Supplementary code of fair competition for the rolling mill machinery and equipment industry (a division of the machiner...

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Material Information

Title:
Supplementary code of fair competition for the rolling mill machinery and equipment industry (a division of the machinery and allied products industry) as approved on June 7, 1934
Portion of title:
Rolling mill machinery and equipment industry
Physical Description:
11 p. : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
U.S. Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Rolling-mill machinery -- Law and legislation -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1399-36."
General Note:
"Approved Code No. 347--Supplement No. 14."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004950821
oclc - 656582364
System ID:
AA00006658:00001

Full Text


Approved Code No. 847-Sanpplement No. 14 Registry No. 1399--30


NATI ON AL RE CO V ERY ADM I NISTRA TI ON



SUPPLEMENTARY
C ODE O F FAIR C OMRPE TIT ION

FOR THE

ROLLING MILL MACHINERY

AND EQUIPMENT INDUSTRY

(A Division of the Machinery and Allied Products Industry)

AS APPROVED ON JUNE 7, 1934






MEMBER





WE DO OUR PART

UNIV. OF FL UB1.
DOCUbl("NTS DEPT.







UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


l'or salea by the Superintendent of Documents, Washlagton, D.C. - Price 5 cents

























This publication Is for sale by thle Sup~erintendent of Documents, Government;
Printing Office, WVashington, D.C., and by district offices of the Bureau of F~oreign
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMl~ERCE

Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chadwt~Lr of Comlmerce Building.
C'harleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Clevelanud, Ohio: Chamlber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mlich.: 801 First National Bank Building.
Houston, Tex.: Chlamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jackisonville, F~la.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, K~y.: 408 Federal Building.
M~emphis, Tenn.: 229 Federal Building.
M~innenpolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A. Custombouse.
New York, N.Y.: 734 Custombouse.
Norfolk, Va.: 406 Enst Plume Street.
Philadelphia, Pa.: 422 Comlmercial Trust Buildinig.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New~ Post Offic~e Building.
St. Louis, Mlo.: 506 Olive Street.
San Francisco, Calif.: 810 Custombouse.
Seattle, Wash.: 800 Federal Office Building.









Approved Code No. 347--Supplement No. 14


SUPPLEMENTARY CODE OF' ]FAIRt COMPIETITION
FOR THEI

ROLLING MILL MACHINERY AND EQUIPMENT
INDUSTRY

As Approved on Jlunre 7, 1934


ORDER

SUPPLEMENTARY CODE OF FAIR COMTPETITION ~FOR THE ROlLLING I/IL
RIlCHINERY AND EQUIPMENT INDUSTRY

A DIlSION OF THE MZACHIN'ERY AND ALLIED PRODUCTSS INDUSTRY

An. application having been dulyt made pursuant to anrd in full
compliance with the provisions of Title I of the National I~ndustrial
Recovery Act, approveed June 16, 1933, for approval of a SCupple-
mental Code of Fair Competition for the Rolling Mill Manchinery
and Equipment Suibdivision of .Machinery and Allied Products
Industry, and hearings having been dul held thereon and the an-
nexed report on said Supplement~al C~ode containing findings w~ithZ
respect thlereto, hav~ingf been. made and directed to the President:
NOW~, THEREFOR'E, on behalf of thre President, of the United
~States, I, HEugh S. Johnl~sonl, Administrator for Industrial Recov-
ery\, pursuant to authority vested in me by Execuztiv-e Orders of
the President, including Executive Order No. 653--~-A, dated De-
cemnber 30, 1933, and otherwise; do herebyv incorporate by reference
said annexed report and do find that said Supplemlental Code comn-
plies in all respects w~ith the pertinent provisions and will promote
t~he policy ~an purposes of said TIitle of said Act; and do hereby
order that said Supplemental Code of Fair Competition be anid
it is hereby approveed subject to the condition that the provisions
of Article VIII, Sect ion (a), insofar as they prescribe a waiting
period betw-een the filing with the Code Authority (or such agency
eas ma be desigrnated in the Supplemnental Code) and the effective
dat ofprice lists, as originally filed and/or revised price lists or
revised terms and conditions of sale, be and theyS h~erebyr are stayed
pending my further order.
HUGH S. JOHNSON,
Adcministr~ator for Indus~trial .Recovecry.
Approval recommended :
BARTON ~. nrTURRAY,
Acting Divisi'on A dmnltistrator.
Wa~TsmNCroS, D).C.,
June 7, 1036.
65903"---657-52 34 1












REPORT TO THE PRESIDENT


The PRESIDENT,
Thec Wh'~ite House.
Sla: This is a report on the. Supplemental Code of Fair Competi-
tion for the Rolling Miill M~achinery andi Equipment Subdcivision
of the M~achinery and Allied Products Industry, public hearing
havinga been conducted thereon in Washin ~on, D.C., December 21
1933, In accordance with the provisions 0~. Title I of the National
Industrial Recovery Act. Every person who filed a request for an
appearance was freely heard in publlic and all statutory and regula-
tory requirements were complied with.
GENERAL STATEMENT

The Rolling Mill M~achinery and Equipment Association, being
truly representative of this Subdivision of the Machinery and Allied
Prodlucts Industr~y. has elected to avail itself of the option of sub-
mit~ting a Supp~lemental Code of Fair Competition, as provided in
paragraph (2), Article I of the Basic Code for the Mlachinery and
Allied Product~s Industry approved by you on the seventeenth day
of 10arch, 19341.
This Subdivision represents a part, of the enpital goods industry,
manufacturing and selling rolling mill manchinery anid equipment,
including rolls (except hardened steel forged rolls, unless made
Ind sold as a. par~t of such rolling mill machinery and equipment)
and including roll stands, tables, shears, roll lathes, tube mill mia-
chiinery and all other auxiliary equipment a~nd parts~ thereof used
in the rolling and processing of ferrous and non-ferrous metals to
produce commercially recognized rolling mill products.
EoCONOMIC EFFECT

In 19"9 this Subdivision of the Industry1 employed approximately
8,287~ persons, including otlice employees.
Approximately 7,375 of the total number of persons employed or
8;9 per cent were estimated to have been fact~ory wage earners. Since
1929 total factory employment declined from 7,375 workers to a
minimum of 2,559 workers in the fourth quarter of 1932, or 65 per
cent. There after emnploymient increased almost constantly to 4,639 in,
the fourth qluar~ter of 1933, or 81 per cent.
Estimatedl annual sales in 1929 amounted to $42,628,000 and had
dleclinedt in 19!32 to $11,579,00i0 or 73 per cent.. Thereafter, estimated
annual sales increased to $12,565.0050 or 9 per cent.
Based on sumnmarized National Recovery Administration question-
nair~e returns as of June 15, 1933, it. is estimated that about 65 per cent
of all factory wsorkecrs worked more than 40O hours per week and that








80 per cent of the factory workers received less than 40 cents per houcr
25 per cent received less than 38 cents per hour, 19 per cent. received
less than 36 cents per hour, and 8 per cent received less thann 33 cents
per houlr.
As of June 15, and Novemb~er 15, 1933, the lowest minimum hourly
rante paid by one or mor~re of the 29 reporting c~onlcern~s ranged~r between.
20 andC 24.9 cents per hour; however, 16 conicerins of thle "9 concerns
replor~ted minimum wages ranging between 30 cents and 34~.9 cents per
hour1 as of Julne 15j, 1933, and 19 of 29 concerns reportedly minimum
wages ranging between 40 cents and 44.9 cents as of ~Novemllbe r 15,
13used on estimated man-hour require~ments as of N~ovembef~r 15,
1933, the maximum hour provisions will probably cause little rec-
p~loym'ent, consequently,. will only increase as the result of increased
1933, amounted to 148,67i8 with an azveragre hour wreek of 31.6. m
ploymnent, consequently, will only increase as the result of increasedt
p~rodluction and hence increased man-hour requirements.
RESUME~ OF TH SUPPLEMIENTAL CODEI

Article I states thle purpose of the Suppl~lemental Code.
Article II accurately defines specific terms employed in this Sup-
plemental Ciode.
Article III. The labor provisions of the Basic Code for the M~a-
chinery andi Allied Product~s Industry as approved 1March 17, 1934,
are incorporated by reference as the labor provisions of this Supple-
mental Code.
Article IV~ adopts the relevant portions of Article II Defini-
tions "! and Article VI, "'Administration "; a-nd~ Artcles. VIIIT Mordl
ifications and Termination ", and IX, WT~ithdrawal" of the Basic
Code for the Ml~achinery and Allied Products Indlustry, as alpproved
Mr~flch 17, 1934.
Article Vr establishes a Code Authority consisting of six mem-
bers, one of whom may be elected from~ and by thlre employers who
are non-members of the applicant association. The Administrator
in his discretion may appoint one additional member withoutt vote
and without expense to the Subdivision).
Article VTiI provides for an accounting system and methods of cost
finding and/or estimating.
Article VrII provides for the determnination of a lowest reasonable
cost when an emergency exists as a result of destructive price-
cutting.
Article VIII provides for methods of setting up, revising and fil-
ingi price lists and discount sheets and terms of sale and payment.
Article IXY sets forth the fair trade practices that have been espe-
cially designed to restrain unfair competition in this Subdivision.
Article ~X defines export territory and provides that fied price
lists are not applicable to export shipments.
Article XI contains the mandatory provisions contained in Seo-
tion 10 (b) of the Act and also pronldes for the submission of pro-
posed amendments to the Supplemental Code.
Article XII provides for the withdrawal of this Subdivision front
jurisdiction of the Basic Code Authority and for the continued








functioning of this Subdivision as an individual industry under its
own Code.
Article XIII: stipulates that there shall be no inequitable restric-
tions and provides against monopolies.
Article XIV gives the effective date of this Supplemental Code.
FIN DINGSI

The DeputyI Administrator in his final report to me on said Sup-
plemental Code havinga found as herein set forth and on the basis
rrf all the proceedings in this matter:
I find that:
(a) Said Supplemental Code is well designed to promote the
policies and purposes of Title I of the National Industrial Recovery
Act, including removal of obstructions to the free flow of interstate
aind foreign commerce which tend to diminish the amount thereof
and will provide for the general welfare by promoting the organiza-
tion of industry for the purpose of cooperative action among the
trade groups, by inducing and maintaining united action of labor
and management under atdequat~e governmental sanctions and super-
nision, by eliminating ulnfair comnpetit~ive. pracrtic~s by promoting the
fullest possible utilization of the present productive capacity ofin-
dustries, by avoiding undue restriction of production (except as may
be temporarily required), by increasing the consumption of indus-
trial and agricultural products through mecreasing puirchasing power,
byr reducing and relieving unemployment, by improving standards
o'f labor? and by otherwise rehabilitating industry.
(b) Said Subdivision normally employs not more than 50,000 em-
ployrees, and is not classified by me as a major industry.
(c) The Supplemental Code as approved complies in all respects
w'ith the pertinent provisions of said Title of said Act, including with-
out limitation Subsection (a) of Section 3, Subsection (a) of Section
7, and Subsection (b) of Section 10 thereof; and that the applicant
association is an industrial association truly representative of the
aforesaid Subdivision of the industry; and that said association im-
poses no inequitable restrictions on admission to membership t~herein.
(d) The Supplem'ental Code is not designed to and will not permit
monopolies or monopolistic practices.
(e) The Supplemaental Code is not designed t~o and will not elimi-
nat~e or oppress small enterprises and will not. Operate to discriminate
against t.hem.
(f) Those engaged in other steps of th~e economic process have not
been deprived of the right to be heard prior to approval of said
Supplemental Clode.
For these reasons, therefore, I have approved this Supplemental
Code, providedl that certain provisions relating to price publication
are stayed as stated in the Order.
Respectfully,
HUGH S. JOHNSON,
Ad mi~nistrator.
JUNE 7, 1934.













SUPPLEMIENTAlRY CODE O~F' ]FA~~IR COMSI[PE1]TITO~N FOR
THE ROLLING MIILL MArCHINlrERY AslND EQUIPMRIENT
INDUSTRY

A DIVISION OF THiE MlACHINERY AND ALLIED PRODUCTS INDUSTRY

ARTICLE I PURPOSES

To effectuate the policy of Title I of the NarTtionlll Industrirl 1Re-
covlery Act, t~he following provisions are establishled as a Sup~ple-
mental Code for the Rolling Mil1l Machinery and Equlipmnent Sub-
division of the Manchinery and Allied Products Industry, and together
with t~he Code. of Fair Competition of Mlachinery and ~Allie~d Prod-
ucts Industry, shall be the standard of fair competition for this
Subdivision and shall be bindling on every employer therein.
ARTICLE ~IIDEFINIrrows

"Applicant means thre Rolling Mill Machinery and Equripment
Association, a trade organization which organization is truly repre-
sentat~iv\e of) thlis Subdlvision, all members of which are elln gaged in
the manulfacture for sale o~f the products of the Rtolling1 MillM-
chinery and Equipmnent Subdivision of the Ma~chinlery and Allied
Products Industry.
'e Industry "' means the Mvlachinrery and Allied ]Products Industry,
as definedl in its Code of Fair Com~petition as approved by thne Presi-
dent, and as suchl definition may from time to time be amended.
'; Subdivision "' means the Rol~ling Mlill Machinery and Equipmnent
Subdivision of the M~~achinery anld Allied Producets IndlustryS as de-
fined and set forth in paragraph 29 Article IIC of the! Code of F'air
Competition of the Ma~chinery and Allied Products I[ndustry as
follows :
"' Rolling Mill Mlachinerly and Equipmenlt Subdiviision mneans the
manufacture for sale of rolling mill machinery anld equ~ipmecnt, in-
cludingr rolls (except hardened steel forged rolls unless made and
sold as a part of such rolling mill mnachinery and equipmentt) and
including roll stands, tables, shears, roll lathes, tube mill machinery
andallothr nxilaryequipm'ent and parts thereof used in. the roll-
ngand pr11ohe nssmg o~f ferrous and non-ferrous metals to produce"
cormmercially recognized rollingr-mill products, anld includes all those
en raged in such manufacture fobr sale."
'Code means th~e Code of Fair Competition of thle M~achinery
and Allied Products Industry as approved by the President Mlarch
17, 19341, and as from time to time amended.
"L Person means a, natural person, a. partnership, a corporation,
an association, a trust, a trustee, a trustee in bankrruptcy, a receiver
or other entity.








"L Employer means any person engaged in this Subdivision either
on his own behalf or as an employer of labor.
"L Thle Act means Title I of the National Industrial Recovery Act.
"' The Presidlent "' means the President of the United States.
The A~dministrator means the Administrator for Industrial
Recovery.
"i Basic Code Authority means the Code Authority for the
Machineryr and Allied Products Industry as constituted by the Code.
"i Code Authority means the Code Authority constituted for this
Subdivision as provided by the Code and by this Sup~plemental Code.
"i Group Code Authority means the Code Authority for any group
or product classification within this Subdivision.
Publish "' means to mnake available to the public.
ARIrrCLE III--EMPLOYMLENT PROVISIONS

The following Articles of the Code, vbz: Article III, Working
Hours "'; AtceI,"W es"; and A~rticle V, General Labor
Provisions are herebly made a part. of this Supplemnent.al Code, w~it~h
the same effect as if they were written into this Supplemental Code.
ARTICLE IV~-ADOPTION OF OTHER PROVISIONS OF CODE

The followino- Articles of t~he Code, vFiz: Article II "L Definitions "
and Article Y'f: "Aldministra.tion ", to the extent that they shall be
applicable to this Supplemental Code as such or as it. may hereafter
be admninister~ed as anl aultonomo1us Codle; Article VIII, "' Modifica-
tions and Term~ination "; and Article IX,' Withdraw~al are hereby
adopted an1d mad~ie a part of this Supplemental Code, with~ the same
effect; as if t~hey were written into this Supplemental Code.
ARTICLE V-AlDMIN~;ISTRA\TION

(a) A Code Authority for this Subdivision is hereby constituted
to administer, supervise and facilitate the enifor~cemnent of the Code
and of thiis Supplemiental Code in t~he manner and~ to the extent
providedl in t~he Code andl in this Supplemental Codle.
(b) During a period not to exceedl sixt~y (.60) days following the
effective date and pending the election of tlhe permanent Code A9u-
thority, the executiv-e committee of the Applicant shall constitute a
temporary Code Authority. The Administrator, in his discretion,
may appoint one addtitioinal member (without vote and without
expense to the Subdivision).
(c) The Applicant shall, by written notice sent by registered mail
to all employers known to the Applicant, call a mleeting of employers
to be held~ within, sixstyr (60j) dayvs aft.er the effective date for the
pulrpose of adopl~ting procedural rilles and1 regrulations for the election,
organization and operation of the permanent Code Authority and
electinrr a permannentt Code Aiuthority which shall consist of six
memnbeis one of wrhomi mlay be elected 'from and by the non-members
of the Alpplicant.. if such representation shall be so desired by such
non-members. Tihe Administrator in his discretion mnay appoint one
addlitional member (without vlote and without expense to the Subo-








division). The permanent Code Authority so elected and appointed
shall succeed the temporary Code Authority.
(d) Any employer shall be enitledl t~o vote at, the election of the
permanent Code Authorit~y and at other meetings of employers and
share in the benefits of the activities of Code Authority and mlay par-
ticipate in any endeavors of Code Authority in the p1repar~ation of
any amendments or revisions of, or additions or supplements to, this
Supplemental Code byr paingr or agrreeingr to payv to thae Code Author-
ity, as and2 when assessed, his pro rata share of the costs of adlmnuls-
tering thle Supplemental Code, computed on thle basis of each
employer's proportionately share to the annual average of sales billedl
f.o.b. plant for the preceding twno (2Z) calendlar years, as reported to
the Codle Authority, to be computed at the beginning of each calendarr
year and to apply through the t~hen current year, or other equ"itable
basis.
(e) Action by employers in any Subdivision meetings for the elec-
tion of Code Authority shall be by vote of the employers entitlecd to
vote as provided in Section (d) and subject to Section (c) of this
Article V, each such employer to have one vote only. Action by em-
ployers in any Subdivision meeting for the ad~optioln of prcicdurall
rules, revisions or addlitions to th~e Supp~lemental Cocde, or the tlrans-
action of other business of the Subdivision undecr this Suppleme3ntal
Code, shall be by vote of the employers in the SCubdlivisionl wcho are
ent~itledl to vote t.h~ereat as pr~ovidedl in Section (d), Article V, of the
Supplemental Code and are ~r~esent in person~" or by proxyS duly
executed~ alndl fledZ withl C~ode Authorityg ; cast and complluted~ in th~e
manner provided inl Section (d), Article VI of the Codce. All quels-
tions as to the numnber of votes which each employer shall be entitledl
to cost at any meetings of emnployers other than the~ meecting~ hcldl to
vote for the election of the permanent C'ode Authority hall br etectr-
minedl by Code Auithorit~y! in accordlance with Sectionl (d) Artile VTI
of the Code.
(f ) Employers in this Subdivision hanving a common interest and
common problems may be groupedl by Code Authiority for admin-
istrative purposes. There mnay be a Grou~rp Code~ Authlority approlved
or appointedl by Code Authlority for each such group.
(g) If formal complaint is madlie to Code AJuthority that prlO\.i-
sions of this Supplemental Code have~ been vPiolated by anly employer,
Code Authority or the proper Group Code Authority may~!, to th~e
ext.ent permitt~ed by the Act? clause such investigartionl or audit to be
made as may be dleemed necessary. If sulchl inveslt~L~tigatio is madre
by Group Code Authiority it shall report the result of such inv-esti-
galtion or audlit to Code Authority for action.
(h) Any vacancy on the Code Aiuthority, due to death or r~esigna-
tion o~r because a member thereof has ceased to be connectedl with
the Sub~division shall be filled at a m~eetingi of employers calledl by
Code A~uthority on at least ten days' notice by registered mail se~nt
to all employers in thle Subdivision and by a vote similar to the vote
by whiich the retired member was originally elected.
(i) The Clode Authority may appoint a Tradee Practice Comlmittee
which shall meet withn t~he Trade Practice Conunittees apIpointed~
under such other Codes as may be related to the Subdlivision for the
purpose of formulating fair trade practices to govern thie relation-








ships between production and distribution employers under this
Supplemental Code and under such others to the extent that such
fair trade practices may be proposed to the Administrator as amend-
ments to this Sup~plemental Code and such other Codes.
ARTICLE VTI--AcCOUNTING AND COSTING3

The Code Authority shall cause to be formulated an accounting
system and methods of cost findinga and/'or estimating capable of
use by all emplloy~ers of t~he Subdivision. After such system and
methlods hav\e been formulated, full details concerning t~hemn shall be
made available to all employers. Thereafter all employers shall
determine and, or estimate costs in accordance with the principles of
such~ methods.

ARTICLE VII--SELLINUG BELOW REASONABLE COST

WThen thle Code A~uthority. determines that an emergency exists
in this Subdivision and that the cause thereof is destructive price-
cutting such as to rendler ineffective or seriously endanger the main-
tenance of the provisions of this Supplemlental Code, the Code
Author~ity may enuse to be determined the lowest reasonable cost of
the produucts of this Subdivision, such determination to be subject
to such notice. and hearing as the Administrator may require. The
Administrator may approve, disapprove, or modify the determinat-
tion.. Ther~eafter, dur~inga the period of the emergency, it shall be
an unfair trade practice for any employer of t~he S$ubdivision to sell
or offers to sell any products of thle Subdivision for which the lowest
reasonable cost has been determined, at suich prices or upon such
terms or conditions of sale that the buyer will pay less therefore
than the lowest, reasonable cost of such products.
When it appears that conditions have changed, the Code Authority
upon its own initiative or upon the request of any interested party,
shall cause thle determination to be reviewed.

AIRrlCLE VIII PRICE I;ISTS

(a) If and when Code Authority determines that in any group of
the Subdivision it has been the generally recognized practice to sell
at spec~ifiedl product~ on the basis of net price lists, or price lists with
dliscoulnt sheets, and terms of sale and payment, each employer en-
gagedl in the manufacture of such product shall, within ten (10) days
arfter notice of such determination, file with Code Authority a net
price list, or a price list with discount sheet, as the case mary be, indi-
vidually p~repa"red by himn, showcing5 his current prices, or prices and
discocunts, and terms of' sale and payment for such specified product,
and Code Auxthority shall immediately publish and send copies there-
of to all known emnployers wnho are cooperating under this Supple-
mental Code as described in Art~icle Vl (d) and engaged in the
maniufac-ture of such specified products.
Rtevisedl price lists and/or discournt sheets and,'or terms of sale
and payment`" may3 he filed fromn time to time thereafter with the
Code Auithority by any such employer, to become operative upon the








date specified therein, but such revised price lists and/or dicon
sheets and/or terms of sale and payment shall be filed with th Code
Authority ten (10) days in advance of the operative date. Copies
thereof, with notice of the operative date specified, shall be immedi-
ately published and sent to all employers cooperating under ths
Supplemental Code as described in Article V (d), any of whomn
may file, if he so desires, revisions of his price lists and/or discount
sheets and/or terms of sale and payment, which shall become effective
upon the date when the revised price lists and/or discount, shecets
and/or terms of sale and payment first filed shall go into effect.'
(b) If and when Code Authority shall determine that in any
group of the Subdivision not now selling its product on the basis oif
price lists, with or without discount sheets, with terms of sal and
apament, the distribution or marketing conditions in the group are
te same as, or similar, to the distribution or marketing conditions
in a group where the use of price lists, with or without discount
sheets and terms of sale and payment is well recognized, and that a
system of selling on net price Lists or price lists and discount sheets
with terms of sale and payment for such specified product should be
put into effect in such group, then each employer in such group shall
within twenty (20) days after notice of such determination, file
with Clode Authority net price lists or price lists and, discount. sheets,
with terms of sale and payment, showing his prices and discounts
and terms of sale and payment, and such price lists and/or dliscount
sheets and/or terms of sale and payment may be thereafter revisedl
in the manner hereinbefore provid~ed. Proviaedl that Code Author-
ity shall make no determination to place any product of tihe Sub-
division (not now on a price list basis) on a price. list basis, as
provided in this Section, unless affirmative consent to such dteter-
mination is given by a mlajority vote of employers wF~ho are at that
time cooperat~ingr under this Slupplemental Code as descr~ibedl in
Article V (d), and are engaged mn manufacturing such product.
The eligibility requirements, method, and effect of such voting shall
be the same as is provided by Article V hereof.
(c) Code Authority, for the purpose of determiining thet lowest
reasonable costz shall, to the extent permitted by the Act, have power,
on its own initiative, or on the complaint of any employer, to inves-
tigate any price or the terms of sale and payment f~or any Iproduc~t
of any employer; and, for the. purpose of the investigation thereof,
to require such employer to furnish such information concerning
the cost of manufacturing and selling such product as Code Authclr-
ity shall deem necessary or proper for such purpose anld as the Act
may allow.
No employer shall sell directly or indirectly by any meaons wf hat
soever, any product of the Subdivision covered ypoiin fti
Article VIII at a price or at discounts or on terms of sale and payF-
ment, different from those provided in his own current net price
lists, or price lists and discount sheets, and terms of sale and~ payment.
'See paragraph 2 of order appynoving this Code.








ARTICLE IX--TRADE PRACTICES

Each~ of the following acts and practices is deemed to be inimical
to the best interests of the Subdivision and of the public and each
is, therefore, hereby declared to be, and to constitute, an unfair
method of competition, and 'is hereby prohibited, viz:
1. The secret payment or allowance of a rebate, refund, comzmis-
sion, credit, unearned discount., or excess allowance in the form of
m1onley or othe~rwise_ or the~ offerings or extending to any customer
any special service or privilegre not extended to all customers of the
samep class, for the puos o~l'~S f infiluencing a sale.
9. The payment, or promise to pay, to any agent, fiduciary, or
repr~esent.ative, of money or valuable thling~, with or without the
knowledlge of his principal, for the purpose of influencing any sale
to hiis principal. This provision shall not be construed t~o prohibit
free anid general distribution of articles commonly used for adver-
tising, except so far as such particles are actually used for comi-
mnercial bribery as hereinabove defined.
3. Any discrimination between purchasers of the same class, by
the sale of any standardized article having a published price, at
any price below the seller's published price, by means of direct or
indirect price concessions, or by means of any privilege not extended
to such purchasers generally.
4. The publishing of advertising (whether printed, radio, display
or of any oth-er nature) which is miisleading or inaccurate in any
material particular; or the misrepresenting of any goods (including
but without limitation its use, trade-markr, grade, quality, quantity,
origin, size, substance, character, nature, finish, materials, content
or preparation) or credlit terms, values, policies, services, or the
nature or form of the business conducted.
5. The publishiing or circulating of threats of suits for infringe-
mnent of patents or trade-marks, or of any other legal proceedings,
not. in good faith, which would tend to harass competitors or intimi-
date their customers.
6. The engaging in dest~rucrtie. njp-ricect~ting by any employer of
thiis Subd~ivision.

ARTICLE X--SALES FOR EXPORT

The provisions of this Supplemental Code concerning pricing and
marketing shall not. apply to direct export sales of any product or to
sales of any product destined ultimately for export. The terra
" export'" shall include all shipments to all places without the several
states of the UInited SCtates and the District of Columbia; provided,
however, thalt no shipment to ainy territory or possession of the
United SCtates shafll be considered an export when any employer is
engag~Led in the Subdivision in such territory or possession.
ARTICLE ?iI RI0DIFICATIONS

(a) As provided by Section 10 (b:) of the Act, the President may
fromi~ timne to time. cancel or modify any order, approval, license, rule
or regulation issued under Title I of the Alct~








(b) Any amendments, additions, revisions, or supplements~ of this
Supplemental Code, proposed by Code Authiority, andi nothorizedd by
the affirmative vote of a majority of the emnploy'ers, shall be in fuil
force and effect upon approval by the Presidenrt.. Th iiblt
requirement nts, mePthodl andl effect. of suc1h otntingr shall1 be the samlle as
provided by1 Article V (d) hereof.
ArT~ICLE SII -1ITHDRAWL

UpIon thlirty dayl~s' notice to theC Basic Code! Aquhorityr awl to the
Adlm i nistrantor, t h is Su bd i visi oi n m, u pon thle conlcur rri ng~ utl i rmalt i ve
vote of emiployer~s within thle saidl Subdiviision entitledl to cast tw\o-
t~hirds or mlore of all thle voctes that might bec cast by a~ll employers
within the Suibdlivisionl entitled1 to vote th~ereon, withdraw flroml thle
jurisdiction of thle Basic Codle Author~ity. The eligib~ility of vo~tcrs
and the methodl andi effect of such voting shall be ini n!cordanlllce w~ith
the provisions of Article VT hereof. After and in the event sm-rh
withdrawal is accomplishedi this Suipplemental Code~, togerther with
the provisions of thle Code, shall becomel and be the sole codle goverin-
ing this Subdivision, andl the C'ode A~uthor'ity shall fo~r this iiht-
division become andi be t~h sle SI Cod(e Authorityr anrd shall p~lErforml
all the functions w~ithl respc~t thereto.

A rTICLE iiI I- nI10N OP OLIES

Applicant imposes and shiall impose no inequitable restrictions on.
membership th~erein. The Supplemecntal Code presented by it is not
designed to promjnote mono-posly, andi shall not be so construedT or
applied as to oppress or eliminate small enterprises or discrimrinate
against thleml, nd is dlesigned t~o effectuate the policy of thne Act.
ARTICLE XIVT-EFFECTIVE DATE

This Supp~lemlental Glode shall become effective and binding on all
persons engagred in the Subdivision on the eleventh day af~ter its
approval by the President.
Approved Code No. 3417--Supplement. No. 14.
Registry No. 1399~-36.




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