Supplementary code of fair competition for the cutlery, manicure implement and painters and paperhangers tool manufactur...


Material Information

Supplementary code of fair competition for the cutlery, manicure implement and painters and paperhangers tool manufacturing and assembling industry as approved on March 26, 1934
Portion of title:
Cutlery, manicure implement and painters and paperhangers tool manufacturing and assembling industry
Physical Description:
13 p. : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Implements, utensils, etc -- United States   ( lcsh )
Cutlery trade -- United States   ( lcsh )
Tools   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1108-1-05."
General Note:
"Approved Code No. 84--Supplement No. 10."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004950798
oclc - 63655173
System ID:

Full Text







For sale by the Superintendent of Doculments, WashingtoJn, D.C. - Price 5 cents

Approved Code No. 84--Supplement No. 10

Registry No. 1108--1--05





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.

Atlanta, Ga.: 504 Post Of~ee Building.
Birmuingrham, Alla.: 257 Federal Building.
Boston, M~ass.: 1801 Customlhouse.
Buffalo, N.Y'.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 17i06, 201 Northl Wells Street.
Clevela7nd, Ohio: Chamber of Commerce.
Dallas. Tex.: Chamber of Commlerce Building.
Detroit, Mlich.; 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kanusas City, M~o.: 1018 Baltimore Avenue.
Los Angeles, Calif.: 1163 South BroadwayS.
Louisville, Ky..: 408 Federal Building.
M~emphis, Teun.: 229 Federal Building.
M~inneapolis, Mion.: 213 Federal Buildling.
New Orleans, La.: Room 225-A, Custombouse.
New Y'orki, N.Y.: 734 Customhouse.
Norfolk, Va.: 4106 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oregr.: 215 New Post Office Building.
St. Louis, Mlo.: 506 Olive Street.
San Francisco, Calif.: 310 Custombouse.
Seattle, Wash.: 809 Federal Office Building.

Approved Code No. 84--Supplement No. 110



As Approved on March 26, 1934

An application having been dluly made p~ursuant to and in ~full
com~pliance with thle provisions of Titile I of the National Industrial
Recovery Act, approved June 16. 1033, andc in accord~ance -with the
provisions of Section I of Ar.ticle V'I of the Basic Code for the Fiabri-
cated M~etal Prodlucts Mlanufact during and 1\letnl Fiinishing and. Metal
Coating Industrly, app~roved Novemlber ", 1933, for approval of a.
Supplemnentary Code of Fair Conpet~ition for the Cutlery, Mlanicuree
Implement andt Painter~s andr Pap~erhalngrsl Tool Mlanufacturing and
Assembling Industry, andc hearing having been durly held thereon;
andi the anlnexed report on said Coder, containing findl-
ings withi respect thereto, h1aving been madce and direc~tedl to the
President :
NOW~, THEREFORE, o~n behanlf of th~e Preside~nt. of the Uniited
States, I! Huigh S. Johnson, Admninistrantor for Industrial Recove~ry,
p~ursuant to authloritby vested~ in me by Executive Orders of the Presi-
dent, including Executive Or~der No,. 6543-A dated Dcemberl~ 1 30,
1933, and otherwise; do hereby incorplor.ate by: reference said annexesd
report and do find that saidi Supplenentar'v Code complies in all
respects w~ith the pertinent prlovisions and wrill pr~omocte thze policy
andi purposes of saidl Title of said Act; andl do hereby order that
said Supplemnentary Codle of Fair C~ompetition be and it is hereby
approved; p~rovidedl, however, that the provisions of Article VII,
Paragrap~h (:a), insofar as they pres-cribe a waitingr period betwTeenl
theP filing withi thle Codle Authority andi the effec-tivee date of revisedl
price lists or rev.isedl terms and conditions of sale be and they are
40058"----42,3-151--31 <11~

hereby stayed pending my further Order either within a period of
sixty day!s from the effective date of this Supplementary Code or
after the completion orf a study of open price: associations now being
conducted by thle National Recovery Adminiiistration.
Admini~strlator for I2dustr'ial Recovery.
Approval recommended :
Diivision Admlinistr~ator.
A~lar~ch ff, 1934~.


The Wthite House.
STIR: Th is is a report. ol t he Sup~plemnentutry Code of Fair Coma-
p~etition for the Cut~lery, Masnicure Implemient and Painters and
Pape~ha~ngers Tool M~anufactur~ing andl Assemlblilgr Industry, a dlivi-
sion of the Fabricated M~etal Prodnects Rlanufacturin g n ea
Finishing andl Metnal Coating Industry, thle hearing havng bu3een
conducted thereon inl Wa'shinlgton, D.C.! January 23, 1934 in accord-
anice with the provisions of Title I of the National Industrial Re-
rov'er~y Act.

The Cutlery, Alanicure Implemecnt andl Painiter~s and ]Pa~er~hange rs
Tool A~lanufueturing~ and~ Assemblllina Inldustryl, being truly repre-
sentat~ive of this dliv'jison of thle Fanbricatedl 10etal Products Manu-
factur~ing andl 1\etal Finishing and~ 1\letal Conting Industry, has
elected to avail itself of the options of submnitting a Supplemientneyy
Code of Fair Comnpetition, as pr~ovid~ed- for in Section 1 of Article
VI of the Basic Code, for thle Fa~r~icated 1\et~al Products Manufac-
tur~ing and Mletal Finishing arllnd etnal Coatinlg I[ndustry approved
by y~ou on th~e econl cany of Novlnember 1!);3.
miscuit OF THE CODE

ArIt icle I states the purpos-e of th~e Supplemnentary Code.
Article II accurately dlefinies specci'c termiis employed in the Supple-
mlent.a ry Clode.
Article III. This Industry is a division of the Fabhricatedl Metal
Products l~ianufacturing and 1\Ietal Finishing and Jfetal Contingr
Industrys andl the labor provisions of its Bansic Code, as approved
November 2, 1933, are t-he labor provisions of this Supplementary
Article IV establishes a Sup~plementary Code Aluthlority consisct-
ing of six (6) members, one miember of which has been eetdb
an Executive Comnmittee of eachi of the six sections of the Industry,
which E~xecutive C'omm~ittee has in turn been elected by the mem-n
ber~s of the six sections of the IndustryS respectively at a meeting"
called by the Temporary Codle Aut.hority, and gives the Adminis-
trat~or t~he authority to appoint one addtitional mnembeir without vote
andi without expense to thie Indcustry, unless thie Code AuthorityT
agrees to pay such expense, and provides machinery for obtaining
statistics and the admllinistrantion of thle Sup~plemientary Code.
Article V providles for an a~cc~ounting sygsteml and methods of cost
fi ndinug and/'or estimIa t ing.

Article V'I pr1ovide! s for de~termnining the lowest reasonable cost of
the products of this Ind~ustry.
Article V'II provides~ methods of setting p aindAr revising price
Article V'III sets fo~thh the unfair trade practices of this Supple-
mlentary Code which has beetn especially designed to offset unfair
competition in thiis division of the Industry.
Article IX provides against mnonop~olies and mionopol istic
pra~nct ices~.
Article X contains the mlalndtoryy pr~ovisions contarinedl in LSection
10 (b) of the Act andl also prov-ides for the submission of proposed
.amendmlentss to the Supplementar~y Code.
Article XI recognizes that price increases be limnitedi to actual
additional increase in the seller's costs.
Article XII states the effectiveo diate and duration of thiis
Sup'plemnentary3 Codle.

Thle Assisiltant Deuty Adminillst~ trato in his final replor~t to mne on
sa id Sulpplem~enta ry (Coder ha ving found as herein set. fo't h and on
the bunsi~ of all the pr1oceedingsl~~ in this mlatter:
I find- that:
(a) Said SuppI'''lementary C'od-e is w~ell designed2 to promote the
policies andl purpi~oses of Title I of the National Ind~ustrial Recovery
Act, includling r~emova\l o~f obstructionss to thne free flow of interstate
andl fore~ign commelnCrce whlich tendl to diminis-h the amnounnt thereof
andl will plrov`ide forl the gneral':7 welfare byV promnoting the orgraniza-
tion oif indus~~try for the purpose?~ts of cooperative action among the
trande grrloups,~ by~ inluC'ing aild malinta~ining~ united action of labor
andl managrrement under adrquate gove.rrnmentan l snctions and super-
nision, byl chanai nt ing uln f i r compe~ ~ct it i ve1 p~raIt iceS, by promolt mg c the
fullest. possible uitilization of the presejtnt p~rodluctive capacity of in-
dustr~ies, by! avoidingf undulee r~estriction of p:rodlctionn (except as ma~y
be temnporar~ily required)j, by increasingly thne co~nsumlption of industrial
andl a r iiculltulrl products throughlFI inlcrea~Sing~ pulrchasi ng power, b
reducing and relieving uuenemloymient by improvingr standards o
labor, andl byohrie eaiiain nut
(b) Said'' tii~s ~hblttn c n s'~ Industry' normnlily emplov,?s not m-or~e than .510,000 em-
ployees- andl is not alnssifiedl by me as a major industry.
(c) The Su pplemnenta ry Codle as a pprovedl complies in all respects
with the pertinent provisions of saidl Title of said Act., including
wTithlout limnitation Subsectio~n (a) of Section 3, Subsection (a) of
Section 7, alnd Subsection (b) of SCection 10 thereof; and that the
appjlicant group is an industrial gro!.up truly r~epresentative of the
aforesaid Industr~y; andl that said association imposes no inequitable
retstr~ictions on adlmission to memnber~ship thnerein.
(d ) The Su pp-lemneintary Code is niot designed to a nd will not p~er-
mnit monopolies or monopolistic practices.
(e) The S~uPplementaryI Code is not designed to andl will not elimi-
nate or oIppre~ss small enterprises andl will not. Operate to discriminate
against themH.

(f) Those engaged in other steps of th economic process have not
been deprived of the right to be heard prior to approval of said
Supplementary C~ode.
For these reasons, therefore, I have approved this Supplementary
Adlm in istrator.
MA~RCH eC), 1Q34.




To eff'ectuat~e the police~ of Title I of the' National Industrial
Recovery Act, the following provisions are established as a Supple-
rnentury~ Code of Falir Comnpetit~ion for the Cutlery M~anufacturing
aIndl Assemnbling Industry, pursulant. to Article VI of the Basic Code
of Fair Competition fo tlhe Fabricated Mfetal Products Mlanufac-
turing and M~etal Finishing andi Mietal Coat~ing Industry approved
by tlhe Presidelt. of the United States on the 2nd day of November
19333 and the provisions of this Suppilementary Code shall be the
standrlld of fair competition for and shall be binding upon every
members~ thereof.

The termn Clutlery, Monlicure Implemecnt and Painters and Paper-
hangersr Tool Marnuifactuing;n and A-ssemnbling Industry, thereafter
referred to as thie "' Industry` is defined to mean thie manufacture
and 'or assejmbly for sale by the manufacturer or assembler of Pocket
Knives of all kinds, Hunting Knives, Table knives of all kinds,
exceptt those mounted with silver or hollow handles of pressed or
mnould~ed base metal,) Table Forks made of steel or any of the several
steel alloys, (except when mounted w-ithi silver or hollow handles of
p~ressedl or moulded base metal.) various types of Table Cutleryv such
as Butter knives, Pie servers and Spoons with blades of steel or aniy
of the several steel alloys, (except when miountedl wFit~h silver or
hollow-\ ha~ndles, as described above.) Carvers of all kinds, (with
the samie exceptions as to mounting as governing Table knives andr
forks.,) Householdl knives, Butchler, Professional, Trade knives and
Spatulns of all kcinds, mounted writh handles or the finished or semi-
finished blades for any of the foregoing items, Butcher's Cleavers,
Str~aight R~azors, Scissiors, Sh~ear~s, Shears, Pruners, Tinl Snips,
M~aniculre Imiplements, Mnlhicure Sjtick~s, Painters andr Pnperhangers
Tools andi Equipment, (other than suich products; as ar~e specifically
covered in thle alpprov~ed Codes for the Ladder Industry and the
Brulsh Indrustry.,) and all ot~her Cutlery products which are the
na~tural offilintes of the above andl are generally accepted and defined
byv masnufactul~rer andt distribit~ors as Ciutlery.
The term employee as u~sedl h~erein includes anyone engaged in
the Indusitry in anny enplacity receivingr compensation for his services,

irrespective of the nature or methodl of paymlent of such
The termn employers' s uIsed here'ini includeslc anyonerll by wh'loml
any such employee is comlpensatedl or emplloyed.
The ter~m member of the Indulstry "' as usedr hlerecin ilcrludes but
without imitation any~ indcividual~, partner~ship, a ssneintion, corp~o-
ration or other form of eznterprise,, engagedt in the Indulstry as ant
employer or onl his or its owrn behalfll.
The termi Section as used herein is defined to mnean a su~lbdivisio n
of thle Industry already established or which ma~y be established of
which there ar~e niow six dlesignated as
1. Table and Tradle K~nife Section.
2. Pocket K~nife Section.
3. Scissors and Shearis Section.
4. Alaniculre Implement Section.
5. Straight KRzor Section.
6. Painters &~ Paperhangers Tool Equipmentn Section.
Thec termls '' Presidienlt ", "A;ct ", andl "Administrator as used
herein shanll mnean respectively the Presidenlt of the U3nited States,
the National TIndustrialI Rcr\ecover Act. and the Adm~lin istrato(-r for
Induist rial Recov\ery.
The term Basic Code as us~edl herein is definedl to mean the
Basic Code of Fair Competitionl for' th~e Fabr~iented Me~tal P~roducts
lifanufa~ctur~ing and~ Metal Finishiii nlg andfetal Coating Induslltr~y, as
appro-ved by the Pres~ident on the 9rnd daly of Nliovember, ]1933.
Thle terml "L Sulpp~Clementaryn Cole ~Authority "' as used herein means
the agency which~ is to, adminiiter this Supp-lemnc~taryS Code as here-
innfter provided.
The term ''A~ssciation "' as used her1ein, is defined to mieanl the
Amier~ican Cutlery M~anufacturers Associatio~n or its successor.


Th~is TIndulstry~ is a1 division of the Fab~riented7 Metal Products
Mannufacturing and 1\Ietal Finish~inr and MetlpR Contingc i Industry,
andI without limnitationl the wage, hour and labor pr~ovisions in
Articlce III of its basic codle as approved by the President November
2, 19:33, incl udcing ~Scct ion 10of said~ Ar!t iclelllIby which thep~rovisions
of Sulb-sections (1), (2) andl (3) of Section 7 (a) of Title I of the
Act ar'e madle conditions of this Code, are specifically incorporated
her~ein andl madle a pa rt ier'eof as the wrnge,, hour and labor provisions
of this Suippliementary C~ode.


rSECTrION 1. Th~e Supplementary Code Authority is hereby consti-
tutedl the agency to adminrister thle prov'isions of this Supp~lementary
SECTION E). The members of the Supll~>emellntry Code Antlhority
shall be elected as follows: Each section of the Induistry shall within
thiirty days after thie effective dlate hereof, andc annually hratr
by letter ballot or otherwise as mayr be approved by th dmlinis-
trator, elect an Exectitive Committee of fromi to three to seven ,mem-

bers byl a maojor~ity vote of the members of thle Industry comprising
that section. The Execultive Comimittee shall elect one of their
members as a mnemiber of thle Supplemnentary Code Authority, and
the Supplemnentary C'ode Aut~hority shall consist of one member
from each section of the Industry. In addition to the members
above provided, the Administrator mnay appoint one member who
shabll serve without vot.e andt without expense to the Industry unless
the Supplement~ary Code Authority agrees to pay such expenses.
The rep~resentativee who mnay be appointed by the Ach~ninistrator shall
be given reasonable notice of, and may sit at all meetings of, the
Supplementary Code Authority. Upon a vacancy occurrm~ig the
Supp~lement~ary3 Code Authority shall elect a new member from the
section of the Industry niot. represented on the Supplemlentary Code
SECTION ;3. The Supplementary Code Authority "' is hereby
constitutedl the Agreny to administer the provisions of thlis Supple-
mentary C'ode and to collect and distribute all statistical reports of
the Ind~ustry.
SEcTION 4. The Supp~lementary Code Authlority shiall also from
time to time furnish th~e Basic Code Authority,? designated in said
Basic Codle, such information as may83 be required to be furnished
under the terms of saidl Basic Code.
S~EcTION 5. NOtliing contained in this Supplemenitary Code shall
constitute the mlembers of the, Supplemientaryr Cod~e Authlorityy part-
nlers for any purpose. Nor shall any member of the Supplemnentary
Code A~uthority exercising r~easonable diligence inl the conduct, of his
duties her~eunder, be liable inl any manner to anyone for any act of
anly other member, officer, agent. or employees of thle Supplementar~y
Code Authority f'or any action or omission to act under this
Suppllementary Code exceptb for his own wilful misfeasance or
SECTION f>. The Supplementary Code Author~ity shall have the
following powers anid duties:
(a) To adopt bylaws anld rules and regulations for, and keep
records of its procedure andl for the administration and enforcement
of this Sup~plemnentary Code, subject t~o such rules and regulations
as the Admninistrato miay prescribe.
(b) To obtain fromn the Industry such information, reports and
statistics as are required for the administration of this Supplemen-
tary Code which shanll be furnished by all members of the Industry
without unreasonable 'delay2, provided that nothing in this Supple-
menta ry Code shall relieve any member of the Industry of any exist-
ing obligation to furnish reports to any Governmnent agency. Any
information or statistics w~h ich may be called for which may be o
a confidential nature, shall be collected and compiled by a suitable
agent (not. a mlember of or connected wvith a member of the Indus-
try) selected by the Supplementar~y Code A4uthority who may be a
per~manentt employee. The data anld,'or statistics so collected shall
be furnished to th~e Supplementary Code Authority or the Industry
only in combination with such other information of the same typ~le
and in such formi as will not disclose the individual data and/or sta-
tistics furnished by any single member of the Industry. No mem~-
ber of the Supplementary Code Authority or other person shall

at any time have necess to or be fur~nishedl witi aIny info~rnaiiron by
said agent which would dlisclose the conid~tentiail infolrmaltion fur-
nished by any single mlemnber of the Indulstlry, ecept~ in the cnoe of
a violation of this Supp~lementalry Code inl which case~ all per~ltilent,
data and information .shaull be laidT befolr thie Supplle'~ll~ln ntay Code
Authority for its considi~eration and decision.
(c) To use any such Traduce Alssociationl nd~ ot-her agencies us it
deemls proper for the calrrying out of any of its activities 'r~ovided
for herein, provided that nohingiibr herein shall relieve th~e Suple-
menta~ry Code Aulthority of its duties or responsibiities ulnder hi
Supplem~entary Clode andi that such Tradle Associations anId agencies
shall at all timle~s be subject to andc comply with thle provisions hereof.
(d) To make recommnendantions to the Admiinistrantori for thle co-
ordination of the administration of this Supleme~lltntar~y Cod~e w~ith
such other Codes, if any, as many be r'elated~ to the TInduistry.
(e) To dlistribu~te the expesl' le in~curlredl in. connection w\ith its ac-
tivities relative to thle admrlinistratio n of this Supp~l'll'lementay CoLde
amlongr the~i membel~ rs o:f the Inldustry, the share of said expense to be
paid by3 eachl members of t~he Industry, to be basedI upon the vo~lume
of business; nd 'orl uc~h other factors as thre SupplemllentaryT Code
Aut~thorityr may prlescr~ibe, and eve~ry member of ther I~ndustry subject
to the jurisdiction of this Suplplemnentaryr Code shall pay! to the Sup-
pilementa ry? Code Au~thority his or its proportionate shlare of the cost
of maintain-ing suchl Suppelemellntry Codett Author~ity. Wh1en such
proportionate share to be paid by eachl member of the Indurstry has
been determiined~, the S~upplemetlntary~y Codet Authorlitify clhll nlotify
each member of the Indlustry3 of th-e amount thereof, and said zemz-
ber of thle Indutlry~ shall promptly pa"y said amount to the Sulpple-
mentary Co!!e Aut~hor~ity at slcth times and in such .installmlentsu as
the SulPleimenntary Cod)e Au~thor1ity mnay req~uire.' AnyT unrefasonable
declay il n making such paymlent or refusal to maknle samze ihllnl be a
violation of th~is Suppllemrentary Code.
SECTION 7. TheC Supllplemlenta~ry Gtodec Authlor~ity shall be and
hereby is empor-weredl ulponl compla-1~ int duly madc~e to it in. writ ng
or upon its ow~n initiative, to ma~ke jsuchT iInqun-y' and mvetstigartion
into thie operation of thiis Supp,~le~nwntaryl Cod~e as m~ay be necessary;
subject. to such rulles anld regulations as the Administratorl mnay
SECTrIN S. Thle Suplem~enlrtary~ Codeo Authority shall, as soo~n as
practical. formlarlte certain sta~ndardcs of quality, u~ndler various
classifications, for those products of the. Industry as are~ adaptedi
to standar~dizationr and~ simlplification, which shall become the sta~nd-
ards for the Industry upon upprovaol by thle Admirinist~tratr.
SCECTION 9. Enc~h trande or indu~str~ial association directly or indi-
rec~tly participating9 in the selection or activities of th~e Code A~u-
thor~ity sh-all (1) impose no inequitable restrictions on member-
ship,. and (2) submit to thec Admiinistlrator' true copies of its ar~ticlIes
of associationl, by law~s, regulations, and any amnendmllent s wh`len
madle therleto, together withl such other informnatio-n as to memcnber-
ship, organization, andl activities as the Admlninistratoo r mnay deemn
necessary to eff'ectuate thre p~urpo~ses of the Act.
SECTION 10. In ordler that t~he CIode Aluthority shalln at all times he
truly repIreselt~ative of the in~dustr~y and in other respects comply


with the provisions of the Act., t.he Admlinistrator may prescribe
such hearings as he may deem proper; and thereafter if he shall
find that the Code Authority is not t.ruly representative or does
not inl other respects comnply with the provisions of the Act, may
require an appropriate modification in the method of selection o
the Code Authority.
SECTION 11. If the Administrator shall determiine that any action
of the Supplemnentary Code A~uthority or any agency thereof may
be unfair or unjust or contrary to the public interest, the Ad-
mninistrator miay, after reasonable endeav-or, to confer with the
Supplemlentarly Code Authority, require that such action be sus-
pendedi to afford an opportunity for investigation of th~e merits of
such action and further consideration by the Supplementary Code
Author'ity or agency ~pndling,,.,,. final action which shall not be effective
unless thre Administrator approves or unless he shiall fail to dis-
approve after 30> days' notice to himi of intention to proceed wTith
such action inl it~s original or modlifiedl formi.

SEC'TION 1. \flith re~pect to that portion of his product wThich is
within thle Industry, every~ employers shall use anl accounting system
for determining his allowable cost which conforms to the principles
of, and is at. least. as detailed andl complete ns, the uniform method of
accounting and uniform methodl of costing, to be formulated by the
Supplemnentaryr~ Codle Authority and approved by the Adniinistrator
w~ith .such variations thlerefroml as mnay be required by t~he individual
condlitions affecting any employer or' group of employers! and as may
be apprLoved by thel Supplemnentary Codc A~uthority and the Adminl-
i st rato r.
SECTION 2. WVhen the S~uppll'"ementry Code Authority determines
thnt, an emergiencyS exists in thiis Indlustry and that the cause thereof
is destructive price-cutting suich as to render ineffective or seriously
endanger the maintenance of thee provisions of this Supplementury
Code, the Su pplemenltary Code Authority may cause to be determined
the lowest reasonable cost. of the pr~oducts of this Industry, such de-
terminationi to be subject to such notice and hearing as the Adminis-
t~lrator mayr reqture~. The Administrator may approve, disapprove,
or modify the determination. Thereafter, during the period of the
emnergency, it shall b~e an unfair trade practice for any~ mem-~ber of the
industry to sell or- offer to sell any products of the industry for which
the lowest r~easonable cost, has b~een determined at such prices or upon
such terms or conditions of sale thiat the buer will pay less therefore
than the lowest reasonable cost of such products.
When it appears that conditions have changed! the Supplementary
Code Aut~hority, upon its own initiative or' upon the request of any
interested party, shall cause the dletermiination to be reviewed.

(a) No employer shall sell or exchange any product of the Indus-
try, manufactured or assembledl by him at a price, or upon terms and
conditions, that wrill result in the purchaser paying for the goods

received, less thian the allowable cost thereof to the slelle, determined
in accordance writhi a uniform mecthod of cost~iiinl aov-e decscrib~ed or
as may be determined by the Supplementne~y Co?1e A~uthocrity as pro-
vided in Sectioni 2 of Ar~ticlce V7 providedl, hlow\ever, thalt tlropped' linies,
or seconds, or inventories w~hichl must be disposed of by any emnploye r,,
may b~e so~ld at anyL~ price? anld onl anly terms and con~ditionsr but only
if su~ch em~ployier,, not lesis thian 10 durl\s be~fore said dlisposan has filed
wi th t he SulpplemIer ntary Cod7e A u thor~ity, a c t atemenit in wr Iit i gr, set-
tingr forth the fact of, andl reasons for, such p~op~osed d~isposal; and
Supp~lementary Code Authority has not, before thie termlnation of
suIch 10 day period, in w~riting dcisapp_1roved thne prpsddipsl
suich disapproval shall onlyr be madel wnhen alleged facts ar~e misreplre-
sented .
(b) Proviedl, fur~thcr. that the Supp~le~ment aryJ Code Authlority,
upoiin aplication to it shall gralnt nperissioi; n to any employer to sell
below his costs in orde~r thant he maiy mneet competitive prices filed in
accordance with the provisionsi of Ar~ticle VI[I (a) of this S-cupplle-
mlentafry Codle, or to meet co~mpetitionl from products; of equivalent
dlesign, chunrneter, qua~lity,. or specifientions, manulfacturled outside the
Unlited Startes: and prov,\ided further, that -the pr~ovisionls of this
paragranph shall not bet deecmed to apply to or to affect thec sale of any
proiuct.t for direct shipment. in export trade by any mlember1 of thie
Industry within thc meaning of tle ter~m '" report tradle )" as it is
u~spr in thec Expor~t Trade Act.


(an) W~ithinl tel~cn day after this Suppleme~llntar~y Code b~eenmellcs ef-
fective, echc mnember of the Inldustry shall file w~ith the Supp~le-
mentar~y C'ode Au~thiority. a net price list, or pr1ice list and discoulnt
sheet, as thle case mayn~ be, in~dividuatlly prepare~td by him shnowingP his
current minimnuml nct. pricess, or prices and maxsimuim disccounts, terms
of payment, and freigiht or other allowa~nces appglyngr to his stanld-
ard mler'chand:I Se offe'~lred to the trade wnhich~ prices list shall be imme-
diately availab~le to all ktnown manufa~f cturers of simnilar products
and sh~all be ornilable aIt the office of the Suplem~~rentary Code Au-
thority to all inter~ested parties accordling to their an~ssification, saidl
classifca.t.ionl to ber set, up by the Supplementary Cod~e, authority
withiin sixty (60) day~s andI aippoved by the idminiiist rator. Re-
visedl price lists w\ith~ or1 withou~lt d'iscounlt sheets shall be filedl fr~om
timle to time thereafter. w~ith thie Supplemelntry y Code Authiorityi byp
any! manu fncet.u rerl to b~ecocme effective fiv~e des\' from the date of such
filingr. Nrotice of such change shall be immedliately selt. by the Sup-
p'lementary? C'odel Authority to all~known manufacturers of similar
pr~odu~cts w~ho thelelc:reupon may fi~le, if they so desire, revisions of their
price list or discount sheet which shall becomen effective upon the
date whl-en thle revisedl pr1ice list or dliscoulnt. sh~eet. first filed shall go
inlto effect, plrov\ided~ th~at he shall not establish prices lower, nor
dliscounlts greater, nor condlitions; of sale mnore favorabnle thnan those
containedc- in thle r'evlised list first filed.l
(b) No emnployeri shall sell directly or indrir~ectly byT anyens
tricki, device or subt~er~fug~c whalitsoever, any product of the Idsr
a See pamragraph 2 of border approving this Code.


cove;re by the pr~ovisionls of this Article at a price lower or at dis-
counlts greater or' on mnore fav~orable terms of payment than those
provided in his filedi current price lists and discount sheets except
as pr!ovided in Article V'I.

In add~itioni to the unfair trade practices covered in Article V of
the B3asic C~ode, for all purposes of this Supplementaryg Code, the
followring2 described acts shall constitute unfair practices. Alny
mnember of the Industry who shall directly or indirectly, through
any officer, employees, agent or representatives, use or employ any
of such unfair pranctices shall be guilty of a violation of this Supple-
meiintry Code.
(1) The post dating of invoices for more than 90 days fr~om date
of shipment except oni agricultural imiplements.
(2) The allowing of better terms of payment t~han 2%c 10th E.O.M.
nlet 30) da vs E.O.MI.
(3) Thie making or entering into any newv contract or agreement
or the extension of any existingr contract. or nareemnent beyond July
1, 1934, the effect of which wrill amount t~o delivery on consigmlnent
of any products of the Indlustry except. as m1ay be mnodified by the
Supplem~lentary Code Authlority and approved by the Admninistrator.
(4) Acceptinga a contract or conitracts for either stock or special
brandr mnerchandise at a fixed price without n corresponding com-
mnitmnent on the part of the purchaser to buy a specified quantity
of each andl everyv itemi, all to be shipped and invoiced within one
(5) No member ofl the Inidustry~ shall attempt to induce the breach
of a written contract between a compget~itor and his employee, or
cuistomer or source of s~upp~ly; nor shall any such interfere
with or obstr~uct the performance of such contractual duties or
be rv lce.
(6) The miisbranndingi of materials in a manner that wrill tend to
dleceive the consumer as to the quality .or type of materials used.
(7i) Fior plrpnos of influe~ncing a sale no employee shall withhold
from, or insert. in anyr invoice at false record, wFholly or in part, of
the transaction represented on the face thereof, nor pay or allow
secret r~ebates, refundls, credits, unearned discounts (whether in the
formn of money pr otherwisee, or extend to certain purchasers prices,
services, or privilegres not extended to all purchasers under like

No provision in this Supplemenltary Code shall be so applied as
to p)ermnitt monopolies or monopolistic practices, or to elimiinate,
oppress or diserinmnate agaainst small enterprises.

SECTION 1. This Sup>plementa~ry Code and all provisions thereof
are expressly made subject. to the right. of the President in accordance

with provisions of sub-section (b) of section 10 oif the A~ct, frocm
timle to time to cancel or~ modify anyi~ ordrci, approval,1 license, rule
or regulationl issued lunderr said Act.
SECT.ION B. This Sulpp11lmentury Codte, xcepclt as to prov,\isions
required by thle Act, miay be modiifiedl on thle basis of experience or
changes in circumlst ances, such mlodlifientions to b~e ba~sed~ upon appli-
ention by! tihe Supp~lllementary' C~ode Auth Iority to th Admr IrinIIistrator
and such notice anl hearings as he shl~nl specify andc to becomlne
effective andc to be a part of this Sup~plemcnt aryS Code upon apprllovall
by the Admilni strator.

Whler~eas th~e policy of the AIct to. inlcr~eae r~eal purchasing~ power
wrill be madle more difficult of c:onlsulmmation if prices of gnoods and
ser~vices; incr~ease as ranpidly nas wages, it is recognizel that pr~ic~e
incr~eases except suchl as may be r~equir~ed to meet. individual costs
shiouldl be declay~ed, burt w~hen madce, such increases should, so far as
po0ssible, b~e limited to actual a~dditionall incrleaseS inl thie seller's c-osts.

Th~is Sup~plemlentary Codle shanll b~elome effect ive at 1_2:01 A. MI/.
onl the 10~th dlay after its ap~provanl by th~e Pr~esidlent and shall continue
in effect until Jurne 16 1935, or t.he ear~liest dlate prior theretco on. which
the Presidlent shall, by proclamantion, or the Congress shall by joint,
resolution declare that the emnergency rec-ognized by Title I of the
National Industrial Recovery Act has ended.
Approvecd Code No. 84-S-upplemenit No. 10.
Re~gistry No. 1108-Y-1-05.

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