NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIRb COMPETITIION
CONVEYOR AND MIATIERIAL
M[ANU FACTU RI NG INDUSTRY
WE DO OUR PART
* i.S. OEPC
For sale by the Superinten~dent of Documents, Warshington, D.C. - Price 5 cente
Approved Code No. 347--Supplement No. 22
Registry No. 1342--01
(A Division of the Machinery and Allied Products Industry)
AS APPROVED ON JUNE 19, 1934
GOVERNMENT PRINTING OFFICE
This publication is for sale by the Sup~erintendent of Documents, Government
Printinlg Office, Washington, D).C., anld by district offices of the Bureau of
F~oreigrn and Domnestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMEBCB
Atlantts, Ga.: 504 Post Offce Building.
Birmingham, Ala.: 257 F'ederal Building.
Boston, Masls.: 1801l Customhouse.
Bu~ffalo, N.Y.: Chamber of Commerce B~ui~iildng.
Cha~rleston. S.C.-: Chamnber of Commerce Building.
Chicago, Ill.: Suite 17i06, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Comnmerce Building.
Detro(it, M~ich.: 801 F'irst National Bank Building.
Houston, Tex.: Chamber of Commerce Buildling.
Indialnapolis, Indi.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Comnmerce Building.
]Kansas City, Mo3.: 1028 Baltimore Avenue.
Los AngeSclt es, Calif.: 1163 South, Broadway.
Louisville, Ky.: 408 Ftederal B3uilding.
Memphlli s, Tenn.: ~229 Federacl Building.
Minneapolis, Iinnl. : 213 .Fedrrlal Building~r.
Newi Orleans, La.: Room 225-A, Custombonuse.
New~ York, N.Y.: 734 Custombouse.
Nor1folk,. Va.: 406 East PIlume Street.
Ph~iladelphiain Pa.: 422 Commnercial Trust Building.
Pittsb~urghr Pa.: Cham~ber of Commerce Buoliding.
Portland, Oreg.: 215i N~ew Post Office Buildling.
St. Lou,~is, JIv.: 506 Olive Str~eet.
San F~ranc~is~o, Calif.: 310) Custombouse.
Seattle, Wash.: 8003 Federal Office Buliblinlg.
Approved Code No. 347--Supplement No. 22
SUPPLEMENTA~RY CODIE OF FAIR COMPETITION
CONVEYCIOR AND) MBAT4ERIAL PRWE P A RAThI`I ON
EQUIPMaENTr MANIUFACTURINGG INIDUST]RY
As Approved on June 19, 1934
SUPPLMENTARY CODE OF FAIR COMPfETITION FOR TH E CONVEYOR AND
MfATERIA, PREPARATION EQUIPMENT NANUFAC'TURING' INDUSTRY
A DIVISION OF THE MACHINER'k AND ALLIED PRODUCTS INDUSTRY
Aln application! having been duly made pursuant to and in full
compliance with the provisions of Title I of the NIational IIndustrial
Recovery A1ct, approved June 16, 1933, for approval of a Sup-
plemental Code of Fair Competition for the Conveyor anrd Material
IPreparation Eqjuipmellnt Manufacturing Subdivision of Machinery
and Allied Products Industry, and hearings having been duly held
thereon. and the anntexer report on said Supl:plellnentl1 .Code, conr-
taining findings with r~espec-t thereto, having been made and directed
to the Presidtnt.:
NOW, THIEREFORE, on behalf of the President of the United
States, I, H-ugh S. Johnson, Administrator for Industrial Recovery,
p~ur~sunnt to authority- vested in me byEeuieOdroftePe-
dent, including Executive OrdelEr No. 6543-Adaeds Dfteember 30
193, ad oherise doherbyincorporate by reference said anln~exed
report and do find that said upeetlCd opisi l
respects with the pertinent provisions and will promote the policy
and purposes of siaid Title of said Act; and do hereby order that
said Supplemental Code of Fai'ir Competition be and it is hereby
approved. subject to the following conditions:
(~1) That the provisions of Article VJIII, Section (b) insofar as
they pr~escribe a waiting period between thle filing with the Code
Authority (or such agency as mnay be designated in the Supp-lemlelt~al
Code) and the effective date of price lists, as originally filed and/or
revised price lists or revised terms and conditions of sale, be and
they her~eby are stayed pending my further orde~cr.
(2) Provided', however, that the application of the provisions of
-Art~icle IX, Section (f2) be, and it hereby is, stayedt for a period of
sixty (610) days, or suchn addlitioinnI period as I, by my further
G;S6 8*-6- 57i- 120-34 (11
order, mzay direct, in order that the Code A~uth~ority may submit
a suitable plan for deter~mininor tradle-in allowances.
(3) Thatt the provisions of iArticle IX, Section (15), be andi thley
hereby are: stayed pendling the submiissio n of satisfactory evidence
concerninga distribution of the products of the SCubdlivisio~n to thle
HoonE S. Jof-Nwson
Adm-ini.,trlator for Ind~ustr~ial R~ecovery~.
BARTON W. IMUTRRAY,
JUneR 19, _1934.-
REPORT TO THE PRESIDENT
The Wh ite Howue.
SmR: This is a report on the Supplemental Code of Frair Competi-
tion for the Conveyor and Material Preparation Equipment Manu-
facturing Subdivrision of Machinery and Allied ]Producets Industry,
a public hearing on which was held in Washington, D.C., on N~o-
vlemiber 24, 1933, and reconvened on D~ecember 21, 1933. The hear-
mngs were conducted in full accordance with the pr~ovi io~ns of Tritle
I of the National Industrial ]Recovery Act.
Thfe Conveyor and 1Material Preparation Equipment Manufactur-
ing Subdivision, being truly representative of the Ma~nufacturers~
of the products defined in Article II1 of the Supplemental Code,
has elected to formulate and submit a Supplemental Code of
Fair Competition as provided in the second paragraph of Article
I in the Code of Fair Comlpetition for the Ma~chi~nery~ and Allied
Products Industry, approved by you on the seventeetnth~ day of
The Subdivision includes the desig~ning~, manufacturing, and as-
semblingg for sale, and installing when. required, of equipment (sta-
tionary or portable), for handling, tran~ls~porting and elevatlingr
mechanically, materials and articles (either packaged or loose), an~d
also equipment for. cleaning, preparing and processing bulk ma-
terialss while being mechanically handled (excepting, hnowever,~l ma-
chinery and/or equipment wherein a conveyor or mrateriall prepara-
tion mechanism. is an integral part thereof, and. one or more provce .e;
or functions are performed~it within such machinery and/or equp
ment for the processing of food prod.,cucts or steeds), and includes all
persons so enfigaedl.
In connection with the designing, manufacturing, assembling, and
:installing of such~ equipment, the Subdivision uses only the following
mlechlanismns, or one or more of themn: chains, belts and cables with
or without drag scrapers; cleats, trorlleys and buckets; gravity chutes;
power driven and gravity rollers, wheels and balls; belt idlers; ccr~ew
conveyors; scr~eens alnd mechanical cleaning devices; and mecha-
nisms and supports required for their operation. The LSubdivision
shall include the designing,. manufacturing, assembling and install-
.ing of power driven and gravity rollers and wheels, belt idlers, screw
convey~ors, screensi and mlechanicatl cleaning devices; provided that it
shall not include the designing and[/or mnanufacturing j~ot for sale of
other mlechanisms~, although such mlechanismsl are used sprso
the equipment designed, malnulfacturedd and assemnbled by it f~or sale.
ALnnual sales declined from $53,000,000 in 1929 to $14~,500,000 in
1932, a dtecr~ease of 72.6 per cent. NTo estimate was mlade by the
Su~lbd-ivisionl of the value of sales for thne ye~ar 1933, but the seven-
month coverage of sales indicates that sales in 1933' will be approxi-
mately the samle as the 1932 level.
Estimates of approximante employmnenlt for the entire Subdivision
.cubmlittedl by the Tradle Assoc~iationl, indicate emiployment has de-
clined to slighltly less than one-half the 1929 level. In'h 1929, 10,300
wage earners werelc reported, and 4,9000 in 1933, repjrese~tntin a decrease
of 52.4 per cent.
Average hour11s p~er wreek wer~1e reported' to be 49.9! in June, 1929;
32.7 in. Julne, 1933; and 33.2 in October, 1933. Inm Oc~tober, 1933, the
average hours wvere 33.5 per cent less than the J~une, 1990 average,
and 1.5 per cent greaterl than the June, 1933 average.
The Ieffect, of the 40-hour provision wilth production at mlore! normal
levels may be es~timalted~ on a basis of total mann-hours per week in
1931 divided by the number of hours prescribedl in the Code. After
1.929, namn-hours de~cliied- steadily fr~oml 513~,970 to a minimllum of
1417,6173 in 1933 (first six months), or approx~imtlyltly7 70 pr cent.
If it is assumed that the 244.190) man-hoc-urs for 19:31 are representa.-
tive of the volume of p~rodu'ctio~n for that year, and a reasonable
mleasrl~e of man-hour requirements in a more normrlal period, the
adoption of the 40-hour we~tek would require a force of approximately
6,103 employees.-, or 59.3 per cent. of the 1929 w\ork;ing level.
H-owe~ver, considering all employvees of the Subdlivision would not
wvork thle full 40-hlour weei~k, the a-verage worgk: week; would be
sh~orter; with 36 assullred effective hours, and emplloymlen t cor-
respmlinly geat r, 678 wo~rkersI would be required to produce
the 19,31 volumel.
The muinimuml waget pr~ov~isions proposed for the Sulxlivisions
which are operHtin g ulnderr the Coder of the Mach~linery and Allied
Prdc~tsll~t Industry are hosed~c on a fla~t mininnonll h1ourl.Y rtfe of 32
celts Iper hour for the South and~ the follow\\ing city population
dliffelrentials for all olther siectionsll of the Unitedl Statesi:
Over T,0,( n)( population____-_-,----- -------- -- 40 enuts per hour
Over 10,000 to 50(.000( population- __,____ X 3 cents pecr hlour
111n ll, 0 plopunlati nnl naul( under l_ __ 30 cents twr I~ nur
In addition to the mninimntlnvum we rates~ shown above, thle Code
p'rovides that women engagedc in substantially thle samle wo~rk as mlen
shanll recetivet the samlle ra~te of pay! asi such meln employees*c~. 4 that the
minimuml wngle for wom~len~ emplloyees1~ engagedl in plant operations
shall be not less thian 87.5 peri cent o~f thle p~roper rate for the locality
in wh~ich emprloyed!cc as specified;; andc tiat. the mlilinimuml in the Souith
shall be, nort less thann 32 ~centsi pe1r hour.1
III':SIhi1: OF" SUPI.I 3EMENTL (COD)E
Ar~ticle I states the pulrp~ose of the SupplemelntalH Code.
Article II neenrantely definesi specific termsi app~licable? to, the Sub-
dliviiion as uIsedl in this Supplemllr lental1 Codec.
Article III provides for ther adopl-tion of ther emplo~Ymenrt pro-
visionsl~ of the Cod!e of Fanir C~ompe,~titioni for the~ Machlineriy and
Allied ]Products Indust~ry, as approved by you, and as from time to
Article IV provides for the adoption of Article II, VI, VIII,
anid IX of the Code of ]Fair Completittion for the MachineryT and
.Allied Products Indus~try, in necor~dance with the conditions of this
Article gioverninlg their adoption.
Article Vr p~r~oides for thne establishment of a Code Author~ity
and defines its powers and duties.
ALrticle VI provides for an accounting systems a~nd meth~ods of
cost finding and/or estimating.
Article VI[I prlovides that no products of the Subdivisicon shall
be sold or offered' for sale below a reasonable cost.
Article VIII provides for methods of set t ing up, revising and
filling price lists and discount sheets anld terms of sale alnd payment.
Article IX sets forth trade pr ~ac~tices for the Subdivision.
AL-rticle X" states that no provisions of this Supplemental Code re-
lating to pricing and mark~eting shall apply to export sales.
~Article XI provides that this Supple~mental Code and all the
provisions thereof' are exrpressly made subject to the right of the
President, in accordance with Subsection (b) of Section 10 of the
Act, from time to time to cancel or modify any order, approval,
license, rule or regulation. issued under said Act. Provision is also
made that modifications mlay be submitted by the Code Aluthority
to the President, for approval.
Ar~tic~le XITI. N~o provision of this Supplemental Code shall be so
applied as to permit monopolies, or monopolistic pr;aclt iceLs, or to
chmllinulte, oppress, or discrunliinate agamnst~small enterprises.
Article XIII states thle effective date of this Supp'lemelntal CodXe.
The Assjistanlt~ Deputy Administrator in his final report to me on
said Supplemlenltal Code having found as herein set forthl and on
the basis of all the proceedings in this matter:
I find that:
(a) Said Supplemecnt~al Code is well designed to promote thne poli-
cies and prplrosesY of Title I: of thne N~ational Industrial Recovery Act,
including remolcval of obstructions to the free flow of interstate and
foreign commerce which tend to diminish the amount thereof and
will provide for the gPene!ral welfare by promoting the or~ganizationl
of industry for th~e purpose of cooperative action. among the trade
groups, by inducing and manintaining united action of labor and man-
agpment. under adequaiite gerrcrnmen~rtal san ctioc:ns ndl suErv)l''sion, by
eliminaltingr unfair comllpettitve pranctices, by promoting the fullest
possible ut~ilizntionl of thne present productive capacity of industries,
by avoiding unldue restriction of production (except as may be tem-
polr~nrily required), by inlcreasing the consumption of industrial and
agrricultur~al products through increasing purchasing pow,~er, by re-
ducing and relieving unemployment, by imlprov\ingg standards~ of
]labol and by othe~rwise rehabilitating industry.
(b) Said Sub~div~ision normally empllloys not more than 50,000
employees; and is not c~lassifiedl by m1e as a mal~jor inldustry.
(c) Thne Supplemecnt~al Code as app~rov\ed complies in all respects
with the pertinent. provisions of said Title of said Act, including
without limlitation Scubtsectionn (a) of Section 8, Subsection (a) of
Section 7, and Subs>ec~tio~n (b) of Section 10 therleof ; and that the
apphearnt associationl is an i dustrial association truly representative
of the aforesaid Subdivision; and that said association Imposes
no inequitable resitr~ictions on admnissionn to miembershii p therein.
(d) The Suplemelll~ntall Code is not dlesigned to andP will not per-
mlit mnonopahlea or mionop~ohstic practices.
(e) The Supplemental Code is not designed to and will not elim-
illtfo or opp~reSs small enerprises and will .not opeiraate to discrimi-
nate agrainstl them.
(f) T~hose englaged in other steps of the economic process hav9e
not been deprived of the right to be heard pr1ior to approval of
said Supplemnental Code.
F'or thle~ e ~irasons, thlerefor'e, I have approved thlis Supplemnental
C~ode.: providled that certain provisions relating to price publication
the applientionl of thle provisions of Article IX, Section (2), and
the provisions of Article IX, Section (15) are stayed as stated in
Huvan S. JoFhson,~
JUNE 19, 198-1.
SUPPLEMCENTARY CODE OF FAIR COMPETITION FOR
TIHE CONVjEYOR ANDI MATCEREIAL PREPARATION
EQUIPMENT MANUFiA7CTURING INDUSTRY
A DIVISIONh OF THE MACH:IINERY AND ALLIED PRODUCTS INDUSTHYT
A nnOLE I--FURPOSES
To effectuate the policy of T~itle I of the National Indlustrin1
Recovery Act, the following provisions are estalblishecd as a Supple-
mentanl Code of Fiair Comrpetition for the Conveyor andX Ma~terial
Preparation Equipment M~anulfacturing Subdlivision of the MIachin-
ery and Allied Products Industry, and, together with th~e Code of
FEiair Comlpetition of Machinery and Allied Products Indlustry to
which it is a Supplement, shall be the standardll of fair competition
for this Subdivision, and shall1 be binding on each employer theretinl.
"Inrutry~t. 3 "' mnls;1~ the M/achinery and Allied Products In;dustry,,
as defined~ in its Code of Fair Competition as approved by thne Pres-
ident. Marl1ch. 17, 1934, and a~s such definition may from timue to timle
be amenc ed.1~l
Subdivision "' meran this Conveyor~ and Mater~idl Preparation
Equipment Mianufacturingf Subdivision. o~f the Ma~chlinery~ and Al-
lied~ Pmllroduts Indusltl5ry as dfinedT and selt forth in paragRaph'II1 eight
(8) of Article II of the Code of Fa~ir Compnl~etition of the Machinery
and Allied Products Industry as follows:
Convl\eyor~L anrdl Ma~te~ia Plreparatfionl Equll~~ipet~ Manulllfac~turingf
Subdivision means thelc des~ibningr malcnufa~cturing, and :rsenibling
for sale, and, installing~ when requiredt, of equipmentt~:~ 1 stationaryr o~r
po~rtabhle), forn handling,~ t-ranspolrting. andl e~leva-ting mechanically,
materials a~nd artic~les (either package~t~l dor loose), and also for clean-
ing, prepar"'ing and processing~ bulk malterials~ while beings m~chan~li-
cally handlled' (exc~epting, however, machinery and/or equipment
wuPherein a c~onveyocr or material preparation mlchanli.-ni~ll is an inte-
gral part thetreof~, andi one or more prcec~~es~ or functions are per-
formed w~ithinl sulch machinery and/o~r equipment for the! p~'crove ingb
of food pr~odlc~ts or seeds), and includes all per~lsonls so e~n~Pgage.
"In collnnc~tion with the des~igning,, malnufacturiil~.ng ssembling,,
andc installing of such equripmlenlt. the Sjubdivision use~s onlly the
follow~ing7 mecha!nism ,~ or one or more of them: chains, belts and
cables withn or w\ithou,~tl dlrag scrapers, cleats, trolleys and bu~ckeits;
grravity chutes; power1 driven and gravity rollers; wTheels andi balls;
b~elt idllers; scr~ew conveyors; scrlteens andl mechanical cleaning de-
vices; and mlechanismns and supporlti; required for their operation.
The Subdiviision shall include the designing,, manufacturing, as-
864-8*---637-,-1 20----34---2 (71
semiblingr and installng of power dr~iven and gravity rollers and
wheels, belt idlers, screcw connveyors,. screensli andJ meclphanical cleaning
dtevices; providers that it shall not include the de~signingr and/or man-
ufacturing for sale of other mnecha:ni mi, althoughlcfl suchl m1ech~anisms
are used~r as parts of the equipmentl~ll. decsigrnedl, ma~nu~facturedl andl
assemled23li l bly it for salle.")
Code meatns~ the Colde of Fair Compe~tition of thle Ma~chinery~
and Allliedl Prolducts Indusl~try, as approve,\ d by the Pr~esident and as
f~romn time to time nllrnended.
n-.-c:-intfionl, a thrust, a trustee, a tr~ustee in bankrup'tcy, a re~ceiver, or
Emnployrer "' Iowans33 anyrlcl'~l! pe llrson engage in. this Publlc division of theC
Indlustr~y, either on his own b~eh-alf or as ant empllolyer of labor.
Emplly~ee "' mearns any one who is emlployed~c in the Sulbdivision
by any such'l employer.
L"Ther Act: onf'(lc Title I of the National Industrial Recovery
'" The~1 Proi'Cdent'I I "' meansl the Presidenrt of the Unicted States.
"A.1mllinif trator means the Admlinistratorr for Indurstriail R~e-
'" Basic Code Authlority means the Cod,~e Anlthorrity for the ~M-
chin ry!1\ and Alliedl P1c l roduts Indu srt ry as con- t itutedC'~ by the Code.
CoCide Author~ityv' nwansl the Ctode Author~ity trunstituted for thzis
Subdivision as providedl by the C'ode andi bjy this rSupplem~lentalr
Group Code Aunthority wans;1l the Code Au~thlority for any
group or prodtilt c~lus..-lifitionl within this Sublllivi-ion. cons~titulted
under thl~e authority of Article V of this SuLppkinentarllt Codet.
ACRTICLE IJI:--~I-EurY3 I: ie Puan\14I:So
Thle following~ Art~icles of the Code~. Tviz: A~~rticle `TH. Wlorkinglc
Hout~r~s Articlfe IV, 1( Wages "; and Artic~l~ 'V, een a
Provisions "; ar~e hcreby nIlde~ a parlt of this Suppha~ll(ntnta 'cod,i
w\ith the samet ettect as if the~\ wereI'( wri~jtten into thlis iSupllpl anecntall
and1 _Ar~ticle VI, Ashniristratll ion "7, to the exstent, tha~t thev! ithall be
app~llisal;ie to the! Ashnini-trat~t ion of this Supph-InentaIIl ode us)11 ;1uch1~1
OF, HNS It InfYY lemu.';f'tcr be ashnlrinisf'ltered ;I an autonon~llinue C'odet;
"i WTithdrawal~ ": 5r hereby made(1, 11~1 a p~art of this Supph usesslt ii~r al Code~l
w?;ithl the surne effec~t ;as if they werel~c wr.ittenl intoc thli-; raplementall~ll1
(n) The1( permanent"' Clodel~ Aulthorl~ty. to nl~lhini-ter, lupe(r\.iwe andr
to fac~~iitate~ the enfnrlr inelnt of1 the1 Cllukl :Il thiS SupplementaI~ l
Section (g) of the Code, shall be the Code Authority of this Sub-
division until its suc-cesszors: are duly elected and~ qualllified in ac-
cor~dance. with the procerdural rules and regu~lations-~ of this Subdivi-
sion (duly adopted in alcor~dance- with Article VI, Section (gn) of
the Code) and w\ithl the following rSectio~ns of this Article V. When
its succ~essor~s shal l have been duly elcfcted~ andlc qua1lifiedl, thleyS shall
constitute the pelnirmannt Code Authority.
(b) Each elctive rilnllembe of the Colte Author~ity shall be an
employer, an executiv-e officer of, or a partner in, an empgloyer
entitled to partic~ipatet in the ac~tivities of th~e Subd~iv'iLionll as de-
scr~ibed inl Article Vt, Section (f) of this Supplementa~it l C(odet. Such
numlber, not fewerl thanll five (5) and not more than nine (9) mem-
bers, shall be elected as may be3 dete1rminedc at a meeting of the Sub-
division1, and the Adm~iin~istrator, in his discretion, may appoint one
(1) add~itiona~l member (wF~ithout vote and without epeslr le to the
Subdivision). Of thc.-e membul.ers to be elected, four shllzl be des~-
igrnatedl and voted upon as
Vrice- Cha ~irmnn
If, as a result of said election, any Group, as prov,\idedl for by th-is
A~r~ticle~ V, Section (e), do~es not have on the Code Authrcity one
representatives of thre
thority), whno shall havep the qualifications h~ereinbefore recitell.
(c) I~n ord~er that the G~Code Aut~horityv shall at all times be truly
rrelleSenltative of the Sublivision-:- and- in othrl.. respct' comp17ly with
thle prov\isionsl of the Act, the Admini-.t ra~torl may provide such hear-
inlgs as he may deetjl properC~; and therenf;lter if he shall find. that the
Code Aurthor~ity is not truly representative or does not in other
respects c~omplly with the prov).lisions of the Aict, mary require a m~odifi-
entionr of method of selection of Code Authoritty: or any G-l'lrou Code
(d1) Action by the iSubllivision at any meetr~ing~ for the transaction
of bus1iness~i, adoption of procedural'''~ rules and regulations, -nhl-.i.p 1'Il t.
election of Code Authority, and am~endmuent of this Supyplemental
Code, shall be byT vo-te of the empllloyeris. in. the Subd-ivision, present in
person or by proxy, whler~ein each such employer shall have one vote;
provided~, however, that on anly question except thec Itlc~ctio~n of Codett
Auth~ority, any such emplo~~yer .chll:1 have~ the right to call for a-n
additionall vo~te and to hatve the same vo~t~te upon~r by each such. em-
:player, werightedl on the basis of one vote for each 28.1un.0r00.00 of
sales within the Subdlivi-io. n mad11e by .-iichl employer in the two pre-
cedi~ngca;lend years, each such employer, however, ILeingr en!titlcd to
one vote, andt in evry~tlS suchl case51 ne~tionl on the ques~ction hallll be by
both sutch. methlods of voctiww.
(e) F'or amnc'lli;t~rative p~urposesr, employers shall1 be g~~.roupedl by
Code Authority. The purp~ohe of such grouupingg shall be t~o bringil
into working assoc~iation emlployers s having~ commoc~n interests and
p~roblems,; bas~ed on products undl/or geogcrapl~~, hialn ]Ilmnt-ion. Each1
Group shall elect from the eFmployers of such Grouplil a Gr'oup Code
Authority, alnd~ may adop~lt. such rules for thre condulc~t o~f the business
of the Group as are nrot inconsistent. with the provisions of this
Sulpplementalt l Code and the Code; provided, however, that t~he provi-
sions of Article VI of thne Basic Code shall control the making of all
examnatonsor audits and the use to be madte of :information so
obtained with respect to any employer.
Exceptlt as otherwise Jprovided in. this ~Suppllemelcntal Code, a Group
Code Author(,lity shall have power to ~hear all matters1 per~taining to
the provisions of this Supplemeiintal Code which mayS be subm~iitted
to it by any employer in its G~roup, hav7Ying rcla~tion to the employers
in. said Group, or anly of themll, and to that end may, to thle exrtenct per-
mitted by th~e Act and the Code, inves~tigate and usecertnin the facts
throullgh such exsaminatiicn or audit as such Group Colle A~uthorit~y
mal~y dieemr n!cer~wary;Y provided, howevec\r, that nothing in this Article
shall pre~.llrcho the Codle Authority from taking noction, either uponl
complaint of an employer or upon its own initiative, with. respect
to anly mat~lterls, excep'lt those perlt ining~b to retlations~ between employer
Any dlc~i ion o~f thle Group Code Au~lthor~ity' shlln be final, unless
appeal is taken to thle Code Authority or such <1wcision involves
malitterls requiring to be reported to the Basic Colie Authority, inr
which (nse all pertinent informallitionl, papers and data in the p~osses-
sionl of the GrouI~p Code Auxthorityr shall be turlnedt ov\er by it to the.
Code Authoritly, and. thle Code Authority shall iiass on. the merits
of the caset and makel~i final decision or report theccreo to the Basic
(f) It he~ingl! found nlemacys~~~, in border to support the Admninibtra-
tion of this Suprptc lementnt;I Code and to mal~intailn theL standards of
fair competition established by this Supplem~Yental Cod~e anud to ef'-
fectuate the policy of the Act, the Code Au~thority is aulthorized,
subject to the app-rova;l of the Admllinistrator(,I:
(1) To incur such reasonable obligu~tions~ as arce nlecessary and
proper'1 for the foreg~loingr purlposes and to melcet. such (,bligatfj ions out
orf funds which may be raised as herecinnfter pr1ovided~ andlc whlich
.hal11 bne hield in trust for the purposes of this SuppkinentnIt~ l Code.
(2) To submit to thie Admn rtrfrhsaprtl ujc.t
such noctiice andl opportunity: to be heard as~ he may cleemll neCess~ary,)
(1t) an itemnizedc' budge~rt of its estimaltedl expenses for the foregomgin
purpmeI-(.4, and1 (2) an equitable bas~is uponII which the~ fundsll neCessary
Sto 1supyxor such budget shall be Icontr~ibutede by ownsllber* of thei
(3) After' suICh budgetic~ andi basis of cocntr~ibution have been1 ap~-
proved'' by the Arlniini-;trIatolr, to dectrermine: and servl, e equiitable
contr'j~libutio as above\(. set forthn by~ a21ll such empll,!loyer of the Sull(i-
v\i.iorn, and to tha~t (endI. ifn ur t ntttlelpoedis
1 10crcf or 18 its OWHn rml:lrl.
Only ne-mbellrlls of the~ Sub(divisionl ('(implly.ing~ w\itl tiis Su1Pple-
meta Cdean etrbuin to thel expen e' of its adminilistratif on
as pro-vidled~ inl Stectionl I eefsalh nildt atcpt
in the se~lct in of the usembeitrsi of th~e ('(nll Autho~rity orr to, receive
rininaof theo National~l RecoveryI~ Admlinistrattic Ion
.Anywon VI-A ccourtwoTN ANi> Cforsnka
The Code Authorit r rshalll ca~uie: to be formlulalted~ an accl~nibclal ounig
system andl methods of corst finding n/retmtigcpbeo
use by all emplloyer~ls of the Subdivision. After such system an~d
m~ethodsl have been formlulatedl, full etac~ils c.on~cerning~ them shall
be madie avTailable to all employers. Thlereafter all employers shall
determine and/or es~timalte costs in ac-cordlnc~e withl the principles
of such methods.
ARTICLE VII-SELLIN BELOW REASOINABLE COST1
(a) W\\hen the Cosde At5uthnority ha#s reason to believe that an
emergency ex.ists asi to alny prlduct or rrodulcts of the Sulbdtivision,
and that the cause thereof is dlestructl\ve price-enittingl such as to
render ineffective or s~r~iously endcangertr thbe purposes, aEnd thne malin-
Itnanilcie of the prorisio~n sof this Code, the Code Au~lthlority may
cause an investigation of costs aInd pricing to be made by an im-
partial agency in ordcer to determine the existenrce of the emlerge~ncy
and mayt cause to be determined the lowest reasonable co~st of anly
product or products8 of this Subdlivision, such. determination to be
subject to such notice and hearing as the Admninistractor may requir~e.
The Admlinistrator may approve, disaypprove, or modify the derter-
muination. Thereafter, during the period of emnergency, it shall; be
an unfair trade practice for any employer of the Subdivision to sell
or offe~r to sell any pr1odtucts of the Subdivision for wePhich thle lowest
reasonable cost has been determined at su1ch prices or upon sulch
terms or condlitionsi of sale that the buyer wrill pay less ther~efor
than the lowest reasonable cost of slc~h products.
Whi~ten it appears that. conditions have changed, the Code Author-
ity1 ulpon its own initiative or upon the request of anyr interested
party, shall enuse the determination to be retviewed.
(b) The foregoing Section (al) shall noat apply to (a) dlropIped~
:lines, or (b) seconds, or (e) inv~entfories wh~3ich. must b~e converrted
into eash to meet emlergencyv n'eeds, all of which may be disposed
of by- any emp'loer at ny: price and on any termsn1 or conditions
durmrig a p~er~iod not to exceed sixtyr (60) ys, but o~nly if such
employer not less than three wee~cks before c proposed tisp~osal,
has filed. with Code Authority a statement in writing setting forth
thne facts of, and reasons for su~ch proposed, disp~osal, and the price
and th~e terms and conditions ofE sale, and Code Authority has not;,
before the termination of such three -week period, in writing, dis-
approved the; proposed disposal. Notice of such~i disposal, if not dis-
app~roved, shall be senttl immned~iately to all employers manu~lfacturing?
products of equirnlent dersigni, character, quality or specifications,
and participating in thisr Suppler3;mental Code as descr~ibedl in AIrtic~le
"V, Section (c), who ma~y sell such products within snide isit~y (60)
day period~ at prlices and on terms; and condlitio~ns as fjavorhble las
those stipu~latedl in the proposed disposal.
(c) When prices of completing p~ro~ucts manufacturedl ou~tside~
the U~nited States are low\er ~than the established lowest; reasonable
cost, any employer mlay sell at pricesg and on, terms anld conditions
as favorable as those of the comnpeting foreign product, but only if
such employer has filed with Code Auth~ority auc satem ent in rit
ing setting forth the facts of, and reasonsfoscprosdal
and the prices to be charged and the terms and conditions of sale,
and Code Authlority has not, within one -week;, dis~appr~ov~d such
ARTICLE 7VII~IMETHODS OF PRICING AND, TERM\s OF SALE ANDr
(a) Each employer shall, within thirty (30) days' after approval
of this Supplem~ental Code~, file wilh the proper Group Codle Au-
thorityr (or with Codre Authority if there is no Gro~up Code Au-
thjority having jurisdictionn, a staltemelnt showing his current method
of pl~ricingr a~nd terms of sale and paym'"ent, for such o~f his products
as are within thne scope of this Subdtiv~isionl. Suchn statemllent shall
conlformI1 to the r~equlir'"emens of the prloper' Group' Code Authority,
as to details of information and number~~l of CopLies th~lereof, together
with copies of price lijts, discounlt sherets, catalogs, and other papers
as may be necessary to set forth such current mleth~od of pricing and
terms of sale a~nd paymentrt for the various pr~oducts, which copies
shall, by the said Group C~ode Author~ity, be immediately? dist~ribut~ed
amnlrlg the employers of this Subdivision who are entitled to par-
ticipate in the activities of such'T Subdi'vision, and whoe design, mnanu-
factulre~, assemble and~ install like p-rodurcts.
(b) Revisionls of t~he? methlod of pric~ing and terms~ of sale! and
paym'"ent may be filled, ini like malnnnei-, from time to timne thlereafter
with the proper Group Code AuthorityT by anly emnployer, each.
suc~h revision to become e~ffec~tive not later than. tenl (10) dlays born
filing, andlt copies thereof, with supporltin g pric~e lists. andi other
dlata, w~ith notice of the effective date, immlled~iately shall be sent to
all the employers and be; available to buyers as aIbov\e. p~~,~rovie
(c) No emlol~(yer shall sell directly or indirectly by any means
whatsoevertjl, any product of this Subditlvisioln, at a lower price, or on
more favorabl~.le terms of sale annd paymelcnt, th~an those pro-vided in
his owrn curreI~cnt merthod~ of pr~ic.ingi and te1rm., of sale :rnl payment
as covered~ in his staltelentt filed in acco~rdcance w\ith~ the provisions
of thiis Article VTIII[, escep~t. in thle cases, andl undcer the conditionss
provided~ for in A8rticle V~I[I, Selctionsl (b) andi (c).
ARTICLE IX--TRADE IPHACT'IC'ES
Ene~h employer shall c~omplly with the followriing~ proisions per-
tainingc to tradelt piractil'es and any dev\intioln thlerefrom,l dlirect, or
indlirect, shall be denedlcc ani nct of unmfair t~radet practie and a
vio~latio~n of this Icupphol~llcnenal Code~t, awl i herebyL~? prohlibited:
(1) rSales of p~lrodulCts, ex'ep~t parlts for repa:ir' orl re~plalcll emnt ,
nwl~ xcepclt Inrer~ch~ndlis ale~s: of stainlar~d itemsi. shl~l tw evcidenced
by written or prinitedl corntra;c~ts, which shall be unliformll for each
Cracllly as to terml-s of sale and paymenllt'l. rep~llacmnttll~l Ciuarantlees,
alnd all o~thrci cond~itin o~r~~cf aile. except those rela~tingr to, perlformallnce.
Hll I1I Pl'rova'l 1)} Cotle U~rllior~ity ami file ;Ad~llmln~~'lf (,or, bilel fOrml
shall thereafter he used by all emlployers oq t~hat Gr~oup in contract-
ingO wit~h pulrchasecrs for t~he fur ln sing~ 11rof equlipmen~lt letsigned~, manu-
facturedl and assembltled by~ sulch employ3ers.. Provided, hlowever
that in connection withl Public Wlorkrs, purchasei borders o-r conltracts
executed byr the prop'iel rGover~lnment Authlor~ities ma~y he used~.
(2) No employers~ shall take us~edl equipment in trade for mo~re than
itsscrp vlu, o th prchanse price of new~ equipmeltnt, or mnake
allowcanc ales or r nt credt dir~ectly or ,i ndljre~ctly', for used~ qc u ipnwnrr~t ;
provided, h~owever, thaLt this provision shall not be aplplicablelt to any
employer of any Group, after the adopt ion by Group Codel~r Aulthlorit y
of such G3roup with the approval o h diitaoo sadr
mrethlod of app~raisal for such -used equipment; anl ~provid~edt further
thlat eachl emo!lover of such~ Group mayV make~ allowasnc:es forp used
equipment so tr~adedl in, no greaterl than shall be p~recr~ib e~d by suchl
standard method of apprlaisa;l.2
(3) In qluoting on any business, the original price submiiitted~ hall
nrot be altered, unless a change in sp~ec~ificatiotns or requirements shlall
have been1 made by? or at the requrest o~f prospective p'urvl~chase affect-
ing the cost? or unless, prior to -neceptance, by the pur~chasier, a revisedc
mlet~hod of p~ricing has been filedl with~ the proper G;r~up- JCod3e
Authority and become effective, in wh~ichl event the lr~iginal quoc.tations
shall ~e retvi~sed. ~Su~ch revised quotaltions 6hall be in acc(-orlanc~e
with the emlployer's ciaurrent mIetho.d of priceing and~ sterns ofS sale
(4) i`hargres for services oYf an5y empllvoyee engaged! tor Luperv\ise the
er~c~t~ion of any products of thisi Sublldivisio-n, including h~is travetling
expenses, shall not be absorbed by th~e emnplo~yer.
(5) No equipmlient shall. be furnrishedl to a customers l for trial pulr-
posesS witho~ut. a dlefinlite ordrer a~nd advl\alc~e agreement that. if the
equipmentt be retu~rnedl, ~th-e cu~stomer~i wi~ll pay trannsporltation anid
cost of reconditionTing. This p~rov\ision Sh1all nsot appIly to equipment
in process of dlevelopmnent or to equ~ipmen-'t to, be us~ed in a malnrnezr
novel to the Subdivision, until after one machine is in sulccesscf ull
(6i) NKo emlplo-yer of the Subd~ivisionr shall publish advertising
(wheth~er printed, r~adio-, display or oFcf any other naturee, w-hich is
misleading or inacculratet in any mlate~iall particular, nor .shall any
-employler in any wa~y m~isreprIesent any gloos ( inc~ludingl but without
limitation its uIse. t~rademar~k, grad~e, equality, qluntity, origin, size,
sulbstRne, cha rac~ter, na u re, finri sh, mnat erial, conte~nt er prepara~tio-n )
or credlit t~ermis, v~alue-s, policies, serv~ices, o~r thle nature or formr of thle
(7) No emlploy-er51 shllt make r agree to mae any ~s~ecet pyme'nltei
or r~ebate, credit; or d~iscounllt, in money or otherwise, with intent to
influences~~ any sale.
(8) No emlpko3yer shall pay or promised to pay any money or otherr
valuable1~ thing to any agent, fidlc~iary, orJ1 other Ier~eprestativer of a
purchaser, wit~h or without the kinownledge. of his psi~ncipal, for tle~
p~urpos~e of inlfluencingi any sale; pr~ovided~ that. no provision of this
;Supplem~ent~al Cocde shanll be3 constru~e d to pr~ohibit free and g~eneal
distribution of articles c-ommnonly usedl for advlertisingr, except inirofnr
4 See paragraphl 2 (2) of order apiproving this Code.
as such articles are actually ulsedl for commercial bribery as herein-
(9) No employer shall falsely advertise, represent, or mark any
product with intent to deceive or mislead p~rospectivec purchasers.
(10) NYo employer shall make false c~laimls with r~egard to or
delibertely~tc mi~sllr~ep;resnt the scope of p~atents either granted to himn
or applied for by him.
(11) No employer shall dissemlinu~te false or mlisDleain informna-
tion relative to compeil~titors' proluc~ts, selling prices, reputation,
cred~ti t or financial standing, ability- to perform work, or labor condi-
tionsa amongi~ competitors'~u l emplI~~oyees.
(12-) No employer shall wrongfully entice a wa~y the employees of
compe~titors~ with the purposes and effect of hampe)l'llring injurmgll~ or
emb~arrassmgnc such completito~rs in their business. N~othingr in this
paragraph shall be so interplreted as to in any mlannerl restrict the
right of any employe~!e to see~k employment wipith anyl employer at any
(13) Each em~rployert~ I shall requ~ir'e c~omlpliance with the pr~ovisions
of this SuppkIrlrnentl Code, and of thne Codel, by the agents of such
employer, wthethetr such agenltq are directly employe3't d on salaryr or
are emlploverl on a cc.luntaiss.io. n basis.
(1_4) N< emloy~ll\er shall furnish to any pur11c~haser of equlpmlent.,
dta~tiledl shop draws\ingrs of standard units, whether p~urchased or
manulfllctured, without filing a statement in advance of such pr1oposed
action with the Code Authority which shall approvet or, with the
approva\l of the Administrator, disapprove, within twetnty (20) day's.
Th]e Code Authnority shall immediately notify the emlployver making
applljaicatin of the actio-n taken.
(~15) No emloll(yer shall cosperlate. in the eva~sion of this Supple-
mental Ctlte, or of the Code by selling to or through any distributor
who duelr not agree to resell only in alccorda~nce with ~the provisio~ns
of this Supplemental Code and of the Code.s
ARTICLE X-SALES F(I REx mirr
The provisio~ns of this Sulppt nlemental Code c.onlrcerning pr1icing and
nmurketinF (Artircles VII, VIII and IXr) shanll no~t apply to dlirect
cesport .males of any pncroduc.t or to ales of anyi prodl~uc~t destined uilti-
mately for export. The ftermll "export" shall1 inc~lud~e all shripments
to all p~lac.e.- without. the severa~l states of thle Uniitedl Staltes and th~e
District of Co~lumlin;l provided, howrever, that. no( shipmeitnt to any
territory or passesioi~~ n of t~he Un1it(d States~c shlll be can llideret d anl
cespor't when any cnlloyer~r l is loo~nted in such terr~itorly or possiessioln.
(a) As provided by .Sec~tion 10 (b) of the Act. thel Preshident maiy
frclnit fille tt flillle 0811h.1 O 100f n or rderiy:n cili, rlpprovall. l cocnse. rulr
or rr-gulationi l is.-ned~t undel~r Title I of thec Act.
(h) Any ;,,,,,nwndment., arltition,r rev;i ions, or suppllemlents to this
Suppll clanentalt Code-. l"'"P"'ma,(~ hy~ ('ode1 Authorityf andi appllrrved by
two0-thiird-l Of the ('mploye,(''cr shll be in fuill fol~~rc and1I e'lffec ulpon
ahe~r I.:'; II: ph1 2 14) of order **~p nrodi llg this their1.
approval by the Administrator. Thle eligibility requirements,
method, and effect of such voting shall be thle same as provided by
Article V h~reof.
This Suppl~ecmenal Code is not designed to promote monopoly, and
shall not be so construed or applied as to oppress or eliminate small
enterprises or discriminate against them~, and is designelld to e~ffectuate
the ]Policy of the ~Act.
ArrrCLE IIIEFFECTIVE DATE
This Supp~lemel~ntl Codee shall become effective and binding on all
persons engaged in the Subdivision on the eleventh dayT after its
approval b~y the Presidtent.
Approved Code No. 347--Supplernent No. 22.
Registry No. 1342-01.
UNIVERI TYIII IIIII OFllilll FOIDAIIIIIIII