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For sale by the Superintendent of Documents, Washington, D.C. - Price 5 centa
Approved Code No. 84 Supplement No. 2
Registry No. 1107--02
NATIONAL RECOVERY ADMINISTRATION
SUPPLE ME NTARY
CODE OF FAIR COMPETITION
HAND CHAIN HOIST
(A Division of the Fabricated Metal Products
Manufacturing and M~etal Finishing
and Metal Coating Industry)
AS APPROVED ON JANUARY 80O, 1934
WE DO OUR PARE
GOVERNMlENT PRINTING OFFICE
WASBINGTON : 1934
Thtis publication is for sale by thle Superintendent of Doculments, Government
Printing Office, We~llinlgton, D.C., andi by district oItice.S of the! Bureau of Foreig~n
and Domestic Commerce.
DISTRICT OFFICES O1F THE DEPARTMENT OF COMMERCE
Atlallnt. Ga.: 504- Post Office Buildlingr.
B~irmninghamn Ala.: 257 Federclal Building.
Duslton.l J1n.4s. : 1801 Customhouse.
Buffalo, N.Y'.: Chambert'l olf Commerce Buildingr.
Cha~rleston, SOC.: Chanmber of Commaerce Buildling.
Chicango, Ill.: Suite 1706, 201 North W~ells Street.
Clr: 13law, Ohio: Chamber of Commerce.
Du;llas. Tex.: Cthamber of Commerce B~uiblling.
Detrocit, M~ich.: 801 F'ir~st NaltionalJ Bank Buibiling.
Houston, Texc.: Chamber of Commerce Buib~lin~.
Tlldiallnlpoli, Indr.: Chambller of Commerce B3uilding.
Jacksonville, ]Fla.: Chamber of Commnerce B~uildinlg.
Kansas City, Mo.: 1028 Baltimore Avenue.
Lo- Anigeles, Calif.: 3163 South Broadway.
Louli4\ville,~ K~y.: 408 70lderanl Buildingr.
All'llilbis, Tenn.: 2293 Ftrederal Buibrling.
M~inneap~lolis, Alina.: 2L13 Federlall Buibtling.
N~ew Orleans, La.: Room 225-A. Custonmllouse.
New York, N.Y.: 734 Customahouse.
Norforlkcl. Va.: 408lt East Plume Street.
Phliladlph ll~in. P~a.: 4122 Commercial Trust Buibrllinlg
P'ilrlsburgh Pa.: Chiamber of Commerce B3uildling.
Portlanld, Oregr.: 215 N'ew Post Office Buriblingr.
St. Louis, 1Mo.: 500l Olive Street.
San Francisco, Carlif.: 310 C`ustombol-use.
Seattle, W~ashi.: 809 Federa~ll Office Buibllinlg.
Approved Code No. 84. Supplement No. 2
SUIPPLEMIENTARY CODE O]F FAIR COMPETITION
HAN~D CHABIN HOIST~ MANUFACTURING
As Approved on January 30, 1934
APPROVING SUPPLEMENTARY CODE OF FAIR
HAND) CHAIN ]HOIST: IMANUFHAC TOURING
A Division of the Fabricated Metal Products 1Manufacturing and M~etal
Finishing and Metal Coating Industry
An application. having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recover~y Act, approved June 16i, 1933, and in accordance with. the
provisions of Section I of Article VI of (the! Basic Code for the
Fabr~icated M~etnl Prodlucts Manufalfcturing and M~etal Finishing
alnd Metal Coating Inldustr~y, approved November 2, 1933, for atp-
p~roval of a Supplementary Code of Fair Competition for the Hand
Chain Hoist Manufacturingr Industry; and hearings having been
dulyf held thereojn; and the annexed report on said Supplem~entary
odcontaininlg findings with. retspc~t thereto, having beenl made
and dir~ec~ted to the President:
NOWV, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnso~n, Acdmninistrator for Industrial Rtecovery,
pur~sonnt to aulthor~ityvse nm by Executive Orders of the
Preidet, ncldin Exc~utive Order No. G3-A, dated December
30, 19;33, and oth~erw~ise; do hereby incorporate by reference said
annexedl report and do find that saill Supplementary Code complies
mn all respects with the pertinlent provisions and will promote the
policy andl purposes of said TPitle of said Act; and do hereby order
36961 0----813-163-3--4 11 1
that said Su~lpplem~entary Code of 1Fair Comp~etition be and it. is
hereby apprvel~c\cl; provided', however, that th~e provisions of Article
V, Section 2, inl~mfo r' as th~eyr pllrescibe a waiting period between
~the filingf with the, Code Auth~ority (i.e., actual receccipt by the Colde
Antin~l.rity) andi thel effective dlate of revised pr'ice lists or revised
te-rms11 and condlitions of sale be andrl thley are hereb~y stayedc for a
period of sixty dla!- or pendingilc~ the comnpletion of a study nowm being
conduc(cted byS thle Nat~oionl R~ecovery Administraltion, and at the
end of suceh per~io~ sai~d prov\isions shall be~clcom c.tTee~tive unless IC,
by my7 furtlin-r Order, othrii s\i e determineri.
Huanc S. JonssonN
Admllil Istrator for I/ldustriatl Recover~y.
W. Ai. HPAnlnlrax,
Division, ,1, dndJ;!iraor.
Jun~ 1(,11 U0 JO 934.
The WhLite Holuse.
SIR: This is a report on the Supplementary Code of Fair Compe-
t~ition for the Hand Ch~ain Hoist Manufacturing Induty a division
of the Fabricated Metal ]Products Manufacturing and Mtal Finish-
ing and Metal Coating Industry, the hearing having been conducted
thereon in W~ashington, D.C., December 16, 1933, inl accordance with
the provisions of Title I of the National Industrial Recovery Act.
TThe Hand Chain Hoist Manufacturing Industry, being trully
representative~ of this division of the Fabricated Jletal Products
Manufacturing and M/etal Finishing and Metal Coating Industry,
has elected to avail itself of the option of submittinga Supple-
mentary Code of fair practice, as provided for in Scion. I of
Article VrI of the Basic Code, for the Fabrticatedl Metal Products
Manufacturing and M~etal Finishing and Mfetal Coating Industry
approved by you on the second day o~f November 1933.
RESII\EMA OF THE CODE
Article I states the purpose of the Supplementary Code.
Article II neeura:tely defines specific terms employed in the Supple-
Article III. This Industry is a division. of the Fabricated Metal
Products Manufacturing and Mletal Finishing and Metal Coating
Industry and the labor provisions of its Basic Code, as approved
N1ovember 2, 1933, are the labor provisions of this Supplem~entary
Article IV establishes a Supplementary Code Authority consisting
of the five (5) members of the Board of Trustees of the H~and Chain
Hoist Institute, Inc., or its successor and one member chosen from
the Industry by the vote of th~e memben:,rs thereof, and gives the
Administrator the authority to appoint one additional member with-
out vote and provides machinery for obtainling statistics and the
administration of this Code.
Article V sets forth the fair trade prnc~tic~es of this Supplementary
Code which has been especially designed to effect fair competition
in this division of the Industryv.
Article VI contains the mandatory provisions contained in Section
10 (b) of the Act and also pr~ovidles for the submission of proposed
amendlments to the Code.
Article VII provides against monopolies and monopolistic prac-
t ices, and recognizes that price increases be limited to actual addi-
tional increases in seller's costs.
Article VIII states the effective date of this Supplementary Code.
The Assisitant DeputyT Admnlristentoor in his final report to me on
said Suppolemrentary Code having founul as herein set forth andl
on the basis of all the prollcceedings in th~is mal~tter:1
I find that: (a) Said Su~pphonellntne Iy Co~oe is well dlesignedl to
p~ronwte the policies and purpo e,~~s of Title I o~f thet NaT~tional In-
dustrial ~Recovery'S Act, including remloval1 of obstructions to the fr~ee
flowrz of inters.-ta~te and fore'iignl ConunerII Ce~ which tendc to d~imlinisih the
amount thereof and will p~~rovide for the general we~lfaret by pro-
rooting r the organrizatio-n of industry for the pur11pose? of Ienoperative
action among the trade groupsl', by? indlucingc and maRintaining united
action of labor and malnagemenlt;t under adeqlluate gOvrc,'!nmental sanc-
tionns: and supe~rvisionll byt eliminat~ing unfair comprlettitive pra~~fCtres,
by ]prom"otingr the fullest possible utilization of ther pi""'_ asent prouc-
tive e.npoe"ity1 of industries, by avoidlinr ulnd-ue restric~tion of pro,-
duction (except as may be temporari1-l'l yT requ~iredl), by increa~singi th~e
consumptionio of industrial and ag~rricullturll'l proluc~ts th~rough. inl-
creaslling purchasing power, by reducringr andlr relievingr unemnploy-
mlenlt, by improving sl~ltandards of labor, alnd by otherwise rehanbilitat-
(b) Said Industry normnall~y employs nrot mlore thn ,50,000 em-
ployees and is not classified by me as a major industry.
(c) Th~e Supplemezntary~ Code as approved complies in all respects
with the pertinent p~rovisions of said Title of said A9ct, including
without limlitation Sub,-.eetion (a) of Setctio-n 3, Sub~section (a) of See-
tion 7, and Subsect~ion (b) of Section 10 thereof; and that. the appli-
cant association is an industrial association truly~ representative of
the aforesaid Industryr; and that said association imlposes no inequi-
table restrictions on admission to me~mbership! therein.
(d) The SupplementnryS Code is not designedt to and will not
permlit monopolies or monopolistic practices.
(e) The Supplelemntaryr Code is not designedl to and will not elim-
inate or oppress small enterprises and will not operate to discrimi-
natP ag i nst. them.
(f) Those engaged in other steps of the economic process have not
been deprived of thre right, to be heard prior to appr1oval of said
Fior these reasons, therefore, I: have approved this Sjupplementary
HUGHar S. JOH~NON,
JbNuAY 30, 1934.;
SUPPLEMPENTIARY CODE) OFi FiAIR CO1MPETITIION
HIA~ND CHlAINl HOIST MANUFACTURINGN G INDUSTRY
A Division of the Fabricated Metal Products Manufacturing and Metal
Finishing and Miletal Coating Industry
To effectuate the policy of Title I. of the National Industrial
Recovery Act, the following provisions are established as a Supple-
mlentary Code of Fair Comlpetition for The Hard ChainI HIoist
Mranuflct~uring Industry, pursuant to Article VI of the Basic Code
of. Fiair Comlpet~ition for the Fabricated Mretal Products M/anufa~ctur-
ing and M/letal Fiinishing and Mfetal Coating Industry, approved by
the Pr~esident of the Unite~d States on the second dayr of NPiovember
19~33, and upon approval by the President of the United States the
p'rovisions of this Supplementary Code shall be the Standard of
Fair Competition for and shall be binding upon every member
Thle terml The H~and Chain Hoist Mannufacturinga Industry ",
hereaft~er r~eferr~ed to as the Industry, means and includes the manlu-
facture or purchase of component parts for assembly and for sale,
of all types of hand chain hoists.
The term L" M~emb~er of the Indlustry ", includes, but without limi-
tation, any individuals, partnership, association, corporation, or other
form of enterprise engaged in the Industry, either as an. employer
or on his or its own behalf.
The terms President,", "Act ", and "'Administrator as used
herein shall mean respectively the Pre~sident, of the United States,
thne Niational Industrial Recovery Atlct, and the Administrator, of
Title I of said Act.
The term Basic Code as used herein, is dlefinedl to mean the
Basic Clode of Fair Competition for the Fabricalted M~etal Products
Mannufacturing and M~etal Fiinis'hing and Metal Coating Industry, as
approved~ by the President of the Unite~d States on the second day of
The termn Sup~plemnentary Code Atuthority as used hnerein means
the agency which shall supervise the admlinistr~ation of this Sup-
Th~e term "" Institute as used herein, is dlefinled to mean The H~and
Chain Hoist Institute, Inc. or its successor.r
Thle term Federantiojn as used herein, is defined to mean Thle
Fabricated IMetal Products Fedleration, or its successor.
AnRTCLE III-EM\P LOYMENT'I PRov'IsIONS
This Industry is a d~\ivision of the Fa'~bricate~d M1/etal Products
Mnu~ IIflc~tuI Iiring and Melitn! Finishningf and MeIt al Cln t inIg IndlustrIy and
the labor prov\isionsl of its Bas-ic Code as appr~ovedl by3 thle Presidenlt
of the ~United Sta~tes are the labor provisions of this Sup~plemnentary
AR TcIc LE~ IV-One(.\ S z.\rIusaN A nN Xh I SIsyn.vr`ION
SECTION, 1. The Suplplementary Code Authorityr is hlerebyr consti-
tunted th4e agency~'\ to ;Illnn~inister the p~rov~\isions of this Supplleme~lntaryy
Codle, and shall consist of Ilth five (5) memberlJII'S of the Bo1ar~d of
Trusl~zteesc of the In~stitu~te and one member chosen~1~ froml the3 Industrfly
by the ~vote of the members,\ l thereof. The A
I~nduxstry unless~ the Supplementur"y Codce Authority shall agree to
pa;Y such expeslelrj as a member~cl of the Suplemlcl~e n tary Codle Au-
thority. Thet Presidec~nt of the Institulte is thereby c~onsrtitulted thle
age~nt to collect and distribute all statistical retporlts o~f the Industry
as requriredl by the Supp~lementaru y Coalle Authority. With a view to
keeping the Presidlent of the Unite~d States inlformed as to the
observance or nmb~l~lserva~nnce of this Supplemenrltulry Cod~e, said agent
shall collect such -tat~istic~s as called~ for by the Presidecnt and/,or
the Administr~atorl and sendli them11 in. such formn as the Pr~Iesident
and/or the Administrator may requ'ir'e, to the Fedtrartio~n as the
agenrcy~ admllinis;telilrring id fBasic Code.
SEC. 2. The Presidenlt of the Institute, as such~l agn~lt, shall also,
from time to time, furnish t~o the Bas~ic Codelt Athoritu~ty,, desinad
in said Basic Code, .suchT -information~, as ma~y be~ required to be fur-c itl
nish~edl under thle telrms~ of said BIasic Code.
SEO. 3. All dlata filed in ac~cordalnce w~ith the p~ro~visrionls of this
Sfupp~lemelntury Code shllll be conlfhlenltial and shall not be rIevealedl,
excptl' in composite formn, to any3onle otherl than. an au~thorizedl gov-
SEC. 4. Any\ or a2 llll(l nforaionl furnished~ to thle Preside~nt of the
Institullte by any mem~lber of the Indurstr~y shall be sub~ject to chleckring
for purpose" of ver'ifying b an examllina~tiont of theC pertl'inentll books
an~d accounts andr r'e'ord o such membertI byr uny
Authority and the mlembecr of the Indu~stry whlose blooks and ne-
counts and records are to be examrinedl, r ay a person or persons
nomiatedby the Supp~1 lementaryp Cotle Aulthorlityno pp db
the dmiistato. Te cost ofsuch~ examIn'nationl sha~:ll b~e treated
as an expecnsie of admfiniristering thet Codel; prov,\ided~, hlowrevr, that
if upon" such examinatiic n anyr suchn informal~tionl shall bec Shown' 1 to
have beecn incorrect, in any material rcspcct, such costs shanll be pauid
by the Ilacinhelrr of the 1I1Insr hc un1e uhifrain
SI-:.. 5., To further cll'tvetuate thet pollicies of thle \c~t~ and folr tll
administer t ion of this Supplementutnry Code, the colnsl t itutd aurthor-
ities and1 methflodsb of governingllb the Ildulstryy shall be n~s follows:
a. Ther rSuppIrlementurlly Code~l Anlthorlity hall have\. generalj power
annl superv''\ision overli thec enlfor~cemntc l of thet prc\iovisios of thiis Sup,-
plementury Code and it is hereby designated as the agency for ad-
mninistering, supervising, and promoting the obser~vance. of the pr1ovi-
sions of this Supplementary C~ode, and1 shall have power to obtain
fromt all m~embers of the Industry such reasonable and pertinent
data as mI~ay be ne:e~ssary for the adminisl~Qttiratio of the provisions
of this Supp~leme~nntury Code. The request for reports from, members
of the Indu~s~try shall not be made in any mnannrer which. will implose
unlequln1 obligtions upon members of the Industry.
b. The Supplemeentary Code Aluthority shall have power to investi-
gate on its own. initiatives or on complaint, the operation of the Sup-
p~lementury Code and any allexerd violation of thie SupplemnentaryF
Code by any member of the Indulstry;; to make ~findings of fact and
to state its conclusions as to wh-ether or not there hlas been any vio-
Intion of ainy provrision of the Supplementary Cod~e, and except as
hereinafter provided, to takze suchn steps as it mnay decem necessary or
advisa~ble, within the pro~visions of the Supplementary Code, subject
to rules aInd regulations by thne Adminillstrator.
c. No nwmlnber of the Supplementary Code .Aulthority shall par-
ticipate, as a member of such Supp~lementaryy Codce Authiority, in. any
proc~eedcings in wh~lich he is interested as the comlallinant or :respond-
ent, or inl which he is in anly other manner directly interecste<1, and
inr the events of any such disqullalification, the remaining members of
sulch Supplementar~y Code Auth~ority shall certify such disqualifica-
tion, together with the reasons thlerefor and ShaI POll pomtly desigf-
nate a person to sit as a special member of such Supplemntaryy Code
Aulthor~ity for the purpose of such proceedings.
d. The Supplementary Code Authority may delegaate anyr of its
duties to such person or persons, committee, or commnrittees, as it may
select; provided, that it shall not delegate any of its duties to anly
person who is sub'tject to disqualificat~ion, as in paragraph "L c "" above
provided; and provided fu rather, that such delega t ion shall not relieve
thie- Supplementary Code Authority from anyT of its responsibilities
undler this Supplementary Code.
e. The Supplementary Code Authority m~ay, subject to the ap-
proval of thre Administrator, upon finding, by a three-fifths vote, that
t~he resp~ondent assenting members of thre Indiustry has violated this
Supplementary Code, assess all costs in connection with such investi-
gation anrd disposition of such complaint against said respo:ndlent
assenting n~m'embe of the Industry. If any- assenting member of the
Industry makes a formal complaint to the Sulpplemecntary Code
Authlori~ty which pr~oves, after investigation by the Suplplementary
Code Aut~hority and approval by the Adm~inistrator, to be without
foundation in fact, then the Supplementary Code Authority may
assess against thle assenting member of the Industr~y bringing such
formal complaint, all costs in connection with the investigation and
disposition of such comrplaint. All11 assessmlent~s to be paid into the
treasury of the Inlstitute as the agency of the Supplementar~y Code
f. Each member of the Inldustry subject to the jurisdiction of
this Supplement~ary Code shall p~ay to the Institurte as the agency of
the Supplementary Code Authority his or its proportion~ate share of
the amount necessary to payv the cost of assemnblingr analyzing, and
publication of such reports and data and of the mamltenance of thle
Supplem~entaryp Code Authority in connection with its activities
relative to the admliinistration of this Supplementary Ciode; said
proportionate, share to be based upon the volume of business and/or
such other factors as the Supplementary Code Authority may
g. A mreetingr of the Mlembers of. thre Industry may be called and
held at any time by order of th~e! SupplemlenltaryS Code Authority or
members of the Industry having the right to cast at least. 51% of
all votes wa7hich might be cast at such a meeting. At least five days'
.notice to each memlber of the Industry shall be giv~en.
h. Each member of the Indlustry who assents to and complies with
the provisions of this Supplemecntary Code, and who is not delin-
quent in the pay~men~t of any assessments made under the provisions
of this SuppltlemetntryS Code, shall be entitled to cost one vote, either
in person or by proxy, in w~ritinga, dully executed by such member of
the Industry, and filed with the Supplemlentary Code Authority
wit~hin ar reasonable- ti;me prior to tlhe t-ime set for theC meetings, at atll
meetings of theci members of thne I~ndustry.
SEc. 6. The Supplemlentar~y Codle Au~thority shall have thie follow-
ing further power~s and dluties:
a. To adopt bylaws and rules and regulations for its procedure and
for the administration and enforcement of the Supplementary Code.
b. To make recommendations to the Administrator for thec3 coor-
dina~tion of the administration of this Supplementary Code with
such other Codes as may be related to the IndustryT.
c. To cooperate with the Admin~istrator in regullating the use of
any N.R.A. insignia solely by those members of the .Industry wspho
have~ assented to, anld are complying with, this Supplementary
dl. To recommend to the Admlinistrator further fair trade practice
provisions to goverC'ln mlembler's of the Indlustr~y in their relations with
each other or with other industries and to recommlend to the Admin-
ist raltor measures for industrial planning, including stanbilizationI of
e. To rec~omlmendl from timelt to timne standards of shipment terms.
f. T~o recomnmendt fr~oml time to time standards for gular~anty on
Sec. 7. N'othinig contained~ in this Supplementaryr~ Code shall con-
stitute the mIiemibers of the Suppleme~lntury Code Authority partners
for any purrpose; nor shlall any m~emb~er of the Suipplrementay Code
Authority be? liable inl anyJ manner to anlyonlefor any act of any
o~ther inembelrr officers, agent, or emlploee of the Suipplemientary Code
Authoirrity. Nor' shall any memiber of the Supplemen~tary Code Au-
th-ority, exercising reasolnble dliligenc~e in the conduct of hris duties
hereunder1~~'1, be li~able to anyone for anyi actioni or omiission to act under
this Supplemntarlu'y Cod~e, except 'for his willful miisfeasance or
Str:(. 8. If the Atlhninist rator! shall determlince that any act ion of
the Supp,,1 lr~ l netar~y C~ode Anlthoarity o~;I1r any ngon thereof is unfair
o~r unjus~t or Iconitrar1y to thle public initerest. thle Admlinistrator may
IFc'l"i r~ that 5such1 ne'tioni h~e suspendedlt l for a pe~iriod of not to exceed
thirty (;;0) Jayis to affrdl, anI oprtun)it~lliy forl investigation of such
action and further consideration by such Supp~lementary Code Au-
tho-rity or agepncy. Ipending~ final net~ion, which shall be taken only
upon anppr'oval bly thneAdministrator.
ARTICLE V--UNFAIR TRADE PRACTICES
For all purposes of thle Supplementary Code, any member of the
Inldustry' who shall, directly or indlirectly, through any officer, em~-
ployee, agent, or representatives. vonlate t~he following~ provisions
of this Article, shall be deremed guilty of unfair trade praclctic and a
violation of this Sup~plementar~y Code.
S~EC.TION 1. Each member of the Industry shall use an adequate cost
accounting system which shall conform to the cost accounting sySte~m
recommended byr the Supplemenltury Code Aulthor~ity and approved
by the Admninistrato- r as here~inafter provided. The Supplementarly
Code A~uthority shall reco~nnlend for use in thne Indus~tryS a uniform
and adequate cost accounting sysi~tem which shall be adaptable to the
cost, accounting procedure and to thre business of the Industry. Such
plan shall specify thre factors which shall be included in de~termining~~r
the costs of each member of the Industry. Upon approval by the
Administrator of such a system of cost accounting for the Industry,
complete advice concerning it shall be distributed b~y the Supplementa-
aryy Code Authority to all members of the Industry. TZhereafter
each member of the Industry shall file with the agent dlesignalted~
under Article I[V, Section 1, of this supplementary Code his costs
for typical items of the products of the Indus~try offered for sale by
himn. TPhereafter no member of the Industry shall initiate a selling
price below his own cost, or sell the product of the Industry at suchI
piT~~rice or upon such terms or conditions of sale as will result in the pur-
cae's paying for such product less than the cost of that member
of the I[ndustry who has filled the lowest cost; provided, however,
that any member of the Industry may sell below his own. costs to
meet existing compe~titionz, when such prices have been filed in ac-
colrdance with Section 2' of this Art~icle; and provided, further, that
the Supplementary Code Authority may approve, subject to dis-
approval by thet ~A~dministrator, the sale of surplus stocks below such
costs where necessary to relieve financial emergencies. A detailed
record of such surplus stocks shall be filed with. and checked by such
impartial agency as the Supple~mentary Code Authority may desig-
nate at the timne of application for such approval.
SEc'. 2. EachI mlem7er' of the I~ndustry shall publish and file with
the Suipplementary Code Authority -within ten days after the effee-
tive date of the Supplemlentar~y Code, price lists individually pre-
pared by him of all p~roluc~ts offered for sale or sold by him and all
terms and~ conditions of sale relating thereto. Such price lists shall.
state for each gr~ade and kind of each product sold or offered for
sale, one price with ap~propr~iate discounts therefrom~, if any allowed,
for sales to classified types of pulrchlasers. Such price lists and terms
and conditions of sale so filedl with the Supplemnentalry Code At5u-
thority shall be open to inspection at all reasonable times by anly
interested par~ty. Revised price lists or revised term~s and conditions
of sale, if made, shall be filed Prom time to time- th~ereafter with the
Supplementary Cod-e Authority by any Memiiber of the Industry;
provided, however, that such revisions shall be filed with the Supple-
mentary Code Authority te~n days inl advance of tht~e effective date
thereof; and, provided further, that any other member of the In-
dustry mlay file revisions of his price lists or terms and conditions of
sale to meet the revisions first filed w~phich may become effective on
the date when the revised price lists or revised terms and condi-
tions of sale first filed shatll become effective. At the time of filing
price lists or discount sheets, in accordance with this paragraph,
each. Member of thne I~ndustry 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 t~he Supplemen-
tarr Code Authority may prescribed
SEc. 3. No member of the Induustry shall sell or offer for sale any3
product of the Industry at prices other than the price noted inl
Itts price lists, or terms and conditions of sale other than the terms
and conditions of sale previously filed by such member with
the Supplemlentary Code Authority in accordance. with the provisions;
of Section 2 of this Ahrticle and in effect at the time of suchr sale.
SEc. 4. The following paragraphs describe and shall constitute
unfair methods of competition:
a. (1) To publish advertissing (whr~ether printed, radio, display, or-
of any nature) which is misleading or inaccurate inl any material
paricuarno shll nymember in anly way misrepresent any goods
(arincludi ng bu without limitation, its use, trademlark, grade, quality,
quantity, origin, size, substance, character, nature, ~jf~inish material,
content, or pr1eparation) or credit terms, values, policies, services, or
the nature or form, of the business conducted.
(2)r Ton ma.k disparagn ing statements respecting the business meth-
ods, practices, or products of another member of the Industry.
b. To knowringly withh2old from or insert in any qulotation or in-
voice any statement that makes it inaccurate in any material par-
c. TIo brand or pack any g oods in any manner which is intended
to or does dcT~eive or mislead purchasers with respect to the brand,
grade, quality, quantity, origirn, size, substance, charac~ter, nature,
finish. ma~ter~ial, conitent, or preparation of such goods.
dl. To publish or circulate unjustified or ulnwarr~anted threats of
legal proceedings which tend to or have the effect of harrassing co-
pet it ors or :in t imnida t ing their cu stom~ers. Falilure to prosecute in due
course shall b~e evidence that any such threat is unwarranted or un-
e. To allowFP or mlake. paymlenlt or allowance of a. rebaf~e, refund,
commission, credit, uinearned dliscount, excessi allowance, or allowance
for customer a dv \ert is~ingl, Catalogues, or illegritimate premiums,
whether in the form of mioniey or otherwise. nior shall a member of
the Indu~tlstr~y secretly otfTer or extend~ to any culstomner any special
service, or privilege noct extended to all customers of the same class,
f-or t~he pur11pose of inlflulenlcing~ a sale.
f. To s~hip goodsc on consigrlnment xcerpt uinder circumstances to be
decfinedc by the SuppIlllenwntar Code Authority, subject to th ap-
a See paralgruphr 2 of order aplprovIng this Code.
proval of the Administrator, where peculiar circumstances of the
Idustry require the p~ac~tice.
g. No emrber of the Industry shall attempt to induce a br~each .of
an existing contract bet~weenJ a complet~itor and his emplloyee? (other
tha~n1 employment conitracts), or customers or soulrce of supply y; nor
shall any m~lembe interfere with or objstrluct the perforal~nlce of suchn
contractuanl duties or services.
h. To offer~ or eten~~ld a guarantee against deicclinec or advance in the
selling price of products.
i. To agree to Jiliq'uidte, purchanse, or accept sh~ipmrent of a comu-
petitor's product from, a customerl in or~der to sell mt~llembe's own
j. To authorize the rturn of product for a credit, where known to
be obsolete, or where satles record of p~rtecdingr year indicates lack of
k. To post-date! an invoice.
I. To extend protection against; price advanced? or decline of prod-
ucts through the signing of requirement contracts.
m. TIo make an allowance for all or anly portion of transporta-
tion, costs, except where transportation charges are figured as a part
of the original costs and are included in the selling price.
n1. To enter into any agreemlelt, to assume responsibility for conse-
quential lamagres and other items of expense which normally cannot
be anticipated in or~iginal costs or selling prices.
S~tc. 5. E-2lri~ort Trade.-No provision of this supplementary Code
relating to prices or terms of selling, shipping, or marketing, shall
apply to export trade or sales or shipments for export trade. Un-
less and to the extent that the Supplementary Code Authority shall
othrwie dtemin, te aleof product by any member of
the! Industry for direct shipment to AaktePiipns aai
or Puerto Rico or other insular possessions of the United States
of Amleric~a shall not be deemed export trade.
ARTCLE TjI nfODIFICATION
SEcTION 1. This Supl,]emzentary Code and all the pr~ovisions
thereof are expressly made subject to the right of thne President, in
accor~dance with the provisions of sub-section (b) of Section 10 of the
Act, from time to time to c~nc~el or modify any order, approval,
license, rule, or regulation issuedl under the soid~ Act.
SEc. 2. By p~resentingr this Supplementary Code the members of
the IndustryS do not thereby consent to any mnodifien:tion thereof, and
they reserve thne right to object to any such modific~ationls without
being given. an opportunity to be heard.
SEC. 3.' This Supplementary Code, except as to provisions required
bcy the Act, may be modified on thne basis of experience or changes
in c~ir~cumstannces, such modlificantio~n to be based upon uppi~lication to
the Adlministrlator and such notice and hearing as he shall specify;
and to become effective on approval~by the Admlili~fInistrao.
ARTICLE VII--GENERAL PRI:\IisIONS
SECTION 1. No p~rovision of this Supplementary Code shall be
applied so as to permit monopolies or monopolistic practices, or to
chimmate, oppress, or disc~runinate alg~inlSt small enterprises.
SEC. 2. Whereas the policy of the ~Act to increase real purchasing
power will be made more diffiult of consummation if prices of goods
and services .increase as rapidlly as ~wages, it is recognized that price
increases except suchl as may be reqyuiredl to meet individual cost
should be delayed, but when made such increases should, so far as
possible, be limiitedl to actual additional increases in the seller's
SIEc. 3. This Supplemenmtary Code shall not affect patent rights.
ARTIICLE VIII DURATION OF SUPPLEM\ENTARYP CODE
This Supplementaryltll Codte shall btc~omie effective at 12:01 a.m.
o'clock on thne tenlthl alny after it is approved bly the President and
shall continue in effect, until June 16, 1935, or the earliest date
prior thereto on which the President shall, by proclamation, or
the Congress shanll, by joint resolution, declare that the emergency
reco~gnizedl by Sectio~n 1 of the National Indulstrial Recovery Act
Aplprov'ed Code NoI. 84-Supplemnent No. 2.
Registry No. 1107-02.
UNIVERSITY OF FLORIDA
3 1262 08854 3557