Supplementary code of fair competition for the water softener and filter industry (a division of the machinery and allie...

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Material Information

Title:
Supplementary code of fair competition for the water softener and filter industry (a division of the machinery and allied products industry), as approved on July 9, 1934
Portion of title:
Water softener and filter industry
Physical Description:
11 p. : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Water filters -- United States   ( lcsh )
Water -- Softening -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

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. 699-19."
General Note:
"Approved Code No. 347--Supplement No. 28."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004942761
oclc - 63654844
System ID:
AA00006735:00001

Full Text

__ I
For sale by the Superintendent of Documents, W'ashington, D.C. Price 5 cents


Approved Code No. 347--Supplement No. 28


Registry No. 699--19


NATIONAL RECOVERY ADMINISTRATION



S UPPLEMRENTARY
CODE OF FAIR COMPETITION
FOR THIE

WATER SOFTENER

AND FILTER INDUSTRY

(Al Division of the Mlachinery and Allied Products Industry)


AS APPROVED ON JULY 9, 1934


WE DO OUR PART


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHIINGTON: 1984























This publication is for sale by the Superintendent of Documents, Govrernment
Printing Office, Wahington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT: OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commnerce Building.
Chalrlesiton, S.C.: Chamaber of Commerce 'Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, nlich.: 801 First NaJtional Bank Bulilding.
Houston, T'ex.: Chamber of Commerce! Bulildinlg.
Indianapolis, Ind.: Chambiler of Commerce Bulilding.
Jacksonville, Fla.: Chamber of Commerce Buildinrg.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Kiy.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, MIinnr.: 213 Federal Buildling.
New Orleans, La.: Roomn 225-A, Custombhouse.
New Yorkr, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust BU~ildinlg.
Pittsb~urgh, Pa.: Chamber of Commerce Bulilding.
Portland, Oreg.: 215 New Post Office Bluilding.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Washn.: 809 Federal Otlice Building.











Approved Code No. 347--Supplement No. 28


SUPPLEMENTARY CODE OF FAIR COMPETITION
FOR THIE

WIATE~R SOFTENEPaR AND) FILlTIER INrDUST~RY

As Approved on July 9, 1934


ORDER

SUPPLEM\ENTARY CODE OF FAIR COMPETITION FOR THE 7iATER SOFTENER
AND FILTERR INDUSTRY

Ar DIVISION OF THIE MACHCIN~ERY AND ALIJTED PRODUCTS INDUSTRY

An application having been duly made pursuant to and in full
compliance with, the provisions of Title I of the National Industrial
Recovery Act, approved June 16i, 1933, for approval of a Supple-
mlental Code of Fair Comnpetit~ion for the Wa~ter Softener and Fil~ter
Subdivision of Machinery and Allied Products I~ndustry, and hear-
ings having been duly held thereton and the annexed report on said
Supplemental Code containing findings with respect thereto, having
been made and directed to th~e President:
NOW, TH~EREFORE, on. behalf of the President of the United
States, I, H~ugh S. Johnson, Adiministrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent,, including Executivec Order No. 6543-~A, dated Decemrber 30,
1933, and otherwise~; do hereby noprt yrfrnesi nee
repot ad d fin tht sid upplemental Code clmlplies in all re-
spects with the pertinent provisions and wFiill promote the policy and
pulrposes of said Title of said Act; and do hereby order that said
Supplemental Code of Fair Competition be and it is hereby ap-
proved, subject to the following condition: that the provisions o
Article VIIIC, Section (a), insofar as they prescribe a waiting period
`between the filing wCith the C~ode Authority (or such agency as may
be designatedl in the Supplemental Code) and the effective date o
price lists, as originally :filedl and/or revised price lists or revised
terms and conditions of sale, be and they hereby are stayed pending
my furthler order.
Huan~ S. JoHNson,
Admi~inlisf~traor for Ind ustr iicd Rc~co ver~y.
Approval recommendled:
BARTON V. I\URRAY,
Divis~i~o~n .dm.inii'strator.
WTrsmxKCTow, D.C.,
July 9, 10JJE.
72643*---8"'9-34-34 (11











REEPORT TO TH`E PRESIDENT


Thre PRESIDENT,
The WhiCte House.
SmR: This is a report on thre Supplem~ental Code of Fair Competi-
tion for the Water Softener and Fiilter Subdivision of the M~achin-
eryr and Allied lProducts Industry, a Public HEearintg on which was
held in Washington, D.C. on December 21, 1933.. The ~Hearing was
conducted in full accordance with the provisions of T~itle I of the
National Industrial Rtecove~ry Act.
GENERAL STATEMlENT

T'he Wgater Softener and Filter Subdivision being truly repre-
sentative of thre manufacturers of the products defined in Article
II of the Supplemental Code, has elected to formulate and submit a
Su~pplementnII Code of 1Fazir Competition as provided in the second
paragraph of Article I of the Code of Fair Comlpetition for the
Machinery and Allied Products Industlry, approved by you on the
17th day of M~larch, 1934.
The W'ater Softener and Filter Subdiviision means the mlanufac-
ture or assembly for sale of zeolite water softeners, lime-soda water
softeners, water filters and products allied thereto, including th
zeolite used therein, and parts thereof, andl includes all those engalgedl
in such manufacture or alssemlbl~y for sale.
ECONOMIC EFFECT

This Sublivision has been severel~y affec~tedl by the depression.
This is eviden~lcedl by the steady dec~linle m annual sales sinre 1929,
G6'T: from. 1929 to 1932. Research and Planning D~ivision report
an estimated further ~ec~linet of 3%a for 193;\3 below the! 1932 level.
In 1929 the total number of persons employed in the Subdivision
was estimated~ at 1,000. Ba3;sed~ on ques?;tio~nna~ire re~tur~ns employment
as of June 15, 1933 repres.entedc 53.3%c of thne 1929 level.
AL~pproximnately 50%' of thep workers in June 1933 wfere working
more than 40) hours per week~; but the average~ wor~k week in October,
.19:33 was 35.9 hours. With product lon r~emalining~ at ~r~esent levels,
no inc~re~ase in emlploymenlt may be exipectted with the adoption of the
40 hour wFeek.
Aplllproxima"telyJ 22%11 of the workerl~s inr June, 1i983 were receiving
less than 40 cents per hor. Thle minimum~r~ wage in October, 1933i
ranlgedr bctwe~en 20 and 25 cents per ho~ur. The~ adloptionl of the mini-
mumII1 wnge of 40 cents per houlr, as prov~idedt by thle Codle, is expected
to b~e alc.rcompnllidc byT an inlcreaSe mn pay rolls.
The wage~c procvisionlls for thle Subdivisio~n, which is o~er~ating under
the Code of the Ma~c~hiner~y andc Alliedl Produ~cts Induistry, provide
thart emnployee~c s engagedc in plant oplera;tionls shaull be pauid as follows:
(1) in cities of moicre than 50,000l poplalltion and their immediate









vicinity, 40 cents per hour; (2) in cities of more than 10,000 but not
more than 50,000 population and their immediate vicinity, which
cities are not in the immediate vicinity of a city of more than 50,000
population, 38 cents per hour; (3) in cities of 10,000 population or
less and thleir immediate vicinity, which cities are not in the imme-
diate vicinity of a city of more than 10,000 population, 36 cents per
hour', except that employees engaged in plant operations in. all lo-
calities in the states of Virginia, North Carolina, South Carolina,
Geoirgin, Florida, T'ennessee, At~labama, M~ississippi, ALrkansas, Loui-
siana, Texas, and Oklahoma, shall be paid not less than 32Z cents per
hou r.
When females do substantially the same work as males or replace
maales, they shall receive t~he same payT. Howiever, no female emz-
ployee shall be paid less than 871/2%~ Of the proper rate for the lo-
calitly in which employed.
Office boys and girls and apprentices shall be paid not less than
80?c of the minimum~ wage.
E jmploye~es other than those engaged in plant operations shall
receive not less than $1_5.00 per week.
SThe Code requires that no person under sixteen (16) years of
age shall be emp~loy~ed in this Subdivision.
a EsoU n of SUPPLEMENTAL CODE

Article I states the purpose of the Supplemental Code.
Ar~ticle II acculrntely defines specific terms applicable to the Sub-
division as used in this Su1pplemental Code.
Article III provides for the: adoption of the employment provisions
of the National Industrial Recov\ery Code of thle Machinery and
Allied Products Industry, as approved by you, and as from time to
time amended.
Atlrtile I[V provides for the adoption of Articles II, VI, VIII, and
I`X of the Code of Fair Competition for the Machineryr and Allied
Prodlucts Industry, in accordance with the conditions of this Article
governing their adoption.
Article V provides for the establishment of a Code Authority and
defnes its powers and duties.
A 'rticle VI provides for an accounting system and methods of cost
finding and/or estimating.
Article VII provides that no products shall be sold or exchanged
below a reasonable. cost when the Code Authority det~erm~ines that an
emergency exists.
Article VIII provides~ for methods of setting up, revising, and
filing price lists and discount sheets and terms of sale and payment.
Article IX sets forth- trade practices for the Subdivision.
~Article IX establishes that. no provision of this Supp~lem~ental Code
relating to pricing and marketing shall apply to export trade or to
sales` or s~hipmient~s for export tradelt.
Article XI. This Supplemnental Code and all the provisions thereof
are expressly made subject, to the right 'of th~e President, in accord-
ance wICith Subsection :(b) of Section 10 of the Act, from time to
time to enncel or modify -any order, approval, license, rule or regula-
tion issued under said Act. Provision is also made that modifica-









tions mnay be submitted by the Code Authority to the Administrator
for approval.
Article XII: provides means for withdrawal of this Subdivision
fromn the Basic C~ode and its continuan~ce as an aultonomouls Clode.
Article XIII. No provision of this Sulpplemnental Colle shall be so
applied as to permiit monopolies, or mlonopollistic practices, or to
elimlinrate, oppr~ess, or discriminate against, small7 enterprises.
A1?rticle XIVT states the effective dalte of this Suppl~~llemental Code.
FINDINGS
The Assistant D~epu\ty Adiminist~rator inr his final repoc~rt to me on
said Sup~plemental Code having found as herein set forthl and on the
basis of all the proceedlings in this matter:
I find that:
(a) Said Supplement~al Code is well de~sigswdt to promote the
policies and purposes of Title I: of thre Nationlal brust~rlal Reco~very
Act, including removal of obstructions to thne free flow~r of interstate
and foreign commlnerce which. tend to diminish the amount thereof
and will provide for thie general welfare by p~romlotinlg the organiza-
tion of industry for the purpose of cooperative action among th
trade groups, by indulcing and maintaining uinitred notion of labor
a~nd management under adequate governmiental sanc-tions and super-
visionl, by chmrinatmge unfair comnpet iti ve prac~twes~. by promllotmng th
fullest possible utilization of the present capacity of industries, by
avroiding undue restriction of production exceptt aIs may15 be! teml-
parar;'ily required), by increasing the consumption o~f indullstr~ial and
agricultural products through increasing purc~hasing~ pow~r, by re-
dueing and relieving unemployment, by improving~ standards of
labor, and by otherwise rehabiitating industry.
(b) 8aid Subdivision normallly employs niot mor,1e than 50,000
emp Iloyees andl is not classified byT me as a major indlustry.SPr
(c) The Suipplemental Code as approved compllies in alrset
with the pertinent provisions of said Title of s~aid~ Ac~t., including
without limitation Subsection (a) of Section 3, Surbs~c~tion (a) of
Section 7, and Subsection (b) of Section 10 thlereof; am~l that thle
apoplienunt init itulte is an indlustrial Sgroup representatives e o~f the arfore-
said Subdiv~ision1; alnd that said msetitute. implloses nor inequitable
restr~ictio~ns on admission to membershiip therein.
(d) The Suppleme~ntal Code is not designed~ to andi will not per-
mit mlonopolies or monopolistic practices.
(e) The Suipplementatl Code is not designed to and will not elimn-
inate or opp~ress smtall enterprises and will not operate t~o discriml-
inate against them.
(f) Th'lose engagedl in other steps of the economic process hlave
not been deprived of the right to be heard prior to appro~c val of saidi
SunolZemental C'ode.
Fior these I':~reaso, thrflcCOre., I. have approved thtis Supp~llemnental
Codle, providled that certain provisions relating to price purblication
are stavedl as s.ctated inl the Order.
.Respect fully,
)II an S. JroH s son,
Admlrrinistl~ral r.












SUTPPLEMIENTARY CODE OF FAIRL COMPETITION FOR
TH~IE WATER SO]FTIENPER AND FIiLTER INDUSTRY
A DIvISION OF THE MABCHINERY AND ALLID PRODUCTS INDUSTRY

ARTICLE I -PURPOSES

To effeet.uate the policy of Title I of the nationall Industrial
Recovery Act, the following provisions are established as a Supple-
mental Code of Fair Competition for the W(ater Softener and Filter
Subd-ivision of the Maschinlery and Allied Products Industry, and
together wCith the Code of Fiair Com~petition for Machinery and
Allied Products Industr~y, shall be the standard of fair competition
for thlis subdivision and shall be binding on every employer therein.
A ARTICLE II--DEFINITIONS

"Applicant means the Water Softener and Filter Institute, a
trade organization, all members of wFhich are engaged in. the manu-
facture or assembly for sale of thie products of thet Wa~ter Softecner
and Filter Subdivision of the Mdachinery and Allied Products
Industry.
Industry means the RMchinery and Allied Products Industry,
as defined in its Code of Fair Competition as approved by the
President, and as such detfinlition may from time to time be amendedl.
'" Subdivision means the WC1ater Softener and Filter Subdivision
of the Machninery and Allied Products Industry as defined and set
forth in paragraph 37 Article II of the Code of Fair Competition
for the Manchinery and Allied Products Industry.
"C Water Softener and Filter Subdivision means tlhe lanulfacture
or assembly for sale of zeolite water softeners, limne-soda water
softeners, w-ater filters, and products allied thereto, including the
zeolite used therein and, parts thereof, and includes all those engaged
in such manufacture or assembly for sale."
"' Code means the Code of Fair Competition for the Machinery
andl Allied Products Industry as approved by the President, March
17, 1934, and as from time to time ame~nded.
"Person means a natural person, a partnership, a corporation,
an asjsoelatlon, a trust, a trustee, a trustee in bankruptcy, a receiver
or other entity.
"L Employer means any person engaged in this Subdivision either
on his own behalf or as an employer of labor.
".The A~ct "' means Title I of the National Industrial Recovery
Act.
'"The President means the President of the United States.
The Admninistrator means the Administrator for Industrial
Recovery. ,








Basic Code Authority meeans the Code Authority for the Ma-
chinery and ALlliedl Produ~cts I[ndustry as constituted by the. Code.
"' Code AuthorityT meanns the Code Authority constituted for this
Subdivision as provided by the Code and by this Supplemental Code.
"'Group Code Author~ity means the C~ode Aut~hority for any
group or products classification within this Subdivision.
"L Publish ") means to make available to the public.
ARTOLE III[--EMPLOYMRENT ]PROVSIONS

The following Articles of the Code, viz: Article III, Wor~irng
HIours ";' Article IV, Wa7ges "; and ~Article V, Generacr:l L~abor
Provisions are hereby mnade a part of .this Suppllleental Code
with the same effect as if they were written into this Supplemlen'tai
Code.
AnarCLE IV--ADOIPTIION Or OrHIIER PROVISIONS OF CODE

The following~ Articles of the Code, viz: Article ~II, "Definitions ";
Article VI, '"Ad~ministration ", to the extent that they shall be appli-
cable to this Supplemental Code as such or as it maJT hereafter be
administered as an autonomous Code; Article VCTIII, L' Modifications
and Termination "; and Article IX, Withdlrawal ", are hereby
adopted'l and made a part of this Supplemental Code, with th sam
effect as if they were written into this Su~pplemental Code.
ARTICLE V A DMI N I STATION

(a) A. Code Authority for this Subdivision is hereby constituted
to administer and supervise and to facilitate the enforcement of the
Code and of this rSupplemental Code in thle manner and to the
extent provided in the Code and in this Supp~lement~n1 Code.
(b) During a period not to exceed] sixty(60) d~ays followfing the
effc~ctive date and pending: the election of the permanent Code
Authority, the Code commitee of the Applicant shall constitute a,
ftemplorary Code Authority.
(c) The Applicant shall, by written notice .mailed (Icregistered) to
all employers known to t.he Applicant., call a meeting of employ-
ers to be held within sixty (60) days after the effective date for the
purpose of adopting procedural rules and regulations for the elec-
tion, organization and operation of the permanent Code Authority
andeletin a eranent Code Authornty which shall consist of
five mlemnbers.a ectn ~The Administrator mayT, in his discretion, appoint
o~ne ad~ditio~nal member (without vote an~d wFFithout expense to the
Ind-ustryr). The permanent Code Au~thorit~y so elected and ap-
po'inted shall succeeds thne temporary Code8 Authornnity.
(d) 1. It being foulnd necessary in order to support the admninistra-
tioni of this code and to maintain the standards of fair comp~ettiton
estab~lished~ hereulnder and to effectuafte the policy of the Ac-t, thle
Code Authority is authorized:
(a) To incur sucrh reasonable obligations as are necessary and
proper~ ~ ~ r frtefrgn urposes, andl to meect sulch obli-
gEations out of funds which myb asda eenfe








provided and which shall be held in trust for the purposes
of the Code;
(b) To subhmit to the Admlinistr~ator fo~r his approval, subject to
suchl not ice. and opportunity to be heard as he may deern
necessary (1) an item~izedl budget of its est~imanted expenses
for the foregoing purposes, and (2) an1 equitable basis
upon. which the funds necessary to support such budget
shall be contributedl by em~ployers of the Subdivision;
(c)~ Afte~r sucrh budget~ and basis of contribution have been ap-
proved by the Adminlistr~ator, to determline and obtain
equlitable contribution as above set forth by all employers
of the Subdivisionl, and to that enld, if necessary, to
inlstitutec legal proceedings therefore in its own name.
(2) Each employer of the Subdivision shall pay his or its equi-
table contribution to the expenses of the maintenance of the Code
Authority, determined as hereinabove provided, and subject to rules
and regulIations pertaining thereto issued by the Adm i nist ra tor.
Only employers of the Subdivision comply-ing with the code shall
be entitled to participate in the selection of members of the Code
AuthorityT or to receive the benefits of any of its vLoluntary ntltivrities
or to make use of any emblem or insignia of the National Recoveryr
A lm i nist ra tion.
3. Th1e Code Ai~uthority shall neither incur nor pay any obligation
in excess of the amount thereof as estimated in its approved b~udgert,
except upon approval of the Acdministrattor; and no subsequent bud-
get shall contain any deficiency item for exrpenditures in excess of
prior budgets estimates except those which the Administrator shall
hae so approved.
(e) Action by employers in any Subdivision meeting for the
election of Code Authority shall be by vote of th~e employers en-
titled ~to vote as provided in Section (d) of this Article V, eac~h
such emlploytrr to have one vote only. Actir-n by employers in any
Subdivision meeting for the adoption of procedural rules, revisions
or adlditions to the Supplem~ental Code, or the transaction of other~l
business of the Subdivisio~n under this Supplemaental Code, shall
be by vote of thre employers in the Subdivision who are entitled~
to vote. therest as provided in Section (d), Article 'V of the Sup-
plemental Code and are present in person or byT proxy duly executed
and filed with Code Authority; cast and computed in the manner
provided inl Section (d), APrticle VI of the Code. All questions as
to the number of votes which each employer shall be entitled to cast
at. any meeting of employers other- th~an the meeting held to vote
for the election of the permanent Code Authority shall be deter-
mined by Code Authority in accordance with Section (d), Article
VI: of the Clodle
(f) Inr order that, the Cfode Authority or Group Code Authority
shall, at all times, be trly representative of the Subdivision and
in other respects comply wiith the provisions of the Act, the Ad-
ministrator may prescribe such hearings as he may deem proper;
and, thereafter, if he shall find that the Code Authority or Group
Code Authority is not truly representative or does not in other re-
spects comply with the provisions of the Act, may require an ap-








propriate modification ini the! method of selection of the Code
Authority or Group Code Authority1.
(g) Employer~s in this Sulbdivision having a common interest and
commnln problems may be groupedl by Code Authority for adminis-
trative pu'rposes." There shall be a Group oeAtoiyapoe
or appointed byT Code Aulthority for each,~B~Cd such group. apo
(h) If formal complaint is made to Code Alt~hor~ity that proi-
sions of this ~Supplemental Code have been violated~ by any employer,
Cede Authlority or the pr1ope~r G~roup Code! Authority shall investi-
gate the complaint and to that end, may3 to the extent permlitted~ by
the Act, caused? such investigatio.n, examinat~io n or auLdit to be mlade,
as may be deemedl nec~essary.y If such investigation is made by
Group Code Authority it shall report the result of such investigation,
examination or audit to Code Authorit3 for action.
(i) The Code Ahuthority- may appomnt a Trade 1Practice Com-
mitte~e which shall meet with the Tradte Practice Ctommnittees ap-
pointedl under such other Codes as may be related to the Subd~ivision
for the purpose of formulating fair trade practices to govern t~he
relationships between prodlc~tion and distribution employers under
this Supplemlenltal Code and under such others to the end that such
,fair trade practices may be proposed~ to thie Adm~inistrator as amend-
ments to this Supplemental Cod~e and such other codes.
ARTICLE VI --ACCOUNTINa ANn Co.Sn~ho

The Code A~uthority shall cause to be formulatedl an accounting
system and mlethnods of cost finding a~nd /or estimantingr capable of use
by all employers of the Subdivision. After such systemn and methods
have been formulated, full details concerning theml shall be made
ava~ilab~le to all employers. Thereafter all emplloyers shall determine
and/or estimate costs in accordance with the principles of such
m~ethods.
ARTICLE VII---SELUING BELIw REASONABLEE COST
SECTION 1. When thte Code Author~it 'determines that an emer-
genCyS exisjts in this Subdivision and that the cause thereof is destruc-
tire ~r~ice~-enltting(I such as to rendrerr inecffelctive or se~r~iously endlngert
tithe mainltenanlc.e of the prov~\isions of this Suppleme~ntal Code, the
Code Authnority~ may cauue to be dletermIIinedl the lowest reasonable
cost of the products of thlis Subd~livision, suchi determllinatio n to be
subject to sulch noctice andlr hearing as the Adm~iniist'trator mayU require.
Thle? Adm~linisttrator may applrove, dti approve,, or modify the dleter-
mination. Therenc~fterr, du~ring~ the period' of the emllrergency it shall
be an unfair trade peneatice for any3 ~lllemloy of the Hubdlivisionl to
sell or offer to sell any; products of the Sublivisionl for which the~
Ilowes(t. reaisonabnle~C c(,st. ha~ ben dectelrminedr aIt suchn prices or upon
such termlls or condl~itionls of 5ale~ that thc buyer woill p~ay less therefore
than the lowe~~ It reasonable colst of such1 product
When~I it aplpea~rs that tcondlitiolns have changeI~cd. the Codel Authority,
uPon its own inlitiative( or upon)I the requesr~t of any inrter~estedl party,
sh-011 casre the (Ih-termrinat ionr to, be rev~\iewed~'.
SerI:'Ts 2. TheC foregoing~ Sec~tion sal not. a1Pply to (a1)








ver'ted into cash to meet emergency needs, all of which may be dis-
posed of by any employer at any price and on any terms or condi-
tions, but only if such emnployecr, not less thlan two weeks before such
proposed disposal, hras filed with Code Authority a statement in
writing setting forth th~e facts of, and reasons for, such proposed
disposal a~nd the price and terms and condlit~ions of sale, and Code
Authority has not, (wit~h the alpprovanl of the Administrator), before
the termination of such two week period, in writing, disapprlove~d the
proposed disposal. NYotice of such disposal, if not disapproved, shall
be senrt immediately to all employers manufacturing products of
equivalent design, character, quality or spe~cificationsi, who may sell
(a) dropped lines, or (b) seconds, or (c) inventories which must
be converted into cash to meet emergency needs, at prices and on
terms and conditions as favorable as those stipulated in th~e pro-
posed disposal.
SECTION 3. Tl-16 fOPegoing Se6810H 1 Shall not apply to a sale
mlade in order to meet competition on products manufactured out-
side the Unite~d States. For such disposal, any employer mayT sell,
at prices and on terms and conditions asj favorable as those of the
competing foreign product, but only if he hats first reported to the
Code Authority his intention so to sell, and the facts as to the com-
petition which justifies such action.
ARTICLE VIII--PRICE LIesT

(a) If and when Code Atluthority determines that in any group of
the Subdivisionl it has been the generally recognized practice to sell
a specified product on the basis of net price lists, or price lists with
discount sheets, and terms of sale and payment, each employer en-
gaged in the manufacture or sale of such product shall, within ten
(10)) days after notice of such determination, file with Code Author-
ity a, net price list, or a price list with discount sheet, as the case
may be, individuallyT prepared by him, showing his current prices, or
prices and discounts, and terms of sale and payment for such spect-
fled- product, and Code Authlorityr shall immediately publish and send
copies thereof to all known employers wcho are cooperating under
this Su~pplemental Code: as described in Article V, (d) and engaged
in the mnanufacture or sale of such specified products.
Revised price lists andl/or discounTt sheets and/or terms of sale and
payment may be filed -from time to time thereafter with the Code
Authority -by any such employer, to become~ operative upon the date
specified theirei, but such revised price lists and/or discount sheets
and,/or terms of sale and payment shall be filed with thne Code Au-
thority ten (10) days in advance of the operative date. Copies
thereof, with notice of the operativoe date specified, shall be imme-
dliately published and sent to all employers cooperating under this
Supplemental Code as described in Article V, (d), any of whom may
file, if he so desires, revision of his price lists and/or discount sheets
and/or terms of sale and payment, which shall become effective
upon the date wrhen the revised price list and/or discount sheet
and/or terms of sale and paymlent ~first filed shall go into effect.'
(b) If and wFhen the Code Authority shall determine that inan
group of the Subdivision not now selling its product on the basis o
a See paragraph 2 of order approving this code.








price lists, within or wlrithout discount sheets, with terms of sale and
payment, the distribution or marketing conditions in the group are
the same as. or similar to, the distribution or marketing conditions
in a group wFihere the use of price! lists, with or w~itfhout discount
sheets andi termls of sale and payment is well recognized, and that
a system, of selling on net price lists or price list.s and discount
sheets with term~ls of sale and pa~ymlent for sulch specified product
should be put into effect in such group, then each, employer in such
group shall within twenty (f20) days after notice of such deter-
mination, file with Codfe Authority net. price lists or price lists and
discount she~ets, with terms of sale and pymne~nt, showmlg his price
and dlisc~oults and terms of sale and paymrlent, anid such price lists
and/or dtiscou~nt, sheets and/or terms of sale and payment may be
thereafter revisedl in the masnner h~ereinlbefore p~rovided. .Provided
that Code Authority shall make no determination, to place any
product of the Subdivision (not nowr on a price list basis) on a price
list basis, as provided in this Section unless affirmative consent t~o
such. determination is given by a 66%%3~ vote of emnployvers who are
at that time cooperating under this Sulpplemental Code as described
in Article V, (d), and are engaged in mlanulfacturing such product.
The eligibility re~quireme~nts, method, and effect of such voting shall
be th~e same as is provided by Article V.
(c) No employer shall sell directly or indirectly by any means
whatsoever, any product of the Subd~ivision covered by provisions
of this AIlrticle. VIII at a price or at discounts or on terms of sale
and payment, different from those provided in his o~wn current net
price lists, or price lists and discount sheets, and terms of sale and
payment.
AnnICLE IXJ--TRLAD)E PRACTCES

1. No employer shall secretly, directly or indlirectly, offer or, make
any paymllent or allowance of a :rebate, refund, commission, credit,
unearned discount or excess allowaince, whether in the form of money
or othlerwise, nor shall any employer secretly offer or extend to any
customler any special service or privrilege not extendedl to all culs-
tomers of the same class, for the pulrpose of influiencing~ a sale.
2. N~o employers shall publish advertising (w-hetherr printed, radio,
display or any other nature), which is misleading or inaccurate in
any material particular, nor shall any emptloyer mn anly way misrep-
resent. any gocods (including but without litniitation its use, trade-
mar~k, grader, quality, quantity, c~apacity, origin, size, substance,
chanracter, na~ture. finish, manterianl, conltenlt or preparation) or credit
ter~ms. values, policies, se~rvics, or the natu~e. or form o~f the business
condlucted~.
3. No empllloyer shall p~ublishl or circulalte unrjulstifiedl or `unwafr-
r~antedl thren~ts of legal p~rtreedringsr w1hichn tend to or have thle effect
of harasising comnpetitors~ or intimi(dating~ their custfomelrs.
4. N~o emplloyrc l shall indulgle in1 clestruc~tive prijce-cuttiing.
5. N4o empllo~ycer sha~ll givec, permlitt to bie giv'en, oI dlir~c~tly offer
to give, anyth~ing of value~I for thle purp~c se o~f influncring~ or rewardl-
ing the ac'tlion of any eml1Oyeec, agntcl Or reL)ICpresenttiv o. (f another in
re'~laionl to thel busineS of t~he empII~).loye of suchl employee!''(, thle prinl-

of sucl~h emloyel~?r, principl' or party. Thlis p'rovisio~n shall not be








construed to prohibit free and general distribution of articles comn-
monlly used for adv\ertisingr except so far as such articles are actually
used for conunier~cial bribery as herin~iabovee d-efinled.
ARTCLE X-ExronC T7RADE

No provision of this Code relating to prices or terms of selling,
shipp~ing or mlarkeitting, shall apply to export trade or sales or ship-
ments for export tradel. Export Trade shall be as defined ini the
Export Trade Act adopted April ;10, 1918.
~A-RTICLE XI-M MODIFICATIONS

(a) APs provided by Section 10 (b) of the Act thePr~esident may
from time to time e-nllcel or modify anly order, approval, license, rule
or regulation issued under Title I o-f rthe Act.
(b) AnyT amendments, additions, revisions, or supplements of
thris Supplemnental Code, proposed by Code AuthorityT, and author-
ized by the affirmative vote of 662/3% of the employers shall be in
full force and effect upon approval by the Admmnistrator. Thle
eligible requirements, method and effect of such voting shall be
the same as provided bly Article V hereof.
ARTICLE XII--WITHDRAWAL

Upon thirty days' notice to the Basic Code Authority and to the
Adniinisllt ratorl, thliS Subdivision may, upon the concurring affirma-
tive vote of employers, within the said Subdivision entitled to cast
two-thirds or more of all the votes that might be cast by all emn-
ployers within the Subdivision enltitlced to vote thereon, withdraw
from the jurisdiction of the Basic Code Authority. The eligibility
of voters~ and the method and effect of such voting shall be ini ac-
cordance with the provisions of Article V hereof. After and in, the
event such withdrawal is acc~omp~lished this Supp~lemental Codte,
together with the provisions of the Code shall become and be the
sole code governing this Subdivision, and the Code Authority shall
for this Subdivision, become and be the sole Code Authority and
shall perform all the functions with respect thereto.
ARTIcE XIII--MONOPOLIES

Applcicant imposes anld shall impose no inequitable. restrictions on
mnem~bership thereiin. The Supplelmental Code presented by it is not
designed to plromlote monopoly, and shall not be so construed or ap-
plied as to oppress or eliminate small enterprise or discriminate
against~ them, and is designed to effectuate the policy of the Act.
ARTICLE XI[V--E~FFECTIV.E DATE

~This Sup~plemental Code shall become effective and binding on all
persons engaged in the Subdivision on the eleventh day after its
ap r~ov\ral.,
Approved Code No. 347-S~upplement No. 28.
Registry No. 6009-10.




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