Supplementary code of fair competition for the lift truck and portable elevator manufacturing industry (a division of th...


Material Information

Supplementary code of fair competition for the lift truck and portable elevator manufacturing industry (a division of the fabricated metal products manufacturing and metal finishing and metal coating industry) as approved on June 23, 1934
Portion of title:
Lift truck and portable elevator manufacturing industry
Physical Description:
13 p. : ; 24 cm.
United States -- National Recovery Administration
U.S. Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Stacking machines -- United States   ( lcsh )
Hoisting machinery -- United States   ( lcsh )
Materials handling   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1316-01."
General Note:
"Approved Code No. 84--Supplement No. 36."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004946240
oclc - 656554021
System ID:

Full Text



%g~proved ode No. 84-Surpplement No. 86

Registry No. 1310--01






(A Division of the Fabricated Metal Products
Manufacturing and Metal Finishing
and Metal Coating Industry)


- I
i';;i~:r2~ 4 the 8pe.lnlendonl ot Dof~oente. ~ehin~LonD.C. - Plie. I cents



This publication is for sale by the Superintendent of Documents, Government
Printing Office. W'ashington, D.C., and by district ofices of the Bureau of
Foreign and Domestic Commerce.
Atlanta, Ga.: 5041 Post Office Building.
Birmningham, Ala.: 257 Federal Building.
Boston, Alasu. : 1801 Custombouse.
Buffalo, N.Y.: Chamber o~f Commerce Building.
C'harleston, S.C.: Chiamber of Commlerce Building.
Chicalgo, Ill.: Suite 1706, 201 Norrth Wells Street.
Clevel~ndl. Ohio: Chamber of Commrerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mlichr.: 801 Fir~st National Bank Building.
H~ouston, Tiex.: Chlamiber of Comlmerce Building.
Indialnapolis,, Inld.: Chiumber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kiaunss C~ity, Mo.: 1028 Baltimore Avenue.
Los Anigeles, Calif.: 1163 South Broadway.
Loiuisville, Ky.: 408 Federal Building.
M~emphis, Tenn. : 220) Federal Buildling.
M~iunenpolis, Mlinn.: 213 Federal Building.
New Or~leans, La.: Roorm 225-A, Customhouse.
New Yol k. N'.Y.: ~34 Custombouse.
Norfolk, Va.: 4106 East Plume Street.
Philadelphin. Pa.: 42'2 Commercial Trust Building.
Pittsburgh,. Pa.: C'bamber of Commerce Buildinig.
P'ortlandc. Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Fran~cisco, Calif.: 310 Custombouse.
Seattle, Wansh.: 800 Federal Ofice Building.

Approved Code No. 84---Supplement No. 30



As Approved on June 23, 1934




An application having been duly made pursuant to and in full
compliance with the provisions of Title I of thie National Industrial
Recovery Act, approved June 16, 1933, and in accordance w~ith t~he
provisions of Section 1 of Article V'I of the Basic Code for the
Fabricated MIetal Products Mranufacturingg and M~etal Finishing andi
Metal Coating Industry, approved November 2, 19333, for approval
of a Suppleennetary Codle of Fair Comp~etition for the Lift. Truck andl
Portable Elevator Mianufacturing Industry, and hearing having been
duly held thlereon; andi the an-nexed report on saidl Supplementaryv
Code, containing findings with respect thereto, h~aving been made
and dlirectedl to the President:
N'OW\, THEREFORE, on behalf of the President of t~he United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery\,
puIrSUanlt to authlorit' r'ested iln me by Executive Ordlers of the
President, including jExecutiv~e Order PNo. 6543-A, datedl December
30, 1033, andl otherwise; do hereby incorporate by reference saidl
anniexed report and dlo find that said Supplementary Code complies
in all respects with the pertinent provisions and will p~romnote the
policy and purposes of said Title of said Act; and do hereby order
that said Supplemnentary Codte of Fair Comnpetition be and it is
hereby approved; provided, however, that the provisions of Alrticle
VII, Section 1, insofar as they prescribe a awaiting period between
the filing 'wit~h the Code Authority (or such agency~ as may be
designated in the Code) an~d the effective date of price lists, as
originally filed and/,or revised price lists or revised terms and condi-
60693"ss-65-139----84----1 (1)

tions o~f sale, be and they hereby are stayed pending my further
Adm~~~ini~stran.tor for~ Indulu trial Recoverly.
Approv"l recoimmntende:
A acting Division Admlinistr'ator.
June 13, 1934.


Th~e Wh'ite Hourse.
SmR: This is a report on the Supplementary Code of Fair Compe-
tition for the Lift Truck andl Portable Elevator Mianufacturingr
Industry, a Division of the Fabricated M~etal Products Alanufactur-
ing and Miet~al Finishing and Mletal Coating Induistry, the hearing
havinar been conducted thereon in Wrashingaton, D.C., April 9, 1934, in
accorfa~nce with thle provisions of Title I o~f the National Industrial
Recovery Act.

The Lift Truck and Portable Elevator Mlanufacturing Indlustry,
being truly representative of this division of the Fabricated M~etal
Products Mianufacturing and Rlfetal Finishing anl Alletal Coating
Industry, has elected to avail itself of the option of submnittingr a
Supplementary Code of Fair Competitloon, as prov-ided for in See-
tion 1 of Article V'I of the Basic Code, for th~e Fabricated M~etal
Products 10anufacturing and 1%fetal F~inishing and Mfetal Coating
Industry approved by you on the Second day of November, 1933.


Article I states the purpose of the Supplementary Code.*
Article II necurately defines specific terms employed in the Supple-
ment~ary Code.
Article III. This Industry is a division of the Fabricated Mietal
Products manufacturing and Mletal Finishing and Mletal Coating
Industry and the labor provisions of its Basic Code, as app~rovedl
November 2, 1933, are the labor provisions of this Supplementary
Article IV establishes a Supplementary Code~ Authority consisting
of five (5) members to be elected by the members of the. Industry
at a meeting called by the Temlpo~aryy Supplementary Codle Author-
ityv, and gives the AIdministrat.0r the authority to appoint one addli-
tional member without vote and pr~ovides machinery for obtaining
statistics and the administration of the Supplemecntary Code.
Article V provides for the formulation of an accounting system
and methods of cost finding and./or estimating.
Article VI provides for selling belowF cost as determined by a
uniform method of costing, except in the cases of dropped lines or
seconds or inventories which must be, liquidated to meet emergency
needs and in order to meet competition.
Article VII provides for the fiing of prices for products of the
Article VIII sets forth the unfair trade practices of this Supple-
mentary Code which has been especially designed to offset unfair
competition in this division of the Industry.

Art-icle IX set.s fo-rth that no pr~ovision re~lating to prices or terms
shall aplply to, export trade.
Article X conita-ins the manndatory provisions contained in Section
10 (b) of th~e Act anrl also pr~ovides for the submiission of proposed
amlendments to the Supplementary Code.
Article XTI provides against mnono-polies and mo~nopolistic practices.
Article XII recognizes that. price increases be limited to actual
additional increases in the sellers costs.
~Article XIII states the effective date of this Supplementary Code.

Th~e ~Assisitant Deputy Administra~tor in his final report to mle on
said Supplellmer lntr C~ode hav~,ing found as her~ein set fourth and on
the basis of all the proceedings in this matter:
I find that:
(a) Said Supplelmentor~y C'ode is w~ell desigrnedl to promote the
~oiliies and purposes of Title I of the National Industrial Recovery
Ac~Lt, including removal of obst~lructions to thie free flow of interstate
and foreign commerce. which tend to diminish the amount thereof
and will provide for the g~eneranl welfare by promlotingr the organiza-
tion of industry for the purploses of cooperative action among the
trade groups, by inducing and maintaining united action of labor
and mianagrement under adequate governmental sanctions and super-
visioni, by ehmllinating unfair competitive practices, by promoting
th~e fullest possible utilization of th~e present p~rodtuctive capacity of
industries, by avoid~ing undue restriction of production (except as
mlay be temporarily requiredd:, by increasing the consumption of
indus~~trial and ag(rric ultu ral products through increasing purchasinga
poweby redurcing and relieving unemployment, by improving
standards~ of Inbor, and by otherw'iseP rehab-ilitating industry.
(b) Said Industryr no~mal'ly employs not more than 50,000 em-
p'loyees; and is not classified by me as a major industry.
('c) The Supplem~enitary Code as ap~proved complies in all re-
spects withl the pertinent provisions of said Title of said Act,
including without limnit.ation Subsection (a) of Section 3, Subsection
(a) of Rection 7, and Subsection (b) of Section1 10 thereof; and
that the association is an industrial association truly representative
of the aforesaid Industry; and that said association imposes no
equitable restrictions on admission to membership therein.
(d) Thre Supplementary Code is not designed to and will not
p~ermiit monopolies or monopolistic practices.
(e) T'he Supplemientary Code is not designed to and will not
eliminated or oppress small enterprises and will not operate to dis-
criminate against them.
(f) Those engaged in other steps of the economic process have not
b~een deprived of the right to be heard prior to approval of said
Supplementary Code.
For these reasons, therefore, I have approved this Supplementary
Hean S. JoaNson,
Ad ministrator.
JUNE 23, 193P.




To effectuate the policy of Title I of the National Industrial
Recovery Act, the following provisions are established as a Supple-
mentaryr Codle of Fair Comnpetition for the Lift Truck; and Portable
Elevator M~anufacturing Industry, pulrsuann to Article V'I of t~he
Basic Code of Fair Competition for the Fabr~icated M~etal Pr~oduc~ts
Manufacturing and Mietal Flinishingr andl MIetal C'oatingr Industry,
approved by t~he President of the United States on the second day
of November, 1933, and the provisions of this Supplementary Code
shall be the standards of fair competition for such Industr~y and
shall be binding upon every member th~ereo~f.
The term "' The Lift Truck and Portable Elevator Mannufacturingr
Industry ", hereinafter referred to as the Industry, means and in-
eludles the: manufacture for sale of all types of ha~nd lift trucks,
skid platforms, palettes, portable elevators of the type commionly
known as Stackers or Tiering Mafchiines, storage or barrel racks, andL
The term '' member of thle Indlustry "! as usedc he rein includes, but
without limitation, any indiVidual, partnerships, association, COrpo-
ration or other form of enterprise engagerd inl the Indlustry, either
as an emp~loyer or on his or its owrn behalf.
The termn employee as used herein includes any' and all per-
sons engaged in the Indulstry,~ h~ow\ever compensated, except a memn-
ber of the Industry.
The termn employer as used herein includes unvone by w\homi
such empiovee is conipensated or emnployedl.
The ternis Presidi-ent ", "Act and "Admninistrator as used
hierein shall mean respectively the Pr~esident of the Ulnited~ States,
Title I of t~he National Industrial Recovery Act, andi the Adiminis-
trator for Industrial Recovery.
The term "' Basic Code as used herein is defined to mean the
Basic Code of Fair Comnpetition for the Fabricatedl Metal Products
AlIanufacturing and Mletal Finishing and Mletal Coating Industry,
as approved by the President on the second day of November 193:3.
The term Supplementary Code Committee as used herein is
defined to mean the committee authorized to present this Supple-
mentary Code.

The termi Supplementary Code Authority as used herein means
the agency which~ is to administer this Supplementary Code, as
hereinafter provided.
The termn "Aissociation as used herein is defined to mean the
.Asoc~iationn of Lift. Tr~uck and Portable Elevator Mannufacturers, or
Thie term Fedleration as used herein, is defined to mean the
Fa~br~icatedl Metal Prodiucts Feder~ation, or its successor.
The termi "' Conidenlctial Agent as used heriein, is defined to mean
the Secretary of the Association of Lift. Truck and P'ort~able Elevator
MranuIIfa ct u ers.


This Ind'ustry is a dlivision of the Fabricatedl Metal Products
MIanufacturing land Alettal Finishing and Mletal Coating Industry
and w~ithoult limitation the wage, hour, andi labor provisions in Article
III of its Bjasic Codce as approved by the President November 2,
193;3, including Section 1 of said Article III by which the provisions
of subsection (1), (2), and (3) of Section 7 (a) of Title I of the
Act are maide conditions of this Code, are specifically incorporated
herein, anzd made a part hereof as the wage, hour, and labor provi-
sions of this Supplemnentary Code.

Se~CTrox 1. During the period not to exceed sixty (60) days fol-
lowuing the effective date of this Sup~plementary Code, the Supple-
Inentar~y Code Comimittee of the Industry shall constitute a tempo-
rary Supplementary Codec Authority until the Supplementary Code
Authority is elected. There shall be constitultedd withiin the sixty
(60) day period a Supplemnentary Code Authority consisting of five
(5) mlembers s to be elected by the members of the Industry, at a
meeting called by the temporary Supplementary Codle AuthorityV,
upon ten (10) days notice sent by registered mail to all members of
thle Industry whose names may be ascertained after diligent search,
wvho may vote either in person or by proxy. The members of the
Supplementary Code Authority first elected shall serve until the
following annual meeting of the Association, and thereafter, mem-
bers of the Supplementary Code Authority shall be elected at a meet-
ing of the members of the Indust~ry to be held at the time and place
of each annual meeting of the As~sociation to serve until the follow-
ing annual meeting. Thle members of t~he Supplementary Code
Authority shall be elected in the following manner:
(a) Four (4l) members who shall be members of the Industry and
shall be members of t~he: Association by a manjority vote of all mem-
bers of the Industry present in person or by proxy, each member to
have one (1) vote.
(b) One (1) member who shall be a member of the Industry and
a non-member of t~he Association by a majority vote of all members
of the Industry who are non-members of t~he Association. In the
event that the non-members of the Association fail to elect a mem-
ber on the Supplemnent.ary Clode Authority, t~he names of three (3)

such members shall be submitted by the members of the Association,
one (1) of whom shall be appointed by the Administrator.
(c) A vacancy in the membership of the Supplemnentary Code
Authority shall be filled by majority vote of the remaining members
of the Supplementary Code Authorityv; provided, however, that, the
vacancy shall be filled from the class of membership in the Supple-
mientary Code Authority in which such vacancy occurs.
(d) The Admiinistr~ator, inl addition thereto, miay appoint a mnem-
ber of the Supplemnentnary Code Authority to serve without vote
and without expense to the Industr~y unless the Supplementary Code
Authority shall agr~ee to pay such expenses. The member appointed
by the Admninistrator shall receive reasonable notice of and miay
sit at all mieetingrs of the Supplementary Code Authority.
SECTION 2. Each trade association directly or indirectly participat-
ing in thle selection or activities of the Supplementary Code Au-
thority shall (1) impose no inequitable restrictions on membership,
and ('2) submit to the Administrator true copies of its Articles of
Association, By-Laws, Regulations, and any amendments when
mnade thereto, together with such other information as to mnember-
ship, organization, and activities as the Administrator may deem
necessary to effectuate the purposes of t~he Act.
SECTION 3. In order that the Supplementary Code Authority shall
at all times be truly representative of the Industry and in other re-
spects comply with the provisions of the Act., the Administrator may
prescribe such hearings as he may deem proper; and thereafter i
he shall find t-hat the Supplementary Code Authority is not truly
representative or does not in other respects comply with the provi-
sions of the Act., may require an appropriate modification of the
Supplementary Code Authority.
SECTION 4. Nothing continued in this Supplementary Code shall
constitute the members of the Supplemnentary Code Aut~hority part-
ners for any purpose; nor shall any 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 Supp~lementary
Code Authority.3 Nor shall any member of the Supplementary Code
Authority, exercising reasonable diligence in the conduct of his duties
hereunder, be liable to unvo this Supp~lementury Clode, except for his owrn wilful malfeasance or
SECTION 5. The Confidential Agent shall also, from time to timne,
furnish to the Basic Code Authority, designated inl said Basic Code,
such information as may be required to be furniished under the terms *
of said Basic Code.
SECT-ION 6. To the extent permitted by the Act and subject to
such rules and regulations as the Administrator may prescribe, any
or all information furnished to the Supplementary Code Authority
by any member of this Industry pursuant to the provisions of this
Supplementary Code shall be subject to verification by an impartial
agency agreed upon by the Supplementary Code Authority and the
member of the Industry in question, and, failing such agreement,
such impartial agency shall be selected byteAmntrorwhc
impartial agency may check so much of the pertinent btook, ahc-

counts and records of such member of the Industry as may be re-
quired to verrify t-he necuracyI of the information so furnished.
SECTION T. T'he Supplemlentary Code Authority shall have power
to investigate complaints of violations of the Supplemnentary Code
filed~ w~ith~ it, by any member of the Indlustry.
SETIN subject to such rules and regulations1 as mayV be ;Cissue
by~ the Admiinist rator,' the Sup~plem'entary C'ode Authority shall have
the following powers and duties, in addition to those authorized
by other provisions of this Supplemientary t'ode:
(a) To insure the executionl of the p~rovisions of this Supple-
mentary Codle and to procvide for thle comiipliance of the Industry with
the prov,\isions of the Act.
(b) To adopt Byr-Laws andr Rules and Regulat~ions for its

(c) To obtain froml member s of the Ind:ust~y iiuch information
andi reports as are req~cuiredl for thle admiiinistration of the Siupplemen-
inry\ Code. In addlition to thle information required to be submiitted
to the Supplemnentary Code Authority, memnbers of the Industry sub-
ject to, thiis Sup~plemlentary Codle shall furnish such statistical infor-
Iinatio~n as the Admllinisf'trato m1ay deem necessarry for the purposes
recited in Section 3 (a) of the Act to such~ Admninistrative and,/or
Gover~inment agnc'1ies as hie may~~ des~ignate; procvided that nothing in
this Suplementary'"J C'ode shall1 relieve any member of the Industry
of any exsistingr obligatfionl to furnish reports to any' Government
ag~ency\. No individual r~epor~ts shl~ul be dlisclosedl to any~ other mem-
ber of the Indulstry or any o~the ~a rty ectcept to such other Govern-
Jlnent agencies as may be dlirected by th~e Adlministrator.
(d) To us~e such tradeI associations andt others agencies as it deems
proper for the carrying out o~f anyv of its activities pr~ovided for
herein, provided that nothing her~ein shall reliev-e the Suipplementary
Codle Aulthri~rty of its duities or resp~onsib~ilities uinder thiis Supple-
Ilnentary Code and that such trade~ associations and agencies shall
at all times be subject to and complyl with the provisions hiereof.
(e) T1o make Icrecommenda~tio ns; to tihe Admuinistrator for thie coor-
dlina~tio~n of the adminillst~ tration f thiis Sulpplemelcntaryr Code w~ithi
such other codles, if ainy, as may be r~elated to or. allect mlemnbers of
the IndustryJ.
(f) 1. It being~ found1( nleCesbnary in order to support the admiinistra-
tion of this Supp~lemnentary Codel and to maiitntin thle standards of
fair compe~,titio-n ezstablished~c her~eund~er andl t~ eflf~ectuate thec policy of
the Act, the Supp~lemlentury Code Authority is authorized:
(a) To inicur such reansonnble obligantionis as are necessary and
proper" for the for~egoing puirp'oses and1~ to meet't suI~Ich obligations out
of fulnds which may b~e raisiedl as hereinafter p~rovidedl and which
shall be held~ in trust for thle purposes o.f thle Supp~llemnentary Code;
(,~b) To submit to th~e Admninistrantor for his approval, subject to
suhnotice andl opportunity to be heard as hie miay deemn necessary.
(1) an itemliz.ed butgret of its estimated expenses for the foregoing
purposes,~~ and (2) an equitable basis upon which the funds necessary
to support such budget shall be contributed by members of the

(c) After such budget and basis of contribution have been ap-
provedi by the Administrator, to determine and obtain equitable

contribution as above set forth by all members of the Industry, and
to that end, if necessary, to institute legal proceedings therefore in
its own name.
2. Each member of the Industry shall pay his or its equitable con-
tribution to the expenses of the manintenance of the Supplem'entary
Code Authority, determined as hereinabove provided, and subject to
rules and regulations pertaining thereto issuedl by thie Admninistrator.
Only members of the Industry comnplying w~ith the Supplemnentary
Code and contributing to the expenses of its adminlistration as hiere-
inabove provided, shall be entitled to p~articipate inl the selection of
members of the Supplemnentary Codle Author~ity or to receive the
benefits of any of its voluntary activities or to make use of any'
emblemn or insignia of the National Recovery A~dministration.
3. The Supplementary Codle Authority shall neither incur nor pay
any obligation in excess of the amount t.hereof us estimated in its
approved budget, except uponi approval of the Admninistrator; and
no subsequent budget shall contain any deficiency itemn for expendi-
tures in excess of prior budget estimates except those which the
Administrator shall have approved.
(g) To recommended to the Administrator any action or measures
deemed advisable, including further fair trade practice provisions
to govern members of the Industry in their relations with each
other or with other industries; measures for industrial planning and
stabilization of emnploymient; and including modlificztionls of this
Supplementary Code which shall become effective as part hereof
upon approval by the Admninistrator after such notice and hearing
as he mnay specify.
(h) To appoint a trade practice committee which shall meet with
the trade practice commnnittees appointed under such other codes as
miay be related to the Industry for the purpose of formulating fair
trade practices to aovern the relationships between employers under
this Supplementary Code and under such other codes to the end
that such fair trade practices miay be proposed to the Admlinistrator
as amendments to this Supplemientary Code and such other codes.
(i) Every employer shall proidte for the safety and health of
employees during the hours and at the places of their employment.
Standards for safety and health shall be submitted by the Supple-
mentary Code Authority to the Administrator within six (6) months
after the effective date of the Supp~lementary Code.
SECTION 9. If the Adlministrator believes that any action of the
Supplementary Code A'uthority or any agency thereof is unfair
or unjust or contrary to the public interest, the Administrator may
require that such action be suspended to afford an opportunity for
investigation of the merits of such action. Further action by such
Supplementary Code Authority or agency regarding mnsrt, uthe matter com-
plained of may be taken if approved by the Admnsrtr u
shall not be taken if disapproved bby the Administrator, within
thirty (30) days of notice to him o intention to proceed w~ith
such action.

The Supplementary Code Authority shall cause to be formulated
an accounting system and methods of cost finding and/or estimating

capable of use! by all members of the Industry. After such sys-
tem and methods have been formulated and approved by the Ad-
ministrator, full details concerning them shall be made available to
all members. Thereafter all members shall determine and..or esti-
mate -costs in necordiance with the principles of such methods.
No member of the Industry shall sell or exchange any product
of th~e Industry at a price, or upon terms and conditions, which will
result in the purchaser paying for the goodls received, less than the
cost, thereof to the seller, determlined in accor~dance withl a uniform
method of costing above described in Article V; provided, however,
that dropped lines or seconds, or inventories which must be con-
verted into cash, to meet, emergepncy needs may be disposedr of by
a ny ember of the `Indlustry, at any price and on any terms and
conditions, but only if suIch member of the Industry, before such
disposni, has filed with the Supplementary Code Authority, a state-
ment in writing, settings forth the fact of, and reasons for, such pro-
psed disposali; a1ndl provided further, that upon notification to the
Sup leentary Code Authority, any member of the Industry may
sell below his costs in order that he may meet competitive prices
filed in accordance w~itht the provisions of Article VII of this Supple-
mnentary Code, or to meet competition from products of equivalent.
design, character, quality or specifications.

SECTION 1. Each .member of the Industry shall, within ten (10)
days after the effective date, of this Supplementary Code, file with
the Supplementary Code Authority, through its Confidential Agent,
a net price list or price list and discount sheet and/lor all other condi-
tions of sale, in such form and for such products as the Supplemen-
tary' Codle Authority may prescribe, and the Supplementary Code
Authority shall immnediately send copies thereof to all known mem-
bers of the Industry who manufacturer such products, and such lists
shall be mlade available to all interested parties at the office of the
Confidential Agent.
Revised, new or ndllitional price lists and/or discount sheets and/
or all other conditions of sale, if made, shall be filed frocm time to
timre ther~eafter withl the Supplementary~ Code Authority by any
nmember of the Industry,, to become effective ten (10) days after
ac~tuall r~ecei~t, by the Slup~plemnenta2ry C'ode Authorit~y. Copies of
uchl revised lists and/or dliscount sheets and ~'or all other conditions
of sale, with notice of the effective date thereof, shall be immediately
sent to all known members of the Industry who manufacture such
products, and shall be available at the office of thle Supplementary
Code Authorityr to all interested parties; and any member of the
]Industry may file, if he so dlesires, revisions of his price list and/or
discount sheets and/or conditions of sale, which shall become effee-
tive~ as of the date when theC revised ist first Bled becomes effee-
tive, provided that he shalll not establish prices lower, nor discounts
greater, nor conditions of sale more favorable than those contained
in the revised list first filed.

Each member of the Industry shall furnish the Supplementary
Code Authority, for distribution, such number of copies of his price
lists and,'or discount. sheets and any revisions thereof, as thie Sup-
plementa'ry Code Aluthorityg may prescribe.
The provisions of this Section shall apply to any additional prod-
ucts of the Industry which the Supplementary Code Authority may
from time to time prescribe; provided, however that the Supple-
mientary Code Author~ity shall manke no determiination t~o place any
such additional product of the Industry on a price list basis, unless
two thirds of the members who ar~e at that timne engaged- in manu-
facturing such products shall affirmantiveliy consent that such deter-
mination be made and such determination is approved by the
Ad mi nistrator.'
SECTION 2. No member of the Industryv shall sell or offer for sale
any product of the Inldustry at prices or terms and conditions of sale
other than the prices noted in his price lists or terms andl conditions
of sale previously filed by such member with the Suppl~nementar Code
Authority, in accordance with the provisions of Section 1 of this
Article and in effect at the time of such sale.


In addition to the Unfair Trade Practices coveredi by Article V
(excepting Sections A, F anid G;) of the Basic Code, as though herein
repeated and set forth at length, and for all purposes of this Supple-
mientary Code, the followings described acts shall constitute unfair
practices. Any mlember of the I~ndustry who shall directly, or in-
directly through any officer, employee, agent or representative, use
or employ any of such unfair practices shall be guilty of a violation
of this Supplementary Code.
RULE 1. Inocc~uratte advertising.--No member of the Industry"d' shall
publish advertising whetherr printed, radio, display, ro any
nature)I which is m~isleading or mnacculrate in anyv materal particular,
nor shall any member in any way misr~epresent any goods (including
but without limitation, its use, trade mark, 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 business conducted.
RULE 2. Inacxcucracte descri2pti~on of pr~oduct.--No member of the
Industry shall describe any product or any part of any product
in any manner which is intended to or does deceive or mislead
purchasers writh respect to the brand, grade, quality, quantityv, origin,
size, substance, character, nature, finish, material, content, or prepara-
tion of such goods.
RULE 3. Threats of litigartion.-Ni~o member of the Industry shall
publish or circulate unjustified or unwarranted threats of legal pro-
ceedings which tend to or ,have the effect of harassing competitors
or intimidating their customers.
RULE 4. Induci'ng breach of e~xwleting co~ntracts.--No member of the
Industry shall wilfully induce or attempt to induce the breach of
existing contracts between competitors and their customers by any
false or deceptive means, or interfere with or obstruct the per~forml-
1 Bee paragraph 2 of order approving this Code.

ance of any suchI contractual duties or services by any such means,
w~ith the purpose and effect, of hampering, injuring or embar-rassing
competitors in their business.
RULE 5. Price guaranl~l.tees.-No member of t.he Industry shall offer
olr extend~ a guarantee against decline or advance in the selling price
of products.
RULE 0). 1,11~0ice datinp.--No member of the Industry shall date
an invoice other than the date of shipment.
RULE 7. TI~rla~portatio-)zn alowanrrces.--No member of t~he Industry
shall make an allowance for all or any portion of transportation
costs, except w-here transportation charges are figured as a part of the
original costs and are included in the selling price.
aRULE 8. CONidequential damageys.--No member of the Industry shall
enter into any agreement to assume responsibilityT for consequential
damages and other items of expense which normally cannot be antici-
pated inl or~igiinal costs or selling prices. The term consequential
damngres is defined to mean any damages (1) other than, or in
excess of, the reasonable cost of repairing or replacing any defective
machinery, equipment or parts furnished by the employer under the
contract, or (2) other than stipulated, liquidated damages relating to
delivery, completion and:l'or performance. Nothing contained in this
paragraph shall be. construed to limiit an employer's legal liability
for negligence.

]No provisions of this Supplementary Code relating to prices or
terms of selling, shipping or marketing sh~all apply to export sales
or shipmlents for export trade within the meaning of the term "'ex-
port trade ". as is used in the Export Trade Act, adopted April 10,
1918; provided, however, that exceptions due to particular circum-
stances shall be submitted to t.he Supplemnentaryr Code Authority for
jts consideration andl det~ermination, and its decision shall be subject
to the approval of the Admlinistrator.

SECTION 1. This Supplemnentary Code and all the provisions
thereof are exp~ressly made subject to t~he right of thle President, in
accordance with the provisions of sub-section (b) of Section 10 of
the Act, from timie to time to cancel or miodifyr any order, approval,
license, rule, or regulation issuied under Title I" of the said Act.
SECTION 2. TtliS Supplementary oe xeta opoiin e
quied y te At, ay e mdifed on the basis of experience or
changes in circumstances, such mrodification to be based upon appli-
cation by the Supplemlentary Code Authority to the Administrator
and such notice. and hearing as he shall specify; and to become effee-
tive and be a part of this Supplementary Code on approval by the
Aldminist rator.


No provision of this Supplementary Code shall be so applied as to
permit monopolies or monopolistic practices, or to eliminate, oppress
or discriminate against small enterprises.


Whereas the policy of the Act to increase real plrchaBsingr power
will be made more difficult of consunmmation if prices of goods and
services increase as rapidly as w-\ages, it is recognized that price
increases except such as; maly be required to mneet individual cost
should be delayed, and when mnade such increases should, so far as
possible, be limited to actual additional increases in seller's costs.

This Supplementary Code shall become effective: at 12: 01 A.MI.
o'clock on the tenth day after it. is approved by the President..
Approved Code No. 84--Supplement No. 36.
Registry No. 1316--01.


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