NATIONAL RECOVERY ADMIINIST~RATCION
CODE OF FAIR COMaPETITION
USED M~ACHINERY AND
UNIV. OF FL LIB.
U.S. DE P ~fF! -
GOVERNMENT PRINTING OFFICE
For sale by the 8a~rinendent of Doumnts, Washington, D. C. - Pri~ce 5 enta
Registry No. 1399--29
Approved Code No. 5412
AS APPROVED ON JANUARY 10, 1935
we n)oU o~us m
This publication is for sale by thle Superintendent of Documents, Government
Printing Offlee, Washington, D). C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF` COMMERCE
Altlanta, Ga.: 504 Post Office Building.
Birminghiam, Ala.: 257 Federal B~uilding.
Boston, Mass. : 1801~ Custombouse.
Buffalo, ]N. Y.: Chamber of Commerce Building.
Charleston3, S. C.: iChamnber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Clevel~llan. Ohio: Chamber of Co~mmer~ce.
Dallas, Tex.: Chlamber~I of Commerce Building.
Detroit, M~ichl.: 801 First National Bank Building.
Houston-l, Tex.: Chambnler of Commerce Building.
Tudlianaplolis, Ind.: Chamtber of Commerce Building.
Jac~ksolnville~, Fla.: Chamber of Commerce Building.
K~ansas City\, Mlo.: 1028 1Baltimore Avenue.
LosAnguele-s, Calif.: '116.3 South Broadway.
Louisville. KZY.: 408 Ft-der:11 Building.
Mempl~his. Teon..: 229 Federal Buildling~.
M1iunneapolis, Mljinn.: 213 Fedelral :Build~ing.
New Orleanls, La.: R~oom 25-A, Custombhouse.
Newr Yor~k N. Y.: 784 Cus3tombouse.
Norfolk, V'a.: 406 East Plumie Street.
Philacielph~lin. Pa.: 422 Commercial TCrust Building.
Pittsbur1gh, Pa.: Chamber of Commerce Building.
Portlandl Oreg.: 215 NewF Post Office Building.
St. Lousis, Mo.: 506 Olive Street.
San F1ranelsco, Calif.: 310 Custombouse.
Seattle, Wlash.: 8093 Federall Office Buildling.
Approved Code No. 542
CODE OFi FiAIR COMPETITION
USED) MACHIN[[LERY AND EQUIPMENTT
As Approved on Januwary 10, 1935
APPROVED CODE31 OF FAIR COM~PE~TITIION FOR T1E~ USED SIACHI-NERY AND
EQUIPMrENT DISTI:BT"I-1TNG TRADE
An a~plicantion having been duly made pursuant to and in full
com7-plianlce with the provYisions of Title I of the Nat~ional Indul~str~ia
Recovery Act, approved June 16, 1!1033, for approval of a Code of
F~air Competition for the Userl Mall~llchiey andX Equipmlent D~istribut-
ing T~rade, and hea rings h having been. duly held thereon anld the an-
nexed~i report on said Code, containing findiings with respect thereto,
having been madel and directed to the ]Presillient:
NOW~~, 'THI~EllREFOE on behalf of thle Pre ident.rlt of the Unite~d
SCtates, the Naltio~nal Industrial Reoovery Boanrd, pursualnlt to au-
thority vested in it by Executive Order-ls of the President, inlc.ludling
Exc~cutive O.!rde No. Gobs, dated. SeptemberC' 1 27, 193-1, and otherwise;
does hereby incorporal~te by reference aid annexedi report and does
find thast said Codle complies in all res~pctc~s with the pertinent pro-
visions and wsiill prom'"ote the policy and purp'loses of said Title o~f said
Act; and does hlereb~y order that said Code of Fair Comnpetition be
and it is hereby apprlovedl.
NATIONAL IND)USTRIAL RECOV\ERY BOARD,
By W. A. HARRIMAN,1 rldain2iist'rativ e O7f)Ecer.
HaRRY C. CARR,
Actinlg Division Admlrlinistr ator.
W~asISHINTU.N ? D. C.,
1 I.ISG10"---14GG-77c 3
REPORT TO THE PRESIDENT
ThFe Whi1te Housge.
rSIR: TIllS is a report. on the Code of Fair Oompetdition for the
Used Mlachineryr and Equipment. Distributing Trade of the United
States, as revised after a Public Hearing conducted in Warshington
on the 31st day of July, 19341, in accordance with the provisions of
the National Indlustrial Recovery~ Act.
PRO\'ISIONS AS TO HOURS AND WAGES
AL maxnimum11 of 4-0 h~ours a week and 8i hours a day is provride~d byv
t~he Codle, with an additional 8 hours per wee~k for 6 weeks in any
26-week period to enlr for peaki demands. One and a half times the
regular rante is paid for all hours in excess of 40 hours a week or 8
hours a day and on Sundayrs and legal holidays. No hour limlita-
tion is placed~ on emnployetes engaged in emergency maintenance and
emergency r~epair w~orkJ or on a~ny specially skiilled emnployee in
emergencies which cannot, be met by the emnploymnent of additional
men, but thle overtime rate will apply. Watchmnen are p~ermnitted
54 hours a w~eek. Executives and managers receiving $35 a week or
more and outside salesmen are exemnpted from the hour limuitations.
A mninimnum wange of not. less than 40O cents an hour is provided for
all emp~loyee~s, exce~t. those on olffice staff's w~ho will be pa3id at a rate
of not less than $15 n week, office boys and girls receiving a miini-
m~um of 80' per cent of the. above rate.
No person under 16; years of age will be employed and no one. un-
der 18 yrears of age w.ill be engraged in hazardous occupations.
ECONOMIC: EFFECT OF CODE:
This Tradet~ which dlistribiutes used mach~~inery and equipment not
covered~ by appr'oved Codles, is comliposedl of 876 concerns, emuploying
3,80j0 pe~rsons. Th~e total invested capital amiounts to approximlately
$16,000i,000~ and th~e volumie of sales in 1933 was $18,000,000~. The
40 hour wreeki providedl by the Codce,, coupled with increased activities
in the Trade as business imprlov-essol euti usata gain
The Depu'ty' Adm~inistra~tor in hiis final report to the National In-
dustrial Recovery~ Bolardt on said~ Code havirw found as wherein set
fo-rth andl on the basis of all the proceedings in this maxtter:
I~t finds thnat:
(a) Said Code is we1~ll ctrsignedl~ to promote thle porlicies and p~ur-
proses of Title I of th~e Natio~nal Industrial Rcol.veryl Act, inlclulin~g
r~emloval of obsl~trc~ction s to the free iflow of interstate and f~re~ign
cunlcomm~erc whichn tcend~ to diminish the amountt thereoff andl will pro-
v~ide for the general weclfar~e by promotion the organization of in-
dulstry_ for thepros fcoprtve ton montrd ru,
byinucngan mintinfingl~' united action of labor anld malnage'T-
ment ulndecr aldeq~uate govermnentall -;anctions andl -ulpern\sion, by
eliminating unlfair' compe~titive practil.ces b~y promoting~ the fullest
possible utilization of the presenc~lt productive capnc~it~y of industries,
by avoiding undue rest~ic~tionI of p~roduclltionlr exceptt as mnay be
temporarily requ~ired),l) by increasning~ the consumption of inllustrial
and111'ii~l. a r Iiculltura'~l products through,- 11inecn~lreain puca in owe~r,
reduingand relieving unemploymelint, by improving standards o
labor, and by~ otherwise'jcL rehablilitating indlrstry.'
(b) Said Tradoc normally emp~loy~s not more than 50,000 em~-
ployeecs; andu is notl c~lla~slifid bJy Ilthe Na~tIliona Industrl L ReCovery.!.13
]Board as a major industry.
(c) The Code as approved complies in all respects with the per-
tinent, provisions of said Title of said Acti, includlingl without limi-
tation sutbsection (a) of section 3, subsection (a) of section 7, and
subs~ection (b) of section 10 thereof ; and that the applicant associaz-
tion is a trade association truly representative of the aforesaid
trade; and that said assocciation imposes no inequitable restrictions
on admission to membership therein.
(d) The Code is not desig~ned t~o and will not permit monopolies
or monopolistic piractices.~
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will. not operate to discriminate against them.
(f)Those engaged in other isteps~ of the economic process have
not bendeprived of the right to be heard prior to approval of
For these reasons, this Code has been approv-ed by the National
Industrial Recovery Board.
For the National Inldustrial RecovoeryT Board:
W~. A. HJARRI1MAN,
JANUARY9n 10, 1935.
CODE OF FAIR COMPETITION FOR THE USED MLACrHIN-
ERY AND EQUIPhl[ENT DISTRIBUTING TRADE
To effeet~uate the policies of Title I of t~he National Industrial
Recov-ery At, the followinga provisions are established as a Code
of Fair Completition for the Usedl 1\achineryr and Equipmnent Dis-
tr~ibuting Tra~de, and shall be the standards of fair competition for
this Tradec and shlall be binding upon every members t~hereof.
AIRTICLE II--D~EFIN; ITIONS
SEC'TION. 1. (8)j Thle term Tradte as used herein includes the
buying andt elling, renting, andlr or th~ dlealing in, any repairingr,
overhauling, andt or renovatingr connected therew~ithi done by those so
buying and3 sellingr, renltin, anod or deaoling" in, usedl machiner~y andi
equipment corning~ within thle follow-ing clanssifcnicatins except as
provided in Section 1 (.b) of th~is Article.
UTsed Clhemical lunchiniery
Usedl Rubber Worvking lunch~ineryu
UCsedl Food and Bevera~ge Machineryv
Usedl Elec~trical Mlachineryl
Used Pow~er Generating Equipmernt
U~sedl Aletal W\orking: 1\achineryv
Used W~ood W~or~kingr 1\achinery
Used~ 1Iining Ma~chinery~
Usedl IHilroad~ Rlunchinery! anii- Equlipmentt
(.b) Thi., Coder is niot in~tendled to cvrr\'i ther classes of used mnachin-
ery'3 and'cl or euipment whlich are already covered by Codes of Fair
C'ompettitio heeuoe prv nor~ to apply' to manufacturers
in t~he b~uy~ing andl sellingF, re~bullildin, over~haulin g or repa~iring
andl or renting of pr~odulc~ts of thcir ow~n malnlufueture;; nor to manu-
factur~ers in thle selling or. renting of malchinerr y and/~or equipment
taknl~ in tradn~e inl partl' p~ayment onl tle pulrchlase of new machinlery
or equipment, or repossesse d~cl b~eenuse of non-fultillmient of conditions
(C) Thec termil Allember of thle Tradle' hlln inlclude those engagedl
in the "' Tradc-e "', whethler as principals~. or agents, or' br~oker~s anld or
SEc~ries L'. Th]e tein m Empl'l loyee a~ used her~ein includles any-
one e~ngagdctt inl th~is Trade.1 recl-eiving- compensatio~~~tn for his services
therein irriesplective of the na~tur~e or~ methodl of paymentil of such
compei)llnfation ecepC~t a m~emiber oif the Tradec.
S~ECTIoN 3. Tlhe (Pr'Ill Emplloyer ? as used~ hlerein inlclud~es anly-
one by! w-hom any wlh emplloy~ee is c~omlpen.;~ted or~ employed.
SEcTION --. The Prlnl "AS5000l:ntln R; n~Ilse Iirein shanll Inllet til8
Natioinal A~ssociatio n of UTsel Rlunchinery~ andc Eqluipment D~neales.
SEenosN 5. TheB term ]Brokers "~: andl/or COnunlli-sionl AgenS~lts
as used hcreini inlcludec s any3onel whlo acts as a goc-betweenc~l or inter-
medliary in arran~ging~ or maklinlg purchalses or SaleCs of used.~ ma1-
chinery on behanlf of ortherl per~sons, regardl~les s of w\hetherr said serv-
ices are rendered~ct for a fixed feeC or on1 a co~mmissionI be11is.
SECTIO, N (j. Tile (Pl'lm.c "]Presidernt ", L"Acit ", andc "( Boarld ", as u~sed~
herein shall meanl respectively th~e PEresid~ent of the U~nitedl States;
the Naltiolnal Industtrial Rc~covcry At~ct; and the( Nationlal Indcustrial
SEcTrION 7. The term "C thle Code c~" mea ns1- thlis Code anrd all sched~-
ules anlnexed' there~tot and all amndmentslMn~ the~reoc f thereafter ap-
pr'ovedc' by the Booard.
SEC'TIO.N 8. The term the United States means and includes
all of the te~rritor~y of the U~nited~ States of Amelr~ica~ includling its
Territo r~ies and possessions.
SECTION 9. Tflhe term "Apprentice as used herein sh~all mean a
per~sonl of at least sixteen (16) years of age who is e~ngag1~ed in. learn-
ing a trade or occupation in the Trade under an indetnturec or co-n-
tract covering the terms of sicl ch engragement.
AnnersLI III -Houns
Sr:~noN 1. Nio employee shall be permitted to work in excess of
forty (40) hours in any one week or eight (8) hours in any t wenlty-
four ("4) hour period, exl.cept as herein othlerwise expressly p~ro-
SECTlco 2. The provisions of this Article shall not apply to
persons1 employed in a managerial, executives, or su~perv\isorly capancit~y
who are panid thirtyr-five (35) dollars per week or more, or to out-
Seemrrs 3. The maxsimulm hours fired in Section 1 hereof shall not
apply to any employee on emergency maintenance or ejmergency
repair work involving breakdowns or protection of life or property,
or in emergencies occasioned by the necessity for the services of any
spccialtly skilled employee which cannot be cared for by the em-
ploymenclt, of add'itio!nal mnen; but in any such special case nlot less
thian one and one-half (11%) times his regular rate shall be paid
to each emprloyece for all time wslorked in exicess of the mnaximumln
hours pr~ov-ided in Sectionl 1. hereof.
SEC.TIONS 4. Thle maximum hours fixed- in Section 1 hlereof shall not
apply' for six (6) weeks in any tw~en ty'-six (26) week period during
whih oertme hal no exeedeight (8) hocurs in any one (1)
w~eek. In any such. case not less thnan one and one-half (11%) timels
his regular rate shall be paid to each employee for all time workedl
in excess of eight (8) hours in any twenty-four (24) hrour per~iodl or
inl excess of forty (40) hours in any seven (7) day p~eriodl.
SEenoxN 5. Except. to watchmnen, not less than one and one-hanlf
(1%~) times the regular rates shall be paid for all work performed
on Sundayltls and legal holidays.
SECTIONr 6. All hours wor~kedl in excess of t~he maximas provP~ided~ in
Section 1 of this Article shall be repor~ted~ to the Code Authority,
and such information shall be~ m~ade available to the Board in such
form and detail as it mlay request.
SECTION 7. .Power plant engineers and powTer plant firemen may
be permitted to work not in excess of fortyv-five (45) hours per week,
provided thiat not less than one and one half (14%) times their reg-
ular rate shall be paid to such employees for all time wvorkedl in
excess of the maximum hours pr~ovided in Section 1 hereof.
SECION 8. Wat~chmeen may~ be permitted to work; not. in excess of
fifty-four (54) hours per week.
SECTION 9. No employer shall permit any employee to wrorkE for
any time, which, when totaled wit~h that already per~formed for
another emlployer or empyloyvers, exceedls the maximum permitted
SECTION 10. No employee shall be per~mit.ted to wsor~k more than
six (6) dayvs in any seven (7) day period.
Ana oza IVWaaoss
SECTION 1. ~NO 016nical or office employee shall be paid less than
at the rate of fifteenI (15) dollars per week and no other employee
shall be p~aid less than at the r~ate of fortyr (40) cents per hour, ex-
cept as herein other~ise expre~ssly prov-ided.
S~ECTIION 2. Office boys and girls may be paid not less than eigrhty
(80) per cent of the minimum wagcre provided in Section 1 of this
Article, but the total number of otlice, boys and girls shall not ex-
ceed five (5) per cent of the total number of otlice or clerical em-
ploye'es, provided that each employer may employs one such office
boy or girl.
SIECTION 3. T'his Artile estanblishes~ a minimum rate of pay', re-
gardl~le~s of w~hetherl an emnployee is compensatedc on a2 timle-rrate,
piece-wrorkl or other bas~is.
SECTION 4. A nprsonn whose. earning e~npa~cityS is limited because of
a~ge, physical or mental hland~icap, or other infirmnity,~ may be emn-
p~lo~ved on light work at a. wage below the m-innnum established by
this5 Code, if the employer obtains from the Stat~e authorityy! desigr-
nated, by the United States Departm~ent of Labor, a certificate au-
thorizing such person' s emlployment at such wa~ges and for such
hfoursr as shall be stat~ed in the certificate. Such aut~hor~ity shall be
guided' by the instructions of the United Sta~tes Department of Labor
in issuing certifica~tes to such perso~ns. Each employer shall file
monthly with the CoEde Authority a list. of all such per~so~ns enl-
ployedl by himn, showing the w~age~s paid to, and the maximum hours
of w'ork for suIch emlploy~ee.
SEC.TION 5. Fiem~ale employees perfor~mi ng~ substantially the samne
work as male employees shall receive the same rate of pay as mlale
emiplo~y ees; and whe~re they displace men, th~ey shall receive the same
rate o earnings as the m~en they displace. The Code Authority
shall within ninety (90) dlays after the effective dlate of this Codie
file with the Boar~d a dlesjcription of all occupations in the Trade in
which both mecn and women. are emp~loyed.
S~ECTION 6. The minimum. wnge fixed in this Article shall not ap-
ply to the employment of ap~pretntices undecr the rules and regulal-
tions stipulated ini Exec~utive Order No. 6750)--C, d~atedl June 27, 19;34.
TChe number of apprentices shall not exc~eed a ratio of one (1) ap-
prenitice to each ten (10) jour~neymann employees in the particular
tra~de or occupaRtio~n for which thte apprel~cntice is being tr~ained.
SEC"TTON 7. Equitable~ adjustments shall be popl aei l
wages a~ndl salais Not later than nine~tygo (90) dalys laftr the eff
tives da~te of thisc Codel, ech-cl member~cl of the Trad~e shall report to thec
Codc Aulthority the adljuitllstmns made prior to or suibsequient to the
aIpprovanl of this Ciodc. Such~ information. shall be available to th
Board on its Irequelst. I~n no ea;'se shall the w;!ges~ or salary of any
employee he recduced.
iEC'TION 8. 11118 Alrticle establishes rate-s of pay wochich shall be
e~xempt flromn any fines, chargEcs, and/or dedulctiorns by the employecr.
Sfl:.I-:cno 9. Anl employer'C' shall manke payment of all wagebr s d~ue in
lawful enrlrency~ or bynegotinblle (_heck th~ereafter,, pvaynle on de-
mlanld. These~ wagLes shall be exemnpt from~ any pay13ments for pen-
.Ltons~, insu~r;nee~ or sickr bene~fit o~therl than those voluntarily paid~ by
the waoge earne.rs, or requlired by State laws. Wr~cages shanll be paidl
at least at the~ endlc of everIy two-w~eek periodl, and( salaries at least at
tlhe end~ of every month. No empllloyer shlln w~it~hho~ld wage~s. The
emnployer' or his agenlts shalll accept no rebt~l~es directly or indlirectly
on ~ r suhwsnr ieayhn of value or extendc~ favors to any
person for thle purposes of influpnc~ingr ra~tes of w~ages or the wocrking
condltitions of his employees.
Sr.:cnoI(S 10. Ailn. em~ploye~e shall be paid at least his regular rate~ of
pay' for all timle required to be spent at the pluelt of employment in
connection with. t.h~e discharge of duties of such employment.
SECTION 11. NO provisions of this Article shall modify established
pra:ct ices or privileges~ as to compe~rninatedl vacation Ipe~rc I~\riods fcleaves~l of
absnceor temp~~ora;ry absencese from work~l heretc-fore rneem
SECTION 12. Ill determine~ lng his c1ne ifienation und~:er this Code,
echcl employee1 shall be entit led. to claims th1e benefit of the classifica-
tion of ocnp(-ltirnn existing on June 16, 1933.
ARnTIcLE 7- GENERAL. 1;ABOR IPoRl\.is]NS~
SEenoN, 1. No p'erson unde~tr sixteen1 (16) ;years of age shall be
employed in this Trradle, nor anyone undr1~t 1 eighteen (18s) yeairs of
ag at operations or wealp;utions hazardous in natulre or dletr~imental
to health~. Thle Code ~Auth~ority shall submit to the Board for ap-
p~revall within ninetty (90) (lays of the effective (fate of this Code a
litof such operaltionsl or occupa~tions.. In any Stalte an emloyer~lcl
shalll be dE''leeme to hatve compliedi~c with this p~rroision as to age if
he shall have on file a certificnte or permit duly simwd~ by the A\u-
thlority' in such State emlpowe-credl to i.-uet emprloymentlll~ or aglecertifi-
cates or permits show~ingthat th~e emp~loyer e is of thre Irequirel age.
SECTION 2. (a.) Em1ployees~ shall1 have the r~ight. to organize anod
bargai n co~ll~c~ti velly thlolroug repel'tsenltta\t~iv of the~ir. own c~ho inrm
andl shall be free fl~rom the inter~fere~cncec, r~estrainit., or coercion of em-
players of lab~or, or thcir agents, in the designat~ion of such re~pre-
sentativ-es, orl in se~lf-orga~nlinizaton or in other cnclcer~ted activities,
for t-he purpo-ce of collective barguaining or other mlutua~l aid or pr~o-
(b) No employee and no oner seekling em~p~"- loyment shall be re-
quired as a condlitioni of employmntcn to join any colpanyl union orI
to refrain froum joining, o~rganizing, or assistinlg a labor organization
of his own chooslngr.
(c) Employ~ers shall comply with the maximuum hours of labor,
minimum rates of pay, and other conditions of employment ap-
proved or prescribedl by thle Pre~sident.
SECTION 3. NJO prov'ision in this Code shall supersede any Stat~e or
Federall Laws imiposing mnore stringent requirements on emnployers
regulatinlg the age~ of employees, wrages, hours of labor, or health,
fire pIlrotection, or general working conditions thann under this C~ode.
SECTION 4. Employers shall not reclassify. employees or duties of
occupations performlled, or engnee in any other subterfuo-e so as to
defeat the purposes or pr1ovisions of the' Act or of this Code.
SECTION 5. No employee shanll ~e dlisnisse~d or demoted by reason
of mankingi a comp~lalint or givingr evidence with respect to an al-
leged violation of this Code.
S~ECTION 6. Every emplllover shanll maike reasonable provision for
the safety and health of hlis empl-loyees at the place and dluringr the
hours of their emrploymenlclt. Stalrndards~ forl safety and health shall
be submitted by t~he Codle Authlor~ity to thle B~oardi for appr~oval
w~ithlin six (6) months after thle eiffctive date of this Co-de.
SECTION. 7. An emloyerlnP~ shall sol adm]lllliniterl workI in his~ charge as
to provide theB maximum continuity of emnploymlent pe~neticable for
his p~erso~nnel .
SECTION 8. (a) \fithill ten (10)i days after thie effective totie Of
this Code, each em~ployer shall p~ost anid thereanft~er maintain, in con-
spicuous places acc~esibl e to- emlployetes full copies of this Codie andl
any amendmentsrnt or mod~ifientions whlich may later be ap~provedl.
Y(b) Each membl~er of the. Trade shall comuplyv with all rules and
regulations relative to the post~iing~ of prov,~isions~l of thlis Cod~e which
may from time to time be ~r~escr~ibed by the Board.
ARricz~r V I -A n;\ xx s xslurrin
To further effectuate the policies of th~e Act, a Codre Aut~hor~it is
SECTIo) N 1. The perlmanent~ Code Authority shall consist, of five
(5)1 m~emb~r~ s to be elected by members~t1' of the AI-ssociation and two
(2) mlemnber to be elected by nlonmnemberl~ls of the Assoc~iation who
are mnemberls of the TIlrade if the said nonassociation members so
desire. In the event the n~ona;sc-ciation members of the TIrande do
not desire to elect two (2) su~ch memcnbers to the Code Author~it-y,
the Bolardt may, in its discretion, appoint two (2) members from
the nonassociation mlilember of the Te~nde. Iln addition to memlber-
ship aIs above providled there may be three (3) mnemblers, w~ithlout
vote, to be known as Administration m~embertl ls to be app~ointedl by"
the Bo;3ard to serve for such sterns as it mlay specify. Mmeso
the Code Authority selected by the Trade 41hall be e~lectedl to serve
for one (1) year or until their succ~essors are elected~ and quallified.
SECTIrON. 2. (a) Duringr the period not to e~xceecd sixty (6j0) dayls
following the approval of this Code, the Board of Direct~ors of th~e
Association shall constitute a, tempo~irar~y Code A1Suthority, and thle
Board may, in its discretion, appoint one (1) additional member
(b) W~ithin said sixty (60O) day~s period the p~ermanent Code ALu-
thority shall be elec-tedl by letter ballot. Ballots shlall be sent byr the
temlpor~aryS Codc Authllority' byP mal~il to all know79n membert'~S of the
Trade. Th'le ?;aidl hallorts shau ll hae a suggested~ list of twenlty-four
(124) names sele~~ctd by3 the Board. of D~ircc~torls of t~he Association
andr seven (7) blank spaces in which addlitio~nal names may be
w~rittenl, and thlis fact shall be called11' to thze att~entionl of those vot~ingr.
Of the twnclty-fourl (34) -l:rrsugge led nmeS, hLevelt~ee (17) sh~all
be mlembers of the A.Cssoc iationl, and1 sev.n (7) shall be nlonnesciua-
tion memiibers of thie Tradel. The ballot shall de~finiitely set forth
which of t~he suggestcled namecs are no~nmlembers..
Mehmber~s of the Associat~ion shllR have the bright to v\ote only for
memllber~s of thre Clode AuL~thority repr~esenting thle As~~soc~ilt~ion. Non-
a~ssociation memnbers shanll have thne right to vote only for nonuss~ocia-
t~iolln members of the Code Atuthority.
Eachl mlember of the T~rade~ mlay cast one ballot and mayT vote f'or
either his own chice lCE. or those nominatedl by the Boardc of D~ircctor~s
of the Assoc~intion.
Thle said balloting shllll close twenlty-onn e (21) days after the dante
of ma~iling of thre ballots. Not Inter thnan five (5) days after1 the
closi ng of the balloting, the ballots shall be op~ened~ in the pr1i~esece
of at least three (3) membnlers of thle B3oard of Dirtc~tori s of ther As-
sociation and in the pr~esence of a notary publlic who shall count the
said ballots andc rec~ordi the votes~. The five (5) membe~~l.rs of the
Association n receiving the largest number of voctres and the two (2)
nonassociation members recceiving the largest number of votes shllll
be declared elected.
(c) W'ithin two (2) wneeksi after the o-pening of said ba~llolt.e a
meeting shall be called by the Code Authority for the purp~ose of
comupletingr the organization of the Code Authoritye an crr.n
on any other business which maly pro~perlly comle bfr
(d) Subsequent elections of Code Authority members shall ble by
mail balloting andl in ~the malnlner spec'ifiedl in Section 2 (b) of this
SECTION 3. Eneh1 trade or industrial assc~cciation directly or indir-
rectlyy participation in the selection or activities of thle Codle
(1) Ipose no inequjlitable restrictions on member~clship.
(2)1 Subm~it to the Boardc true cop~ies of its articl1es of a~sc~ciati n,n
by-laws, regulatiolns, andl any amendments wh-en madle thereto, to-
gether with suchi other information as to memllberlsh~ip, organnizat ion,
and activities as the Board may deem neccessa~ry to e~ffecltluate the
purpose! of the Act.
SECTIUNl 4. TIn Order~l that the Code Aulthor~ity' shall1 at all times be
truly represet~;t ntative of the Trade andl in o~therl respects com~nply with
the provisions,, of thle Act, thre Buoard may pr1es~r~ibe such hlen r~ings as
it mnay dteem Ilcproper; andl thelrenf~ter if it shall find that the! Co~e
Authority is not. truly repr~e;entative- or doies not in mother respelts
comply with thle p~rovisions of ther Acct, mnay crequir'e an aproprinto~liac'
modif~ication of the Code Aulthocr~ity.
SE<.(~No 5. Nothling contained~ i~n thlis Code ilhall can, titulte thle
members of thle C'ode Aultholrity part~er~s for any p~urpose.w Nor
shall alny member of th~e Cod~e Authoilcr~it v be liable in anyT manner1(2 to
anyo-cne 'for any act of any other memberl-1, o~fficer.r, agen.lf o>r emlploy~ee
of the Code Authority. Nor shall1 any member of the Codet Au-
thority, exercising~ reasonable diliaenlce in thie conduct of his duties
her~e under, bp liable to anyone for ainy action or omission to act
under this Code, except for his own wilful mailfesnsnce or non-
SECTION 6. If thle B1oard shall at. any~ time determine that any
action of the, Code Aut~hority or any~ agencyr thereof mayg be unfair
or unjust or contrary~ to the public inlter~est, thle Board~ may require
that such action be susp~endled to nifor~d anl cpportunity for invecsti-
gation of the merits of such action andl furthler consideration by
such Code Authority or agecncy) pending final aIction, whlichl shall not
be effective unless the Board appr~oves or unless it shall fail to
disapprove\~ after thirty~ (30} days' notice to it of intention to pro-
ceed with such action in its original7 or m~odifiedl forml.
SECTION 7. Subject to such rules and regulations as mnay be isrsuedl
by the Board, the Code Atuthority shall have thle following powers
and duties, in addition to those aulthlorizedl by other provisionls of
(a) To insure the exe~cutio~n of thle p~rovis~ions of thlis Code and- to
provide for the compliance of the Tr~ade with the pr~ovicions of
(b) To adopt by-laws and rules and regulations for its procedure.
(c) To obtain from members of the Trade such information and
reports as are required for thne admllinistr~ation of this Code. Such
information and reports shall be filed with a disinterested agent of
the Code Authrority or if none, then withn suc'h an agent designated by
the Board. I~n addition to information required to be submitted to
~ltheCd Auu thriy membersTLY IC'1J' of the Trade subject to this Code shall
furnish such stat~istical1 information as the IBoard may deem nleces-
sarly for th~e purposes rec~itedl in Section 3 (a.) of th~e Act to such
~Federal and Sta~te agercnc~ies as it may designate; provided that nothr-
ing in this Code shall relieve any memliber1 of the Tradle of anoy exist-
ing obligations to furnish reports to an~y Government agen~lcy.o
individual report shall be dlisc.losedl to any other member of the
Trade or any other party except to such other Gover~lnmenta~lt agen-
cies as mnay be dlirec~ted by the ]Board.
(d) To use such. trade associations and other aglc~ies as it de~ems
proper for the carrying out of any of its ne~tivit.ies provided for
herein, provided that nothing herein shall relieve the Code Author-
ity of its duties or responsibilities under this Code and that such
trade associations and agencies shall at all times be subject~ to and
comply with the provisions hereof.
(e) To make recommendations to the Board for co-ord~inationl of
the admiiniste~ntion of this Code wcPith such other Codes, if any, as
mayr be related to or afflee~t. members of the TPrade.
(f) 1.. It being found necessary in order to sulpporl1t the a~dmin-
istration of this Code alnd to malinitalin the standards of fair compe-
tition established here~under and to effecrtuat~e the policy of thre Atct,
the Code Aut~hority- is authorized:
A. To incur such reasonable ob~ligrations as are necessary and
proper for the foregroing purposes, and to meet such oblign.t.ions out
of funds which may be raLised~ as hereilnafte r provided and wh~ich~
shall be held in trust for the purpose of the! Code;
B3. To subm~nit to the Bo0ard for its app~roval, subject to suchl notice
and opportunity to be heard as it mayS deenl necessary, (1) an item-
izedl budge~t. of its estimuted~ expenses folr t~he for~iregolrg purposes,~
and (2) an. equitable basis upon which the funds nc~cesuary to sup-
port such budget shall be contributed by members of the Trade;
C. After such budget anid basis of contribution have been ap-
proved b the BEoa rd, to determ~in e and obtain equ~itabl econri~bu-
ton as above set forth by all members of the Tra;de, and to that end,
if necessary,, to institute lega~l proceedings therefor in, its owFpn name.
2. Eachl members l of t~he cTra~de shall paly his or its equ~itable con-
tribution to the exspensles of the~ maintelnance of the Code Authorityr,
determninedl as herieinabove p~rovided', and siubject to rules anid regu-
lations pertaining thereto in-.ned by the Board. Only members of
thze Trade com~ply~ing with the Code anrd contr~ibutingi to thie exz-
penhes of its admlnill~nitrai onl a heretinlabove provided, unless dully
exemuptedl from making suchI1 contribution, shall be entitledl to par-
ticipate in the selectionl of memiber~s of the C~ode Authiority or to
receive thef benefits of any of its voluntary activities or to makle use
of any emlem or in~sigmai of the NationalRec~ovryr .Administrat~ion.
3. Thle Cod~e Authority shall neithler incur nor payr any obligation
substa7ntially in excess of the amnounlt theretof as estimlatedl in its ap-
proved budgett and hallnl in no event exsceed the total amount con-
tained in th~e aplpro'edl budget except upon app~r~ov~l of the Board;
and no subsequent. budget sh~all contain any deficiency item for ex-
pendituress in excess of prior budget es~timaltes except those wPhich
the Board shall have so alpprovedi .
(g) TCo rec-ommllendc to the Board any action or measures deemned
advpisb~le, inicluing further fair trade prnc~tice provisions to govern
members~ of the Trade in their r~elation!s with elach other or with
other trades;- measures for indul~str~ial planning,, and. tabilization
of employmentt; and inclrudingr modlifient.io~ns of this Code which
shall become detective as par~t hereof upon ap-proval by the Board
rafte~r such notfice and hecaring1 as it may specify.
(h) To appoint a Trade Pralctirle Committee which shall maeet
w~ith he Trade P~ractice Commnittee~s appointedl und~er such other
Codies as many be re~latedl to the Trade for thne pulrpos"e of formnulat-
ing fair trade practicer s to govern the relattionships bertween emp-
playerss under this Code anld undetrl such other Codets to the end that
such fair trade pra:c~tic~es may be proposed to the Boalrd as amnendi-
ments to this Code andc SucLh other Codles.
(i) To appoint a Trande Practice Comnplainits Comniitttee andl
establish the prc~edlure thlerefor subject to the approval of the
AnRu:C1, VII -TRADE PRACTCE RULIES
R~rm 1. Inaccurate adverti'fsri n.-No m~n)embe of th~e Trade shall
publish adv~ertising (whietheri printedl, radio, dli play, or of an
ot~her1 naturee, which is nuslead~ing or inneoratc.ell;f~ m anyT materiar
particular, norl shall any member in. any way mlisrepresent any
goods includingg~ but without limuitation its use, tradlemark, grade,
qua~lity, quantity, orligrin. size, substance, chnaracter, nature, finish,
miaterinI, content or preparationr) or credit terms,1 \-lues, policies,
se~rvices. or the Inaturet or forml of thle business conducrtedl.
RULE 2. FalSe Dllring.-NPo mnember of the Trade shall knowvingly
withhold fr~om or insert inl any qiuotnation or invoice any statement
that makies it inaccurate in any material particular.
RULE 3. (Inacurati~e labelinig.--No members of the Trade shall
brand or mark or pack any goods in any manner wh-~ich is intended
to or does deceive or misleadl pur~chasers with respect t~o the brandl,
grade, quality, quaintity, origin, size, sub~stance, character, nature,
finish, material content, or preparation of such goods.
RULE 4. Defa~)mactio~.--No mnemb-ler of the Trade shall defame a
competitors by falsely' imputing to him dishonorable conduct, in-
ability to peerformn contracts, questionable credit standing, or by
other false representation,? or by falsely disparaging the grade or
qluality of his goods.
RULLE 5. Threats of Lawe cSurit~.
ceedings w-hich tend to or have the effect of 'harassingr comlpetitors
or intimidating their customers.
RUTLE 6. X&0768 RebateFS.--N4O member of the Trade shall secretly
offer or manke. any) payment, or allowanIce of a rebate, refund, com-
mission, credit, ulnearned discount or excess allowance, whlether in
the form of money or othlerwise, nor shall a mnember of the Trade
secretly offer or extend to any customer any special service or p~rivri-
lege not extendled to all customers of the same class, for tlhe piurpose
of in~fluencing a sale.
RULE 7. Brilbing Emzployee~s.--No member of the Trade shall give,
permit to be given, or offer to grive, anything of value for the p~ur-
posp of inf~luencingr or :rewardc-ingthe action of any emplloyee, agent,
or represenltative of another in relation to the business of the em-
ploye~r of such employee, the principal of such agent or the repre-
sented party, without the knowvledge of such employer, principal or
party. This provision shall not be construled to prohibitt free and
-general distribution of articles commonly used for advertisinar ex-
cept so far as such articles are actually usedl for commercial bribery
as hereinabove d'efinedl.
RULE 8. Inducing Brea~ch of Ezrilting Contracts.--No member of
the Trade shall by any false or deceptive means wilfully induce or
attempt to induce th~e breach of existing commercials contrlnets to
which any other member of the Trade is a partyv, or inlterfere with
or obstr~uct the performance of any such contractual duties or selrv-
ices by any such means, withn the purpose and effect of hampering,
injuring or embarrassing competitors in their business.
RULE 9. G'oerc~ioz.--No memt~lber of the Trad~e shall I~require that
the purchase or lease of any grood7s be a prerequclisiite to the purchase
or lease of anly other goods.
RULE 10. Sales on DSeferred Parinwntl),. No nlmlemb of the T~rade
shall sell or offer for sale any mafcliner~y or equipment. on a d~efelrredc
payment plan in which a re~ser~ed: sccur~ity or prope~r~ty interest, is
provided, unless the terms of payment shall include a casih pa~yment
of at least 25fo of the p~urchanse price on deliveryl of th machinery
or equipment, and prlov~isions that the balance shall be paid within
12 mlont~hs of the date of deliv~ery-.
RUL.E If. C (l.\' (Y??iCCf nI of Ofe,,,rins.- NoO memberf~'l of thle Trad~e
shanll secll or offer 'for sle a;1:ny uised~ llnachinery3 or Cellillanentl under
any ecepclt thle followingi classific llntion :
(a) Guar~:lnateedl rebulilt. as slurei~lid in wr~riting~.
(b) Guaranrltteed as rel''esen''ted in wr~iting~r.
ce) Present;ll condcltionr, annnonllllly. knowlrn '' us is".
No ~provision of this Code relatinlg to pr'i''e' or t''rms of sellling,
hipn, or marketing.., shall apply to exrport tl;rade or sales or ship-
ments for export ti~rade. ",Exporll~ t, Trad~c ") shall be as <1efinedl in thle
Export Tradle A~ct aldoptedl April 10, 1_918.
Annou-.~ : ]IX-MunI i~ne .ma x~l
SECTIO~N 1. This Code andc all thne provisions thlereo~f arte exrpressly
mnadle subject to thec r~ihlt, of the PE"1silentt in awardcl~ance with the
prov-isions of subsection (b) of Section 10 of the Act, fromll tim~e to
time to cancel or modlify) any orde-r, applrovatl, licen-e~c, rule, or regu-
lation issued' ulnderl TIitle I[ of maid Act.
SECTIOTN 2. Suchl of the provision of this Cod-e ats are not ret.quir~ed
to be included her~ein by the Act mayi, wFith~ th~e approv,\al of the
Board, be mnodifiedl or ellimina~ted in such11:I 11I mane as may be indicat-
ed by the needs of the pulblic-, by I.hangesl~ in circumsl~tanlcces, or by
No pr~ovision of this Codel shall be applied so as to permit molcnop-
olies or mc.no~pohsi.tic penectictls. or to f'hannol~te, oppr'ess, or dlisemnii-
inate against. small enlterpri-es.~
ARTICLE XI TPown~l I[NeIin:.ises1
Whereas the policy of the Act to inlc~1reae real purchasing~lij power
will be made mlore liffc~ultl or co.ncsullrnunatin if prices of gtcoodfs andc
services increased as rapidly sx gs ti eonzdta rc n
creases~'''i exep suha myb equre to meet individual cost shouldl~
be delzayed', and wiphen madle suchl increases should, so far as pocssible,
be limitedl to aIctual additional increases in the seller's costs.
ARTCLE XIII--Scorei or CODE
lIf an emnployer in this Tradet is also an emloyerl\c l in any other
trade or indlustry the provisions~ of this Code shall apply to and
affect onlyV that pa~rt of th4e business of such emplloyer which is a
Part of the Tradl'e coveredl by this Codce.
AnnRTc'IE XIII--EFFECTI\.E DATE
"IThis Colde shalnl be~icomet fctrtive on. tihe second Mondarl~ y aIfter thre
alpprova`;l by the Board.
Approved Code Noi. 542r.
Reg~istry No. 1390!-293.
11IIIIIIII111 l1l1III11111 1II11llII111llIIIIIIIUIIIIIIIII~lI