Code of fair competition for the marine auxiliary machinery industry as approved on January 30, 1934


Material Information

Code of fair competition for the marine auxiliary machinery industry as approved on January 30, 1934
Portion of title:
Marine auxiliary machinery industry
Physical Description:
p. 625-634 : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Marine machinery industry -- Law and legislation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1340-01."
General Note:
"Approved Code No. 242."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004942823
oclc - 655240497
System ID:

Full Text


U.S. IE. "OSt TC ro

For sale by the Superintendent of Documents, Washington, D.O. - Price 5 cents

Approved Code No. 242

Registry No. 1340--1








This publication is for sale by the Sulswrinteuendet of Documents, Governm~ent
Prinlting Office. Was~hingtonl, D.)C., andl by! district oftices of the Bureau of
F~oreign1 and T hamelstic Commlerce.
Atilantu, Ga.: 504 Post Ojfic~e Buildling.
Birmingham, Ala. : 257 .Federal B~uilding.
Boston, Mass.: 1801 Customhouse.
Buff~alo, N.Y.: Chamber of Commerce Bu~ildling.
Charleston, S.C.: Cha;mberr of Commerce Building.
Ch'lirgo, Ill.: Suite 1706, 201 Northt WC7ells Street.
('leverlandl, Ohlio: Chamber of Commerce.
Darllas, Tex~.: ('hn minor~l of Commerce Buillinrr.
D~etroit, nlilic.: 801 Ftirst National Bak :Bulibling..
Il~(l..usion. T .: Chamnnber of Commerce Buildting.
Indli~llunpo"lis,, Incl.: Chamber of Commerce Building.
Ja:~cklsonv-ille, Fla.: (Chamberlt~l of ~TllCommr' e Buliblinlg.
Ka~nsans City. >lo.: 1028 En-ltimore Avenue.
L~os Anuch-s.~ Calif.: 1163 Southt Br~oadwnyl.
Lou~isville, KyS.: 40s, F~ederal Bu~ildlig.
.11s-mirlisi~ Tenu.: 229 Fedecra~l Building.

Newr Orl'l nsI. TiLa.: Rioom 225-, Customhouse.
New~ York, N.Y.: 734 Customhouse.
No~rfolk. Va.: -lori I:,lt Plume Street.
Phlibuh-~~lphin.~ Pa.: 4122 Commercial Trust Builingr.
P'ittsburds~l. Pal.: Chamber of Conuneree'l~ Bulilding.

St. L~ouis, JIo.:;(: 500 Oive Street.
San Firanciscro, Cailif. : 3~10 Customnbouse.

Approved Code No. 242



As Approved on January 30, 1934




An application. having been duly made pursuant to and in full
compliance with the provisions of Title I of the N\ational Industrial
1Recoveryr Aict, approved June 16, 1933, for approval of a Code
of Fair Competition for the lMarine Auxiliary Ma[;chlinryr 1 Industry,
and hearings having been duly held thereon and the annlrexed report
on said Code, containing finldings with respect thereto, having been
made and directed to the Presidnt:
NOW, THEREFORE, on behalf of thie Presidetnt of thle U~nited
States, I, Hugh S. Johnson, Administrator for Induslt~ia~l Recovery,
pursuant to authority vested in me by Executive Ordersl of the Pr~esi-
dent, including Executive Order No. 6.M3--A, datedl December 30,
193, ad oherise doherbyincorp~orate by reference said annexedl
report and dotews fido tha said Code complies in all respects with thie
pertinent provisions and will promote the policy and purposes of said
Title of said ~Act; and do hereby order that said Code of Fair
Comlpetition be and it is hereby approved.
Hunc S. JoHNSON,

ALpproval recommended : AmnsrtrfrIdsra eoey ruMUIR,

January 30, 1934.
36706 *-31 3-156----34 (025)

The Wh71ite HoUISe.
Smn: Thiis is a r~epor~t on the Code of Fair Com~prtition for ther
Manrinp Auxl~iliarly M~ac'hineryJ Ind~ustlry of thle Unritrll States, conr-
duc~tedr in- Wash~lington. on th-e 27th. of Kcovemrlberr 193:1:. in eraac
w~ith! the p~rovisio-ns of the Naitio-na~l Industr~ial HR(,\cvry Acrt.

Mux~?insumr l houlrls for emlployee~s arec es~tablishled as follows: All em-
playeest', excep~lt Csxcutive, admlinistraWti\ ve, upon~r\.~ ,ury. and1 teChnient';
employees who, ar~e panid at t~he rate of $3100o mr erwek n
travel ing salesmen and service emrlployees--40--1 hours1 i)"r week. or 8
hours inl any onelt 24-ho(ur pter~iodK. WatlCllltchme andl~ firemenl~--@b hours
per weetk. These max~linIumll hour p~rovisions do not apply to any
enu-~'"'rgency condition which cannot bet askuae'lllfey nwtl' by' hillcrm adi-
tional temlploy!ee~ I but in all suchi casre at leat ~one andlc onle half his
regullar rate: shall. be paid to e~nch emlplolyee for all timle~ wor~k onl
Surnllalandl legal1 holida~ysc, or h~eyondl the regurlarn l 8 hours per day
or 40 hoicurs.- per wveek :ninXI11umn1 aS stipurla~ted abovec.
Miimumllf wages j~for emlplo~yees aret estab~li41hed as fo~llow\s: A~ll eml-
ployees, except learn~lers, engage~td in produ~c~tionl and~` in. Ilabor oper-
tions dlirectly .ilc~iletcl ther~er--tcA ctnts per hour. Lcar~ners~, otherr
than l tllc rent ive~--80'T. of such uslinlimumll hourlllyS ageIr(, the numb7Cer
oft leaiirners of aniy cemp~loyer no~t to xceedr~ jVi. of the total number of
employI)VCee enveredit'( b such'l Iinininannl hourly3 wage.~lr~ All oth~er e-
ployw-,- exceptl' (nt-e 91ays and gir~l. and the, n hl eeringl l~ll~ e~npncity

week~t. Office boys and grirl--SORSl of such1 Iininimumrl wee~kly wage
flth ninlllhler of sullch office boy.-' and~ gichl of any employed~.(' not. to exceed
5'; otf thec total numbe~lr'l of CIII)~l. empinver l.c'- envre suchn Inlinimrunl~
Tll \ WilC';gef.I Th~ioh tedlliplCloye**- Hlam be pstel less tha~n thet
estabil siet 111111111111111 ItalfllJ' 1\1Clge IWh0('11
of Labocr.
TIII ll enllllc]f tf Ul 8 1)1 j )PEG .11111doI _16 Velil'S Of .g~l* tll)( RIllulleP
1111( Pl' 18 V~:ilfw OF ;IlgP( St 0 )Hit~lrti.lil'- hzllZtrd us inIll 0i tlfe (I' dIlfl'le-
OnsK6( ItohalthL iS prlohibitac'l.
T~he rightC of emllploy ee-' tof oI.;lirgaiz andC harga'ftin coillc'Ctive~ly

cempllotyee shall be reCquir~ed as :1 ('ondlitionl Of ("llnylf(lf oyet t jo)in
SIlly (, It l)Of~;C Orly:1IIrfll O~ 118 011 ti (XI-ly
ilt~ tlIrllo l or; ll E(ttIN oM ICi [111.4 Tl (Iif 'I ll*. Ia

'lT i to fll~N \ilit* A 11.1 II] V M 310iII~l'Y 1 11114f\ II(3 !I li-; ;Iirllu nll (1
]IIIl cl~C1 thil 'le e .y p l(lelle*Irip, tlt 10 lvl.ll'f Ce ( ,1 I.4 1-I l1<'"- i (1I( fI f1( '
( gPl~''-icl rl, I 0 il lllli :1 i01114:1 -lic r )( lil tl T r I t f:lil10 rtill ..100.i( I~ I


in 1929 to $1.,000,00)0 in 1932 and. 1933, a decline of fl%~ from the
1929-1930 peak; and eniplloymentn declining from 1,200 in 1929 to 500
in June 1933, a dtlencrs of 58%. The avecrage hours ac~tualliy wTorkled
per wTeekr derclinedl fr~oml 49.5 in 1929 to 45.5 in. July 1933, a decrease~i
of 8.~1. It is estimlatedl that more than half the employees werel~
w-orkling 35 hours or less during the wFeekr of October 21~, 1933. T'he
average w~eek~ly ear~nings for June 1933, were $19.24 andc for O!
1933~ they were $99.s8, repr~lesenting an increase of approxcimtlyllcl

It is believed that the prov-isio.ns in thijs Code permit adequate
conltro(l and at the sanelt time insure development~ll and oundl

Thle Ass~istant Deputy Adminisjtrator in his final report to mne on
said Codce having found as herein set forth and~ on the bu ~is of all
the proceedings in this matter:
I find that:
(a) Said Code is well le~signled to promoted' thie policies andl purL-
poses of Title I olf the Nationlal Industrial Reco-very3 Act, inludlr~ingS
rIemloval of obstructions to the fr~ee flow of inters~tate! and forleign1
commerce which tendt to diminish the amount thereof and will pro-
vide for the general w~elfar~e by promoting the organization of in-
dustryr for the purpose of cooperative action among l~the trade group,ll)i
byT inducing and maintaining unitedl action of labor and malnagementll~l
unlder ade~tqunte governe ntalllcl sanctions and uperv'\ision, byr elimlinalt-
myg unfair comlpetitve practices, by promoting thle fullest possible
utilization of the present productive capacity of ind-ustries, by
avoiding undue restriction of production (except as may boe temn-
po~rarily requlired),. by inr':crasing the consumption of industrial andl
agricultural products through increasing purchasing power, byr re-
ducing and relieving unemployment, by improving standardss of
labor, and by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c) The Code as app~~\rove complies in all respects w~iith the perti-
nent provisions of sa~id TIitle of said Act, including without limita-
tion Subsection (a) of. Section 3, Subsection (a) of Section 7, and
Subsec.tionl (b) of Section 10 thereof; and that the applicant associa-
tion is an. industrial association truly re~presienltative of the aforesaid
.industry~13; andi that said ~asso~intion imposes no inequitable restric-
tions on admission to membership therein.
(d) T'he Code is not des~ignedl to and will not permit monopolies
or monopolistic practices.
(e) The Code is not lesigne~d to and will not eliminate or oppress
small enterprises and will not operate to discriminatlue against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
For these reasons, therefore, I have approved~ this Code.
HU;GI S. JoHNson,
JAUA~RcY 30, 1~934. A dm~linistratfor.




To effectuate the pollricies of Tlitle I: of thie Nai~tio~nal Indus~tr~ial
R~corVe~r~y Act, the fotllowing p"~\rovicios are sol~lluitte( a'; a Clode of
Fair C'ompetition for thl-e Marine ~AuxiliaryT Mach~inery Induslltry and
ulpon approval by the Pres~idtent shalll be the Standardl~ of 1Fair Comn-
p:e~tition for such I2ndustry andc shall be binding upo~cn every member

Thle termn '" Mar Iine Auxiliary\ Manchineryr~ Indtu-try as used1 hlerein7
incl-udes the numulllfacturle for" sale of ma1chlinery~3 of thre classes of
steering~ genrl. \ windc~la .es, wrp~~~ing and enrgo' ha~ndlingr manchinetryl
tow1ingr mlachinery, nlirplane and~ bolt; crane andc all o-ther inarline
de~ck m~ach~inery.;y
Thle te~rmI1' t"employte ?" as used.~ heretin includes anyonellc en~aged in
the' InduIIStry inl an-1y Capneityj3 rIeCeCiv'ing compenst~llio'n for his .services
ir~respcctivecI o.f thle nature or method of paymen~rt of such c~ompen-
sa Ition.
Thell ttwinl 'I~~O"employe as used herelcin incluldes anyone by whlom
anly sic~h employees, is comipten.-ated or emplloyed..
Th'le terml "memtber of the. Inltust!ry" .inlc'ludes anyI~on el~ngagd
inl the Indn-lltri- n-~ ;Ihm\cl th fined either as an emnploy~er or o~n hlir

fLeve~inl men~lr. rcspcct~ive~ly, the President of the! United States`, the
Na~tiona~l `Indus\tria~l Ritecovery Act. and the, Ashninistraol'C1'r f Title I
of said- Act.

videdt for in Ar~ticle VI of this Codle.
Th'le term1 "ecffective atlncl" as nsedt hlcrei means\I1 the tenith day-
alfter thle C'ode is approved by the Presidenlt.

enlcer onr thc- 1ls- of work for whlich h-e iis Iengngedll., heingr tralinedl to
1,('(.(iII c(llle t*( Cll) t (IIR (l110 OF i lur 11( 11' 0 11110n O[Tl ffittilll ~)llf W 10 shAll
noct be so (1;e3in--tie after1 n~inetyf (!)0) Iday-' III.11.eience.II

.\n- K. IEs III- -1. u siiW

i. SO (erllployee Pesylr~ c!Xi


week, traveling salesmecn and ou~tside. servi(c employees, -hlall be
p~ermitted to wor~k in excess of forty (40) hourll' in. any one wee(k, or
eigt 8) ous i ay ne twentyT-four'-hour1 p~er~iod.
2.glt8 No ii~ wa inean ofieremen. shall be permitted to work in exscl4-
of forty-eight (48) hours per week.
3. The mn ,ximnuml hours fixed in ~S~c-t lon. 1 of this Article shall
novt apply to any employee engaged in. epa"ir or break-dlown, or the
pro'tectio~n of life property, or any C.mergen'CyI.\ condition which
can not be adlequlately mect by hiring additional employeesi, provided -
thlat in all such cases at least one and clnc-half his regular rate shall
be ~paidl to each employee for all time worked on Suday1;3' and legal
hlolidarys, or beyond the regular eight (8) hour per day or fortay
(40) hour per week maximum stipula~tedc in Section 1 of this Article.
No employer shall knowFinglyr engage an emllployee~ for a tillln which
totaled with that already per~lforl~rmed with another employer or eml-
ployer~s exscee~ds the mnaximumlr permzitte~d herein.

1. The minimum w~agec that shall be pa;id by any empllloyer to
any emlploySe e engagedc in prod~c~tioni and in Inbor operations di-
recctl~y incident thereto shall be not less than 40t0 per hour; provided,
however, that learlners~ (other than apprentices a~s defined in. See-
tion 4 of this Article) may be pa id not less than 80%0 of such- mini-
mum wage, but the total numbller of learners emlployled by any
employer shall not exceeds 5% of the total number~~cl of niloee
employed by such employer covcI~red by the provision of this Secutionm
1, and. provided further that after three months of work in. this
Industry lernerslc~ shall be paid not less than the mlinlillnnnl wage~r~
herein provided.
2. ~A person whose earning capa,;c-ity is Illimited because of :1ge or
physical or mental handicap, may be paid at a rate not le-s; tha~n 80%0
of the minimum established by Sections 1 and 3 of this Article, if the
employer obtains fromll the state authority designated by the UT.S.
-Departm~lent of L~abor, a certificate, authorizing his emlploymen~lt at
such wages and for suchl hours as shall be stated in thni certificate.
1Each employer shall file with the Code A~uthority a list of all eb']
pejr~sons empllloyed by him, which numbelrl of persons shlall not exceed
5%~ of the total number of'emplo,~-yees employed by such emplloyer.
3. The minimum wage that shall be paid by an employer to alle em
playees other than those describedl in Sectionls 1 and2ArilIV
shall be at the rate of $15.00 per week whether calculaltedl on an
hiourly,' weekly, monthlflly, piecewoork, or any other basis in wac.rd-,lcl
ance with the usual custom of the employer; providedrc, however~r, that
office boys or girls may be paid at not less than 80% of such Ilnilniuml
wage rate, but the total numberl of such office boys or girls employed
by any employer shall not exceed 5%7o of the total number of em-
p'lo!ets employed by such employer cov\eret d by the provisions of
this se~ction.
4. Subject to the right of the Administrator upon review to dis-
u~Ipprove any such system or coullrse of training, nothing in this
Article I`V shall apply to or effect a bona fide apprentice employed


under a ~Sysiteml or coursl~e of trainingr and which when compnlleted will
make the app~rentiee a skilled mnechanic. Provided the total number
of azpprnc'tictes shall not eceedcl one appIrentice to each :five qualified
skilled. mechane~i~.s in the particular trade or occupantion for which
such apparent ilce is beings trained. TIhese alpprentice s shall be paid not
less than 80ct,~ of the minimum wagrbe per Article IV~, Section. 1, and
for a period not to exrceed two years from date of emnploymengrt.
15. Not later thaln ninety dlays after the~ etrective dalte of this Code
ealch employer shall report to the Administratorr through thre Codle
Authority th-e action taken bqy such empllloyer in adjusting wage
rates for all employees recceivingt more than the mlinimluml wagCs
providedt in1 SectioJns 1 andi 3 of this Article IV, except, executives,
administrative, supervIisory, and technical employees r~eceiingr $35.00
a week or more, and sa:ltlllelme.
6. This A'rticle establishes a mlinlimumll compensation, irrespective
of w-hether an empilolyee is actually compensa~~tc te on a timne rante, piece-
work, or other basis.

1. No person under sixteen years of ag~e shall be emnployed~ in thie
Industry, nor anyone under eightee~n years of agec at opera;tio~ns or
occupations hazardous in nature or detrimecntal to health. The
Code Aiuthority shall submit to the A~dmini~strator within ninety
days from dateB of approval of Code a list of slc~h operntions and
occupnatio~ns. In a~ny state an employer shall be tfeniedc~ to have comn-
plied with this proi'c\iion if he shall have on file a cer1tific~ate or1
perm'"it duly issued~ by the nolthor~lity in schll.l state clmlpowered~c to issuec
employment or agRe certificates or permits, showing that the employee!e
is of the requiredt l age.
2. Employees shall have the right to organized a~ndl ha~~lrg col-
lectively~ thlroug~h repl~-re.-.entative of their ownn choo-c~ing~ and~ shall
be frece fromll the inlterference, restraint, or eno~crcdonl of em loyellvvrs
of Labor, or their agents in the des~ignto f-hrpeettv
or in self-corganiz~t ion, or in o~tlwrl rconcerted~ activities for the, pur-
pose of collective bargi~aining, or othe!r mutual~l aid or pr1otec~tioln.
3. No employees andi no (1ne~ .seeking employment shall be required~
as a cowiilitio~n of employment to join any (companylll union, or to

of hris own chooin~~ig.
4, ~111. Empoyer shiall comply w\ithI the nmxI1inunnll hoursI' of Inbo~(r,
minimum rattes of paiy, andl othrer ('(lllitionI~.s of emp~loyment approved\'Pl
or preL~''i~-a-rbe by the PI~~roslet.
5. WTithlin each- state this Cloile shall noct unpelr.-eal~e anl Inwst orf
such tutefC imlpos~ing moIre astringent requirement on mp ovr reg
Iatingll the age of ensp~cl.((n.ves wages.~ hoursI~- of work,1~ or heallflt, fireC or

6. EInployerscr shall slI(t re.-In- ~~ify lnployee~l or dulties~ of occupnl~-
Itions per~lformIed by employeees~(' as1 to d~efeatlf the( purI1)pose of t~he Ac~t.
7. Elach employer~S~~ shall plost in c~onspicuouo~ s p~la~ce full c~opis of
this Code.


8. Labor agrrlerlemets nowr in force between membrlll('s of the In-
dustry andl their emlou~ryees shall be a affected only by3 such provisions
in this Codle as ma~y prscr~~ibe hligher~l wag~es and. shor~te hlours tha~n
are~prov~icded for in such agreements.~lt~,

To further effectuate the policies of the Act, a Code! Authority
i~s h-ereb~y can l~titutedi to adnuni terf~ this Code; all acts of said Code
Authority are sulbjec~t to the disapproval of the Admninistrator.
1. Organllization1 and constitution of Code Authority.
(ta) Thel CIod.e Autority shall cojnsiht of not molcre thanll Six. indCi-
v~iduals, five of wvhoml shall be elected from. among the mulllembes,
or office~r- of member~~ls of the Marllinet AnxSiliar'y Macinerl~l'1y Mann1-
flc~turersl Association, and one of w~hcln shall be elected fromr amongl
the nlonmi~ltembes or~officers of nonmember~s of said association, if
there be such nonmembers.
1E~ach mlemlber of thne Industry who has econ-formedl~l w\ithz the pro-
visionls for participation etabfllliched in Section 3 of this Article VI
shall have eq-ual vote in electing the members of th~e Code Authority.
'The A~dministrator may, at hnis disilcrtion, appoint not to exceed one
adldit~iolnl memllber without vote.
(b) T'he! Marine Auxiliary Maclhinery Mlanufactur~ers Assoc~iation
shall impose no inequitable restr~iction on menmbership and shlall sub-
mit to the~ Admninisitrator true copies of its articles of ascain
blw, reulatiolns, and any amendments when mladet ther~eto.
(1c) The ~Codle AuthorityT shall elect its officers a~nd e~ngale s uch.
ag-encies and assign to each such duties as it mazy deemn advisable
eubjet to I-re;vie by the Admllinis 'trato. T~he Codle Auzthlority sh~all
provide its own rules of procedure and shall hav~se full power and
author~ity for the administration of this Codefc to the exten~t per-
mlitted-' by the Act and providedc b;y thte Code.
2. ()Thle Codfe Authority mary, fromt time~c to timec, present to the
~Administrator recol nunendat.ions basedl on conditions in this Ind~ustry
as: thley may devetlop which will tendl to e~ffec~tuater the purposcjes of this
(b) ~The Code Authority shall conduct inves.~i~;tigatins as to the
fulnctioning~ and. obLserva\nce of any provisions of this Code~ at its
own instance or upon c~ompllainlt. by any per '-onl to the extenlt per''-
unlitt~ed by the Act.
(c) I~llember~s of thle Industry shall file with the Code Authority
at such time and in sulch mnalnner as maly be pr~e-cr1ibedl tatui:-tices
covering numlbert of empllloy\ees,~ wage rIates, employee earnings, hours
of work, and su~ch other dlata as may be re~quired for the admlin~istraH-
lio~n of this Codle.
3. Any3 members~ l of the Indu~1stryS shall be entitled to par~ticipate in
and share the benefits of the activities of: the Code Authority and
to patrtic~ipate in the se~lectionl of thne memllbers~ thereof byr assentingv
to and7 comlplying with the reqc~uir~emen tsi of the Code andc sustaining~
his reasona~ble .share of the expe~nse of admninistration. The sn~id
reasonable sh1ale of thle exp~enset of thle admllinistratlionl shall be deter-
mninedl by the Codet Aulthority, subject to review by the Admlinistra-


tor, on the basis of volumell of business and such other factors as
may be deemed~c equitable to be taken into consideration.
4. In addition to the information reqcuired to be submitted to the
Code Aulthor11ity, there shall be furnishled to Govcr~nment agencies
such statistical information as the A~dministrator mayT deem neces-
sary for the purlpoese recited in Section 3 (a) of the Act.

The following practices; are declared to be unfair methods ofi
competition and are prohibited:
1. Maliciously inldlcilling or attempting to induce the breach of
an existingv oral or w\\rittenl contract between a competitor andZ his
customer or source of supply, or interfering with. or obstruct ing
the performance of any such contractual duties or service.
2. The publishing or circulating of thr~eats or suits for infringe-
ment of patents, or trade marks, or of any other legal proceedlings
not in good~ faith, with the tendency or effe t of harIassing com-
p'et itorsl or intimidauting their customers.
3. Securing confidential informationn concerning the business of a
compelttito-rl by a. f.alse or misclead~ingr statement, or representation by
a false impersonation of one in. authority, by bribery, or by any
other unfalir method.
4. The secret pay-ment or allowance of r~ebates, refunds, commlis-
sions, c~redits, or unrearnred discounts, w\hethler in the form of mroney
or otherwise, or thle secret extension to certain purchaserrs of special
service, or privileges not extenldedl to all purchasers on like terms
and conditions.
5. Extending guaranltees other than those due to defective mlate-
rial or inferior wvorkmanlship, which guaran~tees in such. exrcepted
cases shall not cover a greater period than one year after date of

6.~ The ma~kingr, or causing, or know~ingly permitting to be madle,
or publlishing any false, materially inaccurate, or deceptive state-
ment by way of advertisement or otherwise, whleth~er concerning
thle grade~, quality, quantity, substances, characters,, n3ture, or~igin,,
size, finishr, or preparationn of any product of thne Industry, or the
credit tennsii, values, polic'ies, or ser~vices of any miemiber of the
Indllstry, or otherwise, having the te~ndenc-y or enpafcity to mlislead
or deCe'IIVe Custmer OIC" or prospe)';. ti e customers..
7. Direc~tly or indirec~tly drivingg or pcrmuittingrr to be given or offer-
ing to giv.e monellcy or anything l of vAlue to parents, employees, or
reprlc..senltatfivsc of cu tomellrl' or' In-usplc'tiveC customers, or to agents,
tii\e cmlrtomelcrs, wvithout knowledge~ of thleir employers or prilncipanls
aIs an indurc~cemen~lt to infrcluence their.i empllloyers~ or priincipals to puir-
chase or conitracrt to puI aefr omllr4',1 the makllers of su1ch g~ift or' offer,
or to infincnlce~~~1 uch employers or Ill'inc~ipls;l to) refrain frOml dealings
or conftractfi ng to deal with compel~ctit ors. This provoision shall not
be constiirued to Iprohib~it free~ andl~ genellc' 1 distribution of articles
rOmmlonly 11.se00 forl ndver(~lti.illy, exSc'(ptf SO forl a.' suIch1 ar'tiles are
actually usa~1 ll fo mannerda~l('ilj bribe'y as hlreilnabove d~efinedl.


8. Selling under contrnets which fail to sp~ecify the size and p~rice'
of the machine and equ~ipment and any freight allowances, with
terms of payment.
9. Nothing in this Code shall limit the effect of any adjuc ien t ion
by thle Colr~ts, or holdings by the Fedetra~l Trade7~ Conunission, on (omu-
plaint, finding, and border that any p).ractiCe or method is u~nf~air, pro-
viding that rsulch an adjurlicationl or holding is not incons~i tent w\ithi
anyr provisio-n of the Act or of this Code.

1. Surch of the provisions of this Code as are not I~reuired~~ to be
includedl therein by the! Act may, with the approval of the Pres~identt
be mod-ified2 or eliminated as changes in circumstances or explerience
may! indiente. It is contemlplated? that from time to time, supIple-
mentary provilsilons to this8 Code or additional Codes will be submiltted
for the approval of the President to p,reventt unfair compel~tition in
price and other unfair and destructive and compet~itiv-e prac~ticec l and~
to effect, the other purposes and policies of the Act.
'2. The Code Authority shall, from timne to time, manke suceh recorn11-
me~nla tions including am Iendme~n ti of the Code as in its juldgmelnt w7ill
aid the effective adminis~tratioi n of this Code or may1; be neCe'~ssary to
clffect the purposes of thle Act. Such amnendlments, when aprprov\ed by
thie Presidenlt, shanll b~comne part of this Code.
3. ~Violation of any provision of this Code is an unfair method of
competition and shall come11 within the sc~ope of the pena:lties pre-
scrib>ed by the lawT.
A RTIC.LE IX--S'Iransnes(.'

Exceptl' as otherwise provided in the Act all statistics, data, a~nd in-
formant ion fEiled in alc~cor~dance with the pr~ovisio-ns of Atrt~icle VTI shall1
be confidential, proviledl, however, that nothing herein shall pre-
v~ent the publicationl of general summaries of such staltistics, datal, andl
information. The statistics, dlat~a, and information of one employer
shall not be r~evealed to any other employer except thant for the ~ur'-
pose of facilitating the administration of the pr1ovisionsr of this Codel,
the Code Authority, by its duly authorized repre~sentativest and thne
Adlministrator, shall have access to any or all statistics, data, or in-
formation that may be fur~nishedl in, necoi-dane w\nith the provisions
of this Code.


Every m~emlber of the Indlustry shall use an alc~countingn system
which conforms to the principles of and is at least as (letaile~d and
complete as the uniform and stallndard method of accounting and the
uniformn and standard method of costing to be foirmulaited or ap-
proved by the Code Authority subject, to the! r~ight. of the ~Adminis-
trator upon review to appr~ove or disjappr~ove such mnethodl of ac-
counting and costing, with, suich variations therefroml as :may be
required by the individual conditions affecting anly m-ember of the
Industry and as may be approved by the Code Aulthor~ity subject
to the right of the Administrator uponl review to approve or dis-


634 3 1262 08853 8201

approve such method of ne~count~ing and costing, and made supple-
mentlry to said formulated or a3pproved methods of accounting and

(a) No member of the Industry shall sell or exchange anly prod-
uct of his mnllufac~ture at a price or upon terms or conditions that
will result in the customer paying for the! goods :received less than
the cost to the! seller dertermmned in necor~dance with the uniform
and standard method of costing herein above described in AQrticle
X with the followJing; exc~eptions:
1. Slow-moym~g and/or obsolete stock on hand, on June 16, 1933,
which must be sold at reduced prices to be moved. Members of the
Industry shall within thirty days after approval of Code make full
report of such stcc~k on hand to the Code Authority, and shall also
report all sales of this material within thirty days after date of sale.
2. Obsolete stock: not on hand June 16, 1933, subject to the approval
of the Code Authority.
(b) Provided, further, that the Code Authority, upon application
to it? may grant perm~ission to an~y employecr in the inldustry to sell
belowc his allowable cost in order to meet competitive prices filed in
neccordalncet with thle provisions of Article XI of this Code or to
meet rcomipetition on products of equivalent design, character, qual-
ity, or speerficention.
~No pr~ovisionl in this Code shall be inter~preted~ or applied in such
a manerus o () pomote mionop~olies, (b) permit or encourage
unfair competition,(celmntororesmllnepres(d
discriminliate against small enterprises.
I~f any mlemberC1 of thle Ilndustry is also a member of any other
industry, the pr~ovisions of this Code shall applyr to and affect only
that11 part of his business anld emlploymennt which is included in this
This Code and all the provisions thereof ar~e expressly made sub-
ject to thle right of the PreSidecnt, in alccordlance with thle prov'isions
of sulbsection (b) of Section 10 ofl the Act, from time to time to can-
cel or modify any ordertt, apprlova;l, licenses rule, or regulation issued
under TCitle~ I of said Act, and specifically, but without, limitation, to
the r~ighit of the P~resident to cancel or miodify his approval of this
Codle or any conditions imposedt~ by him uplon his approval thereof.
This Corle shall bcomne eiffctive on thle tenth day after its
al>pproval by the ]President.
Apptroved~ l.o(de No. 2-12.
Registry N'o. 13~-lc>01.