NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
UNIV. OF FL LIS3.
For sale by the Superintendent of Documents, Washington, D).C. rice 5 center
Approved Code No. 84, Supplement No. 8
Registry No. 1107-21-01
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
(A Division of the Fabricated Metal Produqts
Manufacturing and Metal Finishing
and Metal Coating Industry)
AS APPROVED ON JANUARY 31, 1934
TShis publication is for sale by the Superintendent of Documents, Government
Printing Office, WFashington, D.O., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, M~ass. : 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 17i06, 201 North W~ells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
Bouston, T'ex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksouville, F~la.: Chamber of Commerce Building.
Kannsas City, Mor.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
M~emphis, Tenn.: 220 Federal Building.
M~inneapolis, Mlinn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhlouse.
New Yorki, N.Y.: 734 Customhllouse.
Norfolk-, V'a.: 406 East Plume Street.
*Philadlelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portlandl, Oreg.: 215 N~ew Post Office Building.
St. Louis, M~o.: 500 Olive Street.
San Francisco, Cnlif.: 310 Customhouse.
Seattle, Waish.: 800 Federal Office Building.
Approved Code N~o. 84, Supplement No. 3
SUPPLEMIENTARY CODE OF FAIRi COMPETITION
CHAIN MANUFACZTUeING INDUSTRY
As Approved on January 31, 1934
APPROVING SUPPLEMIENTA`PRY CODE OF FAIR
CHAIN MA1NUFACTU[RINGJ IND)USTlR;Y
A Division of the Fabricated IMetal Products Manufacturing and M~etal
Finishing and Metal Coating Industry
A~n application having beenl duly mlade puruan"t to and in full
compliance with the provisions of T~itle I of the National Industrial
Recovery Act, approved June 16, 1933, and in accordalnce. with the
provisions of Section 1 of Article VI of the Basic Code for the
fiabriented Metal Products Manufalcturilgr and Meit~al Finishing and
Metall Coatingr Industry, app~roved November 2, 193.3, for alpproval
of a Sup~plementary Code of Fiair Comlpetition for the Chain Mlanu-
fact~uringa Indlustry; and hearings having been duly held ther~eon;
and the? annexed report on said Supplementary Code, containing
findings with respect thiereto, having~ been made and directed to the
NOWV THEREFEORIE], on behalf of the President of the United
States, i, Hughl S. Johnson, Administ~rator for Industrial Recoverly,
pursunnt to authlority vested in me by Executive Ordlers of the
President, includling Executive Ordler No. 654~3---, dantedl Decembler
30, 19333, aind otherwise; do hereby in~cor~porate by reference said
annexedl report and do find that said Sup~plementary Codle complies
in all respects wcith the per~tilenlt provisions and will promote the
policy and purposes of said Title of said Act; and do hereby order
thiat said Supplementar~y Code of Fair Comnpetition be andi it is
37i106*---313-1 06-34 Il l
hereby approved; provided, however, that the provisions of Article
V, Section 2, insofar as they prescribe a waiting period between the
filing with the Code Authority (i.e., actual receipt by the Code Au-
thority) and the effective date of revised price lists or revised terms
and conditions of sale be and they are hereby stayed for a period
of sixty days or pendtingo the completion of a study now being con-
ducted by the Na~tional Recovery Administration, and at the end of
such period said provisions shall become effective unless I, by my
further Order, other wise determine.
HU'GH S. JoHNSON,
Adminsl~tra tor fpr Industri~al Recovery.
W. A. HBRalumN,
January 31, 1934.
Th T~hite Howse.
SmR: This is a report on the Supplementaryr Code of Fair Com-
petition for the Chain Manufacturing IndustryT, a, division of the
Fabricated Mietal Products M~anufacturing and Mfetal Finishing and
Metal Coating Industry, and on the hearing conducted thereon in
Wiashinat~on, 3D.C. December 18, 1933, in accordance with the prodi-
sions of Title I of the National Industrial Recovery Act.
The Chain Mannufacturing Industry, being truly representative of
this division of the F~abricatedl Metal Products M~anulfacturinc* and
Metal Finishing and M~etal Coating Industry, has elected to avaiilitself
of the option of submitting a Supplementary Code of Fair Practice,
as provided for in Section 1. of Article VI of the Basic Code, for
the F'abricated Metal Products Manufacturing and Mletal Fiinishing
and Metal Coatingr Industry approved by you on the second dayr of
ni~semi~ OF THE: CODE:
Article I[ states the purpose of the Supplemnentary Code.
A1~rticle II accurately defines specific terms employed in the Sup-
Article III. Thlis Industry is a division of the F'abricated MIletal
Products Masnufacturingr and Metal Finishing and Mectal Continn
Industry and the labor provisions of its Basic Code, as approved
NovTember 2, 1933, are the labor provisions of this S'upplemenltary
Article IV establishes a Supplementary Code Authority consist-
ing 'of the seven (7) members of the Board of Trustees of the Chain
Institute, Inc., or its successor, and one (1) member chosen from
the Industry by the vote of the members thereof, and gives the Ad-
ministrator t~he authority to appoint one (1) additional member
without vote and provides machinery for obtaining statistics and
the administration of this Supplemnentary Code.
Article V sets forth the fair trade practices of this Supplementary
Code which has been especially designed to effect fair competition
in this division of the Industryr.
Article VI contains the mnandatory provisions contained in. Sec-
tion 10 (b) of the Act and also provides for the submission of pro-
posed amendments to the Supplementary Code.
Article VII provides against monopolies and monopolistic prac-
tices, and recognizes that price. increases be limited to actual addi-
tional increases in the seller's costs.
Article VIII states the effective date of this Supplementary Code.
The Assistant Deputy Administrator in his final report to me on
said Supplementary Code having found as herein set forth and on
the basis of all the proceedings in this matter:
I find that--
(a) Said Supplementary 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
and foreign commerce which tend to diminish thle amount thereof
and will provide for the general welfare by promoting the orgatn-
ization of industry for the purpose of cooperative action among the
trade groups, by Inducing and maintaining united action of labor '
and management under adequate governmental sanctions and super-
vision, by eliminating unfair competitive practices, by promoting
t~he fullest possible utilization of the present productive capacity o
industries, by avoiding undue restriction of production (except as
may be tempor~arily required), by increasing the consumption of
industrial and agricultural products through increasing purchasing
power, by reducing and relieving unemployment, by improving
standards of labor, and by otherwise rehabilitating industry.
(b) Said Industry normally employs not more th~an 50,000 em-
ployvees; and is not classified by me as a major industry.
(c) The Sulpplementary Code as approved complies in all respects
with the pertinent provisions of said Title of said Act., including
without limitation Subsction (a) of Sect~ion 3, Subsection (a) of
Section 7i, and Subsection (b) of Section 10 thereof; and that the
applicant association is an industrial association truly representative
of the aforesaid Indlustry; and that said association Imposes no
inequitable restrictions on admission to membership therein.
(d) The Supplemen~tary Code is not designed to and will not per-
Init monopolies or monopolistic practices.
(e) The Supplementary Code Is not designed to and will not elimn-
inute or oppress small enterprises and will not operate to discrimi-
nate against, them.
(f) Those engaged in other steps of the economic pr~oce~s have not
been deprivedl of the right to be heard prior to approval of said
Supplementa ry Code.
For these reasons, therefore, I have approved this Supplementary
Hean S. JoHNson,
JANUARY 31, 1934.
SUPPLEMENTAtRY CODE OF ]FAIR COMPETITION
CHAIN MLANUFAC1LTUR~ING ~IINDUSTRY
A Division of the Fabricated Metal Products Mranufacturing and Miletal
Finishing and Metal Coating Industry
To effectuate the policy of Title I of the Niational Industrial Recov-
ery APct, thle -following provisions are established as a Sulpplementary
Code of 1Fair Competition for The Chain ~Manufacturing Industry,
pursuant to A~rticle VI: of thne Basic Code of 1Fair Competition for the
Ft7abricated Mietal Products ]M~anufacturing and MCetal Finishing and
Mettal Coating Industry, approved by the Piresident of the United
States onr the second day of November 1933, and upon approval by
the President of the United States the provisions of this Supple-
mental Code shall be the Standard of Fair Competition. for and shall
be binding upon every member thereof.
AnRICLE II -DEFINITIONS
The term TIhe Chain lManufacturing Inrdustry ", hereafter re-
ferred to as the IndustryT, means and includes the manufacture or
purchase of component parts for assembly and for sale, of all types
of chains of iron and steel, both Welded a~nd Weldless, except. Fabri-
cated Transmission Chain and all forms of Cast Chain.
The term Memlber of the Inrdustry ", includes, but without lim~-
itation, anly individual, partnership, association, corporation, or other
form. of enterprise engaaged in the Industry, either as an employer
or on his or its own behalf.
The terms President ", "Act ", and "A~dministrator as used
herein shall mnean respectively the President of the United States,
the National Industr~ial Recovery Act, and the Admlninistrator, of
Title I of said Act.
The term Basic Code as used herein, is defined to mean the
Basic Code of Fair Competitionl for the 1Fabricated Mfetal Products
Mannufacturing and MeltaR1l Fiinishing and Metal Costing Indlustry,l
as app~roved by the President of the United States on the second day
of November 1933.
The term Supplementunry Code Authority "' as used herein means
thle agency which shall supervise thne administration of this Supple-
The term "C institute as used herein, is defined to mean The? Chain
Institute, Inc. or its successor.
Thle term )Federation as used hlerein, is defined to mean Tihe
Fabricated M~etal Products F~ederation, or its successor.
ARTICLE III--EMCPLOYM~ENT PROVISIONS
Thiis Industr~y is a division of th~e Fabriented Metal Products Mlan-
ufacturing and M~etal Finishing and M~etal Coating Industry and the
labor provisions of its Basic Code as approved by the President of
the United SCtates are the labor provisions of this Sup~plementary
ARTICLE IVT-ORGANIZATION AND ADMIINISTRATION
SECTION 1. The Supplem~entury Code Aluthority is hereby con-
sitituted the agency to admlinister the provisions of this Supplemen-
tury) Code, and shall consist of the seven (7) members of the Board
of Trustees of the Institute and one mnember chosen fromt the Indus-
try~ by the vote of the memnber~s thereof. The Administrator may
appoint one representative to serve without vote and without ex-
pense to the Industry unless the Supplemlentary Code Authority shall
agreed to pay. such expenses as a member of the Supplementary Code
Authority. The President. of the Institute is hereby constituted the
agent to collect and distribute all statistical reports of the Industry
as required by the Supplementary Code Authority. WCith a view to
keepingr the Pr~esident of the United Stat~es informed as to the ob-
sei~rvnce or nonobservance of this Supplementary Code, said agent
shll~l collect such statistics as called for by the President. and/or the
Adm~inistrat~or and senid them in such foirm as t~he President. and/or
th-e A~dministrator may require, to the Federation as the agency
admlinistering said Basic Code.
Scjc. 2. Thle President of the Institute, as such agents, shall also,
from time to time, furnish to the Basic Code Authorityr, designated in
sa id Basic Code, such information as may be required to be furnished
under the terms of said Basic Code.
Sc. :3. All dlata filed in accordance with the provisions of this Sup-
plemeintary Code shlall be confidential and shiall not be revealed, ex-
ce'pt in comp~osite form to anyone other than an authorized grovern-
SEc. 4. Anyv or all information furnished to the President of the
Ins~titulte by anY mlemnber of the Indlustry shall be subject. to checking
for' the purpose~ of vePrify;ng by' a11Cn exaint~ionl of the pertinent.
books andl necounts and records of such memnber by any disinterested
person" or persons, multually agreed upon by the Supplemnentary Code
Author~ity and the member of the Industryv whose books and accounts
and~ records are to be examined, or by a person or persons nominated
by the Supplemnenta ry~ Code Authority and a approved by the Admini -
istrator. The cost. of such examiination shall be tre-ated as an expense
of administberiing the Code; provided, however, that if upon such ex-
nmination any' suchl information shiall be shown to have been incor-
rfte Iinany~ mateial respcnt., such~ costs shall be paid by the member
of the ndusry hichfurishedl such information.
SEC. 5. To further effectantee the policies of the Act and for the
admiinistrantion of this Supplemnentary Code, the constituted authori-
ties andl methlods of gov.erningr the IndustryS shll~ be as follows:
a. Thle Supplementa ry Code Authorityr shall have general power
andl sup~ervision over the enforcement of the provisions of this Sup-
plementary Code anid it is her~eby designated as the agency for admin-
istering, supervising, and promoting the observannce of the prov'isions
of this Supplementar~y Code, and shall have powerl to obtain from all
members of the Industry such reasonable and pertinent daata as miay
be necessary for the a~dmlinistratintcl of the provisions o~f thlis Sup-
plementary Clode. The r~equlest for reports from~ members of thle
Indulstr shall not be ma~de in an mnlnerzl which will impose unequlrn
obligations upon members of the Inldustry.
b. The Supplemnentary Code AulthTorityr shall have power to in-
vestilgate on its own initiative or on comlphint,, the operation of the
Supplementary Code andl any1 allegedly violation of the Sup~pleme ntary
C~ode by anly member of the Indlustrya; to mlake findinlgs of fatct andl
to state its conclusions as to whethler or not there has been. any viola-
tion of any provision of the Sulpplementary Code, andl except as
hereilnaft~er provided, to take sucrh steps as: it may deem necessary or
advisable, within t~he provisionis of the Suppleemntary Cod(e, subject
to r~ules andl regulations by the Admiinistrator.
c. No mnemlberI of thle Su~pplement~ary Code .Authorityr shall par-
ticipazte, as a member of such. Suppylemlentary~y Code Au~thor~ity, in
anyl proc~eed~ingis in wrhich he is interested, as the c~ompllainant. or
respondent, or in which he is in any other mlannler directly interestedl,
andt in thle event of anly sue ch is;qul~nifiation,, the remainingr members
of sulch Supplemellntry Code Authority shall certify- such disqualifi-
cation, together w-ith t~he rensons~i the~refor anld shall promptly desig-
natbe a person t~o sit as a special mnemlber of such. Supplementary Code
Au~thorityl for the purpose of such proceedingrs.
dI. Th~e SCupplementaryT Code Authlority many delegalte any of its
duties to such person or persons, committee or committees, as it may
select; provided, that it shall no~t delegate, any of its duties to any~
person whio is subject to disqualifieation, as in par~agraphl "c" above
prov~ided~; and pr~ovided further, that such dele~ation shall not re-
lieve the Sulpplementury3 Code Au~thority~ from any3 of its respon~lsi-
bilities under this Supilplementar~y Code.
e. The Supplemnentaryy Code Auth~ority may, subject to t-he ap-
proval of the Adm~inistrator, upon findings, by a three fifths vote,
that t.he respondent assenting member of the Indul~strJ has violated
this Supplemen~tary Codle, assess all costs in connection w~ith such
investigation and dlisposit'ion of such comiplainlt against salid re-
sp~ondlent asisentinlg member of the JIndustry. ICf any assentingi mem-
ber of the Industry makes a formafll complaint to the Supplemlentary
Code Aluthority which proves, after investigtion by. the Suipplemen-
tary Code Authority and approval by the Administrator, to be
without foundation in fact, then the Supplementary Code Authority
may assess against thle assenting member of the Indlustry bringing
such formal complaint, all costs in1 connection wit the investigation
and disposition of such complaint. All assessmnenit to be paid- into
the: treasury of the Institute as the agency of the Supp~,lementary
f. Each member of thie Indusr subject to the jurisdiction of this
Supplementory Code dshll pay to the Institulte as the ageny o
the Supplementary Code Authority his or its ~proportiolnateshr
of t.he amount necessary to pay the cost, of assembling~, nnalyzing, and
publication of such reports and data and of the maninteniance of th
Supplemientary Code Authorityr in connection with its activities relat-
tive to the administration of this Supplementary Code; said pro-
portionazte share to be based upon the volume of business and/lor
such other factors as the Supplementary Code Authority may
g. A meeting of the Miembers of the Industry may be called and
held at any time by order of the Supplementary Code Authority
or members of the Inldulstry having t~he right to cast at least. 51%
of all votes which might be cast at such a meeting. At least five
days' notice to each member of the Industry shall be given.
b. Each member of thle Industry who assents to and complies wvith
the provisions of this Supplementary Code, and who is not delin-
quent in the payment of any assessments made under the provisions
of thiis Supplementary Code, shall be entitled to cast one vote, either
in person or by proxy, in writing, duly executed by such mlember of
the industry: and filed wTithl the Supplementary Code Authority
within a reasonable time prior to the time set for the meeting, at
all meetings of the members of the Industry.
SEc. 6. The Supplementary Code Authority shall have the fol-
lowing further powers andi duties:
a. To adopt byvlaws and rules and regulations for its procedure
and for the administration and enforcement of the Supplementary
b. To m~ake recommendations to the Administrator for the co-
ordination of the administration of this Supplementary Code w~ith
such other Codes as may be related to the Industry.
c. To cooperate with the Administrator in regulating the urse of
any NRA insignia solely by those members of the Industry who
have assented to, and are complyinrr with, thiis Supplementary Code.
d. To recommend to tthe Aidmim;l~strator further fair trade prac-
tice provisions to govern members of thep Industry in their relations
within each other or withl other industries and to recommend to the
Administrator measures for industrial planning, including stabiliza-
tron orf employment.
e. To recommend from time to time standards of shiipmnent terms.
f. To recommiend from time to time standards for gaiiranity on
SEc. T. Nothing contained in this Supplementary Codte shall con-
stitute the members of thle Supplementary Code Authority partners
for any purpose; nor sharll any4 member of the Supplemnentary Code
Authority be liable in any manner to anyone for any act of any
other member, officer, agent, or employee of the Supplementary Code
Authority. Nor shall any member of the Supplementary Code
Authority, exercising reasonable diligence in the conduct of his duties
hereunder, be liable to anyone for anacon or oi iflmisfesion to a
under this Supplementary Code, exceptfohiwlflmseacer
SEC. 8. If the Administrator shall determine thant any action of
the Supplementary Codle Authorityv or any agency thereof is unfair
.or unjust or contrary to the public interest, t~he Administrator may
require that such action be suspended for a period of not to exceed
thirty (30) day~s to afford an opportunity for investigation of such
action and further consideration by such Supplementary Code Au-
thority or agency, pending final action, which shllR1 be taken only
upon approval by the Admlinistrator..
ARTICLE TI-UN'FAI1 TRADE 1 PRACTICES
For all purposes of the Supp~lemlentanry Ctrd, anly memllberI of tle
Industry who shall, directly or idrecl, trughl ay othecler, e-
ploye~e, agent, or representative, violated h following provisions of
this Article, shall b~e deemedl guilty of unfair tradet practice anid a
violations of this Supplemecntary Code.
SECTION 1. Each~ member of the IndustryS shall use an. adlequte
cost accounting sylstemn which~ shall conforml to the coc.st accounting
system recommnendled by the Supplemlentary Code AultthorityS and
approved by the Admiinistrator as hereinafter providedt. The Suip-
plementaryr Code Authority shall recomnuendl for uxse in the In~dustry~
a uniform and adequate cost accounting slystemn whichl shall be adap~ta-
ble to thle cost accounting procedure and to the bus~ine ~s of the In-
dustry. Such plan shall specify the factors w~hichl shall be ilc~ludedi
in determining the costs of each m-em~ber of the Industry. Upon
approval by the Adminirlstrator of suchn a system of cost ac~c~ounting~
for the Industr~y, complete advice concerning it shall be dfistributedl
by thle Supplelent.ar~y Code Authority to all memllbers of the Indus-
try. Thlereafter each muember of the Industry shall file with the
agent designated under Article IV', Section I, of this SCupplclemetary
Code h~is costs for typical itemsL of the pr~oduc~ts of the I~ndustryi
offered for sale by himn. Th~ereafter no member of the Indlustry shall
initiate a se~lingr price belowv his own cost, or sell the product of the
Industry at such price or upon such~ terms or conrdit ions of sale as
will result in the purchasers'~ paying for such p~roluc~t less than the
cost of that members of the IndlustryS who has filed the lowest cost;
provided, however, that any~ member of the Induistr~y may sel below
his own costs to meet existinga competition, when such prices have
been filed in accordanc~e with Section 2 of this Article; and provided,
further, that thie Supplemel~ntar~y Code Author~ity mnay approve,
subject to disalpproval by the Administrator, the sale of .-ul~rplus~
stocks below suchi costs whler~e necessary to relieve finanlcial emecr-
gencies. A dletailed record of suchl surplus stckcls shall be filed with
and checked by suich im partial agency as the Su ppitlementaa ry Code
Authority mnay designate at the timle of application fcor such approvalI.
SEC. 2. Each members of the Indlust~ry shall publish a~nd ~file with
the Supplementary Code A~uthorityv within ten dlays after the effee-
tiv dae o th SupleentryCode, price lists .indlividuallyT pre-
pared by him of all productsofeefoslersodbhm nal
terms and conditions of sale relating thereto. Such price lists shall
state for each grade and kind of each product sold or offered for sale,
one price w~it~h appropriate dliscounts ther~efrom, if anyS allowed, for
sales of classified types of purchasers. Such price lists andf terms
and conditions of sale so filed with the Supplelmentary Code Aulthor-
ity shall be open to inspection at. all reasonable times by any inter-
ested party. Revisedl price lists or revised termls and conditions of'
sale, if made, shall be filed from time to time thereafter with the
Supplementary C~ode Authority by any Me~mberr of the Industry;
provided, however, that such revisions shall be filed with the Sup-
elementary Code Authority ten days in advance of the effective
date thereof; and, provided further, that any other member of the
Industry may file revisions of his price lists or terms and conditions
of sale to meet t~he revisions first filed which may become effective on
the date when the revised price lists or revised terms and conditions
of sale first filed shall become effective. At the time of filing price
lists or discount sheets, in accordance with this paragraph, each
Member of the Industry shall furnish the Supplementary Code Au-
thorityr, for distribution, such number of copies of his price lists
and/'or discount. sheets and any revisions thereof, as the Supple-
mentary Code Authority may prescribe.'
SEC. 3. NO member of the Industry shall sell or offer for sale any
product of the Industry at prices other than the prices noted in
its price lists, or terms and conditions of sale other than the terms
and conditions of sale previously filed by such member with the
Supplementary Code Authority in accordance with the provisions
of Section 2 of this Article and in effect at the time of such sale.
SEC. 4. The fOllOwing paragraphs describe and shall constitute
unfair methods of competition:
a. (1) To publish advertising (whether printed, radio, display, or
of any nature) which is misleading or inaccurate in any material
particular, nor slhall any member in any way3 misrepresent any goods
(merludingr but without limitation, its use, trade mar'k, grade, quality,
quantity, origin, size, substance, character, nature, finish, material,
content, or preparation) or credit terms, values, policies, services, or
the nature or form of the business conducted.
(2) To make disparaging statements respecting the business
methods, practices, or products of another member of the Industry.
b. To knowingly withhold from or insert in any quotation or
mnvoiee any statement that makes it inaccurate in any material
c. To brand or pack any goods in any manner which is intended to
or does deceive or miislead purchasers with respect to the brand,
grade, quality, quantity, origin, size, substance, character, nature,
finish, material, content, or preparation of such goods.
d. To publish or circulate unjustified or unwarranted threats of
legal proceedings whiich tend to or have thle effect of harassing com-
petitors or intimidating their customers. Failure to prosecute in
due course shall be evidence that any such threat is unwarranted or
c. To allow~ or make payment or allowance of a rebate, refund,
commission, credit, unear~ned dliscount, excess allowance, or allowance
for customer advertising, catalogules, or illegitimate premiums
whether in the form of money or otherwise, nor shall a member o~
th~e Industry sec~etily offer or extend to any customer any special
services or privilege niot extendedl to all customers of the same class,
for the: purpose of influencing a sale.
f. To ship goods on consignment except under circumstances to
be defined by thle Sup~plementary Code Authority, subject to the
approval of the Adlministrator, where peculiar circumstances of
thre Industry require the pr)'actice.
'See paraqraph 2 of order approving this Code.
g. No member of the Industry shall attempt to Indurce a breach of
an existing contract between a compestitor and his employees (other
than employment contrnets), or customer or source of supply;j nor
shall any member interfere with or obstrut the performance olf
such contractual duties or services.
h. To offer or extend a guarantee against dcl~l~ine or advanclr e in
the selling price of products.
i. To agree to liquidate, purchase, or accept Shipment:ll of. a ComI-
petitor's product from a, customer, in ordler to sell usember'lrr ownm
j. To authorize the return of poroduct. for a credit, whelrte kinow~n
to be obsolete, or where sales record of prec~cedfing~ year indicates lack
k. To post date an invoice.
1. To extend protection against price advaniic.e or decline of prod~-
ucrts through the sigrningr of requirelent contracts.
m. To make an allowalc~e for all or any por~tion~ of trun-portationtic~
costs, except wFhere tr~ansp~orta~tion charges are figured~ as a, part of
the original costs and are included in t~he selling price.
n. To enter into any agreement to assumie responsibility for consrie-
quential damages and other items of expense whichi normalnlly cannot
be anticipated in origrinal2 costs or selling prices.
SEc. 5. Emp1orT tr'ade.~-Nlo provision of this Supplemlenturly Code
relating to prices or terms of selling, shipping, or nlarkeicting,. shall1
apply to export trade, or sales or shipments for export tradel. nls
and to the extent that the Supplemtentary Codle A'uthority shall
otherwise determine, the sale of any product, by anry mlemb~ler of the
Indus try for direct shipment to Alaska, the Philipp i nes, Ha w ni i. or
Puerto ]Rico or other insular possessions of the Unritedl States of
America shall not be deemed export trade.
SECTION i. TllS Supp~lemelntury Code and all the provisions
thereof are expressly made subject to the right of the PIresid~ent, in
accordance with the! pr~ovisions of subsection. (b) of Section,~ 10 of
thle Act, from time to timle to cancel or modifyv any order, applroval,
licese, rule, or r~egulationl issued under the said Act..
SEc. 2. B~y presenting this Sup~plem'entar~y Cod'e the members of
the InIdulstry do not therebly consent to any~ modification thereoc.f, and
they reserve th~e right to object to any sulch1 modificationss without
being given an opportunity to be heard.
SEc. 3. This Sulpplemenary Code, except as to prov\isions requir~ed.
by the Act, mayr be modified on the basis of experiencer or chranslis
in circumstances, such miodification to be based upon applicntionl to
the Ad~ministrator and such notice andl hearing as hie shall spec~ify;
an d to become effect ive on ap~provasl by the Admni n ist en to r.
ARIrcCLE 71r17--ENERL PRO\.ISIONS
SECTION 1. NO prOVISIOD Of ths Sup:plemnentary3 G~Coe shall be
applied so as to permiit monopolies or monopolistic practices, or to
eliminate, oppress, or discriminate against small enter~prises.
SEc. 2. TVhereas the policy of thle Act to increase real purchasing
power will be made more difficult of consummation if prices of goods
and services increase as rapidly as wages, it is recognized that price
increases except such as may be required to meet individual cost
should be delayed, but when made such increases should, so far as
possible, be limited to actual additional increases in t~he seller's costs.
SEc. 3. Thlis Supplementary Code shall not affect patent rights.
ARTICLE VTIII-DunATNo or SUPPLEMENTARY CODE
This Supplementary Code shall become effective at 12:01 a.mn
o'clock on the tenth day after it is approved by the President and
shall continue in effect., until June 16, 1935, or thle earliest date prior
thereto on which the President sha~ll, by proclamation, or the Con-
gress shall, by joint resolution, declare that the emergency recog-
nized by Sect~ion 1 of the National Industrial Recovery Act has
Approved Code No. 84---Supplement No. 3.
Registry No. 1107-1-01t.
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