Supplementary code of fair competition for the oil field pumping engine manufacturing industry (a division of the machin...


Material Information

Supplementary code of fair competition for the oil field pumping engine manufacturing industry (a division of the machinery and allied products industry) as approved on July 25, 1934
Portion of title:
Oil field pumping engine manufacturing industry
Physical Description:
12 p. : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Oil well pumps -- Law and legislation -- United States   ( lcsh )
Pumping machinery -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1323-05."
General Note:
"Approved Code No. 347--Supplement No. 35."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004943098
oclc - 655330834
System ID:

Full Text






(A Division of the Machinery and Allied Products Industry)


___ _

U.S. DEP091TO R'


I' 'I
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cenla

Approved Code No. 347--Supplement No. 35

Registry No. 1323--05


This publication is for sale by the Superintendent of Documents, Governmzent
Printing Office, Washington, D.O., and by district offices of the Bureau of
Foreign rand Domestic Commerce.
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commcerce.
Da~llas, Tex.: Chamber of Comamerce Building.
D~etroit, MI/ich.: 801 First National Bank Building.
Houston, T'ex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commaerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Fiederal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Custombouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburg~h, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Oli~ve Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.

Approved Code No. 347--Supplement No. 85


As Approved on July 25, 1934


An application having been duly made ~ur~sonnt to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Supple-
mental Code of Fair Competition for the Oil Field Pumping Enlginle
ra nu fac~tur1i ng Subdivision of Ma~chinery and Allied Products In-
dustry, and hearing having been duly held thereon and the alnnt~exe
report on said Supplemental Code containing findlings' with respect
thereto, having been made and directed to the Presidenlt:
~NOWC, THE-EREFORE, on behalf of th~e President of the UnTlited
States, I, Hugh S. Johnson, Administ-rator for Industrial Recovery,
pursualnt to authority vested in me by Exe~cultive Orders of the
President, including Executiv~e Order No. 0343-A, dlatedl D~cembller
30, 1933, and otherwise; do hereby incorpm late by reference said
annexed report and do find that said Suppelemental Code c~ompllies
in all respects with the pertinent provisions and will pr1om~ote the
policy and purposes of said Title of said Act; and do her~ebore
that said Sjupplementalt Code of Fair Competition be an"d dEit is
hereby approved subject to the condition that the provisions of
Article VIII, Section (a), insofar as they prsc~cribe a waiting period
between the filing with the Code Authority (or such agency as may
be designated in the Suppleme~ntal Code) and the effective date o
prie lsts asoriinalyfiled and/or revisedl price lists or revised
terms and condlitions o ae eadte eeyaesae edn
my further order.
HuancH S. JoINson,
Adm~inistr~ator for lInd-ustrial R'covery'2.,
Approval recommendded
BCatrroN W. ME~RRAY,
D~ivisionz Adminis~ratof~r.
Jul~y 925, 1934.
76188 *-829-140----4 (11


The WVhite Hiouse.
SIR : This is a report on the Supplemental Code of Fair Comnpeti-
tion for the Oil Field Pumping Engine M~vanufacturing SubdivTisio~n
of the Machinery and Allied Products Industry, public hearing hav-
ing been conducted thereon in Washingiton, D.'C., Decemiber1 21, 1933,
in awrd~~~1~ance withl the provisions of Title I of the National Ilndus-
trial Recover~ly Act. Every person. wcho filed a request for an appear-
ance w-as freely heard in public and all statutory and regulatory
requirements were complied with.

The Oil Field. Pumping; Engrine M~anulfacturers A~ociaition being
truly representative of this Sub~ldivision of the Machinery and A~llied
Products Industry, has elected to avail itself of the option of sub-
mitting a Supple~mental Code of Fair Competition, as provided in
pa nragraph (2), Article I: of the B~asic Code for the Miachinery and
Allied Products Industry approved byr you on the seventeenth~ day
of Mar reh, 1934.
This Subdlivision represents a part of th~e capital goods Industry,
ma7nu~far ~~ctrin and shelling internal combustion engmets of slowr-
speed, st~ationary, oil-w~ell pumping type, using natural gas or oil
for fuel, accessories th~ereto and parts thereof.

In 19'29, this Subdivision of the Industry employed approximantely
1,657? persons; 1,496 are estimanted to have been factory wo~rkILers.
Since 1929, annual sales dc1enc~reae approximately 85'lc in 1032 and
employment 67%0 as of the first quarter of 1933. Since then, factlory
employmnent has increased to 1,046 or: 113%r, andL man-hours 117CI..
In June 1933, about 65% of the! factory workers were working
more than 40 hours per week, anld 28%~ wrcre receiving lessj than 140
cr-nlts per hour with a lowest minimum wage rangmig between 25 and
29.5 cents. The lowest. minimum wtage paid byr any reporting con-
cern as of October 15, 1933, ranged between 30 and 34.9 cents.
Thne minimum wage provisions for this Subdivision are based on
a flat minimum hourly rate of 32 cents per hour for the South and
the T~ie:~followig ct population differentials for all other sections of
Over 50,000 population_ __ .. ..---,--, 404 per our
10,000 to 50,000 population ... .... .,--,-, 38~ per hour
10,000 poi~ulation aInd undler__,,,,,_---_ : ... .%- F"l hn'l

In addition to the minimum wvage rates shown above, the Supple-
mental Code provides thazt women engaged in substantially the same
work as men s~hall receiv-e the same rate of pay as such men empllo~y-
ees, and that the minimum wage for womecn employees engaged in
plant operations shall be not less than 87.5 per cent of the proper rate
for the locality in which employed as speedfied, and the minimum in
the South shall be not less than 32 cents per hour.

Estimratedl amnbe~r of factory ucr~rker receiving cess th~an designated hourly

Distribution. of factory
wo:rker receiving le~s
than the mamimum
Proposed minimum hourly rates rgrls flcto
Approxi- Approxi-
mate mate
percent number

40 cents (other U .S.).... .... .... .... .... .... .... .... .... .... .... .... 28. 1 235
38ce ts(o he U S... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 21. 4-- 180
86 cents (other U .S.) .... .... .... .... .... .... .... .... .... .... .... .... 14. 8 124
32 cents (South) .... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 8. 3 70

BEased on the distribution as of June 15, 1933, and on thne specified
percentages of thle number of factory workers receiving less than the
dlesirnatedl rates shown in the above table, the adoption of the pro-
posed minimum rates will probably cause an increase in factory pay-
rolls. Th~e estimated increase as of June 15, 1933, regardless of loca-
tion of thie work~ers, will probably under thie most favorable condi-
tions, not xcei~ed 4.0 percent assuming only upward adjustment in th
bracklets below the 40-cent minimum and no change 'in man-hour
Article I states thle purpose of thie Supplemecntal Code.
Article II accurately defines spec~ifle terms employed in this Sup-
plemental Code.
Article III. The labor provisionls of the Barsic Co~de for the M~a-
chinery and Allied Products Industry as approved March 17, 1934,
are incorporated by reference as the labor provisions of this Suzpple-
mental Code.
Article IV`r~ adopts the relevant portions of Article II "' Definitio~ns '"
and _Article V~I "Acidministration ", and ASrticle VTII`I, Mfodificat~ions
and Termination of the B~asic Code for th~e Manchinery and Allied
Products Induostry, as approved March 17, 1934.
Article V establishes a Code Aiuthority cojnsisting of seven mema-
bers, one of whom may be elected from and by the employers who
are non-members of the Alpplicant Association. The Administ rator,
in his discretion, may appoint one additional member (without vo~te
and oithiout expense to the Subd~ivision).
AQrticle VTI provides for an Ic~countllng system anld mcthlods of
cost findings and/or estimating..
ABrtic~le VII ~r~ov-idel s for the determination of a lowest reasonable.
cost, when an emnergrency exists in th~e Sulbdivision as a result of de-
structive pice- utn. The Adctm in ist rator mayT approved, dli sapprove,
or modify the determination.

Article VIII provides for methods of setting up, revising and filing
price lists and discount sheets atnd terms of sale anrd payment.
Article IX sets forth the fair trade practices which have been
especially designed to effect fair competition in th3is Subdivision.
Article X defines export territory and provides: that filedd price lists
are nlot applicable to export shipments.
Article XI contains the mandatory provisions contained in Section
10 (b) of the Act, and also provides for the submission of proposed
amendme~tnts to the Supplemental Code.
~Article ~XIII provides for the withdrawal of this Subdivision from
jurisdiction of the Basic Code Authnorit~y and for the continued func-
tioning of this Subdivision as an individual industry under its own
code .
Article XIIII: stipulates that there shall be no inequitable restric-
tions and provides against monopolies.
Article XIV gives the effective date of this Supple~mental Code.
The Assistant Deputy Administrator in his final report to me on
said Suplplemzental Code having found as herein set forth and on th3e
basis of all the proceedings in this matter:
I find that:
(a) Said Supplemental Code is well designed to promote the~ p~oli-
cies and purposes of Title I of the National Industrial Recovery
Act, including removal of obstructions to the free flow of inter-
stalte and foreign commerce which. tend to diminish thei amount
thereof and will provide for the general welfare by promoting thre
organization of industry for the purpose of cooperative action among
the trade groups, by inducing and mnainrtaining the united action, of
labor andl management under adequate governmental sanction and
supervision, by eliminating unfair competitive practices, by promcot-
ing the fullest possible utilization of the present productive ca-
pacity of in~dust~ries, by- avoiding undue restriction of production
(ecs~ept. as mnay be temporarily- required), by increasing the con-
sumption of indlustr~ial and agricultural products through increasing
purchasing power, by reducing and relieving unemployment, by im-
proving standards of labor, and by otherwise rehabilitating industry.
(b) Said Subdi~vision normally employs not more than 50,000
employees, and is not classified by me as a major industry.
(c) The Supplemental Code as approved complies in all respects
with the pertinent provisions of said Title of said Act, including
without limitation Subsection (a) -of Section 8, Subsection (a1) of
Section 7, and Subsection (b) of Section 10 thereof ; and that the
applicant group is an industrial association truly representative oQ
the aforesaid Subdivision of the industry; and that said association
imposes no inequitable restrictions on admission to mlembershipl
(d) T'he 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 smraUl enterprises and will not operate to discriminate
against them.

(f) Those engaged in other steps of thie economic process have not
been depriv-ed of tihe r~ight to be heard pr~ior to app~roval of saidt
Suppl'emental Code.
]For these reasons, therefore, I have app~roved this Supplementall
Code, provided that certain provisions relating to price publication
are stayedl as stated in the? Order.
Respect fully,
Jrr~ 25, 19341.




To effectuate the policy of Title I of th~e National Industrial Re-
covery Act, the following provisions are established as a Supple-
mental Code of Fair Competition for the Oil Field Pumping Engine
MSanufacturing Subdivision of the Machinery and Allied Products
Industry, and together with the Code of Fair Compeetition of Mla-
ch-inery and ~Allied Products Industry, shall be. the standard of fair
competition for this Suxbdivision, and shall be binding on every
employer therein.

"Applicatnt means the Oil Field Pumping Engine Manufacturers'
Association, a trade organization, all members of which are engaged
in the manufacture for sale of the ]products of the Oil Field Pump-
ing Engine Manufacturing Subdivision of the MSachinery and Allied
Products Industry.
Industry means the Miachi-nery and Allied Products Industry,
as defined in its Code of Fair Competition as approved by the Presi-
dent, and as such definition may from time to time he amended.
Subdivision means the Oil Field Pumping Engine Manufactur-
ing Subdivision of the Machinery and Allied Products Industry as
decfined anld set forthi in paragraph 20, Article II of the Code of Fair
Competition of the Ma~~ch-ineryy and ~Allied Products Industry as
follows :
Oil Field Pum~ping Engine Manullfalc-turing Subdivision means
the manufacture for sale of internal comnbustion engines of the slow-
siTpeed statfio~nary, oil-well pu~mpngn type, using na~ura~l gas or oil for
fuel, accessories thereto and parts thereof, and includes all thosei
engaged in such manufacture for sale."
Code means the Code of Fair Competition for the Miachinery
and Allied Products Industry as approved by the President MSarch
1'7, 1934, and as from time to time amended.
Person means a natural person, a partnership, a corporation, anl
association, a trust, a trustee, a trustee in bankrruptcy, a receiver or
other entity.
Einployer means any~ person engaged in this Subdivision either
on his own behalf or as an employer of l~ab'or.
Employee means anyone who is employed in thie Subdivision by
any such em~ploy~er.

"~ The Act "' means Titlec I of the National Industrial Recovery Act.
The ]President "' means the President of the UnTlitedl States.
LThe Administrator means the Admuinistraltor for Indlustrial
"' Basic Clode Authority means the Code .Authlority for the M5a-
chinery and Allied Produrct~s Indus-try as constitu~ted by the Code.
"Code Authority means the Code Authority constituted for this
Subivsin s rovidedl byT the Code andi by this Suplple~mental Code.
"udvsinaL Group Cod AuIthorit' '" mecans the Cnod Authorityg for any
group or product classification within. this Subdivision1.
"Pc ublish means to mlake available to the public.
The following Articles of the Code, viz: Article II[I, Working
HFours "* Article IV,' Wages '"; and Ar~ticle V~, Gecneranl Labor Pro-
visions are hereby made a part of this Supplemental Code, with
the same effect as if they were wrritten into this Supplemental Code.
AnnTCLE IVT-AnDom~on or OTHER Pnovi.SIoISs or CODE
The following Articles of thre Code, viz,: Article ]II Definitions "'
and Article VtI, "Administration ", to the extent thant thney shall be
applicable to this Supplemental Code as such or as it. may hereafter
be administered as an autonomous Code; and Article VII~I, Modifi-
cations and Termination are hereby made a part of this Sup~ple-
mentl Cdewith their same effect as if they were written into this
mrttSuplplementa Code.

(a) A Code Authority for this Subdiv:ision is hereby constituted
to administer, supervise and facilitate the enforcement of the Code
and of this Supplemental Code in the manner and to thre extent pro-
vide~d in the cod~e anzd in this Suppleme~ntal Code.
(b)_ During a period not to exceed sixt (60) days following the
effective date and pending the election of the permanent Code Aiu-
thority, the executive committee of the Applicalnt shall constitute- a
temporary Code Authority. The Administrator in his discretion
may appoint one additional member (wiithout vote and without exr-
pense to the Subdivision).
(C) The Applicant shall, by written notice senct by registered m~ail
to llemployers known to th Applicant, call a meetingr of employes
to be held within sixty (60) dlays after the effective da.te of this
Supplemental Code for the purpose: of adopntingr procedural rules and
regulations for the election, orgranizatio;n and operation of the per-
manent Code Authority andl el~ectingr a permanent Code Authorityv
which shall consist of seven members, one of whom masy be elected
from and by the employers who are non-memberrs of the AIpplicant,
if such representation shall be so desired by such employers. TPhe
Administrator, in his discretion, may appoint one addlitional mem-
ber (without vote and without expense to the Subdivision). The
permanent Code Authority so elected and appointed shall succeed the
temporary Code Authority.

Any vacancy on the Code Aluthority due to death or resiganationl
or because a member thereof has ceased to be connected with the
Subdivision shall be filled at a meeting of employers called byT Code
Authority on at least ten (10) days' notice by registered mail sent
to all known employers in the Subdivision and by a vote similar
to the vote by which the retired member wvas originally elected.
In order that the Code Authority shall at all times be truly rep-
resentati~ve of the Subdivisionr and in other respects comply with
the provisions of the Act, the Administrator may pr1escr1ibe such
hearings as he may deem proper; and thereafter if he shall find
that the Code Authority is not truly representative or does not in
other respects comply with the provisions of the A1Ict, may require
aln appropriate modification of the Code Authority.
Each trade or industrial association directly or indirectly par-
ticipating in the selection or activities of the Code Authority shall
(11) impose no inequitable restrictions on membership, and (2) sub-
mit to the Administrator true copies of its articles of association,
By-Laws, regulations and any amendments when made thereto,
together with such other information as to membership, organ-iza-
tion, and activities as the Administrator may deem necessary to
effectuate the purposes of the Act.
(d) Any employer shall be entitled to vote at the election of the
permanent Code Authority and at other meetings of employers and
share in the benefits of thne activities of Code Authority and may
participate in any endeavors of Code Authority in the preparation
of any amendment or revisions of, or acdditions or supplements to,
thlis Supplemental Code by paying or agreeing to pay, as and when
ass:mwed, his proper pro rata share of the reasonable cost of admin-
isterjng this Sjupplemental Code as dleterminred by Code ALuthority.
(e) Action by employers in any Subdivision. meeting for the elec-
tion of Code Aiuthority shall be by vote of the employers entitled to
vote as provided in Section (d) of this A~rticle V, and who are pres-
ent in person or by proxy, each such employer to have one vote only.
Action by employers in any Subdivision mzeeting for the adoption of
procedural rules, revisions or additions to the Supplemental Code,
or the transaction of other business of the Subdi~vision under this
Supplemnental Code, shall be by~ vote of the employers in the Sub-
division who are entitled to vote threat as provided in SectionJ (dc),
Article Vr of the Supplemental Code and ar1e present in person. or by
proxy9 duly execult;:l and filed with Code AuthorityT; cast and com-
puted in the manner provided in Section (d) Artic~le VI of the
Code. All questions as to the number of votes which each employer
sha1 pcllbentitledr to cat, at, nyo meetings of employers other than the
meeting held to vote for the election of the p~ermnennt, Code AuLlthor-
ity shall be determined by Code Authority in accordance with S~c-
tion (dl) Article VI of the Code.
(f ) Employers in this Subdlivision having a commnonz interest and
common problems may be grouped by Code Authority for adminis-
trative purposes. Thl~ere shall be a group Code Authlorit~y approved
or appointed byr Code Authority for each such group.
(gS) If formal comprlaint is made~ to Code Authority that p~roni-
sions of this Supplelmental Code have been violatedl~ by any employer,
Code Authorityr or the proper Group Code Authority mray, to th

extent permitted byf the Acit, cause such investigation or audit to be
made as may be deemed necessary. If such investigation is ma-de by
Group Code .Auth~orityg, it shall report the result of such investiga-
'tion or audit to Code Authority for action.
(h) The Code Authority may app~oilt, a Trade Practice Commit-
tee which shall meet with the Trade Practice Committees appointed.
under such other codes as may be related to th Subdtivision for the
purpose of forrmulating fair trade practices to govern the relation-
ships betwTeen production and distribution empoesudrti
Supplemental Code andl under suchl others to thef exten tht suc
fair trade practices maynS be :proposed to thle Administr~ator as amend-
ments to this Suppleme~ntal Code and such other Codes.
ARTICLE VI-AccooNTrz~ BNm Cosnw~ro

The Code Autority shall cause to be formulated an, accounting
system and methlods of cost. finding and /or estimating capablei of use.
byg all employers of the Subdivision. After such system. and maeth-
odls have been formullated, full details concerning them shall be madej
available to all emuployers. Thereafter all employers shall deter-
minee and/or estimate costs in accor~dance wiith the principles of such


Whlen the Code Authority3 determines that an emergency exists in
this Subdivision and that the cause thereof is destructive p~rice-
cutting such. as to render effective or seriously endanger thes main-
tenance of the provisions of this Supplemaental Code, the3 Code
Authority may cause to be determined the lowest reasonable cost. of
the products of this Subdivision, such determinlation to be subject
to such notice~ and hearings as the .Administr~ato r may require. TIlhe
Administrator may approve, dlisappr~ove rmdf tedtria
tion. The reafrt~er, dur~ingr the periodf" of the dif emergec, iet shallb
an unfair trade practice f-or any employer of t~he SubdiviTsion1 to sell
or offer to sell any products of t'he Subdivisionl for which the lowest
reasonable cost has been dletermnined, at such prices or upon such
terms or conditions of sale that the buyetr will pay less t~her~efor than
the lowest reasonable cost of such products.
W2then it. appears1~ th~t. conditions haver changed, th~e Code Aluthor-
ity, upon its own initiative or upon the request of any interested
party, shall cause thte determination to be reviewed.

(a) If a~nd when Code Authority determines that. in. any group
of thre Subdivision it has been the generally recognized practice to
sel a specified product on thre basis of net price lists, or price lists
with discount sheets, and terms of sale and payment, each employer
engaged in- the manufacture of such, product, shall, within ten (10)
days after notice of such determination, file with Code Authority a
net price list, or a price list wFith discount sheet, as the case may be,
individually prepared by him, showing his current prices, or prices

anld discounts, and terms of sale and payment for such. specified
product, and Code ~Authority shall immediately publish atnd send
copiesr thereolf to all known epn1loyers who a-re. cooplrat~ing ulndler
this Supplemental Code as described- in. Article V (d) and engaagedl
in the manufacture of such specified products.
Revised price lists and/or discount sheets and/or terms of sale and
payment may be filed from time to time thereafter with th~e Code
Authority by any such employer, to become operative upon the date
specified therein, but such revised price lists and/or discount, shl-eets
and/or terms of sale and payment shall be filed with the Code Au-
t~hority ten (10) days in advance of the operative date. Copies
thereof, with notice of the operative date specified, shall be imme-
diately published and sent to all employers cooperating under this
Supplemental Code as described in Article V (d), any of whlom may
file, if he so desires, revisions of his price lists a~nd/or discount
sheets and/or terms of sale and payment, which shall become effective
upon the date when the revised price list and/or discount sheet
and/or terms of sale and payment first filed shall go into effect
(b) I~f and when Code Authority shall determine that in any group
of thre Subdivision not nowc selling its product on the basis of price
lists, wmith or without discount sheets, with terms of sale and payment,
the distribution or marketing conditions in the group are the same as,
or similar to the distribution or marketing conditions in a grro-up
where the use of price lists, with or without discount eets
and terms of sale and payment is well recognized, a~nd that a system
of selling on net price lists or price lists and discount sheets with
terms of sale and payment for such specified product should be put
into effect in such group, then each employer in such group shall,
within twenty (20) days after notice of such dletermination, file with
Code Authority net price lists or price lists and discount sheets, with
terms of sale and payment, showing his prices and discounts and
terms of sale and paymelnt, and the Code Authority shall immediately
publish and send copies )thereof to all kInown employers who are
cooperating under this Supplemental Code, and such price lists
and/or discount sheets and/or terms of sale and payment may be
thereafter revised in the manner hereinbefore provided. Provided
that Code Authority shall make no determination to place any prod-
uct of the Subdivision (not nrow on. a price list basis). on a price list
basis, as provided in this Section unless affirmaative consent to such
determination is giv~en. by a majority vote of emplloyers who are at
that time cooperating under this Supplemnental Code as described in
Article V (d), and are engaged in. manufacturing such. product. The
eligibility requirements, method anld effect of such voting shall be
the same as is provided by Article V.
(c) Code Ahuth~ority for the purpose of determining the lowest
reasonable cost, shall, to the extent permitted by the Act, have power
on its own initiative or on the complaint of an~y employer, to investi-
gate any price or the terms of sale and payment for any product;
and, for the purpose of the investigation thfereof, to require an em-
ployer to furnish such information concermng the cost of :manufac-
turing and selling such product as Code Authority shall deem neces-
sary or prlop'er for such purpose, anrd as the Act mray allowv. Upon
1 See paragraph 2 (3) of order approving this Code.

req~uest, sarid norninorton thlus obtained shall be available to the
No employer shall sell directly or indlirectly by any means wrhatso-
ever, anyT product of the Subdlvision covered by prov'\isions of this
Article VIII at a price or at discounts or on terms of sale and pay-
ment., different from those provided in his own clrr~ent nect price
lists, or price lists and discoulnt sheets, and terms of sale and paymenrrt.

Each of the following acts and 3pr~nd~ices is deemed to be inimical
to the best interests of the Subdi~vision and of the public and eachr is,
therefore, her~eb.y dec~lared to be, andt to co-ns~tit ute, an unfair method
of competition and is hlereby) prlohibited1, viz:
1. The secret payment or allowance of a, rebate, refund, commnis-
sion, credit, unear~nedl disour~nt, or excess allowance, whelthler in the
form of :money or otherw1\~ise or t~he offering~ or ex-tendlngr to any
customlrr any speccial service or privileges~ not extt~lcend to all cus-
tometrs of the same class, for the purpose of influlenc~ingr a sale.
2. No employer~l of th~e Subdivi~l-lon. shall give, permit to be given,
or directly offer to giveP anythflin~ of vPalue for the purpose e of in-
fluencing or r~ewarding tjhe action of any employee, agent, or repre-
sentativ-e of another in relation to the business of the employer of
such employee, the principal of such agent or thre repr~ese~ntedt party,
without the know-ledge of such employer, principal or party. Coma-
mzercial briberyJ provisions shall not be construed to prohi~bit free
and general distrib~ution of articles cocmmo~nly used for advertising
erxcept so far as such. artic~les are actuallyJ used for conune~lrciall
bribcr~y as hereinabov~e decfinedl.
8. Any di c~rimination between purchasecrs of the same class by
the sale of an~y standardized~ article, having a pulblishedr~ pricec, at
anzy rI?'Ce below the seller's publishled price, by .means of direct or
indirect price concessions, or by means of any privilege not extended.
to such purl-'~~chars generally~.
4. N~o empiloyrli J of the Subdivision shall pub~lish~ advertising g
(wvhethecr prilnted~, radio, display or of any other nature), which is
ni slead ing cor inalcculrate in any material paRrticular, nor shall any
emnploy~er in any way' misrepre~sent any goods (includilngr but witho-ut
limlitation its use, trade-mark, grade, quality, qualntity, origin, size,
substance, ch~aracte r, nature, finish, material, content or preparation)f
or credit terms, values, policies, services, or the nature or form of
th~e business conducted.
5. Th~e publishing or circularizingr of thrleats of suits for in~fr~inge-
ment of patents or trade-marks, or of any other legal7 pro.ceedtiwa!s,
not in good faith, which would tend to harass competitors or int~imi-
date their customers.
6i. The engagaing in destr~uctiv-e price-cuttinlg by any employer of
this Subdlivision.

The provisions of this Supplemental Code concerning pricing and
mark~leting shall not apply to direct export sales of any product, or
to sales of any product destined ultimately for export. T'he term

" export shall include all shipments to all places without the several
states of the United States and thre District of Columnbia; provided,
however, that no shipment to any7 territory or possession of the
United States shall be considered an export when any employer is
engaged in the Subdivision in such territory or possession.

(a) As provided by Section 10 (b) of the Act, the President may
from time to time cancel or modify any order, approval, license,
rule or regulation issued under Title I of the Act.
(b) Any amendments, additions, revisions, or supplements of this
Supplemental Code, proposed bty Code Authority, aind authorized
by the affirmative vote of two tirdls of the employers shall be in
full force and effect upon approval by the President. The eligibility
requirements, method and effect of such voting shall be the same
as provided by Article VT hereof.

Upon thirty (30) days' notice to the Basic Code Aulthority and to
the Administrator, this Subdivision may, upon the concurring af-
firmative vote of employers within the said Subdivision entitled to
cast two-thirds or more of all the votes that might be cast byT all
employers within the Subdivision entitled to vote thereon, withdraw
from the jurisdiction of the Basic Code Authority. The eligibility
of voters and the method and effect of such ~voting shall be in ac-
cordance with the provisions of Article V hereof. After and in the
event such withdrawal is accomplished, this Supp~lemental Code,
together with the provisions of the Code, shall become and be the
sole code governing this Subdivision and the Code Authority shall,
for this Subdivision, become and be the sole Code Authority and shall
perform all the functions with respect thereto.

Applicant imposes and shall impose no inequitable restrictions on
membership therein. The Supplemental Code presented by it is not
designed to promote monopoly, and shall not be so construed or
applied as to oppress or eliminate small enterprises or discriminate
against them~, and is designed to effectuate the policy of the Act.
T his S uppn l emePn talt C ode nsh all becom e effectiveo andl bin din g* on
all persons engaged in the Subdivision on the eleventh day after its
Approved Code No. 347--Supplement No. 35.
Registry No. 1323-05.

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