UNIV. OFC F L U.
Approved Code No. 347--Supplement No. 18
Registry No. 1399-84
NATIONAL RECOVERY ADMIINISTRATION
CODE OF FAIR COMPETITION
(A Division of the Miachinery and Allied Products Industry)
AS APPROVED ON JUNE II, 1934
GOVERNMENT PRINTING OFFICE
For sale by the Superintendent of D~ocuments, W~ashington, D.C. .
- Price cents
This publication is for sale by th(e Supecrintende~nt of D~ocumoents, G~overnment
Pr'intinlg Otifiel, Wmbnuli tor n D.C., and by district offiicers of the Bureanu of
Forecignl and Domzest~ic Commerce.
DISTRICT OFFICES OF THIE DEPARTMENT OF CO31thlRERC
Atlnufa, Ga.: 504 Post Office Building.
B~oston, Musu~.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Cllmmecrce Bu~ilding~.
( harllleston, S.C.: Chambert1 of Commerce Duilding.
Chica;gll, Ill.: Suite 17010, 201 Nulrth Wells Streett.
Cleveland, Ohio: Chamber of Commeree.
Dallas, Tex.: Chanhel~l~r of Commlerce B~uiildinL.
Detroit, Michl.: 801 First~ National Banki Bubllring.
Ho.uston, TIex.: c'humberl~1 of Commerce Buibling~.
Indiannapolis, Ind.: Chambuer of Commerce Btuikilng=.
Jackrsonville, Fila.: Chamber of Commerce Buildlingb.
Kansais City, >IIn.: 1028 Baltimore Avenzue.
Los Angelc <, Calif.: 1163 South B~roadwavi y.
Imuisville, KCy.: ;lUN Federal;l Iuliniing.
Alasphisli~ Tenn.: 229 Feilera;l J'uilding~.
MIiniinleni-=,~ M~inn.: 213 Federall UnliblingS.
New Orleans, La.,: Roomn 2'5-A, C'ustl~llumbos
New YIork. Nu.Y".: 1`?4 C~ustomnhouse.
Nuorfolk, Va.: 41.r; ]East Plumell Street.
Philadlph~l Iinl. Pa.: 4"~2 Commercial Trutli Bluilding.
Pill.-l11ur h1. Pa".: Chamllber of Com~mere B~uildling.
T'rrtlandi~. Ore;:~.:Z'r S1.1ne Post OllrikeC Buildling
St. Louli-i, 110.: '"Gl~ Olive Street.
Suln Franncisco, Ca;lif.: 310 Customhcouse.
Seattle, Wal'sh.: but1: F< deral Office Ba~;lldin~.
Approved Code No. 347--Supplement No. 18
SUPPLEMENTARY CODE OF FAIR CO1MPETITIION
REDUCTION~ MACHINERY INDUSTRY
As Approved on June 11, 1934
SUPPLEMTENTARY GODE OF ~FAIR COMPETITION FOR THE REDUCTION
A DsIoVISO OF THE MACHIINIERY AND FAILED PRODUCTS INDUSCT8RY
_An application having been duly made pursuant to anld in full
compliance with the provisions of Title I of the National Industrial
Recov-ery Act, approved June 16, 1933, for approval of a Supple-
m~ental Code of Fair Competition for thne Reduction Mlachinery Sub-
diviision of Manchinery and Aillied Products Industry, and hearings
having been duly held th-ereon and the annexed report on said Sup-
plemental Code, co~ntaining findings with respect t~hereto, having
;been made and directed to the President:
NOW, THIEREFORE, on behalf of the Presidetnt of the U~nited
States, I, Hugh S. Johnson, Administrator for Industrial R~cove\ry,
puruan toautorty estd i mebyExecutive Orders of the Presi-
dent, including Executive Order N.64-,dtdDcme 0
1933, and otherwise; do hereby incorporate by r~eferecn:ce said an-
nexed report and do find that said Supp'lemeintal Code complies in all
resp~ects wFtith the per~tinent, provisions and will promote the policy
and purposes of said Title of said Act; and do hereby order that said
Suljplemental Code of Fair Competition be and it is hereby approved
subject to the following conditions:
1. That the provisions of Acrtile VIII, Section (a) insofar as
they prscribe a usniting period between the filing with. the Code
Ahuth~ority (or such agency as may be designated in the Supplemental
Code) and the effectivPe date of price lists, as originally filed and/or
retvisedl price lists or` revised terms and conditions of sale, be and they
he~reby are stayed pjendingl my Cllfurther order.
2. That the provisions of the second paragraph of Article VIII,
Section (d) be and they hereby are stayredf p~ndingr the submission
of satisfactory~a evidence conlcerning~r distributionl of the products
of the Subivrl\ision to the Administrator.
3. That the provisions of Article IX, Sections 5 to 10 inclusive,
be and they thereby are stay~ed- for a period of ~fifteen (15) days;
665080-~-657-~99-34 Il l
then to become effective unilesi I, by my further ordter o~therwise
direct; within w-hich. time cause may be shown, if any th~~ere be,
w~hy the above provisions should not become effective; and that the
Temper aryll' Cod~e Aiuthority sendrlc nocticet of the stay' of thecste provi-
sions and of the oppor~tuniity to showc cause wvhy hyso o
bc~comelt ef~fc~tivec to all known employers of the Subdi~vision.thrs~~~f o
HUGilH S. JOHNsoN,
Adii t1Crat7f or for' Industrlll L.~itial Rcvey
Bi.w~romu W. MIURRAY,
WalSH IN GT'ON, ]D.C.,
Junze _11, 10 J.5.
REPORT TO T'HE PRESIDENT
The White H2ouse.
SmR: ThTis report relates to the Supplemtental Code of Fair Compet-
titionn for tlhe Reduction Machinery Subdivision of Machinery and
Allied Products Industry as proposed by the RleductiollRn Mchinery
A public hearing was held in Washington, D).C. on. December 21,
1933. T'he public hearing was conducted in accordance with the
provisions of Title I of thie National Industrial Recovery Act and
all persons were given full opportunity to be heard.
The Reduction Machinery Subdivision, being truly representative ve
of the manufacturers of the products defined in Airticle lII of thec Sup-
plemental Code, has elected to formulate and submit a Supplemental
Code of F'air Cmpetition. as provided in. the second paragraph of
Article I of the Code of Fair Competition for the Ma-~chinery and
Allied Products Industry, approved by you on the seventeenth day
o~f MaRrch, 1934.
The Subdivision includes the manufacture for sale of centrifugal
impact crushers, generally known. as hanunler-mills and ring mills;
dlisintegrators of the bar cage type-; gravity impact crushers, gener-
ally known ais Bradlford breakers and cleaners; rotary pot crushers;
pick and needle breakers; single and double roll crushers, for pri-
mary, secondary and ~fine reductions, and auxiliary equipment, in-
cludilng rotary drum type dry mixers (excluding concrete mixers,
and mlixers for cereals, seeds and nuts) and including spare, repair
and replacement parts thlereo~f, and includes all those engaged in
such manufacture for sale. Employers otherwise engaged in the
Farm Equipment Industry may manufacture for sale and sell re-
ductionl machinery for processing grains and fodder on the farm
under the provisions of the Code of the ]Farm Equipment Industry
and not under the pro-visions of this Code.
The annual sales of this Subdivision for the years 1928-1933 were
1928 __-_---_--__---- --- -- --- --- -- --- --- -- --- -- $ ass, ooo
1929-_ _,---------- ------ ___,,-__~ __--_ 8, 381, 000
1930------- ------ ------- -- ._, 3, 073, 0
1931__-_-_-,----------- -- ---- 1, 850, 0
1933__- __,,,_,,,____,, .. 89, 000
Annual sales in this Subdivision declined from $3,381,000 in 1929
to $789,000 in 1933, or 76.7 per cent. Invested capital declined 26.4
per cent, while production capacityr increased 1.6 per ce~nt from 1929
The trade~l ass.~ocintionll, in its Code application, has estimated thnat
this industry employed apprxc~imantely 511 persons in the year 1929.
A tabulation of ques~tionnaire returns covering about 48 per cent of
thhe entire industry, meansuredl by 1929 employment, shows that in
1929 about '79.6 per cent of the total number of employees were
factory worker1ls. On the baZsis of this 79.6 per c~ent, 104 office workers
have beenr se~gregatted from the 1929 figure, leaving40 fcty
Esti~attedl factory employment delclined' from 407 workjlers in 1929)
to a mlinimum of 153 in the third quarter of 1932, or GB.4 per cent.
rSince the~cn, employment incrleasedl to 207 f~c~tory w~or~kers as of
November,,c~ 1933, or 74.5 per cent.
Estimnatedi man-houlrs per w~eek dleclinedl from 20,035 in 1929! to a,
minimum of 5,750 in June 1933, or 72.1 per cent, andl incr~easedl
tll'.rec ftecr to 9,:370 in No\-emlber, 1933, or 63.0 per cent.
Man-hours, as of Nov-embelr, 1933, are based on a 35.1 hour w~eek
andi a force of! 267 wo~rkerts; consequentllylty until there~c is an increasens
in man-hnour Irequliremenllt'lf, little inlcreu esc in employmilent will be
casdby thle adoption of the. 40-hour weetk in this indu~stry.ih r
The minmu wge provisions for the Subdivisionswhc ar
operation~ under the Code of the Mauchlinetry and Allie~d Pirouc~lcts
Indlustry, are based on a flat minimum hourly rate of 32 cents per
hour for thle South and the! following~ city populationl dii fferen tials
for all oth-er sections of the United Sta~tes:
over 50i,000c population____-------- 40 cents per hour
10000cl' to 50,000 population----~------ 38 cents pezr hour
0l,llg. pop'~ulationll and undler_--,-,--- 36 cents per hour
In. addition to the mlinimum wmage r~ates shocwna above, thIe Codle
prov"id~s that women~ engagedt in substantially thle same wrrtlk as mern,
sha;llt receive the sulrne ra~te of pay as such mren employe3'ces; that thle
rinill-ninu wage~C for women. em~ployTees engbraged~ in p'lanlt operation
Shall be? not leus than 87.5 per cent of the~ p~roper' raltc for the Ilocality
in whiel.ch employdc- as spc~cified; andl that the minimnum in thle Sou~th
shall be not less~ than ::r cents per~ hour1~.
Th'1e e-tima~:ted neckl;ly\ payroll of $12.987 for this Sub-~livri~ionl in
1!)21 dec~lined: c to a2 minintlun of 80.ll78 in thle th-~t q~uarter of 1033:,
or' k:3 per cent, andl inlCreaSE ~ ,strEadlilyv therenc~fter to, $5002(1 in Novemll-
b~er, IDMS.:l or 170 per cent.
Avenu~le weekly eartnmgs lec~lined~ fromll 6:l0~.19 in 1990l to a mini-
mrultu of $1_3.15 in1 the first qtuar~terl of 1!1;33, or .10 per cen~t. ie
thlen, ove(l'!rage weeklyC]. learning S inCreaISedC .ctead~ily to kn~I.us inl ~NTo
n-mb r~,c 1'? 33::, or about 60 per' rent.
Thie lowecst mninimuiim h~ourly rate pubil 1uring~ tlhe thrree~ specvified
Yenr and month 2d~inimlum hourly rIat
1929, Junle ................... ........ ..- 35 to 40 cents
1!133, Junle------, --_---,,o_ ,__ to na cents
1933, Norvember ...................... .... as to dol contas
~Eatimated~ number of Factory toorkers receiving less than designated hourly rates
Proposed Approximate number re-
Proose io Suthor itis sngng rom-minimu Percent re- ceiving less
Proose fo Soth r ctie ragin frm-hourlymwage coiving less than mini-
(cets) than mini- mum regard-
(Cens) mum less of loca-
Over 50,000 population .................................. 40 13. 7 27
Over 10,000 to 50,000.......................................... 38 10. 4 21
10,000 and under ......... .......... .......... .......... 36 7. 1 14
Southern minim um...................................... 32 O 0
1Based on the distribution as of June, 1933, and~the sp~c~ifried per-
cenrtage~s of the number of wage earners receiving less than the
designated rates, the adoption of the propoused minimum rates will
cause a small increase in factory payrrolls. Thie estimautedl increase
as of June, 1933, will probably not exsceed~ one per cent, assuming
only upward adjustments in the brackets below the 40-cent minimum
and no ch~angre i nman-hour requirlement~s.
.nisms&~ or stPPLDJIENTA~L
Article I: states the purpose of the SuLpplemenltal Code.
Article II neccurately defines specific terms applicable to the Sutb-
division as usedl in this Supplemrenltal Code.
-Article III provides for the adoption of the employment provi-
sions of the National Industrial -Recovery Code of the Mach~liner~y
and Allied Products Industry, as approved~ by yoau, and as from time
to time amended.
Article IV provides for the adoption of Articles II, VI, VIII,
alnd IXy of the Nat~ional I~ndustrial Rvecovery Code of the M~Jachinery
and Allied Products Industry, in accordance with the conditions o
this Article goe~r~ning their adoption.
Article V provides for the establishment of a Code Au~thorityy
and defines its powe~rs and duties.
A-Srticle VI provides for an accounting system and methods of
cost findlingr an~d/or estimating.
Article VII provides that no products of the Subdlivision shall be
sold or excha~ng~ed below a realsonblelrr cost wnhen thne Code Author-
ity determines thcat an emerigency exists.
Article VIII provides for methodls of setting up, re-visingr and
filing price lists and discount sheets and terms of sale and payment.
Article IXZ sets forth trade practices for the Subdiv~ision.
Article X states that no provision of this Supplemental Code
relaztingf to pricing and markTeting, shnall apply to Export sales as
definedc by the term Expor~t in this Article.
iArticle XI provides that this Suppleme~~lnta Codelt and all the
provisions thereo~lf are expresslyr made subject to the r~iglt of the
President, in accordance wvith Subsectiion (b) of Se!-t lon 10 of the
Act, fr~om timne to time to cancel or modify any o~rdrcl, approval~R,
license, rule or regrdationI issued under said Acet. Provision is also
made that mlod~ificantions mray be submitted by the Code Authority
to th~e Administrator for approval.
Article XII. No provision of this Supplemental Code shall be
so applied as to permit monopolies, or monopolistic practices, or to
elim-inate, oppress, or discrimninate against small enterprises.
Article XIII staltes the! effective date of this Supplemuental Code.
The Asisisitant. Dep~uty Administrator in his final report to me on.
said Supplemental~LI Code having found as herein set forth and on the
basis of all the pl~roiee i ngs in th~is matter:
I find that:
(a) Said Supplemen~tal Code is we~ll designed to proomote the
policies andi purposes of Title I of the National Industrial Recovery
Act, including removal of cobstructionsi to the free flowT of interstate
and forecign1 comme~lrlCe' whPlich tend to dliminishl the amoc-unt thereof
and will provide for thie general welfare by promoting the organiza-
tion of industry for the purpose of cooperantive action among the
tradte groupsjl b~y induclling and malinitainingl unlited action of larbor
a~nd rnana1:gemnl.it under adequate governmental hanctions annd super-
vision, by eliminating unfair compettitive practices, by promoting the
fullest possible utilization of th~e present productive capacity ofin-
dus~trils, by avoiding undue restriction of production (except as may
be tem-porarily required), by increasing the consumption of indus-
trial and agricultural products through increasing purchasing power,
byv reducing and relieving unemployment, by improving standiard~s
of abo, nd y thecrw~ise~ rehabilitating industry.
(b)Sad ubivision normally employs not more than 50,000
employees; and is not classified by me as a major indu~stry.
(c) TIhe Supplelmr.ntal Code as approved complies in all respects
with the perltinen"t provisio-ns of said Title of said Act, including
w-ithiout limitation rSubsection (a) of Section 3, Subsection (a) of
Section. 7, and SubsLcction (b) of Section 10 thereof ; and that the
a~pplicant association is anl industrial association trulyT reprleselnta-
tl\e of the aforesaid Su~bdivision; and that said association imposs
no inequlitauble res~ltrictions on admission to membrltIshipl therein.
(d) The Sup~plemental Code is not des~igneld to andl will nort par1mit
mlono~polies or monopolistic p-rac~titces.
(e) The Suppliementar l Code is not designedl to and will not elimi-
nate or oppre.''i small enlterIrieses and will not ope~rate to discriminated
(f) Thowlc~~ (engaged~ in other steps of the eclcolnmic. prolcess have not
been <10plr~iva~l of ther right to be hear~d prior to aplprovall of aid~
Fo1r these reasonslli, therefore, I have~c approved this Supplementlal
Clode, providedc~ that cerrtain provisions rec.lating: to price publicationl
in A~rticle VIII, Section1 (az), trade prac~tices, and the sllicond parnf-
graphI1 of Article, VIII, rSecction (e) ar~e stayedl as started in. the
IEEIIran S. Jon son-s,
ALdm1 ;tinei strat r.i
SUPPLEMIENPTARY CODE OE FA'~ICR COIMPETITION6 FOR
THE REDUCTION MACHINERY INDUSTRY~
A DIVISION OF TH~ lIfACHINERY AND ALLED PRODUCTS INDUSTRYT
To effectuate the policy of Title I of the NCational Industrial
Recov~ery Atct, the following provisions are established as a Code of
Fair Competition. for the Reduction M~achinery Subdivision of the
Machinery and Allied Products Industry, and together with the
Code of F~air Competition for the Miachinery and Allied Product~s
Industry to which it is a Supplement shall be the standard of fair
competition for this Subdivision, and shall be binding on each
ARTICLES IT -DEFINITION
"LApplicant means the Reduction MadLchinery Association, a trade
organization, all members of which are engaged in the manufacture
for sale of the produc~ts-of the Reduction M/achinery Subdivision. of`
the, Machinery arnd Allied Produc~t~s Indslrtry, which organization is
truly representative of this Subdivision.
"' Industry means the MachineryT and Allied Products Industry,
as defined in its Code of Fair Competition as approved by- the Presi-
dent, ~March 17, 1_934, and as such definition may from time to time be
Subdivision means the Reduction Manchlineryl~ Subdivision of the
Machinery and Alliedl Products Industry as defined and set forth
in Paragraph (253) of Article II of the Code, of Fair Competition
for the Machinery and Allied Products Industry as follows:
Reduction Machiliery Subdivision? means the mzanufazcture for
sale of Centrifugal I~mpact Crushers, generally known as H~ammer-
mills anld Ring M1ills; Disintegrators of the bar cage type; Gravity
Impact Crushers, generally known as Bradford Breakiers and Clean-
ers; Rotary Pot Crushers; Pick and Needle Brc1Teaker; Singfle and
Double Roll Crushers, for Primary, Secondalr~y and Fine Reduc-
tions, and Auxiliary Equipment, including Rootary Drum Type Dry
Mlixerls (excludingf Concrete MPixers, and M~ixers for Cereals, seeds
and nuts) and including spare, repair, and replacement parts thereof,
and includes alli those engaged in such manufacture for sale.Em
players otherwise engaged in the Farm Equipment Industry may
manufacture for sale and sell Rteduction Malchinery for p~zroces','ing
grains and fodder on the farm under the provisions of the Code of
the Farm Eqjuipment Industry and not undercl the provisions of this
Code means the Code of Fair Comnpetition for the Mhachinery
and Allied Pr~oduc~ts Industry, as applr~ovedi by the President, and as
from time to time amended.
Person means a natural. person, a partnership, a corporation,
an association, a. trust, a trustee, a trustee in bankruptcy, a receiver,
or other entity.
"( Employer "means any person engaged in this Subdivision of the
Industry, either on. his own behalf or as an. employer of labor.
Employee means any one who is employed in the Subdivision.
by any such employer.
The Act means Title I of the Naltional Industrial Recovery
"L The 1Presidlent means the Preside3nt of the United State.
The Administrator"' means the Administr~ator for Indlust~rial
"' Basic Code Authority means the Code Authority for the Ma-
chinery and Allied Products Industry as constituted by the Code.
Code Authority means the Code Authority constituted for
this Subdivision as provided by the Code and by Ithis Suppilemental
Group Code Authority means the Code Authority for any
group or classification of products w-ith~in. this Scub~division, con-
stituted under the authority of Article V of this Supplemental Codle.
"' Publish ") means to make available to the public.
"Prilc~iples means all essential characteristics.
ARTICLE III-AnIorNo or EM PLO)Y MENT PROVISIONS OF CODE
The following Articles of the Code, viz: Article III, W7orkinga
Hours "; Article IV, Wages "; anid A5rticle V7, General ]Labor
Provisions", are hereby made a part of this Supplemnental Code
with the same effect as if they wRere written into this Supplem e~tai
PARTICLE IV-An1LorTroN or OTH-ER ]PRIO\ISIOrNS OF CODE
The following Articles of the Code, viz:Ari;ticle II, '"Defini-
tions Article VI, "Adcministrationr l ", to the etescnt that they shall
be, applcable to this Supplemental Code as such or as it mnay here-
a ft erI be a dm ini t eredl as an autonomous Code; Article VIII,' Jlodi-
fient7ionl s and Terminatioo n "; and Article IX~, ~~" ithdrawl~1 '" are
hereby madle a par1t of this Suppllemntatc l Codfe writh the same effect
as if theyg wer written into this S~upplenantal1 ;1 Codle, exscelt as herein
A ~lrTcLE. V--Onc;.\ N z.vTOriox D an~II AummIsr.\IrroX
To amntiirirteri and supervise, and- facilitate the performallf nce of
the pro'CVi~ision of this ,Eu 1plementart l Code, there is hecrebyJ estarb-
li-.hl-d a Cod~e Authority
(a) The Code Authorilty for this SubddiviSion dhall consIist of
(1) The1 Exe~rcutive Commuittee, of thle Redutction Mac~lhinclry- Awo-
clution, croll.-i-lillE Of DOt less thanl fulrr n10 DOLt Illcre thall wseven
(2) On~e ndllitional ucnwmbe~r to be elected1 in any12 fair mannerll~' w~ithl
th~e appirm a;l of thc Admirini s~trator, hry emlployers InI this Anhiv~lisionn l
nolt. Inlcinhers of the App~llicanlt, who aire coope~ratingy in thiis Supple-
mental Code, as described in Section (e) hereof, if so desired, by such
(3) The Adnxinist.rat~or maya), at his discretion appoint one addi-
tional member (without vote and without expense to the Sub-
(b) Each trade or industrial association directly ridrcl
participating in the selection or acltivities of the Code Autho idrity
shall (1) ipose no inequ~itaible restrictions on membership, and
(2) submit to the Admimlstrator true copies of its articles of asso-
ciationl, by-laws, relgu~lations, and any azlccme~ndmns whEen made there-
to, together wSithL such other information as to memnbership, organi-
zation, andl activities as the Admlinistrator may deem necessary to
effectuate the purposes of the Act.
(c) In order that the Code Authority shall at all times be truly
representative of the Industry and in other respc~ts comply with
the pro-isio~ns of th~e Act, the Admini~stratfor may~ provide such
hea~ringsi as he may deem proper; and thereafter if he shall find that
the C'ode Auithori ty is not truly~ representative or does not in other
respects comply wJt~h the provisions of the Act, m-cay require an. ap-
prop~riate modifientio~n in the method of selection of the Code Au-
thoritly, or any Grroup-Code Aultthor~ity.
Thle Code Anthority may adopt rules and regulant ions for its pro-
ce~dure anda employ such personnlel as it may deem ne(ce~ssary .
(d) Any emp~tloyer in this Su~divisio~n shall be eligible for mem-
berhipil in the Reductioln Mauchineryl Asso~ciation.
(e) A~ny em~ploye'r in this Subdivision shllzl be en~title~d to vote,
subject to the provisions of Section (a) hereof, at thie election of,
and share in the benefits of thle ac~tivities of thec Code Authority
and mayl panrt~icipate in anly endeav~nors of the Code Autho~rity,, in the
preparations of any r~evis~ions of, or additions or supplements to,
this Sulpplementaill Codie, by paying his prloper~ pro ra~ta share of the
reasonable cost of creat~i-ng and asnlliinicteringl( it, as determ~;ined by
thle Cod~e Aulthcr~ity, such. vote of employers in this Subd,~ivision to,
be determined subject to the p~rovisio~ns of Section (a) hereof, by a
66%Q~I vote of employers~ who are at that time c~~;lengag in mnanurfac-
turing such products;, and are at that time cooperiating in this Cod,fc
as above dsc~~r~ibedt in this Section (e) of this Article V.
(f) Employers in this Subdt~ivision having a common- interest-- and
como roles mybe grouped1..1 by Codelt Authority for admninis-
trative purpolses inito various GrouLp Subdcivisions, or product
In each Groul~p Subdiv~ision. or product classification, th~erec may be
a Group-Code Autho r~ity approved, or app~oinlted, by Code Authority.
(g) If forml; cormpininlt is made to Code Auth~orityv, that pro-
vi-i;lons of this Supplemental Code have been violatear by any em-
player:, the Code Authorit~y or prcoper1 Group-Codie Authlority may
enseac me-gtonorauit to b~e made(!. to the extent pejrmlittel!
by the Act, as ma~y be d~reew-0 n!cewarv.~y If such invest.i~rion io is
mad~e by Group-Codie Authori~t\, it shall report th~e r~e-ults of such:
investigation or audit to Cod~e Authority for action.
Unless; IBasic Code Authlority sharll tak~e jurisdictions, the Code
Au~thority fihall have the rIght to mvesctigate to the ex-tent per-
mitted by the Act, and analyze any tranllacPtion coming under the
scope of this Supplemenal~n Code, on which any unfair competition is
alleged, to show evidence of any violation of this Supplemental
Code, to report any such alleged violation to the proper authorities
ARTICLE V7I ACCOUNTING AND COSTING
The Code Ac5uthority shall cause to be formulated an accounting
system and mlethods of cost finding and/or estimating capable of use
by all employers of the Subdivision. After such system and methods
have been formulatedl, fulll details concerning~ them shall be made
available to all employers. Th'lereafter all empo~yers shall determine
and/or estimate costs in accordance w~ithi the principles of such
AwICian VII SELINr ]BELOW IZEASONAB3LE COSTC
(a) W;hen the Code Authority has reason to believe that an
emergency exists as to any product or products of the Subdivision,
and that the cause thereof is destructive price-cutting such as to
render ineffective or seriously endanger the purposes or thet main-
tenance of the provision of this supplemental Code, the Code
Authority may cause an investigation of costs and pricing to be
made by an impartial nrreney in order to determine the existence of
the Premegency and the eode Authority may cause to be dletermined
the lowest reasonable cost of the product or products of this Sulb-
division1, such determination to be subject to such notice andl hearing
as the Administrator may require. The Adlministrator may approve,
disapprove, or modify thne dletermlination. Thereafter, dulring the
period o~f emer~genlcy, no employer of the Sublivision shall sell or
offer to sell any products of the Subdivision for which the lowest
ren unable cosst has been determinedly at such~ pic" ess or upon uc
terms or co~nditions of sale that the buyer wil a esteeo
thlan the lowest reatsonable cost of such. pIrodulrcts.
WVhen it appears that conditions have changed, the Code~ Author-
ity, upon its ow~n initiative or upon the requelcst of any interecstedl
party, shall enu ~.-.e the determination to be rev-iewedc.
~!ICTLE VII[: -FrIcE LASTS
(a) If and wThen the Code Authority~it of this Subd~ivision deter-
mIne- that.ln in any bran:ich or group of the Sublivi ic n it ha~s been
the gerllrally recognizled p~ractice~ to se~ll at specifiedl produ:lct on, the
Unslis of net Iprice li-;ts, or price lists w~ithi cdiwounllt heets~f, ad~ fixedi
terms otf sale and pannon!t. each emplan-r': .-hall. wsithin~ ten (10,)
<1nivs notice of suich detlerminatlton, filfe wTith the i('0.10 Anithocrity a
not pr'icle list, or a price list andt tl-iwount..cht, as~ the on a~I may be,
andt discoun-ts. and frwrins of sale antl paymeni~'t, jfor -1Ih1 pec'ridedll
p"'"rodct, anld the Cod~e Aurthority shall illnnowllitely publish a~ndl ;nd
copies thecreof to all known employers'c who are coera)lll:tine( in thisr
sulr mlen~~llinI Code11 as deSCribedl~ in Scclinal (e) of Art~ic~le V he~reof.
Il~\ievivl r'icel li;tsi unl/or cli;counlrt sheets and 'ar~l terms~ of sale0
unlll payoun1~'1t for web'7 prlodluct maiy be filed~ f'~irun tinwr to tinwlC there-
after withE thie Code Authority by a.ny emlploer, but suich rev-ised
price lists und/or discount sheets and/or terms of sale and payment
shall be filed with the Cod~e Autthority ten (10) days in advanced~ of
the effective date. Copiies of such revised price lists und/or dis-
coc.unt sheets and/or terms~ of salTe and paymerlnt, for such. p:rod~uct,
with notice of the effectiv-e date.~ sp~ecified, shall be inunediatelily~l5 pubi-
lishred andlc sent to all know-n employers wvho are coorperatinlg in this
Suppldmental Code as dceib~;.ed in Sc-tio~n (e) of Ar1ticle V hereof,
any of wFhom may file, if he so d~esires~. to become ef~ec~tive upon the
date when the rev-isedl prlicel list andl/or dlisCcounlt ceet und/llor telrmls
of sale andc~ paymen~It first filed shall go into effect, reisio~ns of hris
prliceC lists anld/or dliscouint sheets andi/or terms of sale and3 payment
tatalliishing pr~ices or pr~ices and discounts not lower or terms of sale
and~ paymenltlt not more favorable thlan those established in the re-
visedl pr1ice lists and/or dliscount.!: sheets and/~or terms of sale and
payment first failed. Notlhingr in the foregi~tnill shal;l constitute a
limnita;tionr upon the right of any employer tor fie revised lists fixing~
his own p~ricecs, d~iscounlts and terms of sale and payments, which
prices andl' discournt; may be either more or less favorable than
those rcontained~- in any' other price list, to be effectivect as provided~~
in the first sentece~r of this pai:lraraph.
(b) If and wPhen the Code A~uthzority shall dettermnine thant in any
branchl or group of the Subdivision not now selling~ its product on
the basis of price lists, with or without discount sheets, with fixed2
terms of sale and payment, thle distribution or marketing co~nditionlls
in said branch or group are the same~ as, or similar to, the dlistribution
or marketing c~ondlition~s in a branch or group of the Subdivision
where the usei of price lists, with or without discount sheets, and
fixed terms of sale and ~payment, is well recognized, and thait a sys~-teml
of selling on nert price lists or price lists andri dli-coulnt' sheets with
fixed termlls of sale and pa!-me~t for such product sh`fo!!ld be put into
effect in sulchl branchl or grolu-,, thenl echc emlployerl of .much~ branch or
goup shall within ten (10) day~s after notice of such dettermninatltion,
file ithl the Code AuthocrIty net price lists or price li-ts and tli~-
ccounlt sheets, containing fixed terms of salle and paymelnt, showccing
his cul~lrret prices andl discounts and terms of sale andi payment, and
such price lists and/or discount sheets and/or terms of sale and paty-
mentl~f may be thereafter revised in the manner hereinabove provided;
providled-, however, that the Code Aurt'hor~ity shall make no deter-
mzination to place any product of the Subdivision (not now on a
pricet list basis) on a price list basis, as provided~: in this paragraphI'T
(b) of Art.cle VIIII, unless F66%g vote of employers wrho a~re at that
timne engaged~c in manufacturing such product andl are at that timre
cojoperating in this Codle as defsc~ribed in Sel:tion (e) of Artic~le V
here~of, have given their affirma7ztive consent to such dete~~rmination~l;
provid~ed~, however, that each employer who reports his sales, sh~all
have at least one vote.
Eachl emplloyer shall prepare and shall furnish the Code Aurthor,1ity
for distribut~ion with such numbller of copies of his pr~ic~e lists and/or
discount sheets and terms of sale and payment as Code Authority
(c) NTo employer shall sell directly or indir~ec~tly by any means
whatsoever, any product of the SubdivPision covered by provisions
of this Atrticle VII at a price or at discounts, or on terms of sale
and payment, different from those provided in his own current net
price lists, or price lists and discount sheets, provided that nothing
inz the above sha11ll prevent, an employer from adding to his ownn price
and/or price list and discount sheets by increasing his~ job price to
include unusual selling, elngmneermg, servicing financing, financial
risks, or other similar special charge's (except as provided in Article
VII above) provided, however, that mn the event of an employer~
quoting a higher price than the price published in his ow-n prie ls
anrd/or price list and discount sheets, to takie care of unusual selling,
engineering, servicing, financing, financial risks, or other similar
special charges, he shall not subsequenty quote a lower price on
said prospective sale than that price first quoted, except in accord-
ance with revised price lists dauly filed or unless he simulltaneously
eliminates part or all of the unusual engineering, servicinpr, financing,
financial risks or other similar special charges, for which a corre-
sponding reduction, only may be mande.
(d) No employer shall sell to, or through any broker, jobber, com-
mission account or sales agency ( this is ksnow~n in the trade ats "' pooled
buying ") wvho or which Is mn fact an agent for an organization of
industrial consumers, with the result that any industrial consumer
secures a discount, allowance or price other than the discount, allow-
ance or price provided for in the employer's own current net price
lists or price lists wvith discount sheets.
No employer shall evade any provision of t~his Clode by shelling to or
throughr any dealer, jobber, distributor or other selling agency which
shllnl fail to agree to resell in accordance with the provisions of
Articles VII, VIII and IXI.of this Supplemental Code.
(e) Wh~erev\er by the provisions of this Article VIII an employer
is or may be required to or permitted to file terms of sale and pay-
mnclt, such terms shanll mean usual or standard terms, land to cover
any special and/or unusual terms definite formulae for determining
sulch! Icpecid and/or unusual terms shall be filed.
(f) If and when Code Aluthorilty shall. de~termine that it is umdesir-
aIble to continue the filing of net price lists and/or price lists with
discoulnt sheets and/or fixed terms of sale and payment on any prod-
uct in respect of which. suICh filling has heretofore been requ~ired, such
filing shall cease and the provisions of this A~rticle shall nrt, apply to
.iuchl produc.11(t unlless and until Codfe Aut~hority shall again determine
that such filings be madeCf.
LltTICLE IX-TI:~ton PRAlCTICES
Each1 of the fotllwingr act and practices is deemedr~ to be inimical
to thle be~-f initerl.- .s of this Subdiv\i-4ion, and of thc public, and eac~h
Is, thecrefor-e, hereby1,S diclar~ed to beII, anll to conlst~iturte, anI unlfair
11101oc 101Of orallilpctitl100 viz:--
1. TheI~ secret offrcing~ or maklingr to anyl cusltomer, agen t~crt, fliluriar~y
OF` replc-Pilt:ItlV6e Of cOilctlalnl00, Of Rngy palient.l or nlk,0W:11100 of a
any .-3 orlia l servit; or pirivjIlege. for the( purposecc. Of infllli IleingL a sal(.
No empiloyerc of ther Subdcivisionl shanll give, permiiit to be niven,. or
offer to give, anything of value for the purpose of influencing or
rew-arding the~ action of any employee, age nt, or recpresl;entative of
another in relations! to the bulsincss of the employer of suc ch mp~lo~ee
or the principal of such agent without the knowledge of such~ em-
plalyer or pr1incipal, provided that no prov\ision of this Code shall be
construed to prohibit free and gener~~l aldistribsution otf articles com-
mlonly se for~'- adv\ertising, ecsr-eltl so far as such, articles are actually
used Ifor commercial bribery as hereI~innhlove defined.
2. Any3 discrimination between pulrchlasers, by the sale of any arti-
cle having a published price, at any price other than, the srelle's
pulblished: pr~icer, by meanns of direct or indirect price concessions, or
by mleans of any privilege not extended to purchasers generally.
3. Untruthfully adv\ertisingf, representing~, or malrkingr any pr~odulct.,
with :intelt. to dtece~ive or mislead.
4. The p~ublishing or circularizing of threat of any suit for in-
fringe~ment of pat~ent or trade mark, or of any other legal proceedings,
not in good faith, which would te~nd to harass a competitor or
inltimidate his customne~s..
5. The taking in trade or accepting in trade any; secondhand orhwvr la
oldequpeti atpyetfrnw rvdd oeeta
this provision shall naot be construed to prohibit in anyi~ way the
return within six; months of the date of shipment, to teVendor
andl the allowance of any fair adljustment~l thereon by th-e Vendor
of any product which shall not meet the purposes for which it w)Pas
sold. Any employer may, however, assist in finding a bona fide
buyeCr for Said- equipment, but shall in no case~ take anly finalncial
.intercst in it.
6i. So long as the makler of any product of this Subdivision bear-
ing the maker's name or trade mark, which has required special
de-igning, research. or development expense (or his successor in
bjusinelrs) continues to mzake and supply such spare, repair andc re-
placement parts therefore, supplying repair parts for such product
of this Subdivrision unlless (a) the name of the maiker of such copied
naon-genuine repair parts shall be plainly marked on each part (or
if this is imnpracticable on the package or tag) so that the ultimate
user is clearly informed by marking on such parts, packages, tags
and in catalog~ues, price lists, quoted prices, ad-vertisemencrts or ad-
vertiising lilteranturle of the mlanlufact~urer of such copied non-genuine
parts that, said parts were not made by the original maker of the
products of the employer of this Subdivision.
7. Thelc furnishing to any purchaser, and/or his agent, directly or
indlirectlyT of detailed shop drawings of the products of this S4ub-
division without filingi a statement of such proposed~ transaction
with the Code Authority which may approve or wCCith the appr~lovnl
of the Administrator~ disapprove the transaction within ten (10)
days by written notice to the emp~-loyer.
8. Disseminating false or misleading inf~ormaitiojn relative to com-
pe'tit~or's products, selling prices, reputation, c~redit or financial
standing, ability to perform work, or labor conditions.
9. I~nducing or alttempting to indcuceA a breach or abandronme~~nt of
contract cov~erilng the purchase or sale of the products of this Sub-
division; providedi, however, that nothing in this Section shall be
construed to prohibit the attempt on the part of the owner of or
UINIVEREITYY OF FLORIDA
14 3 1262 08853 8193
licensee under any patent to induce a purchaser or future purchaser
of any product which hall infringe said patent, to avoid such
10. It shall be ain unfair trade practice for anly employer to en-
gragre in destliun-tivec pi~1-c cutting
AnITIC'LE X~SALES FOR, ExronrT
The p~rovisions of th~is Supplemental Code concerning p~ricingi and
marketicingr (Articles VII, VIII and I~X) shall not apypl to direct
export sales of any product. A similar exsemption may be granted
bly the Code Authori y of thlis Subdcivision as to sales of any product
c-estinedl ultimately for exlpo~rt. UCnless otherwise. determined by the
Code Auth~ority the term export shall include all shipments to
all p~laces without the, several states of the U~nited States and the
District, of Columb~tia; provided, however, that no shipment to any
territory or possession of the United St~ates shall be considered an
export w~hen anly employer is engaged in the industSry in such terri-
tory or possession.
AtlRTICLcEI XI --TODIFICA\TIO NS
(a) As provided by Section 10 (b) of thes Atct, the President may
from time to time cancel or modify anly order, approval, license,
rule or regulation issued under Title I of t~he Act.
(b) Studly of the trade practices o~f this Subdlivision will be con-
tinuredl by Code Authority, with the intention of submitting, from
time to time, after its effective date, amendments or additions to,
or revisions of, or supplements to, this iSupplement~al Code.
A4ny such amendments, additions, revilsions, or supplements, pro-
posed~' by7 Code Aut~hority, and approved by a 756/o vo~te of the em-
ployers shall be in full force and effect upon approval by the
The eligibility- r~equiremetnts, method, and effect of such voting
shall, be the same as provided in Section (b) of Article VTIII.
Th;e Sup~plemnental Code presented by Applicant is not designed
to p~rom~ote monopoly, and shall not be so construed or applied as to
oppresLs or elimiinate~ small enterprises or discriminate? against them,
and is de~signedl to etlectuante the Policy of the Act.
.ARTICE XII -ECn TE ATE~
Th-is Suplplemerntal Code shall become effective and binding on
all persons engaged' in this Subdivision. on. the eleventh day after
its approval'" by the Presidenit.
Appnava.~l Code No,. n47-S~uppglement No. 18.i
TcRiegN7 Slry Nmbr 13'J,-CA.