vicinity, which cities are not in the imme-
diate vicinity of a city of mrore than1 10,000 population, 36 cntslt per
hour, except that employees e~lrngnged in plant operal'tions in all lo-
calities in the staltes- of Virginia, North Carolina, Soulth Carolina,
Gerg,inl. Florilan, Tennes~see,AnhmMsispiArna,
Louis~ioal Texas, and Oklahoma.n shall be paid not less than 3-2 cents
per hour.
Whnen females do substantially the same work as males or replace
males, theyr shall receive the same payT. Howeverll no female em-
piloyee shall be paid less than 871/2 0~ of the pI~roper rate for t~he lo-
cality in which emnploy\edl.
Office boys and girls and a~pprenticecs shall be paid not less than
80%0 of the mininiuiin wag~e.
~Emplloy~ees other than those engagedrt in plant operaitionls shall re-
ceivec not less than $15.00 per wFeek.b
This Supplemelntal Code provcides~ that no peqrsotn under~l sixteen
years of age shall be employed~i in this Subdr'iv.isin.

Article I states the purposes of t~he Supplemtlental Code.
Article II ac~cura~tely d'efines~ specific terms applicable to thne Sub_>-
division as used in this Supp~lemiental Codett.
Article III provides for the adloption of the employmentll provi-
sions of the Code of Fair Completitio~n for th~e Ma~ch~inlery\ and Allied
Products Industr~y as approved by you on the tevelr~nteet day of
Malzrch, 1934, and as from time to time amendned.
Article IV provides~ for the adoption of Art~icles II[, VII, VIIIC,
and IXI of the Codelt of Fair Competition for the Manchineryy andr
Alliedl Products Inldustry in accordance with the condlitionI-s of this
Article gov~erningT their adoption.
Artle V p~rovide~s for the eta~~blishmlentt of the Co-de Aulthor~ity
and dlefine~s its power and dutie~s.
Article V7I provides for an accou-lnting~ system and mnethlod~s of cost
fidn and/o estimating."'b
Article VJII provides that no products shall be sold or exch~anged
belowT~ a reasonable cost when the Code Authority determines thnat
an emergency exists.
Article V III provides for methods of setting up, revising, and
filingr price lists andrt dis~oulnt- sheets and terms of sale andl payment.
Article IXw sets forth tradel. practices for the Sulbd-ivision.
Article X establishes that no provision of this SupplemecI nta Code
relating~ to pricingr a~nd ma:rketing~ shall apply to direct explo~t sales
or to any product dest ineld rlt imantely for ex~port.
Article XI. This Suppl.lemental Codte and all the provisions thereof
are expressly madc~e subject to the right of thte President in ac.cordc-
ance with subsection (b) of Section 10 of the Act, from time to
time to cancel or modify any7 order1, approvlc\; license?~, rule or regula-
tiojn issued under said Act. Pr~ovision is alse made that modi~ficat-
tionis may\ be submlitted by the Codte Aluthor~lity.
Article XII provides menc, ls for withdlraiwal of this Subtlivision
from the BasliC Code and its conlltinuanlle as an autonomous Code.

Article X\III establishes that no provision of thlis Supplemental
Code shall be so applied as to p~er~mit monopolies and monopolistic
practices or to eliinunate, oppressg or discriminiiate against small en-
Article XIZIV states the effective date of this Su~pplelementl Code.

Thec Assistant Deputy Admllinlistra'~tor in his final report to me
on said Suppjtll~lental Co~de having found as herein set forth and
on thle basis of all the p~~rrceedin gs in this mnt ter :
I find that:
(a),' Saidr~ Supplemeuntasl Code~ is well. des;ig~ned~ to promote the
polic.ies and purplo-es of Title I of the National Industr~ial Recover~y
Act, including removal of o~bstlructions to th~e free flow of interstate
and foreign. commerce wRhich tend to dimilinish the amount. thereof
andc will provide for the gclelnerl welfare by promoting the or~ganiza-
tion of indus~try for th~e pu1~,rpos of coopera:tive action amlong the
trade groups, by7 inducingr and maintailning unlitedi action of labor
anld management under adequa~lnte governmental ~anc~tions and super-
vision, by eliminating unfair competitive pranct~ices, by promnotingv
the fullest possible utilization of the present productive capnec-ity of
industries, by avoiding undue restriction of production exceptt as
may be t~empor~arily required),) by incl~reasin the consumptio~in of
indus-trin! and agricultural prouducts thrlough increa~fsing purchasing
powerl, by reducing and relieving unem-rploymnent, by improving
standards o~f labo,i~ and by otherwise rehabilitating~r industry.
(b) Said Subdivision normally emplloys' not mocre thanl 50,000 em-
pla~yees; and is not classified by me as a major indl~ustry.
(c) Thre Supplemntalt~ Code as approved complies in all I~repects
with the pertinenlt pr1ov-isio-ns of said Title of said Act, including
without limitatiorn Subsec~tion (a2) of Section 3, ~Subiection (a) olf
Section 7, and Subsection (b) of Secltion 10 th~ereof; and th~at. the
applicant association is an industrial usi;nc.iation, 1 trul oly rl~~ e ni reesenta t ive
of t~he aforesaid Subdivision; and that saidi associaion ipsn
ineqiuitab:le? Irestr~lictions on admliss~ionl to mlcr~lembeship therein.
(d) The Supplemental Code is not des~ignedl to and w\rill not per-
mit monopolies or monopor:list ic practices.
(e) The Supp~lemnental Code is not dlesigned~ to andt will not elimi-
nate or oppress'~ small enterprises and will not operate to dtiscr~imilnate
(f) Those e~Ingaged in other clteps of the economic p~rocs haveC~S nol' 1t
been deprived of the right to be hleardi prior to appr-oval of said2
Supplemental Codle.
For these rensonsf, thlerefor~e, I hanve alpproved thlis Supplement~al
Code, provided that certain provisiions relating to price publiention
are stayed, as stated in thle Or~der.
Respect fully,
Huran S. JOH NSON,
Aldmtin istrlator.




To effec~tuate the policy of Title I of the National Industrial R~e-
covery Act, the following pr1ovisions are etab~llih~e~d as a Supple-
mental Cod e for the M~ultiple V-Belt Drive Subdivision, l of the J13-
chinery and~ Allied Proluc~ts Indtustry, and, togertthpr' with the Cotde
of ]Fai~r Compe-~tit~ion for the Ma~chin~ery and A~llie~d Products Indus-
try, shall be the statlcndad of Fiair Comlpetition for this S-ubdivision,
and shall be binding on each employer therein.


"App1ZliCanit means the Mlultiple V-Belt Drive Asso.c~iation,, a trade
organization, all members of which are engaged in the mianlufacturee
an~d sale of the produlcts of the M~ult.ip~le V-Belt Drive Subivri\ision of
the Machiner~y and- Allied Products Industr~y.
"Inducstry means the Manchinery~y and Allied Produl~cts Indcustry,
as defined- inl its Code of Fair Compe~~ttition as appr~oved by thne Presi-
dent., and as suchl definition m~ay from time to timne be amnend'ed-.
"( ,Subdiv7i'.(0ion. mealr ns the M~ultipler V-Belt Drive Subdlivision of
the Masch~inery anzd A~llied Prodlucts Indusltry,' defined as -followFis:
"L Multiple V-BIelt Drie Subdivir ioi~ n '" means the manulllfacture for
sale of Mhiultiple V~-Belt Drives, a nd parts thereof, andp includer~s all
those engaged in such malnluat u facu for sa~le. TPhis include!~c s belt
manufacturerss wiPhen mercha~indising complete dr~ives or sheaves, but
does not inlcludle the manufacturing of belts or m~erc'handcising only
of the belt element of the D~rive.
Code "means the Codle of 1Fair Comnpettition for the Machinery
andl Allied Pr~odu~cts Industry, 'as approvedc~ by the Pres~ident Mvarch
1'7, 1934, and as from timne to time ame~1nded.
"(Person "' means a natural person, a partnelrshp, a corporation,
an assoc.iationl, a, trust, a tru tee, a trustee in banrllluptey,, a receiver
or other entity.
Em~ployer~ "' melans any person engaged in this Subdiviisin of the
Industryl, eith~er on his owrn behalf or as an emp~loyer of labor.
-" Employee means any one who is employed in; this Subd-ivision
byT any such employer.
The Alct means Title I of the National Indu~str~ial Recov~ery
"C The Pre~siciden)t "" means thle President of th~e United States.
"Admliinistrator" "means the Administrator for Indtustrial Re-

"C Basic G-cd Aullth~orit~ "" means the Code Authority7 for the M~a-
chiner~y andc Allied Produlctss Industry as constituted by the Code.
Code Authioritl "" means the Code Authority constituted for this
Subdivi\ision as pro~videdC by the Code and by thlis Supplemsental
C" Group Code Aut~ori-ty means t~he Clode Authority for any
group"~ or p~rdc~uc~t clas7silication wiit~hin this Subdivision, constituted
undr~rrl the ALuthority of Article V of thlis Sup>plemental Codle.
Method of P3ricin~g means net price lists andl terms of sale and
payment, or price lists with discount, sheets and terms of sa~le anid
p payment.
"' Publi7sh ") ment~s to mlak~e available to all inter~estedl parties.

The fol1\~lowng Articles of the Code, viz: Article III, Wnorking
Hours ";~' Article IV, Wag~es "; and ALrticle V, General Labor
Provisions are hereby madie a piar~t of this Code,
with the sm~e. effect as if they were written into th~is Supple mnental


Thle following~ Articles of thle Code, viz: Article. II, Defini-
tions5 Artic;~le ~ ( V ,- "Admrinitration. ", to the extent. that they shall bue
app'licablel to this Supp~llemlentatl Codie as such or as it may hereafter
be aIdm~inist~er~e d as an. auton~omlous Clode; and A~rticle V~III, Modifi-
cations a7nd T-erminatio~n ", are her~eby made a pa.rt of thlis Supple-
mnental Code, with the same e~ffcct, as if they were wTritten inlto th~is
Supp~lemental Code.
ARIncLE V AommirsTR T mo no
During the pecriod~ not to exceedPr siXtyT daysT following the effective
d'ate of this Supplemental Code, th~e code co~lnuittee of the Applicant
shall constitute a temuporariy C~ode Author~ity. This commiittee shall
consist of not less than. a and not mlore than 8 members, and the
Admlinistrator, in his discretion, mnayr appoint one additionall member
(without vote and without expense to this Subdivisjion).
(a) To perm"it representation of employers who ar~e not members
of Applic~ant, the A~lppicant shall, w~ithiln sixty days af-ter this Sup-
pli~emetal Code becomes effective, set up a permanent C~ode Author-
ityI to succeed~rl the temporar;lly Code Aut~hor~ity to adminillster and super-
vise and to facilitate th-e enfo~c~emnent of this Supplemental Code.
Such piermanennt Code Aiuthority shall be elected at a mert~inga called
for this pu~rpoise, to wrhichm all kEnown employers in this Sjubdivision
shall be inv\itedl by letter sent by register~edt ma~il, w~ith the right to
vojte either in petrso~n orl b~y proxy. This permanent Code Aut~hority
shall consist of not less than 3 and not mnore than 7 menber~s, and, in
additional thtereto, t~he retpresentative of the Administrator as re-
fe~lrred to in the pal~nbragrap above. Ofi the elective members of Per-
manent Code~ Aulthor~lity, oneI member mnay be ~chsen byv the em-
p~loyers (if any) wvho are not mermber~s of the Applicant, pr~ovided

such rePpresentation shall be desired by sulch employers. In th~e elee-
tion of the Irema~inling~ m1emb1ers~ of ]PermanenII~ t C~ode Authority, each
members ;of t-he Applicanrt shall have on~e vote, and~ a malrjority vote of
the mlembertlls of the Applicant shall elect. M~emb~ers of the Per-
monelcnt Code Author:,lity so ele''Cted shall hold office for terms prlo-
videdl for in the Permanent-- r,,, Code Authority Cronstitution and B3y-
Any emln'oyer' in this Sulbivision shall bc entlitled~l to vote at tle,
electionl of, and shareI' in thle ben~efitsi of, the Code~ Au~thor~itiy, and
par1ticipatec in any endeavol\rs~' of the Code Authority in the prepal,:ra-
tion of any revisions~ of, or additions or supptlemellnts to, this Stupp~le-
plental Code, by3 playing his proper pro rata share of ther cost of
admrlinister~ing, it, a-; detterrmin~ed~ by the Codet~ Authority.
Assessme;;.; nts. for defray13ing the expense of admrlinister~ing the Codie,
as dteter~mined by the Code Authority, shall be pro raltdc~ amrongr
employers at .iuch times and in suhll1 amountlfasas mlay be determinledi
by majority vor:te of the Employer?~ s in the Sulbdlivisionl enltitledl to
vFote; such. ass.;.C. nents1I~ to be pro rate-d upon the bas~is of gross sales
of the products of the Subdivision, f.o.b. cars at point of mlanufac-
ture or warehouse, for the preceding (.illcalenan year.
For the purpose of compul,~ting such ass;~essmentsnt each emp~l-loyer
shall1 SUbmit, uplon req~uect of the Codte Authority, an accurate s~tate-
m~ent cove~ring the sales madecl during the above stalted per~i:d1
Thle Codle Althor>it~y shall have no natlivitiesi not related to the
p~rovisions~ of this Supplemlenta~l Code or the Code~l. Any employer
shall be elig~ible: for membership; in thep Applicant Associaition,.
In ordertcl that the Code Aiu thoity shall, at all times-, be trulyi
represenltative of tihe Subd~iv~isionl and in other respilects comply with
the provisions of the Act, the Administrtrator may prescribe! such.
hear~ings as he m~ay deem. pr~operl; and, thereafter, if he wholl find
that 'the Code Authoriity is not truly rep~reselnttivec or does~ noct in
other re!spuc~ts IcomlyllJ with thie p~rovisions of the Act, may Ireuir~e
an approplriate mlodlifientio~n int the methtod of selection of thle Code
(b) ~Action by employers cocell~rningf and involving~ activ-ities le~dl-
ing to and crea~ting~ expense shall be by vote of the employers en-
titled to vote, as here~tinbeftdre prov>~ided in this A-rticle, who are
present in person or by plcroxy duly exicu~tedl and fEiledi with the Code
Authority, east col:nculrrlently in each of the two following~ methods:
1. By;7 one vote of ealchT employer.
2. By vote of employers weighr~ted on a basis of one vote for echl~l
$50i,!h0 of the atverage~ annual sales of the proidnelts of this Sub-
division, billed f.o.b. plant or warehouse, by each emlployecr, for thle
preceding two calentalr yea71'rs as r~epor~ted to th~e Code Authority to be
compu"ted at the beginning of ealch calendar year and to apply
throughout thie then current, year. Each empllloyerr sh~all be enititled
to at least one such~ vote. Such notion as specifiedl in above paragraph~
taken at a~ny meeting I3 of Employ1,~ ers' shall be by majority vote cast. and
com~putedl in e~ach of the tw~o metholcds hereinabove provided.
(c) Action by emplloyer~s concerning and involving ne~tivitiesi other
than those leading to and cr~eating expense and o~thler thlan the elec-
tionr of the permann t.~lt Code AulthlorityT shall be by a majority v~ote

of the emnployers entitled to vote; each such employer shall have one
(dl) F~or the purpose of Admninistering and facilitating the en-
for~cemnent of the provisio~ns of th~is Sup~plemental Code, Code Au-
thor~ity, by its duly authiorizedl repres~entatives; (who shall not be an
empllloyer or in the emnploy of any employer affected by this Supple-
mIenital Code), shall have access to~ any and all statistics, data and
information, filedX in accordanrce with the p~rovisions of the Codle
anld this Supplemtiental Code. All individual statistics, data a~nd
information of individual emiployers, as filed in necordance wit~h the
provisions of the Code and this Supplemental Codle, shall be kept
confidential, except with the consent of such employer pertaining
to hris own sitatistics~, andi providing tha~t nothing hlerein shall pre-
vent publientionl of getner~al summarizes~ of such statistics of' this

(e) Fior Admninistrativee pIurposes, employers may be groupedl by
Codep Aut~hority to bringr into worrlkingr association emnllployer ha~ing
coimmon interests and pr'ob!lemsi that are not common to all emi-
ploye'rs in this Subdivision. Each such group shall designate from
among its members a Grroup Code Authority, and may adopt. such
rules for the conduct of the business of the group as are not in-
consistent with the provisions of thlis Supplement~al Code and the
Code; provided, however, that provisions of this At~rticle V' shall
control the making of all examinations or audits and thle use to
be made of information so obtained with respect to any employer.
(f) Except as otherwise provided in this Supplement~al Code, th~e
Code Authority or a Group Code Authority shall havl\e power to hear
all maltter~s pertaining to the provisions of thlis Supplemental Code
which may be sulbmitte~d to it by any emnployer in it Group, having
relation to the employers in said Grroup, or any of theml, and to t._hat
enld, to the extent permitted byT the Act, may investigate and ascer-
tain the facts through such examination or audit as such Grroup Code
Authority may deem n~ece~ssary. All matters pertainine to a par-
ticular group shlall be referred m the first instance to the Group Code
Authority for that Group, if any has been established.
Any decision of the Giroup Code Authority shall be final unless
appeal is taken to the Code ~Authority or such decision involves mnat-
ters requrlingi l to be reported to the Code Authority~, in wThich case
pertinent information, papers and data in the possession of the Group>
Code Authority shall be turned over by it to the Code Authlority, and-
th~e Cod-e A~uthority shall pass on the merits of t.he case and mlake
final d-.ecision or report thereon. to the Basic Code Authlority or thle
(g) The Code Authority or a, Group Code Aut~horityr may act,
within its powers, on the affirmative vote of a majority of its elected
members; pIr~ovided thant anyr proposals receiving less than a majority
vote shall be subm~itted' upon the req~cuest of any memlberl of the Code
Authority or Group Code Authority havinrr jurisdiction to a vote of
all employers entitled to vote under this inpplemental Code or of
all the emnployers entitled to vote comprising the Group affected
respectivelyr, and the Code. Authlorityv or Group odAuhrt
having jurisdiction shazll a~ct as determined by the maoriy f h
number of votes so cast.

(h) If any employer in this Sulbdivision is also an empyloyecr in
any other Subdivision of the Industry, or in any other indus~tr~y,
the1 pr'ovisions of th~is Suppl~tlllementa Codle, and the julrisciction of the
Code Authorityv herecunderl shalll apply to and affect only that part
of his business anld proucl"t which is included in this Subdivision.
(i) An appeal from any action taken, or any rule or regulation
est ablishled affect in ~ the rih an mlyr or emnployee in this
Su~~bdivision, mnay be3 fltake to the ]Basic Cd uhrtyadtee
alfter to the Admil~l;tlnitrator.
(j) Noth~ing co-ntained~ in. this Supp-l1~lemnta Code shall consti-
tute the members of the Code Authority or any Group Code Ahuthor-
ity as par1tnlers for anly purpose. Nor shall any member of the Codie
Authority or of any Grozup Code Aluthrority be or blcomelnc liablle in
any maslnner to anyone for any act of any other member,~~1' officer, ncredn
or employee of the Code Authority or any Gro'ulp Code Authority
exrercising reasonable diligence in, ther conduct of his duties h~ere-
uIndter, nor be or become liable to nanyoner forl any action or ornis;-ion
to act under this Suppleemntal Code and thle Code, except for his
own willful misfeasance or non-fensanie.
(ks) TIhe Code Aut~ho.rity may appoint a trade pra~c.tie conunlittee
which shall meet, with the trade practice conunlllifcttee appointed undeltr
such other codes as may be rela~tedr to the Sulbdlivis~Ion for the purrpose
of formulllating-, fair tradeli p1rac.tices t~o govl\er~n the relationsh~lips be-
tween productionl andl distribution employers under this Code a~nd
under such others to the endl thati such fair tradle pr~atices mlay be
propos"'ed to the Admninistrator, l as amenllllntst to this Code and such
other codes.

Th CdeAuhoityall cause;( to be, furnlalll~ted an amounl~ting
system and melthtods of otfnigado siaiecpbeo s
by all employ)er~s of the Subdr~i vIisin. After such system and mlethod,(-s
have been formulllatedl full details concerning them shall be madlle
atvilable to all employers1. Therea:ft 1rI all employers shall determ;~i ne
andl/orr estimate ends~t- in neco.rdl~ance with the principles of such


WThen the Code Auithority c!eterm~line- thlat an emergcy'Clc~ exSts~ in
this Subrdivision and that the cause thereof is rle-tructive Inic~e-
utigsuch as to re~n:er inef~fctive or .--orioner~ly endangerSe the minln
tenanic~e of thle provisions of this Supplemerllnia Code, the Code Aui-
thoritly may clause to be determ1~inedll the lowes~st resonablell j cost of thle
product or products of this Subdivision, such rieterm;!inatioi n to be
subject to such not ic~e a nd her ri ng as the Al~hnini-tragtor mayn3 require.
The Adtministtrator may aprovt~te, deisapprov te orrlclr lc, moif the dte
mnination. Thereafter, drn h eido h mreci hl
be an unfair trade practice for any emp~loyetr of thle Subd!,ivi.-io~n to
sell or offer to .sell anyS plroduct or prlodlults of the ~Subllivisionl for
which the lowest reasonable ;ost hasi been dertermined~i at such prwiles
or upon uchi terms or cocndlitio~ns of sale that the buyer will pany less
therefore than the lowest reasonable cost of such~ prud~t ucts.

When it appears that conditions have changed, the Code Author-
ity, upon its own initiative or upon t~he request of any interested
party, shall cause the dletermination t~o be revriewred.
For thle purpose of gatheringc statistical dlat~a for the determination
or revision of a lowetst reasonable cost., the Adlministrator mayS re-
quire each emiployer to furnish sulch information concerning the cost
of mlanufac~tur~in g and selling as t~he Admlinistratorr shall deem neces-
sarly or proper for such~ purpose.

(a) If and when, the Code ALuthority determines tha~t in any branch
or group of the Subdivision it has been th~e gecnera~ll r~ecognized prac-
tice of at least two-thilrds of such branlch or group of the Subdivision
to sell a specified product on the basisi of net, price lists or price lisit.s
within discount. sheets and fixed terms of sale and payment, each em-
ploy~er shall, within ten days after notice of such dletermlination, file
with the proper Group Code Authlorit~y (or w-ith Code Aut.hor~it~y if
there is no Group Code AiuthorityT having jurisdiction) net. price lists
or price lists wlith discount shleets and terms of sale and paymlent,
individually prepared by him, showing his cur~renlt met~hodi of pric-
ing, and the Group Code Authoority or Cod-e AuthorityS shall immne-
diately publish and send copies thereof to the employers of this Sub-
div~ision co-operating under this Code, as described in Article: V (0),
and wcho manufacture like products. Revisions of t.he method of
pricing and terms of sale and payment mray be filed in like manner,
from time to time thereafter, with the proper Grroup Codle Authority
or Code Authority by any manufacturer of such products, each such
revision to biecomne op~erativ: e uponl the date specified therein, but
such revised method of pricing shall be filed with the pro~er Gr~oup
Code Author~ity or Code Authority 10 days in advance of operative
date. Copies thereof, with notice of the operative date specified,
shall imlmedliately be pulblish~ed and sent to all manufacturers of
such product co-operating ulnder this Supp~lemental C'ode, as d-escr~ibed
in. Article V (a), any of whom. may file, if he so dersires, revisions
of his melth~ods of pricing, which shall become eff'ec~tive upon t~he dlate
when the r~evised method of pricing first filed shanll go into effect.'
(b) If and when a Group Code Authority or Coder Auth~orit.y shlal
determine thant in any branch or gr;l oup of the Siubdlivision not. now
selling its pr>1oduc~ts on the basis o price lists, with or without dis-
count sheets, with fixed terms of sale and payment, thle distribution
or marketing conditions in said branch. or group ar~e the same as,
or similar to, the distribution or mal~rketinga conditions in a brannch
or group of the Subdivisionr where thne ls~e of p-rice lists, wit~h or
without discount sherets, is wsPell recognized, andl that. a system of
selling on net price lists, or price lists writh dliscount sheets and-
fixed terms of sale and payment, should be put into effect in such
branch or group, then each mannufacturerr of the product or products
of such branch or group shall, within twenty days after notice of
such determination, file with Gr~oup, Codle Authorit.y or Code Author-
ity~ net price lists or price lists with discount sheets w~ith fixed terms
of sale and payments, showing his method of pricing, and such
i See paragraph 2 of order approving tbts Code.

method of pricijng mnT ay b le theafter revisel -i~n the mannner herein-
above provided. cSuch methods of pr~icing and r~evisions thereocf
shall be -" publishedl and sent as describedt in Article VIII (a).
Provided th-at Group Code Authority or Code Authority shlall makre
no dletermination to place any product of thle Subdli\isionl (not now
on a price list basis) on a pricec list basis, as providedi~ in this palra-
grraph (b) of Article. VIII, unless two-thirds of ther employers co-
operaotingr under this Supplemental Code as decrc1ibedc in Artic:le V
(a), who are aLt thant. time engagedci in mnufacturinglrlO such product,
shall affirma~t ively consent thant such cne~term1~iln tionl be! madcl.
(c) N;o emnploycr shall sell d7irecctly or indlirec.tly, by any meanns
w~hats~ever, any pro''duc't of thlij Subdivision at a price or at lisc~oun!ts
or on terms of salet andl payment ditf~erent froml those provided in his
own cuirr1ent method of prlicing~ and terms of sale and payment, as
coerd y hepovisions ofi this Article VIII and pr~oceed~~ings~ -there-
un\rdb tener ; pro-ide~d, however, that -any employer upon notice to thre
!Code .AutholrlityS mlay adopt as his ownn price as set fourth in, such
notice, a lower price filed lby another employer of this Subdivision.
Sjuchl adopted pr"ice o r ithdraw~~al or upw-ardc revision o~f samel :shall
be publlliShedC and senlt." as dlescribedl in Artic.le VIII (a) .for rev-\i-
sions. Suc~h adloption shall b~ec-cmelf c:utomai~.tica~lly void upon tdhe
w-ithdrawa~l- or revision upward o~f the -price adloptedl.
(d) Irf and wmhen Code Authorityt l shall de~terlmine~ thant it is ulnd~e-
siera~ble to continue thle fi'linlg of nlet price lists and/or pr1ice~ lists with
dliscount. sheets and/or tixedl terms of sale and payment on any3 p~rod-
uct in respect of which such filing~ hasi` theretoforle been reqiuilred, suih
filinga shalll cease and the prov-isions~ of this Ar~tic~le shlnl not apply
to ~suchi prod.uct unless; and until Code Authocrity shall again dleter-
m1ine tha~t. such filing~r be madell.

Au~rctsL ~IX-CTaurmn PRA\C.TICES
Each of th~e following acts or practices is deemed to be inimical
to th~e best interests of the Subdi~iivisio and of the publ~lic, aid each
is, theretforre, he~reby? S dlrl:eclared to be, a~nd to c~onstit~te, an unfair
mneth~od of compet~tiion, viz:
1. -JrErinccurae ,-11!,ldr edi1sig----No empiloyerti shall publish adv~er-tising
(whflether1 pr'intted, radcio, display1! or of any other nature), which is
misleadling -Or inac~cu~rate in any mnater~ial p~atic~ular, nor shall any
emp:loyer in anyl w8ay misrree>1sent ;an~y g~ods ('including hu~t w\iith-
out limitation its uise, tlnrad-markf grade, qualIit~y, qcuantity, origin,
size substance, charlacte r,, nature, finishs, material, content. or pTrep-
aration) or credit terms, values, policies, services, oar the Inatur~e or
form of the bu-siness condtucited~.
2. Falsre B~1il~lng---No emlployerl shaI1ll knoingly wit~hho:ldl from
or nsrt n nyquoatonor nvic any statements thait makes i~t
inarccurate i any malterial panrticular.
3. Inaccu~rate L;abelling.-NTo employees~ shall b~rand~ or ~ark or
packl any goods in anIy manner w-hich i~s intended to or does deceive
or mislead~ purchasers witl rTespect to the brand,grade1, q~ualit.~y,
quantity, orligin, size, substance, char~acter, nature, finish, material,
content ~or prepa~ratio~n -of such goodcs.
4., Defa~mation.c-NPio employer shall defame a competitors bIy false~ly
impu"ting to himl dishonrora~ble conduct, inability to perform. con-

tracts, questionable credit standing, or by other false representation,
or byT falsely disparanging the grade or quality of his goods.
5. Destrulcti'e~ Price Cuttf;in.--No employer shall indulge in de-
structive price cutting.
6. Threats71 of LawL( Suitf.-No em~ployer shall p~ublishl or circulate
uinjust~ifiedf or unwa~.:rrasnted~ thir~eas of legal proceedlings which tenid
to or have the effect or hanrassing compe~titor~s or intimidating their

7. Secret Rebates.--No empl~loyer1 shall siec~retlyr offcer or make anly
payment or allowance of a; rebate, r~efundl, commission, credit, un-
earned discount orI exce~ss allowanlce, w\hethler in the formn of mocney
or othlerw~ise, nor shall anyJ employers se~cr1etly ofer or extendl to,
any customelcr any special service or privcilege not. extendedl to all
Cu1Stomlers~ of the same class, for the purpose of intinencing a sale.
8. B,;-ibi"U Ei lol7/yees.--No employl)er shall givec, permit. to be given,
or offer to give, anything of value for the purpose of influencing or
r~ewarding the action of any employee, agent, or r~epresellntaive of
alnother1 in relation to the business of the employer of such employee,
tithe prilc~ip~al of sulch agenrt or the .represented parIty, w~ithout the
knowledge of slc~h employer, principal or party. Thsprovision
shall not be construed to prohibit free and general distribution of
articles commonly used for adv\er~tising except so far ass suchl articles
are actually used~t for commercial br~ib~ery as hereinabove dlefinedr.
9. Indu~c~ing~ Breach of Emisting Cotrilactfs.-Nh o employer shall
w~ilfully induce or attemp~lt to induce the brleach of existing com-
mercial contracts between, competitors and their customers byr an~y
false or dlececpti~ve menlcl-, or inter~fere, with or obstruct t~he performl-
ance of any such contractual duties or services by any such mleans,
weith~ the purpose and effect of hamlpering, injuring or emnbarranssing
competitors in. their business.
10. Coerc!ion,.--No employer shall require that the purchase, or
lease! of any goods he a pr1erequrisite to the purchase or lease of any
other ~oods~.
11. Islalltrctcion Closts.--No employer shall conitrnet. to install any
equipment covered by this Surbdivisio n without char~lging for the cost
thereof. This provision shall not prevent any employIer fur~nishing
supervisory or millwright service, provided such service is charged
for at the prVa'\ilingbr rates for suceh class of work, plus living and
traveling expenses, withz no guaranteed of total maximum c~har~ge.
The provisions of this par~agrap sh llntplyoMlileV
BeltDries oldin onnctin wthor as a part of, a contract for
driving andl/or drivem.n mchiner~y, the termls of sale of which call for
er~ect ion, or installtioln.
12. Contract Changi~ies.-N employer shall change n contract of
purchase and sale a7fter it has been executed~ with a purchaser,, by
molldifyilgT or extending th~e walrranty given inl such sales contract
as to defects in the product covered or the liability of t~he emlployer
thler Ieu under.
13.~~~~~ raeSre.Noepyer shall pr~oculre, othlerwise thanI
with the cornsent of anoth~er empoeaynfr toncneig
the business of such employer wlhich1 is p~rO~erlyl regardedl by such
employer as a trade secret or conf~idential w~ithlin his or its organiza-

14. Discowata.--No emzpl)yer shall sell on the basis of a dollar
volume discount. This shall not prohibit quoc.ting~ of qua~ntit~y dis-
counts on published price list.
15. Consignmzent.-No emnployer~ shall econ-~ign anly product to any
one or any~ class of trade, ecs~e~t, in tradc~ingb areas wher1e existing com-
peting stocks are now maintained by an employer; provided how-
eiver, that the following p:racitites are (a) The tlranlsfer
of anr exiating~- cons1.ignmentt: l from one elcnignee~C to another co(n-signlee
in, the same trad~'in~g area; (b) the conversion of a b~ona fide sale inrto
a consignmentr~ for the purp'lose of prtc~tt~ing the seller when the pur-
chnaser is finanllcially embarral'1~e; se; (c) the conduc~ting~ of field tesits
or demrl~ons~trations of newly des~igned products or of a new applica-
tion of a product by any emloyer~S'`', without compensation.
16. Guaramnty.--No empllloyer shall guaranty any prodnellct bey3ond
the regular guaranty as sp-ec~ifiedc in the terms and condrtitionsl- of sale
on file with the Code Authority and in effect at the time of the sale
of such1 product; this does not apply to performalncle or capacity
ARTICLE X-Racs[E~ won ExcourITi

The p~rov~isio.n- l of this Code? concerningr sales shall not apply to
direct export sales of anly product, or to sales of any product destined
ultimately) for export. The term export shall include all ship-
ments to all places without the several states of thie U~nitedl States
and the Distrilct of Columbia; provided, howPe~ver, that no shipment
to any territory or possession of thne United States shall be con-
sidered~ as export when~ any emp~loye\r is e-ngaged~c in thre 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 modify anly order, approval, licenses, rule
or regulantionl issued under Title l of the Act.
(b) As study of t~he needs of thle Subdivision is continued after
the effect ivet date, amendments,~rlt.; additions or revisions to this Supple-
mlenta~l Code may be proposed, which, upon be~ing assented to in
writing bay two-thirds vote of employers cooper~lating under this Sup-
plemental Code, shall be in full force and effect from and after ap-
proval thereof by the Pres~id'ent.

Upon thirty days notice to thle Basic Code Authority alnd to the
Administrator, this Subd'ivi-io~n may, upon the concurring affirma-
tive vote of employers within the iail Sub l~i\ision Entlitled~ to eas~t
two-thirdsl or more of all th~e votes that light be cast by all em-
ploy~ers within the Sublldivision entitledi to vote thlereonI, withdrawm
from the jur~isdilcion of the Basic Code Authority. The eligibility
of voters~ andc the method and effct of such voting shall be in ac-
cor~dance w~i'th the pr~ovi ioni of ~Article V hereof. APLfter and in the
event such withdrawal is accomnplished~t this Supplemental Codett, to-
get~her withn thne pr~ovisions of the Codet, shall become andt be the sole


14 3 1262 08495 2547

codet governing this Subdivision, and the Code Authority shall, for
this Slbdlivision, become and be the sole Code Authority and shall
performn all the functions with respect thereto.

AppIlic~ant impo~ses anid sha~ll impose no inequiitable restrictions
on mnemlberhlipp ther~ein. The Sulpplemental Code presented by it
is not d~esignedl to promote monopoly, and shall not be so construed
or appliedl as to oppress or elimlinate small enterprises or discriminate
against theml, and is delsignedl to ellectuate the policy of the act.

This Supplementalt l Code shall become effective and binding on all
employers inl the Subdivisionl on the eleventh day after its approval.
App~roved C~ode No. 34-S'-uplemlenie't No. 30.
Re~gistr~y No. 13y'0-0).