For sale by the Superhntendent of Documents. Washingtn, D.C. Price 5 cents
Approved Code No. 347--Sulpplenent No. 11 Registry No. 1326---42
NATIONAL RECOVERY ADMIINISTRATION
CODE OF FAIR COMPETITION
(A Division of the Machinery and Allied Products Industry)
AS APPROVED ON JUNE 5, 1934
UNIV. OF FL LIIB.a
GOVERNMENT PRINTING OFFICE
This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washing-ton, D.C., and by district ofi~ces of the Bureau of
P~oreign and Domestic Commerce,
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Offce Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Illuss.: 1801 Custombouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 17016, 201 North W'ells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Illich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jackrsonville, Fla.: C~hamber of Commerce Building.
Kansas City, l~lo.: 1028 Baltimore Avenue.
Los Angeles, Callif.: 1163 South B~roadway.
Louisville, Ky.: 408S Federal Building.
111emphis, Tenn. : 229 F~ederal Building.
Alinnoup~olis, 10inn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York. N.Y. : 734t C:ustombouse.
Norfolk, V'a.: 406 East Plume Street.
Philadelphin, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: C'hamber of Commr~erce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, 1110.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wansh.: 809 Federal Office Building.
Approved Code No. 347--Supplement No. 11
SUPPLEMENTARY CODE OF FAIR COMPETITION
CONTRACTORS' PUMP INDUSTRY
As Approved on June 5, 1934
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE CONTIL4\CTORS)
A DIVISION OF THIE MACHINERY AND CALLED PRODUCTS INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of t~he National Industrial
Recovery Act, approved June 16, 1933, for approval of a Supple-
mental Code of Fair Competition for the Clontractors' Pump Sub-
division of M~achinery and Allied Products Industry, and hearings
having been duly held thereon and the annexed report on said Sup-
plemental Code containing findings with respect thereto, having
been made and directed to the President:
NOWV, THEREFORE, on behalf of the President of t~he United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presl-
dent, including Executive Order No. 6543-A, dated December 30),
1933, and otherwise; do hereby incorporate by reference said an-
nexed report and do find that said Supplemental Code complies in
all respects with the pertinent provisions and will promote the policy
and purposes of said Title of said Act; and do hereby order that said
Supplemental Code of Fair Competition be and it is hereby ap-
proved subject to the condition that the provisions of Article VIII,
Section (a), insofar as they prescribe a waiting period between the
filing with the Code Authority (or such agency as may be designated
in the Supplemental Code) and the effective date of price lists, as
originally filed and/or revised price lists or revised terms and con-
ditions of sale, be and they hereby are stayed pending my further
Huan S. JoHNsoN
Administrator for Indulstrial Recovery.
A. R. GLBacy,
Jwsle 6, 1934.
RIEPOIRT TO THTE PRESIDENT
The W~hite HEouse.
SmR: This is a report on the Supplemental Code of Fair Competi-
tion for the Con~tractsr~s' Pump Subdivision of the Alachinery and
Allied Products Industry, public hearing having been conducted
thereon in W~ashington,: D. C., Decemnber 21, 1933 in accordance with
the provisions of Title I of the National Idustrial Recovery Act.
Every person who filed a request for an appearance was freely heard
in public and all statutory and regulatory requirements were
!The Contranctors' Pump 1\lanufacturers Institute, being truly rep-
re~sentative of this Sulxlivision of the Miachinery and Allied Products
Ind~ustryg, has elected to avail itself of the option of submitting a
Supplemental Code of Fair Competition, as provided in paragraph
(2), Article I of the Basic Code for t2he Miachinery and Allied Prod-
uct~s IndustryS approved by you onl the seventeenth dlay of lliarch,
Thiis Sulbdivision represents a par"t of the capital goods industry,
manufacturing andi selling dewateringr and pressure pumps of the
following types: diaphragm, standard centrifugal up to 8"' in size
and self priming centrifugal up to 6"' in size for dewatering pur-
p'oses; p'lungcer and piston type trench pumps; contractors' water
supply pum'ps, and road1 pumps and parts thereof, intended for use
by contractors in the construction industry.
In 1929 this Subldivision of the Indlustry employed approximately
341 persons including ofliee emplolryees. Approximately 282 are es-
timaltedl to hav-e b~een efcoryr wage earners. Since 1099, total em-
ployment declined fr~om 341 persons to about 135 as of October 15,
1303, or 60%S~.
Estimatedt annual pales in 19L29 amounted t.o $~,'1,75,00j0. In 1930,
they' inlcreansed to $2,0l!10,00 and~ declined thereafter to $645,000 in
193", or 679;.
Th7le minimum hourly rates in the approved Basic Code (of which
thiis is a sulpplement) consist of one differ~ential for the South and
th~iree city pop'ulationl differentials for all other sections of the United
Over JointHo 17wo'ulatio~n__---------- 4ocents per hour.
30,010dn to 50,000H Popula tion ---------,------- 38 cents per hour.
10r.000~ and unller_____,_,-_________ 3scents er hour.
South.....__,, __..,-- .,-- ..____ 32centsper hour.
In addition to the minimum wage rates shown above, the Basic
Code provides that women engaged in substantially the same work as
men shall receive the same rate of pay as such mecn employees; that
the minimum wage for women employees engaged in plant opera-
tions shall be not less than 87.5 per cent of the proper rate for the
locality in which employed as specified; and that the miniumln in
the South shall be not less than 32 cents per hour.
Based on the distribution in June 1933 and on the specified per-
centages of the number of factory workers receiving less than the
designated rates shown in t~he table be~low, the adoption of the pro-
posed minimum rates will probably cause an increase in factory pay-
rolls. The estimated increase in June 1933, regardless of location of
the workers, will probably, under the most favorable conditions, not
exceed about 4 per cent, assuming only upward adjustment in the
brackets below the 40-ce~nt minimum and no change in mlan-hour
Batimated number of factory w~orkiers receiziving less tharn designrated hourly
than the min-
Proposed minimum hourly rates
percent a m
410 cents (other U .S .)........ ....... ....... ....... ..... .. .. .. .. .. .. .. 5 3 75
88 cents other U .S .)... ... ... ... .. ... ... ... ... .. ... ... ... ... .. ... ... ... 35. 4
SO cents other U .S .).... .... .... .... ... .... .... .... .... ... .... .... .... 717. 3 424
82 cents (Sou th ) -.... ... ...... ... ... ... .. ... ... ... ... ... ... ... ... ... 5. O 7
RESUM\E OF THIE SUPPLEMlENTAL CODE
Article I states the purpose of the Supplemental Code.
Article II accurately defines specific terms employed in this
Article ~III. The labor provisions of the Basic Code for t~he
A~ac~hinery and Allied Products Industry as approved M~arch 17,
1934, are incorporated by reference as the labor provisions of this
Article IV adops the relevant portions of Article II, "L Definitions "
and Article VI, "LAdministration "; and Articles VIII, "L Modiifica-
tions and Termination ", and TIX, WVithdlrawal of the Basic Code
for the Machinery and Allied Products Industry, as approved March
Article V establishes a Code Authority consisting of five members.
The Administrator in his discretion m~ay appomnt one additional
member (without vote and without expense to the Subdivision).
Article VI provides for an accounting system and methods of cost
finding and/or estimating.
Article VII provides that when an emergency exists in this Sub-
division and when the cause thereof is destructive price-cutting, such
as to render ineffective and seriously endanger the maintenance of
the provisions of this Supplemental Code, the Codie Authority may
cause to be determined the lowest reasonable cost, of the products of
this Subdivision. The Aidministrator may approve, disapprove or
:modi fS the. determinationn.
ArtioekE VI[II p,roides mleth~ods of setting up and revising price
Article IXE provides certain standards as to conditions of sale
peculiar to this Subdlivision, with a view to eliminating unfair com.-
petitin in. this Sublivrision.
Article X sets fort the unfair trade practices whEich have been
especially designed to restrain unfair competition in this Sub-
A~rt~ile XI: defines export territory and provides that, filed pries
lists are not applicable to export. shipments.
ALrticle XII contains the maondatory provisions contained in See-
tion 10 (b) of the Act and also prov'ides- for the submission of pro-
posedi amlclndments to the Suppleme~ntal Code.
Article XIII provides for the withrawtlal of this Subdivision from
jur~isdtiction of the Basic Code: and for the continuedl func~tioninga of
thlis Subdivision as an individual industry ulnder its own1 code.
Article XIV stipullates that there shall be no ineqcuitable restric-
tions and provides against monopolies.
Article XV gives th~e etfectiv~e date of this Supplemental Code.
The Deputy Adlministrator in his final re~port to mle on said Sup-
npnntlemental Cd having found11 as herein se~t fo~th) andc on the basis of
all the proceedings in this matter:
I find thant:
(a)~ Said Sup~plemental Code is well dlesigned to promote the
polces and purposes of Title I of the National Indlustr~ial Recovery
Act, including removal of obstructions to the frece flowr of interstate
and foreign commerce which tend to diminish the amorunlt thereof
atnd will provide for th~e general welfare by promoting the o~rganiza-
tion of industry for the purpose of cooperative action among the
trade groups, by inducing and~ mlainltaining united action of labor
and management under adequate governmental sanctions and super-
rision, by chimmantmg unfair compe~ttitie practices, by promotmg~
the fullest possible utilization of the present productive capacity o
industries, by avoiding undue restriction of production (except as
may be ~temporarily required),i by increasing thle consumption of in-
dustrial and agricultural products t~hrougrh increasingr pulrchasingr
power, by redlucing and relieving unemployment, 'by improving
standards of labor, antd by otherwise rehabilitating industry.
(b) Saidl Subdivisilon normally employs not more than 50,000
emiployees, and is not classified by me a~s a major indlustry.
(c) The Supplemlental Code as approved complies in all respects
with t~he pertinent provisions of said Title of said Act, including
w~ithlout limitation Subsection (a) of Section 3, Subsection (a) o~f
Section 7, and Subtsection (b) o~f Section 10 thereof ; and that the
applicant institute is an industrial institute truly representative of
the aforesaid Subdivision of the industry; and that said institute im-
poses no inequitable restrictions on admission to membership therein.
(d) The Supplemental Code is not designed to and will not permit
monopolies or monopolistic practices.
(e) The Supplemental Code is not designed to and will not elim-
inate or oppress small enterprises and will not operate to discriminate
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval ojf said
For these reasons, therefore, I have approved this Supplemental
Code, provided that certain provisiions relat~ing to price publication
are stayed as stated in the Order.
HUGH S. JOHNSON,
JUNrE 5, 1934.
SUPPLEMENTARYP CODE OF F AIR COMPETITION FOR&
THE CONTRACTCORSI' PUM6P INDUSTRY
A DIVISION OF THE MACHINERY ABND ALLIED PRODUCTS INDUSTRY
To effectuate the policy of Title I of the National Industrial
Recovery Act, the following provisions are established as a Sup-
plement~al Co'de ,for t~he Contractors' P~ump Subdivision of the
M~achineryv and A4lllied Products Industry, and together with the
Code of Ftiair Compe~tition of M~achinery and Allied Products In-
dustryJ shall be the standard of fair competition for this Subdivi-
sion and shall be binding on every employer therein.
"LApplicanlt" means the Contractors' Pump MIanufacturers In-
stitute, a Trade organization, whlich organization is truly repre-
sentat~ive of this Sub~division, all members of which are engaged
in the manufact.ure for saler of the products of t~he Contractors'
PupSubdivision of the Miachinery and Allied Products Industry.
"I~;n dustry means the Mlachinery and Allied Products Industry,~
as defined in its Code of Fiair Competition as approved by the Presi-
dlent M/arch 17, 1934, and as suchl definition may from time to time
Subdtivision means this Contractors' Pump Subdivision of
the Ma~chinery and Allied Prod~ucts Industry as defined and set
forth. in P~aragraphl (7) of Article I[I of the N~ational Indlustrial
Recovery~ Codle of the M~achinery and Allied Products Industry
"L Contractors' Pump Subdivision means the manufacture for sale
of dewater~in g and pressure pumps of the followingr types: dia-
phraml1 standarjld centrifugal up to 8" in size and self priming
c~enltrlfugal upF to i"' in size for d~ewatering purposes; plungeran
piston type trench pumps; contractors' water supply pumps, and
road pumpls and parts thereof, intended for use by contractors in
the construction industry, and includes all those engaged in such
manu feature ftor sale.?"
"L Code '" means the Clode of F~air Competit~ion for the Mfachinery
and A~llied Prlodlucts Indlustry, as approvedc by the President March
17, 1934, and. as from tim~e to time amnended.
"LPerson "" means a, natural person, a partnership, a corporation,
an association, a trust, a trustee, a truste i:: bank~rup~tcy, a receiver,
or other entity.
EmIployer "~ means any person engaedin thlis Subdivision either
on. h~is ow~n behalf or as an employer of abr.
Eploee means anyone who is employed in the Subdivision
by any such employer.
The Act means Title I of the National Industrial Recovery Act.
"L The President means the President of the United Stat~es.
The Administrator means the Administrator for Industrial
"L Basic Code Authority means the Code Authority for the bi&-
chinery and Allied Products Indust~ry as constituted by the. Code.
Code Authority means the Code Authority constituted for this
Subiviionas rovided by the Code and by this Supplement~al Code.
r~udosoup a:"Code Authority means the Cod~e Authority for any
group or product classification within this Subdivision.
Publish means to make available to the public.
AhRTICLE III EMZPLO7YMENT PROTTSIONS
The following Articles of the Code, viz: Article III Working
Hours "; Article IV? Wagoes "; and Article VI, General Labor
Provisions ", are hereby made a part of this Supplemiental Code
with the same effect as if they wr-e written into this Supplementa~
AnrTcLE IV -AnorTroN or OrarEn PnovisIOns' or CODE
The following Articles of the Code, vbi: Article II, "C Definitions "
and Article VI, "'Admlinistration ", to the extent that. they shaUl be
applicable to this Supplemental Code as such or as it mayr hereafter
be administered as an autonomous Code; Article VIII M~odifications
and Termination "; and Article IXi Wtithldrawal "; a.re hereby
adopted and made a part of this Supplemental Code withl the same
effect as if they were written into this Supplemlental Code.
A Code Aut~hority is hereby constituted to effectuate the admin-
istration of this Supplemental Code.
(a) During the period, not to exceed sixty days following the
effective date of this Supplemental Code, the Executive Committee
of the Applicant shall constitute a temporary Code Authority. This
temporary Code Authority shall consist of five members andl the
Administrator, in his discretion, may appoint one additional member
(without vote and without expense to the Subdivision).
For the purpose of electing a permanent Code Authority the tem-
porary Code Authority shall, within sixty() da s afeter t rhc effec
tive date of this Supplemental Code,calamengowhhal
known employers shall be invited, (on at least ten (10) daLys notice
by registered mail) with the right to vote either in person or by
proxy. This permanent Code Authorityv shall consist of five (5)
members, and the Administrator in his discretion, may appoint one
additional member (wvithtout vote and wj~hout expense to the Sub-
The members of the Code Authority shall be elected by a vote of
the employers present in person, or by proxy, each employer to have
one vote only.
Members of Code AuthorityS shall hold office for one year or until
their successors are elected.
Action by employers in any Subdivision meeting for the adoption
of procedural rules, revisions or additions to this Supplemental Code,
or the transaction of other business of the Subdivision, shall be by
vote of employers entitled to vote as provided in this Article V,
who are present in person or by proxy duly executed and filed with
Code JAuth~ority, cast and computed in the manner provided in See-
tion (d) Article VI of the Code.
Any employer in the Subdivision shall be eligible for membership
in the Applicant.
Ayemployer in the Subdivision shall be entitled to vote on,
and participate in any endeavors of the Code Authority in the
preparation of any revisions of, or additions or supplements to,
tIhis S'upprlemental Code by pay~Iing his proper prorata share of the
reasonable cost of admimlstermng it, as determined by the Code
(b) Agagregat~ions of employers having a common interest and
common problems may be grouped by Code Authority for admin-
istrative purposes into various groups or product classifications. In
each group or product clarssification, there may be a Group Code
Authority, approved or appointed by Code Authority.
If formal complaint is made to Code Authority that provisions
of this Supplemental Code have been violated by any employer, the
Code Authority or proper Group Code Authority may, to the extent
permitted by thle Act, cause such investigation or audit to be made
as may be deemed necessary. If such investigation is made by the
Group Code Authority, it shall report the results of such investiga-
t~ion or audit to Code Authority for action.
The Code Aut~hority shall, to the extent permitted by the Act,
have the right to investigate and analyze any transaction coming
under the scope of this Supplemlental Code, on which any unfair
competition 'is alleged.
(c) In order that the Code Authority shall at all times be truly
representative of t.he Subdivision and in other respects comply with
the provisions of the Act, the Administrator may provide such hear-
ings as he may deem proper; and thereafter if he shall find that the
Clole Aut.hority is not truly representative or does not in other re-
spects comply w~ith the provisions of the Act, may require an appro-
pIriate modification in the method of selection of t~he Code Authority,
'or any Group-Code Authority.
Any vacancy on the Code AQuthority, due to death, resignation, or
because a member thereof has ceased to be connected with this Sub-
division, shall be filled at a meeting of employers called by the Code
Authority on at least ten days' notice by registered mail sent to all
known employ'ers in this Subdivision, and by a vote similar to the
v-ote by which the retired member was originally selected.
(d) The Code Authority mayapitaTad rcieCm
mittee which shall meet wvith the it Trade Practice Commtesp-
pointed under such other Codes as may be related to the Subdivision
for the purpose of formulating fair trade practices to govern the
relationships between production and distribution employers under
this Supplemental Code and under such others to the extent that such
fair trade practices may be proposed to the Administrator as am~end-
mlents to this Supplemental Code and such other codes.
AnRICan VTI--AccOUNrTING AND COSTING
The Code Authority shall cause to be formulated an accounting
system andr methods of cost findi;ngr nd/or e9t~imati;ng capable 0
use by all employers of the Subdivision. After such system an
methods have beeeni formulated. full details concerning them shall
be made available to all employers. Thereafter, all employers shall
determine and,*or estimate costs in accordance withl the principles
of such method~s.
ARTICLE VII--SELLING BELC`wS REASONABLE COST
When the C~ode Author~ity determines that an emuergency exists
in this Subdivision and that the cause. thereof is destr~uctivle price-
cutt~ing such as5 to render ineffective or seriously endanger thle maiin-
tenance of the prov-isions of thiis Supplemnental C'odle t.he Codle
Aut~hority1 may cause to be determinedl the lowest rea~sonable cost
of the products of thiis Subdivision, such detei~rminationi to be sub-
ject to such notice and hearing as the Adlministrator mayJ require.
The Adm~inistraor mnay approve, dlisapprove, or modify the deter-
miination. Thereafter, during the period of the emergency, it. shall
be an unfair trade practice for anly employer of the Siubdivision to
sell or offer to sell any products of the Subdlivision for which the
lowest reasonable cost has been determined, at such prices or upon
such terms, or conditions of sale that the buyer will pay' less therefore
than the lowest reasonable cost of such products.
When it appears that conditions have changed, the Code Author.
ity, upon its own miitiative or upon the request of any interested
party, shall cause the determiination to be reviewed.
ARTICLE VIII--PRICE LISTs
(a) If and when the Codie Authority determines that in any group
of the Subdivision it has been the generally recognized practice to
sell a specified product on the basis of net price lists, or price lists
with discount sheets, and terms of sale and payment, each employer
engaged in th~e manufacture of such product shall, wsith~in ten (10)
days after notice of such determination, file writh Code Authority, a,
net price list, or a price list wit.h discount. sheet, as the. case may be,
individually prepared by him, showing his current prices, or prices
and discounts, and terms of sale and payment and the Code Author-
ity shall immediately pub~lish and send copies thereof to all known
employers who are cooperating under this Supplemental Clode and
engaged in the manufacture of such specified products.
Revised price lists and/or discount sheets and/'or terms of sale
and payment may be filed fromt time to time thereafter with the Code
Authority by any such employer, to become operative upon t.he date
specified therein, but such revised price lists and/or discount sheets
and/'or terms of sale and payment shall be filed with Code Authority
ten. (10) days in advance of the operative date. Copies thereof,
with notice of the operative date specified, shall be immediately pub-
lished and sent t~o all known employers who are cooperating under
this Supplemental Code~, any of whom mnay file, if he so desires, re-
visions of his price lists andi/or discount sheets and/'terms of sale
and payment, which shall become effective upon the date when the
revised price list and,/or discount sheets and/or terms of sale and
payment first filed shall go into effect.'
(b) If antd when the Code Authority shall determine that in any
group of the Sulbdivision not now selling its product on the basis of
price lists, with or without discount sheets, with fixed terms of sale
and payment, the distribution or marketing conditions in the group
are the same, or similar to, the distribution or marketing conditions
in a grOUoup where thie use, ofE price lists, with or without discount
sheets adfixed term of sale an paymlent is well recognized, and
that a~ system of selllingr on net price lists or price lists and discount
sheets with fixed terms ofE sale and payment should be put into effect
in such group, then each employer in such group shall within twenty
(20) days after notice~ of: such determination, file with the Code Au-
thority net price lists or price lists and discount sheets, with fixed
terms of sale and payment, showing his prices and discounts and
terms of sale anrd payment, and such price lists and/or discount sheets
and/or terms of sale and payment may be thereafter revised in the
mnn~er hereinabove provided. Provided that Code Authority shall
make no determination to place anyi product of the Subdivision (not
nowF on a price list basis) on a price list basis, as provided in this
pamrar~aph (b) of Article VIII unless affirmative consent to such de-
termmattio is given by a 66%T6o vote of employers who are cooperat-
ing in this Sulpplemental Code and who are at that time engaged in
manu featuring such product. The eligibility requirements, method,
and effect of such voting shall be the same as provided in the Code
and in Article V hereof.
(e) Code Authority, for thte purpose of determining the lowest
reasonable cost, shall, to the extent permitted by the Act, have power,
onl its own initiative, or on the complaint of any employer, to investi-
gate any price or the terms of sale and payment for any product;
abnd, for the purpose of the investigation thereof, to require such em-
ploger to furnish such information concerning t~he cost of manufac-
turmg~ and selling such product as Code Authority shall deem neces-
sary or proper for such purpose, and as the Act mayI allow.
No employee r shall sell directly or indirectly by any means w hat-
soever, any poduct of the SubdIvision covereR ypoiin fti
Article VII t a price or at discounts, or on terms of sale and
payent, different from those provided in his own current net price
litor price lists and discount sheets, and terms of sale and
ARTICLE IX-CGonorITous or SaL;E
SECTION 1. Published prices shall include shipping weights and
all prices shall be f.0.b. employers works; provided, however, that
any employer mlay quote a delivered price to the F'ederal Government,
or any State, County, or Municipal Gaovernment, on any product of
Bsee par~agraph 2 of order aDproving this Code.
the Subdivision, which price shall not be less thazn the lowest filed
f.o.b. factory price plus the actual transportation charges from the
plant most favorably located with relation to point of delivery.
SECTION 2. On sales from warehouse stocks, the price shall not be
less than the published price together with the freight at the carload
rate to place of delivery.
SECTION 3. In the sale of products no express gauaranty of mate-
rials and workmanship shall be made to be effective beyond six (6)
months after date of shipment.
ARTICLE XL-UNFram TRADE PRACTICES
Each of the following acts and practices is deemed to be inimical
to the best interests of the Subdivision andl of the public, and each
is, therefore, hereby declared to be, andl to constitute, an unfair
method of competition andl is hereby~ prohibited; viz:
(a) The renting of any new product with the object of con-
verting the transaction into a sale, provided, however, that this pro-
vision shall not, prevent the renting of products~ of t~he Subdivision
on bailment leases in those states where such transactions are legally
(b) Selling any new product subject to acceptance after a trial
or demonstration on the purchaser's job, except that in t~he case of the
first new product of any distinctly new type or size, with new model
designation, if no product of the same type andl size has previously
been sold, or in any case where a product may be sold to b~e employedi
for a distinctly recognized newr use, anyr employer many include, in
the contract of sale a provision permiitting rescission of th~e contract
by the customer within ninety (90) days from late of shipment.
(c) Algreeing upon, by option or otherwise, w~ith any prospective
purchaser of any new product., the: price of a future sale; or agree-
ing to give any purchaser of any new product any reduction in the
contract sales price contingent on future price reductions.
(d) The sale or offering for sale of any discontinued or non-cur-
rent model product as a new model or current machine, provided,
however, that when a discontinuedl or non-current model machine is
offered for sale, the quotation to thle pr~ospective purchased shall sh~ow
in writing the age of the discontinued or non-curr1ent model product,
and the serial number and price'thereof.
(e) The sale of any product. upon other than a unit price basis.
(f) No employer of the Subdivision shall require that the pur-
chase or lease of any products of the Sulxlivision be a prerequisite
to the purchase or lease of any other products.
(g) So long as the maker of any product of this Subdivision bear-
ing the: m~aher's name or trademark, which has required special
designing, research or development expense (or his successor in busi-
ness) continues to make and supply such spare, repair andl replace-
ment parts therefore, it shall be an unfair trade practice for any
other person to manufacture any repair parts for such product of the
Subdivision unless the name of such other person manufacturing
such repair part shall be plainly marked on the part (or, if thiis be
impracticable, on the package or tag) so that the ultimate user may
be clearly informed that such repair part was not made by the
original maker (or successor to such maker) of the product of the
Subdivision for which said repair part is manufactured.
(h) TIhe secret payment or allowance of a rebate, refund, commis-
sion, credit, unearned discount,. or excess allowance in the form of
money or otherwise, or th~e offering or extending to a~ny cusgtomer anyn
special privilege not extended to all customers of? the same class, for
the purpose of! influencing a sale.
(i) The payment, or promise to pay, to any agent, fiduciary, or
representative, of money or valuable thing, with or without the
ksnowvledge of his principal for thre purpose of influencingr any sale to
his principal. TIhis provision shall not be~ construed to prohibit free
and general distribution of particles commonly used for advertising
except so far as such articles are actually used for commercial bribery
as hereinabove dlefinedl.
(j) NJo employer o-f the Subdivis~ion shall pubhlish ad~ver1tising
(whether printed, radio, display or of any other nature), which is
misleading or inaccurate in. any material particular, nor shall any
employer in any way mlisrepresent nyl goods (including but without
linutation its use, trade-mark, g-ade, quality, quantity, origin, size,
substance, character, nature, finish, material, content or preparation)
or creit terms, values, policies, services, or the nature or form of the
(k)\ The pubhlishingr or circularizing of any threat or suit for
infringercment of patents or trade-marks, or of any other legal pro-
ceedings, not in good faith which would tend to harass competitors
or intimidate th-eir customers.
(1) AIny discrimination between purchasers of the same class,
by the sale of any article having a published price, at any price
below the seller's published price by means of direct or indirect
price concessions, or by means of anyp privilege not extended to
such purchas~ers generally.
(m) The engaging in destructive price-cutting by any employer
in thie Subdivision.
ARTICLE XI-Sams ron ]ExronT
Thre provisions of this Suppemnt x)sal Cd c ncern apricing
and ~marketing (Artiles VII, VIII ande IX)shallnot pply to
direct export sales of any product or to sales of any product des-
tined ultimately for export. The term export shall include all
shipments to all places without the several states of the United States
annd the District of Columbia; provided, however, that no shipment
to any territory or possession of the U~nited States shall be con-
sidered an export wIhecn any employer is engaged in thle Subdivi-
exon mn such territory or possession.
(a) ~As provided by Section 10 (b) of the Act, the President may
from time to time cancel or modify anyorer appoal icne
rule or regulation issued under Title IofteA.
(b) Any amendments, additions, revisions, or supplements of
this Supplemental Code, proposed by Code Authority, and ap-
proved by 66%%r of the employers, shall be in full force and effect
upon approval by1 the President. The eligibility requirements,
method, and effect of such voting shall be the same as provided in
the Code and in Article V' hereof.
ARTICLE X~III-WTITHDRAWA~' L
Upon thiirty (30) das's notice to Basic Code Authority and to
the Administrator this Subdivision may, upon the concurring affirml-
ative vote of employers within the SubdivTision entitled to cast
twfo-thirds or more of all the votes that might be cast by all em-
plyers within the Subdivision entitled to vote thereon, w~it~hdraw
fromthe urifjdiction of Basic Code Authority. The eligibility of
voters an t dJ the method and effect of such voting shall be in accord-
ance with the provisions of Section (d) of Airticle VI of the Code
and with the provisions of this Supplemental Code. There after
this Supplementazl Code, together with the provisions of t~he Code
except such portions of Art~icles I, II, VTI and VII as are not per-
tinent thereto, as determninedl byv the Codle Authority and the Admin-
istrator, shall become a.nd2 be the code governing this Subdivis-ion,
and the Code Aut~hority shall for this Subdivision become and be
the only Code Auth~ority, and shall performs all the functions with
Applicant imposes and shall impose no inequitable restrictions
on membership therein. The Supplemental Code presented by it
is not designed to promote monopolyv and sha~ll not. be so construed
or apphied as to oppress or eliminate small enterprises or discrimi-
nate against them, and is designed to effectuate the policy of t~he
ARTICLE XVT-EFFECTIV'E DATE
This Supplemental Code shall become effectivee and binding on all
persons engaged in the Subdivision on the eleventh day after its
approval by t~he President.
Approved Code No. 347i-Supplement No. 11.
Registry No. 132&4)3.
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