I --- -'I
For vale by the Sug~rrintendent~ of ocuments. Washington, D. C. - Price a cents
Approved Cod~e No. 84F--Amendment No. 2
Registry Nlo. 929--011
NJATI[ONAL RECOV'E RY ADMCINISTRATIION
AMENDMENTS TIO SU]PIPLEMENTARY~
C ODIE OF ]FAIRC 9na~ COMPEITIONd~~
(Al Division of the Fabricated M~etall Products
Manufacturing and 111etal Finishing
and Metal Coating Industry)
AS APPROVED ON JANUARY 31, 1935
WE D~O UR PART
UNIV. Or F- Use
SU. S. D""' **
GOV'ERNMlENrT PRINTING OFFICE
This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D. C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
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B3irmingham, Ala.: 257 Federal Building.
Boston1, Mass: 1801 Customhouse.
Buffalo, N. Y.: Chamber of Commerce Building.
Charleston, S. C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
H-ouston, Tex.: Chamber of Commerce Building.
Indianlapolis, Ind.: Chamber of Commerce Building.
Jatcksonville, Fla.: Chamber of Commerce Building.
K~ansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles Calif.: 1163 South Broadway.
Louisville, K~y.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customnhouse.
New York, N. Y.: 734 Customzhouse.
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Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
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Seattle, Wash.: 809 Federal Office Building.
Approved Code Nlro. 84FE-Amemenerlnt No. 2
AM-~,EN:CDTIEN~T TO SUTPPLE11ENTA RtY CODE OF FAIR
SHOEBP SH~ANKa M9A.NUF~LACTURING~la~ INDUPBSTR1Y
As Apprtoved on January 31, 1935
A~rrovlse AMIENDMENT OF .Ct-Pl'LEMEIINTRY. Cul)l: OF FAIR COMPII.LTI-
TION FOR THrE .NII(IE SHTANKZ JANUF;~.: H HING INDUSTRY1WP
A DI\'TSION OF THIE FABSRICATED) 'tiET?.\1L lI'Iol),C'CS 11ANUFACTUCRINGI AND
METAL FIND*HINGG AND METAL COATING IND'C''1:YI
An applilention h~aving~ been d~uly miade purlland llto a0ndll in fuill
emnp~rlianr~ce w\ithi the provisions of Title I of the iNational3 Industrial
Relcovery\ \c~t. approved June 16, 10r;:::, for approval of an Amlenrd-
niet t th Spplmenur Code of Fliair Comlpet~ition for thle Shoec
Shankll Manullf~ll-turine-i Industry, and. a Notice o~f Opportn'it~y to be
Heard hlaving b~een duly given~l th~ereon and the annrexed repurllt onl
.sail Ainendownlll'lt, containinglll finldingrS wlithl rCSpect thrcieto. having
been anl, andI~ dI~1tireceted to th~e President:
NOWi, THER-EFiORE, on1 behalf of thle Pre~sidentlt of the United
State.-, the Na(t ica I r11 ndI t~r~i al ReCo \(r.!I,:l'l Emard.~ pur-uat, to nlthlor-
ity vo~ltced in it by EFve. livei~ Ord~ers of thEi Prec-ilent. includliner
Executive Ordecr N~o. (1>.'.A da~tedl Septemlber 2, I10:;4. urll otinvit i-II.
does her chy,! inc~orplorate by\ preference sanid unnexes~ll 1 epor tcrt an does
f10 1lil(t suilt ..llientildelli' RHnd (110 Supp~lknitll Ify C'ode :14 0011i-t1-
~intreel after being~_ :Ilm-rdeal1 COmp1ly in all reel'C-l(llj w\ith thell Il'"ltillllt.
prov'\isic onc andc will p~romxote the policy andi l'1'"H'las-- of said Title of
ESiX A~c.t, andl does he..l''reby border' that sa~il Annonshnentl'll he andI it iS
herelay.~5 appro~vel, andl thatl thle previous aXpprm-a';l of saidX Supp~lle-
HIlldiltlr'y Caste18i Jl~it*FO)\ V1111('1PIII **J O Illf411'd :11 i}Jls'u fg1
I4;11'' 1;ill11:* Iuf C'ode Ill lis cPill c~ I'0fy 8.> Rll11ded.
B~y W. A~. Inunuarshi, dinic;, stllrative OI/i~c'l.
.1, ting~ Division. Adm! Inistrator)1.
AM~IINI;TON.. D. C..
REPORT TO TIHE PRESIDENT
The Wihite House.
SIR: This is a report on an Amendment to the Supplan~crt ntry
Code of Fair Competition for the Shoe Shanki M~anllucturingl~ In-
dustry, a Division of the Fabricated Metal Products Manufacturing
and Mletal Fininshting and MBIetal Coating Industry, to incorporate
the principles contained in Offce M~emorandlum No. 228, dated June
7, 1934, relating to prricng prlr~acie and costi)ng n conigpo
visions. This Amendmllent wpas proposed in accordance with ArtZicle
VII of thle Sulpplemlentary Code as approved on February 21, 1934,
and a Notice of Op~portunity to be Heatrd was given. on August 8,
The Assistant Deputy Administrator in his final report to the
National Industrial Recovery Board on said Amendment to said
Supplemlentary Code having found as herein set forth and on the
basis of all the proceedings in this matter.:
It is found that:
(a) The Amendment to said Supplementary Code and the Supple-
mentary Code as amended are well designed to promote the policies
and purposes of Title I of the National Industrial Recovery Aict,
including the removall of obstructions to the free flow of interstate
and foreign commerce which tend to diminish the amount thereof, and
will provide for the general welfare by promoting the organization
of industry for th~e purpose of cooperative action among trade
groups, by inducing and maintaining united action of labor and man-
agementt under adequate~ governmental sanction and supervision, by
eliminating unfair comlpetitive ~plraPcties byT promoting the fullest pos-
sible utilization of the present productive calpac-ity of industries, by
avoiding undue restriction of production (except as may be tempo-
rarily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by re-
ducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.
(b) The Supplementary Code as amended complies in all respects
with the pertinent provisions of said Title of said Alct, including
without limitation Subsection (a) of Section 3, Subsection. (a) of
Section 7, and Subsection (b) of Section 10 thereof.
(c) The Supplementary Code empowPers the Supplementary Code
Authnority- to present the aforesaid Am11endment on behalf of the
Industry as a whole.
(d) The Supplementary Code and the Supplementary Code as
amended are not designed to and will not permit monopolies or
(e) T~he A~tl~nu-nldnwnt and the Supp-Tlllementur'Y Cod~e as ameirnded
atre not descigned~l to and1i will not climlinarte or oppress small enltcerpr"ise,
(f) Thlose ellngaged inl other steps of thle economic process have
not, been dlepriveld of th~e r'iglt to be honelld prior to the appro~cval of
For these rea-;ons, therefolre, this Amen~~lnt ent as been approved.
Fiior the NaT~tionalL1 Induslltr'ial RC'')eover Boar:lld:
WCI. Ac. K.rrI n mi N,
JarcwraRYs 31, 1933,'.
AMEN~DMaE NT TO SUPPdLEMEN:,~TARYn CODE OFi FAI[R COST-
IJ=PETIT8ION FO1R THIE SHOE SHNKl~I MIANUFABCTURIN~G
A DIVIISION OF TH'fE FABRRICATED M~E:TAL PRODUCTS MLANUTFACT~IIlHNG AND
M~IETAL FIN~IHIN:G AND) METAL COATIN;G INrDUISTRY
Amnend: A~rticle V, by chang~ing the Title to real:1:
Open Price Filingr, Me~thods of Cost Findings and A~ccountingr and
Un~lfair Trade Practices.
Amnendl: Article V, by renumbering thie old Section 1 as Section 4;
delete thle present Subsections (a), (b) and (c) th~ereof andt reletter
Subsections (dl) to (j) inc-lusive-c in newcc Section 4 to (a) to (g)
Inlsert new Sections 1, 2 and 3, as follows:
SECTION 1. ElCh1 memllber' of thle Inlustr~y shall file witl a. confi-
dential and disinterestccd agent of the Supp~lem~entary Code Auhthiority,
or, if none, thcn wiithl such an agent detsigtnatedl by th~e National
Indusiitrial Rtecover~y Boaxrdc, identified lists of all of his prices, dlis-
Coulnts, rebates, allow-ances, and all other terms or conditions of sale,
hercinlaft er in this Section preferred to as "' price termls "', whichz lists
sha~ll completely andi accurately conforml to and represent the indi-
vidual pr1icingr practices of sa~id mlnlembe. Such lists shall contain the
p~iee terms for aill suchl standard products of thle Indu-i y as are
socld or offered for sale by said member and for such non--tallnaned
pr1odlucts of said memberoc~ as shall be d~esignatedl by the Suppkinentarrt~ Iy
C'otl Au~thority. Salid price terms shall in the first instance be filed
w-ithiin thirty dlays after thle date of apptrorval of this provision.
Pr'Iice terml-s an~d revisedc price termlls shall b~c~omle effective immediately
upo":n receipt thlereof by said algent. Immlnediaztely upon recl.iplt
there~of, said agecnt shall1 by tielegraphl or other equ'lally) pr~omp~t meansll
n~otify said meml;ber of the t~ime of such\ receipt. Suchi lists and re-
visionls, togethcr w-ithl thle eiff= vti\ time thereof, shall1 upon 1.r-ceipt be
imm-tediately~ andl simlultaneously distributed to all members of the
Indlustr~y andi to all of their customers who have appliedl thlerefor and
hav1\e offeredct to dcfr~ay thre cost t Hal~lly incurred by the Supplemnen-
tar'y Codec Authcrit~y in. thle prlepa~ration and3 distr~ibution thereof,
andl shall be available for inspection by any of their customers at the
office of such agfenrt. Said lists or revisions or any part thereof shall1
not be mlade available to any person uLntil releasedl to all members of
ther Indul-try3 and their cu~stomler~s, as aforesaid, pr~ovidled, that prices
filed in thle first instance shall not be released until the exp~irntion of
the aoresad thrty dy peiod after the approval of this Section.
The Supplemendtarl'y CodEe Authnority shall mafintain a permannent file
of all price terms filedl as herein provided, andl shall not destroy n
par.t of such records except upon written consent of thle Natoa
Indu :ctr~ial Reover~y Boardl. Up~on request the Suppleineptul~lr~y Code
Authiority sh1all furinishl to the N1atiolnni TIndsltr'ial Reco~very Boa~dd
or any d~uly dlesigna~tedl agentl of the Natfionn~l ~Indu1StriSl1 Re~Covery.~'
Board copies of any such lists or revisionsrl of price tcentsl.-
When any member11' 1 of the Induslltry has ficled unrv r~evisioln, such
membrllltl shall no0t file a hlighrl~l prirce within forty-eigrht (48) hour~s.
No memberI)CI of the Indllustr~y shall all1 or offer to sell any~ products
of the Indu~lflSt, forl which price terms have! been fitle pulr~sllnt to the
provisions of th is Section, ecep~clt in. neerdan~~llc~e with such price termlls,
provided. hiowever, that nouthling in Ariticle Vc of this SuppJlementury~
C'ode rshall apply to sales between members of the Indus~try3; prov'\ided,'
fu~rther, that no sales shall be made from, one member to anovther~ at
a diSCou)Int from filed pr~ices~ of more than, tenl (10) percent'll.
Dlrolppedl lines, seconds or surplus stocks may be dispose-~d of by any
bu nyi uhmember of theIdsrya n price and on any terms and cond itionls,
but nlyif uch embr o th Industryr prior to such disposanl has1
filed with the Supplementary Code Aiuthori~ty his statement in w-rit-
ing, setting forth, the fact of, ltreasons~ for andc terms11 of suchn procposed~
No member of the Industry shall enter into any agr~eement... under-
s~tanding, comlbination or conspiracy to fix or mnainltain. price terms,
nor cause or attempt to cause any member of the Indus~try to chalnlge
his price termlls by the use of iltntimdation, coereson,l or any other in-
fluence inconsistent with the maintenance of the free and open mar-
ket which it is the purpose of thlis Section to create.
SECTION 2. (a) Wilfully destructive price cutting~ is an unfair
mlethodl of compete i tion and is forbidden. Any mlember of the Ind ustry'3
or of any other Industry or th~e customers of either many at any time
complain to the SupplemncltaryI~ Code Authlority that any fled price
constitutes unfair competition as dlectru~ti~ve price-cutting, imperiling
small enterprises or tendling toward monopoly or the imp~airmle nt of
code wages and working condlitions. The Supplemlentary Code Au-
thority shall within five (5) days afford an opportunity to the m~ember1
filing the price to answer such complaint and shall within fourteenl
(14) days mak~e a ruling or adjus~tmetnt thnereon. If such, ruling is not
concurred in by either party to the coplalint, all panpers~ sh~all be re-
ferredl to the Res~ea rch and Plalnni ng Diision of NRA, which shall
render a report andl recommendation thereon to the Naitional In-
dustrial Recovery Board.
(b) When no declared emeprg~ncy exists as to any given productt,
there is to be no fixed minimum basis for prices. It is intended thiat
sound cost etstimating methodss should be! used and that consideration
should be giv-en to costs in th~e determination of pricing policies.
Whlen an emergency~ exists as to any given product, sale below
the stated miinimum price, of such product, in violationn of the emner-
gency provisions in the two followmgnE paragraphs, is for~biddcen.
(c) EmergencU Pro visions.R-If the N;ational .Industr~ial Recovery
Board, after investigation, shall at any time find both (1) that an,
emergency has arisen, within the Industry advrersely affecting small
enterprises or wages or labor conditions, or tending towfardl monop
oly or other acute conditions, which tend to defeat thet purposes o
the Alct; and (2) that thne determlinationn of the stated ~mimmum price
for a specified .product writhin the Industry for a limited period is
necessary to mitigate the conditions constituting such emergency and
UNIVERSITY OF FL ORIDA
6 3 1262 08852 5455
to effect~uate the purposes of the ~Act, thle Supplemenntary Code ALu-
thority mlay cause an impartial agency to investigate costs and to
recommlend to the National Indusxtrial Recovery Board a deter~mina-
tion of the stated minimum price of the product affected by the
emergency, and thereupon the National Industrial Recovery Board
may proceed to determine such stated miinimum pace.
Whr71en the Nationai~l Indlustrial Recovery Board shall have deter-
minedl such stated~ minimum price for a sp~ecified~ product for a stated
period, which -price shall be reasonably calculated to mitigatede~ the
cond citions of such ti m~r~genc a~'Snd to effectuate the purposes of the
National Indlustrial Recovery A~ct, it shall publish such price. There-
after during such stated period, no member of thllllllllle Inmdustry shall
sell such specifiedt products at a ne~t reallized price below said stated
minimum prIice, and any such sales shall be d~reeme destructive price
cutting. Fromt time to t i lne, the Supplementary Code Authority :may
reemarrl~nwnd review or reconsideration or the National Industrial
Recovery B~oard may cause any determinations hereunder to be re-
viewed or r~econsidlered and appropriate action taken.
SEC~TION. 3. Thle SupplementaryI1111111111111 Code Authority shall cause to
be formnulatedi methods of cost finding and accounting capable of
use by all members of the InduLstry, and shall submit such methods
to the ~National Indlustrial Recovery Board for review. If approved
by the N'ational Industrial Recovery Board, full information con-
ce~rning suceh methods shall be made available to all members of the
Incdu try.' Thereafter, each member of the Industry shall utilize
such methods to thle extr:nt found practicable. Nothing herein con-
tained shall be construed to permit the Supplemrientar~y Code Au-
thority, anly agent tll!roo(:f, or any member of the Industry to sug-
gest uniform additions, percentages or differentials or other uni-form
items of cost which are designed to brling about arbitrary uniform-
ity of costs or prices.
Approved Codle No. 84FE"-Amendlment No. 2.
Reg i.st'J ry-' No 293-1-01.